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, 1998
( ) 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, 1998 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
May 1, 1998 was 6,993,573 shares.
<PAGE>
UNITED MOBILE HOMES, INC.
for the QUARTER ENDED
MARCH 31, 1998
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...... 6-7
Item 2 - Management Discussion and Analysis of
Financial Conditions and Results for Operations. 8
PART II - OTHER INFORMATION 9
SIGNATURES 10
-2-
<PAGE>
<TABLE>
UNITED MOBILE HOMES, INC.
CONSOLIDATED BALANCE SHEETS
As of March 31, 1998 and DECEMBER 31, 1997
March 31, December 31,
1998 1997
<S> <C> <C>
- ASSETS -
INVESTMENT PROPERTY AND EQUIPMENT
Land $ 6,351,506 $ 6,351,506
Site and Land Improvements 44,222,851 43,927,856
Buildings and Improvements 2,640,811 2,592,125
Rental Homes and Accessories 5,592,142 5,339,857
---------- ----------
Total Investment Property 58,807,310 58,211,344
Equipment and Vehicles 2,486,678 2,416,402
---------- ----------
Total Investment Property and Equipment 61,293,988 60,627,746
Accumulated Depreciation (23,467,211) (22,918,677)
---------- ----------
Net Investment Property and Equipment 37,826,777 37,709,069
---------- ----------
OTHER ASSETS
Cash and Cash Equivalents 595,797 191,319
Securities Available for Sale 4,190,754 3,547,236
Notes and Other Receivables 755,911 678,280
Unamortized Financing Costs 164,660 172,694
Prepaid Expenses 192,577 109,415
Land Development Costs 1,486,682 1,191,246
---------- ----------
Total Other Assets 7,386,381 5,890,190
---------- ----------
TOTAL ASSETS $ 45,213,158 $ 43,599,259
========== ==========
-LIABILITIES AND SHAREHOLDERS' EQUITY-
MORTGAGES PAYABLE $ 19,988,243 $ 20,111,023
__________ __________
OTHER LIABILITIES
Accounts Payable 306,845 222,474
Loans Payable 604,665 578,973
Accrued Liabilities and Deposits 1,577,697 1,477,855
Tenant Security Deposits 389,334 378,393
---------- ----------
Total Other Liabilities 2,878,541 2,657,695
---------- ----------
TOTAL LIABILITIES 22,866,784 22,768,718
---------- ----------
SHAREHOLDERS' EQUITY
Common Stock - $.10 par value per share
10,000,000 shares authorized,
6,993,573 and 6,865,312 issued and
outstanding, respectively 699,357 686,531
Additional Paid-In Capital 21,920,017 20,572,786
Accumulated Other Comprehensive Income 546,680 239,017
Accumulated Deficit ( 819,680) ( 667,793)
---------- ----------
Total Shareholders' Equity 22,346,374 20,830,541
---------- ----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 45,213,158 $ 43,599,259
========== ==========
</TABLE>
-UNAUDITED-
See Notes to Consolidated Financial Statements
-3-
<PAGE>
<TABLE>
UNITED MOBILE HOMES, INC.
