FORM 10-Q 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 June 30, 2003 ( ) 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 June 30, 2003 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) Juniper Business Plaza, 3499 Route 9 North, Suite 3-C, Freehold, NJ 07728 Registrant's telephone number, including area code (732) 577- 9997 (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 ____ The number of shares outstanding of issuer's common stock as of August 1, 2003 was 7,863,255 shares.
UNITED MOBILE HOMES, INC. for the QUARTER ENDED JUNE 30, 2003 PART I - FINANCIAL INFORMATION Page No. Item 1 - Financial Statements (Unaudited) Consolidated Balance Sheets 3 Consolidated Statements of Income 4 Consolidated Statements of Cash Flows 5 Notes to Consolidated Financial Statements 6-9 Item 2 - Management Discussion and Analysis of Financial Conditions and Results of Operations 10-12 Item 3 - Quantitative and Qualitative Disclosures About Market Risk There have been no material changes to information required regarding quantitative and qualitative disclosures about market risk from the end of the preceding year to the date of this Form 10-Q. Item 4 - Controls and Procedures 12 PART II OTHER INFORMATION 13 - - SIGNATURES 14 Page 2
<TABLE> <CAPTION> UNITED MOBILE HOMES, INC CONSOLIDATED BALANCE SHEET AS OF JUNE 30, 2003 AND DECEMBER 31, 2002 <S> <C> <C> -ASSETS- June 30, 2003 December 31,2002 _____________ _____________ (Unaudited) INVESTMENT PROPERTY AND EQUIPMENT Land $ 6,927,970 $ 6,850,970 Site and Land Improvements 57,606,556 56,437,044 Buildings and Improvements 2,773,313 2,748,600 Rental Homes and Accessories 9,239,485 8,798,433 ___________ ___________ Total Investment Property 76,547,324 74,835,047 Equipment and Vehicles 4,217,536 3,919,983 ___________ ___________ Total Investment Property and Equipment 80,764,860 78,755,030 Accumulated Depreciation (36,274,434) (34,969,453) ___________ ___________ Net Investment Property and Equipment 44,490,426 43,785,577 ___________ ___________ OTHER ASSETS Cash and Cash Equivalents 1,726,773 2,338,979 Securities Available for Sale 31,195,984 32,784,968 Inventory of Manufactured Homes 2,930,689 2,775,459 Notes and Other Receivables 5,903,592 4,800,969 Unamortized Financing Costs 380,015 403,663 Prepaid Expenses 572,135 422,323 Land Development Costs 2,131,938 1,714,568 ___________ ___________ Total Other Assets 44,841,126 45,240,929 ___________ ___________ TOTAL ASSETS $89,331,552 $89,026,506 =========== =========== - LIABILITIES AND SHAREHOLDERS' EQUITY - LIABILITIES: MORTGAGES PAYABLE $41,565,556 $43,321,884 ___________ ___________ OTHER LIABILITIES Accounts Payable 1,143,233 956,663 Loans Payable 11,298,294 12,358,965 Accrued Liabilities and Deposits 1,870,271 2,141,636 Tenant Security Deposits 497,483 510,941 ___________ ___________ Total Other Liabilities 14,809,281 15,968,205 ___________ ___________ Total Liabilities 56,374,837 59,290,089 ___________ ___________ SHAREHOLDERS' EQUITY: Common Stock - $.10 par value per share, 15,000,000 shares authorized, 8,218,786 and 8,063,750 shares issued and 7,826,486 and 7,671,450 shares outstanding as of June 30, 2003 and December 31, 2002, respectively 821,879 806,375 Additional Paid-In Capital 31,429,449 29,411,328 Accumulated Other Comprehensive Income 4,858,086 3,988,429 Accumulated Deficit (350,777) (667,793) Treasury Stock at Cost (392,300 shares at June 30, 2003 and December 31, 2002) (3,709,922) (3,709,922) Notes Receivable from Officers (13,000 shares) (92,000) (92,000) ___________ ___________ Total Shareholders' Equity 32,956,715 29,736,417 ___________ ___________ TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $89,331,552 $89,026,506 =========== =========== </TABLE> -UNAUDITED- See Accompanying Notes to Consolidated Financial Statements Page 3
