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, 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
June 30, 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 (732) 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
July 31, 1997 was 6,646,755 shares.
<PAGE>
UNITED MOBILE HOMES, INC.
for the QUARTER ENDED
JUNE 30, 1997
PART I - FINANCIAL INFORMATION Page No.
Item 1 - Financial Statements
Consolidated Balance Sheets..................... 3
Consolidated Statements of Income............... 4
Consolidated Statements of Cash Flows........... 5
Notes to Consolidated Financial Statements...... 6-8
Item 2 - Management Discussion and Analysis of
Financial Conditions and Results for Operations. 9
PART II - OTHER INFORMATION............................. 10
SIGNATURES.................................... 11
<PAGE>
<TABLE>
UNITED MOBILE HOMES, INC.
CONSOLIDATED BALANCE SHEETS
as of JUNE 30, 1997 and DECEMBER 31, 1996
June 30, December 31,
1997 1996
<S> <C> <C>
-ASSETS-
INVESTMENT PROPERTY AND EQUIPMENT
Land $ 5,927,506 $ 5,927,136
Site and Land Improvements 36,891,385 35,983,165
Buildings and Improvements 1,939,331 1,930,345
Rental Homes and Accessories 5,272,198 4,907,832
___________ ___________
Total Investment Property 50,030,420 48,748,478
Equipment and Vehicles 2,208,201 2,163,179
___________ ___________
Total Investment Property and Equip. 52,238,621 50,911,657
Accumulated Depreciation (21,904,979) (21,024,163)
___________ ___________
Net Investment Property and Equipment 30,333,642 29,887,494
___________ ___________
OTHER ASSETS
Cash and Cash Equivalents 203,184 1,195,095
Securities Available for Sale 3,023,358 1,441,037
Notes and Other Receivables 614,584 507,199
Unamortized Financing Costs 139,744 160,744
Prepaid Expenses 72,542 284,993
Land Development Costs 3,316,113 2,398,644
___________ ___________
Total Other Assets 7,369,525 5,987,712
___________ ___________
TOTAL ASSETS $ 37,703,167 $ 35,875,206
=========== ===========
- -LIABILITIES & SHAREHOLDERS' EQUITY-
MORTGAGES PAYABLE $ 17,155,297 $ 17,351,030
___________ ___________
OTHER LIABILITIES
Accounts Payable 98,001 206,426
Loans Payable 300,000 -0-
Accrued Liabilities & Deposits 1,330,587 1,520,641
Tenant Security Deposits 384,414 370,964
___________ ___________
Total Other Liabilities 2,113,002 2,098,031
___________ ___________
TOTAL LIABILITIES 19,268,299 19,449,061
___________ ___________
SHAREHOLDERS' EQUITY
Common Stock - $.10 par value per
share 10,000,000 shares authorized,
6,641,755 and 6,433,676 issued and
outstanding, respectively 664,176 643,368
Additional Paid-In Capital 18,437,960 16,275,434
Unrealized Holding Gains on
Securities Available for Sale 127,426 76,501
Accumulated Deficit ( 794,694) ( 569,158)
___________ ___________
TOTAL SHAREHOLDERS' EQUITY 18,434,868 16,426,145
___________ ___________
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $ 37,703,167 $ 35,875,206
=========== ===========
</TABLE>
3
<PAGE>
<TABLE>
UNITED MOBILE HOMES, INC.
