NuCo2 Inc. Reports Gains In Operating Results For Third Quarter And Nine Months

Apr 26, 2001, 01:00 ET from NuCo2 Inc.

    STUART, Fla., April 26 /PRNewswire/ -- NuCo2 Inc. (Nasdaq: NUCO), the
 largest supplier in the U.S. of bulk CO2 systems for carbonating and
 dispensing fountain beverages, today announced further gains in operating
 results for the three-month and nine-month periods ended March 31, 2001.
     For the third fiscal quarter ended March 31, 2001, net sales increased
 15%, to a record $17.0 million, compared with $14.8 million in the
 corresponding year-earlier period.  Operating income rose 171%, to $695,000,
 from $256,000 in the prior year-earlier period, and net loss declined to $1.8
 million, or $0.23 per share, from a net loss of $2.2 million, or $0.31 per
 share, a year-ago.  Earnings before interest, taxes, depreciation and
 amortization ("EBITDA") rose 21.5%, to $5.1 million, the highest level it has
 reached in any quarter in the Company's history.
    The Company for the third quarter of fiscal 2001 also reported, as a
 percentage of net sales, reductions in cost of products sold; selling, general
 and administrative expenses; depreciation and amortization; and interest
 expense as compared to a year ago.
     Nine month net sales rose 17.7%, to $49.6 million, from $42.1 million in
 the corresponding year-earlier period.  Operating income amounted to $1.4
 million, an increase of 132% over operating income of $0.6 million a year-ago.
 Net loss amounted to $6.5 million, or $0.88 per share, compared with a net
 loss of $6.8 million, or $0.94 per share, in the corresponding year-ago
 period.  EBITDA rose 20.4%, to $14.4 million, from $11.9 million in the first
 nine months of fiscal 2000.
     "We are pleased that the results and progress demonstrated in the third
 quarter are consistent with the program we implemented to favorably impact the
 Company's growth and profitability objectives," said Michael E. DeDomenico,
 NuCo2's President and Chief Executive Officer.  "With NuCo2 now getting solid
 traction from pricing and improved productivity as a result of this program,
 the Company is moving towards our objective of 20%-plus annual growth and
 sequential EBITDA improvements each quarter."
     As noted previously, NuCo2 earlier this year instituted a program to slow
 expansion in order to better position the Company for its next level of
 growth.  The program involved strengthening marketing and sales capabilities,
 upgrading distribution activities and personnel to assure the highest level of
 services and customer support, and increasing prices.
     As of March 31, 2001, NuCo2 operated a national network of 93 service
 locations in 45 states servicing approximately 75,000 customers, compared with
 70,000 a year earlier.
     Substantially all of NuCo2's revenues are derived from the rental of bulk
 CO2 systems installed at customers' sites and the sale of CO2.  NuCo2 Inc. is
 a pioneer in the use of, and the nation's leading supplier of, bulk CO2
 systems for carbonating and dispensing fountain beverages.  Bulk CO2 involves
 use of a cryogenic vessel delivered to a customer's site, which preserves CO2
 in its liquid form and then converts the liquid product to gaseous CO2, the
 necessary ingredient for beverage carbonation.  It is a relatively new
 technology with clear advantages over high pressure CO2, such as consistent
 and improved beverage quality, increased product yields, reduced employee
 handling and storage requirements, greater productivity, elimination of
 downtime and product waste as well as enhanced safety.  Among NuCo2's
 customers are many of the major national and regional restaurant and
 convenience store chains, movie theater operations, theme parks, resorts and
 sports venues.
     Statements contained in this press release concerning the Company's
 outlook, competitive position and other statements of management's belief,
 goals and expectations are "forward looking statements" as that term is
 defined in the Private Securities Litigation Reform Act of 1995, and are
 subject to risks and uncertainties that could cause actual results to differ
 materially from those expressed in or implied by the statements.  These risks
 and uncertainties include, but are not limited to, the ability of the Company
 to add new accounts and competition.  The Company disclaims any obligations to
 update any forward-looking statement as a result of developments occurring
 after the date of this press release.
     NuCo2 Inc. investors can listen to a conference call scheduled for
 Thursday, April 26, 2001 at 10:00 a.m. (EDT) over the Internet through
 Investor Broadcast Networks' Vcall website, located at http://www.vcall.com.
 To listen to the live call, please go to the web site at least fifteen minutes
 early to register, download and install any necessary audio software.  For
 those who cannot listen to the live broadcast, a replay will be available
 shortly after the call.
 
 
                                   NUCO2 INC.
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                (000'S OMITTED)
 
                            Three Months Ended           Nine Months Ended
                                   March 31,                   March 31,
 
                               2001          2000         2001          2000
 
     Net Sales              $17,028       $14,812      $49,573       $42,101
 
      Costs and expenses:
       Cost of products sold  8,255         7,410       24,539        21,151
       Selling, general and
        administrative
        expenses              3,694         3,223       10,658         9,012
       Depreciation and
        amortization          4,384         3,923       13,010        11,350
                             16,333        14,556       48,207        41,513
 
 
     Operating income           695           256        1,366           588
 
     Interest expense, net    2,494         2,502        7,886         7,380
 
     Net (loss)            $(1,799)      $(2,246)     $(6,520)      $(6,792)
 
     Basic and Diluted EPS:
 
      Net (loss)            $(0.23)       $(0.31)      $(0.88)       $(0.94)
 
     Weighted average number
      of common and common
      equivalent shares
      outstanding
      Basic and Diluted       8,387         7,246        7,742         7,226
 
     EBITDA                   5,079         4,179       14,376        11,938
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X95485584
 
