LOAN - Manhattan Bridge Capital Inc. Reports Second Quarter 2019 Results

July, 26 2019 07:05 AM Manhattan Bridge Capital Inc

GREAT NECK, N.Y., July 26, 2019 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that its total revenue for the three months ended June 30, 2019 was approximately $1,779,000 compared to approximately $1,668,000 for the three months ended June 30, 2018, an increase of $111,000, or 6.7%. For the three months ended June 30, 2019, approximately $1,487,000 of the Company's revenue represents interest income on the secured, commercial loans that the Company offers to small businesses compared to approximately $1,423,000 for the same period in 2018, and approximately $292,000 represents origination fees on such loans compared to approximately $244,000 for the same period in 2018. The increase in revenue represents an increase in lending operations.

Net income for the three months ended June 30, 2019 was approximately $1,084,000, or $0.11 per basic and diluted share (based on approximately 9.7 million weighted-average outstanding common shares), as compared to approximately $949,000, or $0.12 per basic and diluted share (based on approximately 8.1 million weighted-average outstanding common shares), for the three months ended June 30, 2018. This increase is primarily attributable to an increase in revenue, and a decrease in interest costs resulting from lower outstanding amounts under a revolving credit facility following the Company’s public offering in July 2018.

Total revenue for the six months ended June 30, 2019 was approximately $3,567,000 compared to approximately $3,332,000 for the six months ended June 30, 2018, an increase of $235,000, or 7.1%. For the six months ended June 30, 2019, approximately $2,990,000 of the Company's revenue represents interest income on the secured, commercial loans that the Company offers to small businesses compared to approximately $2,853,000 for the same period in 2018, and approximately $577,000 represents origination fees on such loans compared to approximately $480,000 for the same period in 2018. The increase in revenue represents an increase in lending operations.

Net income for the six months ended June 30, 2019 was approximately $2,205,000, or $0.23 per basic and diluted share (based on approximately 9.7 million weighted-average outstanding common shares), as compared to approximately $1,930,000, or $0.24 per basic and diluted share (based on approximately 8.1 million weighted-average outstanding common shares), for the six months ended June 30, 2018. This increase is primarily attributable to an increase in revenue, and a decrease in interest costs resulting from lower outstanding amounts under a revolving credit facility following the Company’s public offering in July 2018.

As of June 30, 2019, total stockholders' equity was approximately $33,125,000.

Assaf Ran, Chairman of the Board and CEO, stated, “The real estate market in the geographical areas in which we operate is slow and uncertain. In addition, we still face a high level of competition. Therefore, the interest rate we are able to charge has dropped by approximately 2%. These factors generate a challenging working environment for us, but we still managed to increase net earnings and maintain our default-free track record. In addition, we recently announced a geographical expansion to New Jersey, Connecticut and Florida. Rest assured that our high loan quality standards will not be compromised.”

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 our belief that our high loan quality standards will not be compromised, 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






June 30, 2019


December 31, 2019

(unaudited)


(audited)
Assets







Loans receivable
$
55,911,967


$
54,836,127

Interest receivable on loans

672,900



596,777

Cash

127,169



203,682

Cash - restricted

---



151,375

Other assets

127,559



73,131

Operating lease right-of-use asset, net

113,724



---

Deferred financing costs

32,339



42,040

Total assets
$
56,985,658


$
55,903,132









Liabilities and Stockholders’ Equity







Liabilities:







Line of credit
$
17,737,803


$
16,622,147

Senior secured notes (net of deferred financing costs of $509,956 and $547,499, respectively)

5,490,044



5,452,501

Deferred origination fees

396,443



404,676

Accounts payable and accrued expenses

122,789



183,716

Operating lease liability

113,724



---

Dividends payable

---



1,158,717

Total liabilities

23,860,803



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; 9,657,977 and 9,655,977 outstanding, respectively

9,881



9,874

Additional paid-in capital

33,137,501



33,110,536

Treasury stock, at cost – 223,214 and 218,214 shares

(619,688
)


(590,234
)
Retained earnings (accumulated deficit)

597,161



(448,801
)
Total stockholders’ equity

33,124,855



32,081,375









Total liabilities and stockholders’ equity
$
56,985,658


$
55,903,132




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




Three Months Ended June 30,
Six Months Ended June 30,


2019



2018



2019



2018
Interest income from loans
$
1,487,117


$
1,423,352


$
2,990,202


$
2,852,600
Origination fees

292,253



244,348



577,227



479,574
Total revenue

1,779,370



1,667,700



3,567,429



3,332,174





Operating costs and expenses:




Interest and amortization of debt service costs

387,511



413,074



766,393



810,778
Referral fees

625



83



2,708



416
General and administrative expenses

309,619



305,155



598,356



590,674
Total operating costs and expenses

697,755



718,312



1,367,457



1,401,868
Income from operations

1,081,615



949,388



2,199,972



1,930,306
Other income

3,000



---



6,000



---
Income before income tax expense

1,084,615



949,388



2,205,972



1,930,306
Income tax expense

(572
)


