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, 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
March 31, 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
May 3, 1996 was 5,966,475 shares.
<PAGE>
PART I
FINANCIAL INFORMATION
UNITED MOBILE HOMES, INC.
for the QUARTER ENDED
MARCH 31, 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
<PAGE>
<TABLE>
<CAPTION>
UNITED MOBILE HOMES, INC.
CONSOLIDATED BALANCE SHEETS
as of MARCH 31, 1996 and DECEMBER 31, 1995
<S> <C> <C>
March 31, December 31,
1996 1995
- ASSETS -
INVESTMENT PROPERTY AND EQUIPMENT
Land $ 5,428,869 $ 5,194,402
Site and Land Improvements 34,115,741 32,456,359
Buildings & Improvements 1,767,532 1,755,407
Rental Homes & Accessories 4,246,068 3,912,918
___________ ___________
Total Investment Property 45,558,210 43,319,086
Equipment & Vehicles 1,946,692 1,853,398
___________ ___________
Total Investment Property & Equip. 47,504,902 45,172,484
Accumulated Depreciation (19,611,611) (19,145,830)
___________ ___________
Net Investment Property & Equipment 27,893,291 26,026,654
___________ ___________
OTHER ASSETS
Cash and Cash Equivalents 1,514,133 2,043,282
Equity Securities Available for Sale,
at Fair Value 209,161 -0-
Notes and Other Receivables 906,198 547,779
Unamortized Financing Costs 203,685 199,103
Prepaid Expenses 268,299 272,704
Land Development Costs 816,566 668,875
___________ ___________
Total Other Assets 3,918,042 3,731,743
___________ ___________
TOTAL ASSETS $ 31,811,333 $ 29,758,397
=========== ===========
- LIABILITIES & SHAREHOLDERS' EQUITY -
MORTGAGES PAYABLE $ 17,620,126 $ 17,707,635
___________ ___________
OTHER LIABILITIES
Accounts Payable 717,615 197,357
Accrued Liabilities & Deposits 1,318,728 1,243,686
Tenant Security Deposits 342,744 319,232
___________ ___________
Total Other Liabilities 2,379,087 1,760,275
___________ ___________
TOTAL LIABILITIES 19,999,213 19,467,910
___________ ___________
SHAREHOLDERS' EQUITY
Common Stock - $.10 par value per share,
10,000,000 shares authorized, 5,966,475
and 5,850,631 issued and
outstanding, respectively 596,648 585,063
Additional Paid-In Capital 11,689,943 10,373,217
Unrealized Holding Gains on Equity 8,018 -0-
Securities Available for Sale
Accumulated Deficit ( 482,489) (667,793)
__________ __________
TOTAL SHAREHOLDERS' EQUITY 11,812,120 10,290,487
__________ __________
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $ 31,811,333 $ 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 MONTHS ended
MARCH 31, 1996 and 1995
1996 1995
<S> <C> <C>
Rental and Related Income $ 3,561,274 $ 3,247,040
Park Operating Expense 1,535,789 1,407,547
_________ _________
Income from Park Operations 2,025,485 1,839,493
General and Administrative 383,494 345,754
Interest Expense 376,043 442,099
Interest Income ( 20,486) ( 24,180)
Depreciation Expense 492,133 468,937
Other Expenses 11,280 18,159
_________ _________
Income before Gains on
Sales of Assets 783,021 588,724
Gains on Sales of Assets 280,188 1,216
_________ _________
Net Income $ 1,063,209 $ 589,940
========= =========
Net Income Per Share $ .18 $ .11
========= =========
Weighted Average Shares 5,980,364 5,532,798
========= =========
-UNAUDITED-
See Notes to Consolidated Financial Statements
4
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
UNITED MOBILE HOMES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
for the THREE MONTHS ended MARCH 31, 1996 and 1995
1996 1995
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 1,063,209 $ 589,940
Non-Cash Adjustments
Depreciation & Amortization 503,413 487,096
Gain on Sales of Assets ( 280,188) ( 1,216)
Changes in Operating Assets
and Liabilities -
Notes and Other Receivables ( 358,419) 214,973
Prepaid Expenses 4,405 ( 22,991)
Accounts Payable 520,258 ( 54,646)
Accrued Liabilities & Deposits 75,042 ( 32,435)
Tenant Security Deposits 23,512 13,178
_________ _________
Net Cash Provided by Operating
Activities 1,551,232 1,193,899
_________ _________
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of Manufactured Home Communities (2,013,706) (1,810,906)
Purchase of Minority Interest -0- ( 132,600)
Purchase of Investment Property
and Equipment ( 413,947) ( 296,549)
Proceeds from Sales of Assets 411,035 62,658
Additions to Land Development ( 209,655) ( 180,217)
Purchase of Equity Securities
Available for Sale ( 201,143) -0-
_________ _________
Net Cash Used by Investing Activities (2,427,416) (2,357,614)
_________ _________
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Mortgages and Loans 1,000,000 3,700,000
Principal Payments of Mortgages
and Loans (1,087,509) (2,126,507)
Financing Costs on Debt ( 15,862) ( 56,869)
Proceeds from Dividend Reinvestment
and Stock Purchase Plan 963,844 238,871
Dividends Paid ( 513,438) ( 380,364)
_________ _________
Net Cash Provided by Financing Activities 347,035 1,375,131
_________ _________
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS ( 529,149) 211,416
CASH & CASH EQUIVALENTS - BEGINNING 2,043,282 357,547
_________ _________
CASH & CASH EQUIVALENTS - ENDING $ 1,514,133 $ 568,963
========= =========
-UNAUDITED-
See Accompanying Notes to Consolidated Financial Statements
5
</TABLE>
<PAGE>
UNITED MOBILE HOMES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 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
March 31, 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 March 15, 1996, the Company paid $877,905 as a dividend of $.15 per
share to shareholders of record as of February 15, 1996.