CONSOLIDATED STATEMENTS OF INCOME
For the THREE AND SIX MONTHS ended
JUNE 30, 1997 and 1996
THREE MONTHS SIX MONTHS
6/30/97 6/30/96 6/30/97 6/30/96
<S> <C> <C> <C> <C>
Rental and Related Income $3,804,373 $3,582,925 $7,570,093 $7,144,199
Community Operating Expense 1,693,851 1,498,566 3,223,646 3,034,355
_________ _________ _________ _________
Income from Community 2,110,522 2,084,359 4,346,447 4,109,844
Operations
General and Administrative 328,821 368,962 672,925 752,456
Interest Expense 337,604 339,294 673,030 715,337
Interest Income ( 53,785) ( 20,495) ( 92,810) ( 40,981)
Depreciation 526,365 497,959 1,046,085 990,092
Other Expenses 10,500 13,800 21,000 25,080
_________ _________ _________ _________
Income before Gains 961,017 884,839 2,026,217 1,667,860
On Sales of Assets
Gains on Sales of Assets 14,277 32,015 22,031 312,203
_________ _________ _________ _________
Net Income $ 975,294 $ 916,854 $2,048,248 $1,980,063
========= ========= ========= =========
Net Income Per Share .15 .15 .31 .33
========= ========= ========= =========
Weighted Average Shares 6,636,365 6,116,170 6,583,720 6,051,635
========= ========= ========= =========
-UNAUDITED-
See Notes to Consolidated Financial Statements
</TABLE>
4
<PAGE>
<TABLE>
UNITED MOBILE HOMES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
for the SIX MONTHS ended
JUNE 30, 1997 and 1996
1997 1996
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 2,048,248 $ 1,980,063
Non-Cash Adjustments
Depreciation 1,046,085 990,092
Amortization 21,000 25,080
Gain on Sales of Assets ( 22,031) ( 312,203)
Changes in Operating Assets
And Liabilities -
Notes and Other Receivables ( 107,385) ( 447,073)
Prepaid Expenses 212,451 43,876
Accounts Payable ( 108,425) ( 83,110)
Accrued Liabilities & Deposits ( 190,054) 120,695
Tenant Security Deposits 13,450 27,522
_________ _________
Net Cash Provided by Operating Activities 2,913,339 2,344,942
_________ _________
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of Manufactured Home Communities -0- (2,013,706)
Purchase of Investment Property (1,125,556) (1,068,206)
And Equipment
Proceeds from Sales of Assets 228,002 533,717
Additions to Land Development (1,490,117) ( 858,635)
Purchase of Securities Available for Sale (1,531,396) ( 647,189)
_________ _________
Net Cash Used by Investing Activities (3,919,067) (4,054,019)
_________ _________
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Mortgages and Loans 300,000 1,000,000
Principal Payments of Mortgages and Loans ( 195,733) (1,177,264)
Financing Costs on Debt -0- ( 15,862)
Proceeds from Dividend Reinvestment
And Stock Purchase Plan 1,072,796 2,061,698
Proceeds from Exercise of Stock Options 215,750 -0-
Dividends Paid (1,378,996) (1,047,305)
_________ _________
Net Cash Provided by Financing Activities 13,817 821,267
_________ _________
NET DECREASE IN CASH AND CASH EQUIVALENTS ( 991,911) ( 887,810)
CASH & CASH EQUIVALENTS - BEGINNING 1,195,095 2,043,282
_________ _________
CASH & CASH EQUIVALENTS - ENDING $ 203,184 $ 1,155,472
========= =========
</TABLE>
5
<PAGE>
UNITED MOBILE HOMES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 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
June 30, 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 June 16, 1997, the Company paid $1,144,741 as a dividend of $.175 per
share to shareholders of record as of May 15, 1997. The total dividends
paid for the six months ended June 30, 1997 amounted to $2,273,784.
On June 16, 1997, the Company received $1,028,140 from the Dividend
Reinvestment and Stock Purchase Plan (DRIP). There were 90,388 new shares
issued resulting in 6,641,755 shares outstanding. The total amount received
from the DRIP for the six months ended June 30, 1997 amounted to
$1,967,584.
NOTE 3 - EMPLOYEE STOCK OPTIONS
During the six months ended June 30, 1997, the following stock options were
granted:
Date of Number of Number of Option Expiration
Grant Employees Shares Price Date
1/03/97 1 25,000 $13.125 1/03/2002
6/25/97 8 32,500 11.500 6/25/2002
During the six months ended June 30, 1997, six employees exercised their
stock options and purchased 36,000 shares for total proceeds of $215,750.
As of June 30, 1997, there were 299,500 shares outstanding and 455,500
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 earnings 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.
In June 1997, FASB issued Statement of Financial Accounting Standards No.
130, "Reporting Comprehensive Income" (Statement 130). Statement 130
establishes standards for reporting and display of comprehensive income and
its components in a full set of general purpose financial statements.
Under Statement 130, comprehensive income is divided into net income and
other comprehensive income. Other comprehensive income includes items
previously recorded directly in equity, such as unrealized gains or losses
on securities available for sale. Statement 130 is effective for interim
and annual periods beginning after December 15, 1997. Comparative
financial statements provided for earlier periods are required to be
reclassified to reflect application of the provisions of the Statement.
