Dallas, Texas (August 31, 2011) – StockGuru Shines its Spotlight on 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, yesterday announced its financial results for the second quarter ended June 30, 2011.  The Company closed at $1.31, unchanged and trading in a fifty-two week range of $5.25 – 1.00.

  • 6 Month 2011 Revenues increased 91% YY to $75.5 M
  •  6 Month 2011 Net Income Attributable to UNR increased 94.8% YoY to $14.0M
  •  2Q11 Revenues increased 78.6% YoY to $35.6M
  •  2Q10 EPS decreased from 3.4 M to (321,684)

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.

 

To view this StockGuru Spotlight, please visit: http://stockguru.com/category/latest-spotlights/

To get free alerts on this and other similar stocks, please register here:

Get StockGuru Email Alerts

What is the StockGuru Spotlight?

Many companies covered in The StockGuru Spotlight have positive increases in both volume and share price. While this is not true in all cases, StockGuru strives to cover companies in The StockGuru Spotlight that are worth of our readers’ attention.

StockGuru looks for potential break-out candidates in The StockGuru Spotlight.  Many of these companies have had recent news and appear to be getting the attention of investors. StockGuru does not typically feature companies in The StockGuru Spotlight that are compensating StockGuru for this coverage.  There are times when StockGuru covers a stock in The StockGuru Spotlight that had previously compensated Stockguru. Where that is the case, a proper disclosure is included below.   StockGuru and its partners, employees and writers never hold shares, short positions, warrants or any other current position in a stock featured in The StockGuru Spotlight.

To feature a company in The StockGuru Spotlight please contact the Publisher at [email protected].  If our reader is a key person for a publicly traded company, StockGuru can consider that company for either a StockGuru Spotlight or a StockGuru Profile.  Please contact the StockGuru Publisher John Pentony at this email address:  [email protected].

Stockguru.com (“SG”) provides its members with the latest news, press releases, and trade alerts for all the companies highlighted on the site StockGuru.com. SG utilizes information believed to be reliable herein prepared all material. The information contained herein is not guaranteed by SG to be accurate, and should not be considered to be all-inclusive. The owner, publisher, editor and their associates are not responsible for errors and omissions.  SG encourages readers and investors to supplement the information in these reports with independent research and other professional advice. All information on featured companies is provided by the companies profiled, or is available from public sources and SG makes no representations, warranties or guarantees as to the accuracy or completeness of the disclosure by the profiled companies or the information contained herein. The companies that are discussed in this opinion have not approved the statements made in this opinion. This opinion contains forward-looking statements that involve risks and uncertainties. This material is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities. SG is not a licensed broker, broker dealer, market maker, investment banker, investment advisor, analyst or underwriter. Please consult a broker before purchasing or selling any securities viewed on http://www.Stockguru.com or mentioned herein.

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected”, “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and SG undertakes no obligation to update such statements. StockGuru is occasionally compensated for coverage.  When this is the case, SG clearly indicates this with a disclosure of all compensation received in the past and present.  Additionally SG also discloses any anticipated compensation in the future.  Compensation is typically in cash.  Sometimes a company pays SG in restricted shares. Pentony Enterprise and its associated companies does not take free trading shares for any reason at anytime. StockGuru is not a registered investment adviser or a broker-dealer. StockGuru makes no recommendation that the purchase of securities of companies profiled in this web site is suitable or advisable for any person, or that an investment in such securities will be profitable. In general, given the nature of the companies profiled and the lack of an active trading market for their securities, investing in such securities is highly speculative and carries a high degree of risk.

John Pentony, Publisher, Stockguru.com

Tel: +1 469 252 3031

e-mail: [email protected]