United Capital Corp. (AMEX:AFP) today reported net income for the quarter ended September 30, 2006 of $20.6 million. On a per share basis, net income for the current quarter was $2.49 per basic share on total revenues of $16.4 million. For the three months ended September 30, 2005, net income was $5.7 million or $.65 per basic share on total revenues of $14.9 million.

For the nine months ended September 30, 2006, total revenues were $49.7 million. Net income for this period was $25.9 million or $3.12 per basic share. For the first nine months of 2005, total revenues were $46.0 million resulting in net income of $11.8 million or $1.32 per basic share.

The results of the current quarter and year-to-date period were favorably impacted by the reversal of approximately $17 million in long-term and deferred income tax liabilities related to certain tax matters for which the statue of limitations has expired.

In addition, the Company recorded a pre-tax charge of $807,000 during the first half of 2006 related to the adoption of SFAS No. 123R, ?Share-Based Payments,? which requires the measurement of stock-based compensation using a fair value method to be expensed in the financial statements.

In commenting on the results, A.F. Petrocelli, Chairman of United Capital Corp. noted ?Another strong quarter has enhanced the financial strength and liquidity of United Capital which will further enable us to reach our long-term strategies and goals.?

Certain statements in this press release and other statements made by the Company or its representatives that are not strictly historical facts are ?forward-looking? statements within the meaning of the Private Securities Litigation Reform Act of 1995 that should be considered as subject to the many risks and uncertainties that exist in the Company's operations and business environment. The forward-looking statements are based on current expectations and involve a number of known and unknown risks and uncertainties that could cause the actual results, performance and/or achievements of the Company to differ materially from any future results, performance or achievements, expressed or implied, by the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, and that in light of the significant uncertainties inherent in forward-looking statements, the inclusion of such statements should not be regarded as a representation by the Company or any other person that the objectives or plans of the Company will be achieved. The Company also assumes no obligation to publicly update or revise its forward-looking statements or to advise of changes in the assumptions and factors on which they are based. See our 2005 Annual Report on Form 10-K for a discussion of risk factors that could impact our future financial performance and/or cause actual results to differ significantly from those expressed or implied by such statements.

United Capital Corp. and its subsidiaries own and manage real estate and hotel properties and provide engineered products to industrial and automotive markets worldwide.

TABLE FOLLOWS

UNITED CAPITAL CORP. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Unaudited)

(In thousands, except per share data)

 
Three Months Ended

September 30,

Nine Months Ended

September 30,

  2006    2005    2006    2005 
Revenues $ 16,438  $ 14,874  $ 49,659  $ 45,998 
Operating income $ 2,976  $ 3,029  $ 8,042  $ 8,685 
Other income $ 1,981  $ 4,425  $ 4,439  $ 7,761 

Income from continuing operations before income taxes

$ 4,957  $ 7,454  $ 12,481  $ 16,446 
(Benefit) provision for income taxes $ (15,667) $ 2,626  $ (12,987) $ 5,763 
Income from continuing operations $ 20,624  $ 4,828  $ 25,468  $ 10,683 
Income from discontinued operations $

-- 

$ 849  $ 445  $ 1,139 
Net income $ 20,624  $ 5,677  $ 25,913  $ 11,822 
 
Basic earnings per share:
Income from continuing operations $ 2.49  $ .55  $ 3.07  $ 1.19 
Income from discontinued operations  

-- 

  .10    .05    .13 
Net income per share $ 2.49  $ .65  $ 3.12  $ 1.32 
 
Diluted earnings per share:
Income from continuing operations $ 2.01  $ .45  $ 2.50  $ .99 
Income from discontinued operations  

-- 

  .08    .04    .10 
Net income per share assuming dilution $ 2.01  $ .53  $ 2.54  $ 1.09 
 
Weighted average shares:
Basic   8,276    8,737    8,306    8,965 
Diluted   10,248    10,641    10,188    10,846