updated 11/23/2010 7:16:46 AM ET 2010-11-23T12:16:46

  • 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.

Conference Call and Webcast

Management will host a conference call to discuss these financial results today at 11:00 a.m. Eastern time (8:00 a.m. Pacific).

To participate in the call please dial (877) 941-4774, or (480) 629-9760 for international calls, approximately 10 minutes prior to the scheduled start time. Interested parties can also listen via a live Internet webcast, which can be found at http://ViaVid.net .

A replay of the call will be available for two weeks from 2:00 p.m. EST on November 23, 2010, until 11:59 p.m. EST on December 7, 2010. The number for the replay is (877) 870-5176, or (858) 384-5517 for international calls; the pass code for the replay is 4388302. In addition, a recording of the call will be available via the Company's website at http://www.unrholdings.com for one year.

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.

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