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) July 9th, 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 July 9th, 1999, United Financial Mortgage Corp. (the
"registrant") issued a press release announcing record 1999 fiscal year
net income on record revenues. 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
July 13, 1999 /s/ Steve Y. Khoshabe
Vice President and Chief Financial
Officer
FOR IMMEDIATE RELEASE:
For Additional Information:
Steve Khoshabe, Executive Vice President/CFO
United Financial Mortgage Corp
(630) 571-7222
www.ufmc.com
[email protected]
Spencer Maus, Senior Vice President
Dresner Corporate Services, Inc.
(312) 726-3200, extension 205
[email protected]
United Financial Mortgage Reports Fiscal Year 1999 Net Income
+46% on Record Revenues
Oak Brook, IL - July 9, 1999 - United Financial Mortgage Corp.
(CHX: "UFM"), of Oak Brook, IL today reported record net income on record
revenues for fiscal year-end 1999. For the period ending April 30, 1999,
income before tax was $759,608, an increase of 170% when compared with $281,556
for the same period last year. Net income for fiscal year 1999 increased
46% to $352, 715, or $.09 per share, versus $241,429, or $.07 per share on
revenues of $10,045,228 versus $7,382,596, an increase of 36%.
United Financial further reported that shareholders' equity increased 131% to
$6,595,681 at fiscal year-end 1999 versus $2,846,529 at fiscal year-end 1998.
Fiscal year end pre-tax results were adversely affected by an extraordinary
litigation settlement of $150,000, and a $156,000 non-cash deferred advisor
expense relating to certain warrants issued by the Company. After tax results
reflect a non-cash deferred tax provision of $271,000.
Mr. Joseph Khoshabe, President of United Financial Mortgage Corp. added, "Our
record performance in earnings and revenues confirms the dedication and hard
work performed by our staff. I am convinced that our strategy to increase loan
volume through the expansion of our core business, acquisitions and other
alliances in key residential mortgage markets will continue to have success.
We plan to continue our aggressive growth strategy, while remaining sensitive
to market and interest rate factors."
United Financial Mortgage Corp. is a national mortgage banker principally
engaged in both retail and wholesale mortgages for family residences of one
to four units. The Company is headquartered in Oak Brook, IL 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, calculated mortgage payments,
and apply on-line for a mortgage.
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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 intened 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 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 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)
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United Financial Mortgage Corporation
Condensed Balance Sheet
Year Ended Year Ended
April 30, 1998 April 30, 1999
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A S S E T S
Current Assets:
Cash $ 1,974,011 $ 4,344,937
Loans held for sale 13,261,136 32,073,320
Mortgage Loan Investments 1,331,287 1,906,234
Accounts Receivable 83,494 315,860
Note Receivable 140,878 110,000
Other Assets 94,902 196,237
Total current assets $ 16,885,708 $ 38,946,588
Property and Equipment-Net $ 142,287 $ 369,007
Other Assets:
Servicing Rights 74,286 185,980
Land Investments 303,250 0
Deferred Organization Costs 143,425 0
Deferred Advisor Fees 234,000 78,000
Net Goodwill 0 132,715
Other Assets 25,128 82,946
Total Other Assets 780,089 479,641
Total Assets $ 808,084 $ 39,795,236
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Notes Payable - Current 14,149,244 32,375,632
Accounts Payable, Accrued Liabilities
and other 387,311 792,372
Total current liabilities $ 14,536,555 $ 33,168,004
Non-Current Notes Payable 425,000 0
Leases Payable 0 31,551
Total liabilities $ 14,961,555 $ 33,199,555
Stockholders Equity $ 2,846,529 $ 6,595,681
Total liabilities and
stockholders' equity 17,808,084 39,795,236
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United Financial Mortgage Corporation
Condensed Statement of Income
Year Ended Year Ended
April 30, 1998 April 30, 1999
<S> <C> <C>
Revenues:
Commissions and Fees $ 6,730,416 $ 8,571,594
Interest Income 665,646 1,457,953
Other Income and Expense (13,466) 15,681
Total Revenues 7,382,596 10,045,228
Expenses:
Salaries & Commissions $ 4,008,346 $ 4,539,018
Selling & Administrative 1,990,349 3,460,977
Depreciation 45,805 80,704
Interest Expense 975,953 1,054,921
Cost and Expense of Litigation 80,587 150,000
Total Expenses $ 7,101,040 $ 9,285,620
Income (loss) Before Income Taxes $ 281,556 $ 759,608
Income Tax Provision 40,127 339,228
Net Income (loss) 241,429 420,380
Less Dividends Paid on Preferred Stock 0 67,665
Net Income (loss) Applicable to
Common Shareholders 241,429 352,715
Basic Net Income(loss) Per Share 0.08 0.09
Diluted Net Income Per Share 0.07 0.09
Shares used in computation of basic
net income per share 3,100,029 3,828,918
Shares used in computation of diluted
net income per share 3,342,029 4,070,918
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