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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
UNITED MOBILE HOMES, INC
CONSOLIDATED BALANCE SHEET
AS OF JUNE 30, 2003 AND DECEMBER 31, 2002
-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
=========== ===========
-UNAUDITED-
See Accompanying Notes to Consolidated Financial Statements
Page 3
UNITED MOBILE HOMES, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE AND SIX MONTHS ENDED
JUNE 30, 2003 AND 2002
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
========= ========== ========= =========
-UNAUDITED-
See Accompanying Notes to Consolidated Financial Statements
Page 4
UNITED MOBILE HOMES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE THREE MONTHS ENDED
JUNE 30, 2003 AND 2002
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
========== ==========
-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