FORM 10-Q
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, 2000
( ) 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, 2000 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)
Juniper Business Plaza, 3499 Route 9 North, Suite 3-C, Freehold, NJ 07728
Registrant's telephone number, including area code (732) 577-9997
125 Wyckoff Road, Eatontown, New Jersey 07724
(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 ________
The number of shares outstanding of issuer's common stock as of
May 8, 2000 was 7,339,164 shares.
<PAGE>
UNITED MOBILE HOMES, INC.
for the QUARTER ENDED
MARCH 31, 2000
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 of Operations............. 8-9
Item 3 - Quantitative and Qualitative Disclosures
About Market Risk
There have been no material changes to information
required regarding quantitative and qualitative
disclosures about market risk from the end of the
preceding year to the date of this Form 10-Q.
PART II - OTHER INFORMATION.......................................... 10
SIGNATURES................................................. 11
-2-
<PAGE>
<TABLE>
<CAPTION>
UNITED MOBILE HOMES, INC.
CONSOLIDATED BALANCE SHEETS
AS OF MARCH 31, 2000 and DECEMBER 31, 1999
March 31, December 31,
2000 1999
<S> <C> <C>
- -ASSETS-
INVESTMENT PROPERTY AND EQUIPMENT
Land $ 6,779,335 $ 6,779,335
Site and Land Improvements 49,345,284 49,256,596
Buildings and Improvements 2,697,313 2,697,313
Rental Homes and Accessories 8,060,365 7,888,924
---------- ----------
Total Investment Property 66,882,297 66,622,168
Equipment and Vehicles 2,997,490 2,969,556
---------- ----------
Total Investment Property and Equipment 69,879,787 69,591,724
Accumulated Depreciation (28,042,592) (27,429,461)
---------- ----------
Net Investment Property and Equipment 41,837,195 42,162,263
---------- ----------
OTHER ASSETS
Cash and Cash Equivalents 1,396,497 724,650
Securities Available for Sale 13,022,815 12,794,514
Notes and Other Receivables 1,410,352 1,082,126
Unamortized Financing Costs 230,748 252,648
Prepaid Expenses 255,005 121,521
Land Development Costs 2,047,146 1,437,590
---------- ----------
Total Other Assets 18,362,563 16,413,049
---------- ----------
TOTAL ASSETS $60,199,758 $58,575,312
========== ==========
- - LIABILITIES AND SHAREHOLDERS' EQUITY -
MORTGAGES PAYABLE $30,220,236 $30,419,153
---------- ----------
OTHER LIABILITIES
Accounts Payable 541,753 105,215
Loans Payable 5,410,300 4,674,385
Accrued Liabilities and Deposits 1,558,038 1,493,897
Tenant Security Deposits 500,484 491,355
---------- ----------
Total Other Liabilities 8,010,575 6,764,852
---------- ----------
TOTAL LIABILITIES 38,230,811 37,184,005
---------- ----------
SHAREHOLDERS' EQUITY
Common Stock - $.10 par value per share
10,000,000 shares authorized, 7,539,364 and
7,483,196 shares issued and 7,362,264 and
7,312,696 shares outstanding, respectively 753,936 748,320
Additional Paid-In Capital 24,965,118 24,549,267
Accumulated Other Comprehensive Loss ( 1,569,529) ( 1,662,178)
Accumulated Deficit ( 554,829) ( 667,793)
Treasury Stock, at cost (177,100 and
170,500 shares, respectively) ( 1,625,749) ( 1,576,309)
---------- ----------
Total Shareholders' Equity 21,968,947 21,391,307
---------- ----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 60,199,758 $ 58,575,312
========== ==========
</TABLE>
-UNAUDITED-
See Notes to Consolidated Financial Statements
-3-
<PAGE>
<TABLE>
<CAPTION>
UNITED MOBILE HOMES, INC.
