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, 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
September 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
November 1, 1996 was 6,230,340 shares.
<PAGE>
PART I
FINANCIAL INFORMATION
UNITED MOBILE HOMES, INC.
for the QUARTER ENDED
SEPTEMBER 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 SEPTEMBER 30, 1996 and DECEMBER 31, 1995
September 30, December 31,
1996 1995
<S> <C> <C>
- ASSETS -
INVESTMENT PROPERTY AND EQUIPMENT
Land $ 5,516,369 $ 5,194,402
Site and Land Improvements 35,325,064 32,456,359
Buildings & Improvements 1,927,106 1,755,407
Rental Homes & Accessories 4,922,625 3,912,918
---------- ----------
Total Investment Property 47,691,164 43,319,086
Equipment & Vehicles 2,095,106 1,853,398
---------- ----------
Total Investment Property & Equip. 49,786,270 45,172,484
Accumulated Depreciation (20,539,316) (19,145,830)
---------- ----------
Net Investment Property & Equipment 29,246,954 26,026,654
---------- ----------
OTHER ASSETS
Cash and Cash Equivalents 912,967 2,043,282
Equity Securities Available for Sale,
at Fair Value 790,644 -0-
Notes and Other Receivables 616,054 547,779
Unamortized Financing Costs 176,085 199,103
Prepaid Expenses 350,387 272,704
Land Development Costs 2,191,016 668,875
---------- ----------
Total Other Assets 5,037,153 3,731,743
---------- ----------
TOTAL ASSETS $ 34,284,107 $ 29,758,397
========== ==========
- LIABILITIES & SHAREHOLDERS' EQUITY -
MORTGAGES PAYABLE $ 17,441,871 $ 17,707,635
---------- ----------
OTHER LIABILITIES
Accounts Payable 174,352 197,357
Loans Payable 300,000 -0-
Accrued Liabilities & Deposits 1,536,582 1,243,686
Tenant Security Deposits 354,618 319,232
---------- ----------
Total Other Liabilities 2,365,552 1,760,275
---------- ----------
TOTAL LIABILITIES 19,807,423 19,467,910
---------- ----------
SHAREHOLDERS' EQUITY
Common Stock - $.10 par value per share,
10,000,000 shares authorized, 6,230,340
and 5,850,631 issued and
outstanding, respectively 623,034 585,063
Additional Paid-In Capital 14,434,155 10,373,217
Unrealized Holding Gains on Equity 11,783 -0-
Securities Available for Sale
Accumulated Deficit ( 592,288) (667,793)
---------- ----------
TOTAL SHAREHOLDERS' EQUITY 14,476,684 10,290,487
---------- ----------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $ 34,284,107 $ 29,758,397
========== ==========
-UNAUDITED-
See Accompanying Notes to Consolidated Financial Statements
3
</TABLE>
<TABLE>
<CAPTION>
UNITED MOBILE HOMES, INC.
