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Manhattan Bridge Capital, Inc. Reports Second Quarter 2021 Results

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GREAT NECK, N.Y., July 23, 2021 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that its total revenues for the three months ended June 30, 2021 were approximately $1,713,000 compared to approximately $1,741,000 for the three months ended June 30, 2020, a decrease of $28,000, or 1.6%. The decrease in revenues was primarily attributable to lower interest rates charged on loans due to market conditions and intense competition from other lenders. For the three months ended June 30, 2021 and 2020, approximately $1,424,000 and $1,490,000, respectively, of our revenues were attributable to interest income on secured commercial loans that we offer to real estate investors, and approximately $290,000 and $251,000, respectively, of our revenues were attributable to origination fees on such loans. The loans are principally secured by collateral consisting of real estate and accompanied by personal guarantees from the principals of the borrowers.

Net income for the three months ended June 30, 2021 was approximately $1,058,000, or $0.11 per basic and diluted share (based on approximately 9.62 million weighted-average outstanding common shares), as compared to approximately $1,097,000, or $0.11 per basic and diluted share (based on approximately 9.63 million weighted-average outstanding common shares), for the three months ended June 30, 2020. The decrease is primarily attributable to the decrease in interest income resulting from the lower interest rates charged on loans.

Total revenues for the six months ended June 30, 2021 were approximately $3,443,000 compared to approximately $3,452,000 for the six months ended June 30, 2020, a decrease of $9,000. The decrease in revenues was primarily attributable to lower interest rates charged on loans due to market conditions and intense competition from other lenders, offset by an increase in origination fees. For the six months ended June 30, 2021 and 2020, revenues of approximately $2,867,000 and $2,964,000, respectively, were attributable to interest income on secured commercial loans that we offer to real estate investors, and approximately $576,000 and $488,000, respectively, were attributable to origination fees on such loans.

Net income for the six months ended June 30, 2021 was approximately $2,164,000, or $0.22 per basic and diluted share (based on approximately 9.62 million weighted-average outstanding common shares), as compared to approximately $2,113,000, or $0.22 per basic and diluted share (based on approximately 9.64 million weighted-average outstanding common shares), for the six months ended June 30, 2020. This increase is primarily attributable to the decrease in interest expense.

As of June 30, 2021, total stockholders' equity was approximately $33,077,000.

As previously announced, on July 9, 2021, we completed an underwritten public offering of 1,875,000 of our common shares at a public offering price of $7.20 per share. The gross proceeds raised by us in the offering were $13,500,000 before deducting underwriting discounts and commissions and other estimated offering expenses. The total net proceeds from the offering of approximately $12,354,000 were used to reduce the outstanding balance of our existing credit line. We granted the underwriters a 30-day option to purchase up to an additional 281,250 of our common shares to cover over-allotments, if any.

Assaf Ran, Chairman of the Board and CEO, stated, “I believe that the recent follow-on stock offering was beneficial to the Company. The transaction will give us the opportunity to support our growth as the economy recovers, and it will increase our book value. In addition, once again, we demonstrated an offering at a price higher than the price of our previous offering. Revenue and earnings of the second quarter were affected by lower interest rates and a large amount of paid-off loans. Nevertheless, I'm pleased to present another quarter of no defaults.”

About Manhattan Bridge Capital, Inc.

Manhattan Bridge Capital, Inc. offers short-term secured, non–banking loans (sometimes referred to as ‘‘hard money’’ loans) to real estate investors to fund their acquisition, renovation, rehabilitation or improvement of properties located in the New York metropolitan area, including New Jersey and Connecticut, and in Florida. We operate the website: https://www.manhattanbridgecapital.com.