CONSOLIDATED STATEMENTS OF INCOME
For the THREE MONTHS ended
MARCH 31, 2000 and 1999
2000 1999
<S> <C> <C>
Rental and Related Income $ 4,611,582 $ 4,321,983
Community Operating Expense 1,972,518 1,963,689
--------- ---------
Income from Community
Operations 2,639,064 2,358,294
General and Administrative 454,215 382,713
Interest Expense 636,886 404,156
Investment Income (546,744) (166,610)
Depreciation 613,131 625,615
Other Expenses 21,900 17,190
--------- ---------
Income before Gains on Sales
of Assets 1,459,676 1,095,230
Gain (Loss) on Sales of Assets 24,418 ( 12,077)
--------- ---------
Net Income 1,484,094 1,083,153
========= =========
Net Income Per Share -
Basic and Diluted .20 .15
Weighted Average Shares -
Basic 7,325,088 7,233,984
Diluted 7,325,088 7,261,059
</TABLE>
-UNAUDITED-
See Notes to Consolidated Financial Statements
-4-
<PAGE>
<TABLE>
<CAPTION>
UNITED MOBILE HOMES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
for the THREE MONTHS ended
March 31, 2000 and 1999
2000 1999
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 1,484,094 $ 1,083,153
Non-Cash Adjustments:
Depreciation 613,131 625,615
Amortization 21,900 -0-
Gain on Sales of Securities Available for Sale (143,414) 17,190
(Gain) Loss of Sales of Investment
Property and Equipment (24,418) 12,077
Changes in Operating Assets
And Liabilities -
Notes and Other Receivables (328,226) (19,431)
Prepaid Expenses (133,484) (129,782)
Accounts Payable 436,538 (75,468)
Accrued Liabilities and Deposits 64,141 53,507
Tenant Security Deposits 9,129 7,922
--------- ---------
Net Cash Provided by Operating Activities 1,999,391 1,574,783
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of Investment Property
and Equipment (288,063) (999,423)
Proceeds from Sales of Assets 24,418 93,340
Additions to Land Development (609,556) (313,077)
Purchase of Securities Available for Sale (493,838) (1,436,316)
Proceeds from Sales of Securities Available
for Sale 501,600 -0-
------- ---------
Net Cash Used by Investing Activities (865,439) (2,655,476)
------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Mortgages and Loans 735,915 4,306,589
Principal Payments of Mortgages and Loans (198,917) (991,183)
Financing Costs on Debt -0- (70,416)
Dividends Paid (949,663) (916,966)
Purchase of Treasury Stock (49,440) (971,897)
------- ---------
Net Cash (Used) Provided by Financing Activities (462,105) 1,356,127
------- ---------
NET INCREASE IN CASH
AND CASH EQUIVALENTS 671,847 275,434
CASH & CASH EQUIVALENTS - BEGINNING 724,650 832,408
--------- ---------
CASH & CASH EQUIVALENTS - ENDING $1,396,497 $1,107,842
========= =========
</TABLE>
-UNAUDITED-
See Notes to Consolidated Financial Statements
-5-
<PAGE>
UNITED MOBILE HOMES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2000
(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, 2000 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, 1999 have been omitted.
NOTE 2 - NET INCOME PER SHARE AND COMPREHENSIVE INCOME
Basic net income per share is calculated by dividing net income
by the weighted average shares outstanding for the period.
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 amounts of 27,075 for the three months
ended March 31, 1999 are included in the diluted weighted average
shares outstanding. Options for 421,500 shares were excluded for
the three months ended March 31, 2000 since they were anti-
dilutive.
Total comprehensive income, including unrealized gains (losses)
on securities available for sale, amounted to $1,576,743 and
$708,126, for the three months ended March 31, 2000 and 1999,
respectively.
NOTE 3 - DIVIDEND REINVESTMENT AND STOCK PURCHASE PLAN
On March 15, 2000, the Company paid $1,371,130 as a dividend of
$.1875 per share to shareholders of record as of February 15,
2000.
On March 15, 2000, the Company received $421,467 from the
Dividend Reinvestment and Stock Purchase Plan. There were 56,168
new shares issued under the Plan.
NOTE 4 - TREASURY STOCK
During the three months ended March 31, 2000, the Company
purchased 6,600 shares of its own stock for a total cost of
$49,440. These shares are accounted for under the cost method
and are included as Treasury Stock in the Consolidated Financial
Statements.
-6-
<PAGE>
NOTE 5 - EMPLOYEE STOCK OPTIONS
During the three months ended March 31, 2000, the following stock
option was granted:
Date of Number of Number of Option Expiration
Grant Employees Shares Price Date
1/6/00 1 25,000 $9.0625 1/6/2005
The Company also extended, for an additional five years, stock
options for a total of 75,000 shares which expired on January 5,
2000.
