NASSAU, Bahamas, March 22, 2007 (PRIME NEWSWIRE) -- Ultrapetrol (Bahamas) Limited (Nasdaq:ULTR), an industrial transportation company serving marine transportation needs in four core markets (River Business, Offshore Supply Business, Ocean Business and Passenger Business), today announced financial results for the fourth quarter and full year ended December 31, 2006.
2006 Highlights:
* Full year 2006 revenues of $173.5 million were 38% higher than
full year 2005 revenues of $125.4 million.
* Full year 2006 EBITDA was $62.4 million. Full year 2005 EBITDA
was $55.8 million, which included a net gain of $13.1 million on
the sale of the bulk carrier vessel "Cape Pampas". Excluding the
effect of this sale, full year 2005 adjusted EBITDA was $42.7
million. The 2006 EBITDA is 46% higher than this adjusted 2005
EBITDA.
* Fourth quarter 2006 EBITDA of $13.1 million, compared to fourth
quarter 2005 EBITDA of $3.0 million.
Total revenues for 2006 were $173.5 million, compared to $125.4 million in 2005. Full year 2006 net income was $10.5 million, compared to $14.6 million in 2005. The 2005 results included the net gain of $13.1 million on the sale of the "Cape Pampas". Diluted net income per share in 2006 was $0.58 compared to $0.94 in 2005. Ultrapetrol had a net loss of $2.8 million in the fourth quarter 2006, a significant improvement on the net loss of $7.8 million experienced in the equivalent period of 2005. The net result for the fourth quarter 2006 was impacted by several events and general seasonal patterns of certain of the company's businesses. These included: (1) a one-time charge totaling $2.3 million resulting from the early cancellation of Ultrapetrol's variable interest rate debt and early redemption of preferred shares of UP Offshore owned by IFC as part of the use of proceeds of Ultrapetrol's October 2006 initial public offering ("IPO"); (2) the scheduled dry docks of the company's three largest OBO Suezmax/Capesize vessels, which lost 94 days during the fourth quarter of 2006; and (3) the general seasonality of Ultrapetrol's River and Passenger Businesses, which find their most active periods in the second and third quarters of the year.
Felipe Menendez, Ultrapetrol's President and Chief Executive Officer, said: "Last year was a milestone year for Ultrapetrol. After more than 14 years as a private company, we completed our IPO in October. We also made great strides in executing our growth strategy, as evidenced by the solid performance of each of our operating units. We are pleased with the financial results generated by our diversified business model and we will continue to invest in those areas that present attractive growth opportunities. These investments underscore our commitment to growth and to improving the overall efficiency of each of our four business lines."
As part of its ongoing investment program, Ultrapetrol has this month made the following investments:
* River -- the company acquired all of the outstanding shares of another company operating in the Hydrovia System, by which Ultrapetrol has taken control of a modern fleet that includes the shallow drafted 4,500 bhp push boat "Otto Candies" (built in the U.S. in 1995) and 12 jumbo barges of 2,500 tons dwt each.
* Offshore Supply -- Ultrapetrol has recently contracted with a shipyard in India for the construction of two Platform Supply Vessels ("PSVs") of similar design to those the company has already built, with an option to build two more. If this option is exercised, Ultrapetrol will have a fleet of 10 large PSVs that utilize the most modern technology available in the world.
As previously disclosed:
* Ocean -- the company has added two ocean-going vessels to its fleet, following its strategic decision to invest in modern product tankers that will service niche trades.
Business Segment Highlights
River
Despite a drought that affected the agricultural production in large areas of the river system Ultrapetrol serves, the company increased its volume of cargo carried by 19% during 2006 versus 2005. This, coupled with higher freight rates, enabled the River segment to generate EBITDA of $18.5 million for 2006 and $3.3 million for the fourth quarter 2006, an increase of 170% and 206%, respectively, over the equivalent periods in 2005.
