MHpC - Manufactured Housing Properties Inc. Announces Results For The Year Ended December 31 2018
- Revenue Increase 190% For The Year Ended December 31, 2018
CHARLOTTE, NC / ACCESSWIRE / April 1, 2019 / Manufactured Housing Properties Inc. (OTC PINK: MHPC), which acquires, owns, and operates manufactured housing communities; today announced operating results for the year ended December 31, 2018.
Raymond M. Gee, Chairman and CEO of Manufactured Housing Properties Inc. commented, "Our 2018 year end results show solid execution of our business plan of improving operational efficiencies of our manufactured housing properties, as we increased net operating income on our existing portfolio to $1,323,931 from $418,458 for the years ended 2018 and 2017, respectively. We remain focused on creating long-term value for our shareholders by maximizing returns through operational improvement, and growing our portfolio through new acquisitions."
We continue to record year over year revenue growth from our focused strategy of acquiring 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 maximizing returns through operational efficiencies, and securing additional capital to grow our portfolio value."
The Company's net revenues increased 190% to $2,000,312 for the year ended December 31, 2018, as compared to net revenues of $689,788 for the same period in 2017. The increase in revenues was primarily due to the acquisitions of five manufactured housing communities subsequent to the third quarter of 2017, and an increase in our portfolio's occupancy and rental rates.
Community operating expenses improved to 34% of revenues to $676,381, for the year ended December 31, 2018 compared to 39% of revenues totaling $271,330 over the same period in 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 $1,564,817 for the year ended December 31, 2018, increased by $1,217,384 over the year ended December 31, 2017. Corporate General and administrative expenses are mainly comprised of Payroll expenses of $588,646, Stock based compensation expense of $171,569, Audit and Legal fees of $193,957, and Depreciation and Amortization of $534,290. This increase was primarily related to an increase of $371,611 in Depreciation and Amortization expenses, and an increase of $845,773 in Corporate Payroll and Overhead expenses. Corporate Payroll and Overhead increased 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. Overhead expenses mainly increased during the year ended December 31, 2018 due to additional legal and audit cost related to the Company's reverse merger transaction and acquisitions, and stock-based compensation issued to consultant.
Interest expense of $1,001,455 for the year ended December 31, 2018, increased by $749,657 over interest expense of $251,798 for the year ended December 31, 2017. The increase in interest expense was due to additional debt incurred related to the 5 acquisitions during the fourth quarter of 2017, and an increase in imputed interest of $37,207.
Net loss was $1,296,393 for the year ended December 31, 2018, compared to net loss of $506,087 for the year ended December 31, 2017. The loss during the year ended December 31, 2018 was primarily related to depreciation expense of $534,291, stock-based compensation expenses of $171,569, and corporate payroll and overhead cost of $1,030,527. The increase related to corporate overhead cost is due to additional legal and audit cost related to the Company's acquisitions and reverse merger transaction, and the company's proactive efforts in hiring additional employees to support the five acquisitions during the fourth quarter of 2017 and to support growth and future acquisitions.
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.
CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2018 AND DECEMBER 31, 2017
| Assets |
| 2018 |
| 2017 |
| Investment Property |
| Land |
| $ |
| 4,357,950 |
| $ |
| 4,357,950 |
| Site and Land Improvements |
| 6,781,845 |
| 6,773,316 |
| Buildings and Improvements |
| 1,441,222 |
| 1,239,504 |
| Acquisition Cost |
| 140,758 |
| 140,758 |
| Total Investment Property |
| 12,721,775 |
| 12,511,528 |
| Accumulated Depreciation & Amortization |
| (699,184 |
| ) |
| (164,894 |
| Net Investment Property |
| 12,022,591 |
| 12,346,634 |
| Cash and Cash Equivalents |
| 458,271 |
| 355,935 |
| Accounts Receivable, net |
| 12,987 |
| 46,400 |
| Other Assets |
| 99,472 |
| 49,971 |
| Total Assets |
| $ |
| 12,593,321 |
| $ |
| 12,798,940 |
| Liabilities |
| Accounts Payable |
| $ |
| 71,091 |
| $ |
| 35,726 |
| Loans Payable |
| 9,086,110 |
| 9,205,647 |
| Loans Payable - related party |
| 890,632 |
| 441,882 |
| Convertible Note Payable - Related party |
| 2,754,550 |
| 2,754,550 |
| Accrued Liabilities |
| 612,819 |
| 136,360 |
| Tenant Security Deposits |
| 131,149 |
| 88,337 |
| Total Liabilities |
| 13,546,351 |
| 12,662,502 |
| Commitments and Contingencies (See note 6) |
| - |
| - |
| Stockholders' equity (deficit) |
| Preferred Stock (Stock par value $0.01 per share, 10,000,000 shares authorized, of which 4,000,000 shares designated Series A Cumulative Convertible, and zero shares are issued and outstanding as of December 31, 2018 and 2017, respectively) |
| - |
| - |
| Common Stock (Stock par value $0.01 per share, 200,000,000 shares authorized, 10,350,062 and 10,000,062 shares are issued and outstanding as of December 31, 2018 and 2017, respectively) |
| 103,500 |
| 100,000 |
| Additional Paid in Capital |
| 451,567 |
| 238,803 |
| Accumulated deficit |
| (1,801,338 |
| ) |
| (504,945 |
| Total Manufactured Housing Properties, Inc. Stockholders' Deficit |
| (1,246,271 |
| ) |
| (166,142 |
| Non-controlling interest |
| 293,241 |
| 302,580 |
| Total Equity (Deficit) |
| (953,030 |
| ) |
| 136,438 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) |
| $ |
| 12,593,321 |
| $ |
| 12,798,940 |
MANUFACTURED HOUSING PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017
| 2018 |
| 2017 |
| Revenue |
| Rental and Related Income |
| $ |
| 1,975,312 |
| $ |
| 689,788 |
| Management fees, related party |
| 4,000 |
| - |
| Home sales |
| 21,000 |
| - |
| Total Revenues |
| 2,000,312 |
| 689,788 |
| Community Operating Expenses |
| Repair & Maintenance |
| 135,131 |
| 26,891 |
| Real estate taxes |
| 81,024 |
| 31,840 |
| Utilities |
| 149,516 |
| 97,769 |
| Insurance |
| 54,079 |
| 12,462 |
| General and Administrative Expense |
| 256,631 |
| 102,368 |
| Total Community Operating Expenses |
| 676,381 |
| 271,330 |
| Corporate Payroll and Overhead |
| 1,030,527 |
| 184,754 |
| Depreciation & Amortization Expense |
| 534,290 |
| 162,680 |
| Interest expense |
| 1,001,455 |
| 251,798 |
| Reorganization costs |
| - |
| 304,559 |
| Total Expenses |
| 3,242,653 |
| 1,175,121 |
| Net loss before provision for income taxes |
| (1,242,341 |
| ) |
| (485,333 |
| ) |
| Provision for income taxes |
| 8,286 |
| - |
| Net loss |
| $ |
| (1,250,627 |
| ) |
| $ |
| (485,333 |
| ) |
| Net Income attributable to the non-controlling interest |
| 45,766 |
| 20,754 |
| Net Loss attributable to the Company |
| $ |
| (1,296,393 |
| ) |
| $ |
| (506,087 |
| ) |
| Weighted Average Shares - Basic and Fully Diluted |
| 10,100,747 |
| 5,175,180 |
| Weighted Average - Basic |
| $ |
| (0.13 |
| ) |
| $ |
| (0.10 |
| ) |
| Weighted Average - Fully Diluted |
| $ |
| (0.13 |
| ) |
| $ |
| (0.10 |
| ) |
SOURCE: Manufactured Housing Properties Inc.