United Capital Corp. Reports Fourth Quarter and 2001 Results
GREAT NECK, N.Y.--Feb. 19, 2002--United Capital Corp. (ASE:AFP) today reported results for the fourth quarter and year ended December 31, 2001 (see Table attached).Total revenues for the year were $61,596,000 versus $62,332,000 during 2000. Operating income during this period was $13,626,000 versus $14,255,000 in 2000. Net income was $18,972,000 or $4.05 per basic share in 2001 versus $18,278,000 or $3.86 per basic share in 2000. The results for the year ended December 31, 2001 include gains on the sale of real estate assets of $10,995,000 and net realized and unrealized gains from the sale of available-for-sale securities, derivative instruments and trading securities of $5,854,000 versus $5,269,000 and $4,513,000, respectively, for the comparable 2000 period.
Total revenues for the fourth quarter of 2001 were $14,075,000 resulting in operating income of $3,076,000, versus revenues of $15,575,000 and operating income of $3,891,000 during the comparable 2000 period. Net income for the three month period ended December 31, 2001 was $6,656,000 or $1.43 per basic share versus $6,104,000 or $1.29 per basic share in the fourth quarter of 2000, an increase in earnings per basic share of 11%.
In commenting on these results, A.F. Petrocelli, Chairman of United Capital Corp., noted that "the strength of the Company's diverse businesses continues to provide financial growth which has resulted in 2001 being the most profitable year in United Capital Corp.'s history. This is most evident in our net income of $18,972,000 and a record $4.05 in earnings per basic share. In addition, we continue to strengthen our balance sheet and at year-end have more than $96 million in cash and marketable securities and working capital of over $76 million. At December 31, 2001, total stockholders' equity was $96.3 million, representing a book value of $20.76 per share. We believe that this will allow us to be well-positioned to fund future acquisitions and capitalize on opportunities to grow our business".
Real estate operations continue to generate substantial cash flow for reinvestment into our lines of business. Operating income generated by this segment during 2001 was $13.9 million on $27.8 million in revenues. During the fourth quarter of this year the Company's real estate operations produced in excess of $6 million in revenues and $3.0 million in operating profit. The long-term nature of the Company's property leases as well as continuing mortgage amortization continues to provide the solid financial base for these results.
Operating income from the engineered products segment decreased $349,000 to $1,912,000, for the year ended December 31, 2001 as compared to 2000. Fourth quarter operating income from this segment also decreased from last year to $395,000. These decreases are primarily the result of lower net sales brought on by the slowing economy and compounded by the tragic events of September 11th. Management remains committed to growing this segment and has continued to aggressively pursue new sales opportunities, including new geographical markets for its existing products and new applications for its core technologies.
Certain of the statements in this press release are not historical facts and are "forward-looking statements" that involve risks and uncertainties, including general economic conditions, interest rates, competition, potential technological changes, and potential changes in customer spending and purchasing policies and practices. Although the Company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.
United Capital Corp. owns and manages real estate and through subsidiaries, provides engineered products to industrial and automotive markets worldwide.
UNITED CAPITAL CORP. AND SUBSIDIARIES
CONSOLIDATED FINANCIAL HIGHLIGHTS
(000's omitted except per share data)
Three Months Ended Year Ended
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(Unaudited)
12/31/01 12/31/00 12/31/01 12/31/00
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Revenues $14,075 $15,575 $61,596 $62,332
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Operating Income $3,076 $3,891 $13,626 $14,255
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Other Income $8,371 $1,253 $18,347 $11,463
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Provision (benefit)
for Income Taxes $4,791 ($960) $13,001 $7,440
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Net Income $6,656 $6,104 $18,972 $18,278
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Earnings Per
Share:
Basic $1.43 $1.29 $4.05 $3.86
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Diluted $1.36 $1.27 $3.86 $3.83
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Weighted Average
Shares:
Basic 4,666 4,728 4,685 4,731
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Diluted 4,895 4,813 4,914 4,773
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