<TABLE> <CAPTION> UNITED MOBILE HOMES, INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2003 AND 2002 <S> <C> <C> <C> <C> THREE MONTHS SIX MONTHS 6/30/03 6/30/02 6/30/03 6/30/02 ________ ________ ________ ________ REVENUES: Rental and Related Income $5,226,202 $5,007,991 $10,375,813 $9,994,979 Sales of Manufactured Homes 1,734,572 1,563,144 3,230,665 2,476,662 Interest and Dividend Income 811,562 718,962 1,696,923 1,337,077 Gain on Securities Available for Sales Transactions, net 477,065 169,919 671,581 702,738 Other Income 40,070 30,068 65,661 47,985 _________ _________ _________ _________ Total Revenues 8,289,471 7,490,084 16,040,643 14,559,441 _________ _________ _________ ________ EXPENSES: Community Operating Expenses 2,488,873 2,335,933 4,835,524 4,530,175 Cost of Sales of Manufactured Homes 1,349,726 1,269,464 2,542,745 2,080,214 Selling Expenses 297,640 283,541 572,878 460,483 General and Administrative Expenses 666,630 535,126 1,231,726 1,071,524 Interest Expense 803,380 816,603 1,631,415 1,590,506 Depreciation Expense 716,780 698,020 1,433,439 1,400,025 Amortization of Financing Costs 30,300 26,700 60,600 53,400 _________ _________ _________ _________ Total Expenses 6,353,329 5,965,387 12,308,327 11,186,327 _________ _________ _________ _________ Income before Gain on Sales of Investment Property and Equipment 1,936,142 1,524,697 3,732,316 3,373,114 Gain (Loss) on Sales of Investment Property and Equipment 31,252 (4,352) 37,554 (1,025) _________ _________ _________ _________ Net Income $1,967,394 $1,520,345 $3,769,870 $3,372,089 ========= ========= ========= ========= Net Income per Share - Basic $ .25 $ 0 .20 $ .49 $ 0.45 ========= ========= ========= ========= Diluted $ .25 $ 0.20 $ .48 $ 0.44 ========= ========= ========= ========= Weighted Average Shares Outstanding - Basic 7,760,917 7,590,344 7,726,860 7,569,767 ========= ========= ========= ========= Diluted 7,866,355 7,682,489 7,824,096 7,657,560 ========= ========== ========= ========= </TABLE> -UNAUDITED- See Accompanying Notes to Consolidated Financial Statements Page 4
<TABLE> <CAPTION> UNITED MOBILE HOMES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE THREE MONTHS ENDED JUNE 30, 2003 AND 2002 <S> <C> <C> 2003 2002 ______ ______ Net Income $3,769,870 $3,372,089 Non-Cash Adjustments: Depreciation 1,433,439 1,400,025 Amortization 60,600 53,400 Gain on Securities Available for Sale Transactions (671,581) (702,738) (Gain) Loss on Sales of Investment Property and Equipment (37,554) 1,025 Changes in Operating Assets and Liabilities: Inventory of Manufactured Homes (155,230) 45,922 Notes and Other Receivables (1,102,623) (1,079,262) Prepaid Expenses (149,812) (325,685) Accounts Payable 186,570 (405,899) Accrued Liabilities and Deposits (271,365) 499,505 Tenant Security Deposits (13,458) 18,523 __________ __________ Net Cash Provided by Operating Activities 3,048,856 2,876,905 __________ __________ CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of Manufactured Home Community (918,000) -0- Purchase of Investment Property and Equipment (1,384,118) (952,830) Proceeds from Sales of Assets 201,384 151,714 Additions to Land Development (417,370) (344,380) Purchase of Securities Available for Sale (1,137,098) (5,044,831) Proceeds from Sales of Securities Available for Sale 4,267,320 2,806,911 __________ __________ Net Cash Provided (Used) by Investing Activities 612,118 (3,383,416) __________ __________ CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from Mortgages and Loans -0- 6,862,500 Principal Payments of Mortgages and Loans (2,816,999) (4,166,843) Financing Costs on Debt (36,952) (37,369) Proceeds from the Dividend Reinvestment and Stock Purchase Plan 675,854 -0- Proceeds from Exercise of Stock Options 458,513 117,050 Dividends Paid (2,553,596) (2,482,787) Purchase of Treasury Stock -0- (131,449) __________ __________ Net Cash (Used) Provided by Financing Activities (4,273,180) 161,102 __________ __________ NET DECREASE IN CASH AND CASH (612,206) (345,409) EQUIVALENTS CASH & CASH EQUIVALENTS - BEGINNING 2,338,979 1,567,831 __________ __________ CASH & CASH EQUIVALENTS - ENDING $1,726,773 $1,222,422 ========== ========== </TABLE> -UNAUDITED- See Accompanying Notes to Consolidated Financial Statements Page 5
UNITED MOBILE HOMES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2003 (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 June 30, 2003 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, 2002 have been omitted. The Company, through its wholly-owned taxable subsidiary, UMH Sales and Finance, Inc. (S&F), conducts manufactured home sales in its communities. This company was established to enhance the occupancy of the communities. The consolidated financial statements of the Company include S&F and all of its other wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Certain reclassifications have been made to the financial statements for prior periods to conform to the current period presentation. NOTE 2 - NET INCOME PER SHARE AND COMPREHENSIVE INCOME Basic net income per share is