Offshore Supply
Ultrapetrol took delivery of two new PSVs in 2006. After consolidating UP Offshore in March 2006, the Offshore Supply segment recorded EBITDA of $13.7 million for the last nine months of the year. In the fourth quarter 2006, with four vessels in operation, this business segment generated EBITDA of $4.5 million.
Ocean
In the fourth quarter 2006, Ultrapetrol acquired the crude/product tanker "Amadeo" which was built in 1996 and has a capacity of 39,530 mt dwt. The "Amadeo" is presently being retrofitted with a double hull in Romania. Ultrapetrol expects her to enter service in South America in the second quarter 2007. Additionally, the company purchased the m.t. "Alejandrina," a double hull product tanker built in 2006 that entered service in South America this month.
Ultrapetrol's Ocean business generated an EBITDA of $20.8 million in 2006 compared to $43.1 million in 2005 (the 2005 EBITDA includes the net gain of $13.1 million on the sale of the "Cape Pampas"). In the fourth quarter 2006, during which Ultrapetrol's three largest Suezmax/Capesize OBO vessels were out of service for 94 days due to a scheduled dry dock and survey, the Ocean segment posted an EBITDA of $3.0 million. The Ocean segment's 2005 fourth quarter EBITDA was $5.2 million.
Passenger
The company's Passenger business recorded EBITDA of $8.7 million in 2006, compared to $4.5 million in 2005. The increase resulted from a greater number of operational days in 2006 for the vessel "New Flamenco" (for which Ultrapetrol contracted partial off-season employment) and the commencement of service in April 2006 of the vessel "Grand Victoria." The unit's fourth quarter 2006 EBITDA was $1.9 million, compared to zero EBITDA in the fourth quarter 2005.
Ultrapetrol believes that the disclosed non-Generally Accepted Accounting Principles ("GAAP") measures such as EBITDA, and any adjustments thereto, when presented in conjunction with comparable GAAP measures, are useful for investors to use in evaluating the performance of the company. These non-GAAP measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. A reconciliation of GAAP results to non-GAAP results is presented in the tables that accompany this press release.
Investment Community Conference Call
Ultrapetrol will host a conference call for investors and analysts on Thursday, March 22, 2007, at 11:00 a.m. ET. Interested parties may participate in the live conference call by dialing 888-391-3141 (toll-free U.S.) or +1 210-234-0007 (outside of the U.S.); passcode: ULTRAPETROL. Please register at least 10 minutes before the conference call begins. A simultaneous audio webcast of the call also will be available in the Investor Relations section of Ultrapetrol's Web site, www.ultrapetrol.net. A replay of the call will be available for one week via telephone and on Ultrapetrol's Web site starting approximately one hour after the call ends. The replay can be accessed at 866-490-2539 (toll-free U.S.) or +1 203-369-1695 (outside of the U.S.); passcode: ULTRAPETROL.
About Ultrapetrol
Ultrapetrol is an industrial transportation company serving the marine transportation needs of its clients in the markets on which it focuses. It serves the shipping markets for grain, forest products, minerals, crude oil, petroleum and refined petroleum products, as well as the offshore oil platform supply market and the leisure passenger cruise market, with its extensive and diverse fleet of vessels. These include river barges and push boats, platform supply vessels, tankers, oil-bulk-ore vessels and passenger ships. More information on the company can be found at www.ultrapetrol.net.
The Ultrapetrol (Bahamas) Limited logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3164
Forward Looking Language
The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.
In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include future operating or financial results; pending or recent acquisitions, business strategy and expected capital spending or operating expenses, including dry docking and insurance costs; general market conditions and trends, including charter rates, vessel values, and factors affecting vessel supply and demand; our ability to obtain additional financing; our financial condition and liquidity, including our ability to obtain financing in the future to fund capital expenditures, acquisitions and other general corporate activities; our expectations about the availability of vessels to purchase, the time that it may take to construct new vessels, or vessels' useful lives; our dependence upon the abilities and efforts of our management team; changes in governmental rules and regulations or actions taken by regulatory authorities; adverse weather conditions that can affect production of the goods we transport and navigability of the river system; the highly competitive nature of the oceangoing transportation industry; the loss of one or more key customers; fluctuations in foreign exchange rates and devaluations; potential liability from future litigation; and other factors. Please see our filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.
