United Capital Corp (AFP, Financial) filed Quarterly Report for the period ended 2009-09-30.
UNITED CAPITAL is engaged in the business of investing in and managing real estate properties and the making of high-yield, short-term loans secured by desirable properties. Most real estate properties owned by them are leased under net leases pursuant to which the tenants are responsible for all expenses relating to the leased premises, including taxes, utilities, insurance and maintenance. United Capital Corp has a market cap of $178.5 million; its shares were traded at around $19.6 with and P/S ratio of 2.5. United Capital Corp had an annual average earning growth of 3.9% over the past 10 years. GuruFocus rated United Capital Corp the business predictability rank of 2-star.
For the nine month period ended September 30, 2009, total revenues were $42,168, compared to $55,944 for the same period of 2008. Operating income for the first nine months of 2009 was $4,544, a decrease of $3,751 compared to the corresponding 2008 period. Net income for the nine months ended September 30, 2009 was $3,946 or $.44 per basic share compared to a net loss of ($1,833) or ($.22) per basic share for the comparative 2008 period.
Selling, general and administrative expenses of the engineered products segment decreased $365 or 19.8% for the third quarter and $913 or 16.8% for the nine months ended September 30, 2009, compared to the corresponding periods of 2008. These decreases are the result of cost containment efforts which include reductions in payroll and payroll related expenses ($163 and $481 for the three and nine month period, respectively), freight charges ($47 and $158 for the three and nine month period, respectively) and professional fees ($28 and $145 for the three and nine month period, respectively). These reductions are part of the Company s efforts to streamline operations, control expenses and maximize cash flow in light of the significant decline in sales.
General and administrative expenses not associated with the manufacturing operations increased $300 for the third quarter and $535 for the first nine months of 2009, compared to such expenses incurred in the comparable 2008 periods. These increases are primarily attributable to the increase in net periodic pension expense ($122 and $397 for the three and nine month periods, respectively), which results from the significant decline in the fair value of the Company s pension assets in 2008, and an increase in professional fees ($202 and $302 for the three and nine month periods, respectively), primarily as a result of acquisition costs which are not capitalizable.
Net cash used in investing activities was $28,386 and $23,969 for the nine months ended September 30, 2009 and 2008, respectively. This change primarily results from cash used in a business acquisition, net of cash acquired, in August 2009 ($17,081) and from the purchase of notes receivable ($9,428) during the current year offset by decreases in the purchase of available-for-sale securities ($23,206) and acquisition of/additions to real estate assets ($12,824), less the release of proceeds held in escrow on the sale of real estate in 2008 ($15,000).
Net cash provided by financing activities was $2,423 for the nine months ended September 30, 2009, compared to net cash used in financing activities of $1,505 for the same period of 2008. This change results from a decrease in the purchase and retirement of common stock ($10,772) during the current year, as compared to 2008, offset by a reduction in proceeds from the exercise of stock options ($3,880), an increase in principal payments on mortgage obligations ($1,731), a reduction in the tax benefits related to the exercise of stock options ($733) and proceeds received from a mortgage obtained during 2008 ($500).
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UNITED CAPITAL is engaged in the business of investing in and managing real estate properties and the making of high-yield, short-term loans secured by desirable properties. Most real estate properties owned by them are leased under net leases pursuant to which the tenants are responsible for all expenses relating to the leased premises, including taxes, utilities, insurance and maintenance. United Capital Corp has a market cap of $178.5 million; its shares were traded at around $19.6 with and P/S ratio of 2.5. United Capital Corp had an annual average earning growth of 3.9% over the past 10 years. GuruFocus rated United Capital Corp the business predictability rank of 2-star.
Highlight of Business Operations:
Total revenues for the third quarter of 2009 were $14,734, a decrease of $3,811 or 20.6% from the comparable 2008 period, reflecting the impact the weakened economy has had on the Company s engineered products and hotel operations segments. The decline in total revenues was the main driver in the decrease in operating income which decreased $1,151 for the current quarter. Net income for the three months ended September 30, 2009 was $1,593 or $.18 per basic share compared to a net loss of ($7,033) or ($.83) per basic share for the comparative quarter of 2008.For the nine month period ended September 30, 2009, total revenues were $42,168, compared to $55,944 for the same period of 2008. Operating income for the first nine months of 2009 was $4,544, a decrease of $3,751 compared to the corresponding 2008 period. Net income for the nine months ended September 30, 2009 was $3,946 or $.44 per basic share compared to a net loss of ($1,833) or ($.22) per basic share for the comparative 2008 period.
Selling, general and administrative expenses of the engineered products segment decreased $365 or 19.8% for the third quarter and $913 or 16.8% for the nine months ended September 30, 2009, compared to the corresponding periods of 2008. These decreases are the result of cost containment efforts which include reductions in payroll and payroll related expenses ($163 and $481 for the three and nine month period, respectively), freight charges ($47 and $158 for the three and nine month period, respectively) and professional fees ($28 and $145 for the three and nine month period, respectively). These reductions are part of the Company s efforts to streamline operations, control expenses and maximize cash flow in light of the significant decline in sales.
General and administrative expenses not associated with the manufacturing operations increased $300 for the third quarter and $535 for the first nine months of 2009, compared to such expenses incurred in the comparable 2008 periods. These increases are primarily attributable to the increase in net periodic pension expense ($122 and $397 for the three and nine month periods, respectively), which results from the significant decline in the fair value of the Company s pension assets in 2008, and an increase in professional fees ($202 and $302 for the three and nine month periods, respectively), primarily as a result of acquisition costs which are not capitalizable.
Net cash used in investing activities was $28,386 and $23,969 for the nine months ended September 30, 2009 and 2008, respectively. This change primarily results from cash used in a business acquisition, net of cash acquired, in August 2009 ($17,081) and from the purchase of notes receivable ($9,428) during the current year offset by decreases in the purchase of available-for-sale securities ($23,206) and acquisition of/additions to real estate assets ($12,824), less the release of proceeds held in escrow on the sale of real estate in 2008 ($15,000).
Net cash provided by financing activities was $2,423 for the nine months ended September 30, 2009, compared to net cash used in financing activities of $1,505 for the same period of 2008. This change results from a decrease in the purchase and retirement of common stock ($10,772) during the current year, as compared to 2008, offset by a reduction in proceeds from the exercise of stock options ($3,880), an increase in principal payments on mortgage obligations ($1,731), a reduction in the tax benefits related to the exercise of stock options ($733) and proceeds received from a mortgage obtained during 2008 ($500).
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