calculated by dividing net income by the weighted average shares outstanding for the period. Diluted net income per share is calculated by dividing net income by the weighted average number of common shares outstanding plus the weighted average number of net shares that would be issued upon exercise of stock options pursuant to the treasury stock method. Options in the amount of 105,438 and 96,951 shares for the three and six months ended June 30, 2003 respectively, and 92,145 and 87,793 shares for the three and six months ended June 30, 2002, respectively, are included in the diluted weighted average shares outstanding. Total comprehensive income, including unrealized gains (losses) on securities available for sale, amounted to $3,223,233 and $4,639,527 for the three and six months ended June 30, 2003, respectively, and $2,232,710 and $4,565,915 for the three and six months ended June 30, 2002, respectively. NOTE 3 - INVESTMENT PROPERTY AND EQUIPMENT On May 15, 2003, the Company acquired Woodland Manor (formerly Northway Manor), a manufactured home community located in West Monroe, New York. This community consists of 150 manufactured home sites, of which 65 are currently occupied. This community was purchased from MSCI 1998-CF1 West Monroe, LLC, an unrelated entity, for a purchase price, including closing costs, of approximately $918,000. Page 6
NOTE 4 - MORTGAGES PAYABLE Effective May 1, 2003, the Company extended the D&R Village mortgage for an additional five years. The interest rate was reset to 4.625%. NOTE 5 - DIVIDEND REINVESTMENT AND STOCK PURCHASE PLAN On March 19, 2003, the Company amended the Dividend Reinvestment and Stock Purchase Plan to provide for monthly optional cash payments of not less than $500 per payment nor more than $1,000 unless a request for waiver has been accepted by the Company. On June 16, 2003, the Company paid $1,742,618 as a dividend of $.225 per share to shareholders of record as of May 15, 2003. Gross dividends paid for the six months ended June 30, 2003 amounted to $3,452,854, of which $899,258 was reinvested. During the six months ended June 30, 2003, the Company received, including dividends reinvested, a total of $1,575,112 from the Dividend Reinvestment and Stock Purchase Plan. There were 107,036 new shares issued under the Plan. NOTE 6 - EMPLOYEE STOCK OPTIONS The Company has one stock-based employee compensation plan. Prior to 2003, the Company accounted for this plan under the recognition and measurement provision of APB Opinion No. 25, "Accounting for Stock Issued to Employees", and the related interpretations. No stock-based employee compensation was reflected in net income prior to 2003. Effective January 1, 2003, the Company adopted the fair value recognition provisions of SFAS No. 123, "Accounting for Stock Based Compensation". The Company has selected the prospective method of adoption under the provisions of SFAS No. 148. No compensation costs have been recognized in 2003 as the Company has not issued any stock options during the six months ended June 30, 2003. Had compensation cost been determined consistent with SFAS No. 123, the Company's net income and earnings per share for the three and six months ended June 30, 2003 and 2002 would have been reduced to the pro forma amounts as follows: Three Months Six Months 6/30/03 6/30/02 6/30/03 6/30/02 Net Income as Reported $1,967,394 $1,520,345 $3,769,870 $3,372,089 Compensation expenses if the fair value method had been applied 4,408 9,991 18,815 19,982 Net Income Pro forma $1,962,986 $1,510,354 $3,761,055 $3,352,107 Net Income per share - as reported $ .25 $ .20 $ .49 $ .45 Basic Diluted $ .25 $ .20 $ .48 $ .44 Net Income per share - pro forma Basic $ .25 $ .20 $ .49 $ .44 Diluted $ .25 $ .20 $ .48 $ .44 Page 7
NOTE 6 - EMPLOYEE STOCK OPTIONS, (CONT'D.) The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighed-average assumptions used for grants in the following years: 2002 2001 ________ ________ Dividend yield 6.75% 8% Expected volatility 13% 25% Risk-free interest rate 3.40% 4.29% Expected lives 8 5 During the six months ended June 30, 2003, seven employees exercised their stock options and purchased 48,000 shares for a total of $458,513. As of June 30, 2003, there were options outstanding to purchase 314,000 shares and 253,300 shares were available for grant under the plan. NOTE 7 - CONTINGENCIES The Company is under an investigation by the Environmental Protection