As of March 31, 2000, there were options outstanding to purchase
421,500 shares and 247,500 shares available for grant under the
Company's Stock Option Plans.
NOTE 6 - SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid during the three months ended March 31, 2000 and 1999
for interest was $668,886 and $435,856, respectively. Interest
cost capitalized to Land Development was $32,000 and $31,700 for
the three months ended March 31, 2000 and 1999, respectively.
During the three months ended March 31, 2000 and 1999, the
Company had dividend reinvestments of $421,467 and $441,769,
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 $1,999,391 net cash provided by operating
activities. The Company received new capital of $421,467 through
its Dividend Reinvestment and Stock Purchase Plan (DRIP). The
Company repurchased 6,600 shares of its own stock at a cost of
$49,440. The Company purchased $493,838 of securities of other
real estate investment trusts. Mortgages Payable decreased by
$198,917 as a result of principal repayments. Loans payable
increased by $735,915 primarily as a result of additional
borrowings to purchase of Securities Available for Sale.
MATERIAL CHANGES IN RESULTS OF OPERATIONS
Income from community operations increased by $280,770 to
$2,639,064 for the quarter ended March 31, 2000 as compared to
$2,358,294 for the quarter ended March 31, 1999. This represents
a continuing trend of rising income from community operations.
The Company has been raising rental rates by approximately 4% to
5% annually. Rental and related income rose from $4,321,983 for
the quarter ended March 31, 1999 to $4,611,582 for the quarter
ended March 31, 2000. This was the result of higher rents and
increased occupancy. Community operating expenses remained
relatively stable for the quarter ended March 31, 2000 as
compared to the quarter ended March 31, 1999. Interest expense
increased by $232,730 for the quarter ended March 31, 2000 as
compared to the quarter ended March 31, 1999. This was
primarily a result of an increase in the average principal
balance on borrowings outstanding. The balance outstanding of
mortgages payable at March 31, 2000 was $30,220,236 as compared
to $24,420,393 at March 31, 1999. Investment income increased
from $166,610 for the quarter ended March 31, 1999 to $546,744
for the quarter ended March 31, 2000 due primarily to purchases
of Securities Available for Sale during 1999. Included in
Investment income is a realized gain of $143,414 on the sale of
$358,186 of Securities Available for Sale.
Funds from operations (FFO), defined as net income, excluding
gains (or losses) from sales of depreciable assets, plus
depreciation increased from $1,720,845 for the quarter ended
March 31, 1999 to $2,072,807 for the quarter ended March 31,
2000. 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.
-8-
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
Net cash provided by operating activities increased from
$1,574,783 for the three months ended March 31, 1999 to
$1,999,391 for the three months ended March 31, 2000. The
Company believes that funds generated from operations together
with the financing and refinancing of its properties will be
sufficient to meet its needs over the next several years.
IMPACT OF YEAR 2000
The Company has experienced no significant impact of its
operations or its ability to accurately process financial
information due to a Year 2000 related issue. In addition, the
Company has no information that indicates a significant tenant,
vendor or service provider may be unable to meet their rental
obligations, sell goods or provide services to the Company
because of Year 2000 issues. The Company will continue to
monitor its operations for year 2000 related issues.
-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 - 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 10, 2000 By: /s/Samuel A. Landy
Samuel A. Landy,
President
DATE: May 10, 2000 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, 2000 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> MAR-31-2000
<CASH> 1,396,497
<SECURITIES> 13,022,815
<RECEIVABLES> 1,561,717
<ALLOWANCES> 151,365
<INVENTORY> 0
<CURRENT-ASSETS> 16,084,669
<PP&E> 69,879,787
<DEPRECIATION> 28,042,592
<TOTAL-ASSETS> 60,199,758
<CURRENT-LIABILITIES> 8,010,575
<BONDS> 30,220,236
<COMMON> 753,936
0
0
<OTHER-SE> 21,215,011
<TOTAL-LIABILITY-AND-EQUITY> 60,199,758
<SALES> 0
<TOTAL-REVENUES> 5,182,744
<CGS> 0
<TOTAL-COSTS> 1,972,518
<OTHER-EXPENSES> 1,089,246
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 636,886
<INCOME-PRETAX> 1,484,094
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,484,094
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,484,094
<EPS-BASIC> .20
<EPS-DILUTED> .20
</TABLE>
