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, 1996
( ) 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, 1996 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, 1996 was 6,105,422 shares.
<PAGE>
PART I
FINANCIAL INFORMATION
UNITED MOBILE HOMES, INC.
for the QUARTER ENDED
JUNE 30, 1996
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.. 8-9
2
<PAGE>
<TABLE>
<CAPTION>
UNITED MOBILE HOMES, INC.
CONSOLIDATED BALANCE SHEETS
as of JUNE 30, 1996 and DECEMBER 31, 1995
June 30, December 31,
1996 1995
<S> <C> <C>
- ASSETS -
INVESTMENT PROPERTY AND EQUIPMENT
Land $ 5,445,369 $ 5,194,402
Site and Land Improvements 34,209,979 32,456,359
Buildings & Improvements 1,770,735 1,755,407
Rental Homes & Accessories 4,618,591 3,912,918
__________ __________
Total Investment Property 46,044,674 43,319,086
Equipment & Vehicles 2,003,670 1,853,398
__________ __________
Total Investment Property & Equip. 48,048,344 45,172,484
Accumulated Depreciation (20,062,906) (19,145,830)
__________ __________
Net Investment Property & Equipment 27,985,438 26,026,654
__________ __________
OTHER ASSETS
Cash and Cash Equivalents 1,155,472 2,043,282
Equity Securities Available for Sale,
at Fair Value 655,679 -0-
Notes and Other Receivables 994,852 547,779
Unamortized Financing Costs 189,885 199,103
Prepaid Expenses 228,828 272,704
Land Development Costs 1,439,032 668,875
__________ __________
Total Other Assets 4,663,748 3,731,743
__________ __________
TOTAL ASSETS $ 32,649,186 $ 29,758,397
========== ==========
- LIABILITIES & SHAREHOLDERS' EQUITY -
MORTGAGES PAYABLE $ 17,530,371 $ 17,707,635
__________ __________
OTHER LIABILITIES
Accounts Payable 114,247 197,357
Accrued Liabilities & Deposits 1,364,381 1,243,686
Tenant Security Deposits 346,754 319,232
__________ __________
Total Other Liabilities 1,825,382 1,760,275
__________ __________
TOTAL LIABILITIES 19,355,753 19,467,910
__________ __________
SHAREHOLDERS' EQUITY
Common Stock - $.10 par value per share,
10,000,000 shares authorized, 6,105,422
and 5,850,631 issued and
outstanding, respectively 610,542 585,063
Additional Paid-In Capital 13,135,008 10,373,217
Unrealized Holding Gains on Equity 8,490 -0-
Securities Available for Sale
Accumulated Deficit ( 460,607) (667,793)
__________ __________
TOTAL SHAREHOLDERS' EQUITY 13,293,433 10,290,487
__________ __________
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $ 32,649,186 $ 29,758,397
========== ==========
-UNAUDITED-
See Accompanying Notes to Consolidated Financial Statements
3
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
UNITED MOBILE HOMES, INC.
CONSOLIDATED STATEMENTS OF INCOME
for the THREE AND SIX MONTHS ended
JUNE 30, 1996 and 1995
THREE MONTHS SIX MONTHS
6/30/96 6/30/95 6/30/96 6/30/95
<S> <C> <C> <C> <C>
Rental and Related Income $ 3,582,925 $ 3,304,765 $ 7,144,199 $ 6,551,805
Community Operating Expense 1,498,566 1,490,437 3,034,355 2,897,984
_________ _________ _________ _________
Income from Community 2,084,359 1,814,328 4,109,844 3,653,821
Operations
General and Administrative 368,962 334,493 752,456 680,247
Interest Expense 339,294 449,132 715,337 891,231
Interest Income ( 20,495) ( 12,352) ( 40,981) ( 36,532)
Depreciation 497,959 470,848 990,092 939,785
Other Expenses 13,800 18,159 25,080 36,318
_________ _________ _________ _________
Income before Gains 884,839 554,048 1,667,860 1,142,772
on Sales of Assets
Gains on Sales of Assets 32,015 4,830 312,203 6,046
_________ _________ _________ _________
Net Income $ 916,854 $ 558,878 $ 1,980,063 $ 1,148,818
========= ========= ========= =========
Net Income Per Share $ .15 $ .10 $ .33 $ .21
========= ========= ========= =========
Weighted Average Shares 6,116,170 5,621,741 6,051,635 5,579,672
========= ========= ========= =========
-UNAUDITED-
See Notes to Consolidated Financial Statements
4
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
UNITED MOBILE HOMES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
for the SIX MONTHS ended
JUNE 30, 1996 and 1995
1996 1995
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 1,980,063 $ 1,148,818