Agency regarding its operation of its wastewater treatment facility at one community. The Company's wastewater treatment facilities are operated by licensed operators and supervised by a professional engineer. Management does not believe that this matter will have a material adverse effect on its business, assets, or results of operations. The Company is subject to claims and litigation in the ordinary course of business. Management does not believe that any such claim or litigation will have a material adverse effect on the Company. NOTE 8 - SUPPLEMENTAL CASH FLOW INFORMATION Cash paid during the six months ended June 30, 2003 and 2002 for interest was $1,699,915 and $1,656,106, respectively. Interest cost capitalized to Land Development was $68,500 and $65,600 for the six months ended June 30, 2003 and 2002, respectively. During the six months ended June 30, 2003 and 2002, the Company had dividend reinvestments of $899,258 and $825,268, respectively, which required no cash transfers. NOTE 9 - RECENT ACCOUNTING PRONOUNCEMENTS In January 2003, the Financial Accounting Standards Board ("FASB") issued FASB Interpretation No. 46 ("FIN 46"), "Consolidation of Variable Interest Entities, an interpretation of Accounting Research Bulletin No. 51", which addresses consolidation by business enterprises of variable interest entities. The Interpretation clarifies the application of Accounting Research Bulletin No. 51, Consolidated Financial Statements, to certain entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity Page 8
NOTE 9 - RECENT ACCOUNTING PRONOUNCEMENTS, (CONT'D.) at risk for the entity to finance its activities without additional subordinated financial support from other parties. FIN 46 applies immediately to variable interest entities created after January 31, 2003, and to variable interest entities in which an enterprise obtains an interest after that date. Management believes that this Interpretation will not have a material impact on the Company's financial statements In April 2003, the FASB issued Statement No. 149, "Amendment of Statement 133 on Derivative Instruments and Hedging Activities" ("SFAS No. 149"). SFAS No. 149 amends and clarifies accounting for derivative instruments, including certain derivative instruments embedded in other contracts, and for hedging activities under Statement 133. SFAS No. 149 is effective for contracts entered into or modified after June 30, 2003, with some exceptions, and for hedging relationships designated after June 30, 2003. The guidance should be applied prospectively. Management believes that this Statement will not have a material impact on the Company's financial statements. In May 2003, the FASB issued Statement No. 150, "Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity" ("SFAS No. 150). SFAS No. 150 establishes standards for how an issuer classifies and measures certain financial instruments with characteristics of both liabilities and equity. It requires that an issuer classify a financial instrument that is within its scope as a liability (or an asset in some circumstances). Many of those instruments were previously classified as equity. SFAS No. 150 is effective for financial instruments entered into or modified after May 31, 2003, and otherwise is effective at the beginning of the first interim period beginning after June 15, 2003. It is to be implemented by reporting the cumulative effect of a change in an accounting principle for financial instruments created before the issuance date of the Statement and still existing at the beginning of the interim period of adoption. Restatement is not permitted. Management believes that this Statement will not have a material impact on the Company's financial statements. Page 9
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- six manufactured home communities. These manufactured home communities have been generating increased gross revenues and increased operating income. The Company also purchases and holds securities of other real estate investment trusts. The Company generated $3,048,856 net cash provided by operating activities. The Company received, including dividends reinvested of $899,258, new capital of $1,575,112 through its Dividend Reinvestment and Stock Purchase Plan (DRIP). The Company purchased $1,137,098 of securities of other real estate investment trusts. The Company had an increase in inventory of manufactured homes of $155,230. Effective