-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Syi3AFCynm273mSMTA7wr6tijDhEXGsQNiOUlsken6ld8zN28KTPHinDsRmQSEFo b2pF11EIFG6PztNpu+H0eA== 0000752642-97-000004.txt : 19970508 0000752642-97-000004.hdr.sgml : 19970508 ACCESSION NUMBER: 0000752642-97-000004 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970507 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: UNITED MOBILE HOMES INC CENTRAL INDEX KEY: 0000752642 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 221890929 STATE OF INCORPORATION: NJ FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-12690 FILM NUMBER: 97596974 BUSINESS ADDRESS: STREET 1: 125 WYCKOFF RD CITY: EATONTOWN STATE: NJ ZIP: 07724 BUSINESS PHONE: 9083893890 MAIL ADDRESS: STREET 1: P O BOX 335 STREET 2: 125 WYCKOFF ROAD CITY: EATONTOWN STATE: NJ ZIP: 07724 10-Q 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ( x ) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 1997 ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period ended _________________________ For Quarter Ended Commission File Number March 31, 1997 0-13130 UNITED MOBILE HOMES, INC. (Exact name of registrant as specified in its charter) New Jersey 22-1890929 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) identification number) 125 Wyckoff Road, Eatontown, New Jersey 07724 Registrant's telephone number, including area code (908) 389-3890 ______________________________________________________________________ (Former name, former address and former fiscal year, if changed since last report.) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ________ Indicate by check mark whether the financial statements required by instruction H have been reviewed by an independent public accountant. Yes No X The number of shares outstanding of issuer's common stock as of April 30, 1997 was 6,535,367 shares. PART I FINANCIAL INFORMATION UNITED MOBILE HOMES, INC. for the QUARTER ENDED MARCH 31, 1997 Item 1 - FINANCIAL STATEMENTS Page No. Consolidated Balance Sheets..................... 3 Consolidated Statements of Income............... 4 Consolidated Statements of Cash Flows........... 5 Notes to Consolidated Financial Statements...... 6-7 Item 2 - MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS.. 8 UNITED MOBILE HOMES, INC. CONSOLIDATED BALANCE SHEETS as of MARCH 31, 1997 and DECEMBER 31, 1996 March 31, December 31, 1997 1996 -ASSETS- INVESTMENT PROPERTY AND EQUIPMENT Land $ 5,927,506 $ 5,927,136 Site and Land Improvements 36,041,668 35,983,165 Buildings and Improvements 1,931,178 1,930,345 Rental Homes and Accessories 4,942,795 4,907,832 __________ __________ Total Investment Property 48,843,147 48,748,478 Equipment and Vehicles 2,159,641 2,163,179 __________ __________ Total Investment Property and Equip. 51,002,788 50,911,657 Accumulated Depreciation (21,402,451) (21,024,163) __________ __________ Net Investment Property and Equipment 29,600,337 29,887,494 __________ __________ OTHER ASSETS Cash and Cash Equivalents 413,341 1,195,095 Securities Available for Sale 2,664,133 1,441,037 Notes and Other Receivables 498,072 507,199 Unamortized Financing Costs 150,244 160,744 Prepaid Expenses 244,656 284,993 Land Development Costs 2,962,481 2,398,644 __________ __________ Total Other Assets 6,932,927 5,987,712 __________ __________ TOTAL ASSETS $ 36,533,264 $ 35,875,206 ========== ========== - -LIABILITIES & SHAREHOLDERS' EQUITY- MORTGAGES PAYABLE $ 17,252,631 $ 17,351,030 __________ __________ OTHER LIABILITIES Accounts Payable 165,562 206,426 Accrued Liabilities & Deposits 1,293,977 1,520,641 Tenant Security Deposits 374,897 370,964 __________ __________ Total Other Liabilities 1,834,436 2,098,031 __________ __________ TOTAL LIABILITIES 19,087,067 19,449,061 __________ __________ SHAREHOLDERS' EQUITY Common Stock - $.10 par value per share 10,000,000 shares authorized, 6,533,367 and 6,433,676 issued and outstanding, respectively 653,337 643,368 Additional Paid-In Capital 17,294,159 16,275,434 Unrealized Holding Gains on 123,948 76,501 Securities Available for Sale Accumulated Deficit ( 625,247) ( 569,158) __________ __________ TOTAL SHAREHOLDERS' EQUITY 17,446,197 16,426,145 __________ __________ TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $ 36,533,264 $ 35,875,206 ========== ==========
3 UNITED MOBILE HOMES, INC. CONSOLIDATED STATEMENTS OF INCOME For the THREE MONTHS ended MARCH 31, 1997 and 1996 1997 1996 Rental and Related Income $ 3,765,720 $ 3,561,274 Community Operating Expense 1,529,795 1,535,789 _________ _________ Income from Community Operations 2,235,925 2,025,485 General and Administrative 344,104 383,494 Interest Expense 335,426 376,043 Interest Income ( 39,025) ( 20,486) Depreciation 519,720 492,133 Other Expenses 10,500 11,280 _________ _________ Income before Gains 1,065,200 783,021 On Sales of Assets Gains on Sales of Assets 7,754 280,188 _________ _________ Net Income $ 1,072,954 $ 1,063,209 ========= ========= Net Income Per Share $ .16 $ .18 ========= ========= Weighted Average Shares 6,545,104 5,980,364 ========= =========
