United Capital Corp. Reports First Quarter 2002 Results
GREAT NECK, N.Y.--May 9, 2002--United Capital Corp. (ASE:AFP) today reported results for the first quarter of 2002 (see Table attached).Total revenues for the period were $14,614,000 versus $16,966,000 during the first quarter of 2001. Operating income during this period was $3,079,000 versus $4,272,000 for the comparable period in 2001. Net income was $3,758,000 or $.81 per basic share for the three months ended March 31, 2002, versus $5,115,000 or $1.09 per basic share for the same period in 2001.
In commenting on these results, A.F. Petrocelli, Chairman of United Capital Corp., noted that "this quarter's financial results, together with effective strategic planning, have continued to solidify our financial position. We believe that the strength of our balance sheet puts us in an opportune position to fund future acquisitions and grow our business. This is evidenced by the fact that at March 31, 2002, we have more than $100 million in cash and marketable securities and working capital of approximately $85 million. In addition, total stockholders' equity was $102.4 million, representing a book value of $22.32 per share."
Real estate operations continue to generate substantial cash flow for reinvestment into our lines of business. Operating income generated from this segment for the three months ended March 31, 2002 was $3,425,000 on revenues of $6,374,000. The long-term nature of the Company's leases, as well as continued mortgage amortization, continues to provide a solid financial basis for this business.
Operating income from the engineered products segment decreased $486,000 for three months ended March 31, 2002, compared to the three months ended March 31, 2001, primarily due to lower net sales brought on by the slowing economy. Management has placed an emphasis on cost reductions and productivity improvements and will continue to closely monitor the operations of this segment.
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, 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
UNAUDITED
(000's omitted except per share data)
Three Months Ended
3/31/02 3/31/01
--------------- ---------------
Revenues $14,614 $16,966
=============== ===============
Operating Income $3,079 $4,272
=============== ===============
Other Income $2,888 $4,323
=============== ===============
Provision for Income Taxes $2,209 $3,480
=============== ===============
Net Income $3,758 $5,115
=============== ===============
Earnings Per Share:
Basic $.81 $1.09
=============== ===============
Diluted $.76 $1.06
=============== ===============
Weighted Average Shares:
Basic 4,622 4,707
=============== ===============
Diluted 4,962 4,839
=============== ===============