United Capital Corp. Reports Third Quarter and Nine Month Results
GREAT NECK, N.Y.--Nov. 1, 20050, 2005--United Capital Corp. (AMEX: AFP) today reported a 106.3% increase in income from continuing operations before income taxes for the quarter ended September 30, 2005, from that reported in the third quarter of 2004, on total revenues of $14.9 million in both periods. Income from continuing operations increased 54.0% to $4.8 million or $.55 per basic share for the third quarter of 2005, as compared to the same period of 2004. Net income for the current quarter was $5.7 million or $.65 per basic share.For the nine months ended September 30, 2005, income from continuing operations before income taxes increased 31.9% to $16.5 million, as compared to the same period of 2004. During this period, total revenues increased 2.6% to $46.0 million from $44.8 million for the comparable period of 2004. Income from continuing operations and net income for the current nine month period were $10.7 million and $11.8 million, respectively. On a per share basis (basic), income from continuing operations and net income were $1.19 and $1.32, respectively.
"I am very pleased with the results of our third quarter and nine months as we enter into the final quarter of 2005," stated A.F. Petrocelli, chairman of United Capital Corp. "The Company continues to be in an opportune situation to fund future acquisitions and assess growth opportunities that are in line with our long-term strategies and goals. As of September 30, 2005, we ended the quarter with more than $141 million or $16 per share in cash and marketable securities, working capital of $140 million and stockholders' equity in excess of $17.50 per share."
The 2004 nine month results include $10.0 million more in gains on the sale of real estate, net of tax, than 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.
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 Nine Months Ended
September 30, September 30,
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2005 2004 2005 2004
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Revenues $14,879 $14,869 $46,018 $44,838
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Operating income $3,021 $3,202 $8,691 $9,457
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Other income $4,425 $408 $7,761 $3,017
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Income from continuing operations
before income taxes $7,446 $3,610 $16,452 $12,474
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Provision for income taxes $2,622 $478 $5,765 $2,432
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Income from continuing operations $4,824 $3,132 $10,687 $10,042
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Income from discontinued operations $853 $4,962 $1,135 $11,346
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Net income $5,677 $8,094 $11,822 $21,388
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Basic earnings per share:
Income from continuing operations $.55 $.34 $1.19 $1.10
Income from discontinued operations .10 .55 .13 1.25
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Net income per share $.65 $.89 $1.32 $2.35
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Diluted earnings per share:
Income from continuing operations $.45 $.29 $.99 $.93
Income from discontinued operations .08 .47 .10 1.06
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Net income per share assuming
dilution $.53 $.76 $1.09 $1.99
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Weighted average shares:
Basic 8,737 9,118 8,965 9,109
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Diluted 10,641 10,676 10,846 10,763
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