Revenue More Than Triples for the Nine Months 2018, and for the Quarter
CHARLOTTE, NC / ACCESSWIRE / November 16, 2018 / Manufactured Housing Properties Inc. (OTC PINK: MHPC), which acquires, owns, and operates manufactured housing communities; today announced operating results for the quarter ended September 30, 2018.
Raymond M. Gee, Chairman and CEO of Manufactured Housing Properties Inc. commented, "We continue to make strong progress growing our portfolio. We drove record year over year revenue growth from our focused strategy of purchasing value add communities that are well-located and improving operations by improving efficiency. We remain focused on creating long-term value for our shareholders by building our pipeline of potential opportunities, and securing additional capital to grow our portfolio value."
The Company's net revenues more than tripled to $513,753 for the quarter ended September 30, 2018, as compared to net revenues of $142,317 for the same period ended September 30, 2017. The increase in revenues was primarily due to the acquisitions of five manufactured housing communities subsequent to the third quarter of 2017.
Community operating expenses improved to 39% of revenues to $198,129, for the three months ended September 30, 2018 compared to $101,445 over the three months ended September 30, 2017. The additional community operating expenses year over year was primarily due to the acquisitions of five manufactured housing communities subsequent to the third quarter of 2017.
Corporate general and administrative expenses of $386,824 for the three months ended September 30, 2018, rose $173,309 over the three months ended September 30, 2017. Corporate general and administrative expenses are comprised of salaries and wages of $190,748, dead deal costs of $62,512, and depreciation and amortization of $133,563. The increase was primarily related to corporate overhead cost as the company hired additional employees to support the five acquisitions subsequent to the third quarter of 2017 and to support growth and future acquisitions.
Interest expense was $245,538 for the three months ended September 30, 2018 compared to $38,750 for the three months ended September 30, 2017. The increase was due to additional borrowings to fund the Company's in 2017.
Net loss was $313,737 for the three months ended September 30, 2018, compared to net loss of $209,392 for the three months ended September 30, 2017. The loss during the three months ended September 30, 2018 was primarily related to interest expense on new acquisitions, depreciation expense of $133,563 and corporate payroll cost of $190,748.
For the nine months ended September 30, 2018, the Company produced net revenues that more than tripled to $1.5 million as compared to net revenues of $384,395 for the nine months ended September 30, 2017. Community operating expenses were $670,308 compared to $220,816 over the nine months ended September 30, 2017. These increases were primarily due to the acquisitions of five manufactured housing communities subsequent to the third quarter of 2017. General and administrative expenses of $928,285 for the nine months ended September 30, 2018, rose $651,071 over the nine months ended September 30, 2017. Corporate general and administrative expenses are comprised primarily of salaries and wages of $466,226, transaction related costs of $62,512, and depreciation and amortization of $399,547. The increase was primarily related to corporate overhead cost as the company hired as the company invested in additional team members to support its growth efforts.
Net loss was $825,709 for the nine months ended September 30, 2018, compared to net loss of $203,829 for the nine months ended September 30, 2017. The loss during the nine months ended September 30, 2018 was primarily related to depreciation expense of $399,547 and corporate payroll cost of $528,738. The increase in net loss was primarily related to interest expense on new acquisitions, and corporate overhead costs as the company invested in additional team members to support its growth efforts.
About Manufactured Housing Properties Inc.
Manufactured Housing Properties Inc. together with its affiliates, acquires, owns, and operates manufactured housing communities. The Company focuses on acquiring and operating value-add manufactured home communities in high growth markets.
