United Road Services, Inc. Q3 Results Exceed Expectations
2 November 1998
United Road Services, Inc. Third Quarter Results Exceed Expectations
ALBANY, N.Y., Nov. 2 -- United Road Services, Inc.
today announced its financial results for the third quarter and
nine months ended September 30, 1998.
The Company reported revenues of $36.4 million for the third quarter and
net income of $2 million, or $.14 per diluted share. Revenues for the nine
months ended September 30, 1998 were $44.8 million, and net income was
$2.2 million or $.25 per diluted share.
No comparable financial results exist for the prior year given that United
Road Services, Inc. commenced operations in May of 1998.
Edward T. Sheehan, Chairman and Chief Executive Officer of United Road
Services, Inc., said, "The third quarter was another period of intense growth
for the Company. I am especially pleased with our management's progress
completing integration of 33 of the 36 acquisitions we have made year to date.
Our revenue and earnings per share results exceeded analysts' expectations by
over 30%. Cash flow from operations of $3.1 million for the quarter and
$6.9 million year to date was also strong and demonstrates that United Road
Services is benefiting from significant synergies and operational efficiencies
in the field."
In addition to releasing its third quarter earnings, United Road Services,
Inc., also announced that it has acquired four additional towing companies and
one transport company with total annual revenues of approximately
$10.0 million. The new companies are located in Hartford, Connecticut, Los
Angeles, California and Las Vegas, Nevada.
"Our acquisition program is on track," Mr. Sheehan said. "Our annual
revenue run rate is currently over $160 million, and we continue to
strategically pursue companies that will enhance our national towing, recovery
and transport network. Our backlog of letters of intent remains high at
$165 million, and we are confident that we will have sufficient capital to
continue our disciplined acquisition program."
With the development of a national transport management system, Mr.
Sheehan also noted that the Company was positioned to seek national service
agreements. "Proprietary software has been developed to give us the
capability to expand our customer base and scope of services," he explained.
"We are now looking at obtaining larger service agreements with national
customers in the new and used vehicle markets."
Formed in July 1997, United Road Services, Inc. is a leading provider of
vehicle and equipment towing, recovery and transport services in the United
States, with an expanding network of 43 service locations in 16 states. The
Company's broad range of services includes towing, impounding and storing
motor vehicles, conducting lien sales and auctions of abandoned vehicles, and
transporting new and used vehicles, and heavy construction equipment. The
Company's customer base includes national automobile leasing and insurance
companies, new car manufacturers, automobile dealers, governmental agencies,
automobile auction companies, and individual motorists. More information
regarding United Road Services, Inc. may be accessed on the company's web site
at http://www.unitedroad.com.
This release contains forward-looking statements. These statements are
subject to certain risks and uncertainties that could cause actual results to
differ materially from those anticipated in the forward-looking statements.
Readers should not place undue reliance on forward-looking statements, which
reflect management's view only as of the date hereof. The Company undertakes
no obligation to publicly revise these forward-looking statements to reflect
subsequent events or circumstances. Readers should carefully review the risk
factors described in documents the Company files from time to time with the
Securities and Exchange Commission.
UNITED ROAD SERVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
September 30, December 31,
1998 1997
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $2,290 $50
Trade receivables, net 14,779 --
Other receivables 1,040 --
Prepaid expenses and deposits 2,317 --
Total current assets 20,426 50
Property and equipment, net 37,092 --
Goodwill, net 137,516 --
Deferred financing costs, net 997 --
Other non-current assets 597 --
Total assets $196,628 $50
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of
capitalized leases $1,435 $--
Notes payable 170 --
Accounts payable 10,011 62
Accrued income taxes 616 --
Other accrued liabilities 4,245 -
Due to related parties 2,198 92
Deferred income taxes 516 --
Total current liabilities 19,191 154
Credit facility borrowings 26,000 --
Capitalized lease obligations
less current portion 2,253 --
Deferred income taxes 2,736 --
Total liabilities 50,180 154
Stockholders' equity (deficit):
Preferred stock; 5,000,000 shares
authorized; no shares issued or
outstanding -- --
Common stock, $.001 par value;
35,000,000 shares authorized;
Issued and outstanding 14,497,384
and 2,604,000 shares at September 30,
1998 and December 31, 1997,
respectively 14 3
Additional paid-in capital 144,413 67
Retained earnings (deficit) 2,021 (174)
Total stockholders' equity
(deficit) 146,448 (104)
Total liabilities and
stockholders' equity $196,628 $50
UNITED ROAD SERVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Nine Months and Three Months Ended September 30, 1998
(Unaudited)
(In thousands, except per share amounts)
Three Months Nine Months
Revenue $36,374 $44,842
Cost of revenue 25,307 30,765
Amortization of goodwill 694 883
Depreciation 969 1,308
Selling, general and
administrative expenses 5,237 7,565
Income from operations 4,167 4,321
Other income (expense):
Interest income 138 615
Interest expense (412) (526)
Income before income taxes 3,893 4,410
Income tax expense 1,923 2,215
Net income $1,970 $2,195
Per share amounts:
Basic earnings $.14 $.25
Diluted earnings $.14 $.25