April 1, 2001, the Company through its wholly-owned taxable subsidiary, UMH Sales and Finance, Inc. (S&F) began to conduct manufactured home sales in its communities. Mortgages Payable decreased by $1,756,328 as a result of principal repayments. MATERIAL CHANGES IN RESULTS OF OPERATIONS Rental and related income increased from $5,007,991 for the quarter ended June 30, 2002 to $5,226,202 for the quarter ended June 30, 2003. Rental and related income increased from $9,994,979 for the six months ended June 30, 2002 to $10,375,813 for the six months ended June 30, 2003. This was primarily due to the acquisition of a new community and rental increases to residents. The Company has been raising rental rates by approximately 3% to 4% annually. Interest and dividend income rose from $718,962 for the quarter ended June 30, 2002 to $811,562 for the quarter ended June 30, 2003. Interest and dividend income rose from $1,337,077 for the six months ended June 30, 2002 to $1,696,923 for the six months ended June 30, 2003. This was due primarily to purchases of Securities available for sale during 2003. Gain on securities available for sale transactions amounted to $477,065 and $671,581 for the quarter and six months ended June 30, 2003, respectively, as compared to $169,919 and $702,738 for the quarter and six months ended June 30, 2002, respectively. Community operating expenses increased from $2,335,933 for the quarter ended June 30, 2002 to $2,488,873 for the quarter ended June 30, 2003. Community operating expenses increased from $4,530,175 for the six months ended June 30, 2002 to $4,835,524 for the six months ended June 30, 2003. This was primarily due to the acquisition of a new community and increased insurance expense and personnel costs. General and administrative expenses increased from $535,126 for the quarter ended June 30, 2002 to $666,630 for the quarter ended June 30, 2003. General and administrative expenses increased from $1,071,524 for the six months ended June 30, 2002 to $1,231,726 for the six months ended June 30, 2003. This was primarily due to an increase in professional fees. Interest expense remained relatively stable for the quarter and six months ended June 30, 2003 as compared to the quarter and six months ended June 30, 2002. Depreciation expense and amortization of financing costs remained relatively stable for the quarter and six months ended June 30, 2003 as compared to the quarter and six months ended June 30, 2002. Page 10
MATERIAL CHANGES IN RESULTS OF OPERATIONS, (CONT'D.) Sales of manufactured homes amounted to $1,734,572 and $3,230,665 for the quarter and six months ended June 30, 2003, respectively, as compared to $1,563,144 and $2,476,662 for the quarter and six months ended June 30, 2002, respectively. Cost of sales of manufactured homes amounted to $1,349,726 and $2,542,745 for the quarter and six months ended June 30, 2003, respectively, as compared to $1,269,464 and $2,080,214 for the quarter and six months ended June 30, 2002, respectively. Selling expenses amounted to $297,640 and $572,878 for the quarter and six months ended June 30, 2003, respectively, as compared to $283,541 and $460,483 for the quarter and six months ended June 30, 2002, respectively. These increases are directly attributable to the increase in sales. Income from the sales operations (defined as sales of manufactured homes less cost of sales of manufactured homes less selling expenses) amounted to $87,206 and $115,042 for the quarter and six months ended June 30, 2003, respectively, as compared to $10,139 and a loss of $64,035 for the quarter and six months ended June 30, 2002, respectively. The Company has been experiencing an increase in gross margin. The Company believes that sales of new homes produces new rental revenue and is an investment in the upgrading of the communities. LIQUIDITY AND CAPITAL RESOURCES Net cash provided by operating activities increased from $2,876,905 for the six months ended June 30, 2002 to $3,048,856 for the six months ended June 30, 2003. The Company believes that funds generated from operations together with the financing and refinancing of its properties will be sufficient to meet its needs over the next several years. FUNDS FROM OPERATIONS Funds from Operations (FFO) is defined as net income excluding gains (or losses) from sales of depreciable assets, plus depreciation. FFO should be considered as a supplemental measure of