United Capital Corp. Reports First Quarter Results
GREAT NECK, N.Y.--United Capital Corp. (NYSE Amex: AFP) today reported results for the quarter ended March 31, 2009 (see Table attached).
Total revenues for the current quarter were $13.8 million, a decline of $4.9 million, compared to $18.7 million in the first quarter of 2008. Driven by the weakened economy and its consequences on the Company’s engineered products and hotel operations segments, operating income dropped $1.6 million, to $1.0 million, for the three months ended March 31, 2009. Net income for the current quarter was $1.1 million or $.13 per basic share versus net income of $2.7 million or $.32 per basic share for the comparable quarter of 2008.
A significant portion of the deterioration of operating income is attributable to the Company’s engineered products segment which experienced over a 50% decline in sales of its automotive product line from the first quarter of 2008. Announced plant closings by the automotive companies, the bankruptcy filing of Chrysler and the uncertainty regarding the future of General Motors, the segment’s largest customer, has had, and will continue to have, a significant adverse affect on this segment.
In commenting on these results, A.F. Petrocelli, Chairman of United Capital Corp., noted “as expected, the first quarter was extremely challenging due to the global recession and its effects on our manufacturing and hotel businesses. While there are still many uncertainties in the economy for the remainder of 2009, our core real estate business continues to generate significant cash flow and our overall financial position remains strong.”
At quarter end, the Company had $9.7 million in net unrealized losses on its marketable security portfolio which will be reflected as a component of accumulated other comprehensive loss in the Company’s consolidated balance sheet, on a net of tax basis.