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Manhattan Bridge Capital, Inc. Reports Second Quarter 2019 Results

GREAT NECK, N.Y., July 26, 2019 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that its total revenue for the three months ended June 30, 2019 was approximately $1,779,000 compared to approximately $1,668,000 for the three months ended June 30, 2018, an increase of $111,000, or 6.7%. For the three months ended June 30, 2019, approximately $1,487,000 of the Company's revenue represents interest income on the secured, commercial loans that the Company offers to small businesses compared to approximately $1,423,000 for the same period in 2018, and approximately $292,000 represents origination fees on such loans compared to approximately $244,000 for the same period in 2018. The increase in revenue represents an increase in lending operations.

Net income for the three months ended June 30, 2019 was approximately $1,084,000, or $0.11 per basic and diluted share (based on approximately 9.7 million weighted-average outstanding common shares), as compared to approximately $949,000, or $0.12 per basic and diluted share (based on approximately 8.1 million weighted-average outstanding common shares), for the three months ended June 30, 2018. This increase is primarily attributable to an increase in revenue, and a decrease in interest costs resulting from lower outstanding amounts under a revolving credit facility following the Company’s public offering in July 2018.

Total revenue for the six months ended June 30, 2019 was approximately $3,567,000 compared to approximately $3,332,000 for the six months ended June 30, 2018, an increase of $235,000, or 7.1%. For the six months ended June 30, 2019, approximately $2,990,000 of the Company's revenue represents interest income on the secured, commercial loans that the Company offers to small businesses compared to approximately $2,853,000 for the same period in 2018, and approximately $577,000 represents origination fees on such loans compared to approximately $480,000 for the same period in 2018. The increase in revenue represents an increase in lending operations.

Net income for the six months ended June 30, 2019 was approximately $2,205,000, or $0.23 per basic and diluted share (based on approximately 9.7 million weighted-average outstanding common shares), as compared to approximately $1,930,000, or $0.24 per basic and diluted share (based on approximately 8.1 million weighted-average outstanding common shares), for the six months ended June 30, 2018. This increase is primarily attributable to an increase in revenue, and a decrease in interest costs resulting from lower outstanding amounts under a revolving credit facility following the Company’s public offering in July 2018.

As of June 30, 2019, total stockholders' equity was approximately $33,125,000.

Assaf Ran, Chairman of the Board and CEO, stated, “The real estate market in the geographical areas in which we operate is slow and uncertain. In addition, we still face a high level of competition. Therefore, the interest rate we are able to charge has dropped by approximately 2%. These factors generate a challenging working environment for us, but we still managed to increase net earnings and maintain our default-free track record. In addition, we recently announced a geographical expansion to New Jersey, Connecticut and Florida. Rest assured that our high loan quality standards will not be compromised.”

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 web site: 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 high loan quality standards will not be compromised, 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; and (viii) we may choose to make distributions in our own stock, in which case stockholders may be required to pay income taxes in excess of the cash dividends you receive. The risk factors contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018 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, 2019     December 31, 2019
  (unaudited)     (audited)
Assets              
Loans receivable $ 55,911,967     $ 54,836,127  
Interest receivable on loans   672,900       596,777  
Cash   127,169       203,682  
Cash - restricted   ---       151,375  
Other assets   127,559       73,131  
Operating lease right-of-use asset, net   113,724       ---  
Deferred financing costs   32,339       42,040  
Total assets $ 56,985,658     $ 55,903,132  
               
Liabilities and Stockholders’ Equity              
Liabilities:              
Line of credit $ 17,737,803     $ 16,622,147  
Senior secured notes (net of deferred financing costs of $509,956 and $547,499, respectively)   5,490,044       5,452,501  
Deferred origination fees   396,443       404,676  
Accounts payable and accrued expenses   122,789       183,716  
Operating lease liability   113,724       ---  
Dividends payable   ---       1,158,717  
Total liabilities   23,860,803       23,821,757  
               
Commitments and contingencies              
Stockholders’ equity:              
Preferred shares - $.01 par value; 5,000,000 shares authorized; none issued   ---       ---  
Common shares - $.001 par value; 25,000,000 shares authorized; 9,881,191 and 9,874,191 issued, respectively; 9,657,977 and 9,655,977 outstanding, respectively   9,881       9,874  
Additional paid-in capital   33,137,501       33,110,536  
Treasury stock, at cost – 223,214 and 218,214 shares   (619,688 )     (590,234 )
Retained earnings (accumulated deficit)   597,161       (448,801 )
Total stockholders’ equity   33,124,855       32,081,375  
               
Total liabilities and stockholders’ equity $ 56,985,658     $ 55,903,132  
               

 


     
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
     
  Three Months
Ended June 30,
Six Months
Ended June 30,
    2019        2018       2019        2018
Interest income from loans $   1,487,117     $   1,423,352     $ 2,990,202     $ 2,852,600
Origination fees   292,253       244,348       577,227       479,574
Total revenue   1,779,370       1,667,700       3,567,429       3,332,174
         
Operating costs and expenses:        
Interest and amortization of debt service costs   387,511       413,074       766,393       810,778
Referral fees   625       83       2,708       416
General and administrative expenses   309,619       305,155       598,356       590,674
Total operating costs and expenses   697,755       718,312       1,367,457       1,401,868
Income from operations   1,081,615       949,388       2,199,972       1,930,306
Other income   3,000       ---       6,000       ---
Income before income tax expense   1,084,615       949,388       2,205,972       1,930,306
Income tax expense   (572 )     ---       (572 )     ---
Net income $ 1,084,043     $ 949,388     $ 2,205,400     $ 1,930,306
         
