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) December 15, 1999
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 December 15, 1999, United Financial Mortgage Corp. (the
"registrant") issued a press release reporting revenues and earnings
for quarter two, fiscal year 2000. 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
December 21, 1999 /s/ Steve Y. Khoshabe
Vice President and Chief Financial
Officer
For Further Information:
United Financial Mortgage Corp.
600 Enterprise Drive
Oak Brook, IL 60523
(630) 571-7222
(630) 571-2623
Contact: Steve Khoshabe
Chief Financial Officer
[email protected]
Coffin Communications Group
15300 Verntura Boulevard, Suite 303
Sherman Oaks, CA 91403
(818) 789-0100
(818) 789-1152 Fax
Contact: William F. Coffin, CEO
Mark Daugherty, Account Principal
[email protected]
For Immediate Release:
United Financial Mortgage Corp. Reports Increased Revenues and
Earnings for Fiscal 2000 Second Quarter
Oak Brook, IL, December 15, 1999--United Financial Mortgage Corp. (CHX:UFM
or 'the Company') today announced results for the second quarter ended
October 31, 1999. Revenues for the three months ended October 31, 1999 were
$2.9 million, a 7.2% increase compared to $2.7 million for the three months
ended October 31, 1998. Net income for the quarter increased 46.8% to
$96,181, or $0.02 per diluted share, compared to net income of $65,518, or
$0.01 per diluted share for the quarter ended October 31, 1998.
Revenues for the six months ended October 31, 1999 were $5.8 million, a 9.6%
increase compared to $5.3 million for the six months ended October 31, 1998.
Net income for the six-month period increased 118.1% to $164,919, or $0.04
per diluted share, compared to net income of $75,612, or $0.02 per diluted
share for the six months ended October 31, 1998.
Joseph Khoshabe, President and CEO of United Financial Mortgage stated, "I
am pleased to report that we continued to experience increased growth this
recent quarter, and we are optimistic with the progress that we made in
adjusting to a higher interest rate environment. As we expand our demographic
market over the next few months, we will be focusing our marketing efforts on
providing more creative product offerings to meet customer demands, as well as
refining our technology to remain competitive in a rapidly changing market.
I am happy to report that we are well on the way to achieving these goals."
The Company believe that the industry will continue to offer broader and more
diversified product offerings and that technology will play an increasingly
important role in real estate transactions. This includes expanded use of
Internet capabilities, which the Company continues to agrressively pursue.
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About United Financial Mortgage Corp.
United Financial Mortgage Corp. 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 online for a mortgage.
This press release may contain forward looking statements that involve risks
and uncertainties that could cause actual results to differ materially from
the statements contained herein. 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
fundings, and other risks disclosed from time to time in the Company's SEC
reports and filings.
--Financial Tables To Follow--
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<TABLE>
United Financial Mortgage Corp.
Balance Sheet
(Unaudited)
Six Months Ended Six Months Ended
October 31, 1998 October 31, 1999
<S> <C> <C>
ASSETS
Current Assets:
Cash $ 4,376,970 $ 4,640,467
Loans Held For Sale 28,407,731 27,514,645
Mortgage Loan Investments 994,004 944,438
Accounts Receivable 156,766 222,308
Due From Employees 30,318 42,700
Due from Officers 67,516 2,439
Deferred Tax Asset 0 0
U.S. Savings Bonds 2,000 2,000
Notes Receivable 225,200 100,000
Prepaid Expense 106,374 121,212
Total Current Assets 34,366,879 33,590,208
Furniture, Fixtures & Equipment
Cost 533,740 709,482
Accumulated Depreciation (226,043) (338,775)
Net Furn, Fix, & Equipment 307,697 370,707
Other Assets:
Servicing Rights 69,040 269,250
Escrow Deposits 5,750 197,984
Security Deposits 20,678 24,410
Deferred Advisor Fees 156,000 0
Investment 5,750 5,850
Goodwill Net 75,120 120,987
Total Other Assets 332,338 618,481
Total Assets 35,006,914 34,579,396
The accompanying Notes are an integral part of this statement
</Table)
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</TABLE>
<TABLE>
United Financial Mortgage Corp.
Balance Sheet
(Unaudited)
Six Months Ended Six Months Ended
October 31, 1998 October 31, 1999
<S> <C> <C>
LIABILITES AND STOCKHOLDERS EQUITY
Current Liabilities:
Accounts Payable $ 215,721 $ 189,071
Accrued Expenses 82,025 137,675
Loans Payable 0 616,970
Leases Payable-Short Term 15,929 9,858
Accrued Income Taxes 0 42,960
Deferred Income Taxes 34,789 113,623
Taxes Payable 0 0
Escrow Payable 20,579 82,722
Notes Payable - Current 28,282,843 26,614,657
Total Current Liabilities 28,651,886 27,807,537
Leases Payable-Long Term 29,227 18,967
Total Liabilities 28,681,113 27,826,504
Stockholders' Equity
Common Shares, 20,000,000
Authorized, No Par Value,
Shares Issued and Outstanding;
3,900,029 at July 31, 1998
and 3,897,529 at July 31, 1999. 6,536,403 6,521,625
Preferred Shares, 5,000,000
authorized, No Par Value, 63
Series A Redeemable Shares
Issued And Outstanding at
July 31, 1998 and July 31, 1998. 315,000 315,000
Retained Earnings (525,602) (83,733)
Total Stockholders Equity 6,325,801 6,752,892
Total Liabilities Plus
Stockholders Equity 35,006,914 34,579,396
The accompanying Notes are an integral part of this statement
</Table)
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</TABLE>
<TABLE>
United Financial Mortgage Corp.
Condensed Statement of Income
(Unaudited)
Three Months Six Months Three Months Six Months
Ended Ended Ended Ended
Oct 31, 1998 Oct 31, 1998 Oct 31, 1999 Oct 31, 1999
<S> <C> <C> <C> <C>
Revenues:
Commissions & Fees $ 2,346,833 $ 4,596,604 $ 2,460,136 $ 4,890,367
Interest Income 346,793 716,938 432,051 917,197
Other Income & Expenses 0 (18,683) (3,395) (3,395)
Total Revenues 2,693,626 5,294,859 2,888,793 5,804,169
Expenses:
Salaries & Comm. $ 1,438,385 $ 2,983,747 1,717,511 3,276,856
Selling & Admin 815,290 1,458,214 762,960 1,493,884
Depreciation 13,379 25,559 38,152 73,991
Interest Expense 392,201 716,938 432,586 905,350
Litigation Expense (62,944) 0 0 0
Total Expenses 2,596,311 5,184,458 2,951,209 5,750,080
Income (loss) Before
Income Taxes 97,315 110,401 (62,416) 54,088
Income Tax Provision 33,289 34,789 (158,597) (110,831)
Net Income Applicable
To Common Shareholders 64,026 75,612 96,181 164,919
Basic Net Income
Per Common Share 0.0164 0.0201 0.0247 0.0423
Diluted Net Income
Per Common Share 0.0155 0.0189 0.0232 0.0399
Shares used in computation of
Basic Net Income
Per Share 3,900,029 3,757,807 3,895,529 3,895,529
Shares used in computation of
Diluted Net Income
Per Share 4,142,029 3,999,807 4,137,529 4,137,529
The accompanying Notes are an integral part of this statement
</Table)
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</TABLE>
