SOURCE: UNR Holdings, Inc.

UNR Holdings, Inc.

May 16, 2011 10:05 ET

UNR Holdings, Inc. Announces Year End Financial Results for 2010

ORLANDO, FL--(Marketwire - May 16, 2011) - UNR Holdings, Inc. (OTCBB: UNRH)

--  DEC 31, 2010 Revenues Increased 74.2% YoY to $107.3 Million
--  DEC 31, 2010 Net Income Increased 36.1% YoY to $16.1 Million
--  DEC 31, 2010 EPS Increased 37.5% YoY to $0.66

UNR Holdings, Inc. (OTCBB: UNRH) ("UNR" or the "Company"), a housing and commercial construction company which also provides infrastructure construction services for government oil and gas projects in Russia, today announced financial results for its year end December 31, 2010.

Alexey Kim, CEO of UNR Holdings, stated: "We are very excited to be able to share such strong financial results with our investors, and we believe that they are a testament to our economic resilience and commitment to our investors. We experienced an improvement in demand for our residential housing projects last fiscal year, which is a promising sign that Russia is emerging from the downturn caused by the global credit crisis in 2008 and 2009. We plan to continue leveraging our experience and reputation as one of the most respected construction firms in the Moscow area, and we believe that UNR is in a strong position to thrive both financially and competitively."

December 31 2010 Financial Highlights

--  Revenues for the year ended December 31, 2010 totaled $107,298,408, an
    increase of 74.2% from $ 61,616,324 compared with the year ended
    December 31 2009.

--  Net income attributable to UNR for the fiscal year end 2010 totaled
    $16,107,720, an increase of 36% from $11,835,986 for the year ended
    December 31, 2009.

--  Basic and diluted earnings per share for the year ended December 31,
    2010 was $0.66 per share, an increase of 37.5% from $0.48per share for
    the same period a year ago.

--  Gross profit (sales minus cost of sales) for the year ended
    December 31, 2010 increased to $6.2 million from $1.9 million in the
    prior year's period, representing an increase of 220.4%.

--  Cash and cash equivalents totaled $39.0 million as of
    December 31, 2010, up 94.0% from $20.1 million as of December 31, 2009.

Consolidated Results of Operations for the Year Ended December 31, 2010 Compared to the Year Ended December 31, 2009

Revenues. Total revenues for the year ended December 31, 2010 increased to approximately $107.3 million, or 74.2%, as compared to approximately $61.6 million for the year ended December 31, 2009. The increase was a result of a significant increase in road base product revenues, from approximately $5.5 million to $19.4 million, as well as an increase in home building revenues, from approximately $56.1 million to $87.9 million. This was a result of a general pickup in demand for the apartments we construct, which we experienced mainly in our construction and development business in 2010. We also observed a marginal improvement in demand for our proprietary road base and slopes stabilization material Prudon, which we supply to infrastructure projects in various parts of Russia.

Cost of Sales. Cost of sales increased by approximately $38.0 million, or 103.0%, to approximately $75.0 million for the year ended December 31, 2010, from approximately $37.0 million for the year ended December 31, 2009. We attribute this increase primarily to the overall increase in revenues we experienced during 2010. Cost of sales as a percentage of sales increased from 60.0% for the year ended December 31, 2009, compared to 69.8% for the year ended December 31, 2010. This was primarily due to the fact that in 2009 we responded to the economic downturn with several anti-crisis measures, including scaling back certain marketing and similar expenses, while in 2010 we began slowly to grow our business consistent with the ongoing gradual economic improvement, which required additional investment by our company in construction materials, equipment, and further assistance from marketing and sales consultants.

Selling, general and administrative expenses. Selling, general and administrative expenses increased by approximately $0.7 million to $4.6 million for the year ended December 31, 2010, as compared to approximately $3.9 million for the year ended December 31, 2009. We were able to manage and control these costs this year, during the year ended December 31, 2010, despite a meaningful increase in our revenues, primarily as a result of the anti-crisis measures our company implemented during the fiscal year 2009, such as a reduction in force and more efficient utilization of the remaining personnel. During 2010, we continued to benefit from some of the resulting savings, as we have not expanded existing personnel and continued to make efforts to control our costs of transportation, communications, security, and office space.

Income from Operations. Income from operations increased by approximately $6.9 million, from approximately $20.8 million for the year ended December 31, 2009 compared to approximately $27.8 million for the year ended December 31, 2010. We attribute this increase primarily to the slow and gradual improvement in the economic environment in which we operate and the corresponding improvement in our residential real estate customers' ability to pay for, and/or partly finance, the apartments we construct. Revenue from construction sales has increased 56.7% from 2009 to 2010, contributing an increase of approximately $6.7 million of additional gross profit in 2010.

Other Income (Expense). Other income increased from approximately $0.3 million for the year ended December 31, 2009 to $2.9 million for the year ended December 31, 2010. We attribute this increase primarily to the interest earned on excess funds on U.S. Dollar deposits in 2010.

Provision For Income Taxes. Provision for income taxes increased from approximately $3.4 million for the year ended December 31, 2009, as compared to $6.3 million for the year ended December 31, 2010 primarily due to an increase in net earnings in 2010.

Net Earnings. Net earnings increased by approximately $4.3 million, to approximately $16.1 million for the year ended December 31, 2010, from approximately $11.8 million for the comparable period in 2009. This increase was due to all of the reasons enumerated above.

As of December 31, 2010, UNR had approximately $11.2 million in cash and cash equivalents, $172.2 million in total assets, and no long-term debt. Shareholders' equity at December 31, 2010 was approximately $42.3 million an increase of 51.6% from approximately $27.9 million at December 31, 2009.

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.


