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Manhattan Bridge Capital, Inc. Reports Third Quarter 2019 Results

GREAT NECK, N.Y., Oct. 21, 2019 (GLOBE NEWSWIRE) --

Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that total revenue for the three month period ended September 30, 2019 was approximately $1,917,000 compared to approximately $1,891,000 for the three month period ended September 30, 2018, an increase of $26,000, or 1.4%. The increase in revenue is the result of an increase in lending operations. For the three month periods ended September 30, 2019 and 2018, approximately $1,619,000 and $1,617,000, respectively, of our revenues were attributable to interest income on the secured commercial loans that we offer to small businesses, and approximately $298,000 and $275,000, respectively, of our revenues were attributable to origination fees on such loans.

Net income for the three month period ended September 30, 2019 was approximately $1,150,000, or $0.12 per basic and diluted share (based on approximately 9.7 million weighted-average outstanding common shares), versus net income of approximately $1,189,000, or $0.13 per basic and diluted share (based on approximately 9.3 million weighted-average outstanding common shares), for the three month period ended September 30, 2018, a decrease of $39,000, or 3.3%. This decrease is primarily attributable to an increase in general and administrative expenses.

Total revenue for the nine month period ended September 30, 2019 was approximately $5,484,000 compared to approximately $5,224,000 for the nine month period ended September 30, 2018, an increase of $260,000, or 5.0%. The increase in revenue is the result of an increase in lending operations. For the nine month periods ended September 30, 2019 and 2018, revenues of approximately $4,609,000 and $4,469,000, respectively, were attributable to interest income on the secured commercial loans that we offer to small businesses, and approximately $875,000 and $755,000, respectively, were attributable to origination fees on such loans.

Net income for the nine month period ended September 30, 2019 was approximately $3,355,000, or $0.35 per basic and diluted share (based on approximately 9.7 million weighted-average outstanding common shares), versus net income of approximately $3,119,000, or $0.37 per basic and diluted share (based on approximately 8.5 million weighted-average outstanding common shares), for the same period in 2018, an increase of $236,000, or 7.6%. This increase is primarily attributable to the increase in revenue, offset by an increase in general and administrative expenses.

As of September 30, 2019, total shareholders' equity was approximately $33,119,000.

Assaf Ran, Chairman of the Board and CEO, stated, “We continue to operate under challenging market conditions: real estate property prices are declining, listed houses are taking longer to sell, our borrowers are more hesitant to step in to new deals and yet the competition from other lenders remains intense. In addition, the market standard hard money annual interest rate dropped from 12% a year ago to 10% today. Given these conditions, I believe that the financial results for the third quarter reflect success. I believe that our loan portfolio is strong and solid, and will prevail despite the market slow down.  Once again, we can proudly report that we have no defaulted loans,” added Mr. Ran.

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 that the belief that our loan portfolio is strong and solid, and will prevail despite the market slow down, 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

 
         Assets
September 30, 2019
  (unaudited)
  December 31, 2018
  (audited)
  Loans receivable $   59,722,672   $   54,836,127
  Interest receivable on loans   763,971     596,777
  Cash 

 
  125,962     203,682
  Cash - restricted

 
  337,512     151,375
  Other assets   98,182     73,131
  Operating lease right-of-use asset, net   102,466     ---
  Deferred financing costs   27,488     42,040
    Total assets $   61,178,253   $   55,903,132

     Liabilities and Stockholders’ Equity

Liabilities:      
Line of credit $  21,864,042     $  16,622,147  
Senior secured notes (net of deferred financing costs of
$491,185 and $547,499, respectively)
 
5,508,815
     
5,452,501
 
Deferred origination fees   404,215       404,676  
Accounts payable and accrued expenses   164,582       183,716  
Operating lease liability   102,466       ---  
Other liabilities   15,000       ---  
Dividends payable   ---       1,158,717  
      Total liabilities   28,059,120       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; 9,882,058 and 9,874,191 issued, respectively;
9,658,844 and 9,655,977 outstanding, respectively
   

9,882
       

9,874
 
Additional paid-in capital   33,140,766       33,110,536  
Treasury stock, at cost – 223,214 and 218,214 shares   (619,688)       (590,234)  
Retained earnings (accumulated deficit)   588,173       (448,801)  
    Total stockholders’ equity   33,119,133       32,081,375  

 Total liabilities and stockholders’ equity

$

  61,178,253
   
$

  55,903,132
 


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

  Three Months
Ended
September 30,
Nine Months
Ended
September 30,
    2019   2018     2019     2018  

Interest income from loans

$

1,618,735

$

1,616,518
 
$

4,608,936
 
$

4,469,118
 
Origination fees   298,222   274,936     875,449     754,510  
  Total revenue   1,916,957   1,891,454     5,484,385     5,223,628  
         
