United Capital Corp. Reports Second Quarter and Six Month Results
GREAT NECK, N.Y.--Aug. 6, 2003--United Capital Corp. (ASE:AFP) today reported results for the second quarter and six months ended June 30, 2003. Net income was $3,457,000 or $.38 per basic share for the three months ended June 30, 2003 compared to $3,529,000 or $.38 per basic share for the same period in 2002. Total revenues during the quarter were $14,731,000 versus $15,103,000 during the second quarter of 2002. Operating income was $3,120,000 for the three months ended June 30, 2003 versus $3,218,000 for the three months ended June 30, 2002.Total revenues for the first six months of 2003 were $28,964,000 resulting in operating income of $5,859,000 versus revenues of $29,140,000 and operating income of $5,781,000 during the comparable 2002 period. Net income for the six month period was $6,953,000 or $.77 per basic share in 2003 versus $7,287,000 or $.79 per basic share in 2002.
In commenting on these results A.F. Petrocelli, Chairman of United Capital Corp., noted that, "this was a very exciting quarter for our company as well as for our stockholders". The Company's stock began the year at $35.40 per share and in June 2003 reached a new high of over $50.00 per share. As a result of the increase in the market price of the Company's stock over the past several months, the Board declared a two-for-one split of our common stock to stockholders of record as of the close of business on August 15, 2003. The Company also declared a special one-time cash dividend of $2.00 per common share to all stockholders of record as of June 20, 2003. In addition, in June, the Company was named to the Russell 2000 and Russell 3000 indexes which is a clear recognition of our accomplishments and should broaden the investment community's awareness of our Company.
Our engineered products segment continues to be profitable and contribute to the overall success of the Company. Operating income for the six months ended June 30, 2003 increased over 22% to $1,312,000 compared to $1,074,000 for the comparable period in 2002. Revenues for the six months ended June 30, 2003 of $16,482,000 remained relatively consistent with the prior year which was $17,261,000 for the six months ended June 30, 2002.
Revenues from the Company's real estate operations for the six months ended June 30, 2003 were $12,482,000 generating operating income of $6,162,000 compared to revenues of $11,879,000 and operating income of $5,922,000, for the comparable 2002 period. The Company has continued to position itself to fund future acquisitions and access growth opportunities in line with its long-term strategies and goals. This includes taking advantage of the current economic environment by divesting itself of seven properties during the first half of 2003 generating approximately $6,541,000 of cash inflow and yielding pre-tax property gains of $2,667,000, inclusive of pre-tax gains reflected as discontinued operations in the Company's Consolidated Statements of Income.
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. UNITED CAPITAL CORP. AND SUBSIDIARIES CONSOLIDATED FINANCIAL HIGHLIGHTS UNAUDITED (000's omitted except per share data)
Three Months Ended Six Months Ended
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6/30/03 6/30/02 6/30/03 6/30/02
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Revenues $ 14,731 $ 15,103 $ 28,964 $ 29,140
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Operating Income $ 3,120 $ 3,218 $ 5,859 $ 5,781
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Other Income $ 1,316 $ 2,140 $ 2,170 $ 5,028
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Income from Continuing
Operations Before Income
Taxes $ 4,436 $ 5,358 $ 8,029 $ 10,809
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Provision for Income Taxes $ 1,476 $ 2,137 $ 2,847 $ 4,139
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Income from Continuing
Operations $ 2,960 $ 3,221 $ 5,182 $ 6,670
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Income from Discontinued
Operations $ 497 $ 308 $ 1,771 $ 617
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Net Income $ 3,457 $ 3,529 $ 6,953 $ 7,287
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Earnings Per Share:
Basic Earnings Per Share:
Income from Continuing
Operations $ .33 $ .35 $ .57 $ .72
Income from Discontinued
Operations .05 .03 .20 .07
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Net Income Per Share $ .38 $ .38 $ .77 $ .79
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Diluted Earnings Per Share:
Income from Continuing
Operations $ .27 $ .33 $ .49 $ .67
Income from Discontinued
Operations .05 .03 .16 .06
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Net Income Per Share
Assuming Dilution $ .32 $ .36 $ .65 $ .73
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Weighted Average Shares:
Basic 9,023 9,174 9,026 9,209
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Diluted 10,791 9,920 10,658 9,915
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Dividends declared per share $ 2.00 $ 0 $ 2.00 $ 0
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Share and per share amounts, except dividends declared, have been retroactively adjusted to reflect the two-for-one stock split in August 2003.