On March 15, 1996, the Company received $1,328,311 from the Dividend
Reinvestment and Stock Purchase Plan (DRIP). There were 115,844 new shares
issued resulting in 5,966,475 shares outstanding.
NOTE 4 - EMPLOYEE STOCK OPTIONS
During the three months ended March 31, 1996, the following stock option
was granted:
Date of Number of Option Expiration
Grant Shares Price Date
1/10/96 25,000 $10.625 1/10/2001
As of March 31, 1996, there were 551,000 shares available under the
Company's 1994 Stock Option Plan.
6
<PAGE>
NOTE 5 - ACQUISITIONS AND DISPOSITIONS
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.
NOTE 6 - SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid during the three months ended March 31, 1996 and 1995 for
interest was $376,043 and $452,374, respectively.
During the three months ended March 31, 1996, land development costs of
$61,964 were transferred to investment property and equipment and placed in
service.
During the three months ended March 31, 1996 and 1995, the Company had
dividend reinvestments of $364,467 and $306,655, respectively, which
required no cash transfers.
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 $1,551,232 cash from operations. The Company
received new capital of $1,328,311 through its Dividend Reinvestment and
Stock Purchase Plan (DRIP). Mortgages Payable decreased by $87,509 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 park operations increased by $185,992 to $2,025,485 for the
quarter ended March 31, 1996 as compared to $1,839,493 for the quarter
ended March 31, 1995. This represents a continuing trend of rising income
from park operations. The Company has been raising rental rates by
approximately 5% annually. Rental and related income rose from $3,247,040
for the quarter ended March 31, 1995 to $3,561,274 for the quarter ended
March 31, 1996. This was a result of higher rents, the addition of rental
homes and the purchase of Wood Valley. Park operating expenses rose from
$1,407,547 for the quarter ended March 31, 1995 to $1,535,789 for the
quarter ended March 31, 1996. Park operating expenses increased due to
higher insurance, promotional costs and the purchase of Wood Valley.
Interest expense decreased from $442,099 for the quarter ended March 31,
1995 to $376,043 for the quarter ended March 31, 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 9% at March 31, 1995.
Gains on Sales of Assets increased from $1,216 for the three months ended
March 31, 1995 to $280,188 at March 31, 1996. This was primarily due to
the sale of 5.5 acres of excess vacant land at a gain of $290,303.
LIQUIDITY AND CAPITAL RESOURCES
Net cash provided by operating activities increased during the three months
ended March 31, 1996 to $1,551,232 compared to $1,193,899 generated in the
three month period ended March 31, 1995. 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.
8
<PAGE>
PART II
OTHER INFORMATION
UNITED MOBILE HOMES, INC.
for the QUARTER ENDED
March 31, 1996
9
<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
10
<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: May 6, 1996 By:/s/Samuel A. Landy
Samuel A. Landy,
President
DATE: May 6, 1996 By:/s/Anna T. Chew
Anna T. Chew,
Vice President and
Chief Financial Officer
11
<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 MARCH 31, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 1,514,133
<SECURITIES> 209,161
<RECEIVABLES> 1,012,908
<ALLOWANCES> 106,710
<INVENTORY> 0
<CURRENT-ASSETS> 2,897,791
<PP&E> 47,504,902
<DEPRECIATION> 19,611,611
<TOTAL-ASSETS> 31,811,333
<CURRENT-LIABILITIES> 2,379,087
<BONDS> 17,620,126
<COMMON> 596,648
0
0
<OTHER-SE> 11,215,472
<TOTAL-LIABILITY-AND-EQUITY> 31,811,333
<SALES> 0
<TOTAL-REVENUES> 3,861,948
<CGS> 0
<TOTAL-COSTS> 1,535,789
<OTHER-EXPENSES> 886,907
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 376,043
<INCOME-PRETAX> 1,063,209
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,063,209
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,063,209
<EPS-PRIMARY> .18
<EPS-DILUTED> .18
</TABLE>
