UNR Holdings Announces Second Quarter and Six Month 2011 Financial Results

ORLANDO, Fla., Aug. 30, 2011 /PRNewswire/ -- UNR Holdings, Inc. (OTCBB: UNRH) ("UNR" or the "Company"), a U.S. corporation operating its business through a majority-owned subsidiary organized and existing under the laws of the Russian Federation, today announced its financial results for the second quarter ended June 30, 2011.

The Company's principal business activity is the construction and development of multi-functional apartment residential complexes and commercial centers in high density and urban areas, principally in the city of Moscow and its suburbs. The Company also produces and supplies its patented road-base material, which it markets under the name "Prudon-494," to infrastructure projects in the Russian Federation.

Substantially all of the Company's business operations are located, and all of its revenues are earned, in the Russian Federation.

Summary financial data is provided below:

Second Quarter 2011 Financial Highlights

• Revenues for the second quarter of 2011 increased by 78.6% year-over-year to $35.6 million, up from $19.9 million in the second quarter of 2010
  • Residential and commercial construction generated $26.7 million or 71.1% increase over same period last year.
  • Road base materials generated $8.8 million or 103.2% increase over same period last year.

• Net income attributable to the Company for the third quarter decreased year-over-year to ($321,684), compared with $3.4 million for the second quarter of 2010

• Income before provision for income taxes for the third decreased year-over-year to ($819,562), compared with $6.4 million for the second quarter of 2010

• Earnings per diluted share were ($0.01) for the quarter, compared with diluted EPS of $0.14 achieved in the same period a year ago

6 Months Financial Highlights

• Revenues for the nine months ended June 30, 2011 increased by 91% year-over-year to $75.5 million, up from $32.3 million for the same period in 2010
  • Residential and commercial construction generated $60.3 million or 86.9% increase over same period last year.
  • Road base materials generated $15.1 million or 109.7% increase over same period last year.

• Net income attributable to the Company for the six months ended June 30, 2011 increased 94.2% year-over-year to $12.04 million, compared with $6.2 million for the six months ended June 30, 2010

• Income before provision for income taxes for the six months ended June 30, 2011 increased 92.2% to $22.3 million, compared to $11.6 million in the same period last year

• Earnings per diluted share were $0.49 for the six months ended June 30, 2011, compared with diluted EPS of $0.25 achieved in the same period a year ago

Results of Operations for the Second Quarter of 2011

Revenues

Total revenues for the three months ended June 30, 2011 increased to $35.6 million, or 78.6%, as compared to $19.9 million for the three months ended June 30, 2010. The increase was a result of a gradual pickup we experienced mostly in our construction and development business in 2011 and substantially higher prices for apartments and commercial space; no assurance can be given that this trend is sustainable.

Selling, general and administrative costs.

Selling, general and administrative costs increased by $3.1 million to approximately $3.9 million for the three months ended June 30, 2011, as compared to approximately $0.8 million for the three months ended June 30, 2010. This was primarily due to the anti-crisis measures our company implemented during the fiscal year 2010, such as a reduction in force and more efficient utilization of the remaining personnel, as well as the savings we realized on the costs of transportation, communications, security and lease of an additional office space offset by increases in professional fees and approximately $2.0 million in costs in setting up planned operations in the Middle East, which plan was abandoned by the Company in the second quarter of 2011.

Income from Operations

Income from operations decreased to a loss of approximately $1.1 million, from income of approximately $5.3 million for the three months ended June 30, 2011, primarily due to significant increases in cost of goods sold and selling, general and administrative expense during the three month period ended June 30, 2011

Net Income

Net earnings decreased to a loss of $.05 million for the three months ended June 30, 2011 as compared to net income of $5.1 million for the three months ended June 30, 2010. The Company contributes the decrease in earnings primarily to increases in cost of goods sold and selling, general and administrative expense during the three-month period ended June 30, 2011.

Results of Operations for the 6 Months Ended June 30, 2011

Revenues

Total revenues for the six months ended June 30, 2011 increased to $75.4 million, or 91.13%, as compared to $39.4 million for the six months ended June 30, 2010. The increase was a result of a gradual pickup we experienced mostly in our construction and development business in 2011 and substantially higher prices for apartments and commercial space; no assurance can be given that this trend is sustainable.

Selling, general and administrative costs.

Selling, general and administrative costs increased by $3.3 million to approximately $4.9 million for the six months ended June 30, 2011, as compared to approximately $1.5 million for the six months ended June 30, 2010. This was primarily due to the anti-crisis measures our company implemented during the fiscal year 2010, such as a reduction in force and more efficient utilization of the remaining personnel, as well as the savings we realized on the costs of transportation, communications, security and lease of an additional office space offset by increases in professional fees and approximately $2.0 million in costs in setting up planned operations in the Middle East, which plan was abandoned by the Company in the second quarter of 2011.

Income from Operations

Income from operations increased by approximately $12.0 million, from $9.5 million for the six months ended June 30, 2010 to $21.6 million for the six months ended June 30, 2011, primarily due to the increase in sales.

Net Income

Net earnings increased to $17.9 million for the six months ended June 30, 2011 as compared to $9.2 million for the six months ended June 30, 2010. The Company contributes the increase in earnings primarily to the substantial increase in sales offset by an increase in operating expenses.

Liquidity and Capital Resources

The Company had a working capital surplus of approximately $30.6 million and stockholders' equity of approximately $64.1 million as of June 30, 2011. Cash and cash equivalents increased by approximately $5.2 million for the six months ended June 30, 2011. The increase is primarily attributable to cash provided from the sale of marketable securities offset by the use of cash in operations.

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 housing and commercial construction developments. UNR also supplies and oversees the installation of its proprietary road and slopes stabilization material Prudon to infrastructure projects in various parts of Russia. 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:
UNR Holdings, Inc.
407-210-6541
[email protected]

Investor relations:
Todd Lorenze
CenterPoint Communications Group LLC
(386) 775-2020 x1001
[email protected]

SOURCE UNR Holdings, Inc.

21%

more press release views with 

Request a Demo