SCOTTSDALE, Ariz., Nov. 13, 2017 /PRNewswire/ -- Zoned Properties, Inc. (OTCQX: ZDPY), a strategic real estate development firm whose primary mission is to identify, develop, and lease sophisticated, safe, and sustainable properties in emerging industries, including the licensed medical marijuana industry, today announced its financial results for the three and nine-month periods ended September 30, 2017.
Unveiled the Chino Valley Cultivation Facility master plan, for its 47.6-acre property approved for medical marijuana development located in Northern Arizona.
Signed another amendment to the existing lease agreement with its anchor tenant at the company's Medical Marijuana Business Park located in Tempe, Arizona increasing the size of the leased space and monthly rental payments beginning November 1, 2017.
Entered into a Binding Letter of Intent with Indoor Harvest Corp. outlining independent agreements to complete three research and development projects for licensed medical marijuana facilities in Arizona, Colorado, and Texas.
Third Quarter 2017 Financial Results
Revenue increased 10% to $535,000, compared to $487,741 for the third quarter of 2016.
Operating expenses decreased 9% to $326,000 from $357,000 for the third quarter of 2016.
Income from operations was $209,000 for the third quarter of 2017, compared to $130,000for the third quarter last year.
Net income was $182,000, or $0.01 per basic and diluted share, compared to $74,000, or $0.00 per basic and diluted share, for the third quarter of 2016.
As of September 30, 2017, the Company had cash of $791,000, compared to $366,000 as of December 31, 2016.
Nine-Month Period 2017 Financial Results
Revenue increased 21% to $1.6 million, compared to $1.3 million for the comparable nine-month period in 2016.
Operating expenses decreased 26% to $1.1 million, from $1.5 million for the comparable nine-month period in 2016.
Inclusive of the one-time gain of approximately $832,000 on the sale of a property in Tempe, Ariz. recognized in the first quarter of 2017, net income was $1.2 million, or $0.06 per basic and diluted share, compared to a net loss of $(336,000), or $(0.02) per basic and diluted share, for the comparable nine-month period in 2016.
Net cash used in operating activities was $110,000 for the nine-month period in 2017 primarily attributable to the payoff of interest on short term debt that was retired in the first quarter, as compared to $118,000 for the comparable 2016 period.
"This was a milestone quarter for Zoned Properties, with continued strong financial performance and the unveiling of the long-term master plan at our 47.6-acre Chino Valley Cultivation Facility," commented Bryan McLaren, Chief Executive Officer of Zoned Properties. "We are increasing development standards by integrating sophisticated cultivation process designs with principles of sustainable development. We have big ambitions for our Medical Marijuana Business Park in Tempe, Arizona and are moving quickly to advance its development including the finalization of a master plan for the property. With built-in rental escalators and the existing opportunity to more than double our annual rent revenue, Zoned Properties is well-positioned for profitable growth, and poised to build on our leadership position in this industry."
"Our progress has drawn the interest of others in the industry, and accordingly, we are seeing expanded opportunities to provide Strategic Advisory Services across the country," added Mr. McLaren. "We are seeking long-term agreements that provide Zoned with an ownership interest in attractive projects, helping us build the company's portfolio as we identify and work with sophisticated professionals in the industry."
Letter to Shareholders
Management today published a shareholder letter, designed to further elaborate on the Company's strategy and recent progress. Interested parties may view this letter here.
About Zoned Properties, Inc. (ZDPY):
Zoned Properties is a strategic real estate development firm whose primary mission is to identify, develop, and lease sophisticated, safe, and sustainable properties in emerging industries, including the licensed medical marijuana industry. The Company acquires commercial properties that face unique zoning challenges and identifies solutions that can potentially have a major impact on the cash flow and property value. Zoned Properties targets commercial properties that can be acquired and re-zoned for specific purposes. Zoned Properties does not grow, harvest, sell or distribute cannabis or any substances regulated under United States law such as the Controlled Substances Act.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included in this press release are forward-looking statements. In some cases, forward-looking statements can be identified by words such as "believe," "expect," "anticipate," "plan," "potential," "continue" or similar expressions. Such forward-looking statements include risks and uncertainties, and there are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors, risks and uncertainties are discussed in the Company's filings with the Securities and Exchange Commission. Investors should not place any undue reliance on forward-looking statements since they involve known and unknown, uncertainties and other factors which are, in some cases, beyond the Company's control which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects the Company's current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to operations, results of operations, growth strategy and liquidity. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.