In June 1997, FASB issued Statement of Financial Accounting Standards No.
131, Disclosures about Segments of an Enterprise and Related Information
(Statement 131). Statement 131 establishes standards for the way public
business enterprises are to report information about operating segments in
annual financial statements and requires those enterprises to report
selected financial information about operating segments in interim
financial reports to shareholders. Statement 131 is effective for
financial statements for periods beginning after December 15, 1997.
7
<PAGE>
NOTE 5 - SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid during the six months ended June 30, 1997 and 1996 for interest
was $673,030 and $715,337, respectively.
During the six months ended June 30, 1997 and 1996, land development costs
of $572,648 and $88,478, respectively, were transferred to investment
property and equipment and placed in service.
During the six months ended June 30, 1997 and 1996, the Company had
dividend reinvestments of $894,788 and $725,572, respectively, which
required no cash transfers.
8
<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 $2,913,339 net cash provided by operating activities.
The Company received new capital of $1,967,584 through its Dividend
Reinvestment and Stock Purchase Plan (DRIP). The Company purchased
$1,531,396 of Securities Available for Sale. Mortgages Payable decreased
by $195,733 as a result of principal repayments. Loans payable increased
by $300,000.
MATERIAL CHANGES IN RESULTS OF OPERATIONS
Income from community operations increased by $26,163 to $2,110,522 for the
quarter ended June 30, 1997 as compared to $2,084,359 for the quarter ended
June 30, 1996. Income from community operations increased by $236,603 to
$4,346,447 for the six months ended June 30, 1997 compared to $4,109,844
for the six months ended June 30, 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 $3,582,925 for the quarter ended June 30, 1996 to $3,804,373 for the
quarter ended June 30, 1997. Rental and related income rose from $7,144,199
for the six months ended June 30, 1996 to $7,570,093 for the six months
ended June 30, 1997. This was a result of higher rents and the purchases
of Wood Valley and Spreading Oaks Village during 1996. Community operating
expenses increased from $1,498,566 for the quarter ended June 30, 1996 to
$1,693,851 for the quarter ended June 30, 1997. Community operating
expenses rose from $3,034,355 for the six months ended June 30, 1996 to
$3,223,646 for the six months ended June 30, 1997. Community operating
expenses increased due to the operating expenses of the purchases of Wood
Valley and Spreading Oaks. Interest expense remained relatively stable for
the quarter ended June 30, 1997 compared to the quarter ended June 30,
1996. Interest expense decreased from $715,337 for the six months ended
June 30, 1996 to $673,030 for the six months ended June 30, 1997. This was
primarily a result of principal repayments.
Gains on Sales of Assets decreased from $312,203 for the six months ended
June 30, 1996 to $22,031 for the six months ended June 30, 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 increased from $2,344,942 for the
six months ended June 30, 1996 to $2,913,339 for the six months ended June
30, 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.
9
<PAGE>
PART II
OTHER INFORMATION
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 29, 1997 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
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: August 4, 1997 By:/s/Samuel A. Landy
Samuel A. Landy,
President
DATE: August 4, 1997 By:/s/Anna T. Chew
Anna T. Chew,
Vice President and
Chief Financial Officer
11
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<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, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 06-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 203,184
<SECURITIES> 3,023,358
<RECEIVABLES> 763,394
<ALLOWANCES> 148,810
<INVENTORY> 0
<CURRENT-ASSETS> 3,913,668
<PP&E> 52,238,621
<DEPRECIATION> 21,904,979
<TOTAL-ASSETS> 37,703,167
<CURRENT-LIABILITIES> 2,113,002
<BONDS> 17,155,297
<COMMON> 664,176
0
0
<OTHER-SE> 17,770,692
<TOTAL-LIABILITY-AND-EQUITY> 37,703,167
<SALES> 0
<TOTAL-REVENUES> 7,684,934
<CGS> 0
<TOTAL-COSTS> 3,223,646
<OTHER-EXPENSES> 1,740,010
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 673,030
<INCOME-PRETAX> 2,048,248
<INCOME-TAX> 0
<INCOME-CONTINUING> 2,048,248
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,048,248
<EPS-PRIMARY> .31
<EPS-DILUTED> .31
</TABLE>
