United Capital Reports Second Quarter and Six Month Results
9 August 1999
United Capital Reports Second Quarter and Six Month Results
GREAT NECK, N.Y.--Aug. 6, 1999--United Capital Corp. (ASE:AFP) today reported results for the three months ended June 30, 1999 (Table to follow). Total revenues for the period were $14,713,000 which resulted in operating income of $3,018,000 versus revenues of $14,996,000 and operating income of $2,262,000 million during the comparable period in 1998. Income from continuing operations during this period was $2,576,000 or $.51 per basic share versus $3,423,000 or $.66 per basic share during the comparable period in 1998.Total revenues for the first six months of 1999 were $28,888,000 resulting in income from continuing operations of $6,162,000 or $1.22 per basic share versus revenues of $29,544,000 and income from continuing operations of $5,837,000 or $1.12 per basic share during the comparable 1998 period. In 1998, the company sold its antenna business, resulting in a pretax gain from discontinued operations of approximately $8.6 million or $.92 per basic share on an after tax basis. Net income for the six month period was $6,162,000, or $1.22 per basic share in 1999 versus $10,686,000 or $2.04 per basic share in 1998.
In commenting on these results, A.F. Petrocelli, Chairman of United Capital Corp., noted that the company's operating income for the three months ended June 30, 1999 increased 33% versus the comparable 1998 period. This increase is primarily attributable to non-recurring charges recorded in the comparable 1998 period and improved results from the company's real estate operations. For the quarter ended June 30, 1999, operating income from real estate operations increased $375,000 or 14% from the corresponding 1998 period primarily as a result of increased revenues associated with properties acquired in 1998.
Revenues from the engineered products segment decreased approximately 8% for the three month period ended June 30, 1999, versus the comparable 1998 period. The decline in revenues is principally due to continuing price competition and weakened demand for certain of the company's products. Cost of sales as a percentage of sales for the three months ended June 30, 1999 remained virtually unchanged when compared to the corresponding period in 1998 principally due to efficient material purchases and a commitment to cost reductions. Selling, general and administrative expenses of this segment were virtually unchanged during the quarter ended June 30, 1999 as compared to the same period in 1998. Savings from cost containment efforts in this area were offset by amounts invested to expand the company's product offerings and improve competitiveness including costs associated with the start up of operations in Mexico. Management remains committed to growing these businesses and is aggressively pursuing new sales opportunities, including new geographical markets for its existing products and new applications for its core technologies.
Certain of the statements in this press release are not historical facts and are "forward-looking statements" that involve risks and uncertainties, including general economic conditions, interest rates, competition, potential technological changes, and potential changes in customer spending and purchasing policies and practices. Although the company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the company or any other person that the objectives and plans of the company will be achieved.
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
(000's omitted except share
and per share data)
Three Months Ended Six Months Ended
6/30/99 6/30/98 6/30/99 6/30/98
Revenues $14,713 $14,996 $28,888 $29,544
Operating Income $ 3,018 $ 2,262 $ 5,026 $ 6,063
Other Income $ 1,473 $ 3,753 $ 5,621 $ 4,102
Income from Continuing
Operations Before
Income Taxes $ 4,491 $ 6,015 $10,647 $10,165
Provision for Income Taxes $ 1,915 $ 2,592 $ 4,485 $ 4,328
Income from Continuing
Operations $ 2,576 $ 3,423 $ 6,162 $ 5,837
Income from Discontinued
Operations, net of tax $ 0 $ 0 $ 0 $ 4,849
Net Income $ 2,576 $ 3,423 $ 6,162 $10,686
Earnings Per Share:
Basic Earnings Per Share:
Income from Continuing
Operations $ .51 $ .66 $ 1.22 $ 1.12
Income from Discontinued
Operations, net of tax .00 .00 .00 .92
Net Income Per Basic
Common Share $ .51 $ .66 $ 1.22 $ 2.04
Weighted Average
Shares 5,010,794 5,204,352 5,053,157 5,227,080
Diluted Earnings
Per Share:
Income from Continuing
Operations $ .51 $ .64 $ 1.21 $ 1.09
Income from Discontinued
Operations, net of tax .00 .00 .00 .91
Net income Per Common
Share Assuming
Dilution $ .51 $ .64 $ 1.21 $ 2.00
Weighted Average
Shares Assuming
Dilution 5,030,604 5,320,395 5,075,756 5,355,117