Exhibit 99.1
Blue Rhino Fiscal First Quarter '04 Earnings Exceed Consensus
Highlights:
* Earnings per share doubles to $0.08 from fully-taxed $0.04 in prior year
* Cylinder exchange revenues increase 5% from prior year
* Over $10 million in debt paid down during quarter
* Company adopts new January 31 fiscal year end
* Company reiterates long-term EPS growth target of 25%
WINSTON-SALEM, N.C., Nov. 25 /PRNewswire-FirstCall/ -- Blue Rhino
Corporation (Nasdaq: RINO), a leading national provider of branded propane
cylinder exchange and complementary propane-fueled products, today reported
that diluted earnings per share for its fiscal first quarter doubled from
fully-taxed diluted earnings per share for the prior year fiscal first
quarter.
For the first quarter of fiscal 2004, Blue Rhino reported net revenues of
$49.3 million and net income of $1.5 million, or $0.08 per fully diluted
share. The consensus estimate as reported by First Call for the first quarter
was $0.07 per fully diluted share. This compares with net revenues of $54.8
million and pro forma fully taxed net income of $706,000 or $0.04 per fully
diluted share for the same period a year ago. In the year-ago quarter, Blue
Rhino had negligible income tax expense, compared to income tax expense
calculated at an effective income tax rate of 39% for the fiscal first quarter
ended October 31, 2003. The majority of the income tax expense recorded in the
current year first quarter will be deferred due to the Company's net operating
loss carryforwards. For GAAP reporting purposes, the Company reported net
income of $1.2 million or $0.07 per fully diluted share in last year's first
quarter with an effective tax rate of 1%.
In addition to reporting results for the first quarter ended October 31,
2003 in accordance with generally accepted accounting principles (GAAP), the
Company has included certain non-GAAP financial measures to enable investors
to make meaningful comparisons between fiscal periods. It also has included a
schedule, shown under "Supplemental Information" in the attached financial
tables, reconciling these non-GAAP financial measures with the comparable GAAP
financial results.
Net revenues for the first quarter totaled $49.3 million, as expected,
which was within the range of the Company's estimates of $48 - $50 million.
Net revenues for the same period a year ago totaled $54.8 million. The
difference in net revenues compared to the first quarter of fiscal 2003, was a
shift in product sales to a major retailer from the fiscal first quarter ended
October 31, 2003 to the quarters ending January 31, 2004 and April 30, 2004.
Cylinder exchange revenue increased 5% from the prior year to $38.8 million.
Consolidated gross margins improved to 26.7% from 24.6% for the first quarter
a year ago, largely a result of an increased mix of higher margin cylinder
exchange revenues and an increase in cylinder exchange margins.
"Blue Rhino's first-quarter performance again confirms the effectiveness
of the strategy we've put in place for long-term profitability and growth,"
said Billy D. Prim, chairman and chief executive officer. "We continue to
grow earnings and cylinder exchange revenues despite a decline in the mix of
cylinder upgrade transactions. Our cylinder exchange customers continue to
grow demonstrating that our strategy of switching refillers to exchange is
working. In addition, our performance came against extremely strong year-ago
results, where cylinder exchange revenues increased 75% from the prior year.
We also are benefiting from increased efficiencies thanks to our advanced,
direct-to-retailer delivery system.
"Looking ahead, we believe Blue Rhino is well positioned to capitalize on
the continuing growth in cylinder exchange within the overall propane refill
market, to leverage our strong retail relationships to cross-merchandise
cylinder exchange with the Company's complementary propane-related products,
and to leverage our established infrastructure," Prim said.
Continued Debt Reduction
Blue Rhino continued to strengthen its Balance Sheet in the fiscal 2004
first quarter. During the period, the Company used its strong cash flow to
pay down more than $10 million in bank debt, reducing the balance to
$36.6 million at October 31, 2003. The debt repayment allowed the Company to
substantially reduce interest costs to $655,000 for the quarter compared to
$1.3 million in the prior year.
Company Has Adopted New January 31 Fiscal Year End
The Company also announced a change in its fiscal year end from July 31 to
January 31. This change better correlates Blue Rhino's fiscal year with its
business cycle. The January 31 year-end also corresponds with that of the
Company's major retail customers. Blue Rhino's fiscal 2004 will include two
fiscal quarters and conclude on January 31, 2004. Fiscal 2005 will begin on
February 1, 2004.
Company Confirms Long-Term Growth Targets
Blue Rhino reiterated its double-digit annual revenue growth and 25%
annual earnings growth targets over the next three to five years.
"We are the market leader in our core cylinder exchange business. But
since exchange still represents less than 40% of the total $1 billion propane
refill market, we have plenty of room to grow," Prim said.
Updated Guidance for Fiscal 2004
Fiscal 2004 will include only two quarters due to the change in the fiscal
year ending on January 31, 2004. For the fiscal quarter ending January 31,
2004, the Company expects revenues in the range of $65 million to $68 million,
resulting in anticipated fully-taxed diluted earnings per share between $0.04
and $0.06.
Blue Rhino confirmed its twelve-month targets for the period ending July
31, 2004 of anticipated revenue growth of approximately 15%, and anticipated
net revenues in a range between $290 million and $300 million. Fully-taxed
earnings per share are expected to grow by approximately 25% to between $0.73
and $0.81.
Conference Call
Blue Rhino's conference call to discuss fiscal first quarter results is
scheduled for 10:30 a.m., Eastern Time, Tuesday, November 25, 2003. The call
will be available live and by replay over the Internet at www.streetevents.com
and at the Blue Rhino Web site at www.bluerhino.com.
