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, 1997
( ) 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, 1997 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
April 30, 1997 was 6,535,367 shares.
<PAGE>
PART I
FINANCIAL INFORMATION
UNITED MOBILE HOMES, INC.
for the QUARTER ENDED
MARCH 31, 1997
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>
UNITED MOBILE HOMES, INC.
CONSOLIDATED BALANCE SHEETS
as of MARCH 31, 1997 and DECEMBER 31, 1996
March 31, December 31,
1997 1996
<S> <C> <C>
-ASSETS-
INVESTMENT PROPERTY AND EQUIPMENT
Land $ 5,927,506 $ 5,927,136
Site and Land Improvements 36,041,668 35,983,165
Buildings and Improvements 1,931,178 1,930,345
Rental Homes and Accessories 4,942,795 4,907,832
__________ __________
Total Investment Property 48,843,147 48,748,478
Equipment and Vehicles 2,159,641 2,163,179
__________ __________
Total Investment Property and Equip. 51,002,788 50,911,657
Accumulated Depreciation (21,402,451) (21,024,163)
__________ __________
Net Investment Property and Equipment 29,600,337 29,887,494
__________ __________
OTHER ASSETS
Cash and Cash Equivalents 413,341 1,195,095
Securities Available for Sale 2,664,133 1,441,037
Notes and Other Receivables 498,072 507,199
Unamortized Financing Costs 150,244 160,744
Prepaid Expenses 244,656 284,993
Land Development Costs 2,962,481 2,398,644
__________ __________
Total Other Assets 6,932,927 5,987,712
__________ __________
TOTAL ASSETS $ 36,533,264 $ 35,875,206
========== ==========
- -LIABILITIES & SHAREHOLDERS' EQUITY-
MORTGAGES PAYABLE $ 17,252,631 $ 17,351,030
__________ __________
OTHER LIABILITIES
Accounts Payable 165,562 206,426
Accrued Liabilities & Deposits 1,293,977 1,520,641
Tenant Security Deposits 374,897 370,964
__________ __________
Total Other Liabilities 1,834,436 2,098,031
__________ __________
TOTAL LIABILITIES 19,087,067 19,449,061
__________ __________
SHAREHOLDERS' EQUITY
Common Stock - $.10 par value per share
10,000,000 shares authorized,
6,533,367 and 6,433,676 issued and
outstanding, respectively 653,337 643,368
Additional Paid-In Capital 17,294,159 16,275,434
Unrealized Holding Gains on 123,948 76,501
Securities Available for Sale
Accumulated Deficit ( 625,247) ( 569,158)
__________ __________
TOTAL SHAREHOLDERS' EQUITY 17,446,197 16,426,145
__________ __________
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $ 36,533,264 $ 35,875,206
========== ==========
</TABLE>
3
<PAGE>
<TABLE>
UNITED MOBILE HOMES, INC.
