United Road Services Reports Fourth Quarter and Year End Results
9 March 1999
United Road Services Reports Fourth Quarter and Year End Results
ALBANY, N.Y., March 8 -- United Road Services, Inc.
announced today financial results for the quarter and year
ended December 31, 1998.
The Company reported revenues of $43.1 million and net income of
$2.2 million, or $0.15 per diluted share for the quarter ended
December 31, 1998. Revenues were $87.9 million, and net income was
$4.4 million or $0.42 per diluted share for the year ended December 31, 1998.
In connection with the diluted per share amounts, weighted average shares
outstanding were 14,942,391 and 10,389,903 for the quarter ended and year
ended December 31, 1998, respectively.
No comparable financial results exist for the prior year; United Road
Services, Inc. commenced operations in May of 1998.
Edward T. Sheehan, Chairman and Chief Executive Officer of United Road
Services, said, "We are pleased with our strong financial performance for the
year. We have met or exceeded all of our analysts' expectations, and we're
off to a good start in achieving our acquisition goal of $300 million in
acquired revenue for 1999."
Mr. Sheehan also identified strong internal growth during 1998 of
28 percent for the founding companies included in the IPO. "We're very
excited about the cost savings programs we have implemented via national
purchase agreements and continuing operation efficiencies in the field."
Formed in July 1997, United Road Services has an expanding network of
64 service locations in 21 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. More information on United Road Services may be
obtained from 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.
For additional information, contact Anne-Marie Sheehan, Investor Relations
at 518-446-0140.
UNITED ROAD SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
December 31,
ASSETS 1998 1997
Current assets:
Cash and cash equivalents $3,381 50
Trade receivables, net
of allowance for
doubtful accounts of $1,132 16,440 --
Other receivables 1,495 --
Prepaid income taxes 465 --
Prepaid expenses and
other current assets 1,752 --
Current portion of rights
to equipment under
finance contracts 380 --
Total current assets 23,913 50
Vehicles and equipment, net 46,814 -
Rights to equipment under
finance contracts,
excluding current portion 1,191 --
Goodwill, net 171,953 --
Deferred financing costs, net 3,552 --
Other non-current assets 308 --
Total assets $247,731 50
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current installments of
obligations under capital leases$338 --
Current installments of
obligations for equipment
under finance contracts 380 --
Notes payable 17 --
Accounts payable 6,904 62
Accrued payroll and
related costs 2,412 --
Accrued insurance 1,362 --
Other accrued liabilities 916 --
Due to related parties 2,254 92
Total current liabilities 14,583 154
Credit facility borrowings 18,800 --
Obligations under capital
leases, excluding
current portion 698 --
Obligations for equipment
under finance contracts,
excluding current installments 1,191 --
Convertible subordinated debt 43,732 --
Deferred income taxes 4,961 --
Total liabilities 83,965 154
Stockholders' equity (deficit):
Preferred stock; 5,000,000
shares authorized; no share
issued or outstanding -- --
Common stock, $0.01 par
value; 35,000,000 shares
authorized; 15,707,085 shares
issued and 15,466,004 shares
outstanding at
December 31, 1998; 2,604,000
shares issued and outstanding
at December 31, 1997 16 3
Additional paid-in capital 159,532 67
Retained earnings (deficit) 4,218 (174)
Total stockholders'
equity (deficit) 163,766 (104)
Total liabilities and
stockholders' equity $247,731 50
UNITED ROAD SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Years ended December 31,
(In thousands, except per share amounts)
1998 1997
Net revenue $87,919 --
Cost of revenue,
excluding depreciation 61,667 --
Amortization of goodwill 1,763 --
Depreciation 3,292 --
Selling, general and
administrative expenses 12,216 174
Income (loss) from operations 8,981 (174)
Other income (expense):
Interest income 658 --
Interest expense (1,588) --
Other (156) --
Income before income taxes 7,895 (174)
Income tax expense 3,503 --
Net income (loss) $4,392 (174)
Per share amounts:
Basic earnings $.43 (.08)
Diluted earnings $.42 (.08)
UNITED ROAD SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
Three months ended December 31, 1998
(In thousands, except per share amounts)
Net revenue $43,077
Cost of revenue, excluding depreciation 30,902
Amortization of goodwill 880
Depreciation 1,984
Selling, general and administrative expenses 4,651
Income from operations 4,660
Other income (expense):
Interest income 43
Interest expense (1,062)
Other (156)
Income before income taxes 3,485
Income tax expense 1,288
Net income $2,197
Per share amounts:
Basic earnings $.15
Diluted earnings $.15