CONSOLIDATED STATEMENTS OF INCOME
for the THREE AND NINE MONTHS ended
SEPTEMBER 30, 1996 and 1995
THREE MONTHS NINE MONTHS
9/30/96 9/30/95 9/30/96 9/30/95
<S> <C> <C> <C> <C>
Rental and Related Income $ 3,671,970 $ 3,382,423 $10,816,169 $ 9,934,228
Community Operating Expense 1,703,102 1,543,707 4,737,457 4,441,691
--------- --------- --------- ---------
Income from Community 1,968,868 1,838,716 6,078,712 5,492,537
Operations
General and Administrative 372,628 328,238 1,125,084 1,008,485
Interest Expense 346,211 406,977 1,061,548 1,298,208
Interest Income ( 25,054) ( 9,234) ( 66,035) ( 45,766)
Depreciation 497,357 460,831 1,487,449 1,400,616
Other Expenses 13,800 18,467 38,880 54,785
--------- --------- --------- ---------
Income before Gains 763,926 633,437 2,431,786 1,776,209
on Sales of Assets
Gains on Sales of Assets 20,208 ( 3,696) 332,411 2,350
--------- --------- --------- ---------
Net Income $ 784,134 $ 629,741 $ 2,764,197 $ 1,778,559
========= ========= ========= =========
Net Income Per Share $ .12 $ .11 $ .45 $ .31
========= ========= ========= =========
Weighted Average Shares 6,251,609 5,735,296 6,114,750 5,643,668
========= ========= ========= =========
-UNAUDITED-
See Notes to Consolidated Financial Statements
4
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
UNITED MOBILE HOMES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
for the NINE MONTHS ended
SEPTEMBER 30, 1996 and 1995
1996 1995
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 2,764,197 $ 1,778,559
Non-Cash Adjustments
Depreciation & Amortization 1,526,329 1,455,401
Gain on Sales of Assets ( 332,411) ( 2,350)
Changes in Operating Assets
and Liabilities -
Notes and Other Receivables ( 68,275) 120,558
Prepaid Expenses ( 77,683) ( 100,562)
Accounts Payable ( 23,005) 43,586
Accrued Liabilities & Deposits 292,896 380,804
Tenant Security Deposits 35,386 21,649
--------- ---------
Net Cash Provided by Operating
Activities 4,117,434 3,697,645
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of Manufactured Home Communities (3,435,506) (2,010,906)
Purchase of Minority Interest -0- ( 132,600)
Purchase of Investment Property
and Equipment (1,416,000) (1,207,923)
Proceeds from Sales of Assets 564,646 237,925
Additions to Land Development (1,610,619) ( 683,100)
Purchase of Equity Securities
Available for Sale ( 778,861) -0-
--------- ---------
Net Cash Used by Investing Activities (6,676,340) (3,796,604)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Mortgages and Loans 1,300,000 3,700,000
Principal Payments of Mortgages
and Loans (1,265,764) (3,713,168)
Financing Costs on Debt ( 15,862) ( 75,340)
Proceeds from Dividend Reinvestment
and Stock Purchase Plan 3,016,568 1,207,453
Dividends Paid (1,606,351) (1,152,578)
--------- ---------
Net Cash Provided (Used) by
Financing Activities 1,428,591 ( 33,633)
--------- ---------
NET DECREASE IN CASH
AND CASH EQUIVALENTS (1,130,315) ( 132,592)
CASH & CASH EQUIVALENTS - BEGINNING 2,043,282 357,547
--------- ---------
CASH & CASH EQUIVALENTS - ENDING $ 912,967 $ 224,955
========= =========
-UNAUDITED-
See Accompanying Notes to Consolidated Financial Statements
5
</TABLE>
<PAGE>
UNITED MOBILE HOMES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 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
September 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 (See Note 5). This
mortgage was repaid in March 1996.
In September 1996, the Company used $300,000 of its line of credit. As of
September 30, 1996, $200,000 was still available.
NOTE 3 - DIVIDEND REINVESTMENT AND STOCK PURCHASE PLAN
On September 16, 1996, the Company paid $915,815 as a dividend of $.15 per
share to shareholders of record as of August 15, 1996. The total dividends
paid for the nine months ended September 30, 1996, amounted to $2,688,692.
On September 16, 1996, the Company received $1,311,639 from the Dividend
Reinvestment and Stock Purchase Plan (DRIP). There were 124,918 new shares
issued resulting in 6,230,340 shares outstanding. The total amount
received from the DRIP for the nine months ended September 30, 1996
amounted to $4,098,909.
NOTE 4 - EMPLOYEE STOCK OPTIONS
During the nine months ended September 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
6
<PAGE>
NOTE 4 - Continued
As of September 30, 1996, there were 335,000 shares outstanding and 513,000
shares available under the Company's Stock Option Plans.
NOTE 5 - ACQUISITIONS, DISPOSITIONS AND EXPANSIONS
On January 10, 1996, the Company acquired Wood Valley 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.
