UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) November 15, 2004
STREICHER MOBILE FUELING, INC.
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(Exact name of registrant as specified in its charter)
FLORIDA 000-21825 65-0707824
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(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification Number)
800 W. Cypress Creek Rd., Suite 580 Fort Lauderdale, Florida 33309
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (954) 308-4200
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Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
|_| Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
Streicher Mobile Fueling, Inc., the Registrant, issued a press release on
November 15, 2004, reporting operating results for the first quarter ended
September 30, 2004. The text of that press release is as follows:
SMFStreicher Mobile Fueling, Inc.
800 West Cypress Creek Road, Suite 580
Fort Lauderdale, Florida 33309
NEWS RELEASE
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Contact: Richard E. Gathright Peter Seltzberg
Chairman and Chief Executive Officer Cameron Associates, Inc.
954-308-4200 212-245-8800
STREICHER MOBILE FUELING, INC. REPORTS RESULTS
FOR THE FIRST QUARTER ENDED SEPTEMBER 30, 2004
Ft. Lauderdale, FL, November 15, 2004 - STREICHER MOBILE FUELING, INC. (NASDAQ:
FUEL and FUELW), a refueling and fuel management outsourcing solution for
vehicle and equipment fleets, today announced results for the first quarter
ended September 30, 2004, as follows:
(All amounts in thousands of dollars, except share and volume data)
For the Three Months Ended
--------------------------
(Unaudited)
Increase Increase
-------- --------
Selected Income Statement and Financial Data: 9/30/2004 9/30/2003 (Decrease) (Decrease)
--------------------------------------------- --------- --------- ---------- ----------
Total revenues 28,909 19,417 9,492 49%
Gross profit 1,800 822 978 119%
Operating income 1 677 488 189 39%
Net income1 295 206 89 43%
EBITDA 1, 2, 5 992 824 168 20%
Basic net income per share 0.04 0.03 0.01 33%
Diluted net income per share 0.04 0.03 0.01 33%
Basic Weighted average shares outstanding 7,331,945 7,248,305 83,640 1%
Diluted Weighted average shares outstanding 7,869,780 7,504,502 365,278 5%
Depreciation and amortization 3 315 334 (19) (6)%
Gallons sold in thousands 15,153 13,273 1,880 14%
Average net margin per gallon (in cents) 4 13.7 8.3 5.4 65%
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Selected Balance Sheet Data: 9/30/2004 6/30/2004
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Total assets 22,459 20,018 2,441 12%
Total liabilities 16,721 14,670 2,051 14%
Total shareholders' equity 5,738 5,348 390 7%
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1 Includes $757,000 gain on extinguishment of debt during the first quarter
ended September 30, 2003
2 Earnings before interest, taxes, depreciation and amortization
3 Depreciation and amortization included in cost of sales was $271,000, and
$286,000 for the respective periods noted
4 Net margin per gallon equals Gross profit plus cost of sales depreciation and
amortization divided by number of gallons sold
5 Non-GAAP measure EBITDA Reconciliation Table:
3 Months Ended
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9/30/2004 9/30/2003
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Net income 295 206
Add back:
Interest expense 244 193
Non-cash interest expense 138 91
Depreciation and amortization:
Cost of sales 271 285
Sales, general, and administrative 44 49
EBITDA 992 824
Revenues increased $9.5 million, or 49%, in the three months ended September 30,
2004 compared to September 30, 2003. This increase was principally due to a 14.2
% increase in net new business (defined as the incremental change in the fuel
volume delivered and sold) and higher fuel prices which averaged 40 cents more
per gallon than in the prior year. The Company sold 15.2 million gallons of fuel
in the quarter ended September 30, 2004, compared to the 13.3 million gallons in
the quarter ended September 30, 2003, a 1.9 million gallon increase of net new
business. The net new business resulted from the addition of new accounts as
well as expanded market penetration. The higher fuel prices were directly
attributable to the volatility of world fuel markets and economic conditions,
including higher crude oil prices and greater global fuel demand.
In the quarter ended September 30, 2004, the Company's gross profit, operating
income and net income increased over the same period in the prior year by
$978,000, $189,000 and $89,000, respectively. These improvements reflect a
higher net margin per gallon and the 14.2% increase in net new business as
discussed below. The operating profit for the quarter ended September 30, 2003
included a $757,000 gain on extinguishment of debt which did not recur in the
current quarter. The Company's earned net income per share of $0.04 in the
current quarter, compared to $0.03 in the same period last year, and a loss of
$0.01 in the quarter ended June 30, 2004.