ULTR-F
Summary consolidated financial data
The following table sets forth Ultrapetrol's summary consolidated financial information and other operating data. You should carefully read the company's audited consolidated financial statements, and the information set forth in Ultrapetrol's 2006 Annual Report on Form 20-F, as filed with the Securities and Exchange Commission under "Management's discussion and analysis of financial condition and results of operations" for additional financial information about the Company. Ultrapetrol derived its summary consolidated statement of income data for the years ended December 31, 2004, 2005 and 2006, and its summary consolidated balance sheet data as of December 31, 2004, 2005 and 2006, from its audited consolidated financial statements. Please refer to the footnotes to Ultrapetrol's consolidated financial statements for a discussion of the basis on which the Company's consolidated financial statements are presented.
Year ended December 31,
------------------------------------
2004(a) 2005 2006(b)
---------- ---------- ----------
(Dollars in thousands)
Statement of Income Data:
Revenues $ 95,160 $ 125,361 $ 173,466
Operating expenses(c) (40,815) (73,061) (97,610)
Depreciation and amortization (18,688) (21,333) (28,340)
Management fees to related
parties(d) (1,513) (2,118) (511)
Administrative and commercial
expenses (7,494) (7,617) (13,905)
Other operating income
(expenses)(e) 784 22,021 (198)
---------- ---------- ----------
Operating profit 27,434 43,253 32,902
Financial expense (16,134) (19,141) (19,025)
Financial gain (loss) on
extinguishment of debt(f) (5,078) -- (1,411)
Financial income 119 1,152 733
Investment in affiliates(g) 406 (497) 588
Other income (expenses) 174 384 859
---------- ---------- ----------
Income before income tax and
minority interest 6,921 25,151 14,646
Income taxes (642) (786) (2,201)
Minority interest(h) (1,140) (9,797) (1,919)
---------- ---------- ----------
Net income $ 5,139 $ 14,568 $ 10,526
========== ========== ==========
Basic net income per share $ 0.33 $ 0.94 $ 0.59
========== ========== ==========
Diluted net income per share $ 0.33 $ 0.94 $ 0.58
========== ========== ==========
Basic weighted average number
of shares 15,500,000 15,500,000 17,965,753
========== ========== ==========
Diluted weighted average number
of shares 15,500,000 15,500,000 18,079,091
========== ========== ==========
Balance Sheet Data
(end of period):
Cash and cash equivalents $ 11,602 $ 7,914 $ 20,648
Current restricted cash 2,975 3,638 --
Working capital(i) 13,441 26,723 31,999
Vessels and equipment, net 160,535 182,069 333,191
Total assets 273,648 278,282 426,379
Total debt 220,413 211,275 220,685
Shareholders' equity 28,910 43,474 179,429
Other Financial Data:
Net cash provided by operating
activities $ 23,129 $ 16,671 $ 28,801
Net cash used in investing
activities (57,556) (26,725) (104,029)
Net cash provided by financing
activities 37,781 6,366 87,962
EBITDA(j)(k) 45,681 55,828 62,417
Selected Fleet Data
(end of period):
River Business
Dry barges 411 446 446
Tank barges 44 44 44
Total barges 455 490 490
Total barge capacity
(approximate dwt) 744,000 798,000 798,000
Number of pushboats 21 23 23
Offshore Supply Business
Large PSVs 0 0(l) 4
Ocean Business
Total ocean vessels 6 6 7
Total ocean vessel capacity
(approximate dwt) 747,000 602,000 641,000
Passenger Business
Passenger vessels 0 2 2
Total passenger berths 0 1,585 1,585
(a) In a series of related transactions, on April 23, 2004, through two wholly owned subsidiaries, we acquired from American Commercial Barge Lines Ltd., or ACBL, the remaining 50% equity interest in UABL Limited, or UABL, that we did not previously own, along with a fleet of 50 river barges and seven river push boats. The results of UABL's operations have been included in our consolidated financial statements since that date.
