JOPLIN, Mo., January 8, 2008 MONOPOLY I, L.L.C. (M1), a real estate investment company, today announced financial results for its fourth quarter ended December 31, 2007.
-4Q07 Revenue increased 11% over 3Q07 to $34,344.
-Net loss YTD for 2007 is $36,872 after property depreciation.
-Capital raised since inception of the company is $384,550 vs. goal of $330,000.
-Total assets are $1,424,532 in line with company’s goal.
Fourth quarter 2007 and 2007 financial results
Revenue:
M1’s fourth quarter revenue was $34,344 compared to $31,038 in the third quarter, an increase of 11% just shy of the company's prior guidance of $36,000. For 2007, M1’s revenue was $119,182 a 540% increase over 2006 ($18,636).
Net Operating Income:
M1’s net operating income was $2,491 compared to $6,624 in 3Q07. The decrease in net operating income is due to an increase in depreciation (40%), insurance (167%) and repairs/maintenance (117%) over 3Q07. The increases in operating expenses are directly related to our latest property purchase on Michigan Ave (11 unit apartment building). M1 management is sensitive to the higher costs and we feel that the renovation investment made in the property will payoff in the future as we attract tenants and obtain higher than average rental rates.
Operating expenses:
Although we have had an increase in operating expenses of $31,853 compared to $24,414 in 3Q07, spending was below the company's prior guidance of $34,000. Maintaining cost controls and investing our funds in revenue producing or value added projects will pay dividends in the future. M1 management did an excellent job in controlling our utilities cost as we saw a decrease of 15% over 3Q07.
Net income:
Taxable net loss was $17,488 compared to $7,263 in 3Q07. Our taxable net loss for 2007 is $36,872; however, in backing out property depreciation and stock awards (referral fees) the company experienced a positive cash flow of $1,746 for 2007.
EBITA & Earnings per share:
Earnings before interest, taxes and amortization were $13,271 compared to $22,027 in 3Q. For 2007, EBITA is $54,197 or $1.55 per share.
Balance sheet:
Cash, cash equivalents, and short-term investments as of December 31, 2007 were $59,305 compared to $58,574 as of December 31, 2006. The increase is largely due to price appreciation in our CGM Realty fund, offset by our recent cash outlay for our Michigan avenue purchase. CGM Realty fund’s share price appreciated 30.07% in 2007. During 2007, M1 grew total assets from $668,574 to $1,424,532 an increase of $755,958. The increase in total assets includes the purchase of five properties. The company’s long-term debt increased $521,957 to $982,585 also due to the above acquisitions. Share members equity increased $234,001 to $441,947. In 2007, M1 issued 16,735 member shares. No shares were repurchased by the company in 2007.
Other developments during the 4th quarter
Acquisition:
NONE
Guidance for first quarter 2008:
For the first quarter, ending March 31, 2008, total revenue is expected to be $36,000. We expect an increase in rental income as we complete apartment renovations and achieve full occupancy. Operating expenses are expected to be $34,000 as we continue to execute our preventive maintenance plan and establish an office. Net income and earnings per share for the first quarter are expected to be break even, assuming a weighted average share count of 36,800 shares.
About MONOPOLY I, L.L.C.
MONOPOLY I, L.L.C. (M1), a limited liability company, is engaged in the acquisition, ownership, management, and redevelopment of rental properties. The company rents and leases its rental units to a diverse base of residents. As of December 31, 2007, M1 owned a real estate portfolio of 7 rental properties containing approximately 39 apartment units located in Joplin, Missouri. M1 was founded in 2006 and is headquartered in Joplin, Missouri.
For more information about M1, please visit our blog at:
www. monopoly1llc.blogspot.com
Editorial Contact:
William R. HolstinePresident/CEO
630.649.1837
wholstine@monopoly1llc.com
© 2007 MONOPOLY I, L.L.C. All rights reserved. MONOPOLY I, L.L.C. is a registered trademark in the state of Missouri.
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