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 provider of petroleum product distribution
services, transportation logistics and emergency response services to
the trucking, construction, utility, energy, chemical and government
service industries, today announced that it has completed the
acquisition of Houston, Texas-based H & W Petroleum Company, Inc. ("H
& W") a marketer and distributor of lubricants, fuels and petroleum
products with operations in Houston, Lufkin, Freeport, Waco,
Waxahachie and Longview, Texas. Immediately prior to the closing, H &
W purchased the operating assets and limited inventory of a related
company, Harkrider Distributing Company, Incorporated ("Harkrider"), a
Houston-based company engaged in the marketing and distribution of dry
cleaning solvents, chemicals and petroleum products. The acquisition
closed on October 1, 2005.
The Company acquired all of the capital stock of H & W and
substantially all of the operating assets, inventory, accounts
receivable and related business of Harkrider. The original purchase
price of approximately $6.3 million, which was based on a multiple of
4.5 times projected annualized EBITDA (earnings before interest,
taxes, depreciation and amortization - a non-GAAP financial measure)
of approximately $1.4 million, was adjusted to $5.964 million at
closing by working capital and other closing adjustments. The purchase
price was paid with a combination of cash, the assumption of specified
liabilities and the issuance of $2.463 million of contingent two year
10% deferred payment promissory notes, which are subject to an
earn-out provision based on the performance of H & W after the
acquisition.
Also, on October 1, 2005, in connection with the acquisition of H
&W, the Company amended its credit facility with its primary lender,
Wachovia Bank, National Association, increasing the facility to $20
million, obtaining more favorable terms and extending the maturity to
September 26, 2007.
As previously announced, the Company issued $3.0 million in 10%
five-year redeemable Senior Secured Notes with a two year moratorium
on principal payments. Installments of six semi-annual principal
payments of $300,000 will commence on August 31, 2007, with a balloon
payment of $1.2 million at maturity on August 31, 2010. A portion of
the proceeds of these notes was used by the Company to fund the
approximately $1.5 million of the purchase price paid in cash at
closing. The balance of the proceeds will be used to develop the
operations of H & W, including its integration with the operations of
Shank Services, the Houston, Texas-based provider of commercial
fueling, lubricants distribution and heavy haul transportation
services that was acquired by the Company in February 2005, and for
other general working capital purposes. The Company also issued
360,000 four-year warrants to purchase shares of common stock at $2.28
per share in connection with the financing.
Richard E. Gathright, Chairman and CEO commented, "Completing the
H & W acquisition is an integral step in the execution of the
Company's strategic plan to expand and diversify its services and
product lines in current and new geographic markets. H & W is a major
petroleum products marketer and distributor, delivering nearly 5
million gallons of lubricants and 18 million gallons of fuel to over
3,800 customers and generating approximately $50 million in revenues
during its most recent fiscal year ended June 30, 2005. H & W has
recently become one of the largest distributors in North America of
Texaco lubricants and specialty oils for ChevronTexaco USA."
Gathright concluded, "The H & W and Shank Services acquisitions
have positioned the Company to become a dominant player in the
lubricants distribution industry as we continue the growth of our
commercial fueling, heavy haul transportation and other services. We
believe that these acquisitions will enable us to leverage our
combined strengths in customer service, product marketing and
operating efficiency, and provide a solid platform for future growth
in revenues, earnings and cash flows."
About Streicher Mobile Fueling, Inc.
The Company provides commercial mobile and bulk fueling; the
packaging, distribution and sale of lubricants; integrated out-sourced
fuel management; transportation logistics and emergency response
services. Our fleet of custom specialized tank wagons, tractor-trailer
transports, box trucks and customized flatbed vehicles deliver diesel
fuel and gasoline to customers' locations on a regularly scheduled or
as needed basis, refueling vehicles and equipment, re-supplying
fixed-site and temporary bulk storage tanks, and emergency power
generation systems; and distribute a wide variety of specialized
petroleum products, lubricants and chemicals to refineries,
manufacturers and other industrial customers. In addition, our fleet
of special duty tractor-trailer units provides heavy and ultra-heavy
haul transportation services over short and long distances to
customers requiring the movement of over-sized or over-weight
equipment and manufactured products. The Company conducts operations
from 27 locations serving metropolitan markets in California, Florida,
Georgia, Maryland, North Carolina, Pennsylvania, Tennessee, Texas,
Virginia and Washington, D.C. More information on the Company is
available at www.mobilefueling.com.
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 performance of the
acquired businesses, the planned diversification or expansion plans of
the Company, the anticipated cost savings or operating efficiencies
from integration of the acquired businesses and the potential for
further growth of the Company, by acquisition or otherwise, 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 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 and 2005.