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 June 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
June 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 August 1, 1995 was 5,663,070 shares.
PART I
FINANCIAL INFORMATION
UNITED MOBILE HOMES, INC.
for the QUARTER ENDED
MARCH 31, 1995
Item 1 - FINANCIAL STATEMENTS Page No.
Consolidated Balance Sheets 1
Consolidated Statements of Income 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 JUNE 30, 1995 and DECEMBER 31, 1994
<S> <C> <C>
June 30, December 31,
1995 1994
- ASSETS -
INVESTMENT PROPERTY & EQUIPMENT
Land $ 5,164,382 $ 4,494,382
Site and Land Improvements 31,201,024 29,777,592
Buildings & Improvements 1,738,303 1,728,447
Rental Homes & Accessories 3,776,233 3,523,332
__________ ___________
Total Investment Property 41,879,942 39,523,753
Equipment & Vehicles 1,775,342 1,669,585
__________ ___________
Total Investment Property & Equip. 43,655,284 41,193,338
Accumulated Depreciation (18,354,014) (17,643,762)
__________ ___________
Net Investment Property & Equipment 25,301,270 23,549,576
__________ ___________
OTHER ASSETS
Cash and Cash Equivalents 119,243 357,547
Notes and Other Receivables 228,935 418,304
Unamortized Financing Costs 256,214 235,663
Prepaid Expenses 264,325 286,148
Land Development Costs 1,037,017 556,777
__________ ___________
Total Other Assets 1,905,734 1,854,439
__________ ___________
TOTAL ASSETS $27,207,004 $25,404,015
========== ===========
- LIABILITIES & SHAREHOLDERS' EQUITY -
MORTGAGES PAYABLE $16,793,485 $15,637,325
__________ ___________
OTHER LIABILITIES
Accounts Payable 84,013 151,548
Loans Payable -0- 500,000
Accrued Liabilities & Deposits 1,277,291 966,731
Tenant Security Deposits 309,147 294,028
__________ ___________
Total Other Liabilities 1,670,451 1,912,307
__________ ___________
MINORITY INTEREST -0- 132,600
__________ ___________
SHAREHOLDERS' EQUITY
Common Stock - $.10 par value per share,
10,000,000 shares authorized, 5,663,070
and 5,496,163 issued and
outstanding, respectively 566,307 549,616
Additional Paid-In Capital 9,079,181 7,839,960
Accumulated Deficit (902,420) (667,793)
__________ ___________
Total Shareholders' Equity 8,743,068 7,721,783
__________ ___________
TOTAL LIABILITIES &
SHAREHOLDERS' EQUITY $ 27,207,004 $25,404,015
========== ==========
-UNAUDITED-
See Accompanying Notes to Consolidated Financial Statements
-1-
</TABLE>
<TABLE>
<CAPTION>
UNITED MOBILE HOMES, INC.
CONSOLIDATED STATEMENTS OF INCOME
for the THREE AND SIX MONTHS ended
JUNE 30, 1995 and 1994
THREE MONTHS SIX MONTHS
6/30/95 6/30/94 6/30/95 6/30/94
<S> <C> <C> <C> <C>
Rental and Related Income $ 3,304,765 $ 3,053,201 $ 6,551,805 $ 6,054,257
Park Operating Expense 1,490,437 1,368,877 2,897,984 2,711,234
Depreciation Expense 470,848 450,294 939,785 889,982
_________ _________ _________ _________
Income from Park Operations 1,343,480 1,234,030 2,714,036 2,453,041
General and Administrative 334,493 318,477 680,247 622,590
Interest Expense 449,132 373,134 891,231 737,150
Interest Income ( 12,352) ( 4,983) ( 36,532) ( 10,159)
Other Expenses 18,159 15,315 36,318 27,500
_________ _________ _________ _________
Income before Gains 554,048 532,087 1,142,772 1,075,960
Gains (Loss) on Sales of
Assets 4,830 98 6,046 ( 4,921)
_________ _________ _________ _________
Income Before Taxes 558,878 532,185 1,148,818 1,071,039
Income Taxes -0- 36,000 -0- 72,000
_________ _________ _________ _________
Net Income $ 558,878 $ 496,185 $ 1,148,818 $ 999,039
========= ========= ========= =========
Net Income Per Share $ .10 $ .09 $ .21 $ .18
========= ========= ========= =========
Weighted Average Shares 5,621,741 5,364,957 5,579,672 5,338,846
========= ========= ========= =========
-UNAUDITED-
See Notes to Consolidated Financial Statements
-2-
</TABLE>
<TABLE>
<CAPTION>
UNITED MOBILE HOMES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
for the SIX MONTHS ended JUNE 30, 1995 and 1994
JUNE 30,
1995 1994
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 1,148,818 $ 999,039
Non-Cash Adjustments
Depreciation & Amortization 976,103 917,482
Loss (Gain) on Sales of Assets ( 6,046) 4,921
Changes in Operating Assets
and Liabilities -
Notes and Other Receivables 189,369 ( 51,790)
Prepaid Expenses 21,823 31,698
Accounts Payable ( 67,535) ( 45,906)
Accrued Liabilities & Deposits 310,560 205,943
Tenant Security Deposits 15,119 6,098
__________ __________
Net Cash Provided by Operating
Activities 2,588,211 2,067,485
__________ __________
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 ( 781,986) ( 590,599)
Proceeds from Sales of Assets 107,459 101,942
Additions to Land Development ( 480,240) ( 387,648)
__________ __________
Net Cash Used by Investing Activities (3,298,273) ( 876,305)
__________ __________
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Loans and Mortgages 3,700,000 5,900,000
Principal Payments of Loans
and Mortgages (3,043,840) (6,625,937)
Financing Costs on Debt ( 56,869) ( 93,877)
Proceeds from Dividend Reinvestment
and Stock Purchase Plan 1,255,912 820,989
Dividends Paid (1,383,445) (1,059,670)
__________ __________
Net Cash Provided (Used) by Financing
Activities 471,758 (1,058,495)
__________ __________
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS ( 238,304) 132,685
CASH & CASH EQUIVALENTS - BEGINNING 357,547 364,472
__________ __________
CASH & CASH EQUIVALENTS - ENDING $ 119,243 $ 497,157
========== ==========
-UNAUDITED-
See Accompanying Notes to Consolidated Financial Statements
-3-
</TABLE>
UNITED MOBILE HOMES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 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 June 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 June 15, 1995, the Company paid $696,426 as a dividend of
$.125 per share to shareholders of record as of May 15, 1995.
