UNR Holdings Announces Third Quarter 2011 Financial Results

ORLANDO, Fla., Nov. 30, 2011 /PRNewswire/ -- UNR Holdings, Inc. (OTCBB: UNRH) ("UNR" or the "Company"), a U.S. corporation operating its business through a majority-owned (68.83%) subsidiary, Open Joint Stock Company 494 UNR, a construction, development and infrastructure services company organized and existing under the laws of the Russian Federation, with its principal offices located in Bronnitsy, a near suburb of Moscow, today announced its financial results for the third fiscal quarter ended September 30, 2011. Summary financial data is provided below:

Third Quarter 2011 Financial Highlights

• Revenues for the third quarter of 2011 increased by 20.4% year-over-year to $62.5 million, up from $51.9 million in the third quarter of 2010
  • Residential and commercial construction generated $56.6 million or 90.5% of total revenues
  • Road base materials generated $5.9 million or 9.5% of total revenues
• Net income attributable to the Company for the third quarter increased 26% year-over-year to $9.2 million, compared with $7.3 million for the third quarter of 2010
• Income before provision for income taxes for the third quarter increased 25% from $17.3 million, compared to $13.9 million in the same period last year

• Earnings per diluted share were $0.38 for the quarter, compared with diluted EPS of $0.30 achieved in the same period a year ago

Nine Months Financial Highlights

• Revenues for the nine months ended September 30, 2011 increased by 50.9% year-over-year to $138 million, up from $91.4 million for the same period in 2010
  • Residential and commercial construction generated $117 million or 84.8% of total revenues
  • Road base materials generated $21 million or 15.2% of total revenues
• Net income attributable to the Company for the nine months ended September 30, 2011 increased 57.7% year-over-year to $21.3 million, compared with $13.5 million for the nine months ended September 30, 2010
• Income before provision for income taxes for the nine months ended September 30, 2011 increased 55% from $39.7 million, compared to $25.6 million in the same period last year

• Earnings per diluted share were $0.87 for the nine months ended September 30, 2011, compared with diluted EPS of $0.55 achieved in the same period a year ago.

Results of Operations for the Third Quarter of 2011

Revenues

Total revenues for the three months ended September 30, 2011 increased to $62.5 million, or 20.4%, as compared to $51.9 million for the three months ended September 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.

Income from Operations

Income from operations increased to approximately $16.46 million for the three months ended September 30, 2011, from income of approximately $12.84 million for the comparable period in 2010, primarily due to increases in sales during the three month period ended September 30, 2011.

Net Income

Net earnings increased to 9.2 million for the three months ended September 30, 2011 as compared to net earnings of $7.3 million for the three months ended September 30, 2010. The Company attributes the increase in earnings primarily to an increase in sales during the three month period ended September 30, 2011.

Results of Operations for the Nine Months Ended September 30, 2011

Revenues

Total revenues for the nine months ended September 30, 2011 increased to $138.02 million, or 50.97%, as compared to $91.4 million for the nine months ended September 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.

Income from Operations

Income from operations increased by approximately $15.7 million, from $22.4 million for the nine months ended September 30, 2010 compared to $38.1 million for the nine months ended September 30, 2011, primarily due to the increase in sales.

Net Income

Net earnings increased to 21.3 million for the three months ended September 30, 2011 as compared to net earnings of $13.5 million for the three months ended September 30, 2010. The Company attributes the increase in earnings primarily to an increase in sales during the three month period ended September 30, 2011.

Liquidity and Capital Resources

We had a working capital surplus of approximately $69.7 million and stockholders' equity of approximately $54.2 million as of September 30, 2011. Cash and cash equivalents increased by approximately $25 million for the nine months ended September 30, 2011. The increase is primarily attributable to cash provided from operations (principally net earnings).

Trade and other receivables, net of allowances, were $14.7 million at September 30, 2011, compared to $36.5 million at December 31, 2010. The decrease is primarily due to the settlement by the court of the lawsuit with the Russian Ministry of Defense and full payment of the amount due. Inventories were $132.07 million at September 30, 2011, as compared to $96.1 million at December 31, 2010, due primarily to the increase in construction during the nine months ended September 30, 2011 to keep up with the increased real estate sales activity in Russia.

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]    

SOURCE UNR Holdings, Inc.