UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Act of 1934
Date of Report (Date of earliest event reported) September 14, 1998
UNITED FINANCIAL MORTGAGE CORP.
(Exact name of small business issuer as specified in its
charter)
ILLINOIS 36-3440533
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
600 Enterprise Drive,
Suite 206
Oak Brook, Illinois 60523
Issuer's telephone number: (630) 571-7222
_________________Not Applicable_____________________________________
(Former name or former address, if changed since last report)
Item 5. Other Events
On September 14, 1998, United Financial Mortgage Corp. (the
"registrant") issued a press release regarding its financial results
for the fiscal quarter ended July 31, 1998.A copy of the press release
is attached hereto as exhibit 99.
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned hereto duly authorized.
United Financial Mortgage Corp.
Date Signed
September 22, 1998 /s/ Steve Y. Khoshabe
Vice President and Chief Financial
Officer
Monday September 14, 4:03 p.m. Eastern Time
Company Press Release
United Financial Mortgage Corporation Reports
Record Quarterly Revenues
OAK BROOK, IL.-(BUSINESS WIRE)--September 14, 1998 -- United
Financial Mortgage Corp. (CHX: "UFM") reported unaudited earnings of
$0.003 per share, or $10,094, on record revenues of $2,600,620 for
fiscal 1999 1st quarter ended July 31, 1998. This compares to
unaudited losses of $(0.002) per share, or $(6,843) on revenues of
$1,521,243, for the same fiscal period 1998. Shareholders' equity
increased to $6,536,403, or $1.68 per share, versus $2,382,895, or
$.77 per share, for the 1st quarter 1998. Total shares outstanding
are 3,900,029 and 3,100,029 respectively.
United Financial's 1st quarter earnings were partially impacted by
the initial additional expenses associated with the requirements of a
public corporation. The Company anticipates that the benefits,
associated with a public offering, should reduce the cost of capital
going forward.
Mr. Joseph Khoshabe, President of United Financial Mortgage
Corporation stated ``We are extremely pleased with our revenues in
the first quarter. Moving forward, we will continue to use the
benefits from our offering to reduce our capital costs.''
United Financial announced on August 31, 1998 that it had received
an executed Letter of Intent from Mortgage Service America, Inc.
(MSA), of Lombard, IL, accepting United Financial's offer to acquire
all common and preferred stock of MSA. United Financial anticipates
consummating the acquisition on or before October 31, 1998.
United Financial Mortgage Corporation is a national mortgage banker
principally engaged in originating retail and wholesale mortgages for
single family residences of one to four units. The Company is
headquartered in Oak Brook, Illinois and has regional offices in
several other states. The Company's web site (www.ufmc.com) allows
consumers to get information on the many different types of mortgage
loans offered by the Company, calculate mortgage payments, and apply
on-line for a mortgage_.more
<PAGE>
This press release contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, which are intended to be covered by the safe harbors created
hereby. Statements in this release that are not strictly historical
are ``forward looking'' statements that are subject to risk and
uncertainty. Investors are cautioned that all ``forward-looking''
statements contained herein may not be reasonable and assumptions
could be inaccurate, and should not be construed, considered or
assumed as guarantees. The inclusion of such information should not
be regarded as a representation or guarantee, by the Company, or any
other person, that the objectives and plans, stated herein, will be
achieved. Such risks and uncertainties include, but are not limited
to, changes in the performance of the financial markets, changes in
the demand for and market acceptance of the Company's products,
changes in the mortgage lending industry or changes in general
economic conditions, including interest rates, the impact of
competition, changes in the value of real estate, the ability to
maintain and increase sources of funding, and other risks disclosed
from time to time in the Company's SEC reports and filings. Unknown <PAGE>
factors could cause actual results to differ as well as other risks
detailed in the company's reports filed with the Securities and
Exchange Commission, including its prospectus, 10K and 10Q filings.