Forward Looking Statements

This press release and the statements of our representatives related thereto contain or may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the generality of the foregoing, words such as “plan,” “project,” “potential,” “seek,” “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “could,” “estimate,” or “continue” are intended to identify forward-looking statements. For example, when we discuss our belief that our stock offering will support our growth as the economy recovers and that it will increase our book value, we are using forward-looking statements. Readers are cautioned that certain important factors may affect the Company’s actual results and could cause such results to differ materially from any forward-looking statements that may be made in this news release. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from those projected, expressed or implied in the forward-looking statements as a result of various factors, including but not limited to the following: (i) our loan origination activities, revenues and profits are limited by available funds; (ii) we operate in a highly competitive market and competition may limit our ability to originate loans with favorable interest rates; (iii) our Chief Executive Officer is critical to our business and our future success may depend on our ability to retain him; (iv) if we overestimate the yields on our loans or incorrectly value the collateral securing the loan, we may experience losses; (v) we may be subject to “lender liability” claims; (vi) our due diligence may not uncover all of a borrower’s liabilities or other risks to its business; (vii) borrower concentration could lead to significant losses; (viii) we may choose to make distributions in our own stock, in which case you may be required to pay income taxes in excess of the cash dividends you receive and (ix) if the effect of the COVID-19 pandemic on our business is greater than anticipated. The risk factors contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 filed with the Securities and Exchange Commission identify important factors that could cause such differences. These forward-looking statements speak only as of the date of this press release, and we caution potential investors not to place undue reliance on such statements. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.


MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS

June 30, 2021

December 31, 2020

(unaudited)

(audited)

Assets

Loans receivable

53,385,871

58,097,970

Interest receivable on loans

915,738

827,236

Cash

153,187

131,654

Cash - restricted

---

327,483

Other assets

140,932

66,566

Operating lease right-of-use asset, net

343,566

369,699

Deferred financing costs, net

15,056

22,807

Total assets

$

54,954,350

$

59,843,415

Liabilities and Stockholders’ Equity

Liabilities:

Line of credit

$

15,397,115

$

20,308,873

Senior secured notes (net of deferred financing costs of $359,784 and $397,327, respectively)

5,640,216

5,602,673

Deferred origination fees

357,753

367,638

Accounts payable and accrued expenses

133,912

168,940

Operating lease liability

348,835

372,907

Dividends payable

---

1,058,194

Total liabilities

21,877,831

27,879,225



Commitments and contingencies

Stockholders’ equity:

Preferred stock - $.01 par value; 5,000,000 shares authorized; none issued

---

---

Common stock - $.001 par value; 25,000,000 shares authorized; 9,882,058 issued; 9,619,945 outstanding

9,882

9,882

Additional paid-in capital

33,163,628

33,157,096

Treasury stock, at cost – 262,113 shares

(798,939

)

(798,939

)

Retained earnings (accumulated deficit)

701,948

(403,849

)

Total stockholders’ equity

33,076,519

31,964,190


Total liabilities and stockholders’ equity


$


54,954,350


$


59,843,415


MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)

Three Months
Ended June 30,

Six Months
Ended June 30,

2021

2020

2021

2020

Interest income from loans

$

1,423,759

$

1,490,395

$

2,866,573

$

2,963,940

Origination fees

289,670

250,791

576,143

488,233

Total revenue

1,713,429

1,741,186

3,442,716

3,452,173

Operating costs and expenses:

Interest and amortization of deferred financing costs



316,915



326,247



634,101



678,689

Referral fees

2,643

1,386

4,394

1,928

General and administrative expenses

339,602

318,726

648,583

663,507

Total operating costs and expenses

659,160

646,359

1,287,078

1,344,124

Income from operations

1,054,269

1,094,827

2,155,638

2,108,049

Other income

4,500

3,000

9,000

6,000

Income before income tax expense

1,058,769

1,097,827

2,164,638

2,114,049

Income tax expense

(647

)

(645

)

(647

)

(645

)

Net income

$

1,058,122

$

1,097,182

$

2,163,991

$

2,113,404

Basic and diluted net income per common share outstanding:

--Basic

$

0.11

$

0.11

$

0.22

$

0.22

--Diluted

$

0.11

$

0.11

$

0.22

$

0.22

Weighted average number of common shares outstanding:

--Basic

9,619,945

9,628,405

9,619,945

9,640,146

--Diluted

9,619,945

9,628,405

9,619,945

9,640,146


MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(unaudited)

FOR THE THREE MONTHS ENDED JUNE 30, 2021

Common Shares

Additional Paid in Capital

Treasury Stock

Retained Earnings

Totals

Shares

Amount

Shares

Cost

Balance, April 1, 2021

9,882,058

$

9,882

$

33,160,362

262,113

$

(798,939

)

$

702,020

$

33,073,325

Non - cash compensation

3,266

3,266

Dividends paid

(1,058,194

)

(1,058,194

)

Net income

1,058,122

1,058,122

Balance, June 30, 2021

9,882,058

$

9,882

$

33,163,628

262,113

$

(798,939

)

