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Manhattan Bridge Capital, Inc. Reports First Quarter 2020 Results

GREAT NECK, N.Y., April 13, 2020 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that net income for the three months ended March 31, 2020 was approximately $1,016,000, or $0.11 per basic and diluted share (based on approximately 9.7 million weighted-average outstanding common shares), versus approximately $1,121,000, or $0.12 per basic and diluted share (based on approximately 9.7 million weighted-average outstanding common shares) for the three months ended March 31, 2019, a decrease of $105,000, or 9.4%. This decrease is primarily attributable to the decrease in revenue and the increase in general and administrative expenses, offset by the decrease in interest expense due to lower LIBOR rates.

Total revenues for the three months ended March 31, 2020 were approximately $1,711,000 compared to approximately $1,788,000 for the three months ended March 31, 2019, a decrease of $77,000, or 4.3%. The decrease in revenue was primarily attributable to lower interest rates and origination points charged on loans due to market conditions and intense competition from other lenders. For the three months ended March 31, 2020, approximately $1,474,000 of our revenue represents interest income on secured commercial loans that we offer to small businesses, compared to approximately $1,503,000 for the same period in 2019, and approximately $237,000 and $285,000, 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, 2020, total shareholders' equity was approximately $32,832,000.

Assaf Ran, Chairman of the Board and CEO, stated, “In this challenging time, we believe we had a decent quarter. I always believe that our portfolio will prevail in a recession but given the level of uncertainty in the markets due to COVID-19, we may have to be prepared to deal with issues we have never experienced before. The good news is that we have less competition now, we are paying the dividend on time, we have announced a stock buyback plan and we increased our line of credit to $32,500,000 as well as extended it until February 2023. I wish you all good health.”

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 the belief that our portfolio will prevail in a recession, that we may have to be prepared to deal with issues we have never experienced before and the potential repurchase of our shares, 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, 2019 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
 
  March 31, 2020
(unaudited) 
  December 31, 2019
 (audited)
Assets      
Loans receivable $ 56,814,069   $ 53,485,014
Interest receivable on loans   716,918     675,996
Cash 
  212,562     118,407
Other assets   73,542     53,218
Operating lease right-of-use asset, net   76,385     87,754
Deferred financing costs   44,135     22,637
Total assets $ 57,937,611   $ 54,443,026


Liabilities and Stockholders’ Equity              
Liabilities:              
Line of credit $ 18,860,213     $ 15,232,993  
Senior secured notes (net of deferred financing costs of $453,642 and $472,413)   5,546,358       5,527,587  
Deferred origination fees   454,488       322,119  
Accounts payable and accrued expenses   165,286       151,823  
Operating lease liability   79,396       91,025  
Other liabilities   ---       15,000  
Dividends payable   ---       1,159,061  
Total liabilities   25,105,741       22,499,608  
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
issued; 9,632,235 and 9,658,844 outstanding, respectively
  9,882       9,882  
Additional paid-in capital   33,147,298       33,144,032  
Treasury stock, at cost – 249,823 and 223,214 shares   (750,724 )     (619,688 )
Retained earnings (accumulated deficit)   425,414       (590,808 )
Total stockholders’ equity   32,831,870       31,943,418  
Total liabilities and stockholders’ equity $ 57,937,611     $ 54,443,026  
               
               


MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
 (unaudited)
 
  Three Months
Ended March 31,
    2020     2019
           
Interest income from loans $ 1,473,544   $ 1,503,085
Origination fees   237,442     284,974
Total revenue   1,710,986     1,788,059
Operating costs and expenses:          
Interest and amortization of deferred financing costs   352,442     378,882
Referral fees   542     2,083
General and administrative expenses   344,780     288,737
Total operating costs and expenses   697,764     669,702
           
Income from operations   1,013,222     1,118,357
Other income   3,000     3,000
Net income $ 1,016,222   $ 1,121,357
           
Basic and diluted net income per common share outstanding:          
--Basic $ 0.11   $ 0.12
--Diluted $ 0.11   $ 0.12
           
Weighted average number of common shares outstanding:          
--Basic   9,652,539     9,655,781
--Diluted   9,652,753     9,658,160
           
           


MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(unaudited)
 
FOR THE THREE MONTHS ENDED MARCH 31, 2020
  Common Stock 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       3,266         3,266  
Purchase of treasury shares       26,609   (131,036 )     (131,036 )
Net income             1,016,222     1,016,222  
Balance, March 31, 2020 9,882,058 $ 9,882 $ 33,147,298 249,823 $ (750,724 ) $ 425,414   $ 32,831,870  


FOR THE THREE MONTHS ENDED MARCH 31, 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 stock options 7,000   7   20,433         20,440  
Non cash compensation       3,266         3,266  
Purchase of treasury shares         1,000   (5,644 )     (5,644 )
Net income             1,121,357     1,121,357  
Balance, March 31, 2019 9,881,191 $ 9,881 $ 33,134,235 219,214 $ (595,878 ) $   672,556   $ 33,220,794  


 
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
 
    Three Months
Ended March 31,
       2020        2019  
Cash flows from operating activities:                
Net income   $   1,016,222     $   1,121,357  
Adjustments to reconcile net income to net cash provided by 
  operating activities -
               
Amortization of deferred financing costs     24,375       23,622  
Adjustment to operating lease right-of-use asset and liability     (261 )     ---  
Depreciation     283       431  
Non cash compensation expense     3,266       3,266  
Changes in operating assets and liabilities:                
 Interest receivable on loans     (40,922 )     14,355  
 Other assets     (19,683 )     (14,659 )
 Accounts payable and accrued expenses     13,463       (40,238 )
 Deferred origination fees     132,369       17,406  
   Net cash provided by operating activities     1,129,112       1,125,540  
                 
Cash flows from investing activities:                
Issuance of short term loans     (16,082,435 )     (13,325,965 )
Collections received from loans     12,753,380       13,368,898  
Release of loan holdback relating to mortgage receivable     (15,000 )     ---  
Purchase of fixed assets     (923 )     ---  
   Net cash (used in) provided by investing activities     (3,344,978 )     42,933  
                 
Cash flows from financing activities:                
Proceeds from (repayment of) line of credit, net     3,627,220       (204,986 )
Dividend paid     (1,159,061 )     (1,158,717 )
Purchase of treasury shares     (131,036 )     (5,645 )
Deferred financing costs incurred     (27,102 )     ---  
Proceeds from exercise of stock options     ---       20,440  
   Net cash provided by (used in) financing activities     2,310,021       (1,348,908 )
                 
Net increase (decrease) in cash     94,155       (180,435 )
Cash, beginning of period     118,407       355,057  
Cash, end of period   $   212,562     $   174,622  
                 
Supplemental Cash Flow Information:                
Interest paid during the period   $ 328,871     $ 370,621  
Operating leases paid during the period   $ 13,604     $ 12,425  
                 
Supplemental Information – Noncash Information                
Establishment of right-of-use asset and operating lease liability      ---          135,270  
                 

 

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