UNR Holdings Inc., a housing and commercial construction company and provider of infrastructure construction services for government oil and gas projects in Russia, today posted its financial results for the second fiscal quarter ended June 30, 2010.
Net revenues for the second quarter increased 318.5 percent to $19.9 million, as compared to revenues of $4.8 million for the second quarter of 2009. The company attributes the positive numbers primarily to a gradual increase in demand for the apartments UNR constructs, as well as to improved demand for its proprietary road base and slopes stabilization material Prudon, which UNR supplies to infrastructure projects throughout Russia.
Gross profit for the quarter increased 220.4 percent to $6.2 million from $1.9 million in the same period a year ago. Gross margin was 31 percent for the second quarter, as compared to 40.5 percent in the same quarter last year.
UNR reported that selling, general and administrative expenses were $818,452 during the second quarter, as compared to $724,977 for the second quarter of 2009.
Income from operations for the second quarter of 2010 was $5.4 million, up 345.2 percent from $1.2 million in the second quarter of fiscal year 2009. Operating margin was 27 percent, up from 25 percent in the same quarter of 2009.
Net income attributable to the company in the second quarter increased 269.1 percent to $3.4 million, as compared to $918,873 during the comparable quarter of 2009.
As of June 30, 2010, UNR had approximately $39.0 million in cash and cash equivalents, $198.5 million in total assets, and no long-term debt; shareholders’ equity at June 30, 2010 was approximately $33.6 million, up 20.0 percent from approximately $28.0 million at December 31, 2009.
Alexey Kim, CEO of UNR, said the company’s solid second-quarter financials reflect the company’s strength throughout overall economic hardships, and may signal that Russia’s financial position is growing stronger.
“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. We experienced an improvement in demand for our residential housing projects in the second quarter, 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,” Kim stated in the press release.
For more information visit www.unrhs.com