{FINANCIAL TABLES FOLLOW}


UNR HOLDINGS, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS

                                                        December 31,
                                                  ------------------------
                                                      2010        2009
                                                  -----------  -----------
ASSETS:
RESIDENTIAL AND COMMERCIAL CONSTRUCTION ASSETS:       ($)          ($)
    Cash and cash equivalents                      11,234,193   20,090,671
    Marketable securities                          26,000,000            -
    Inventories                                    95,855,194   67,704,687
    Trade and other receivables, net               36,419,943   61,520,973
    Property, plant and equipment, net                983,283      987,547
    Other assets                                    1,793,418      161,131
                                                  -----------  -----------
Total Residential and Commercial Construction
 Assets                                           172,286,031  150,465,009


ROAD BASE MATERIALS ASSETS:
    Inventories                                       226,341    2,562,093
    Trade and other receivables, net                   71,178    2,008,335
                                                  -----------  -----------
Total Road Base Material Assets                       297,519    4,570,428
                                                  -----------  -----------

TOTAL ASSETS                                      172,583,550  155,035,437
                                                  ===========  ===========

LIABILITIES AND EQUITY:
RESIDENTIAL AND COMMERCIAL CONSTRUCTION
 LIABILITIES:
    Short-term debt                                    50,504    3,356,923
    Accounts payable and accrued expenses          54,169,698   57,363,987
    Advances from customers                        36,306,529   41,418,413
    Deferred income tax liabilities                16,425,564   10,333,416
                                                  -----------  -----------
Total Residential and Commercial Construction
 Liabilities                                      106,952,295  112,472,739
                                                  -----------  -----------

ROAD BASE MATERIALS LIABILITIES:
    Accounts payable and accrued expenses           2,164,491      797,919
    Advances from customers                                 -       68,063
                                                  -----------  -----------
Total Road Base Materials Liabilities               2,164,491      865,982
                                                  -----------  -----------
Total Liabilities                                 109,116,786  113,338,721
                                                  -----------  -----------

    Commitments and Contingencies                           -            -

    UNR Holdings, Inc. and Subsidiary
     Stockholders' Equity:
      Common stock, $0.001 par value; authorized
       500,000,000 shares; issued and outstanding
       24,464,799 and 24,464,799 shares at December
       31, 2010 and December 31, 2009,
       respectively                                    24,465       24,465

      Additional paid-in capital                       99,579       99,579

      Retained earnings                            45,139,584   29,031,864
                                                  -----------  -----------
      Accumulated other comprehensive loss         (2,933,411)  (1,188,279)
                                                  -----------  -----------
      Total UNR Holdings, Inc. and Subsidiary
       Stockholders' Equity                        42,330,217   27,967,629
                                                  -----------  -----------

    Noncontrolling interest                        21,136,547   13,729,087
                                                  -----------  -----------
    Total Equity                                   63,466,764   41,696,716
                                                  -----------  -----------

TOTAL LIABILITIES AND EQUITY                      172,583,550  155,035,437
                                                  ===========  ===========




                                                    For the Years Ended
                                                        December 31,
                                                      2010         2009
                                                  -----------  -----------
                                                      ($)          ($)

Revenues:
  Sales and other operating revenues              107,298,408   61,616,324

Costs and expenses:

  Cost of sales                                    74,959,915   36,932,012

  Selling, general and administrative expenses      4,581,652    3,861,533
                                                  -----------  -----------
                                                   79,541,567   40,793,545
                                                  -----------  -----------

Income from operations                             27,756,841   20,822,779
                                                  ===========  ===========

Other income (expense):

Foreign currency transaction loss                    (274,695)    (173,303)

Other income                                        3,167,925      426,769
                                                  -----------  -----------
                                                    2,893,230      253,466
                                                  -----------  -----------

Earnings before income taxes                       30,650,071   21,076,245


Income taxes                                        6,268,723    3,432,194
                                                  -----------  -----------

Net earnings                                       24,381,348   17,644,051
                                                  -----------  -----------

Less: Net earnings attributable to the
  noncontrolling interest                           8,273,628    5,808,065
                                                  -----------  -----------

Net earnings attributable to UNR Holdings, Inc.
 and Subsidiary                                    16,107,720   11,835,986
                                                  ===========  ===========

Earnings per share - basic and diluted:
Earnings per common share attributable to
UNR Holdings, Inc. and Subsidiary
common shareholders                                      0.66         0.48
                                                  -----------  -----------

Weighted average common shares
 outstanding - basic and diluted                   24,464,799   24,464,799
                                                  -----------  -----------

Amounts attributable to UNR Holdings, Inc.
 and Subsidiary common shareholders:
Net earnings                                       16,107,720   11,835,986
                                                  ===========  ===========



                    UNR HOLDINGS, INC. AND SUBSIDIARY
              CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME



                                                      For the Years Ended
                                                         December 31,
                                                       2010         2009
                                                    ----------  -----------
                                                        ($)         ($)

      Net earnings                                  24,381,348   17,644,051

      Other comprehensive income (loss) - net of
       tax:
        Currency translation adjustment             (2,611,300)   1,978,854
                                                    ----------  -----------
      Comprehensive income                          21,770,048   19,622,905
        Comprehensive income attributable to
         noncontrolling interest                     7,407,460    6,464,451
                                                    ----------  -----------

        Comprehensive income attributable to UNR
         Holdings, Inc. and Subsidiary              14,362,588   13,158,454
                                                    ==========  ===========

Complete 10-K filing on SEC.GOV.

Contact Information

  • Contact:
    At the company:

    Mr. Serguei Melnik
    Vice President
    UNR Holdings, Inc.
    407-377-6813
    info@unrhs.com

    Investor relations:
    Todd Lorenze
    Center Point Communications Group LLC
    Telephone: 386-775-2020 Option 1