(b) On March 21, 2006 we acquired an additional 66.67% of UP Offshore, which is the holding company for our Offshore Supply Business, raising our ownership to 94.45%. The results of UP Offshore's operations have been included in our consolidated financial statements since that date.
(c) Operating expenses included voyage expenses and running costs. Voyage expenses, which are incurred when a vessel is operating under a contract of affreightment (as well as any time when they are not operating under time or bareboat charter), comprise all costs relating to a given voyage, including port charges, canal dues and fuel (bunkers) costs, are paid by the vessel owner and are recorded as voyage expenses. Voyage expenses also include charter hire payments made by us to owners of vessels that we have chartered in. Running costs, or vessel operating expenses, include the cost of all vessel management, crewing, repairs and maintenance, spares and stores, insurance premiums and lubricants and certain dry docking costs.
(d) Management fees to related parties included payments to our related companies Ravenscroft Shipping (Bahamas) S.A., or Ravenscroft, and Oceanmarine S.A., or Oceanmarine, for ship management and administration services that they provide to us. We purchased the business of Ravenscroft and hired the administrative personnel and purchased the administrative related assets of Oceanmarine on March 21, 2006; accordingly, ship management and administration costs appear as in-house expenses in our results from that date.
(e) Other income in 2005 includes approximately $21.8 million gain from the sale of our Capesize bulk carrier, the Cape Pampas. This vessel was owned directly by Ultracape (Holdings) Ltd., or Ultracape, a company of which we owned 60%. Accordingly, the gain on sale attributable to the remaining 40% that we did not own is deducted from income as minority interest.
(f) During 2004, we repurchased $5.7 million principal amount of our Prior Notes for a price of $4.3 million and realized a gain of $1.3 million, and we incurred $6.4 million in expenses in relation to our tender offer and repurchase of our Prior Notes. During 2006, there was an early redemption of our indebtedness in our River Business and we incurred a loss of $1.4 million related to the unamortized balance of issuance costs.
(g) Prior to April 2004, we owned 50% of UABL through a joint venture with ACBL and, accordingly, we accounted for it using the equity method. Also, prior to March 2006, we owned 27.78% of UP Offshore (Bahamas) Ltd. and, accordingly, we accounted for it using the equity method.
(h) We owned 60% of Ultracape, which owned the Capesize bulk carrier Cape Pampas prior to its sale in May 2005, and accordingly recognized minority interest for the 40% we did not own. Figures in 2004 principally represent 40% of the income earned by Ultracape, from operation of the Cape Pampas. The figure in 2005 represents 40% of the income from operations of the Cape Pampas as well as 40% of the gain on the sale of the vessel in May 2005. Minority interest in 2006 includes a loss of $0.9 million incurred through the redemption of the preferred shares issued by our subsidiary UP Offshore owned by IFC, which was part of the use of proceeds from our IPO.
(i) Current assets less current liabilities.
(j) EBITDA consists of net income (loss) prior to deductions for interest expense and other financial gains and losses, income taxes, depreciation of vessels and equipment and amortization of dry dock expense, intangible assets, financial gain (loss) on extinguishment of debt and a premium paid for redemption of preferred shares. We have provided EBITDA in this report because we use it to, and believe it provides useful information to investors to measure our performance and evaluate our ability to incur and service indebtedness. We believe that EBITDA is intended to exclude all items that affect results relating to financing activities. The gain and losses associated with extinguishment of debt including preferred shares issued for our subsidiaries are a direct financing item that affects our results, and as such we exclude these items in our calculation of EBITDA. We do not intend for EBITDA to represent cash flows from operations, as defined by GAAP (on the date of calculation) and it should not be considered as an alternative to net income as an indicator of our operating performance or to cash flows from operations as a measure of liquidity. This definition of EBITDA may not be comparable to similarly titled measures disclosed by other companies. Generally, funds represented by EBITDA are available for management's discretionary use.
