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Manhattan Bridge Capital, Inc. Reports First Quarter 2019 Results

GREAT NECK, N.Y., April 15, 2019 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that net income for the three months ended March 31, 2019 was approximately $1,121,000, or $0.12 per basic and diluted share (based on approximately 9.7 million weighted-average outstanding common shares), versus approximately $981,000, or $0.12 per basic and diluted share (based on approximately 8.1 million weighted-average outstanding common shares), an increase of $140,000, or 14.3%. This increase is primarily attributable to an increase in revenue.

Total revenue for the three months ended March 31, 2019 was approximately $1,788,000 compared to approximately $1,664,000 for the three months ended March 31, 2018, an increase of $124,000, or 7.4%. The increase in revenue was due to an increase in lending operations. For the three months ended March 31, 2019, approximately $1,503,000 of our revenue represents interest income on secured commercial loans that we offer to small businesses, compared to approximately $1,429,000 for the same period in 2018, and approximately $285,000 and $235,000, respectively, represent origination fees on such loans. The loans are principally secured by collateral consisting of real estate and, generally, accompanied by personal guarantees from the principals of the borrowers.

As of March 31, 2019, total shareholders' equity was approximately $33,221,000.

Assaf Ran, Chairman of the Board and CEO, stated, “The New York real estate market is slow and uncertain. Yet, we manage to collect interest and principal balances at a normal pace. We believe that is a strong indication that our portfolio is solid and that our business model works. The challenge now is to redeploy funds into new loans without compromising our standards. We are working hard to meet this challenge and to continue our track record 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. 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 portfolio is solid and that our business model works as well as continuing our track record, 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.


Assets March 31, 2019
  December 31, 2018
Loans receivable $ 54,793,194   $ 54,836,127
Interest receivable on loans   582,422     596,777
  174,622     203,682
Cash - restricted
  ---     151,375
Operating lease right-of-use asset, net   124,801     ---
Other assets   87,359     73,131
Deferred financing costs   37,190     42,040
Total assets $ 55,799,588   $ 55,903,132

Liabilities and Stockholders’ Equity      
Line of credit $ 16,417,161   $ 16,622,147
Senior secured notes (net of deferred financing costs of $528,728 and $547,499)   5,471,272     5,452,501
Deferred origination fees   422,082     404,676
Accounts payable and accrued expenses   143,478     183,716
Operating lease liability   124,801     ---
Dividends payable   ---     1,158,717
Total liabilities   22,578,794     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; 9,661,977 and 9,655,977 outstanding, respectively   9,881     9,874
Additional paid-in capital   33,134,235     33,110,536
Treasury stock, at cost – 219,214 and 218,214 shares   (595,878)     (590,234)
Retained earnings (accumulated deficit)   672,556     (448,801)
Total stockholders’ equity   33,220,794     32,081,375
Total liabilities and stockholders’ equity $ 55,799,588   $ 55,903,132



  Three Months
Ended March 31,
  2019     2018
Interest income from loans $ 1,503,085   $ 1,429,249
Origination fees   284,974     235,226
Total revenue   1,788,059     1,664,475
Operating costs and expenses:    
Interest and amortization of deferred financing costs   378,882     397,705
Referral fees   2,083     333
General and administrative expenses   288,737     285,519
Total operating costs and expenses   669,702     683,557
Income from operations   1,118,357     980,918
Other income   3,000     ---
Net income $ 1,121,357   $ 980,918
Basic and diluted net income per common share outstanding:    
--Basic $ 0.12   $ 0.12
--Diluted $ 0.12   $ 0.12
Weighted average number of common shares outstanding:    
--Basic   9,655,781     8,108,934
--Diluted   9,658,160     8,121,728


    Three Months
Ended March 31,
Cash flows from operating activities:        
Net income   $ 1,121,357   $ 980,918
Adjustments to reconcile net income to net cash provided by operating activities -        
Amortization of deferred financing costs     23,622     29,739
Depreciation     431     1,146
Non-cash compensation expense     3,266     3,266
Changes in operating assets and liabilities:        
Interest receivable on loans     14,355     37,068
Other assets     (14,659)     (27,088)
Accounts payable and accrued expenses     (40,238)     (23,286)
Deferred origination fees     17,406     22,252
Net cash provided by operating activities     1,125,540     1,024,015
Cash flows from investing activities:        
Issuance of short term loans     (13,325,965)     (11,000,000)
Collections received from loans     13,368,898     10,067,500
Net cash provided by (used in) investing activities     42,933     (932,500)
Cash flows from financing activities:        
Dividend paid     (1,158,717)     (891,983)
(Repayment of) proceeds from line of credit, net     (204,986)     849,559
Purchase of treasury shares     (5,645)     ---
Proceeds from exercise of stock options     20,440     ---
Net cash used in financing activities     (1,348,908)     (42,424)
Net (decrease) increase in cash and restricted cash     (180,435)     49,091
Cash and restricted cash, beginning of period     355,057     136,441
Cash and restricted cash, end of period   $ 174,622   $ 185,532
Supplemental Cash Flow Information:        
Interest paid during the period   $ 370,621   $ 364,292
Non-cash Investing Activities:        
Operating lease right-of-use asset   $ 124,801   $ ---
Operating lease liability   $ 124,801   $ ---

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