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Earnings before interest, taxes, depreciation and amortization ("EBITDA") for
the quarter ended September 30, 2004 improved by $168,000, or 20%, to $992,000
from $824,000 reported in the same period last year (see Non-GAAP measure EBITDA
Reconciliation Table set forth above). This EBITDA increase primarily related to
the higher operating profit and volume sold compared to the prior year quarter
ended September 30, 2003. The prior year first quarter EBITDA included the
$757,000 gain on extinguishment of debt. Excluding this non-recurring item, the
Company's EBITDA for the September 2003 quarter would have been $67,000. (EBITDA
is a key indicator used by management and the financial community to gauge
financial performance of the actual operations of a business without considering
the impact of non-cash charges for equipment aging, debt financing expenses, and
income taxes. EBITDA isolates actual financial performance of operations
independent of the utilization of its capital resources, level of debt financing
and the tax impact on the business operations.)
The Company's mobile fueling services business continues to be largely dependent
on the number of gallons of fuel sold and the net margin per gallon achieved
("net margin per gallon" is defined as gross profit plus depreciation included
in cost of sales divided by gallons sold). For the three months ended September
30, 2004, the Company's net margin per gallon improved to 13.7 cents per gallon
compared to 11.9 and 8.3 cents per gallon for the fourth quarter ended June 30,
2004 and the first quarter ended September 30, 2003, respectively. This increase
resulted from the continued market acceptance of overall higher margins for the
services provided by the Company; the 1.9 million gallons of net new business;
and the emergency response mobile fueling and delivery services related to the
four hurricanes that affected Florida and the southeastern United States during
August and September 2004. Although the recent trend in higher margins for the
Company's services is positive, the net margin of 13.7 cents per gallon realized
in the current quarter is still lower than the 14.6 cent per gallon net margin
achieved in the first quarter of the 2003 fiscal year (and prior to the Company
first experiencing the impact of a now defunct competitor's aggressive pricing
and price-cutting tactics). There is no assurance that the trend of improved net
margins will continue in the future or that margins will not decrease as a
result of increased competition or customer resistance to higher prices for the
Company's services.
Richard E. Gathright, Chairman and CEO commented, "We are extremely pleased to
report net income of $295,000 for our first quarter of fiscal 2005. While the
Company reported earnings of $209,000 for the same quarter in 2003, it is
important to note that the 2003 quarter included a $757,000 gain on the
extinguishment of equipment debt. The Company's first quarter 2004 performance
shows strong improvement over the same period in 2003 in all financial
indicators, and is a continuation of the positive trend reported in the fourth
quarter of fiscal 2004".
Mr. Gathright added, "We have continued our penetration into new markets, while
expanding our mobile fueling and fuel management services in historical markets,
with improved utilization as we deliver more fuel. Our strengthened financial
position is now allowing the Company to focus attention and resources on
possible acquisitions and other strategic growth opportunities to add
shareholder value."
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CONFERENCE CALL
As previously announced, management will host a conference call on Wednesday,
November 17, 2004 at 2:00 PM ET, to discuss the Company's results for the three
months ended September 30, 2004. The conference call will be available via
teleconference by dialing 800-638-4817 (domestic) or 617-614-3943
(international), using confirmation code 39933831. There will also be a web-cast
over the Internet at www.streetevents.com, www.fulldisclosure.com, and
www.mobilefueling.com. An audio digital replay of the call will be available
from November 17, 2004, 4:00 p.m. ET until November 24, 2004, 11:59 p.m. ET by
dialing 888-286-8010 (domestic) or 617-801-6888 (international), using
confirmation code 72253589. A web archive will be available for 30 days at
www.mobilefueling.com.
ABOUT STREICHER MOBILE FUELING, INC.
The Company provides mobile fueling and fuel management out-sourced services,
primarily to businesses operating fleets of vehicles and equipment. Its
specialized truck fleet delivers fuel to customers' locations, refueling
vehicles and equipment and/or re-supplying storage facilities at competitive
service fees and fuel prices. The Company's proprietary electronic fuel tracking
system is used to measure, record, and track fuel dispensed to each vehicle and
tank fueled at a customer location allowing verification of the amount and type
of fuel delivered and sold, and providing customers with customized fleet fuel
data for management analysis and reporting. The Company conducts operations from
17 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 expansion plans of the Company are "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.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: November 18, 2004 STREICHER MOBILE FUELING, INC.
By: /s/ RICHARD E. GATHRIGHT
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Richard E. Gathright, President
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