United Capital Corp. Reports Third Quarter and Nine Month Results

2 November 2000

United Capital Corp. Reports Third Quarter and Nine Month Results

    GREAT NECK, N.Y.--Nov. 2, 2000--United Capital Corp. (ASE:AFP) today reported results for the three months ended September 30, 2000 (see Table attached). Total revenues for the period were $15,589,000 versus $14,339,000 during the three months ended September 30, 1999. Operating income during this period was $3,491,000 versus $3,096,000 for the comparable period in 1999, an increase of $395,000 or 13%. Other income for the quarter ended September 30, 2000 increased $2,246,000 compared to the corresponding quarter in 1999 primarily due to gains on the sale of marketable securities. Net income was $4,672,000 or $.99 per basic share for the third quarter of 2000 versus $2,916,000 or $.58 per basic share for the same period in 1999, representing a 71% increase in earnings per basic share over the prior year.
    Total revenues for the first nine months of 2000 were $46,757,000 resulting in operating income of $10,364,000, versus revenues of $43,227,000 and operating income of $8,122,000 during the comparable 1999 period. Net income for the nine month period was $12,174,000 or $2.57 per basic share in 2000 versus $9,078,000 or $1.80 per basic share in 1999, an increase in earnings per basic share of approximately 43%.
    In commenting on these results, A.F. Petrocelli, Chairman of United Capital Corp., noted that "real estate operations have continued to provide stable financial growth for the Company". Revenues from this segment increased for the ninth consecutive quarter compared to corresponding prior year periods. Operating income from real estate operations increased $259,000 or 8% and $1,514,000 or 17%, respectively, for the three and nine month periods ended September 30, 2000 versus the comparable 1999 periods. The increases in operating income for the three and nine month periods are primarily due to increased rental revenues, reduced interest expense resulting from continued mortgage amortization and lower depreciation expense associated with properties sold in 2000 and 1999.
    Operating profit from the engineered products segment increased approximately 20% and 27%, respectively, for the three and nine month periods ended September 30, 2000, compared to the corresponding 1999 periods. These increases are primarily the result of increased sales from this segment which rose 12% and 11%, respectively, during the three and nine month periods ended September 30, 2000. These results reflect management's continued commitment to grow this segment and pursue 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 per share data)

                           Three Months Ended   Nine Months Ended
                           9/30/00   9/30/99    9/30/00   9/30/99

Revenues                   $15,589   $14,339    $46,757   $43,227

Operating Income            $3,491    $3,096    $10,364    $8,122

Other Income                $4,191    $1,945    $10,210    $7,566

Provision for Income Taxes  $3,010    $2,125     $8,400    $6,610

Net Income                  $4,672    $2,916    $12,174    $9,078


Earnings Per Share:

  Basic                       $.99      $.58      $2.57     $1.80

  Diluted                     $.97      $.58      $2.56     $1.79

Weighted Average Shares:

  Basic                      4,731     5,014      4,733     5,040

  Diluted                    4,795     5,063      4,755     5,073