United Capital Corp. Reports Second Quarter and Six Month Results
GREAT NECK, N.Y.--Aug. 1, 20050, 2005--United Capital Corp. (AMEX:AFP) today reported that income from continuing operations before income taxes for the quarter ended June 30, 2005 increased 12.7% to $4.7 million, from that reported in the second quarter of 2004. During this period, total revenues increased 2.9% to $15.9 million from $15.4 million in the same period of 2004. For the three months ended June 30, 2005, income from continuing operations and net income were $3.0 million and $3.3 million, respectively, and on a per share basis were $.34 and $.36, respectively.For the six months ended June 30, 2005, total revenues increased 3.9% to $31.1 million, as compared to the same period in 2004. Income from continuing operations and net income for the first half of 2005 were $5.9 million and $6.1 million, respectively. On a per share basis, income from continuing operations and net income were $.65 and $.68, respectively.
"We are very excited that during the quarter we completed the repurchase of almost 5% of our outstanding shares and have been added to the Russell 3000(R) and the new Russell Microcap(TM) indexes," stated A.F. Petrocelli, chairman of United Capital Corp. "The stock repurchase represents an excellent opportunity to enhance the value for our shareholders. The addition to the Russell indexes will increase United Capital's visibility among investors and institutions that rely on these indexes as a key part of their investment strategy."
The 2004 results include $6.0 million in gains on the sale of real estate, net of tax, above those recognized in the current year and the tax benefit from several charitable donations of real estate which were made by the Company last year.
As of June 30, 2005, United Capital ended the quarter with $130 million or $15 per share in cash and marketable securities, working capital of $127 million and stockholders' equity in excess of $17 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 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
(Unaudited)
(In thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
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2005 2004 2005 2004
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Revenues $15,892 $15,443 $31,139 $29,969
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Operating income $3,151 $3,450 $5,670 $6,255
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Other income $1,536 $708 $3,336 $2,609
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Income from continuing operations
before income taxes $4,687 $4,158 $9,006 $8,864
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Provision for income taxes $1,642 $703 $3,143 $1,954
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Income from continuing operations $3,045 $3,455 $5,863 $6,910
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Income from discontinued
operations $235 $6,394 $282 $6,384
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Net income $3,280 $9,849 $6,145 $13,294
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Basic earnings per share:
Income from continuing operations $.34 $.38 $.65 $.76
Income from discontinued
operations .02 .70 .03 .70
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Net income per share $.36 $1.08 $.68 $1.46
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Diluted earnings per share:
Income from continuing operations $.28 $.32 $.53 $.64
Income from discontinued
operations .02 .60 .03 .59
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Net income per share assuming
dilution $.30 $.92 $.56 $1.23
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Weighted average shares:
Basic 9,020 9,112 9,081 9,105
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Diluted 10,890 10,658 10,950 10,807
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