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 31, 2000
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 31, 2000, United Financial Mortgage Corp. (the
"registrant") issued a press release regarding its financial results
for the fiscal year ended April 30, 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
July 31, 2000 /s/ Steve Y. Khoshabe
Vice President and Chief Financial
Officer
<PAGE>
For Further Information:
United Financial Mortgage Corp. Coffin Communications Group
600 Enterprise Dr., Suite 206 15300 Ventura Boulevard, Suite 303
Oak Brook, IL 60523 Sherman Oaks, CA 91403
(630) 571-7222 (818) 789-0100
(630) 571-2623 Fax (818) 789-1152 Fax
Contact: Steve Khoshabe Contact: Martin Halsall
Chief Financial Officer Senior Account Principal
[email protected] [email protected]
FOR IMMEDIATE RELEASE:
United Financial Mortgage Corp. Reports Results
for Fiscal Year Ended April 30, 2000
Oak Brook, IL, July 31, 2000 -- United Financial Mortgage Corp. (CHX:
`UFM' or `the Company') today announced results for the fiscal year
ended April 30, 2000.
Revenues for the fiscal year ended April 30, 2000 were $10,896,324,
compared to revenues of $10,045,228 for the year ended April 30,
1999. Net loss for the year ended April 30, 2000 was $(81,758) or
$(0.02) per diluted share, which compared to net income of $352,715
or $0.09 per diluted share for the fiscal year ended April 30, 1999.
These results reflect a non-cash charge attributable to the
accounting treatment afforded to certain equity transactions of the
company regarding warrants and other financings. Without these non-
cash charges, net income available to common shareholders would have
been $508,715 for the year ended April 30, 1999 and $(3,758) for the
year ended April 30, 2000.
Financial results were due to an increased interest rate environment,
which lead to lower loan origination volume and reduced margins.
Joseph Khoshabe, president and CEO of United Financial Mortgage
stated, "Despite the fact that the entire industry suffered from
successive interest rate increases, we are very pleased to have
increased our revenues by 8.5% compared to last year. Additionally,
other mortgage lenders have suffered traditional seasonal downturns
in the early months of 2000. We have minimized our seasonal
fluctuations due to our technological and infrastructure
advancements."
"As higher interest rates prevail and heavy refinance activities
subside the industry has experienced a marked slowdown. However, as
the mortgage industry evolves and broader and more diverse product
offerings become available, we are confident that we are well positioned
to continue to create value for our shareholders through our key
initiatives and our outlook for the next two quarters and beyond
remains positive," concluded Mr. Khoshabe.
<PAGE>
About United Financial Mortgage
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 funding,
and other risks disclosed from time to time in the Company's SEC
reports and filings.
-- FINANCIAL TABLES FOLLOW --
<PAGE>
<TABLE>
United Financial Mortgage Corp.
Balance Sheet
Year Ended Year Ended
April 30, 1999 April 30, 2000
<S> <C> <C>
A S S E T S
Current Assets:
Cash $ 4,344,937 $ 3,606,156
Loans held for sale 33,979,554 31,641,309
Accounts Receivable 315,860 204,623
Due From Employees 14,700 12,401
Due From Officers 2,439 0
Deferred Tax Asset 0 75,079
U.S. Savings Bond 2,000 2,000
Note Receivable 110,000 125,599
Prepaid Expense 177,098 132,663
Total current assets $ 38,946,588 $ 35,799,830
Furniture, Fixtures & Equipment
Cost 645,519 705,669
Accumulated Depreciation (276,512) (365,801)
Total Furniture, Fixtures & Equipment 369,007 339,868
Other Assets:
Servicing Rights 185,980 328,574
Land Investments 0 234,507
Escrow Deposits 60,793 0
Security Deposits 16,403 23,417
Deferred Advisor Fees 78,000 0
Investments 5,750 68,472
Goodwill Net 132,715 123,562
Total Other Assets 479,641 778,532
Total Assets $ 39,795,236 $ 36,918,230
The accompanying notes are an integral part of this statement
</TABLE>
<PAGE>
<TABLE>
United Financial Mortgage Corp.
Balance Sheet
LIABILITIES AND STOCKHOLDERS' EQUITY
Year Ended Year Ended
April 30, 1999 April 30, 2000
<S> <C> <C>
Current Liabilities:
Accounts Payable $ 235,952 $ 254,793
Leases Payable-Short Term 12,295 14,093
Accrued Expenses 177,675 558,159
Taxes Payable 62,959 0
Deferred Income Taxes 270,599 0
Escrow Payable 32,892 13,627
Notes Payable - Current 32,375,632 29,568,688
Total Current Liabilities $ 33,168,004 $ 30,409,360
Leases Payable-Long Term 31,551 13,341
Total liabilities $ 33,199,555 $ 30,422,701
Stockholders Equity
Common Shares, 20,000,000 Authorized
No. Par Value, Shares Issued and
Outstanding; 3,898,219 at
April 30, 1999 and 3,900,029
at April 30, 2000. $ 6,529,332 $ 6,510,938
Preferred Shares, 5,000,000 Authorized,
No Par Value, 63 Series A Redeemable
Shares Issued And Outstanding;
value $315,000 at April 30, 1999
and April 30, 2000. $ 315,000 $ 315,000
Retained Earnings (248,651) (330,409)
Total Stockholders' Equity $ 6,595,681 $ 6,495,529
Total liabilities and
stockholders' equity 39,795,236 36,918,230
The accompanying notes are an integral part of this statement
</TABLE>
<PAGE>
<TABLE>
United Financial Mortgage Corp.
Statement of Income
Year Ended Year Ended
April 30, 1999 April 30, 2000
<S> <C> <C>
Revenues:
Commissions and Fees $ 8,571,594 $ 9,051,395
Interest Income 1,457,953 1,824,603
Other Income and Expense 15,681 20,326
Net Revenue 10,045,228 10,896,324
Expenses:
Salaries & Commissions $ 4,539,018 $ 6,408,302
Selling & Administrative 3,460,977 3,039,924
Depreciation 80,704 127,414
Interest Expense 1,054,921 1,439,021
Cost and Expense of Litigation 150,000 0
Net Expense $ 9,285,620 $ 11,014,661
Income (loss) Before Income Taxes $ 759,608 $ (118,337)
Income Tax Provision 339,228 (75,079)
Net Income (loss) 420,380 (43,258)
Less Dividends Paid on Preferred Stock 67,665 38,500
Net Income (loss) Applicable to
Common Shareholders 352,715 (81,758)
Basic Net Income(loss) Per Share 0.09 (0.02)
Diluted Net Income Per Share 0.09 (0.02)
Shares used in computation of basic
net income per share 3,828,918 3,900,029
Shares used in computation of diluted
net income per share 4,070,918 4,200,029
The accompanying notes are an integral part of this statement
</TABLE>
<PAGE>