Contact:
Michael Z. Anise
Chief Financial Officer
(980) 273-1702 ext. 244
MANUFACTURED HOUSING PROPERTIES INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF SEPTEMBER 30, 2018 AND DECEMBER 31, 2017
| Assets | 2018 | 2017 | ||||||
| (unaudited) | ||||||||
| Investment Property | ||||||||
| Land | $ | 4,357,950 | $ | 4,357,950 | ||||
| Site and Land Improvements | 6,773,247 | 6,773,316 | ||||||
| Buildings and Improvements | 1,367,293 | 1,239,504 | ||||||
| Acquisition Cost | 140,758 | 140,758 | ||||||
| Total Investment Property | 12,639,248 | 12,511,528 | ||||||
| Accumulated Depreciation & Amortization | (564,441 | ) | (164,894 | ) | ||||
| Net Investment Property | 12,074,807 | 12,346,634 | ||||||
| Cash and Cash Equivalents | 486,813 | 355,935 | ||||||
| Accounts Receivable, net | 4,790 | 46,400 | ||||||
| Other Assets | 35,827 | 49,971 | ||||||
| Total Assets | $ | 12,602,237 | $ | 12,798,940 | ||||
| Liabilities | ||||||||
| Accounts Payable | $ | 87,290 | $ | 35,726 | ||||
| Loans Payable | 9,067,571 | 9,205,647 | ||||||
| Loans Payable related party | 805,214 | 441,882 | ||||||
| Convertible Note Payable related party | 2,754,550 | 2,754,550 | ||||||
| Accrued Liabilities and Deposits | 430,558 | 136,360 | ||||||
| Tenant Security Deposits | 121,052 | 88,337 | ||||||
| Total Liabilities | 13,266,235 | 12,662,502 | ||||||
| Commitments and Contingencies (See Note 5) | ||||||||
| Stockholders' equity (deficit) | ||||||||
| Preferred Stock (Stock par value $0.01 per share, 10,000,000 shares authorized, and zero shares are issued and outstanding as of September 30, 2018 and December 31, 2017, respectively) | | |||||||
| Common Stock (Stock par value $0.01 per share, 200,000,000 shares authorized, 10,000,000 and 10,000,000 shares are issued and outstanding as of September 30, 2018 and December 31, 2017, respectively) | 100,000 | 100,000 | ||||||
| Additional Paid in Capital | 294,834 | 238,803 | ||||||
| Accumulated Deficit | (1,360,688 | ) | (504,945 | ) | ||||
| Total Manufactured Housing Properties Inc. Stockholders' Equity (Deficit) | (965,854 | ) | (166,142 | ) | ||||
| Non-controlling interest | 301,856 | 302,580 | ||||||
| Total Equity (Deficit) | (663,998 | ) | 136,438 | |||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (Deficit) | $ | 12,602,237 | $ | 12,798,940 | ||||
MANUFACTURED HOUSING PROPERTIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2018 AND 2017
(UNAUDITED)
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||
| Revenue | ||||||||||||||||
| Rental and Related Income | $ | 513,753 | $ | 142,317 | $ | 1,511,834 | $ | 384,395 | ||||||||
| Total Revenues | 513,753 | 142,317 | 1,511,834 | 384,395 | ||||||||||||
| Community Operating Expenses | ||||||||||||||||
| Repair & Maintenance | 35,772 | 59,510 | 112,637 | 65,193 | ||||||||||||
| Real estate taxes | 24,436 | 7,071 | 62,731 | 19,215 | ||||||||||||
| Utilities | 34,965 | 8,005 | 109,056 | 76,744 | ||||||||||||
| Insurance | 10,284 | 4,490 | 41,065 | 7,664 | ||||||||||||
| General and Administrative Expense | 92,672 | 20,369 | 344,819 | 52,000 | ||||||||||||
| Corporate Payroll and Overhead | 253,260 | 179,693 | 528,738 | 200,657 | ||||||||||||
| Depreciation & Amortization Expense | 133,563 | 33,821 | 399,547 | 76,557 | ||||||||||||
| Interest expense | 242,538 | 38,750 | 738,950 | 90,194 | ||||||||||||
| Total Expenses | 827,490 | 351,709 | 2,337,543 | 588,224 | ||||||||||||
| Net loss before provision for income taxes | (313,737 | ) | (209,392 | ) | (825,709 | ) | (203,829 | ) | ||||||||
| Provision for income taxes | - | - | - | - | ||||||||||||
| Net Loss | $ | (313,737 | ) | $ | (209,392 | ) | $ | (825,709 | ) | $ | (203,829 | ) | ||||
| Net Income attributable to the non-controlling interest | 12,276 | 2,885 | 30,034 | 7,436 | ||||||||||||
| Net Loss attributable to the Company | $ | (326,013 | ) | $ | (212,277 | ) | $ | (855,743 | ) | $ | (211,265 | ) | ||||
| Weighted Average Shares - Basic and Fully Diluted | 10,000,000 | 4,530,393 | 10,000,000 | 4,058,230 | ||||||||||||
| Weighted Average - Basic | $ | (0.03 | ) | $ | (0.05 | ) | $ | (0.09 | ) | $ | (0.05 | ) | ||||
| Weighted Average - Fully Diluted | $ | (0.03 | ) | $ | (0.05 | ) | $ | (0.09 | ) | $ | (0.05 | ) | ||||
SOURCE: Manufactured Housing Properties Inc.
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