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) March 17, 2000
United Financial Mortgage Corp.
(Exact name of registrant as specified in its charter)
Illinois_________________________________
(State or other jurisdiction of incorporation)
600 Enterprise Drive, Suite 206, Oak Brook, Illinois 60523
(Address of principal executive offices)
Registrant's telephone number, including area code: (630) 571-7222
________________Not Applicable_____________
(Former name or former address, if changed since last report.)
Item 5. Other Events
On March 17, 2000 United Financial Mortgage Corp. (the
"registrant") issued a press release regarding the Company's third quarter,
2000 finanical results. 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 Corporation
/S/ Steve Y. Khoshabe
March 20, 2000 Vice President and
Chief Financial Officer
FOR IMMEDIATE RELEASE:
For Additional Information:
United Financial Mortgage Corp.
600 Enterprise Dr., Suite 206
Oak Brook, IL 60523
(630) 571-7222
(630) 571-2623 fax
Contact: Steve Khoshabe
Chief Financial Officer
[email protected]
Coffin Communications Group
15300 Ventura Boulevard, Suite 303
Sherman Oaks, CA 91403
(818) 789-0100
(818) 789-1152 fax
Contact: William F. Coffin, CEO
Martin Halsall, Senior Account Principal
[email protected]
For Immediate Release
United Financial Mortgage Corporation Reports Results For Nine
Month Period Ended January 31, 2000
Oak Brook, IL - March 17, 2000 - United Financial Mortgage Corp.(CHX:'UFM'
or 'the Company') today announced results for the nine month period ended
January 31, 2000.
Revenues for the nine months ended January 31, 2000 were $8.2 million,
compared to revenues of $8.2 million for the nine months ended January 31,
1999. Net loss for the nine months ended January 31, 2000 was ($104,713) or
($0.0025) per diluted share, compared to net income of $601,212, or $0.14 per
diluted share for the nine months ended January 31, 2000.
The Company believes that the reported losses were due to an increased
interest rate environment, which lead to lower loan origination volume, and
the Company's continued investment in its regional branch network.
Joseph Khoshabe, President and CEO of United Financial Mortgage stated,
"Mortgage market conditions during United Financial's third fiscal quarter
signaled the end of the refinance boom. Also, production activity declined
throughout the industry. Mortgage rates were roughly 125 basis points higher
than the third fiscal quarter last year."
"As we look forward to fiscal fourth quarter 2000 we are confident that we
can meet the challenges imposed by a changing economic environment. We remain
committed to providing an industry-leading level of customer service. A key
component of this strategy is the re-launch of the Company's web site,
offering consumers the greatest possible service capabilities online, both to
draw and retain customers and to reduce the costs of staffing brick-and-mortar
branch offices," concluded Mr. Khoshabe.
About United Financial Mortgage Corp.
United Financial Mortgage Corp. is a national mortgage banker principally
engaged in originating both retail and wholesale mortgages for single 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.
<PAGE>
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 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 STATEMENTS TO FOLLOW--
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<TABLE>
United Financial Mortgage Corp.
Balance Sheet
(Unaudited)
Nine Months Ended Nine Months Ended
Jan 31, 1999 Jan 31, 2000
<S> <C> <C>
ASSETS
Current Assets:
Cash $ 4,566,202 $ 4,192,525
Loans Held For Sale 36,974,846 12,925,821
Mortgage Loan Investments 680,629 922,865
Accounts Receivable 64,775 177,934
Due From Employees 0 25,700
Due from Officers 28,725 0
Deferred Tax Asset 0 153,907
U.S. Savings Bonds 2,000 2,000
Notes Receivable 247,944 100,000
Prepaid Expense 149,412 82,490
Total Current Assets 42,714,533 18,583,243
Furniture, Fixtures & Equipment
Cost 674,417 716,280
Accumulated Depreciation (242,018) (368,775)
Net Furn, Fix, & Equipment 432,399 347,505
Other Assets:
Servicing Rights 121,288 327,523
Escrow Deposits 15,843 8,223
Security Deposits 54,724 20,729
Deferred Advisor Fees 117,000 0
Investment 5,750 105,850
Goodwill Net 0 112,835
Total Other Assets 314,605 575,160
Total Assets 43,461,537 19,505,908
The accompanying Notes are an integral part of this statement
</Table)
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</TABLE>
<TABLE>
United Financial Mortgage Corp.
Balance Sheet
(Unaudited)
Nine Months Ended Nine Months Ended
Jan 31, 1999 Jan 31, 2000
<S> <C> <C>
LIABILITES AND STOCKHOLDERS EQUITY
Current Liabilities:
Accounts Payable $ 181,598 $ 195,596
Accrued Expenses 15,203 137,675
Leases Payable-Short Term 15,843 10,404
Deferred Income Taxes 56,977 0
Taxes Payable 7,085 0
Escrow Payable 17,443 8,223
Notes Payable - Current 36,323,024 12,654,986
Total Current Liabilities 36,617,173 13,006,884
Leases Payable-Long Term 31,755 16,210
Total Liabilities 36,648,928 13,023,094
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 6,521,030
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 (38,974) (353,216)
Total Stockholders Equity 6,812,429 6,482,814
Total Liabilities Plus
Stockholders Equity 43,461,357 19,505,908
</Table)
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</TABLE>
<TABLE>
United Financial Mortgage Corp.
Condensed Statement of Income
(Unaudited)
Three Months Nine Months Three Months Nine Months
Ended Ended Ended Ended
Jan 31, 1999 Jan 31, 1999 Jan 31, 2000 Jan 31, 2000
<S> <C> <C> <C> <C>
Revenues:
Commissions & Fees $ 2,451,513 $ 7,048,117 $ 2,080,633 $ 6,971,000
Interest Income 421,105 1,138,043 326,071 1,243,268
Other Income & Expenses 0 (18,683) (11,329) (14,724)
Total Revenues 2,872,618 8,167,477 2,395,374 8,199,543
Expenses:
Salaries & Comm. $ 1,219,225 $ 4,202,972 1,489,936 4,766,792
Selling & Admin 868,195 2,326,409 1,148,956 2,642,840
Depreciation 15,975 41,534 38,152 112,143
Interest Expense 214,350 931,288 285,049 1,190,399
Total Expenses 2,317,745 7,502,203 2,962,093 8,712,174
Income (loss) Before
Income Taxes 554,873 665,274 (566,719) (512,631)
Income Tax Provision 29,273 64,062 (297,087) (407,917)
Net Income (Loss) 525,600 601,212 (269,632) (104,713)
Less: Dividends Paid on
Preferred Stock 38,791 38,791 0 0
Net Income Applicable
To Common Shareholders 486,809 562,421 (269,632) (104,713)
Basic Net Income
Per Common Share 0.1248 0.1478 (0.0692) (0.0269)
Diluted Net Income
Per Common Share 0.1175 0.1390 (0.0652) (0.0253)
Shares used in computation of
Basic Net Income
Per Share 3,900,029 3,805,214 3,895,329 3,895,329
Shares used in computation of
Diluted Net Income
Per Share 4,142,029 4,047,214 4,137,329 4,137,329
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