United Capital Corp. Reports First Quarter Results
GREAT NECK, N.Y.--May 1, 20051, 2005--United Capital Corp. (ASE:AFP) today reported total revenues for the first quarter of 2005 of $15.3 million, a 5% increase from the same period of 2004. For the three months ended March 31, 2005, income from continuing operations and net income were $2.8 million and $2.9 million, respectively. On a per-share basis, both income from continuing operations and net income were $.31 per basic share.As of March 31, 2005, United Capital reported the following highlights:
-- Cash and marketable securities totaling more than $139 million or $15 per share,
-- Reported assets in excess of $212 million,
-- Working capital in excess of $135 million,
-- Mortgage obligations fell below $8 million with a debt-to-equity ratio of only 5% and
-- Stockholders' equity increased to more than $155 million or almost $17.00 per share.
"I am very pleased with the results of the first quarter as we start 2005," stated A.F. Petrocelli, Chairman of United Capital Corp. "These results demonstrate the continued strength of the Company's core businesses while maintaining the financial strength and liquidity of our balance sheet. We remain committed to our philosophy which has enabled us to grow United Capital to where it is today and continue to look for those opportunities which we believe will yield appropriate long-term returns."
The engineered products segment continues to provide favorable results for the three months ended March 31, 2005 with operating income increasing 7.5% from prior year levels on an 8.6% increase in revenue. This reflects the continued efforts put forth over the past several years to improve product offerings and reduce costs.
Revenues from the Company's real estate segment for the quarter were $5.2 million, generating over $2.5 million in operating income. Our portfolio of 161 properties has a net book value of under $32 million, substantially depreciated from its historical cost of nearly $100 million and well below today's fair market 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 2004 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
(In thousands, except per share data)
Three Months Ended
March 31,
(Unaudited)
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2005 2004
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Revenues $ 15,322 $ 14,597
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Operating income $ 2,565 $ 2,846
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Other income $ 1,800 $ 1,901
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Income from continuing operations
before income taxes $ 4,365 $ 4,747
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Income from continuing operations $ 2,846 $ 3,479
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Income (loss) from discontinued operations $ 19 $ (34)
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Net income $ 2,865 $ 3,445
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Basic earnings per share:
Income from continuing operations $ .31 $ .38
Income from discontinued operations -- --
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Net income per share $ .31 $ .38
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Diluted earnings per share:
Income from continuing operations $ .26 $ .32
Income from discontinued operations -- --
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Net income per share assuming dilution $ .26 $ .32
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Weighted average shares:
Basic 9,142 9,097
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Diluted 11,010 10,955
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