U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities and Exchange Act of 1934
Date of Report (Date of earliest event reported): May 18, 2004
STREICHER MOBILE FUELING, INC.
(Exact name of registrant as specified in its charter)
Florida
(State or other jurisdiction of incorporation)
000-21825 65-0707824
(Commission File Number) (IRS Employer Identification No.)
Streicher Mobile Fueling, Inc.
800 W. Cypress Creek Rd., Suite 580
Fort Lauderdale, Florida 33309
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code: (954) 308-4200
ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
Streicher Mobile Fueling, Inc., the Registrant, issued a press release
on May 18, 2004, reporting operating results for the third fiscal quarter
ended March 31, 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
--------------------------------------------------------------------------------
CONTACT: RICHARD E. GATHRIGHT KEVIN MCGRATH
CHAIRMAN AND CHIEF EXECUTIVE OFFICER CAMERON ASSOCIATES, INC.
954-308-4200 212-245-8800
STREICHER MOBILE FUELING REPORTS RESULTS
FOR THIRD QUARTER ENDED MARCH 31, 2004
FT. LAUDERDALE, FL, MAY 18, 2004 - STREICHER MOBILE FUELING, INC. (NASDAQ: FUEL
and FUELW), an outsourcing value added refueling and fuel management service for
vehicle and equipment fleets, today announced the results for the three and nine
months ended March 31, 2004 as follows:
(All amounts in 000's, except per share data)
(Unaudited) (Unaudited)
3 Months Ended 9 Months Ended
3/31/04 3/31/03 3/31/04 3/31/03
Total Revenues $ 22,906 $ 19,469 $ 63,458 $ 53,834
Gross Profit $ 976 $ 889 $ 2,872 $ 3,026
Operating Income (loss)(1) $ (120) $ (272) $ 348 $ (591)
Net Loss $ (465) $ (501) $ (641) $ (1,256)
EBITDA (2) $ 211 $ 74 $ 1,346 $ 464
Basic and Diluted Net Loss Per
Share $ (0.06) $ (0.07) $ (0.09) $ (0.17)
Basic and Diluted Weighted
Average Shares Outstanding 7,248 7,220 7,248 7,217
Gallons of Fuel Delivered 13,315 11,496 40,332 34,863
(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
Since June 30, 2003, the Company has added, on an annualized basis,
approximately 8.0 million gallons of net new business, which would, if
sustained, result in an expected 55.0 million gallons
delivered for the year ending June 30, 2004, a 16% increase over the 47.5
million gallons delivered in the fiscal year 2003.
For the nine months ended March 31, 2004, the net margin per gallon was 9.3
cents per gallon compared to 11.5 cents per gallon in fiscal 2003. The Company
attributes the lower net margin per gallon this year to two factors: (1) a lower
average service charge per gallon; and (2) higher direct operating costs
(including personnel training and equipment relocation expense) arising from the
Company's expansion in existing markets and into new markets. The lower average
service charge per gallon was originally caused by aggressive price-cutting by a
financially distressed competitor, which has since discontinued business.
Management believes that this residual effect lingers because of steadily rising
fuel prices, which have put pressure on mobile fueling customers to control
costs by resisting service fee increases. The Company continues to believe,
however, that pricing for mobile fueling services will increase as existing and
potential customers better recognize that the Company's service fees represent a
cost savings to refueling alternatives.
Earnings before interest, taxes, depreciation and amortization ("EBITDA")
increased by over $135,000 and $875,000 in the three and nine-month periods
compared to a year ago. The Company's increased EBITDA in the current periods
reflects improvement in cash flow generated by the Company before debt service
payments and capital expenditures. EBITDA is a key indicator used by management
and the financial community to gauge the Company's financial performance and
utilization of its capital resources. Cash and cash availability under the
Company's $10 million bank line of credit also increased from $390,000 at June
30, 2003 to $3,512,000 at March 31, 2004.
Richard E. Gathright, Chairman, CEO and President of the Company commented,
"We continue to expand the business by adding new customers in our
existing markets and by opening up new geographical regions and contiguous
cities. During April 2004, the Company extended its operations in North
Carolina to additional cities and commenced service in the State of
Maryland. Our business is now being conducted from 17 locations in seven
states allowing us to offer multiple market service to an increasing
number of its customers. As this expansion program progresses, the Company
is pursuing business alliances to better utilize its asset base, absorb
fixed operating costs and leverage management expertise, including
providing logistical services to third parties for supply and distribution
of petroleum products. We are also actively looking at potential
acquisitions which would be complementary to our existing business, and
expand our product line and customer base."
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 resupplying 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 providing customers with customized fleet fuel data for
management analysis and tax reporting. The Company conducts operations from 17
locations serving metropolitan markets in California, Florida, Georgia,
Maryland, North Carolina, 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 financial performance 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, 2003.
* * * * * *
In accordance with General Instruction B.6 of Form 8-K, the information in
this Current Report on Form 8-K is being furnished under Item 12 and shall not
be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act
of 1934 ("Exchange Act") or otherwise subject to the liability of that section,
nor shall such information be deemed incorporated by reference in any filing
under the Securities Act of 1933 or the Exchange Act, regardless of the general
incorporation language of such filing, except as shall be expressly set forth by
specific reference in such filing.
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: May 18, 2004 STREICHER MOBILE FUELING, INC.
By: /S/RICHARD E. GATHRIGHT
-------------------------------
Richard E. Gathright, President