United Capital Corp. Reports Third Quarter and Nine Month Results

November 11, 2009 9:15 AM EST

GREAT NECK, N.Y.--(BUSINESS WIRE)-- United Capital Corp. (NYSE Amex: AFP) today reported results for the third quarter and nine months ended September 30, 2009 (see Table attached).

Total revenues were $14.7 million for the quarter ended September 30, 2009, generating operating income of $1.7 million. Net income for the three months ended September 30, 2009 was $1.6 million or $.18 per basic share. This compares to total revenues, operating income and net loss of $18.5 million, $2.8 million and ($7.0) million, respectively, for the corresponding quarter in 2008.

For the nine months ended September 30, 2009, total revenues were $42.2 million, a decline of $13.8 million from $56.0 million reported in the comparable period of 2008. Operating income was $4.5 million for the first nine months of 2009 while net income was $3.9 million or $.44 per basic share. Operating income and net loss for the nine months ended September 30, 2008 was $8.3 million and ($1.8) million, respectively.

The decline in revenues and operating income for both the quarter and nine month period are a reflection of the continued weakness in the economy and the impact it has had on our engineered products and hotel operating segments. The prior year results include $15.8 million and $16.2 million in impairment charges for the quarter and nine month period, respectively, on the Company's marketable security portfolio resulting from the sudden decline in the stock market and collapse of certain financial institutions in which the Company held an interest.

In commenting on these results, A.F. Petrocelli, Chairman of United Capital Corp., noted, "Although the operating results of our manufacturing and hotel businesses continue to be adversely impacted by the global recession, our real estate segment is strong and we continue to search for properties which meet our stringent investment criteria. We are very excited about the acquisition of the DoubleTree Miami Mart Hotel and Convention Center during the quarter. This represents the latest addition to this growing segment of our portfolio."

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 2008 Annual Report on Form 10-K and our current year Form 10-Q's 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,

                               2009        2008         2009        2008

Revenues                       $ 14,734    $ 18,545     $ 42,168    $ 55,994

Operating income               $ 1,663     $ 2,814      $ 4,544     $ 8,295

Other income (expense)         $ 990       $ (13,641 )  $ 2,667     $ (11,037 )

Income (loss) from continuing
operations before income       $ 2,653     $ (10,827 )  $ 7,211     $ (2,742  )
taxes

Provision (benefit) for        $ 1,027     $ (3,883  )  $ 2,708     $ (895    )
income taxes

Income (loss) from continuing  $ 1,626     $ (6,944  )  $ 4,503     $ (1,847  )
operations

(Loss) income from             $ (33    )  $ (89     )  $ (557   )  $ 14
discontinued operations

Net income (loss)              $ 1,593     $ (7,033  )  $ 3,946     $ (1,833  )

Basic earnings (loss) per
share:

Income (loss) from continuing  $ .18       $ (.82    )  $ .50       $ (.22    )
operations

Loss from discontinued           --          (.01    )    (.06   )    --
operations

Net income (loss) per share    $ .18       $ (.83    )  $ .44       $ (.22    )

Diluted earnings (loss) per
share:

Income (loss) from continuing  $ .16       $ (.82    )  $ .46       $ (.22    )
operations

Loss from discontinued           --          (.01    )    (.06   )    --
operations

Net income (loss) per share    $ .16       $ (.83    )  $ .40       $ (.22    )
assuming dilution

Weighted average shares
outstanding:

Basic                            9,106       8,502        8,954       8,396

Diluted                          9,975       8,502        9,753       8,396

    Source: United Capital Corp.

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