-UNAUDITED- See Notes to Consolidated Financial Statements 4 UNITED MOBILE HOMES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS for the THREE MONTHS ended MARCH 31, 1997 and 1996 1997 1996 CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 1,072,954 $ 1,063,209 Non-Cash Adjustments Depreciation 519,720 492,133 Amortization 10,500 11,280 Gain on Sales of Assets ( 7,754) ( 280,188) Changes in Operating Assets And Liabilities - Notes and Other Receivables 9,127 ( 358,419) Prepaid Expenses 40,337 4,405 Accounts Payable ( 40,864) 520,258 Accrued Liabilities & Deposits ( 226,664) 75,042 Tenant Security Deposits 3,933 23,512 _________ _________ Net Cash Provided by Operating Activities 1,381,289 1,551,232 _________ _________ CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of Manufactured Home Communities -0- (2,013,706) Purchase of Investment Property ( 309,485) ( 413,947) And Equipment Proceeds from Sales of Assets 84,676 411,035 Additions to Land Development ( 563,837) ( 209,655) Purchase of Securities Available for Sale (1,175,649) ( 201,143) _________ _________ Net Cash Used by Investing Activities (1,964,295) (2,427,416) _________ _________ CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from Mortgages and Loans -0- 1,000,000 Principal Payments of Mortgages and Loans ( 98,399) (1,087,509) Financing Costs on Debt -0- ( 15,862) Proceeds from Dividend Reinvestment Proceeds from Dividend Reinvestment And Stock Purchase Plan 495,590 963,844 Proceeds from Exercise of Stock Options 89,250 -0- Dividends Paid ( 685,189) ( 513,438) Net Cash Provided (Used) by Financing Activities ( 198,748) 347,035 _________ _________ NET DECREASE IN CASH AND CASH EQUIVALENTS ( 781,754) ( 529,149) CASH & CASH EQUIVALENTS - BEGINNING 1,195,095 2,043,282 _________ _________ CASH & CASH EQUIVALENTS - ENDING $ 413,341 $ 1,514,133 ========= =========
5 UNITED MOBILE HOMES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 1997 (UNAUDITED) NOTE 1 - ACCOUNTING POLICY The interim consolidated financial statements furnished herein reflect all adjustments which were, in the opinion of management, necessary to present fairly the financial position, results of operations, and cash flows at March 31, 1997 and for all periods presented. All adjustments made in the interim period were of a normal recurring nature. Certain footnote disclosures which would substantially duplicate the disclosures contained in the audited consolidated financial statements and notes thereto included in the annual report of United Mobile Homes, Inc. (the Company) for the year ended December 31, 1996 have been omitted. Certain amounts in the consolidated financial statements for the prior period have been reclassified to conform to the statement presentation for the current period. NOTE 2 - DIVIDEND REINVESTMENT AND STOCK PURCHASE PLAN On March 17, 1997, the Company paid $1,129,043 as a dividend of $.175 per share to shareholders of record as of February 17, 1997. On March 17, 1997, the Company received $939,444 from the Dividend Reinvestment and Stock Purchase Plan (DRIP). There were 81,691 new shares issued resulting in 6,533,367 shares outstanding. NOTE 3 - EMPLOYEE STOCK OPTIONS During the three months ended March 31, 1997, the following stock option was granted: Date of Number of Option Expiration Grant Shares Price Date 1/03/97 25,000 $13.125 1/03/2002 During the three months ended March 31, 1997, three employees exercised their stock options and purchased 18,000 shares for total proceeds of $89,250. As of March 31, 1997, there were 285,000 shares outstanding and 488,000 shares available under the Company's Stock Option Plans. 6 NOTE 4 - RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS In February 1997, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards No. 128, "Earnings Per Share" (Statement 128). Statement 128 supersedes APB Opinion No. 15 "Earnings Per Share" and specifies the computation, presentation, and disclosure requirements for earning per share (EPS) for entities with publicly held common stock or potential common stock. Statement 128 replaces Primary EPS and Fully Diluted EPS with Basic EPS and Diluted EPS, respectively. Statement 128 also requires dual presentation of Basic and Diluted EPS on the face of the income statement for entities with complex capital structures and a reconciliation of the information utilized to calculate Basic EPS to that used to calculate Diluted EPS. Statement 128 is effective for financial statements periods ending after December 15, 