Streicher Mobile Fueling 12/27 (MM) (NASDAQ:FUELW)
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From May 2019 to May 2024
STREICHER MOBILE FUELING, INC. (NASDAQ: FUEL and FUELW)
(the "Company"), a leading out-sourced refueling and fuel management
solution provider for vehicle and equipment fleets, announced today
that it filed Form 8-K/A related to the acquisition by its wholly
owned subsidiary, SMF Services, Inc., of Houston-based Shank Services,
a provider of commercial fueling and heavy haul transportation
services with operations in Houston, Dallas/Forth Worth, Austin and
San Antonio, Texas.
Total consideration for the Shank Services purchase was $7.7
million, consisting of $5.8 million paid in cash at the February 18,
2005 closing and $1.9 million to be paid contingent upon achieving
certain financial performance objectives during an eighteen month
period ending December 31, 2005 under a two year deferred payment
promissory note. The purchase price included the vehicles, trailers,
tanks, other operating equipment, business interests and related
intangibles of the Shank Services business, valued at $5.2 million,
based on a multiple of four times a $1.3 million annualized projected
EBITDA (projected earnings before interest, taxes, depreciation and
amortization - a non-GAAP measure) for the Shank Services business.
Purchase price adjustments of $480,000 primarily relating to pending
equipment purchases and the $1.9 million deferred payment promissory
note resulted in a net cash payment of $2.8 million for the operating
assets and related business. The Company paid an additional $3.0
million for the net working capital, including accounts receivable,
inventory and certain pre-paid items, which resulted in the total cash
consideration paid of $5.8 million. The Company did not assume any
material Shank Services liabilities or debt.
The Company believes that projected cost reductions from more
effective bulk fuel purchasing, lower insurance premiums, improved
delivery scheduling, decreased equipment rentals and better
utilization of operations personnel and equipment could add $500,000
in post integration annualized Shank Services business EBITDA to the
$1.3 million annualized projected EBITDA. These savings, together with
increasing sales volumes from a consolidated Company and Shank
Services business concentrated marketing and sales program, are
expected to provide a positive impact on future cash flows and
earnings, as early as the first quarter of the Company's 2006 fiscal
year commencing July 1, 2005.
Richard E. Gathright, Chairman and CEO commented, "Having
reorganized and refinanced our core mobile fueling business, the
Company has reaffirmed its corporate goals to expand services to our
more than 1,200 active customers and to broaden and diversify our
service portfolio within the energy and transportation logistics
sectors. We view the acquisition of the Shank Services business as an
important initial step in our strategy to add core complementary
businesses and accelerate our growth in Texas and adjoining states.
Since acquiring the Shank Services business in February, the
integration process has progressed smoothly and we would expect to
generate efficiency gains in fleet utilization and operating costs in
support of both existing and new geographical markets."
"This acquisition generated nearly $40 million in annual revenues
last year, consisting of commercial fuel sales for both off-road
applications such as construction, agriculture, marine and rail as
well as for over-the-road trucking operations. Furthermore, it gives
the Company an initial presence in the packaging and distribution of
petroleum lubricants and provides an entry into specialized
transportation and logistics for its construction customers. We now
have 18 units to serve the heavy haul oversized construction equipment
market, with a strong presence in Houston, Austin and Dallas. The
heavy haul operations which commenced in 2002 provide an excellent
opportunity for the Company to expand its services to refinery and
chemical plant operations."
Mr. Gathright concluded, "We are aggressively pursuing additional
acquisition opportunities, including commercial bulk fuel and
lubricant distributors and terminals; unattended card lock commercial
refueling stations; fleet credit card services; propane storage and
delivery services; mobile refueling operations; and heavy haul
transportation providers. Our experienced management team is committed
to building and operating a large and diverse organization which
serves the energy and transportation industries and generating
increasing equity value for our shareholders."
CONFERENCE CALL
As previously announced, management will host a conference call on
Tuesday, May 10, 2005 at 3:30 P.M. ET, to further discuss the aspects
of the Shank Services acquisition that closed on February 18, 2005.
The conference call will be available via teleconference by dialing
800-599-9795 (domestic) or 617-786-2905 (international), using Pass
Code 84259035. There will also be a web-cast over the Internet at
www.streetevents.com and www.mobilefueling.com. An audio digital
replay of the call will be available from Tuesday, May 10, 2005, at
6:30 P.M. ET until Midnight ET on Tuesday, May 17, 2005, by dialing
888-286-8010 (domestic) or 617-801-6888 (international), using Pass
Code #48833040. A web archive will be available for 30 days at
www.streetevents.com and www.mobilefueling.com.
About Streicher Mobile Fueling, Inc.
Streicher Mobile Fueling provides integrated out-sourced energy
and transportation logistics to the trucking, construction, energy,
chemical and government service industries. It offers commercial
mobile and bulk fueling, lubricant and fuel management services for
vehicle and equipment fleets, as well as short and long distance
specialized heavy and ultra-heavy hauling transportation and fueling
services. Its energy solutions and fueling alternatives which include
the use of the Company's proprietary electronic fuel tracking system
assist fleet managers in containing the cost of operating their
equipment, and alleviate security and environmental concerns
associated with off-site refueling and on-site storage. The Company
conducts operations from 20 locations serving metropolitan markets in
California, Florida, Georgia, Maryland, North Carolina, Pennsylvania,
Tennessee, Texas, Virginia and Washington, D.C.
Forward Looking Statements
This press release includes "forward-looking statements" within
the meaning of the safe harbor provision of the Private Securities
Litigation Reform Act of 1995. For example, predictions or statements
of belief or expectation concerning the future diversification or
expansion plans of the Company, anticipated cost savings from
integration of the Shank Services business and potential improvements
in the EBITDA of the Shank Services business are all "forward looking
statements" which should not be relied upon. Such forward-looking
statements are based on the current beliefs of the Company and its
management based on information known to them at this time. Because
these statements depend on various assumptions as to future events,
they should not be relied on by shareholders or other persons in
evaluating the Company. Although management believes that the
assumptions reflected in such forward-looking statements are
reasonable, actual results could differ materially from those
projected. There are numerous risks and uncertainties which could
cause actual results to differ from those anticipated by the Company,
including but not limited to those cited in the "Certain Factors
Affecting Future Operating Results" section of the Company's Form 10-K
for the year ended June 30, 2004.