SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ( x ) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 1996 ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period ended _________________________ For Quarter Ended Commission File Number March 31, 1996 0-13130 UNITED MOBILE HOMES, INC. (Exact name of registrant as specified in its charter) New Jersey 22-1890929 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) identification number) 125 Wyckoff Road, Eatontown, New Jersey 07724 Registrant's telephone number, including area code (908) 389-3890 ______________________________________________________________________ (Former name, former address and former fiscal year, if changed since last report.) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ________ Indicate by check mark whether the financial statements required by instruction H have been reviewed by an independent public accountant. Yes No X The number of shares outstanding of issuer's common stock as of May 3, 1996 was 5,966,475 shares.
PART I FINANCIAL INFORMATION UNITED MOBILE HOMES, INC. for the QUARTER ENDED MARCH 31, 1996 Item 1 - FINANCIAL STATEMENTS Page No. Consolidated Balance Sheets..................... 3 Consolidated Statements of Income............... 4 Consolidated Statements of Cash Flows........... 5 Notes to Consolidated Financial Statements...... 6-7 Item 2 - MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS.. 8
<TABLE> <CAPTION> UNITED MOBILE HOMES, INC. CONSOLIDATED BALANCE SHEETS as of MARCH 31, 1996 and DECEMBER 31, 1995 <S> <C> <C> March 31, December 31, 1996 1995 - ASSETS - INVESTMENT PROPERTY AND EQUIPMENT Land $ 5,428,869 $ 5,194,402 Site and Land Improvements 34,115,741 32,456,359 Buildings & Improvements 1,767,532 1,755,407 Rental Homes & Accessories 4,246,068 3,912,918 ___________ ___________ Total Investment Property 45,558,210 43,319,086 Equipment & Vehicles 1,946,692 1,853,398 ___________ ___________ Total Investment Property & Equip. 47,504,902 45,172,484 Accumulated Depreciation (19,611,611) (19,145,830) ___________ ___________ Net Investment Property & Equipment 27,893,291 26,026,654 ___________ ___________ OTHER ASSETS Cash and Cash Equivalents 1,514,133 2,043,282 Equity Securities Available for Sale, at Fair Value 209,161 -0- Notes and Other Receivables 906,198 547,779 Unamortized Financing Costs 203,685 199,103 Prepaid Expenses 268,299 272,704 Land Development Costs 816,566 668,875 ___________ ___________ Total Other Assets 3,918,042 3,731,743 ___________ ___________ TOTAL ASSETS $ 31,811,333 $ 29,758,397 =========== =========== - LIABILITIES & SHAREHOLDERS' EQUITY - MORTGAGES PAYABLE $ 17,620,126 $ 17,707,635 ___________ ___________ OTHER LIABILITIES Accounts Payable 717,615 197,357 Accrued Liabilities & Deposits 1,318,728 1,243,686 Tenant Security Deposits 342,744 319,232 ___________ ___________ Total Other Liabilities 2,379,087 1,760,275 ___________ ___________ TOTAL LIABILITIES 19,999,213 19,467,910 ___________ ___________ SHAREHOLDERS' EQUITY Common Stock - $.10 par value per share, 10,000,000 shares authorized, 5,966,475 and 5,850,631 issued and outstanding, respectively 596,648 585,063 Additional Paid-In Capital 11,689,943 10,373,217 Unrealized Holding Gains on Equity 8,018 -0- Securities Available for Sale Accumulated Deficit ( 482,489) (667,793) __________ __________ TOTAL SHAREHOLDERS' EQUITY 11,812,120 10,290,487 __________ __________ TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $ 31,811,333 $ 29,758,397 ========== ========== -UNAUDITED- See Accompanying Notes to Consolidated Financial Statements 3 </TABLE>
<TABLE> <CAPTION> UNITED MOBILE HOMES, INC. CONSOLIDATED STATEMENTS OF INCOME for the THREE MONTHS ended MARCH 31, 1996 and 1995 1996 1995 <S> <C> <C> Rental and Related Income $ 3,561,274 $ 3,247,040 Park Operating Expense 1,535,789 1,407,547 _________ _________ Income from Park Operations 2,025,485 1,839,493 General and Administrative 383,494 345,754 Interest Expense 376,043 442,099 Interest Income ( 20,486) ( 24,180) Depreciation Expense 492,133 468,937 Other Expenses 11,280 18,159 _________ _________ Income before Gains on Sales of Assets 783,021 588,724 Gains on Sales of Assets 280,188 1,216 _________ _________ Net Income $ 1,063,209 $ 589,940 ========= ========= Net Income Per Share $ .18 $ .11 ========= ========= Weighted Average Shares 5,980,364 5,532,798 ========= ========= -UNAUDITED- See Notes to Consolidated Financial Statements 4 </TABLE>