The total dividends paid for the six months ended June 30, 1995
amounted to $1,383,445.
On June 15, 1995 the Company received $710,386 from the Dividend
Reinvestment and Stock Purchase Plan (DRIP). There were 91,663
new shares issued resulting in 5,663,070 shares outstanding. The
total amount received from the DRIP for the six months ended June
30, 1995 amounted to $1,255,912.
-4-
NOTE 4 - EMPLOYEE STOCK OPTIONS
During the six months ended June 30, 1995, the following stock
options were granted:
Date of Number of Option Expiration
Grant Shares Price Date
1/05/95 25,000 8.25 1/5/2000
1/05/95 50,000 8.25 1/5/2000
As of June 30, 1995, there were 613,000 shares available under
the Company's 1994 Stock Option Plan.
NOTE 5 - ACQUISITIONS
On January 26, 1995, the Company acquired Edgewood Mobile Home
Park, a 218-space 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.
NOTE 6 - SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid during the six months ended June 30, 1995 and 1994 for
interest and taxes are as follows:
1995 1994
Interest $901,886 $752,786
Taxes 7,433 47,292
-5-
MANAGEMENT DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS
MATERIAL CHANGES IN FINANCIAL CONDITIONS
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 $2,588,211 cash from operations. The
Company received new capital of $1,255,912 through its Dividend
Reinvestment and Stock Purchase Plan (DRIP). Mortgages Payable
increased by $1,156,160 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 $109,450 to $1,343,480
for the quarter ended June 30, 1995 as compared to $1,234,030 for
the quarter ended June 30, 1994. Income from park operations
increased by $260,995 to $2,714,036 for the six months ended June
30, 1995 compared to $2,453,041 for the six months ended June 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 $3,053,201
for the quarter ended June 30, 1994 to $3,304,765 for the quarter
ended June 30, 1995. Rental and related income rose from
$6,054,257 for the six months ended June 30, 1994 to $6,551,805
for the six months ended June 30, 1995. This was a result of
higher rents, the addition of rental homes and the purchase of
Edgewood. Park operating expenses rose from $1,368,877 for the
quarter ended June 30, 1994 to $1,490,437 for the quarter ended
June 30, 1995. Park operating expenses rose from $2,711,234 for
the six months ended June 30, 1994 to $2,897,984 for the six
months ended June 30, 1995. Park operating expenses increased
due to higher insurance, legal costs and the purchase of
Edgewood. Interest expense increased from $373,134 for the
quarter ended June 30, 1994 to $449,132 for the quarter ended
June 30, 1995. Interest expense increased from $737,150 for the
six months ended June 30, 1994 to $891,231 for the six months
ended June 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 10% at June 30, 1995 as compared to
7.25% at June 30, 1994.
-6-
LIQUIDITY AND CAPITAL RESOURCES
Net cash provided by operating activities increased during the
six months ended June 30, 1995 to $2,588,211 compared to
$2,067,485 generated in the six month period ended June 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
June 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 -
The annual meeting of shareholders was held on June 1,
1995 to elect a Board of Directors for the ensuing year and to
approve the selection of independent auditors. Proxies for the
meeting were solicited pursuant to Regulation 14 under the
Securities and Exchange Act of 1934.
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: August 1, 1995 By: s/Samuel A. Landy
Samuel A. Landy,
President
DATE: August 1, 1995 By: s/Anna T. Chew
Anna T. Chew,
Vice President and
Chief Financial Officer
-10-
<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 JUNE 30, 1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
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<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
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<BONDS> 16793485
<COMMON> 566307
0
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</TABLE>
