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 September 30, 1995
( ) 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
September 30, 1995 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
November 1, 1995 was 5,756,786 shares.
PART I
FINANCIAL INFORMATION
UNITED MOBILE HOMES, INC.
for the QUARTER ENDED
SEPTEMBER 30, 1995
Item 1 - FINANCIAL STATEMENTS
Page No.
Consolidated Balance Sheets..................... 1
Consolidated Statements ofIncome................ 2
Consolidated Statements of Cash Flows........... 3
Notes to Consolidated Financial Statements...... 4-5
Item 2 - MANAGEMENT DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS.. 6-7
<TABLE>
<CAPTION>
UNITED MOBILE HOMES, INC.
CONSOLIDATED BALANCE SHEETS
as of SEPTEMBER 30, 1995 and DECEMBER 31, 1994
<S> <C> <C>
September 30, December 31,
1995 1994
- ASSETS -
INVESTMENT PROPERTY & EQUIPMENT
Land $ 5,194,402 $ 4,494,382
Site and Land Improvements 31,421,126 29,777,592
Buildings & Improvements 1,752,209 1,728,447
Rental Homes & Accessories 3,705,575 3,523,332
___________ ___________
Total Investment Property 42,073,312 39,523,753
Equipment & Vehicles 1,817,105 1,669,585
___________ ___________
Total Investment Property & Equip. 43,890,417 41,193,338
Accumulated Depreciation (18,758,203) (17,643,762)
___________ ___________
Net Investment Property & Equipment 25,132,214 23,549,576
___________ ___________
OTHER ASSETS
Cash and Cash Equivalents 224,955 357,547
Notes and Other Receivables 297,746 418,304
Unamortized Financing Costs 256,218 235,663
Prepaid Expenses 386,710 286,148
Land Development Costs 1,239,877 556,777
___________ ___________
Total Other Assets 2,405,506 1,854,439
___________ ___________
TOTAL ASSETS $ 27,537,720 $ 25,404,015
=========== ===========
- LIABILITIES & SHAREHOLDERS' EQUITY -
MORTGAGES PAYABLE $ 16,124,157 $ 15,637,325
___________ ___________
OTHER LIABILITIES
Accounts Payable 195,134 151,548
Loans Payable -0- 500,000
Accrued Liabilities & Deposits 1,347,535 966,731
Tenant Security Deposits 315,677 294,028
___________ ___________
Total Other Liabilities 1,858,346 1,912,307
___________ ___________
MINORITY INTEREST -0- 132,600
___________ ___________
EQUITY
Common Stock - $.10 par value per share,
10,000,000 shares authorized, 5,756,786
and 5,496,163 issued and
outstanding, respectively 575,679 549,616
Additional Paid-In Capital 9,960,101 7,839,960
Accumulated Deficit ( 980,563) (667,793)
___________ ___________
Total Shareholders' Equity 9,555,217 7,721,783
___________ ___________
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $ 27,537,720 $ 25,404,015
=========== ===========
-UNAUDITED-
See Accompanying Notes to Consolidated Financial Statements
-1-
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<TABLE>
<CAPTION>
UNITED MOBILE HOMES, INC.
CONSOLIDATED STATEMENTS OF INCOME
for the THREE AND NINE MONTHS ended
SEPTEMBER 30, 1995 and 1994
<S> <C> <C> <C> <C>
THREE MONTHS NINE MONTHS
9/30/95 9/30/94 9/30/95 9/30/94
Rental and Related Income $ 3,382,423 $ 3,109,779 $ 9,934,228 $ 9,164,036
Park Operating Expense 1,543,707 1,363,825 4,441,691 4,075,059
Depreciation Expense 460,831 449,401 1,400,616 1,339,383
_________ _________ _________ _________
Income from Park Operations 1,377,885 1,296,553 4,091,921 3,749,594
General and Administrative 328,238 305,190 1,008,485 927,780
Interest Expense 406,977 388,978 1,298,208 1,126,128
Interest Income ( 9,234) ( 5,477) ( 45,766) ( 15,636)
Other Expenses 18,467 15,927 54,785 43,427
_________ _________ _________ _________
Income before Gains 633,437 591,935 1,776,209 1,667,895
Gains (Loss) on Sales of
Assets ( 3,696) 15,110 2,350 10,189
_________ _________ _________ _________
Income Before Taxes 629,741 607,045 1,778,559 1,678,084
Income Taxes -0- 36,000 -0- 108,000
_________ _________ _________ _________
Net Income $ 629,741 $ 571,045 $ 1,778,559 $ 1,570,084
========= ========= ========= =========
Net Income Per Share $ .11 $ .11 $ .31 $ .29
========= ========= ========= =========
Weighted Average Shares 5,735,296 5,421,140 5,643,668 5,362,142
========= ========= ========= =========
-UNAUDITED-
See Notes to Consolidated Financial Statements
-2-
</TABLE>
<TABLE>
<CAPTION>
UNITED MOBILE HOMES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
for the NINE MONTHS ended SEPTEMBER 30, 1995 and 1994
<S> <C> <C>
September 30,
1995 1994
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 1,778,559 $ 1,570,084
Non-Cash Adjustments
Depreciation & Amortization 1,455,401 1,382,810
Loss (Gain) on Sales of Assets ( 2,350) ( 10,189)
Changes in Operating Assets
and Liabilities -
Notes and Other Receivables 120,558 175,207
Prepaid Expenses ( 100,562) ( 90,435)
Accounts Payable 43,586 ( 56,052)
Accrued Liabilities & Deposits 380,804 196,160
