Manufactured Housing Properties Inc. Announces Results for The Quarter Ended September 2018

Manufactured Housing Properties Inc.

Companies Mentioned:

Primary Exchange: OTC PINK
Under the Symbol: MHPC

$1.00

$0.0100

1.01%


Manufactured Housing Properties Inc. Announces Results for The Quarter Ended September 2018

Friday, November 16, 2018 4:45 PM

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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