SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) December 19, 1997
UNITED MOBILE HOMES, INC.
(Exact name of registrant as specified in its charter)
New Jersey 0-13130 22-1890929
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification Number)
125 Wyckoff Road, Eatontown, NJ 07724
(Address of principal executive offices)
Registrant's telephone number, including area code (732) 389-3890
(Former name or former address, if changed since last report.)
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Item 2. Acquisition or Disposition of Assets.
On December 19, 1997, United Mobile Homes, Inc.
(Registrant) purchased Waterfalls Village, a 202-space
manufactured home community located in Hamburg, New York
from Home Properties of New York, L.P., an unrelated
entity. This community is 100% occupied. The purchase
price was approximately $4,200,000. United Mobile Homes,
Inc. paid approximately $1,050,000 in cash and obtained a
mortgage from Summit Bank of approximately $3,150,000. This
mortgage payable is at an interest rate of 7-5/8% and is
due January 1, 2003. The property acquired is a
manufactured home community and will continue to be used as
such.
Item 7. Financial Statements and Exhibits.
(a) Financial statements of businesses acquired.
Pursuant to Regulation S-X, Rule 3-14, Registrant is
required to present, for the most recent fiscal year, an
audited income statement for the property acquired. The
property was acquired from an unrelated party. It is not
practical to present this income statement with this filing.
Registrant will provide this information on an amendment to
this Form 8-K within 60 days from the date of this filing.
Registrant is also required to report the material
factors considered in assessing the property, which are as
follows:
* Description of Property - The property
acquired is a manufactured home community with 202 double-
wide spaces on approximately 35 acres located at 3450 Howard
Road, Hamburg, New York. The community has paved streets
and concrete driveways. The community is serviced by
municipal sewer and water systems.
* Occupancy Rate and Rent Amount - The community is
100% occupied. All spaces are leased on a month-to-month
basis. The rent per space per month range from $284 to
$339. The weighted average rent per space per month is
$313.
* Basis of Acquired Property for Depreciation - The
basis for depreciation is the purchase price of the
property. Per the Sales and Purchase Agreement, $3,775,000
of the purchase price is allocated to land improvements
which will be depreciated over a 27.5 year life on a
straight-line basis (Modified Accelerated Recovery System)
and $5,000 of the purchase price is allocated to machinery
and equipment which will be depreciated over a 5 year life
on a straight-line basis. The residual is attributable to
land.
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* Anticipated Capital Improvements - The Registrant
does not anticipate any significant capital improvements.
* Insurance Coverage - Insurance on the property will
be included with the Registrant's overall insurance package.
In the opinion of the Registrant, this coverage is
adequate.
The Registrant knows of no other material factors
relating to the property acquired other that those discussed
in this Form 8-K.
(b) Pro forma financial information.
Pursuant to Regulation S-X, Article 11, Registrant is
required to present pro forma financial information. The
following is pro forma financial information. The impact of
the property acquired to the financial statements of the
Registrant is as follows:
ADJUSTMENTS TO STATEMENT OF INCOME FOR THE YEAR
ENDED DECEMBER 31, 1996
Rental and Related Income - Increase of $759,000 based
upon the weighted average rent per space per month of
$313 times 202 spaces times 12 months.
Community Operating Expenses - Increase of $325,000
based upon the Registrant's Operating Expense Ratio
of 43%.
Interest Expense - Increase of $238,000 based upon a
mortgage of $3,150,000 at 7-5/8% interest and total
monthly principal and interest payments of $25,617.
Depreciation Expense - Increase of $138,000 based upon
$3,775,000 of land improvements with straight-line
depreciation over a 27.5 year life and $5,000 of
machinery and equipment with straight-line depreciation
over a 5 year life.
Net Income - Increase of $58,000 (rental and related
income less community operating expenses, interest
expense and depreciation expense).
The effect of cash made available by operations will be
an increase of $196,000 (net income plus depreciation expense).
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ADJUSTMENTS TO STATEMENT OF INCOME FOR THE NINE
MONTHS ENDED SEPTEMBER 30, 1997
Rental and Related Income - Increase of $569,000 based
upon the weighted average rent per space per month of
$313 times 202 spaces times 9 months.
Community Operating Expenses - Increase of $245,000
based upon the Registrant's Operating Expense Ratio of 43%.
Interest Expense - Increase of $179,000 based upon a
mortgage of $3,150,000 at 7-5/8% interest and total
monthly principal and interest payments of $25,617.
Depreciation Expense - Increase of $104,000 based upon
$3,775,000 ofland improvements with straight-line
depreciation over a 27.5 year life and $5,000 of
machinery and equipment with straight-line depreciation
over a 5 year life.
Net Income - Increase of $41,000 (rental and related
income less community operating expenses, interest
expense and depreciation expense).
The effect of cash made available by operations
will be an increase of $145,000 (net income plus
depreciation expense).
ADJUSTMENTS TO THE BALANCE SHEET AT SEPTEMBER 30, 1997
Cash and Cash Equivalents - Decrease of $1,050,000,
the amount of cash used for the purchase.
Investment Property and Equipment - Increase of
$4,200,000, based on the purchase price.
Mortgages Payable - Increase of $3,150,000, the amount
of the mortgage on the acquired property.
Registrant knows of no other financial statement item
which would be materially affected by the acquired
property.
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SIGNATURES
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
hereunto duly authorized.
UNITED MOBILE HOMES, INC.
/s/ Samuel A. Landy
SAMUEL A. LANDY
President
Date December 30, 1997
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