Non-Cash Adjustments
Depreciation & Amortization 1,015,172 976,103
Gain on Sales of Assets ( 312,203) ( 6,046)
Changes in Operating Assets
and Liabilities -
Notes and Other Receivables ( 447,073) 189,369
Prepaid Expenses 43,876 21,823
Accounts Payable ( 83,110) ( 67,535)
Accrued Liabilities & Deposits 120,695 310,560
Tenant Security Deposits 27,522 15,119
_________ _________
Net Cash Provided by Operating
Activities 2,344,942 2,588,211
_________ _________
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of Manufactured Home Communities (2,013,706) (2,010,906)
Purchase of Minority Interest -0- ( 132,600)
Purchase of Investment Property
and Equipment (1,068,206) ( 781,986)
Proceeds from Sales of Assets 533,717 107,459
Additions to Land Development ( 858,635) ( 480,240)
Purchase of Equity Securities
Available for Sale ( 647,189) -0-
_________ _________
Net Cash Used by Investing Activities (4,054,019) (3,298,273)
_________ _________
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Mortgages and Loans 1,000,000 3,700,000
Principal Payments of Mortgages
and Loans (1,177,264) (3,043,840)
Financing Costs on Debt ( 15,862) ( 56,869)
Proceeds from Dividend Reinvestment
and Stock Purchase Plan 2,061,698 637,552
Dividends Paid (1,047,305) ( 765,085)
_________ _________
Net Cash Provided by Financing Activities 821,267 471,758
_________ _________
NET DECREASE IN CASH
AND CASH EQUIVALENTS ( 887,810) ( 238,304)
CASH & CASH EQUIVALENTS - BEGINNING 2,043,282 357,547
_________ __________
CASH & CASH EQUIVALENTS - ENDING $ 1,155,472 $ 119,243
========= ==========
-UNAUDITED-
See Accompanying Notes to Consolidated Financial Statements
5
</TABLE>
<PAGE>
UNITED MOBILE HOMES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1996
(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, 1996 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, 1995 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 - LOANS AND MORTGAGES PAYABLE
On January 9, 1996, the Company entered into a $1,000,000 mortgage payable
(River Valley mortgage) to Bank One at an interest rate of prime. Proceeds
from this mortgage were used to purchase Wood Valley Mobile Home Park.
(See Note 5.) This mortgage was repaid in March 1996.
NOTE 3 - DIVIDEND REINVESTMENT AND STOCK PURCHASE PLAN
On June 14, 1996, the Company paid $894,972 as a dividend of $.15 per share
to shareholders of record as of May 15, 1996. The total dividends paid for
the six months ended June 30, 1996, amounted to $1,772,877.
On June 14, 1996, the Company received $1,458,959 from the Dividend
Reinvestment and Stock Purchase Plan (DRIP). There were 138,947 new shares
issued resulting in 6,105,422 shares outstanding. The total amount
received from the DRIP for the six months ended June 30, 1996 amounted to
$2,787,270.
NOTE 4 - EMPLOYEE STOCK OPTIONS
During the six months ended June 30, 1996, the following stock options were
granted:
Date of Number of Option Expiration
Grant Shares Price Date
1/10/96 25,000 $10.625 1/10/2001
6/27/96 38,000 $10.75 6/27/2001
As of June 30, 1996, there were 335,000 shares outstanding and 513,000
shares available under the Company's Stock Option Plans.
6
<PAGE>
NOTE 5 - ACQUISITIONS, DISPOSITIONS AND EXPANSIONS
On January 10, 1996, the Company acquired Wood Valley Mobile Home Park from
an unrelated entity. This acquisition is a 161-space manufactured home
community located in Caledonia, Ohio. The purchase price, including
closing costs, totalled $2,013,706.
On March 28, 1996, the Company sold 5.5 acres of excess vacant land at a
sales price of $385,000 for a net gain of $290,303.
The Company is currently conducting an expansion program at a number of its
communities. Contracts have been signed totalling approximately $1,200,000
for these expansions.
NOTE 6 - SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid during the six months ended June 30, 1996 and 1995 for interest
was $715,337 and $891,231, respectively.
During the six months ended June 30, 1996, land development costs of
$88,478 were transferred to investment property and equipment and placed in
service.