About Blue Rhino
Blue Rhino is a leading national provider of branded propane cylinder
exchange and complementary propane-fueled products to consumers. Blue Rhino
cylinder exchange is offered at leading home improvement centers, mass
merchants, hardware, grocery, and convenience stores, with branded cylinder
displays at more than 28,000 retail locations in 48 states plus Puerto Rico.
Cylinders are delivered to retailers through a national network of both
independent and company-owned distributors. The Company's propane-fueled
products segment is focused on appliances such as grills, patio heaters and
mosquito eradication devices, which are sold through many of the same
retailers that offer Blue Rhino's branded cylinder exchange service. The
Company's common stock is quoted on The Nasdaq Stock Market, Inc. under the
symbol RINO. For further information regarding Blue Rhino, visit the Blue
Rhino Web site at www.bluerhino.com.
This press release contains forward-looking statements that relate to Blue
Rhino's plans, objectives and estimates. The terms "should," "believe,"
"plan," "expect," "anticipate," "estimate," "intend" and "project" and similar
words or expressions are intended to identify forward-looking statements.
These statements are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995 and speak only as of the date
of this release. Blue Rhino's business is subject to numerous risks and
uncertainties, including: that its significant retail relationships are
generally nonexclusive and terminable at will; that prices for its products
and services may decline due to competitive or other factors; that it relies
on a limited number of distributors; its ability to manage growth; its ability
to place Blue Rhino cylinder exchange at additional retail locations; its
ability to successfully defend certain lawsuits; its ability to protect its
intellectual property and strengthen its brand; its ability to obtain an
adequate supply of cylinders that comply with applicable guidelines; its
ability to mitigate the effects of high propane commodity prices successfully;
its ability to launch new products and services successfully and the effect of
new safety guidelines on consumer demand for cylinder exchange. These and
other risks and uncertainties detailed in its most recent Annual Report on
Form 10-K and in other filings with the Securities and Exchange Commission
could cause actual results and experience to differ materially from those
expressed or implied by any of these forward-looking statements. To the extent
permitted by applicable law, Blue Rhino makes no commitment to update any
forward-looking statement or to disclose any facts, events, or circumstances
after the date of this release that may affect the accuracy of any forward-
looking statement.
Blue Rhino Corporation
Condensed Consolidated Statements of Operations
For the Three Months Ended October 31, 2003 and 2002
(in thousands, except per share data)
Three Months Ended
October 31,
2003 2002
(unaudited)
Net revenues $49,269 $54,815
Operating costs and expenses:
Cost of sales 36,120 41,351
Selling, general and administrative 7,310 8,393
Depreciation and amortization 2,616 2,157
Total operating costs and expenses 46,046 51,901
Income from operations 3,223 2,914
Interest and other expenses (income):
Interest expense 655 1,256
Loss on investee -- 455
Other, net 117 (71)
Income before income taxes 2,451 1,274
Income taxes 956 15
Net income 1,495 1,259
Preferred dividends -- 71
Income available to
common stockholders $1,495 $1,188
Earnings per common share:
Basic $0.08 $0.08
Diluted $0.08 $0.07
Shares used in per share calculations:
Basic 17,842 14,121
Diluted 19,853 17,701
Supplemental Information
Three Months Ended
October 31,
2003 2002
(unaudited)
Net income $1,495 $1,259
Income taxes 956 15
Pre-tax earnings 2,451 1,274
Preferred dividends -- 71
Pre-tax income available to
common stockholders $2,451 $1,203
Pre-tax net income $2,451 $1,274
Pro forma income taxes at 39% rate 956 497
Pro forma net income
(non-GAAP for 2002) 1,495 777
Preferred dividends -- 71
Pro forma income available
to common stockholders
(non-GAAP for 2002) $1,495 $706
Pro forma fully taxed earnings
per share (non-GAAP for 2002) $0.08 $0.04
Cylinder Transactions 2,442 2,257
BLUE RHINO CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
As of October 31, 2003 and July 31, 2003
(In thousands)
October 31, July 31,
2003 2003
ASSETS (unaudited)
Current assets:
Cash and cash equivalents $2,553 $2,495
Accounts receivable, net 12,053 25,809
Inventories 19,643 20,372
Prepaid expenses and other
current assets 5,062 7,055
Deferred income taxes 2,266 2,266
Total current assets 41,577 57,997
Cylinders, net 48,509 50,917
Property, plant and equipment, net 38,098 37,765
Intangibles, net 62,843 62,862
Other assets 1,177 1,264
Total assets $192,204 $210,805
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $11,525 $19,193
Current portion of long-term debt
and capital lease obligations 6,144 6,433
Accrued liabilities 4,054 5,679
Total current liabilities 21,723 31,305
Long-term debt and capital lease
obligations, less current maturities 32,262 42,800
Deferred income taxes 4,767 4,232
Total liabilities 58,752 78,337
Stockholders' equity 133,452 132,468
Total liabilities and
stockholders' equity $192,204 $210,805
SOURCE Blue Rhino Corporation
-0- 11/25/2003
/CONTACT: Mark Castaneda, Chief Financial Officer of Blue Rhino
Corporation, +1-336-659-6755/
/Audio: http://www.streetevents.com /
/Web site: http://www.bluerhino.com /
(RINO)
CO: Blue Rhino Corporation
ST: North Carolina
IN: OIL
SU: ERN CCA ERP