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United Capital Corp. Reports First Quarter 2000 Results

5 May 2000

United Capital Corp. Reports First Quarter 2000 Results

    GREAT NECK, N.Y.--May 4, 2000--United Capital Corp. (ASE: AFP) today reported results for the first quarter of 2000 (see Table below). Total revenues for the period were $15,098,000 versus $14,175,000, during the first quarter of 1999. Operating income during this period was $3,149,000 versus $2,008,000 for the comparable period in 1999, an increase of $1,141,000 or 57%. Net income was $3,681,000 or $.78 per basic share for the three months ended March 31, 2000, versus $3,586,000 or $.70 per basic share for the same period in 1999.
    In commenting on these results, A.F. Petrocelli, Chair of United Capital Corp., noted that the Company's real estate operations have continued to consistently deliver impressive financial results. Revenues from real estate operations increased 6% from the prior year to $6,901,000 primarily due to increased percentage rent revenues, additional rents associated with new leases and the renewal of existing leases at higher rents. Operating income from this segment increased $744,000 or approximately 29% over the prior year period. This increase is principally due to the revenue increase discussed above and a reduction in real estate operating expenses. Lower depreciation expense associated with properties sold in 1999 also contributed favorably to this segment's operating results.
    Operating profit from the engineered products segment increased approximately 54% compared to the corresponding 1999 period primarily due to a 7% increase in revenues. This increase is the result of increased sales in the domestic and European automotive markets at Metex' Technical Products Division as well as higher sales generated by the Company's AFP Transformers subsidiary. Management remains committed to growing these businesses and has continued to aggressively pursue new sales opportunities, including new geographical markets for its existing products and new applications for its core technologies.

    

                United Capital Corp. and Subsidiaries
                  Consolidated Financial Highlights
                              Unaudited

(000's omitted except per share data)

                                      Three Months Ended
                                    3/31/00         3/31/99

Revenues                            $15,098         $14,175
      
Operating Income                     $3,149          $2,008

Other Income                         $3,087          $4,148

Provision for Income Taxes           $2,555          $2,570

Net Income                           $3,681          $3,586

Earnings Per Share:
 Basic                                 $.78            $.70

 Diluted                               $.77            $.70

Weighted Average Shares:
 Basic                                4,736           5,096
 Diluted                              4,774           5,140