<TABLE> <CAPTION> UNITED MOBILE HOMES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS for the THREE MONTHS ended MARCH 31, 1996 and 1995 1996 1995 <S> <C> <C> CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 1,063,209 $ 589,940 Non-Cash Adjustments Depreciation & Amortization 503,413 487,096 Gain on Sales of Assets ( 280,188) ( 1,216) Changes in Operating Assets and Liabilities - Notes and Other Receivables ( 358,419) 214,973 Prepaid Expenses 4,405 ( 22,991) Accounts Payable 520,258 ( 54,646) Accrued Liabilities & Deposits 75,042 ( 32,435) Tenant Security Deposits 23,512 13,178 _________ _________ Net Cash Provided by Operating Activities 1,551,232 1,193,899 _________ _________ CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of Manufactured Home Communities (2,013,706) (1,810,906) Purchase of Minority Interest -0- ( 132,600) Purchase of Investment Property and Equipment ( 413,947) ( 296,549) Proceeds from Sales of Assets 411,035 62,658 Additions to Land Development ( 209,655) ( 180,217) Purchase of Equity Securities Available for Sale ( 201,143) -0- _________ _________ Net Cash Used by Investing Activities (2,427,416) (2,357,614) _________ _________ CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from Mortgages and Loans 1,000,000 3,700,000 Principal Payments of Mortgages and Loans (1,087,509) (2,126,507) Financing Costs on Debt ( 15,862) ( 56,869) Proceeds from Dividend Reinvestment and Stock Purchase Plan 963,844 238,871 Dividends Paid ( 513,438) ( 380,364) _________ _________ Net Cash Provided by Financing Activities 347,035 1,375,131 _________ _________ NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS ( 529,149) 211,416 CASH & CASH EQUIVALENTS - BEGINNING 2,043,282 357,547 _________ _________ CASH & CASH EQUIVALENTS - ENDING $ 1,514,133 $ 568,963 ========= ========= -UNAUDITED- See Accompanying Notes to Consolidated Financial Statements 5 </TABLE>
UNITED MOBILE HOMES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 1996 (UNAUDITED) NOTE 1 - ACCOUNTING POLICY The interim consolidated financial statements furnished herein reflect all adjustments which were, in the opinion of management, necessary to present fairly the financial position, results of operations, and cash flows at March 31, 1996 and for all periods presented. All adjustments made in the interim period were of a normal recurring nature. Certain footnote disclosures which would substantially duplicate the disclosures contained in the audited consolidated financial statements and notes thereto included in the annual report of United Mobile Homes, Inc. (the Company) for the year ended December 31, 1995 have been omitted. Certain amounts in the consolidated financial statements for the prior period have been reclassified to conform to the statement presentation for the current period. NOTE 2 - LOANS AND MORTGAGES PAYABLE On January 9, 1996, the Company entered into a $1,000,000 mortgage payable (River Valley mortgage) to Bank One at an interest rate of prime. Proceeds from this mortgage were used to purchase Wood Valley Mobile Home Park. (See Note 5.) This mortgage was repaid in March 1996. NOTE 3 - DIVIDEND REINVESTMENT AND STOCK PURCHASE PLAN On March 15, 1996, the Company paid $877,905 as a dividend of $.15 per share to shareholders of record as of February 15, 1996. On March 15, 1996, the Company received $1,328,311 from the Dividend Reinvestment and Stock Purchase Plan (DRIP). There were 115,844 new shares issued resulting in 5,966,475 shares outstanding. NOTE 4 - EMPLOYEE STOCK OPTIONS During the three months ended March 31, 1996, the following stock option was granted: Date of Number of Option Expiration Grant Shares Price Date 1/10/96 25,000 $10.625 1/10/2001 As of March 31, 1996, there were 551,000 shares available under the Company's 1994 Stock Option Plan. 6
