United Road Services Reports First Quarter Results
22 April 1999
United Road Services Reports First Quarter Results
ALBANY, N.Y., April 21 /PR Newswire/ -- United Road Services, Inc.
, a leading national provider of towing, recovery, and transport
services, today reported first quarter 1999 revenues of $59.5 million and net
income of $2.0 million or $0.12 per diluted common share.
Edward T. Sheehan, Chairman and Chief Executive Officer, commented, "It
was a difficult quarter, but we are optimistic about the remainder of the
year. In the first two months of the quarter, our towing and transport
businesses were affected by seasonal and cyclical variations. In March, we
had much higher demand for towing and transport services. We expect this
increased demand to continue through the spring and summer of 1999."
To illustrate the impact of cyclicality on its transport operations, Mr.
Sheehan said the Company's transport sector hauled approximately 127,000 new
and used vehicles for the months of January and February combined, while it
transported approximately 97,000 new and used vehicles for the month of March.
Mr. Sheehan also expressed confidence about the Company's continued
ability to execute its acquisition program. "In the first quarter of 1999, we
completed 13 acquisitions with total annualized revenue of approximately $80
million, bringing our total annualized revenue for our 54 acquisitions to over
$290 million."
Included in the first quarter acquisitions is the previously unannounced
purchase of Shamrock Towing of Phoenix, Arizona, with trailing 12-month
revenues of $3.2 million.
"Our conservative balance sheet and strong cash flow will easily support
more debt. We are negotiating with our commercial banks for an increased
credit line to fund acquisitions," Mr. Sheehan said.
He also focused on the Company's strong organic growth rate, which remains
between 7 to 10 percent for its towing sector, and over 20 percent for its
transport sector. "During the first quarter we started work on two major new
car transport contracts that each have a term of three years. Between these
two contracts we expect to transport an additional 76,000 new cars annually,"
Mr. Sheehan said.
Formed in July 1997, United Road Services has an expanding network of 65
locations in 22 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 regarding 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.
United Road Services, Inc. And Subsidiaries
Consolidated Balance Sheets
(In thousands, except share amounts)
March 31, December 31,
1999 1998
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $1,491 3,381
Trade receivables,
net of allowance for
doubtful accounts of
$1,340 and $1,132, respectively 27,531 16,440
Other receivables 537 1,495
Prepaid income taxes - 465
Prepaid expenses and other current assets 2,983 1,752
Current portion of rights to equipment
under finance contracts 634 547
Total current assets 33,176 24,080
Vehicles and equipment, net 75,010 46,814
Rights to equipment under finance contracts,
excluding current portion 1,833 2,025
Deferred financing costs, net 4,712 3,552
Goodwill, net 212,075 171,953
Other non-current assets 190 308
Total assets $326,996 248,732
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current installments of obligations
under capital leases $340 338
Current installments of obligations
for equipment under
finance contracts 634 547
Notes payable 609 17
Accounts payable 7,975 6,904
Accrued expenses 5,886
4,690
Income taxes payable 1,378 --
Due to related parties 6,355 2,254
Total current liabilities 23,177 14,750
Obligations under capital leases,
excluding current portion 468 698
Obligations for equipment under
finance contracts, excluding
current installments 1,833 2,025
Long-term debt 107,912 62,532
Deferred income taxes 5,412 4,961
Total liabilities 138,802 84,966
Stockholders' equity:
Preferred stock; 5,000,000 shares
authorized; no share issued
or outstanding -- --
Common stock, $0.01 par value; 35,000,000 shares
authorized;17,662,225 shares issued and
outstanding at March 31, 1999; 15,707,085
shares issued and outstanding at
December 31, 1998 18 16
Additional paid-in capital 181,948 159,532
Retained earnings 6,228 4,218
Total stockholders' equity 188,194 163,766
Total liabilities and stockholders' equity $326,996 248,732
UNITED ROAD SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(In thousands, except per share amounts)
Three months ended
March 31, March 31,
1999 1998
Net revenue $59,453 --
Cost of revenue, excluding depreciation 42,843 --
Amortization of goodwill 1,279 --
Depreciation 1,891 2
Selling, general and administrative expenses 7,564 388
Income (loss) from operations 5,876 (390)
Other income (expense):
Interest income 11 5
Interest expense (2,023) --
Other (70) --
Income (loss) before income taxes 3,794 (385)
Income tax expense (benefit) 1,784 (153)
Net income (loss) $2,010 (232)
Per share amounts:
Basic earnings (loss) $.12 (.08)
Diluted earnings (loss) $.12 (.08)