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UNR Holdings Announces Second Quarter 2012 Financial Results

Stocks in this article: UNRH

ORLANDO, Fla., Aug. 23, 2012 /PRNewswire/ -- UNR Holdings, Inc. (OTCBB: UNRH) ("UNR" or the "Company"), a leading commercial and residential real estate development and construction company operating principally in the city of Moscow and its suburban communities, today announced its financial results for the second quarter ended June 30, 2012.

Alexey Kim, CEO of UNR Holdings, stated, "We are pleased with our current profitability. The decline in top-line revenue for the first six months of 2012 is attributable to a temporary slowdown in sales caused by a change in realtor and enhanced by seasonality. Based on current market conditions, we expect stronger sales in the second half of the year."

Results of Operations for the Quarter Ended June 30, 2012

Revenues: Total revenues for the three months ended June 30, 2012 decreased to $15.0 million, or 57.9%, as compared to $35.6 million for the three months ended June 30, 2011. The decrease was a result of a sales decline the Company experienced mostly in its construction and development business during the quarter, offset by an increase in realized selling prices for apartments and commercial space.

Cost of Sales: Cost of sales decreased by $23.3 million, or over 71%, to $9.5 million for the three months ended June 30, 2012, from $32.8 million for the three months ended June 30, 2011, primarily due to a decrease in revenues from the Company's construction and development business. Cost of sales as a percentage of total revenues decreased primarily due to the increase in realized selling prices for apartments and commercial space while costs remained flat.

Income from Operations: Income from operations increased to approximately $4.7 million for the three months ended June 30, 2012 from a loss of approximately $1.1 million for the comparable period in 2011, primarily due to a decrease in the cost of sales percentage offset by a decrease in sales during the three-month period ended June 30, 2012.

Net Earnings: Net earnings increased to $3.6 million for the three months ended June 30, 2012 as compared to a net loss of $0.6 million for the three months ended June 30, 2011. The Company attributes the decrease in earnings primarily to a decrease in the cost of sales percentage during the three-month period ended June 30, 2012. Basic and diluted earnings per share totaled $0.10 for the second quarter of 2012, compared to a loss per share of $0.01 in the second quarter of 2011.

Results of Operations for the Six Months Ended June 30, 2012

Revenues: Total revenues for the six months ended June 30, 2012 decreased to $50.9 million, or 32.6%, as compared to $7.5 million for the six months ended June 30, 2011. The decrease was a result of a decline the Company experienced mostly in its construction and development business during the quarter, offset by an increase in realized selling prices for apartments and commercial space

Cost of Sales: Cost of sales decreased by $26.7 million, or over 55%, to $22.2 million for the six months ended June 30, 2012, from $48.9 million for the six months ended June 30, 2011. Cost of sales decreased substantially during the first two quarters of 2012 as compared to 2011 primarily due to a decrease in revenues from the Company's construction and development business. Cost of sales as a percentage of total revenues decreased primarily due to the increase in prices for apartments and commercial space while costs remained flat.

Income from Operations: Income from operations increased to approximately $5.0 million for the six months ended June 30, 2012, from income of approximately $21.6 million for the comparable period in 2011, primarily due to decreases in the cost of sales percentage and a decrease in overhead, offset by decreases in sales during the six-month period ended June 30, 2012.

Net Earnings: Net earnings increased to $21.9 million for the six months ended June 30, 2012 as compared to net earnings of $17.9 million for the six months ended June 30, 2011. The Company attributes the increase in earnings primarily to an increase in gross profit during the six-month period ended June 30, 2012 and a decrease in operating overhead. Basic and diluted earnings per share totaled $0.60 for the six months ended June 30, 2012, compared to $0.49 for the six months ended June 30, 2011.

Liquidity and Capital Resources

The Company had a working capital surplus of approximately $121.0 million and stockholders' equity of approximately $81.9 million as of June 30, 2012. Cash and cash equivalents were approximately $2.1 million for the six months ended June 30, 2012.

About UNR Holdings, Inc.

UNR Holdings is a holding company that has a 68% ownership in its subsidiary, 494 UNR. 494 UNR is a diverse construction company with more than 40 years of success serving the Russian construction market. The Company specializes in general and infrastructure construction services, such as designing and building multi-story apartment buildings for middle and upper middle class families, office buildings, highways, bridges, and production of a road base infrastructure construction product. While UNRH is involved in complex construction projects, the Company also assists the Russian government with infrastructure projects for oil and gas corporations, such as GAZPROM and TRANSNEFT.  494 UNR is one of the oldest and most established construction companies located and operating in Moscow and the Moscow area of the Russian Federation.

More detailed information on the housing projects is available at the UNR Holdings corporate website: http://www.unrholdings.com.

Forward-looking statements

The above news release contains forward-looking statements. The statements contained in this document that are not statements of historical fact, including but not limited to, statements identified by the use of terms such as "anticipate," "appear," "believe," "could," "estimate," "expect," "hope," "indicate," "intend," "likely," "may," "might," "plan," "potential," "project," "seek," "should," "will," "would," and other variations or negative expressions of these terms, including statements related to expected market trends and the Company's performance, are all "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. These statements are based on assumptions that management believes are reasonable based on currently available information, and include statements regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performances, and are subject to a wide range of external factors, uncertainties, business risks, and other risks identified in filings made by the company with the Securities and Exchange Commission. Actual results may differ materially from those indicated by such forward-looking statements. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.

Contact:

At the company:Serguei Melnik, Vice PresidentUNR Holdings, Inc.407-210-6541 info@unrhs.com

Investor relations:     Jon CunninghamRedChip Companies, Inc.1-800-733-2447, Ext. 107 info@redchip.com http://www.RedChip.com

SOURCE UNR Holdings, Inc.

Copyright 2011 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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