UNR Holdings Announces Third Quarter 2010 Financial Results
Nov 23, 2010 6:55:00 AM
2010 GlobeNewswire, Inc.
•3Q10 Revenues increased 42.6% YoY to $33.1M
•3Q10 Net Income Attributable to UNR increased 146.9% YoY to $14.0M
•3Q10 EPS increased 147.8% YoY to $0.57
•EPS for the first nine months of 2010 increased 115.8% YoY to $0.82
ORLANDO, Fla., Nov. 23, 2010 (GLOBE NEWSWIRE) -- UNR Holdings, Inc. (OTCBB:UNRH) ("UNR" or the "Company"), a housing and commercial construction and development company, today announced its financial results for the third fiscal quarter ended September 30, 2010. Summary financial data is provided below:
Third Quarter 2010 Financial Highlights
•Revenues for the third quarter of 2010 increased by 42.6% year-over-year to $33.1 million, up from $23.2 million in the third quarter of 2009
-- Residential and commercial construction generated $29.4 million or 88.7% of total revenues
-- Road base materials generated $3.7 million or 11.3% of total revenues
•Net income attributable to the Company for the third quarter increased 146.9% year-over-year to $14.0 million, compared with $5.7 million for the third quarter of 2009
•Income before provision for income taxes for the third quarter increased 150.3% to $26.3 million, compared to $10.5 million in the same period last year
•Operating income and operating margin for the third quarter were $25.2 million and 76.1%, respectively, compared to $10.1 million and 43.6%, respectively, in the third quarter of 2009
•Earnings per diluted share were $0.57 for the quarter, compared with diluted EPS of $0.23 achieved in the same period a year ago
Nine Months Financial Highlights
•Revenues for the nine months ended September 30, 2010 increased by 84.5% year-over-year to $72.6 million, up from $39.4 million for the same period in 2009
-- Residential and commercial construction generated $61.7 million or 84.9% of total revenues
-- Road base materials generated $10.9 million or 15.1% of total revenues
•Net income attributable to the Company for the nine months ended September 30, 2010 increased 115.8% year-over-year to $20.1 million, compared with $9.3 million for the nine months ended September 30, 2009
•Income before provision for income taxes for the nine months ended September 30, 2010 increased 117.8% to $37.9 million, compared to $17.4 million in the same period last year
•Operating income and operating margin for the nine months ended September 30, 2010 were $34.8 million and 47.9%, respectively, compared to $16.1 million and 40.9%, respectively, for the same period in 2009
•Earnings per diluted share were $0.82 for the nine months ended September 30, 2010, compared with diluted EPS of $0.38 achieved in the same period a year ago
Alexey Kim, Chief Executive Officer of UNR, stated, "We believe that the impressive revenue and earnings growth we achieved during the third quarter reflect improving economic conditions, the payoff from our aggressive cost-control strategy over the last three quarters, and the exceptional progress we've made on the construction of our key projects. Square-footage sales for our two flagship housing developments more than tripled year-over-year during the quarter, and our cash position remains strong as we head toward the close of the year. We anticipate continued moderate growth in both the construction and infrastructure segments of our business as Russia continues to recover from the effects of the global economic downturn of the past two years. As one of Moscow's most longstanding and stable construction companies, we believe we are very well positioned to benefit from the upturn in Russia's real estate market."
PMR, a market intelligence firm focused on Central and Eastern Europe, recently forecasted that the Russian construction market will enter a full-fledged recovery period in 2011.
Results of Operations for the Third Quarter of 2010
Revenues
Revenues for the three months ended September 30, 2010 were $33.1 million as compared to $23.2 million for the three months ended September 30, 2009. The increase of $9.9 million, or 42.6%, was primarily due to a gradual pickup in demand for the apartments UNR constructs, which has mainly affected the Company's construction and development business in 2010. The Company also observed a marginal improvement in demand for its proprietary road base and slopes stabilization material Prudon-494, which UNR supplies to infrastructure projects in various parts of Russia. Residential and commercial construction generated $29.4 million or 88.7% of total revenues, and road base materials generated $3.7 million or 11.3% of total revenues.
Income from Operations
Operating income for the three months ended September 30, 2010 amounted to $25.2 million as compared to $10.1 million for the three months ended September 30, 2009. The increase of $15.1 million was primarily due to gradual improvement in the economic environment in which the Company operates and the corresponding improvement in its residential real estate customers' ability to pay for, and/or partly finance, the apartments UNR constructs. Operating expenses for the three-month period totaled $7.9 million as compared to $13.1 million for the same period a year ago.
Net Income
Net income attributable to UNR for the three months ended September 30, 2010 increased 146.9% to $14.0 million, as compared to $5.7 million for the three months ended September 30, 2009, due to the reasons enumerated above. Earnings per diluted share were $0.57 for the quarter, as compared to diluted EPS of $0.23 for the same period a year ago.
Results of Operations for the Nine Months Ended September 30, 2010
Revenues
Revenues for the nine months ended September 30, 2010 were $72.6 million as compared to $39.4 million for the nine months ended September 30, 2009. The increase of $33.2 million, or 84.5%, was primarily due to the same factors influencing sales growth for the three months ended September 30, 2010. Residential and commercial construction generated $61.7 million or 84.9% of total revenues, and road base materials generated $10.9 million or 15.1% of total revenues.
Income from Operations
Operating income for the nine months ended September 30, 2010 amounted to $34.8 million as compared to $16.1 million for the nine months ended September 30, 2009. The increase of $18.7 million, or 116.0%, was primarily due to the same factors influencing operating income growth for the nine months ended September 30, 2010. Operating expenses for the nine months ended September 30, 2010 totaled $37.8 million, up 62.7% from $23.2 million in the same period a year ago.
Net Income
Net income attributable to UNR for the nine months ended September 30, 2010 increased 115.8% to $20.1 million, as compared to $9.3 million for the nine months ended September 30, 2009, due to the reasons enumerated above. Earnings per diluted share were $0.82 for the nine months, as compared to diluted EPS of $0.38 for the same period in 2009.
Liquidity and Capital Resources
As of September 30, 2010, the Company's current assets were $197.4 million and current liabilities were $125.5 million. Cash and cash equivalents totaled $37.4 million as of September 30, 2010. The Company's shareholders' equity at September 30, 2010 was $48.3 million. The Company generated $22.4 million in cash from operating activities during the nine months ended September 30, 2010, as compared to $3.9 million used in operating activities for the nine months ended September 30, 2009. The Company used $1.8 million in cash for investing activities during the nine months ended September 30, 2010, as compared to $0.3 million for the nine months ended September 30, 2009. The Company used $3.3 million in cash for financing activities during the nine months ended September 30, 2010, as compared to $6.6 million for the nine months ended September 30, 2009.
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