Tenant Security Deposits 21,649 5,987
__________ __________
Net Cash Provided by Operating
Activities 3,697,645 3,173,572
__________ __________
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of Edgewood Mobile Home Park (2,010,906) -0-
Purchase of Minority Interest ( 132,600) -0-
Purchase of Investment Property
and Equipment (1,207,923) (1,301,398)
Proceeds from Sales of Assets 237,925 166,211
Additions to Land Development ( 683,100) ( 482,510)
__________ __________
Net Cash Used by Investing Activities (3,796,604) (1,617,697)
__________ __________
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Loans and Mortgages 3,700,000 5,900,000
Principal Payments of Loans
and Mortgages (3,713,168) (7,284,556)
Financing Costs on Debt ( 75,340) ( 93,177)
Proceeds from Dividend Reinvestment
and Stock Purchase Plan 2,146,204 1,216,902
Dividends Paid (2,091,329) (1,597,947)
__________ __________
Net Cash Used by Financing Activities ( 33,633) (1,858,778)
__________ __________
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS ( 132,592) ( 302,903)
CASH & CASH EQUIVALENTS - BEGINNING 357,547 364,472
__________ __________
CASH & CASH EQUIVALENTS - ENDING $ 224,955 $ 61,569
========== ==========
-UNAUDITED-
See Accompanying Notes to Consolidated Financial Statements
-3-
</TABLE>
UNITED MOBILE HOMES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1995
(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 September 30, 1995 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, 1994 have been omitted.
NOTE 2 - LOANS AND MORTGAGES PAYABLE
On January 26, 1995, the Company utilized $3,700,000 ($2,000,000
on Woodlawn Village and $1,700,000 on Southwind Village) of the revolving
line of credit with United Jersey Bank, N.A. Proceeds from these
advances were primarily used to retire existing debt and to purchase
Edgewood Mobile Home Park. (See Note 5.)
NOTE 3 - DIVIDEND REINVESTMENT AND STOCK PURCHASE PLAN
On September 15, 1995, the Company paid $707,884 as a dividend of $.125
per share to shareholders of record as of August 15, 1995. The total
dividends paid for the nine months ended September 30, 1995 amounted to
$2,091,329.
On September 15, 1995, the Company received $890,292 from the
Dividend Reinvestment and Stock Purchase Plan (DRIP). There were 93,716
new shares issued resulting in 5,756,786 shares outstanding. The
total amount received from the DRIP for the nine months ended
September 30, 1995 amounted to $2,146,204.
NOTE 4 - EMPLOYEE STOCK OPTIONS
During the nine months ended September 30, 1995, the following
stock options were granted:
Date of Number of Option Expiration
Grant Shares Price Date
1/05/95 75,000 $8.25 1/05/2000
8/03/95 22,000 $8.375 8/03/2000
8/17/95 15,000 $8.375 8/17/2000
As of September 30, 1995, there were 576,000 shares available under
the Company's 1994 Stock Option Plan.
-4-
NOTE 5 - ACQUISITIONS
On January 26, 1995, the Company acquired Edgewood Mobile Home Park, a
218space mobile home park located in Apollo, Pennsylvania. This mobile
home park was purchased from a partnership whose partners are also
officers, directors and shareholders of the Company. The purchase price
included total payments to partners of $966,000, and payment of net
liabilities of approximately $800,000 for a total purchase price
of approximately $1,775,000. An additional $200,000 plus interest at 8%
is to be paid if the park generates, within a three year time limit,
$195,000 per year or more in operating income. This purchase was based
on an independent appraisal of fair market value.
On February 3, 1995, the Company purchased the remaining 11.64% interest
in Heather Highlands Mobile Home Village Associates, L.P. from Mr.
Eugene W. Landy for $132,600. This price per unit was the same price
previously paid to non-affiliated sellers, which was based on an
independent appraisal of fair market value.
On September 15, 1995, the Company purchased approximately ten acres
of vacant land adjacent to one of its parks in Vineland, New Jersey
for a purchase price of $32,500.
NOTE 6 - SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid during the nine months ended September 30, 1995 and 1994
for interest and taxes are as follows:
1995 1994
Interest $1,309,320 $1,141,764
Taxes 30,700 47,292
NOTE 7 - SUBSEQUENT EVENTS
On October 13, 1995, the Company entered into an agreement to purchase
a 161-space mobile home park located in Caledonia, Ohio for $1,992,000.
On October 10, 1995, the Company entered into an agreement to sell 5.5
acres of vacant land for a sales price of $385,000.
-5-
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-one
mobile home parks. The mobile home parks have been generating
increased gross revenues and increased operating income.
