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[US Liquids Logo]
EXHIBIT 99.1
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P R E S S R E L E A S E
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FOR IMMEDIATE RELEASE CONTACT: Earl J. Blackwell
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281/ 272-4507
USL #01-02
U S LIQUIDS REPORTS PRELIMINARY 2000 FOURTH QUARTER AND YEAR-END RESULTS AND
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EARNINGS GUIDANCE FOR 2001
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HOUSTON, TX (January 16, 2001) . . . . U S Liquids Inc (ASE:USL) announced today
that results for its fourth quarter and year ended December 31, 2000 will be
negatively impacted by special charges taken in connection with anticipated
divestitures of several non-core operations and the closure of the Shreveport
facility. The Company will continue to focus on industrial and commercial
wastewater collection, processing and disposal, as well as treatment and
disposal of oilfield exploration and production waste. CEO Mike Lawlor said in
making the announcement that the Company expects results for 2001 to represent
not only a substantial improvement, but also a strong recovery.
The Company said that its financial statements for the periods will include
charges for the anticipated below-book divestitures of several non-core
operations in its Commercial Wastewater Division ($19.8 million), the closure of
the Shreveport facility ($10.2 million), reserves to cover expenses associated
with certain legal and regulatory situations, and other reserves to cover
severance, bad debt and other expenses totaling $8.1 million. The Company also
expects to recognize a one-time special income of $12.8 million relating to the
termination of a disposal agreement. The fourth quarter results will cause the
Company to be out of compliance with certain financial covenants of its
revolving credit facility. The Company is working with its banks to amend these
covenants, but no guarantee can be given that it will be successful.
For the fourth quarter ended December 31, 2000, preliminary unaudited revenue is
anticipated to be between $61.0 million and $63.0 million, versus year-earlier
fourth quarter revenue of $58.8 million. The Company anticipates that it will
report a loss for the quarter ended December 31, 2000 of approximately $26.8
million or approximately ($1.69) per diluted share, versus a year-earlier fourth
quarter loss of $5.5 million, or ($0.35) loss per diluted share. These figures
are subject to normal year-end adjustments, and actual earnings are scheduled to
be announced on or about February 26, 2001.
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411 N. Sam Houston Pkwy. E., Suite 400 . Houston, Texas 77060
(281) 272-4500 . Fax (281) 272-4545
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As of the nine months ended September 30, 2000, the Company had reported revenue
of $185.7 million, with net income of $1.8 million, or $0.11 per diluted share,
as compared to September 30, 1999 revenue of $173.0 million with net income of
$4.3 million or $0.26 per diluted share.
CEO Mike Lawlor commented, "We are taking steps to focus much more closely on
the core competencies that we think will be our strongest lines of business in
the future. As a result, we intend to dispose of several non-core operations
from our Commercial Wastewater Division and close the Shreveport facility. For
the year ended December 31, 2000 these companies generated approximately $39.4
million of revenues, $0.1 million of EBIT and $3.1 million of EBITDA. We
believe that 2001 will be a year of recovery, with strong improvements in
operations and results." Mr. Lawlor added that the Company's Detroit operation,
which has created a major drag on earnings over the past 16 months, continues to
recover and strengthen, though its operations were halted for a time during
December due to extreme weather conditions that affected both customers and
operations in the region.
CFO Earl Blackwell said that the Company currently estimates that it will post
revenues of between $234.0 million and $236.0 million for 2001. The Company
also estimates earnings to be between $0.24 and $0.26 per share for 2001.
EBITDA is expected to be between $35.0 million and $37.0 million in 2001 and
free cash flow, after capital expenditures of $9.2 million, is expected to be
between $25.8 million and $27.8 million. All estimates assume that anticipated
divestitures are completed by March 31, 2001.
Further details on the 2001 outlook will be available on January 17th, when the
Company hosts a conference call and webcast for analysts and investors. The
press release announcing this conference call was issued January 11, 2001. A
copy is available on our web page at www.usliquids.com.
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U S Liquids Inc., based in Houston, is a leading provider of services in North
America for the collection, processing, recovery and disposal of liquid waste.
This release includes forward-looking statements, including financial
projections, descriptions of management's plans and objectives and statements
related to future operations. The Company's business and prospects are subject
to risks and uncertainties, any of which could cause actual results to differ
materially from those described in the forward-looking statements contained
herein. Such risks and uncertainties include, among other things: (i) the
impact of pending litigation and administrative proceedings involving the
Company, including all litigation and administrative proceedings relating to the
operations of the Company's Detroit, Michigan facility; (ii) the Company's
ability to obtain or maintain governmental permits and approvals necessary for
the operation of its facilities; (iii) changes in existing laws and regulations
governing environmental protection, zoning and other matters affecting the
Company's operations; (iv) general economic conditions; (v) changes in the level
of exploration for and production of oil and gas, particularly in the Gulf Coast
region; and (vi) the Company's ability to negotiate amendments to the financial
covenants contained in its revolving credit facility.
Additional information regarding these and other risks and uncertainties that
could materially affect future results and the accuracy of the forward-looking
statements contained herein is included in the Company's Securities and Exchange
Commission filings, including the latest Annual Report on Form 10-K and
subsequent quarterly reports.
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