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, including closing
costs totalled $1,421,800. This purchase was based on an independent
appraisal of fair market value.
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 nine months ended September 30, 1996 and 1995 for
interest was $1,061,548 and $1,309,320, respectively.
During the nine months ended September 30, 1996, land development costs of
$88,478 were transferred to investment property and equipment and placed in
service.
During the nine months ended September 30, 1996 and 1995, the Company had
dividend reinvestments of $1,082,341 and $938,751, respectively, which
required no cash transfers.
NOTE 7 - SUBSEQUENT EVENTS
On October 11, 1996, the Company purchased 65 acres of vacant land adjacent
to Fairview Manor, the Company's manufactured home community in Vineland,
New Jersey. The purchase price was approximately $390,000.
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-three
manufactured home communities. These manufactured home communities have
been generating increased gross revenues and increased operating income.
The Company generated $4,117,434 cash from operations. The Company
received new capital of $4,098,909 through its Dividend Reinvestment and
Stock Purchase Plan (DRIP). Mortgages Payable decreased by $265,764 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 (see Note
5).
MATERIAL CHANGES IN RESULTS OF OPERATIONS
Income from community operations increased by $130,152 to $1,968,868 for
the quarter ended September 30, 1996 as compared to $1,838,716 for the
quarter ended September 30, 1995. Income from community operations
increased by $586,175 to $6,078,712 for the nine months ended September 30,
1996 compared to $5,492,537 for the nine months ended September 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 $3,382,423 for the quarter
ended September 30, 1995 to $3,671,970 for the quarter ended September 30,
1996. Rental and related income rose from $9,934,228 for the nine months
ended September 30, 1995 to $10,816,169 for the nine months ended September
30, 1996. This was a result of higher rents, the addition of rental homes
and the purchases of Wood Valley and Spreading Oaks. Community operating
expenses rose from $1,543,707 for the quarter ended September 30, 1995 to
$1,703,102 for the quarter ended September 30, 1996. Community operating
expenses rose from $4,441,691 for the nine months ended September 30, 1995
to $4,737,457 for the nine months ended September 30, 1996. Community
operating expenses increased due to higher insurance, promotional costs and
the purchases of Wood Valley and Spreading Oaks. Interest expense
decreased from $406,977 for the quarter ended September 30, 1995 to
$346,211 for the quarter ended September 30, 1996. Interest expense
decreased from $1,298,208 for the nine months ended September 30, 1995 to
$1,061,548 for the nine months ended September 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 8.75% at September 30, 1995.
Gains on Sales of Assets increased from $2,350 for the nine months ended
September 30, 1995 to $332,411 for the nine months ended September 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 increased from $3,697,645 for the
nine months ended September 30, 1995 to $4,117,434 for the nine months
ended September 30, 1996. 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
September 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 - 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
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: November 6, 1996 By:/s/Samuel A. Landy
Samuel A. Landy,
President
DATE: November 6, 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 SEPTEMBER 30, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 912,967
<SECURITIES> 790,644
<RECEIVABLES> 750,156
<ALLOWANCES> 134,102
<INVENTORY> 0
<CURRENT-ASSETS> 2,670,052
<PP&E> 49,786,270
<DEPRECIATION> 20,539,316
<TOTAL-ASSETS> 34,284,107
<CURRENT-LIABILITIES> 2,365,552
<BONDS> 17,441,871
<COMMON> 623,034
0
0
<OTHER-SE> 13,853,650
<TOTAL-LIABILITY-AND-EQUITY> 34,284,107
<SALES> 0
<TOTAL-REVENUES> 11,214,615
<CGS> 0
<TOTAL-COSTS> 4,737,457
<OTHER-EXPENSES> 2,651,413
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,061,548
<INCOME-PRETAX> 2,764,197
<INCOME-TAX> 0
<INCOME-CONTINUING> 2,764,197
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,764,197
<EPS-PRIMARY> .45
<EPS-DILUTED> .45
</TABLE>