The Company generated $3,697,645 cash from operations. The
Company received new capital of $2,146,204 through its Dividend
Reinvestment and Stock Purchase Plan (DRIP). Mortgages Payable
increased by $486,832 as a result of the utilization of $3,700,000 of
the Company's revolving line of credit offset by principal repayments.
Proceeds from the line of credit were primarily used to retire existing
debt and to purchase Edgewood Mobile Home Park (Edgewood) (see Note
5). The Company also purchased the remaining 11.64% interest in
Heather Highlands Mobile Home Village Associates, L.P.
Additionally, the Company repaid $500,000 of its unsecured line
of credit. The Company intends to continue to use cash from operations
and proceeds from the DRIP to reduce mortgages payable.
MATERIAL CHANGES IN RESULTS OF OPERATIONS
Income from park operations increased by $81,332 to $1,377,885 for
the quarter ended September 30, 1995 as compared to $1,296,553 for the
quarter ended September 30, 1994. Income from park operations
increased by $342,327 to $4,091,921 for the nine months ended
September 30, 1995 compared to $3,749,594 for the nine months ended
September 30, 1994. This represents a continuing trend of rising
income from park operations. The Company has been raising rental
rates by approximately 5%. Rental and related income rose from
$3,109,779 for the quarter ended September 30, 1994 to $3,382,423
for the quarter ended September 30, 1995. Rental and related income
rose from $9,164,036 for the nine months ended September 30, 1994
to $9,934,228 for the nine months ended September 30, 1995. This
was a result of higher rents, the addition of rental homes and
the purchase of Edgewood. Park operating expenses rose from $1,363,825
for the quarter ended September 30, 1994 to $1,543,707 for the quarter
ended September 30, 1995. Park operating expenses rose from $4,075,059
for the nine months ended September 30, 1994 to $4,441,691 for the
nine months ended September 30, 1995. Park operating expenses increased
due to higher insurance, promotional costs, legal costs and the purchase
of Edgewood. Interest expense increased from $388,978 for the quarter
ended September 30, 1994 to $406,977 for the quarter ended September
30, 1995. Interest expense increased from $1,126,128 for the nine
months ended September 30, 1994 to $1,298,208 for the nine months ended
September 30, 1995. This was a result of an increase in the principal
balance outstanding as well as an increase in the prime bank rate.
Almost all of the Company's debt is tied to the prime bank rate. This
rate was 8.75% at September 30, 1995 as compared to 7.75% at September
30, 1994.
-6-
MATERIAL CHANGES IN RESULTS OF OPERATIONS - Continued
The Company has generally paid an interest rate of 1% over prime
on approximately $15,000,000 in variable rate mortgage debt. Over the
past two years, prime has risen from six percent to nine percent
(currently 8.75%). The Company anticipates that it may be successful
in negotiating with its banks for a lower interest rate. If it can do so,
substantial interest savings will be realized in 1996.
LIQUIDITY AND CAPITAL RESOURCES
Net cash provided by operating activities increased during the nine
months ended September 30, 1995 to $3,697,645 compared to $3,173,572
generated in the nine month period ended September 30, 1994. Excess
cash was used to amortize and/or prepay debt. 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.
-7-
PART II
OTHER INFORMATION
UNITED MOBILE HOMES, INC.
for the QUARTER ENDED
September 30, 1995
-8-
PART II
Item 1 - Legal Proceedings -
On June 7, 1995, a lawsuit was filed against the Company
by Stults and Associates, Inc. seeking payment of $45,000
for engineering services pertaining to the expansion of River
Valley Estates in Marion, Ohio. The Company does not believe
that any monies are owed and has filed a counter-claim.
On June 15, 1995, the Company was granted a Summary Judgment
Order allowing families into Southwind Village Mobile Home
Park in Jackson, New Jersey. Prior to this order, Jackson
Township was seeking an injunction and damages from the
Company for allowing families into the park. The Company
may be entitled to recover legal fees incurred in this matter.
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
-9-
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: November 9, 1995 By:s/Samuel A. Landy
Samuel A. Landy,
President
DATE: November 9, 1995 By:s/Anna T. Chew
Anna T. Chew,
Vice President and
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF UNITED MOBILE HOMES, INC. AS OF AND FOR THE
PERIOD ENDED SEPTEMBER 30, 1995 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 224,955
<SECURITIES> 0
<RECEIVABLES> 399,301
<ALLOWANCES> 101,555
<INVENTORY> 0
<CURRENT-ASSETS> 909,411
<PP&E> 43,890,417
<DEPRECIATION> 18,758,203
<TOTAL-ASSETS> 27,537,720
<CURRENT-LIABILITIES> 1,858,346
<BONDS> 16,124,157
<COMMON> 575,679
0
0
<OTHER-SE> 8,979,538
<TOTAL-LIABILITY-AND-EQUITY> 27,537,720
<SALES> 0
<TOTAL-REVENUES> 9,982,344
<CGS> 0
<TOTAL-COSTS> 4,441,691
<OTHER-EXPENSES> 2,463,886
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,298,208
<INCOME-PRETAX> 1,778,559
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,778,559
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,778,559
<EPS-PRIMARY> .31
<EPS-DILUTED> .31
</TABLE>