CONSOLIDATED STATEMENTS OF INCOME
For the THREE MONTHS ended
MARCH 31, 1998 and 1997
1998 1997
<S> <C> <C>
Rental and Related Income $ 4,118,835 $ 3,765,720
Community Operating Expense 1,816,336 1,529,795
--------- ---------
Income from Community 2,302,499 2,235,925
Operations
General and Administrative 356,174 344,104
Interest Expense 372,121 335,426
Interest Income ( 91,895) ( 39,025)
Depreciation 600,672 519,720
Other Expenses 13,200 10,500
_________ _________
Income before (Loss) Gain
On Sales of Assets 1,052,227 1,065,200
(Loss) Gain on Sales
of Assets ( 1,124) 7,754
--------- ---------
Net Income $ 1,051,103 $ 1,072,954
========= =========
Net Income Per Share -
Basic $ .15 $ .17
========== ==========
Diluted $ .15 $ .16
========== ==========
Weighted Average Shares -
Basic 6,900,252 6,465,099
========= =========
Diluted 6,947,147 6,545,104
========= =========
</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, 1998 and 1997
1998 1997
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 1,051,103 $ 1,072,954
Non-Cash Adjustments
Depreciation 600,672 519,720
Amortization 13,200 10,500
Loss (Gain) on Sales of Assets 1,124 ( 7,754)
Changes in Operating Assets
And Liabilities -
Notes and Other Receivables ( 77,631) 9,127
Prepaid Expenses ( 83,162) 40,337
Accounts Payable 84,371 ( 40,864)
Accrued Liabilities & Deposits 99,842 ( 226,664)
Tenant Security Deposits 10,941 3,933
--------- ---------
Net Cash Provided by Operating Activities 1,700,460 1,381,289
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of Investment Property
And Equipment ( 481,204) ( 309,485)
Proceeds from Sales of Assets 11,700 84,676
Additions to Land Development ( 545,436) ( 563,837)
Purchase of Securities Available for Sale ( 335,855) (1,175,649)
--------- ---------
Net Cash Used by Investing Activities (1,350,795) (1,964,295)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Mortgages and Loans 25,692 -0-
Principal Payments of Mortgages and Loans ( 122,780) ( 98,399)
Financing Costs on Debt ( 5,166) -0-
Proceeds from Dividend Reinvestment
And Stock Purchase Plan 815,857 495,590
Proceeds from Exercise of Stock Options 75,688 89,250
Dividends Paid ( 734,478) ( 685,189)
--------- ---------
Net Cash Provided (Used) by
Financing Activities 54,813 ( 198,748)
--------- ---------
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 404,478 ( 781,754)
CASH & CASH EQUIVALENTS - BEGINNING 191,319 1,195,095
--------- ---------
CASH & CASH EQUIVALENTS - ENDING $ 595,797 $ 413,341
========= =========
</TABLE>
-UNAUDITED-
See Notes to Consolidated Financial Statements
-5-
<PAGE>
UNITED MOBILE HOMES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1998
(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, 1998 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, 1997 have been omitted.
Effective January 1, 1998, the Company adopted the provisions of Statement
of Financial Accounting Standards No. 130, "Reporting Comprehensive Income"
(SFAS 130). SFAS 130 establishes standards for reporting and display of
comprehensive income and its components in a full set of general purpose
financial statements. Under SFAS 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. Comparative financial
statements provided for earlier periods have been reclassified to reflect
application of the provisions of SFAS 130.
SFAS 130 requires total comprehensive income and its components to be
displayed on the face of a financial statement for annual financial
statements. For interim financial statements, SFAS 130 requires only total
comprehensive income to be reported and allows such disclosure to be
presented in the notes to the interim financial statements.
For the three months ended March 31, 1998 and 1997, total comprehensive
income, including unrealized gains on securities available for sale,
amounted to $1,358,766 and $1,120,401, respectively.
NOTE 2 - NET INCOME PER SHARE
Diluted net income per share is calculated by dividing net income by the
weighted average number of common shares outstanding plus the weighted
average number of net shares that would be issued upon exercise of stock
options pursuant to the treasury stock method. Options in the amount of
46,895 and 80,005 for the period ended March 31, 1998 and 1997,
respectively, are included in the diluted weighted average shares
outstanding.
-6-
<PAGE>
NOTE 3 - DIVIDEND REINVESTMENT AND STOCK PURCHASE PLAN
On March 16, 1998, the Company paid $1,202,990 as a dividend of $.175 per
share to shareholders of record as of February 17, 1998.
On March 16, 1998, the Company received $1,284,369 from the Dividend
Reinvestment and Stock Purchase Plan. There were 116,751 new shares issued
resulting in 6,993,573 shares outstanding.
NOTE 4 - EMPLOYEE STOCK OPTIONS
During the three months ended March 31, 1998, the following stock option
was granted:
Date of Number of Number of Option Expiration
Grant Employees Shares Price Date
1/08/98 1 25,000 $12.75 1/08/2003
During the three months ended March 31, 1998, two employees exercised their
stock options and purchased 11,500 shares for total proceeds of $75,688.