The following table reconciles our EBITDA to our net income (loss):
Year ended December 31, Fourth Quarter
------------------------------ -----------------
2004 2005 2006 2005 2006
------- -------- ------- ------- -------
(Dollars in Thousands)
Net Income (loss) $ 5,139 $ 14,568 $10,526 $(7,801) $(2,752)
Plus
Financial Expense 16,134 19,141 19,025 4,970 3,681
Financial gain on
extinguishment
of debts (1,344) -- -- -- --
Financial losses
on extinguishment
of debts 6,422 -- 1,411(i) -- 1,411
Income taxes 642 786 2,201 527 1,803
Depreciation and
Amortization 18,688 21,333 28,340 5,328 8,038
Premium paid for
redemption of
preferred
shares(ii) -- -- 914 -- 914
------- -------- ------- ------- -------
EBITDA (iii) $45,681 $55,828(iii) $62,417 $ 3,024 $13,095
======= ======== ======= ======= =======
Adjustments
Gain on sale of
Cape Pampas -- (13,100) -- -- --
Adjusted EBITDA $45,681 $ 42,728 $62,417 $ 3,024 $13,095
======= ======== ======= ======= =======
(i) Corresponds to the loss incurred in the fourth quarter of 2006
through the early repayment of the loans granted by IFC to UABL,
which was part of the use of proceeds from our IPO.
(ii) See note (h) above.
(iii) EBITDA for 2005 includes $13.1 million net of minority
interest from the gain on sale of Cape Pampas in May 2005. See
"Management discussion and analysis of financial condition and
results of operations-Developments in 2005.
(k) The following tables reconcile our EBITDA to our operating profit per business segment
Year Ended December 31, 2006
---------------------------------------------------------------------
(Dollars in Offshore
thousands) River Supply Ocean Passenger
Business Business Business Business Total
----------------- -------- -------- -------- -------- -------
Segment
Operating
Profit 10,755 11,480 5,566 5,101 32,902
----------------- ------- ------- ------- ------- -------
Depreciation
and
amortization 8,136 2,340 14,238 3,626 28,340
----------------- ------- ------- ------- ------- -------
(Loss) Income
from Investment
in affiliates (124) 328 384 0 588
----------------- ------- ------- ------- ------- -------
Other, net(iv) 0 67 792 0 859
----------------- ------- ------- ------- ------- -------
Minority interest (285) (1,409) (225) (1,919)
----------------- ------- ------- ------- ------- -------
Premium paid for
redemption of
preferred
shares(v) 914 914
----------------- ------- ------- ------- ------- -------
Segment EBITDA: 18,482 13,720 20,755 8,727 61,684
----------------- ------- ------- ------- ------- -------
Financial Income 733
----------------- ------- ------- ------- ------- -------
Total EBITDA 62,417
----------------- ------- ------- ------- ------- -------
Year Ended December 31, 2005
---------------------------------------------------------------------
(Dollars in Offshore
thousands) River Supply Ocean Passenger
Business Business Business Business Total
----------------- -------- -------- -------- -------- -------
Segment
Operating
Profit 366 183 39,289 3,415 43,253
----------------- ------- ------- ------- ------- -------
Depreciation
and
amortization 7,166 0 13,063 1,104 21,333
----------------- ------- ------- ------- ------- -------
Investment in
affiliates (306) (12) (179) (497)
----------------- ------- ------- ------- ------- -------
Other, net(iv) 0 0 384 0 384
----------------- ------- ------- ------- ------- -------
Minority
interest (386) (9,411)(vi) (9,797)
----------------- ------- ------- ------- ------- -------
Premium paid
for redemption
of preferred
shares 0 0 0 0 0
----------------- ------- ------- ------- ------- -------
Segment EBITDA: 6,840 171 43,146 4,519 54,676
