United Capital Corp. Reports Second Quarter and Six Month Results
GREAT NECK, N.Y.--Aug. 12, 2002--United Capital Corp. (ASE:AFP) today reported results for the second quarter and six months ended June 30, 2002 (see Table attached).Net income was $3,529,000 or $.77 per basic share for the three months ended June 30, 2002, versus $2,008,000 or $.43 per basic share for the same period in 2001, an increase of 79% in basic earnings per share. Total revenues for the quarter ended June 30, 2002 were $15,670,000 versus $15,646,000 during the second quarter of 2001. Operating income during this period was $3,731,000 versus $2,999,000 for the comparable period in 2001.
Net income for the six month period was $7,287,000 or $1.58 per basic share in 2002 versus $7,123,000 or $1.52 per basic share in 2001. Total revenues for the first six months of 2002 were $30,284,000 resulting in operating income of $6,810,000 versus revenues of $32,612,000 and operating income of $7,271,000 during the comparable 2001 period.
In commenting on these results, A.F. Petrocelli, Chairman of United Capital Corp., noted that, "we continue to position the Company to fund future acquisitions and assess growth opportunities that are in line with our long-term strategies and goals. In addition to the improved operating results for the quarter ended June 30, 2002, as noted by the 79% increase in basic earnings per share, the Company's strength is evidenced in our balance sheet with more than $106 million in cash, cash equivalents and marketable securities, $86 million in working capital and $188 million in total assets at June 30, 2002. The Company also has over $105 million in stockholders' equity, representing a book value per share of over $23.00 at June 30, 2002, an increase of 10.8% in book value per share since December 31, 2001."
Despite the weakened economy, the engineered products segment has contributed favorably to the overall success of the Company. Operating income from the engineered products segment during the first six months of 2002 was $1,074,000 on revenues of $17,261,000. Revenues for the three months ended June 30, 2002 were $9,021,000, an increase of 3.5% over the comparable 2001 period. Most notably, operating income for the quarter ended June 30, 2002 was $853,000, representing over a 100% increase over prior years comparable period. Management's commitment to improved product offerings, price competitiveness and cost reductions have contributed to the overall success of this segment.
Revenues from the Company's real estate operations for the six months ended June 30, 2002 were $13,023,000, generating operating income of $6,951,000. The Company also continues to take advantage of the current economic environment by divesting itself of certain assets. During the six months ended June 30, 2002, the Company divested itself of four properties generating approximately $6,408,000 of cash inflow and yielding $5,674,000 in property gains.
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 Six Months Ended
6/30/02 6/30/01 6/30/02 6/30/01
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Revenues $15,670 $ 15,646 $30,284 $ 32,612
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Operating Income $ 3,731 $ 2,999 $ 6,810 $ 7,271
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Other Income $ 2,140 $ 279 $ 5,028 $ 4,602
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Provision for Income
Taxes $ 2,342 $ 1,270 $ 4,551 $ 4,750
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Net Income $ 3,529 $ 2,008 $ 7,287 $ 7,123
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Earnings Per Share:
Basic $ .77 $ .43 $ 1.58 $ 1.52
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Diluted $ .71 $ .41 $ 1.47 $ 1.46
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Weighted Average Shares:
Basic 4,587 4,689 4,605 4,698
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Diluted 4,960 4,940 4,957 4,892
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