As of March 31, 1998, there were options outstanding to purchase 350,000
shares and 380,500 shares available for grant under the Company's Stock
Option Plans.
NOTE 5 - SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid during the three months ended March 31, 1998 and 1997 for
interest was $399,121 and $335,426, respectively.
During the three months ended March 31, 1998 and 1997, land development
costs of $250,000 and $-0-, respectively, were transferred to investment
property and equipment and placed in service.
During the three months ended March 31, 1998 and 1997, the Company had
dividend reinvestments of $468,512 and $443,854, 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-four
manufactured home communities. These manufactured home communities have
been generating increased gross revenues and increased operating income.
The Company generated $1,700,460 net cash provided by operating activities.
The Company received new capital of $1,284,369 through its Dividend
Reinvestment and Stock Purchase Plan (DRIP). The Company purchased
$335,855 of Securities Available for Sale. Mortgages Payable decreased by
$122,780 as a result of principal repayments. Loans payable increased by
$25,692.
MATERIAL CHANGES IN RESULTS OF OPERATIONS
Income from community operations increased by $66,574 to $2,302,499 for the
quarter ended March 31, 1998 as compared to $2,235,925 for the quarter
ended March 31, 1997. 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 $3,765,720
for the quarter ended March 31, 1997 to $4,118,835 for the quarter ended
March 31, 1998. This was a result of higher rents and the purchase of
Waterfalls Village during 1997. Community operating expenses increased
from $1,529,795 for the quarter ended March 31, 1997 to $1,816,336 for the
quarter ended March 31, 1998. Community operating expenses increased due to
the purchase of Waterfalls Village and an increase in certain expenses
associated with filling vacant expansion sites (i.e. advertising,
personnel, etc.). Interest expense increased by $36,695 for the quarter
ended March 31, 1998 compared to the quarter ended March 31, 1997. This was
primarily a result of an increase in the principal balance outstanding.
The balance outstanding at March 31, 1998 was $19,988,243 as compared to
$17,252,631 at March 31, 1997.
<Loss> Gain on Sales of Assets remained relatively stable for the quarter
ended March 31, 1998 as compared to the quarter ended March 31, 1997.
Funds from operations (FFO), defined as net income, excluding gains (or
losses) from sales of depreciable assets, plus depreciation increased from
$1,584,920 for the quarter ended March 31, 1997 to $1,652,899 for the
quarter ended March 31, 1998. FFO does not replace net income (determined
in accordance with generally accepted accounting principles) as a measure
of performance or net cash flows as a measure of liquidity. FFO should be
considered as a supplemental measure of operating performance used by real
estate investment trusts.
LIQUIDITY AND CAPITAL RESOURCES
Net cash provided by operating activities increased from $1,381,289 for the
three months ended March 31, 1997 to $1,700,460 for the three months ended
March 31, 1998. 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
needs over the next several years.
-8-
<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 - 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
-9-
<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 5, 1998 By:/s/SAMUEL A. LANDY
Samuel A. Landy,
President
DATE: May 5, 1998 By:/s/ANNA T. CHEW
Anna T. Chew,
Vice President and
Chief Financial Officer
-10-
<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, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> MAR-31-1998
<CASH> 595,797
<SECURITIES> 4,190,754
<RECEIVABLES> 882,338
<ALLOWANCES> 126,427
<INVENTORY> 0
<CURRENT-ASSETS> 5,735,039
<PP&E> 61,293,988
<DEPRECIATION> 23,467,211
<TOTAL-ASSETS> 45,213,158
<CURRENT-LIABILITIES> 2,878,541
<BONDS> 19,988,243
<COMMON> 699,357
0
0
<OTHER-SE> 21,647,017
<TOTAL-LIABILITY-AND-EQUITY> 45,213,158
<SALES> 0
<TOTAL-REVENUES> 4,209,606
<CGS> 0
<TOTAL-COSTS> 1,816,336
<OTHER-EXPENSES> 970,046
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 372,121
<INCOME-PRETAX> 1,051,103
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,051,103
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,051,103
<EPS-PRIMARY> .15
<EPS-DILUTED> .15
</TABLE>
