LOAN - Manhattan Bridge Capital Inc. Reports Results for 2019
GREAT NECK, N.Y., March 17, 2020 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that net income for the year ended December 31, 2019 was approximately $4,495,000, or $0.47 per share (based on approximately 9.7 million weighted-average outstanding common shares), versus approximately $4,204,000, or $0.48 per share (based on approximately 8.8 million weighted-average outstanding common shares) for the year ended December 31, 2018, an increase of $291,000 or 7.0%. This increase in net income was mainly due to an increase in operating income and decreases in interest and payroll expenses.
Total revenue for the year ended December 31, 2019 was approximately $7,340,000 compared to approximately $7,225,000 for the year ended December 31, 2018, an increase of $115,000 or 1.6%. The increase in revenue was primarily attributable to an increase in origination fees resulting from an increase in the rate of loan turnover. In 2019, approximately $6,186,000 of our revenue represents interest income on secured, real estate loans that we offer to small businesses compared to approximately $6,168,000 in 2018, and approximately $1,154,000 represents origination fees on such loans compared to approximately $1,057,000 in 2018.
Total operating costs and expenses for the year ended December 31, 2019 were approximately $2,842,000 compared to approximately $3,022,000 for the year ended December 31, 2018, a decrease of $180,000 or 6.0%. The decrease in operating costs and expenses is primarily attributable to an annual bonus paid to officers in 2018 which was not repeated in 2019, a voluntary waiver from the Company’s CEO forgoing his base salary for the months of November and December 2019, and decreased interest expense due to lower LIBOR rates.
As of December 31, 2019, total shareholders' equity was approximately $31,943,000 compared to approximately $32,081,000 as of December 31, 2018.
Effective February 25, 2020, the Company amended its existing credit line agreement with Webster Business Credit Corporation, Flushing Bank, and Mizrahi Tefahot Bank Ltd. to further increase its credit line from $25 million to $32.5 million and extend its term to February 28, 2023.
On February 26, 2020, our Board of Directors authorized a share buy back program for the Company to purchase up to 100,000 of its common shares in the next twelve months. As of March 12, 2020, the Company has purchased a total of 18,786 common shares under this share buy back program, at an aggregate cost of approximately $102,000.
Assaf Ran, Chairman of the Board and CEO, stated, “During 2019, typical interest rates charged by hard money lenders dropped from 12% to 10%. Our challenge was to maintain revenue and net income without compromising our quality standards. We believe that we managed to achieve that. While due to the reduction of interest rates and the general slowdown in the real estate markets, our growth rate declined, we’re proud to present another year of no defaults in our portfolio.”
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 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; 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, 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
DECEMBER 31, 2019 AND 2018
| 2019 |
| 2018 |
| Assets |
| Loans receivable |
| $ |
| 53,485,014 |
| $ |
| 54,836,127 |
| Interest receivable on loans |
| 675,996 |
| 596,777 |
| Cash |
| 118,407 |
| 203,682 |
| Cash - restricted |
| --- |
| 151,375 |
| Other assets |
| 53,218 |
| 73,131 |
| Operating lease right-of-use asset, net |
| 87,754 |
| --- |
| Deferred financing costs |
| 22,637 |
| 42,040 |
| Total assets |
| $ |
| 54,443,026 |
| $ |
| 55,903,132 |
| Liabilities and Stockholders’ Equity |
| Liabilities: |
| Line of credit |
| $ |
| 15,232,993 |
| $ |
| 16,622,147 |
| Senior secured notes (net of deferred financing costs of $472,413 and $547,499) |
| 5,527,587 |
| 5,452,501 |
| Deferred origination fees |
| 322,119 |
| 404,676 |
| Accounts payable and accrued expenses |
| 151,823 |
| 183,716 |
| Operating lease liability |
| 91,025 |
| --- |
| Other liabilities |
| 15,000 |
| --- |
| Dividends payable |
| 1,159,061 |
| 1,158,717 |
| Total liabilities |
| 22,499,608 |
| 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 |
| 33,144,032 |
| 33,110,536 |
| Treasury stock, at cost – 223,214 and 218,214 shares |
| (619,688 |
| ) |
| (590,234 |
| ) |
| Accumulated deficit |
| (590,808 |
| ) |
| (448,801 |
| ) |
| Total stockholders’ equity |
| 31,943,418 |
| 32,081,375 |
| Total liabilities and stockholders’ equity |
| $ |
| 54,443,026 |
| $ |
| 55,903,132 |