CONSOLIDATED STATEMENTS OF INCOME
For the THREE MONTHS ended
MARCH 31, 1997 and 1996
1997 1996
<S> <C> <C>
Rental and Related Income $ 3,765,720 $ 3,561,274
Community Operating Expense 1,529,795 1,535,789
_________ _________
Income from Community Operations 2,235,925 2,025,485
General and Administrative 344,104 383,494
Interest Expense 335,426 376,043
Interest Income ( 39,025) ( 20,486)
Depreciation 519,720 492,133
Other Expenses 10,500 11,280
_________ _________
Income before Gains 1,065,200 783,021
On Sales of Assets
Gains on Sales of Assets 7,754 280,188
_________ _________
Net Income $ 1,072,954 $ 1,063,209
========= =========
Net Income Per Share $ .16 $ .18
========= =========
Weighted Average Shares 6,545,104 5,980,364
========= =========
</TABLE>
-UNAUDITED-
See Notes to Consolidated Financial Statements
4
<PAGE>
<TABLE>
UNITED MOBILE HOMES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
for the THREE MONTHS ended
MARCH 31, 1997 and 1996
1997 1996
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 1,072,954 $ 1,063,209
Non-Cash Adjustments
Depreciation 519,720 492,133
Amortization 10,500 11,280
Gain on Sales of Assets ( 7,754) ( 280,188)
Changes in Operating Assets
And Liabilities -
Notes and Other Receivables 9,127 ( 358,419)
Prepaid Expenses 40,337 4,405
Accounts Payable ( 40,864) 520,258
Accrued Liabilities & Deposits ( 226,664) 75,042
Tenant Security Deposits 3,933 23,512
_________ _________
Net Cash Provided by Operating Activities 1,381,289 1,551,232
_________ _________
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of Manufactured Home Communities -0- (2,013,706)
Purchase of Investment Property ( 309,485) ( 413,947)
And Equipment
Proceeds from Sales of Assets 84,676 411,035
Additions to Land Development ( 563,837) ( 209,655)
Purchase of Securities Available for Sale (1,175,649) ( 201,143)
_________ _________
Net Cash Used by Investing Activities (1,964,295) (2,427,416)
_________ _________
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Mortgages and Loans -0- 1,000,000
Principal Payments of Mortgages and Loans ( 98,399) (1,087,509)
Financing Costs on Debt -0- ( 15,862)
Proceeds from Dividend Reinvestment
Proceeds from Dividend Reinvestment
And Stock Purchase Plan 495,590 963,844
Proceeds from Exercise of Stock Options 89,250 -0-
Dividends Paid ( 685,189) ( 513,438)
Net Cash Provided (Used) by Financing
Activities ( 198,748) 347,035
_________ _________
NET DECREASE IN CASH AND CASH EQUIVALENTS ( 781,754) ( 529,149)
CASH & CASH EQUIVALENTS - BEGINNING 1,195,095 2,043,282
_________ _________
CASH & CASH EQUIVALENTS - ENDING $ 413,341 $ 1,514,133
========= =========
</TABLE>
5
<PAGE>
UNITED MOBILE HOMES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1997
(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, 1997 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, 1996 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 - DIVIDEND REINVESTMENT AND STOCK PURCHASE PLAN
On March 17, 1997, the Company paid $1,129,043 as a dividend of $.175 per
share to shareholders of record as of February 17, 1997.
On March 17, 1997, the Company received $939,444 from the Dividend
Reinvestment and Stock Purchase Plan (DRIP). There were 81,691 new shares
issued resulting in 6,533,367 shares outstanding.
NOTE 3 - EMPLOYEE STOCK OPTIONS
During the three months ended March 31, 1997, the following stock option
was granted:
Date of Number of Option Expiration
Grant Shares Price Date
1/03/97 25,000 $13.125 1/03/2002
During the three months ended March 31, 1997, three employees exercised
their stock options and purchased 18,000 shares for total proceeds of
$89,250.
As of March 31, 1997, there were 285,000 shares outstanding and 488,000
shares available under the Company's Stock Option Plans.
6
<PAGE>
NOTE 4 - RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In February 1997, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards No. 128, "Earnings Per Share"
(Statement 128). Statement 128 supersedes APB Opinion No. 15 "Earnings Per
Share" and specifies the computation, presentation, and disclosure
requirements for earning per share (EPS) for entities with publicly held
common stock or potential common stock. Statement 128 replaces Primary EPS
and Fully Diluted EPS with Basic EPS and Diluted EPS, respectively.
Statement 128 also requires dual presentation of Basic and Diluted EPS on
the face of the income statement for entities with complex capital
structures and a reconciliation of the information utilized to calculate
Basic EPS to that used to calculate Diluted EPS.