---



(572
)


---
Net income
$
1,084,043


$
949,388


$
2,205,400


$
1,930,306





Basic and diluted net income per common share outstanding:




--Basic
$
0.11


$
0.12


$
0.23


$
0.24
--Diluted
$
0.11


$
0.12


$
0.23


$
0.24





Weighted average number of common shares outstanding:




--Basic

9,659,317



8,111,276



9,657,557



8,110,112
--Diluted

9,661,620



8,119,984



9,659,897



8,117,817

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

FOR THE THREE MONTHS ENDED JUNE 30, 2019

Common Stock

Additional Paid
in Capital

Treasury Stock

Retained
Earnings

Totals

Amount

Cost

Balance, April 1, 2019

9,881,191

$9,881

$33,134,235

219,214

$(595,878

)

$672,556

$ 33,220,794

Purchase of treasury shares

4,000

(23,810

)

(23,810

)

Non cash compensation

3,266

Dividends paid

(1,159,438

)

(1,159,438

)

Net income

1,084,043

Balance, June 30, 2019

9,881,191

$9,881

$33,137,501

223,214

$(619,688

)

$ 597,161

$ 33,124,855

FOR THE THREE MONTHS ENDED JUNE 30, 2018

Common Stock

Additional Paid
in Capital

Treasury Stock

Retained
Earnings

Totals

Amount

Cost

Balance, April 1, 2018

8,319,036

$ 8,319

$ 23,170,777

210,102

$ (541,491

)

$593,252

$ 23,230,857

Exercise of warrants

8,881

48,726

48,735

Non cash compensation

3,266

Dividends paid

(973,072

)

(973,072

)

Net income

949,388

Balance, June 30, 2018

8,327,917

$8,328

$23,222,769

210,102

$(541,491

)

$ 569,568

$ 23,259,174

FOR THE SIX MONTHS ENDED JUNE 30, 2019

Common Stock

Additional Paid
in Capital

Treasury Stock

Accumulated
Deficit
(Retained
Earnings)

Totals

Amount

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

7,000

20,433

20,440

Purchase of treasury shares

5,000

(29,454

)

(29,454

)

Non cash compensation

6,532

Dividends paid

(1,159,438

)

(1,159,438

)

Net income

2,205,400

Balance, June 30, 2019

9,881,191

$9,881

$33,137,501

223,214

$(619,688

)

597,161

$ 33,124,855

FOR THE SIX MONTHS ENDED JUNE 30, 2018

Common Stock

Additional Paid
in Capital

Treasury Stock

Accumulated
Deficit
(Retained
Earnings)

Totals

Amount

Cost

Balance, January 1, 2018

8,319,036

$8,319

$23,167,511

210,102

$(541,491

)

$(387,666

)

$ 22,246,673

Exercise of warrants

8,881

48,726

48,735

Non cash compensation

6,532

Dividends paid

(973,072

)

(973,072

)

Net income

1,930,306

Balance, June 30, 2018

8,327,917

$8,328

$23,222,769

210,102

$(541,491

)

$ 569,568

$ 23,259,174




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





Six Months Ended June 30,


2019

2018
Cash flows from operating activities:




Net income

$
2,205,400


$
1,930,306

Adjustments to reconcile net income to net cash provided by operating activities -




Amortization of deferred financing costs


47,244



51,451

Depreciation


815



2,274

Non cash compensation expense


6,532



6,532

Changes in operating assets and liabilities:




Interest receivable on loans


(76,123
)


(35,760
)
Other assets


(55,243
)


(76,097
)
Accounts payable and accrued expenses


(60,927
)


19,952

Deferred origination fees


(8,233
)


130,105

Net cash provided by operating activities


2,059,465



2,028,763






Cash flows from investing activities:




Issuance of short term loans


(24,697,965
)


(27,792,500
)
Collections received from loans


23,622,125



21,070,000

Net cash used in investing activities


(1,075,840
)


(6,722,500
)





Cash flows from financing activities:




Proceeds from line of credit, net


1,115,656



3,085,406

Proceeds from short-term loans, net


---



3,430,000

Dividends paid


(2,318,155
)


(1,865,055
)
Purchase of treasury shares


(29,454
)


---

Capital raising costs


---



(12,300
)
Proceeds from exercise of stock options and warrants


20,440



48,735

Net cash (used in) provided by financing activities


(1,211,513
)


4,686,786






Net decrease in cash and restricted cash


(227,888
)


(6,951
)
Cash and restricted cash, beginning of period


355,057



136,441

Cash and restricted cash, end of period

$
127,169


$
129,490






Supplemental Cash Flow Information:




Taxes paid during the period

$
572


$
---

Interest paid during the period

$
733,160


$
733,215






Non-cash Investing Activities:




Operating lease right-of-use asset

$
113,724


$
---

Operating lease liability

$
113,724


$
---

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

Company Name:	Manhattan Bridge Capital Inc
Stock Symbol:	LOAN
Market:	NASDAQ
Website:	manhattanbridgecapital.com

Twitter