During the six months ended June 30, 1996 and 1995, the Company had
dividend reinvestments of $725,572 and $618,360, respectively, which
required no cash transfers.
NOTE 7 - SUBSEQUENT EVENTS
On August 1, 1996, the Company acquired Spreading Oaks Village, a 153-space
manufactured home community located in Athens, Ohio. This community was
purchased from a partnership whose partners are also officers, directors
and shareholders of the Company. The purchase price was approximately
$1,325,000. This purchase was based on an independent appraisal of fair
market value.
7
<PAGE>
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-two
manufactured home communities. These manufactured home communities have
been generating increased gross revenues and increased operating income.
The Company generated $2,344,942 cash from operations. The Company
received new capital of $2,787,270 through its Dividend Reinvestment and
Stock Purchase Plan (DRIP). Mortgages Payable decreased by $177,264 as a
result of principal repayments offset by a new mortgage of $1,000,000.
Proceeds from the new mortgage were used to purchase Wood Valley Mobile
Home Park (Wood Valley) (see Note 5).
MATERIAL CHANGES IN RESULTS OF OPERATIONS
Income from community operations increased by $270,031 to $2,084,359 for
the quarter ended June 30, 1996 as compared to $1,814,328 for the quarter
ended June 30, 1995. Income from community operations increased by
$456,023 to $4,109,844 for the six months ended June 30, 1996 compared to
$3,653,821 for the six months ended June 30, 1995. 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 $3,304,765 for the quarter ended June 30, 1995 to
$3,582,925 for the quarter ended June 30, 1996. Rental and related income
rose from $6,551,805 for the six months ended June 30, 1995 to $7,144,199
for the six months ended June 30, 1996. This was a result of higher rents,
the addition of rental homes and the purchase of Wood Valley. Community
operating expenses rose from $1,490,437 for the quarter ended June 30, 1995
to $1,498,566 for the quarter ended June 30, 1996. Community operating
expenses rose from $2,897,984 for the six months ended June 30, 1995 to
$3,034,355 for the six months ended June 30, 1996. Community operating
expenses increased due to higher insurance, promotional costs and the
purchase of Wood Valley. Interest expense decreased from $449,132 for the
quarter ended June 30, 1995 to $339,294 for the quarter ended June 30,
1996. Interest expense decreased from $891,231 for the six months ended
June 30, 1995 to $715,337 for the six months ended June 30, 1996. This was
primarily a result of a decrease in interest rates. During 1995, the
Company negotiated new long-term debt. Interest rates on most of the
Company's debt dropped from prime plus 1% to a fixed rate of 7.5%. The
prime rate was 10% at June 30, 1995.
Gains on Sales of Assets increased from $6,046 for the six months ended
June 30, 1995 to $312,203 for the six months ended June 30, 1996. This was
primarily due to the sale of 5.5 acres of excess vacant land at a gain of
$290,303.
8
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
Net cash provided by operating activities remained relatively stable during
the six months ended June 30, 1996 compared to the six months ended June
30, 1995. 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.
9
<PAGE>
PART II
OTHER INFORMATION
UNITED MOBILE HOMES, INC.
for the QUARTER ENDED
June 30, 1996
10
<PAGE>
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 -
The annual meeting of shareholders was held on May 30, 1996 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
11
<PAGE>
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 8, 1996 By:/s/Samuel A. Landy
Samuel A. Landy,
President
DATE: August 8, 1996 By:/s/Anna T. Chew
Anna T. Chew,
Vice President and
Chief Financial Officer
12
<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 QUARTER
ENDED JUNE 30, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 1,155,472
<SECURITIES> 655,679
<RECEIVABLES> 1,118,790
<ALLOWANCES> 123,938
<INVENTORY> 0
<CURRENT-ASSETS> 3,034,831
<PP&E> 48,048,344
<DEPRECIATION> 20,062,906
<TOTAL-ASSETS> 32,649,186
<CURRENT-LIABILITIES> 1,825,382
<BONDS> 17,530,371
<COMMON> 610,542
0
0
<OTHER-SE> 12,682,891
<TOTAL-LIABILITY-AND-EQUITY> 32,649,186
<SALES> 0
<TOTAL-REVENUES> 7,497,383
<CGS> 0
<TOTAL-COSTS> 3,034,355
<OTHER-EXPENSES> 1,767,628
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 715,337
<INCOME-PRETAX> 1,980,063
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,980,063
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,980,063
<EPS-PRIMARY> .33
<EPS-DILUTED> .33
</TABLE>
