LOAN - Manhattan Bridge Capital Inc. Reports Results for 2018
GREAT NECK, N.Y., March 18, 2019 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that net income for the year ended December 31, 2018 was approximately $4,204,000, or $0.48 per share (based on approximately 8.8 million weighted-average outstanding common shares), versus approximately $3,439,000, or $0.42 per share (based on approximately 8.1 million weighted-average outstanding common shares) for the year ended December 31, 2017, an increase of $765,000 or 22.2%. This increase in net income was mainly due to an increase in operating income as a result of increased lending activity.
Total revenue for the year ended December 31, 2018 was approximately $7,225,000 compared to approximately $5,919,000 for the year ended December 31, 2017, an increase of $1,306,000 or 22.1%. The increase in revenue represents an increase in lending operations. In 2018, approximately $6,168,000 of the Company’s revenue represents interest income on secured, commercial loans that the Company offers to small businesses compared to approximately $5,016,000 in 2017, and approximately $1,057,000 represents origination fees on such loans compared to approximately $903,000 in 2017.
Total operating costs and expenses for the year ended December 31, 2018 were approximately $3,022,000 compared to approximately $2,457,000 for the year ended December 31, 2017, an increase of $565,000 or 23.0%. The increase in operating costs and expenses is primarily attributable to an increase in interest expense resulting from the Company’s use of a line of credit in order to increase its ability to make loans.
As of December 31, 2018, total shareholders' equity was approximately $32,081,000 compared to approximately $22,247,000 as of December 31, 2017, an increase of $9,834,000, or 44.2%.
Assaf Ran, Chairman of the Board and CEO, stated, “Our challenge for 2018 was to continue to grow while avoiding the new loose standards set by some of our competitors. We believe that thanks to our solid position in the market-place as well as our strong reputation, we managed to achieve that goal. I'm proud to present another year of record high revenue, record high net earnings and 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 solid position in the market-place as well as our strong reputation, 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
DECEMBER 31, 2018 AND 2017
| 2018 |
| 2017 |
| Assets |
| Loans receivable |
| $ |
| 54,836,127 |
| $ |
| 45,124,000 |
| Interest receivable on loans |
| 596,777 |
| 535,045 |
| Cash |
| 203,682 |
| 136,441 |
| Cash - restricted |
| 151,375 |
| --- |
| Deferred financing costs |
| 42,040 |
| 45,269 |
| Other assets |
| 73,131 |
| 55,941 |
| Total assets |
| $ |
| 55,903,132 |
| $ |
| 45,896,696 |
Liabilities and Stockholders’ Equity
| Liabilities: |
| Line of credit |
| $ |
| 16,622,147 |
| $ |
| 16,914,594 |
| Senior secured notes (net of deferred financing costs of |
| $547,499 and $622,584) |
| 5,452,501 |
| 5,377,416 |
| Deferred origination fees |
| 404,676 |
| 298,471 |
| Accounts payable and accrued expenses |
| 183,716 |
| 167,559 |
| Dividends payable |
| 1,158,717 |
| 891,983 |
| Total liabilities |
| 23,821,757 |
| 23,650,023 |
| 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 authorized; |
| 9,874,191 and 8,319,036 issued; 9,655,977 and |
| 8,108,934 outstanding |
| 9,874 |
| 8,319 |
| Additional paid-in capital |
| 33,110,536 |
| 23,167,511 |
| Treasury stock, at cost – 218,214 and 210,102 shares |
| (590,234) |
| (541,491) |
| Accumulated deficit |
| (448,801) |
| (387,666) |
| Total stockholders’ equity |
| 32,081,375 |
| 22,246,673 |
| Total liabilities and stockholders’ equity |
| $ |
| 55,903,132 |
| $ |
| 45,896,696 |
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017
| 2018 |
| 2017 |
| Interest income from loans |
| $ |
| 6,167,600 |
| $ |
| 5,015,987 |
| Origination fees |
| 1,056,962 |
| 902,950 |
| Total Revenue |
| 7,224,562 |
| 5,918,937 |
| Operating costs and expenses: |
| Interest and amortization of deferred financing costs |
| 1,699,064 |
| 1,226,728 |
| Referral fees |
| 1,708 |
| 3,701 |
| General and administrative expenses |
| 1,321,724 |
| 1,227,003 |