(financial statements to follow)
<PAGE>
<TABLE>
United Financial Mortgage Corporation
Balance Sheet
Three Months Ended Three Months Ended
July 31, 1997 July 31, 1998
<S> <C> <C>
ASSETS
Current Assets:
Cash $ 2,105,631 $ 4,466,439
Loans Held For Sale 13,570,784 20,027,262
Mortgage Loan Investments 505,860 1,389,909
Accounts Receivable 94,894 130,242
Due From Employees 77,362 18,868
Due from Officers 45,134 67,516
Deferred Tax Asset 45,763 4,169
U.S. Savings Bond 2,000 2,000
Notes Receivable 102,450 216,000
Prepaid Expense 0 77,408
Total Current Assets 16,549,878 26,399,813
Furniture, Fixtures & Equipment
Cost 307,764 417,631
Accumulated Depreciation (165,316) (212,663)
Net Furniture, Fixtures & Equipment 142,448 204,698
Other Assets:
Servicing Rights 0 73,475
Land Investments 0 0
Escrow Deposits 49,519 3,377
Deferred Organization Costs 105,083 0
Security Deposits 6,143 13,740
Deferred Advisor Fees 351,000 195,000
Investments 5,750 5,750
Total Other Assets 517,495 291,342
Total Assets 17,209,821 26,895,853
</TABLE>
<PAGE>
<TABLE>
United Financial Mortgage Corporation
Balance Sheet
Three Months Ended Three Months Ended
July 31, 1997 July 31, 1998
<S> <C> <C>
LIABILITES AND STOCKHOLDERS EQUITY
Current Liabilities:
Accounts Payable $ 255,001 $ 191,699
Deferred Income 0 0
Accrued Expenses 139,157 174,920
Taxes Payable 1,019 0
Deferred Income Taxes 0 0
Escrow Payable 49,519 3,377
Notes Payable - Current 13,832,485 20,242,662
Total Current Liabilities 14,277,181 20,612,658
Non-Current Notes Payable 334,734 23,064
Total Liabilities 14,611,555 20,635,722
Stockholders' Equity
Common Shares, 20,000,000
Authorized, No Par Value,
Shares Issued and Outstanding;
3,100,029 at July 31, 1997 and
3,900,029 at July 31, 1998. 2,382,895 6,536,403
Preferred Shares, 5,000,000
authorized, No Par Value,
213 Series A Redeemable Shares
Issued And Outstanding at July
31, 1997 and 63 Issued And
Outstanding at July 31, 1998. 1,065,000 315,000
Retained Earnings (849,629) (591,272)
Total Stockholders Equity 2,598,266 6,260,131
Total Liabilities &
Stockholders Equity 17,209,821 26,895,853
</TABLE>
<PAGE>
<TABLE>
United Financial Mortgage Corporation
Condensed Statement of Income
(Unaudited)
Three Months Ended Three Months Ended
July 31, 1997 July 31, 1998
<S> <C> <C>
Revenues:
Commissions and Fees $ 1,422,145 $ 2,249,771
Interest Income 99,098 369,532
Other Income and Expenses 0 (18,683)
Total Revenues 1,521,243 2,600,620
Expenses:
Salaries & Commissions 957,189 1,546,801
Selling & Administrative 380,297 642,364
Depreciation 10,638 12,180
Interest Expense 174,009 324,737
Cost and Expense of Litigation 5,944 62,944
Total Expenses 1,528,077 2,589,026
Income (loss) Before Income Taxes (6,834) 11,594
Income Tax Provision 0 1,500
Net Income (loss) (6,834) 10,094
Less Dividends Paid on Preferred Stock 0 0
Net Income(loss) Applicable to
Common Shareholders (6,834) 10,094
Basic Net Income (loss)
Per Common Share (0.0022) 0.0027
Diluted Net Income(loss)
Per Common Share (0.0020) 0.0026
Shares used in computation of basic
Net Income Per Share 3,100,029 3,606,696
Shares used in computation of diluted
Net Income Per Share 3,342,029 3,848,696
</TABLE>
<PAGE>
Contact:
United Financial Mortgage Corporation, Oak Brook
Steve Khoshabe, 630-571-7222
[email protected]
or
Dresner Corporate Services, Inc.
Spencer Maus, 312/726-3200 x205
[email protected]
URL:
www.ufmc.com