Statement 128 is effective for financial statements periods ending after
December 15, 1997. Earlier application is not permitted. After adoption,
all prior period EPS is required to be restated to conform with Statement
128. The Company expects that the adoption of Statement 128 will result in
Basic EPS being higher than Primary EPS and Diluted EPS will be
approximately the same as Fully Diluted EPS.
Statement of Financial Accounting Standards No. 129, "Disclosure of
Information about Capital Structure" (Statement 129) was issued in February
1997. Statement 129 is effective for periods ending after December 15,
1997. Statement 129 lists required disclosures about capital structure
that had been included in a number of separate statements and opinions of
authoritative accounting literature. As such, the adoption of Statement
129 is not expected to have a significant impact on the disclosures in
financial statements of the Company.
NOTE 5 - SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid during the three months ended March 31, 1997 and 1996 for
interest was $335,426 and $376,043, respectively.
During the three months ended March 31, 1997 and 1996, the Company had
dividend reinvestments of $443,854 and $364,467, 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-three
manufactured home communities. These manufactured home communities have
been generating increased gross revenues and increased operating income.
The Company generated $1,381,289 net cash provided by operating activities.
The Company received new capital of $939,444 through its Dividend
Reinvestment and Stock Purchase Plan (DRIP). The Company purchased
$1,175,649 of Securities Available for Sale. Mortgages Payable decreased
by $98,399 as a result of principal repayments.
MATERIAL CHANGES IN RESULTS OF OPERATIONS
Income from community operations increased by $210,440 to $2,235,925 for
the quarter ended March 31, 1997 as compared to $2,025,485 for the quarter
ended March 31, 1996. 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 $3,561,274
for the quarter ended March 31, 1996 to $3,765,720 for the quarter ended
March 31, 1997. This was a result of higher rents and the purchases of
Wood Valley and Spreading Oaks Village during 1996. Community operating
expenses decreased from $1,535,789 for the quarter ended March 31, 1996 to
$1,529,795 for the quarter ended March 31, 1997. Community operating
expenses decreased due to lower maintenance costs as a result of the mild
winter and promotional cost partially offset by the operating expenses of
the purchases of Wood Valley and Spreading Oaks. Interest expense
decreased from $376,043 for the quarter ended March 31, 1996 to $335,426
for the quarter ended March 31, 1997. This was primarily a result of
principal repayments.
Gains on Sales of Assets decreased from $280,188 for the three months ended
March 31, 1996 to $7,754 for the three months ended March 31, 1997. This
was primarily due to the sale of 5.5 acres of excess vacant land at a gain
of $290,303 in 1996.
LIQUIDITY AND CAPITAL RESOURCES
Net cash provided by operating activities decreased from $1,551,232 for the
three months ended March 31, 1996 to $1,381,289 for the three months ended
March 31, 1997. 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, 1997
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 1, 1997 By:/s/Samuel A. Landy
Samuel A. Landy,
President
DATE: May 1, 1997 By:/s/Anna T. Chew
Anna T. Chew,
Vice President and
Chief Financial Officer
11
<PAGE>
<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, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 413,341
<SECURITIES> 2,664,133
<RECEIVABLES> 624,499
<ALLOWANCES> 126,427
<INVENTORY> 0
<CURRENT-ASSETS> 3,820,202
<PP&E> 51,002,788
<DEPRECIATION> 21,402,451
<TOTAL-ASSETS> 36,533,264
<CURRENT-LIABILITIES> 1,834,436
<BONDS> 17,252,631
<COMMON> 653,337
0
0
<OTHER-SE> 16,792,860
<TOTAL-LIABILITY-AND-EQUITY> 36,533,264
<SALES> 0
<TOTAL-REVENUES> 3,812,499
<CGS> 0
<TOTAL-COSTS> 1,529,795
<OTHER-EXPENSES> 874,324
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 335,426
<INCOME-PRETAX> 1,072,954
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,072,954
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,072,954
<EPS-PRIMARY> .16
<EPS-DILUTED> .16
</TABLE>