operating performance used by real estate investment trust (REITs). FFO excludes historical cost depreciation as an expense and may facilitate the comparison of REITs which have different cost bases. The items excluded from FFO are significant components in understanding and assessing the Company's financial performance. FFO (1) does not represent cash flow from operations as defined by generally accepted accounting principles; (2) should not be considered as an alternative to net income as a measure of operating performance or to cash flows from operating, investing and financing activities; and (3) is not an alternative to cash flow as a measure of liquidity. FFO, as calculated by the Company, may not be comparable to similarly entitled measures reported by other REITs. The Company's FFO for the quarter and six months ended June 30, 2003 and 2002 is calculated as follows: THREE MONTHS SIX MONTHS 6/30/03 6/30/02 6/30/03 6/30/02 __________ __________ __________ __________ Net Income $1,967,394 $1,520,345 $3,769,870 $3,372,089 Loss(Gain) on Sales of Depreciable Assets (31,252) 4,352 (37,554) 1,025 Depreciation Expense 716,780 698,020 1,433,439 1,400,025 __________ __________ __________ __________ FFO $2,652,922 $2,222,717 $5,165,755 $4,773,139 ========== ========== ========== ========== Page 11 FUNDS FROM OPERATIONS (CONT'D.) The following are the cash flows provided (used) by operating, investing and financing activities for the six months ended June 30, 2003 and 2002: 2003 2002 ____ ____ Operating Activities $3,048,856 $2,876,905 Investing Activities 612,118 (3,383,416) Financing Activities (4,273,180) 161,102 CONTROLS AND PROCEDURES The Company's Chief Executive Officer and Chief Financial Officer, with the assistance of other members of the Company's management, have evaluated the effectiveness of the Company's disclosure controls and procedures as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on such evaluation, the Company's Chief Executive Officer and Chief Financial Officer have concluded that the Company's disclosure controls and procedures are effective. The Company's Chief Executive Officer and Chief Financial Officer have also concluded that there have not been any changes in the Company's internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting. SAFE HARBOR STATEMENT This Form 10-Q contains various "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, and the Company intends that such forward-looking statements be subject to the safe harbors created thereby. The words "may", "will", "expect", "believe", "anticipate", "should", "estimate", and similar expressions identify forward-looking statements. These forward-looking statements reflect the Company's current views with respect to future events and finance performance, but are based upon current assumptions regarding the Company's operations, future results and prospects, and are subject to many uncertainties and factors relating to the Company's operations and business environment which may cause the actual results of the Company to be materially different from any future results expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the following: (i) changes in the general economic climate; (ii) increased competition in the geographic areas in which the Company owns and operates manufactured housing communities; (iii) changes in government laws and regulations affecting manufactured housing communities; and (iv) the ability of the Company to continue to identify, negotiate and acquire manufactured housing communities and/or vacant land which may be developed into manufactured housing communities on terms favorable to the Company. The Company undertakes no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events, or otherwise. Page 12
PART II OTHER INFORMATION 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 - 31.1 CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 31.2 CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 32 CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 (b) Reports on Form 8-K - Form 8-K dated May 28, 2003 was filed to report that the Company issued a press release regarding a new acquisition. Page 13
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. UNITED MOBILE HOMES, INC. DATE: August 11, 2003 By /s/ Samuel A. Landy Samuel A. Landy President DATE: August 11, 2003 By /s/ Anna T. Chew Anna T. Chew Vice President and Chief Financial Officer Page 14