United Capital Corp. Reports Third Quarter and Nine Month Results
GREAT NECK, N.Y.--Nov. 7, 2002--United Capital Corp. (ASE:AFP) today reported results for the third quarter and nine months ended September 30, 2002 (see Table attached).Net income was $5,884,000 or $1.29 per basic share for the three months ended September 30, 2002, versus $5,193,000 or $1.11 per basic share for the same period in 2001, representing a 16% increase in basic earnings per share over the prior year. Total revenues for the period were $14,659,000 versus $14,686,000 during the third quarter of 2001. Operating income during this period increased over 10% to $3,416,000 for the three months ended September 30, 2002 from $3,097,000 for the three months ended September 30, 2001.
Total revenues for the first nine months of 2002 were $44,465,000 resulting in operating income of $9,785,000 versus revenues of $46,853,000 and operating income of $9,965,000 during the comparable 2001 period. Net income for the nine month period was $13,171,000 or $2.87 per basic share in 2002 versus $12,316,000 or $2.63 per basic share in 2001, a 9% increase in basic earnings per share over the prior year.
In commenting on these results, A.F. Petrocelli, Chairman of United Capital Corp., noted that, "despite the continued weakness in the economy, we continue to be profitable and generate strong cash flow. Net cash provided by operating activities amounted to $11,613,000 during the nine months ended September 30, 2002, representing an 11% increase from the comparable 2001 period. In addition, we continue to streamline operations and implement operational efficiencies to maximize shareholder value."
Operating income of the engineered products segment for the nine months ended September 30, 2002 increased 24% to $1,881,000 from prior year levels despite a 1.5% decline in revenues. This decline is principally due to lower sales in the Company's transformer and engineered component product lines, partially offset by higher sales in the Company's automotive product line. However, management's commitment to implementing cost containment measures, improving product offerings and price competitiveness during 2002 helped the Company minimize the effects of lower revenues generated during the year and increase operating income. This has put the Company in a position to successfully deal with the challenges of an economic downturn which is most notable in the results of the engineered products segment for the three months ended September 30, 2002. Operating income from this segment increased over 100% from $393,000 for the three months ended September 30, 2001 to $807,000 for the three months ended September 30, 2002. Revenues from this segment for the three months ended September 30, 2002 were $8,439,000, a 4% increase from the prior year's comparable period of $8,119,000.
Revenues from the Company's real estate operations for the nine months ended September 30, 2002 were $18,765,000, generating operating income of $9,714,000. The Company has continued to position itself to fund future acquisitions and assess growth opportunities that are in line with its long-term strategies and goals. This includes taking advantage of the current economic environment by way of divesting itself of certain assets. During the nine months ended September 30, 2002, the Company sold five properties generating $6,710,000 of cash inflow and yielding pre-tax property gains of $5,968,000, inclusive of pre-tax gains reflected as discontinued operations in the Company's Consolidated Statements of Income.
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.
TABLE FOLLOWS
UNITED CAPITAL CORP. AND SUBSIDIARIES
CONSOLIDATED FINANCIAL HIGHLIGHTS
UNAUDITED
(000's omitted except per share data)
Three Months Ended Nine Months Ended
9/30/02 9/30/01 9/30/02 9/30/01
--------- --------- --------- ---------
Revenues $ 14,659 $ 14,686 $ 44,465 $ 46,853
========= ========= ========= =========
Operating Income $ 3,416 $ 3,097 $ 9,785 $ 9,965
========= ========= ========= =========
Other Income $ 4,308 $ 5,374 $ 9,336 $ 9,976
========= ========= ========= =========
Income from Continuing
Operations Before
Income Taxes $ 7,724 $ 8,471 $ 19,121 $ 19,941
========= ========= ========= =========
Provision for
Income Taxes $ 1,992 $ 3,387 $ 6,367 $ 7,976
========= ========= ========= =========
Income from Continuing
Operations $ 5,732 $ 5,084 $ 12,754 $ 11,965
========= ========= ========= =========
Income from Discontinued
Operations, net
of tax $ 152 $ 109 $ 417 $ 351
========= ========= ========= =========
Net Income $ 5,884 $ 5,193 $ 13,171 $ 12,316
========= ========= ========= =========
Earnings Per Share:
Basic Earnings Per Share:
Income from Continuing
Operations $ 1.26 $ 1.09 $ 2.78 $ 2.55
Income from Discontinued
Operations, net
of tax .03 .02 .09 .08
--------- --------- --------- ---------
Net Income
Per Share $ 1.29 $ 1.11 $ 2.87 $ 2.63
========= ========= ========= =========
Diluted Earnings
Per Share:
Income from Continuing
Operations $ 1.17 $ 1.03 $ 2.58 $ 2.43
Income from Discontinued
Operations, net
of tax .03 .02 .08 .07
--------- --------- --------- ---------
Net Income Per
Share Assuming
Dilution $ 1.20 $ 1.05 $ 2.66 $ 2.50
========= ========= ========= =========
Weighted Average Shares:
Basic 4,570 4,678 4,593 4,691
========= ========= ========= =========
Diluted 4,890 4,967 4,944 4,920
========= ========= ========= =========