SOURCE: UNR Holdings, Inc.

May 17, 2012 07:01 ET

UNR Holdings Announces First Quarter 2012 Financial Results

ORLANDO, FL--(Marketwire - May 17, 2012) - UNR Holdings, Inc. (OTCBB: UNRH) ("UNR" or the "Company"), a leading commercial and residential real estate development and construction company, operating principally in the city of Moscow and its suburban communities, and also a provider of infrastructure construction services for government oil and gas projects in the Russian Federation, today announced its financial results for the quarter ended March 31, 2012.

UNR Holdings CEO Alexey Kim stated, "Although we experienced a drop in first quarter revenue year-over-year, our expectations for the current quarter and the balance of 2012 are high. I believe that UNR is positioned to achieve significant business and financial growth throughout 2012."

Results of Operations for the Quarter Ended March 31, 2012

Revenues

Total revenues for the three months ended March 31, 2012 decreased to $35.9 million, or 11%, as compared to $39.9 million for the three months ended March 31, 2011. The decrease was a result of a sales decline we experienced mostly in our construction and development business in the quarter, offset by an increase in realized selling prices for apartments and commercial space.

Cost of Sales

Cost of sales decreased by $3.3 million, or over 26%, to $12.7 million for the three months ended March 31, 2012, from $16.1 million for the three months ended March 31, 2011. Cost of sales decreased substantially during the first quarter of 2012 as compared to 2011 primarily due to a decrease in related revenues from our construction and development business. Cost of sales percentage decreased primarily due to the increase in realized selling prices for apartments and commercial space while costs remained constant.

Selling, General and Administrative Expenses

Selling, general and administrative costs increased by $0.27 million to approximately $1.24 million for the three months ended March 31, 2012, as compared to approximately $.96 million for the three months ended March 31, 2011. This was primarily due to increases in professional fees and administrative overhead.

Income from Operations

Income from operations decreased to approximately $21.8 million for the three months ended March 31, 2012, from income of approximately $22.7 million for the comparable period in 2011, primarily due to a decrease in sales during the three month period ended March 31, 2012, offset by a decrease in the cost of sales percentage.

Other Income (Expense)

Other income was approximately $1 million for the three months ended March 31, 2012, as compared with $.64 million for the three months ended March 31, 2011, primarily due to an increase in interest income, net of a foreign currency transaction loss of approximately $.25 million in 2011.

Provision for Income Taxes

Provision for income taxes decreased to $4.58 million for the three months ended March 31, 2012 as compared to $4.64 million for the three months ended March 31, 2011. The decrease is primarily due to lower net income during the three months ended March 31, 2012.

Net Earnings

Net earnings decreased to $18.3 million for the three months ended March 31, 2012 as compared to net earnings of $18.5 million for the three months ended March 31, 2011. The Company attributes the decrease in earnings primarily to a decrease in sales during the three month period ended March 31, 2012.

Liquidity and Capital Requirements

We had a working capital surplus of approximately $110.4 million and stockholders' equity of approximately $77.0 million as of March 31, 2012. Cash and cash equivalents decreased by approximately $41.7 million for the three months ended March 31, 2012. The decrease is primarily attributable to an increase in marketable securities of approximately $22.2 million and increases in inventories.

More detailed information on the housing projects is available at the UNR Holdings corporate website: 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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