United Capital Corp. Reports Record Fourth Quarter and Year End Results
GREAT NECK, N.Y.--Feb. 1, 20055, 2005--United Capital Corp. (AMEX:AFP) reported a 216% increase in net income for the quarter and a 150% increase in net income for the year ended December 31, 2004. Earnings jumped to $4.10 per basic share for the year and $1.75 during the last three months of 2004.For the three months ended December 31, 2004, income from continuing operations increased 377% to $15.5 million or $1.70 per basic share versus $3.2 million or $.36 per basic share for the same period last year. Total revenues during this period were $14.9 million, an increase of 8.6% over the comparable 2003 period. Net income increased to $16.0 million or $1.75 per basic share compared to $5.0 million or $.56 per basic share for the same period in 2003.
Year-to-date net income rose to $37.4 million or $4.10 per basic share versus $15.0 million or $1.65 per basic share in 2003. Revenue in 2004 increased to $59.1 million while income from continuing operations increased 146% to $25.1 million. For 2003, revenue and income from continuing operations were $54.8 million and $10.2 million, respectively.
"2004 was a historic year for United Capital with record results in income from continuing operations, net income and earnings per share," stated A.F. Petrocelli, Chairman of United Capital Corp. "These results were derived from improved results in each of our core businesses and from the sale of select assets, including our interest in Prime Hospitality which resulted in a gain of approximately $19 million during the fourth quarter of the year. In addition, I am pleased to report the achievement of the following key milestones as of December 31, 2004:
-- Net income reached an historical high of over $37 million or $4.10 per basic share,
-- The Company generated over $24 million in cash from the sale of real estate properties yielding gains of almost $19 million,
-- Cash and marketable securities grew by more than $30 million in 2004, totaling more than $139 million or $15 per share,
-- Reported assets exceed $212 million,
-- Working capital is in excess of $132 million,
-- Mortgage obligations fell below $9 million with debt-to-equity of less than 6% and
-- Stockholders' equity increased to $154 million or more than $16.85 per share."
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 2003 Annual Report on Form 10-K and the Registration Statement on Form S-3/A filed on December 10, 2004 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
(In thousands, except per share data)
Three Months Ended Year Ended
December 31, December 31,
(Unaudited) (Audited)
------------------ -----------------
2004 2003 2004 2003
--------- ------- ------- -------
Revenues $14,947 $13,767 $59,061 $54,768
======= ======= ======= =======
Operating income $ 2,482 $ 2,723 $11,282 $10,282
======= ======= ======= =======
Other income $21,082 $ 3,213 $24,099 $ 6,138
======= ======= ======= =======
Income from continuing operations
before income taxes $23,564 $ 5,936 $35,381 $16,420
======= ======= ======= =======
Income from continuing operations $15,501 $ 3,249 $25,149 $10,216
======= ======= ======= =======
Income from discontinued
operations $ 468 $ 1,802 $12,208 $ 4,748
======= ======= ======= =======
Net income $15,969 $ 5,051 $37,357 $14,964
======= ======= ======= =======
Basic earnings per share:
Income from continuing
operations $ 1.70 $ .36 $ 2.76 $ 1.13
Income from discontinued
operations .05 .20 1.34 .52
------- ------- ------- -------
Net income per share $ 1.75 $ .56 $ 4.10 $ 1.65
======= ======= ======= =======
Diluted earnings per share:
Income from continuing
operations $ 1.41 $ .31 $ 2.32 $ .96
Income from discontinued
operations .04 .17 1.13 .44
------- ------- ------- -------
Net income per share assuming
dilution $ 1.45 $ .48 $ 3.45 $ 1.40
======= ======= ======= =======
Weighted average shares:
Basic 9,129 9,093 9,114 9,061
======= ======= ======= =======
Diluted 10,982 10,608 10,818 10,677
======= ======= ======= =======
Cash dividends per share $ - $ - $ - $ 1.00
======= ======= ======= =======