NOTE 5 - ACQUISITIONS AND DISPOSITIONS On January 10, 1996, the Company acquired Wood Valley Mobile Home Park from an unrelated entity. This acquisition is a 161-space manufactured home community located in Caledonia, Ohio. The purchase price, including closing costs, totalled $2,013,706. On March 28, 1996, the Company sold 5.5 acres of excess vacant land at a sales price of $385,000 for a net gain of $290,303. NOTE 6 - SUPPLEMENTAL CASH FLOW INFORMATION Cash paid during the three months ended March 31, 1996 and 1995 for interest was $376,043 and $452,374, respectively. During the three months ended March 31, 1996, land development costs of $61,964 were transferred to investment property and equipment and placed in service. During the three months ended March 31, 1996 and 1995, the Company had dividend reinvestments of $364,467 and $306,655, respectively, which required no cash transfers. 7
MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS MATERIAL CHANGES IN FINANCIAL CONDITION United Mobile Homes, Inc. (the Company) owns and operates twenty-two manufactured home communities. These manufactured home communities have been generating increased gross revenues and increased operating income. The Company generated $1,551,232 cash from operations. The Company received new capital of $1,328,311 through its Dividend Reinvestment and Stock Purchase Plan (DRIP). Mortgages Payable decreased by $87,509 as a result of principal repayments offset by a new mortgage of $1,000,000. Proceeds from the new mortgage were used to purchase Wood Valley Mobile Home Park (Wood Valley) (see Note 5). MATERIAL CHANGES IN RESULTS OF OPERATIONS Income from park operations increased by $185,992 to $2,025,485 for the quarter ended March 31, 1996 as compared to $1,839,493 for the quarter ended March 31, 1995. This represents a continuing trend of rising income from park operations. The Company has been raising rental rates by approximately 5% annually. Rental and related income rose from $3,247,040 for the quarter ended March 31, 1995 to $3,561,274 for the quarter ended March 31, 1996. This was a result of higher rents, the addition of rental homes and the purchase of Wood Valley. Park operating expenses rose from $1,407,547 for the quarter ended March 31, 1995 to $1,535,789 for the quarter ended March 31, 1996. Park operating expenses increased due to higher insurance, promotional costs and the purchase of Wood Valley. Interest expense decreased from $442,099 for the quarter ended March 31, 1995 to $376,043 for the quarter ended March 31, 1996. This was primarily a result of a decrease in interest rates. During 1995, the Company negotiated new long-term debt. Interest rates on most of the Company's debt dropped from prime plus 1% to a fixed rate of 7.5%. The prime rate was 9% at March 31, 1995. Gains on Sales of Assets increased from $1,216 for the three months ended March 31, 1995 to $280,188 at March 31, 1996. This was primarily due to the sale of 5.5 acres of excess vacant land at a gain of $290,303. LIQUIDITY AND CAPITAL RESOURCES Net cash provided by operating activities increased during the three months ended March 31, 1996 to $1,551,232 compared to $1,193,899 generated in the three month period ended March 31, 1995. Excess cash was used to amortize and/or prepay debt. The Company believes that funds generated from operations and the Dividend Reinvestment and Stock Purchase Plan, together with the financing and refinancing of its properties will be sufficient to meet its need over the next several years. 8
PART II OTHER INFORMATION UNITED MOBILE HOMES, INC. for the QUARTER ENDED March 31, 1996 9
PART II Item 1 - Legal Proceedings - none Item 2 - Changes in Securities - none Item 3 - Defaults Upon Senior Securities - none Item 4 - Submission of Matters to a Vote of Security Holders - none Item 5 - Other Information - none Item 6 - Exhibits and Reports on Form 8-K - (a) Exhibits - none (b) Reports on Form 8-K - none 10
SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. DATE: May 6, 1996 By:/s/Samuel A. Landy Samuel A. Landy, President DATE: May 6, 1996 By:/s/Anna T. Chew Anna T. Chew, Vice President and Chief Financial Officer 11