 

SOURCE NuCo2 Inc.
    STUART, Fla., April 26 /PRNewswire/ -- NuCo2 Inc. (Nasdaq: NUCO), the
 largest supplier in the U.S. of bulk CO2 systems for carbonating and
 dispensing fountain beverages, today announced further gains in operating
 results for the three-month and nine-month periods ended March 31, 2001.
     For the third fiscal quarter ended March 31, 2001, net sales increased
 15%, to a record $17.0 million, compared with $14.8 million in the
 corresponding year-earlier period.  Operating income rose 171%, to $695,000,
 from $256,000 in the prior year-earlier period, and net loss declined to $1.8
 million, or $0.23 per share, from a net loss of $2.2 million, or $0.31 per
 share, a year-ago.  Earnings before interest, taxes, depreciation and
 amortization ("EBITDA") rose 21.5%, to $5.1 million, the highest level it has
 reached in any quarter in the Company's history.
    The Company for the third quarter of fiscal 2001 also reported, as a
 percentage of net sales, reductions in cost of products sold; selling, general
 and administrative expenses; depreciation and amortization; and interest
 expense as compared to a year ago.
     Nine month net sales rose 17.7%, to $49.6 million, from $42.1 million in
 the corresponding year-earlier period.  Operating income amounted to $1.4
 million, an increase of 132% over operating income of $0.6 million a year-ago.
 Net loss amounted to $6.5 million, or $0.88 per share, compared with a net
 loss of $6.8 million, or $0.94 per share, in the corresponding year-ago
 period.  EBITDA rose 20.4%, to $14.4 million, from $11.9 million in the first
 nine months of fiscal 2000.
     "We are pleased that the results and progress demonstrated in the third
 quarter are consistent with the program we implemented to favorably impact the
 Company's growth and profitability objectives," said Michael E. DeDomenico,
 NuCo2's President and Chief Executive Officer.  "With NuCo2 now getting solid
 traction from pricing and improved productivity as a result of this program,
 the Company is moving towards our objective of 20%-plus annual growth and
 sequential EBITDA improvements each quarter."
     As noted previously, NuCo2 earlier this year instituted a program to slow
 expansion in order to better position the Company for its next level of
 growth.  The program involved strengthening marketing and sales capabilities,
 upgrading distribution activities and personnel to assure the highest level of
 services and customer support, and increasing prices.
     As of March 31, 2001, NuCo2 operated a national network of 93 service
 locations in 45 states servicing approximately 75,000 customers, compared with
 70,000 a year earlier.
     Substantially all of NuCo2's revenues are derived from the rental of bulk
 CO2 systems installed at customers' sites and the sale of CO2.  NuCo2 Inc. is
 a pioneer in the use of, and the nation's leading supplier of, bulk CO2
 systems for carbonating and dispensing fountain beverages.  Bulk CO2 involves
 use of a cryogenic vessel delivered to a customer's site, which preserves CO2
 in its liquid form and then converts the liquid product to gaseous CO2, the
 necessary ingredient for beverage carbonation.  It is a relatively new
 technology with clear advantages over high pressure CO2, such as consistent
 and improved beverage quality, increased product yields, reduced employee
 handling and storage requirements, greater productivity, elimination of
 downtime and product waste as well as enhanced safety.  Among NuCo2's
 customers are many of the major national and regional restaurant and
 convenience store chains, movie theater operations, theme parks, resorts and
 sports venues.
     Statements contained in this press release concerning the Company's
 outlook, competitive position and other statements of management's belief,
 goals and expectations are "forward looking statements" as that term is
 defined in the Private Securities Litigation Reform Act of 1995, and are
 subject to risks and uncertainties that could cause actual results to differ
 materially from those expressed in or implied by the statements.  These risks
 and uncertainties include, but are not limited to, the ability of the Company
 to add new accounts and competition.  The Company disclaims any obligations to
 update any forward-looking statement as a result of developments occurring
 after the date of this press release.
     NuCo2 Inc. investors can listen to a conference call scheduled for
 Thursday, April 26, 2001 at 10:00 a.m. (EDT) over the Internet through
 Investor Broadcast Networks' Vcall website, located at http://www.vcall.com.
 To listen to the live call, please go to the web site at least fifteen minutes
 early to register, download and install any necessary audio software.  For
 those who cannot listen to the live broadcast, a replay will be available
 shortly after the call.
 
 
                                   NUCO2 INC.
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                (000'S OMITTED)
 
                            Three Months Ended           Nine Months Ended
                                   March 31,                   March 31,
 
                               2001          2000         2001          2000
 
     Net Sales              $17,028       $14,812      $49,573       $42,101
 
      Costs and expenses:
       Cost of products sold  8,255         7,410       24,539        21,151
       Selling, general and
        administrative
        expenses              3,694         3,223       10,658         9,012
       Depreciation and
        amortization          4,384         3,923       13,010        11,350
                             16,333        14,556       48,207        41,513
 
 
     Operating income           695           256        1,366           588
 
     Interest expense, net    2,494         2,502        7,886         7,380
 
     Net (loss)            $(1,799)      $(2,246)     $(6,520)      $(6,792)
 
     Basic and Diluted EPS:
 
      Net (loss)            $(0.23)       $(0.31)      $(0.88)       $(0.94)
 
     Weighted average number
      of common and common
      equivalent shares
      outstanding
      Basic and Diluted       8,387         7,246        7,742         7,226
 
     EBITDA                   5,079         4,179       14,376        11,938
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X95485584
 
 SOURCE  NuCo2 Inc.