United Capital Corp. Reports Third Quarter And Nine Month Results

United Capital Corp. (NYSE Amex: AFP) today reported results for the three and nine months ended September 30, 2010.

Net income increased 159% to $10.2 million for the nine months ended September 30, 2010, versus the comparable 2009 period. Earnings per basic share were $1.13 for the year-to-date period, compared to $.44 in the same period in 2009. The increase in net income was fostered by a 43% increase in total revenues, for a total of $60.3 million in the first nine months of 2010, compared to $42.1 million for the same period of 2009. Operating income and income from continuing operations rose an impressive 106% and 115%, respectively, for the nine months ended September 30, 2010, from that reported in 2009.

For the third quarter of 2010, net income rose 124% to $3.6 million, from $1.6 million reported in the third quarter of 2009. Earnings per basic share were $.40 for the current three month period, compared to $.18 per basic share in the same 2009 period. Total revenues grew 37% to $20.2 million in the three months ended September 30, 2010, compared to the same three month period of 2009.

The Company’s hotel operations reported increased revenues of 50% and 95% in the three and nine month periods of 2010, respectively, versus similar intervals in 2009, resulting from the August 2009 acquisition of a hotel in Miami, Florida, while the Company’s engineered products segment reported revenue growth of 50% and 43%, respectively, in the comparable timeframe. Each of these segments were profitable in the 2010 periods, reversing losses in 2009.

In commenting on these results, A.F. Petrocelli, Chairman of United Capital Corp., noted “Timely acquisitions, the strength of our real estate portfolio, and improved manufacturing demand have once again lead to significant revenue and profit growth in 2010.”

Certain statements in this press release and other statements made by the Company or its representatives that are not strictly historical facts are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995 that should be considered as subject to the many risks and uncertainties that exist in the Company's operations and business environment. The forward-looking statements are based on current expectations and involve a number of known and unknown risks and uncertainties that could cause the actual results, performance and/or achievements of the Company to differ materially from any future results, performance or achievements, expressed or implied, by the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, and that in light of the significant uncertainties inherent in forward-looking statements, the inclusion of such statements should not be regarded as a representation by the Company or any other person that the objectives or plans of the Company will be achieved. The Company also assumes no obligation to publicly update or revise its forward-looking statements or to advise of changes in the assumptions and factors on which they are based. See our 2009 Annual Report on Form 10-K for a discussion of risk factors that could impact our future financial performance and/or cause actual results to differ significantly from those expressed or implied by such statements.

United Capital Corp. and its subsidiaries own and manage real estate and hotel properties and provide engineered products to industrial and automotive markets worldwide.

 

UNITED CAPITAL CORP. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Unaudited)

(In thousands, except per share data)
   
Three Months Ended Nine Months Ended
September 30, September 30,
2010   2009 2010   2009
 
Revenues $ 20,195 $ 14,719   $ 60,287 $ 42,124  
Operating income $ 2,971 $ 1,648   $ 9,258 $ 4,500  
Other income $ 809 $ 990   $ 3,986 $ 2,667  
Income from continuing operations before income taxes $ 3,780 $ 2,638   $ 13,244 $ 7,167  
Provision for income taxes $ 779 $ 1,020   $ 3,597 $ 2,690  
Income from continuing operations $ 3,001 $ 1,618   $ 9,647 $ 4,477  
Income (loss) from discontinued operations $ 574 $ (25 ) $ 584 $ (531 )
Net income $ 3,575 $ 1,593   $ 10,231 $ 3,946  
 
Basic earnings per share:
Income from continuing operations $ .33 $ .18 $ 1.07 $ .50
Income (loss) from discontinued operations   .07       .06   (.06 )
Net income per share $ .40 $ .18   $ 1.13 $ .44  
 
Diluted earnings per share:
Income from continuing operations $ .31 $ .16 $ .99 $ .46
Income (loss) from discontinued operations   .06       .06   (.06 )
Net income per share assuming dilution $ .37 $ .16   $ 1.05 $ .40  
 
Weighted average shares outstanding:
Basic   9,002   9,106     9,038   8,954  
Diluted   9,546   9,975     9,723   9,753  

Copyright Business Wire 2010

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