$

701,948

$

33,076,519

FOR THE THREE MONTHS ENDED JUNE 30, 2020

Common Shares

Additional Paid in Capital

Treasury Stock

Retained Earnings

Totals

Shares

Amount

Shares

Cost

Balance, April 1, 2020

9,882,058

$

9,882

$

33,147,298

249,823

$

(750,724

)

$

425,414

$

32,831,870

Purchase of treasury shares

5,390

(20,835

)

(20,835

)

Non - cash compensation

3,266

3,266

Dividends paid

(1,059,546

)

(1,059,546

)

Net income

1,097,182

1,097,182

Balance, June 30, 2020

9,882,058

$

9,882

$

33,150,564

255,213

$

(771,559

)

$

463,050

$

32,851,937

FOR THE SIX MONTHS ENDED JUNE 30, 2021

Common Shares

Additional Paid in Capital

Treasury Stock

Accumulated Deficit (Retained Earnings)

Totals

Shares

Amount

Shares

Cost

Balance, January 1, 2021

9,882,058

$

9,882

$

33,157,096

262,113

$

(798,939

)

$

(403,849

)

$

31,964,190

Non - cash compensation

6,532

6,532

Dividends paid

(1,058,194

)

(1,058,194

)

Net income

2,163,991

2,163,991

Balance, June 30, 2021

9,882,058

$

9,882

$

33,163,628

262,113

$

(798,939

)

$

701,948

$

33,076,519

FOR THE SIX MONTHS ENDED JUNE 30, 2020

Common Shares

Additional Paid in Capital

Treasury Stock

Accumulated Deficit
(Retained Earnings)

Totals

Shares

Amount

Shares

Cost

Balance, January 1, 2020

9,882,058

$

9,882

$

33,144,032

223,214

$

(619,688

)

$

(590,808

)

$

31,943,418

Non - cash compensation

6,532

6,532

Purchase of treasury shares

31,999

(151,871

)

(151,871

)

Dividends paid

(1,059,546

)

(1,059,546

)

Net income

2,113,404

2,113,404

Balance, June 30, 2020

9,882,058

$

9,882

$

33,150,564

255,213

$

(771,559

)

$

463,050

$

32,851,937


MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)

Six Months

Ended June 30,

2021

2020

Cash flows from operating activities:

Net income

$

2,163,991

$

2,113,404

Adjustments to reconcile net income to net cash provided by

operating activities -

Amortization of deferred financing costs

45,294

50,256

Adjustment to operating lease right-of-use asset and liability

2,060

-200

Depreciation

1,153

548

Non-cash compensation expense

6,532

6,532

Changes in operating assets and liabilities:

Interest receivable on loans

(88,502

)

(124,303

)

Other assets

(56,768

)

(65,316

)

Accounts payable and accrued expenses

(35,028

)

(32,015

)

Deferred origination fees

(9,885

)

39,513

Net cash provided by operating activities

2,028,847

1,988,419

Cash flows from investing activities:

Issuance of short term loans

(15,567,677

)

(21,798,160

)

Collections received from loans

20,279,776

19,455,628

Release of loan holdback relating to mortgage receivable

---

(15,000

)

Purchase of fixed assets

---

(923

)

Net cash provided by (used in) investing activities

4,712,099

(2,358,455

)

Cash flows from financing activities:

(Repayment of) proceeds from line of credit, net

(4,911,758

)

2,843,235

Dividends paid

(2,116,388

)

(2,218,607

)

Pre-offering costs incurred

(18,750

)

---

Purchase of treasury shares

---

(151,871

)

Deferred financing costs incurred

---

(27,102

)

Net cash (used in) provided by financing activities

(7,046,896

)

445,655

Net (decrease) increase in cash

(305,950

)

75,619

Cash and restricted cash, beginning of year

459,137

118,407

Cash and restricted cash, end of period

$

153,187

$

194,026

Supplemental Cash Flow Information:

Taxes paid during the period

$

647

$

645

Interest paid during the period

$

603,869

$

650,130

Operating leases paid during the period

$

31,719

$

27,227

Supplemental Information – Noncash Information:

Interest receivable converted to loans receivable in connection with forbearance agreements

$

---

$

29,671

CONTACT: Contact: Assaf Ran, CEO Vanessa Kao, CFO (516) 444-3400 SOURCE: Manhattan Bridge Capital, Inc.