1997. Earlier application is not permitted. After adoption, all prior period EPS is required to be restated to conform with Statement 128. The Company expects that the adoption of Statement 128 will result in Basic EPS being higher than Primary EPS and Diluted EPS will be approximately the same as Fully Diluted EPS. Statement of Financial Accounting Standards No. 129, "Disclosure of Information about Capital Structure" (Statement 129) was issued in February 1997. Statement 129 is effective for periods ending after December 15, 1997. Statement 129 lists required disclosures about capital structure that had been included in a number of separate statements and opinions of authoritative accounting literature. As such, the adoption of Statement 129 is not expected to have a significant impact on the disclosures in financial statements of the Company. NOTE 5 - SUPPLEMENTAL CASH FLOW INFORMATION Cash paid during the three months ended March 31, 1997 and 1996 for interest was $335,426 and $376,043, respectively. During the three months ended March 31, 1997 and 1996, the Company had dividend reinvestments of $443,854 and $364,467, respectively, which required no cash transfers. 7 MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS MATERIAL CHANGES IN FINANCIAL CONDITION United Mobile Homes, Inc. (the Company) owns and operates twenty-three manufactured home communities. These manufactured home communities have been generating increased gross revenues and increased operating income. The Company generated $1,381,289 net cash provided by operating activities. The Company received new capital of $939,444 through its Dividend Reinvestment and Stock Purchase Plan (DRIP). The Company purchased $1,175,649 of Securities Available for Sale. Mortgages Payable decreased by $98,399 as a result of principal repayments. MATERIAL CHANGES IN RESULTS OF OPERATIONS Income from community operations increased by $210,440 to $2,235,925 for the quarter ended March 31, 1997 as compared to $2,025,485 for the quarter ended March 31, 1996. This represents a continuing trend of rising income from community operations. The Company has been raising rental rates by approximately 5% annually. Rental and related income rose from $3,561,274 for the quarter ended March 31, 1996 to $3,765,720 for the quarter ended March 31, 1997. This was a result of higher rents and the purchases of Wood Valley and Spreading Oaks Village during 1996. Community operating expenses decreased from $1,535,789 for the quarter ended March 31, 1996 to $1,529,795 for the quarter ended March 31, 1997. Community operating expenses decreased due to lower maintenance costs as a result of the mild winter and promotional cost partially offset by the operating expenses of the purchases of Wood Valley and Spreading Oaks. Interest expense decreased from $376,043 for the quarter ended March 31, 1996 to $335,426 for the quarter ended March 31, 1997. This was primarily a result of principal repayments. Gains on Sales of Assets decreased from $280,188 for the three months ended March 31, 1996 to $7,754 for the three months ended March 31, 1997. This was primarily due to the sale of 5.5 acres of excess vacant land at a gain of $290,303 in 1996. LIQUIDITY AND CAPITAL RESOURCES Net cash provided by operating activities decreased from $1,551,232 for the three months ended March 31, 1996 to $1,381,289 for the three months ended March 31, 1997. The Company believes that funds generated from operations and the Dividend Reinvestment and Stock Purchase Plan, together with the financing and refinancing of its properties will be sufficient to meet its need over the next several years. 8 PART II OTHER INFORMATION UNITED MOBILE HOMES, INC. for the QUARTER ENDED March 31, 1997 9 PART II Item 1 - Legal Proceedings - none Item 2 - Changes in Securities - none Item 3 - Defaults Upon Senior Securities - none Item 4 - Submission of Matters to a Vote of Security Holders - none Item 5 - Other Information - none Item 6 - Exhibits and Reports on Form 8-K - (a) Exhibits - none (b) Reports on Form 8-K - none 10 SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. DATE: May 1, 1997 By:/s/Samuel A. Landy Samuel A. Landy, President DATE: May 1, 1997 By:/s/Anna T. Chew Anna T. Chew, Vice President and Chief Financial Officer 11 EX-27 2
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FINANCIAL STATEMENTS OF UNITED MOBILE HOMES, INC. AS OF AND FOR THE PERIOD ENDED MARCH 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 3-MOS DEC-31-1997 MAR-31-1997 413,341 2,664,133 624,499 126,427 0 3,820,202 51,002,788 21,402,451 36,533,264 1,834,436 17,252,631 653,337 0 0 16,792,860 36,533,264 0 3,812,499 0 1,529,795 874,324 0 335,426 1,072,954 0 1,072,954 0 0 0 1,072,954 .16 .16
-----END PRIVACY-ENHANCED MESSAGE-----