Basic and diluted net income per common share outstanding:        
--Basic $ 0.11     $ 0.12     $ 0.23     $ 0.24
--Diluted $ 0.11     $ 0.12     $ 0.23     $ 0.24
         
Weighted average number of common shares outstanding:        
--Basic   9,659,317       8,111,276       9,657,557       8,110,112
--Diluted   9,661,620       8,119,984       9,659,897       8,117,817


 
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(unaudited)
 
FOR THE THREE MONTHS ENDED JUNE 30, 2019
  Common Stock Additional Paid
in Capital
Treasury Stock Retained
Earnings
Totals
  Shares   Amount   Shares   Cost    
Balance, April 1, 2019 9,881,191   $9,881   $33,134,235   219,214   $(595,878 )   $672,556     $  33,220,794  
Purchase of treasury shares                 4,000     (23,810 )             (23,810 )
Non cash compensation             3,266                         3,266  
Dividends paid                               (1,159,438 )     (1,159,438 )
Net income                               1,084,043       1,084,043  
Balance, June 30, 2019 9,881,191   $9,881   $33,137,501   223,214   $(619,688 )   $  597,161     $  33,124,855  


FOR THE THREE MONTHS ENDED JUNE 30, 2018
  Common Stock Additional Paid
in Capital
Treasury Stock Retained
Earnings
Totals
  Shares   Amount   Shares   Cost    
Balance, April 1, 2018 8,319,036   $  8,319   $ 23,170,777   210,102   $ (541,491 )   $593,252     $  23,230,857  
Exercise of warrants 8,881     9     48,726                         48,735  
Non cash compensation             3,266                         3,266  
Dividends paid                               (973,072 )     (973,072 )
Net income                               949,388       949,388  
Balance, June 30, 2018 8,327,917   $8,328   $23,222,769   210,102   $(541,491 )   $  569,568     $  23,259,174  

   
    

FOR THE SIX MONTHS ENDED JUNE 30, 2019
  Common Stock Additional Paid
in Capital
Treasury Stock Accumulated
Deficit
(Retained
Earnings)
Totals
  Shares   Amount   Shares   Cost    
Balance, January 1, 2019 9,874,191   $9,874   $33,110,536   218,214   $(590,234 )   $(448,801 )   $  32,081,375  
Exercise of options 7,000     7     20,433                         20,440  
Purchase of treasury shares                 5,000     (29,454 )             (29,454 )
Non cash compensation             6,532                         6,532  
Dividends paid                               (1,159,438 )     (1,159,438 )
Net income                               2,205,400       2,205,400  
Balance, June 30, 2019 9,881,191   $9,881   $33,137,501   223,214   $(619,688 )    597,161     $  33,124,855  


FOR THE SIX MONTHS ENDED JUNE 30, 2018
  Common Stock Additional Paid
 in Capital
Treasury Stock Accumulated
Deficit
(Retained
Earnings)
Totals
  Shares   Amount   Shares   Cost    
Balance, January 1, 2018 8,319,036     $8,319     $23,167,511   210,102     $(541,491 )     $(387,666 )     $  22,246,673  
Exercise of warrants 8,881     9     48,726                         48,735  
Non cash compensation             6,532                         6,532  
Dividends paid                               (973,072 )     (973,072 )
Net income                               1,930,306       1,930,306  
Balance, June 30, 2018 8,327,917     $8,328     $23,222,769   210,102     $(541,491 )     $  569,568       $  23,259,174  


     
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
     
    Six Months
Ended June 30,
     2019    2018
Cash flows from operating activities:        
Net income   $ 2,205,400     $ 1,930,306  
Adjustments to reconcile net income to net cash provided by operating activities -        
Amortization of deferred financing costs     47,244       51,451  
Depreciation     815       2,274  
Non cash compensation expense     6,532       6,532  
Changes in operating assets and liabilities:        
Interest receivable on loans     (76,123 )     (35,760 )
Other assets     (55,243 )     (76,097 )
Accounts payable and accrued expenses     (60,927 )     19,952  
Deferred origination fees     (8,233 )     130,105  
Net cash provided by operating activities     2,059,465       2,028,763  
         
Cash flows from investing activities:        
Issuance of short term loans     (24,697,965 )     (27,792,500 )
Collections received from loans     23,622,125       21,070,000  
Net cash used in investing activities     (1,075,840 )     (6,722,500 )
         
Cash flows from financing activities:        
Proceeds from line of credit, net     1,115,656       3,085,406  
Proceeds from short-term loans, net     ---       3,430,000  
Dividends paid     (2,318,155 )     (1,865,055 )
Purchase of treasury shares     (29,454 )     ---  
Capital raising costs     ---       (12,300 )
Proceeds from exercise of stock options and warrants     20,440       48,735  
Net cash (used in) provided by financing activities     (1,211,513 )     4,686,786  
         
Net decrease in cash and restricted cash     (227,888 )     (6,951 )
Cash and restricted cash, beginning of period     355,057       136,441  
Cash and restricted cash, end of period   $ 127,169     $ 129,490  
         
Supplemental Cash Flow Information:        
Taxes paid during the period   $ 572     $ ---  
Interest paid during the period   $ 733,160     $ 733,215  
         
Non-cash Investing Activities:        
Operating lease right-of-use asset   $ 113,724     $ ---  
Operating lease liability   $ 113,724     $ ---  

 

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