| Total operating costs and expenses |
| 3,022,496 |
| 2,457,432 |
| Income from operations |
| 4,202,066 |
| 3,461,505 |
| Other income |
| 3,000 |
| --- |
| Loss on write-down of investment in privately held |
| company |
| --- |
| (20,000) |
| Income before income tax expense |
| 4,205,066 |
| 3,441,505 |
| Income tax expense |
| (642 |
| ) |
| (2,971 |
| ) |
| Net income |
| $ |
| 4,204,424 |
| $ |
| 3,438,534 |
| Basic and diluted net income per common share |
| --Basic |
| $ |
| 0.48 |
| $ |
| 0.42 |
| --Diluted |
| $ |
| 0.48 |
| $ |
| 0.42 |
| Weighted average number of common shares |
| outstanding |
| --Basic |
| 8,792,207 |
| 8,117,280 |
| --Diluted |
| 8,799,044 |
| 8,128,685 |
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017
| Common Stock |
| Additional Paid-in Capital |
| Treasury Stock |
| Accumulated Deficit |
| Totals |
| Shares |
| Amount |
| Shares |
| Cost |
Balance, January 1, 2017 |
| 8,312,036 |
| $8,312 |
| $23,134,013 |
| 177,000 |
| $(369,335) |
| $(459,100) |
| $ 22,313,890 |
Exercise of options |
| 7,000 |
| 7 |
| 20,433 |
| 20,440 |
Non cash compensation |
| 13,065 |
| 13,065 |
Purchase of treasury shares |
| 33,102 |
| (172,156) |
| (172,156) |
Dividends paid |
| (2,475,117) |
| (2,475,117) |
| Dividends declared and payable |
| (891,983) |
| (891,983) |
| Net income for the year ended December 31, 2017 |
| 3,438,534 |
| 3,438,534 |
| Balance, December 31, 2017 |
| 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 |
| 9,369 |
| 9 |
| 48,726 |
| 48,735 |
Non cash compensation |
| 13,065 |
| 13,065 |
Purchase of treasury shares |
| 8,112 |
| (48,743) |
| (48,743) |
Dividends paid |
| (3,106,842) |
| (3,106,842) |
| Dividends declared and payable |
| (1,158,717) |
| (1,158,717) |
| Net income for the year ended December 31, 2018 |
| 4,204,424 |
| 4,204,424 |
Balance, December 31, 2018 |
| 9,874,191 |
| $9,874 |
| $33,110,536 |
| 218,214 |
| $(590,234) |
| $(448,801) |
| $ 32,081,375 |
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017
| 2018 |
| 2017 |
| Cash flows from operating activities: |
| Net income |
| $ |
| 4,204,424 |
| $ |
| 3,438,534 |
| Adjustments to reconcile net income to net cash provided by operating |
| activities - |
| Amortization of deferred financing costs |
| 98,695 |
| 129,131 |
| Depreciation |
| 3,711 |
| 4,595 |
| Non cash compensation expense |
| 13,065 |
| 13,065 |
| Loss on write-down of investment in privately held company |
| --- |
| 20,000 |
| Changes in operating assets and liabilities |
| Interest receivable on loans |
| (61,732) |
| (188,526) |
| Other current and non current assets |
| (19,753) |
| 323 |
| Accounts payable and accrued expenses |
| 16,157 |
| 62,019 |
| Deferred origination fees |
| 106,205 |
| (16,940) |
| Net cash provided by operating activities |
| 4,360,772 |
| 3,462,201 |
| Cash flows from investing activities: |
| Issuance of short term loans |
| (51,859,000) |
| (37,871,500) |
| Collections received from loans |
| 42,146,873 |
| 27,502,820 |
| Purchase of fixed assets |
| (1,148) |
| (1,666) |
| Net cash used in investing activities |
| (9,713,275) |
| (10,370,346) |
| Cash flows from financing activities: |
| Proceeds from public offering, net |
| 9,882,780 |
| --- |
| (Repayments of) proceeds from line of credit, net |
| (292,447) |
| 10,431,746 |
| Dividends paid |
| (3,998,825) |
| (3,288,621) |
| Proceeds from exercise of stock options and warrants |
| 48,735 |
| 20,440 |
| Purchase of treasury shares |
| (48,743) |
| (172,156) |
| Deferred financing costs incurred |
| (20,381) |
| (43,122) |
| Net cash provided by financing activities |
| 5,571,119 |
| 6,948,287 |
| Net increase in cash and restricted cash |
| 218,616 |
| 40,142 |
| Cash and restricted cash, beginning of year |
| 136,441 |
| 96,299 |
| Cash and restricted cash, end of year |
| $ |
| 355,057 |
| $ |
| 136,441 |
| Supplemental Cash Flow Information: |
| Taxes paid during the year |
| $ |
| 642 |
| $ |
| 2,971 |
| Interest paid during the year |
| $ |
| 1,584,508 |
| $ |
| 1,034,097 |
| Supplement Information – Noncash Information: Dividend declared and payable |
| $ |
| 1,158,717 |
| $ |
| 891,983 |
Contact:Assaf Ran, CEOVanessa Kao, CFO(516) 444-3400SOURCE: Manhattan Bridge Capital, Inc.