United Capital Corp. Reports First Quarter Results
GREAT NECK, N.Y.--May 9, 2003--United Capital Corp. (ASE:AFP) today reported results for the quarter ended March 31, 2003 (see Table attached).Net income was $3,496,000 or $.77 per basic share for the three months ended March 31, 2003, versus $3,758,000 or $.81 per basic share for the same period in 2002. Total revenues for the period were $14,233,000 versus $14,305,000 during the first quarter of 2002. Operating income during this period remained relatively consistent at $2,738,000 for the three months ended March 31, 2003 versus $2,804,000 for the three months ended March 31, 2002.
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 maintain a strong balance sheet. At March 31, 2003, we had cash and marketable securities of over $73 million, working capital of over $66 million and over $110 million in stockholders' equity. In addition, we believe the inherent value and financial strength of the Company is clearly evidenced in our increasing stock price. Our stock began 2003 at $35.40 and in April 2003 reached a new high of over $44.00 per share. This represents an increase of over 24% in the market value of our stock since January 1, 2003."
Despite the struggling economy, the engineered products segment continues to contribute favorably to the overall success of the Company. Operating income from the engineered products segment increased over 116% during the first quarter of 2003, while revenues remained relatively consistent with the prior year at $8,156,000 for the three months ended March 31, 2003 versus $8,240,000 for the three months ended March 31, 2002. The significant increase in operating income is primarily the result of improved profit margins as well as a lower selling, general and administrative expenses.
Revenues from the Company's real estate operations for the three months ended March 31, 2003 were $6,077,000, generating operating income of $2,945,000. The long-term nature of the Company's leases, as well as continued mortgage amortization, continues to provide a solid financial basis for this segment. In addition, the Company has positioned itself to fund future acquisitions and assess growth opportunities in line with its long-term strategies and goals. For example, during the first quarter of 2003, the Company purchased an interest in the Holiday Inn Select in Quebec City, Canada. We believe that this investment, as well as our investment in the Sheraton Meadowlands Hotel and Conference Center, is an example of yet another opportunity that will further our financial growth and increase shareholder value.
Certain statements in this press release and other statements made by the Company or its representatives that are not strictly historical facts are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 that should be considered as subject to the many risks and uncertainties that exist in the Company's operations and business environment. The forward-looking statements are based on current expectations and involve a number of known and unknown risks and uncertainties that could cause the actual results, performance and/or achievements of the Company to differ materially from any future results, performance or achievements, expressed or implied, by the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, and that in light of the significant uncertainties inherent in forward-looking statements, the inclusion of such statements should not be regarded as a representation by the Company or any other person that the objectives or plans of the Company will be achieved. The Company also assumes no obligation to publicly update or revise its forward-looking statements or to advise of changes in the assumptions and factors on which they are based. See our 2002 Annual Report on Form 10-K for a discussion of risk factors that could impact our future financial performance and/or cause actual results to differ significantly from those expressed or implied by such statements.
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
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3/31/03 3/31/02
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Revenues $14,233 $14,305
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Operating Income $ 2,738 $ 2,804
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Other Income $ 854 $ 2,888
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Income from Continuing Operations
Before Income Taxes $ 3,592 $ 5,692
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Provision for Income Taxes $ 1,370 $ 2,099
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Income from Continuing Operations $ 2,222 $ 3,593
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Income from Discontinued Operations $ 1,274 $ 165
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Net Income $ 3,496 $ 3,758
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Earnings Per Share:
Basic Earnings Per Share:
Income from Continuing Operations $ .49 $ .78
Income from Discontinued Operations .28 .03
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Net Income Per Share $ .77 $ .81
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Diluted Earnings Per Share:
Income from Continuing Operations $ .42 $ .73
Income from Discontinued Operations .24 .03
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Net Income Per Share Assuming Dilution $ .66 $ .76
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Weighted Average Shares:
Basic 4,515 4,622
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Diluted 5,263 4,962
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