----------------- ------- ------- ------- ------- -------
Financial Income 1,152
----------------- ------- ------- ------- ------- -------
Total EBITDA 55,828
----------------- ------- ------- ------- ------- -------
Adjustments
gain on sale
of Cape Pampas (13,100) (13,100)
----------------- ------- ------- ------- ------- -------
Adjusted EBITDA 6,840 171 (30,046) 4,519 42,728
----------------- ------- ------- ------- ------- -------
Quarter Ended December 31, 2006
---------------------------------------------------------------------
(Dollars in Offshore
thousands) River Supply Ocean Passenger
Business Business Business Business Total
----------------- -------- -------- -------- -------- -------
Segment
Operating
Profit 987 3,567 (496) 507 4,565
----------------- -------- -------- -------- -------- -------
Depreciation and
amortization 2,257 951 3,446 1,395 8,049
----------------- -------- -------- -------- -------- -------
Investment in
affiliates (74) (12) 0 (86)
----------------- -------- -------- -------- -------- -------
Other, net(iv) 138 0 (22) 0 116
----------------- -------- -------- -------- -------- -------
Minority interest (19) 909 19 909
----------------- -------- -------- -------- -------- -------
Premium paid for
redemption of
preferred
shares(v) 0 (914) 0 0 (914)
----------------- -------- -------- -------- -------- -------
Segment EBITDA: 3,289 4,513 2,935 1,902 12,639
----------------- -------- -------- -------- -------- -------
Financial Income 456
----------------- -------- -------- -------- -------- -------
Total EBITDA 13,095
----------------- -------- -------- -------- -------- -------
Quarter Ended December 31, 2005
---------------------------------------------------------------------
(Dollars in Offshore
thousands) River Supply Ocean Passenger
Business Business Business Business Total
----------------- -------- -------- -------- -------- -------
Segment Operating
Profit (4,790) 129 1,750 (332) (3,243)
----------------- -------- -------- -------- -------- -------
Depreciation and
amortization 1,919 0 3,078 331 5,328
----------------- -------- -------- -------- -------- -------
Investment in
affiliates (251) 196 20 0 (35)
----------------- -------- -------- -------- -------- -------
Other, net(iv) 0 0 340 0 340
----------------- -------- -------- -------- -------- -------
Minority interest 25 (28) (3)
----------------- -------- -------- -------- -------- -------
Premium paid for
redemption of
preferred
shares 0 0 0 0 0
----------------- -------- -------- -------- -------- -------
Segment EBITDA: (3,097) 325 5,160 (1) 2,387
----------------- -------- -------- -------- -------- -------
Financial Income 637
----------------- -------- -------- -------- -------- -------
Total EBITDA 3,024
----------------- -------- -------- -------- -------- -------
(iv) Individually not significant
(v) Corresponds to a loss of $0.9 million incurred through redemption
of the Preferred Shares issuance by our subsidiary UP Offshore
owned by IFC which was part of the Use of Proceeds from our IPO
(vi) $13.1 million net of minority interest from the gain on sale of
Cape Pampas in May 2005. (See "Management's discussion and
analysis of financial condition and results of
operations-developments in 2005.")
(l) During 2005, UP Offshore owned two PSVs. Because we owned only 27.78% of UP Offshore's equity interest at year's end, we do not show these vessels as being part of our fleet. We do recognize the revenue from these vessels in our consolidated statement of income because we operated them under a bareboat charter from UP Offshore. This revenue was substantially offset by related operating expenses and charterhire.