United Capital Corp. Reports Third Quarter and Nine Month Results
2 November 1999
United Capital Corp. Reports Third Quarter and Nine Month Results
NEW YORK--Nov. 1, 1999--United Capital Corp. (ASE:AFP) today reported results for the three months ended September 30, 1999 (See Table attached). Total revenues for the period were $14,339,000 versus $13,883,000 during the comparable period in 1998. Net income during this period was $2,916,000 or $.58 per basic share versus $1,961,000 or $.38 per basic share during the comparable period in 1998, an increase of 53% in earnings per basic share.Total revenues for the first nine months of 1999 were $43,227,000 resulting in income from continuing operations of $9,078,000, or $1.80 per basic share versus revenues of $43,427,000 and income from continuing operations of $7,798,000, or $1.49 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 $8,600,000 or $.93 per basic share on an after tax basis. Net income for the nine month period was $9,078,000 or $1.80 per basic share in 1999 versus $12,647,000 or $2.42 per basic share in 1998.
In commenting on these results, A.F. Petrocelli, Chairman of United Capital Corp., noted that the Company's pretax income for the three months ended September 30, 1999 increased approximately 45% versus the comparable 1998 period. This increase is primarily attributable to the Company's real estate segment which included higher gains from the sale of real estate assets and an improvement in operating income of approximately $460,000 or 16% from the corresponding 1998 period, primarily as a result of increased revenues associated with properties acquired in 1998.
Revenues from the engineered products segment remained consistent for the three month period ended Sept. 30, 1999 versus the comparable 1998 period. Income from operations of this segment for the third quarter decreased approximately $300,000 as compared to the corresponding period in 1998 primarily due to continued price competition and amounts invested to expand the Company's product offerings and improve competitiveness. 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 Nine Months Ended
9/30/99 9/30/98 9/30/99 9/30/98
Revenues $14,339 $13,883 $43,227 $43,427
Operating Income $ 3,096 $ 3,069 $ 8,122 $ 9,132
Other Income $ 1,945 $ 400 $ 7,566 $ 4,502
Income from Continuing
Operations Before
Income Taxes $ 5,041 $ 3,469 $15,688 $13,634
Provision for Income Taxes $ 2,125 $ 1,508 $ 6,610 $ 5,836
Income from Continuing
Operations $ 2,916 $ 1,961 $ 9,078 $ 7,798
Income from Discontinued
Operations, net of tax $ 0 $ 0 $ 0 $ 4,849
Net Income $ 2,916 $ 1,961 $ 9,078 $12,647
Earnings Per Share:
Basic Earnings Per Share:
Income from Continuing
Operations $ .58 $ .38 $ 1.80 $ 1.49
Income from Discontinued
Operations, net of tax .00 .00 .00 .93
Net Income Per Basic
Common Share $ .58 $ .38 $ 1.80 $ 2.42
Weighted Average
Shares 5,013,647 5,203,447 5,039,843 5,219,116
Diluted Earnings
Per Share:
Income from Continuing
Operations $ .58 $ .37 $ 1.79 $ 1.46
Income from Discontinued
Operations, net of tax .00 .00 .00 .91
Net Income Per Common
Share Assuming Dilution $ .58 $ .37 $ 1.79 $ 2.37
Weighted Average
Shares Assuming
Dilution 5,063,286 5,306,291 5,072,525 5,339,136