Operating costs and expenses:        
Interest and amortization of debt service costs   454,307   429,421     1,220,700     1,240,199  
Referral fees   861   250     3,569     667  
General and administrative expenses   314,820   272,321     913,175     862,994  
  Total operating costs and expenses   769,988   701,992     2,137,444     2,103,860  
Income from operations   1,146,969   1,189,462     3,346,941     3,119,768  
Other income   3,000   ---     9,000     ---  
Income before income tax expense   1,149,969   1,189,462     3,355,941     3,119,768  
Income tax expense   ---   (642)      (572)      (642)  
 
Net income

$

1,149,969

$

1,188,820
 
$

3,355,369
 
$

3,119,126
 
         
Basic and diluted net income per common share outstanding:        
--Basic $   0.12 $   0.13   $       0.35   $       0.37  
--Diluted $   0.12 $   0.13   $       0.35   $       0.37  
         
Weighted average number of common shares outstanding        
--Basic      9,658,608      9,266,962        9,657,911        8,499,967  
--Diluted      9,659,764      9,274,822        9,659,012        8,507,724  


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

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2019

  Common Stock Additional Paid
in Capital
Treasury Stock Retained
Earnings
Totals
  Shares Amount   Shares Cost    
Balance, July 1, 2019 9,881,191 $ 9,881 $ 33,137,501 223,214 $ (619,688) $ 597,161 $   33,124,855
Exercise of warrants 867   1   (1)         0
Non cash compensation       3,266         3,266
Dividends paid             (1,158,957)   (1,158,957)
Net income             1,149,969   1,149,969
Balance, September 30, 2019 9,882,058 $ 9,882 $ 33,140,766 223,214 $ (619,688) $     588,173 $   33,119,133

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2018

  Common Stock Additional Paid
in Capital
Treasury Stock Retained
Earnings
Totals
  Shares Amount   Shares Cost    
Balance, July 1, 2018 8,327,917 $ 8,328 $ 23,222,769 210,102 $ (541,491) $     569,568 $   23,259,174
Public Offering 1,545,786   1,546   9,881,234         9,882,780
Non cash compensation       3,266         3,266
Dividends paid             (974,139)   (974,139)
Net income             1,188,820   1,188,820
Balance, September 30, 2018 9,873,703 $ 9,874 $ 33,107,269 210,102 $ (541,491) $     784,249 $   33,359,901

    FOR THE NINE MONTHS ENDED SEPTEMBER 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 and warrants 7,867     8   20,432         20,440
Purchase of treasury shares       5,000   (29,454)     (29,454)
Non cash compensation       9,798         9,798
Dividends paid             (2,318,395)   (2,318,395)
Net income             3,355,369   3,355,369
Balance, September 30, 2019 9,882,058 $ 9,882 $ 33,140,766 223,214 $ (619,688) $     588,173 $   33,119,133

FOR THE NINE MONTHS ENDED SEPTEMBER 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
Public Offering 1,545,786   1,546   9,881,234         9,882,780
Exercise of warrants 8,881   9   48,726         48,735
Non cash compensation       9,798         9,798
Dividends paid             (1,947,211)   (1,947,211)
Net income               3,119,126   3,119,126
Balance, September 30, 2018 9,873,703 $ 9,874 $ 33,107,269 210,102 $ (541,491) $    784,249 $   33,359,901


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

    Nine Months
Ended September 30,
       2019        2018  
Cash flows from operating activities:        
  Net income   $   3,355,369     $   3,119,126  
  Adjustments to reconcile net income to net cash provided by 
  operating activities -
       
  Amortization of deferred financing costs     70,867       75,073  
  Depreciation     1,157       3,287  
  Non cash compensation expense     9,798       9,798  
  Changes in operating assets and liabilities:        
     Interest receivable on loans     (167,194 )     (107,088 )
     Other assets     (26,209 )     (48,052 )
     Accounts payable and accrued expenses     (19,134 )     (15,166 )
     Deferred origination fees       (461 )       199,381  
         Net cash provided by operating activities     3,224,193       3,236,359  
         
Cash flows from investing activities:        
  Issuance of short term loans     (38,246,965 )     (42,417,500 )
  Collections received from loans     33,375,420       29,030,264  
         Net cash used in investing activities     (4,871,545 )     (13,387,236 )
         
Cash flows from financing activities:        
  Proceeds from line of credit, net     5,241,895       4,802,752  
  Proceeds from public offering, net     ---       9,882,780  
  Proceeds from exercise of stock options and warrants     20,440       48,735  
  Dividends paid     (3,477,112 )     (2,839,193 )
  Purchase of treasury shares     (29,454 )     ---  
  Deferred financing costs     ---       (20,380 )
          Net cash provided by financing activities     1,755,769       11,874,694  
         
Net increase in cash and restricted cash     108,417       1,723,817  
Cash and restricted cash, beginning of period     355,057       136,441  
Cash and restricted cash, end of period   $     463,474     $     1,860,258  
         
Supplemental Cash Flow Information:        
Taxes paid during the period   $   572     $   642  
Interest paid during the period   $   1,144,425     $   1,142,341  
         
Non-cash Investing Activities:        
Loan holdback relating to mortgage receivable   $   15,000     $   ---  

 

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