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018
| 2019 |
| 2018 |
| Interest income from loans |
| $ |
| 6,185,764 |
| $ |
| 6,167,600 |
| Origination fees |
| 1,153,941 |
| 1,056,962 |
| Total revenue |
| 7,339,705 |
| 7,224,562 |
| Operating costs and expenses: |
| Interest and amortization of deferred financing costs |
| 1,635,134 |
| 1,699,064 |
| Referral fees |
| 3,750 |
| 1,708 |
| General and administrative expenses |
| 1,202,739 |
| 1,321,724 |
| Total operating costs and expenses |
| 2,841,623 |
| 3,022,496 |
| Income from operations |
| 4,498,082 |
| 4,202,066 |
| Other income |
| 12,000 |
| 3,000 |
| Loss on write-off of investment in privately held company |
| (15,000 |
| ) |
| --- |
| Income before income tax expense |
| 4,495,082 |
| 4,205,066 |
| Income tax expense |
| (572 |
| ) |
| (642 |
| ) |
| Net income |
| $ |
| 4,494,510 |
| $ |
| 4,204,424 |
| Basic and diluted net income per common share outstanding: |
| --Basic |
| $ |
| 0.47 |
| $ |
| 0.48 |
| --Diluted |
| $ |
| 0.47 |
| $ |
| 0.48 |
| Weighted average number of common shares outstanding |
| --Basic |
| 9,658,147 |
| 8,792,207 |
| --Diluted |
| 9,659,285 |
| 8,799,044 |
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018
| Common Stock |
| Additional Paid-in Capital |
| Treasury Stock |
| Accumulated Deficit |
| 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 |
| 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 |
| Exercise of warrants and options |
| 7,867 |
| 8 |
| 20,432 |
| 20,440 |
| Non cash compensation |
| 13,064 |
| 13,064 |
| Purchase of treasury shares |
| 5,000 |
| (29,454) |
| (29,454) |
| Dividends paid |
| (3,477,456) |
| (3,477,456) |
| Dividends declared and payable |
| (1,159,061) |
| (1,159,061) |
| Net income for the year ended December 31, 2019 |
| 4,494,510 |
| 4,494,510 |
| Balance, December 31, 2019 |
| 9,882,058 |
| $9,882 |
| $33,144,032 |
| 223,214 |
| $(619,688) |
| $(590,808) |
| $31,943,418 |
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018
| 2019 |
| 2018 |
| Cash flows from operating activities: |
| Net income |
| $ |
| 4,494,510 |
| $ |
| 4,204,424 |
| Adjustments to reconcile net income to net cash provided by operating activities - |
| Amortization of deferred financing costs |
| 94,489 |
| 98,695 |
| Depreciation |
| 1,414 |
| 3,711 |
| Non cash compensation expense |
| 13,064 |
| 13,065 |
| Loss on write-off of investment in privately held company |
| 15,000 |
| --- |
| Adjustment to operating lease right-of-use asset and liability |
| 3,271 |
| --- |
| Changes in operating assets and liabilities |
| Interest receivable on loans |
| (79,219 |
| ) |
| (61,732 |
| ) |
| Other assets |
| 3,499 |
| (19,753 |
| ) |
| Accounts payable and accrued expenses |
| (31,893 |
| ) |
| 16,157 |
| Deferred origination fees |
| (82,557 |
| ) |
| 106,205 |
| Net cash provided by operating activities |
| 4,431,578 |
| 4,360,772 |
| Cash flows from investing activities: |
| Issuance of short term loans |
| (48,053,965 |
| ) |
| (51,859,000 |
| ) |
| Collections received from loans |
| 49,420,078 |
| 42,146,873 |
| Purchase of fixed assets |
| --- |
| (1,148 |
| ) |
| Net cash provided by (used in) investing activities |
| 1,366,113 |
| (9,713,275 |
| ) |
| Cash flows from financing activities: |
| Repayments of proceeds from line of credit, net |
| (1,389,154 |
| ) |
| (292,447 |
| ) |
| Proceeds from public offering, net |
| --- |
| 9,882,780 |
| Dividends paid |
| (4,636,173 |
| ) |
| (3,998,825 |
| ) |
| Proceeds from exercise of stock options and warrants |
| 20,440 |
| 48,735 |
| Purchase of treasury shares |
| (29,454 |
| ) |
| (48,743 |
| ) |
| Deferred financing costs incurred |
| --- |
| (20,381 |
| ) |
| Net cash (used in) provided by financing activities |
| (6,034,341 |
| ) |
| 5,571,119 |
| Net (decrease) increase in cash and restricted cash |
| (236,650 |
| ) |
| 218,616 |
| Cash and restricted cash, beginning of year |
| 355,057 |
| 136,441 |
| Cash and restricted cash, end of year |
| $ |
| 118,407 |
| $ |
| 355,057 |
| Supplemental Cash Flow Information: |
| Taxes paid during the year |
| $ |
| 572 |
| $ |
| 642 |
| Interest paid during the year |
| $ |
| 1,560,644 |
| $ |
| 1,584,508 |
| Operating leases paid during the year |
| $ |
| 52,571 |
| $ |
| 50,096 |
| Supplemental Information – Noncash Information: |
| Dividend declared and payable |
| $ |
| 1,159,061 |
| $ |
| 1,158,717 |
| Establishment of right-of-use asset and operating lease liability |
| $ |
| 135,270 |
| $ |
| --- |
| Loan holdback relating to mortgage receivable |
| $ |
| 15,000 |
| $ |
| --- |
SOURCE: Manhattan Bridge Capital, Inc.
Contact:Assaf Ran, CEOVanessa Kao, CFO(516) 444-3400