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Universal Energy Group Releases Third Quarter Financial Results and Operational Updates
TORONTO, ONTARIO, Aug 12, 2008 (Marketwire via COMTEX) -- Universal Energy Group Ltd. ("Universal Energy Group") (TSX:UEG) is pleased to announce the release of its financial results for the three and nine month period ended June 30, 2008 of its gas and electricity marketing division, Universal Energy Corporation ("Universal"), its ethanol division, Terra Grain Fuels Inc. ("TGF") and its home services division, National Home Services ("NHS"). Highlights for the third quarter ended June 30, 2008:
- Universal's operational revenue up 75% to $104.0 million; YTD up 73% to $294.6 million.
- Universal's operational margin up 74% to $18.2 million; YTD up 68% to $51.0 million.
- Universal's operational income after customer acquisition costs up 1,393% to $8.9 million; YTD up 112% to $16.9 million.
- Universal's gross customer adds of 20,149 RCEs; Attrition of 22,243 RCEs annualized to 15.2% .
- Universal's YTD net customer additions of 63,811 RCEs; Ending customer base of 427,131 RCEs.
- TGF's Belle Plaine facility commenced production on May 31, 2008.
- NHS introduced a water heater rental program. Its operations are still in the start-up phase.
- Initiation of $0.75 per common share annual dividend, payable quarterly. The first dividend payment will occur on September 30, 2008.
Universal earned revenue for the three and nine months ended June 30, 2008 of $91.5 million and $320.2 million compared to $52.4 million and $178.0 million for the 2007 period. Gross margin for the three and nine months ended June 30, 2008 was $28.2 million and $89.5 million compared to $20.8 million and $61.4 million for the 2007 period. Net income for the three and nine months ended June 30, 2008 was $27.7 million and $60.1 million compared to a loss of $22.0 million and $2.0 million for the 2007 period.
Universal uses the concepts of "operational revenue", "operational margin", "operational income before marketing costs" and "operational income after marketing costs" to adjust for the differences between revenue recognition and delivery/payment that exist in its natural gas business and for the effect of the financial swaps used in its electricity business. Please refer to our management's discussion and analysis ("MD&A") for an explanation of how these non-GAAP measures are calculated and for a reconciliation to the most comparable GAAP measures reported in Universal's financial statements for the three and nine months ended June 30, 2008.
Universal earned operational revenue for the three and nine months ended June 30, 2008 of $104.0 million and $294.6 million compared to $59.6 million and $170.5 million for the 2007 period. Operational margin for the three and nine months ended June 30, 2008 was $18.2 million and $51.0 million compared to $10.4 million and $30.4 million for the 2007 period. Operational income before customer acquisition costs for the three and nine months ended June 30, 2008 was $11.9 million and $32.4 million compared to $6.5 million and $20.4 million for the 2007 period. Operational income after customer acquisition costs for the three and nine months ended June 30, 2008 was $8.9 million and $16.9 million compared to $0.593 million and $7.9 million for the 2007 period. Universal's gross customer additions for the quarter were 20,149 RCEs. Attrition during the quarter was 22,243 RCEs (representing an annualized attrition rate of 15.2% across all markets) for a total customer base at June 30, 2008 of 427,131 RCEs.
TGF's Belle Plaine Facility commenced production on May 31, 2008. Initial production runs of Ethanol and Dried Distillers Grains revealed that a component of the plant's evaporation system was under-designed and requires an upgrade. The expense related to the upgrade is to be covered by the general contractor. Until such time as the component is installed the plant is expected to operate at 80% of design capacity.
NHS is in the start-up phase of its operations. As at June 30, 2008 NHS has installed 2,427 water heaters in residential homes and anticipates earning revenue from its installed base in Q4-2008.
With the Company's ongoing maturation and strong cash flow generation profile a quarterly cash dividend policy was approved on June 11, 2008. On an annual basis, the cash dividend is expected to be $0.75 per common share. The Company's first dividend payment of $0.1875 per common share will be paid on September 30, 2008 to shareholders of record on September 15, 2008.
Universal Energy Group's unaudited interim consolidated financial statements for the three and nine months ended June 30, 2008 and 2007 and MD&A attached hereto are part of this news release. See "Forward-looking information" and "Non-GAAP measures" in the attached MD&A for cautionary information regarding forward-looking statements and discussion of "Non-GAAP measures".
Universal Energy Group's common shares are listed on the Toronto Stock Exchange under the symbol "UEG". Universal Energy Group through its subsidiary Universal Energy Corporation, sells electricity and natural gas in Ontario and natural gas in British Columbia to residential, small to mid-size commercial and small industrial customers. Universal Energy Group through its subsidiary Universal Gas & Electric Corporation, sells natural gas in Michigan to residential, small to mid-size commercial and small industrial customers. Universal Energy Group through its subsidiary National Energy Corporation, operating under the trade name National Home Services, sells long-term water heater rental programs to Ontario residential customers. Universal Energy Group through its subsidiary Terra Grain Fuels Inc. operates an ethanol facility near Belle Plaine, Saskatchewan. Additional information about Universal Energy Group is available on SEDAR (www.sedar.com). ----------- *amM - keine Kaufempfehlung ...wer Rechtschreibfehler findet - kann sie behalten ! 25.07.08 Eröffnunsspiel 3.Liga: RWE-SGD 0:1 DFB-Pokal 1.Runde: RWE-Bayern München 3:4 |