LOAN - Manhattan Bridge Capital Inc. Reports Second Quarter 2023 Results
GREAT NECK, N.Y., July 20, 2023 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN ) (the “Company”) announced today that its total revenues for the three months ended June 30, 2023 were approximately $2,399,000 compared to approximately $2,117,000 for the three months ended June 30, 2022, an increase of $282,000, or 13.3%. The increase in revenues was due to higher interest rates charged on the Company’s commercial loans. For the three months ended June 30, 2023 and 2022, approximately $1,943,000 and $1,612,000, respectively, of the Company’s revenues were attributable to interest income on secured commercial loans that the Company offers to real estate investors, and approximately $457,000 and $504,000, respectively, of its revenues were attributable to origination fees on such loans. The loans are principally secured by collateral consisting of real estate and accompanied by personal guarantees from the principals of the borrowers.
Net income for the three months ended June 30, 2023 was approximately $1,422,000, or $0.12 per basic and diluted share (based on approximately 11.48 million weighted-average outstanding common shares), as compared to approximately $1,356,000, or $0.12 per basic and diluted share (based on approximately 11.49 million weighted-average outstanding common shares), for the three months ended June 30, 2022, an increase of $66,000, or 4.9%. This increase is primarily attributable to the increase in interest income, partially offset by an increase in interest expense.
Total revenues for the six months ended June 30, 2023 were approximately $4,797,000 compared to approximately $4,232,000 for the six months ended June 30, 2022, an increase of $565,000, or 13.4%. The increase in revenue was due to higher interest rates charged on the Company’s commercial loans. For the six months ended June 30, 2023 and 2022, revenues of approximately $3,896,000 and $3,256,000, respectively, were attributable to interest income on secured commercial loans that the Company offers to real estate investors, and approximately $901,000 and $976,000, respectively, were attributable to origination fees on such loans. The loans are principally secured by collateral consisting of real estate and accompanied by personal guarantees from the principals of the borrowers.
Net income for the six months ended June 30, 2023 was approximately $2,681,000, or $0.23 per basic and diluted share (based on approximately 11.49 million weighted-average outstanding common shares), as compared to approximately $2,781,000, or $0.24 per basic and diluted share (based on approximately 11.49 million weighted-average outstanding common shares), for the six months ended June 30, 2022, a decrease of $100,000, or 3.6%. This decrease is primarily attributable to the increase in interest expense and a special bonus to officers in 2023, partially offset by an increase in interest income.
As of June 30, 2023, total stockholders' equity was approximately $42,804,000.
On April 11, 2023, the Company’s Board of Directors authorized a share buy back program, pursuant to which the Company may, from time to time, purchase up to 100,000 of its common shares. This program does not obligate the Company to purchase any shares and expires on April 10, 2024. The authorization for the program may be terminated, increased or decreased by the Company’s Board of Directors in its discretion at any time. As of June 30, 2023, the Company has purchased an aggregate of 33,360 common shares under this repurchase program, at an aggregate cost of approximately $165,000.
Assaf Ran, Chairman of the Board and Chief Executive Officer of the Company, stated, “During the second quarter, we benefited from the impact of implementing increased interest rates on the vast majority of our loan portfolio. Finally, the balance between paying a higher interest to our bank and charging a higher interest to our borrowers is working in our favor, due to the fact that our debt to equity ratio is extraordinarily low.”
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 website: https://www.manhattanbridgecapital.com .
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
Assets |
| June 30, 2023 (unaudited) |
| December 31, 2022 (audited) |
| Loans receivable |
| $ |
| 69,811,335 |
| $ |
| 74,483,463 |
| Interest receivable on loans |
| 1,274,288 |
| 1,363,502 |
| Cash |
| 248,874 |
| 103,540 |
| Other assets |
| 134,819 |
| 59,566 |
| Operating lease right-of-use asset, net |
| 234,793 |
| 262,222 |
| Deferred financing costs, net |
| 33,948 |
| 7,708 |
| Total assets |
| $ |
| 71,738,057 |
| $ |
| 76,280,001 |
| Liabilities and Stockholders’ Equity |
| Liabilities: |
| Line of credit |
| $ |
| 20,670,721 |
| $ |
| 24,994,234 |
| Senior secured notes (net of deferred financing costs of $209,614 and $247,155, respectively) |
| 5,790,386 |
| 5,752,845 |
| Deferred origination fees |
| 686,981 |
| 669,128 |
| Accounts payable and accrued expenses |
| 231,736 |
| 289,868 |
| Operating lease liability |
| 247,287 |
| 273,485 |
| Loan holdback |
| 17,500 |
| --- |
| Dividends payable |
| 1,289,428 |
| 1,436,868 |
| Total liabilities |
| 28,934,039 |
| 33,416,428 |
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; 11,757,058 issued; 11,461,585 and 11,494,945 outstanding, respectively |
| 11,757 |
| 11,757 |
| Additional paid-in capital |
| 45,542,343 |
| 45,535,811 |
| Treasury stock, at cost – 295,473 and 262,113 shares, respectively |
| (963,745 |
| ) |
| (798,939 |
| ) |
| Accumulated deficit |
| (1,786,337 |
| ) |
| (1,885,056 |
| ) |
| Total stockholders’ equity |
| 42,804,018 |
| 42,863,573 |
Total liabilities and stockholders’ equity |
| $ |
| 71,738,057 |
| $ |
| 76,280,001 |
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
| Three Months Ended June 30, |
| Six Months Ended June 30, |
| 2023 |
| 2022 |
| 2023 |
| 2022 |
Interest income from loans |
$ |
1,942,527 |
$ |
1,612,308 |
$ |
3,896,349 |
$ |
3,256,097 |
| Origination fees |
| 456,835 |
| 504,455 |
| 900,806 |
| 975,726 |
| Total revenue |
| 2,399,362 |
| 2,116,763 |
| 4,797,155 |
| 4,231,823 |
| Operating costs and expenses: |
| Interest and amortization of deferred financing costs |
595,427 |
376,383 |
1,241,690 |
708,236 |
| Referral fees |
| 1,000 |
| 1,958 |
| 1,292 |
| 3,320 |
| General and administrative expenses |
| 400,979 |
| 386,238 |
| 897,075 |
| 747,726 |
| Total operating costs and expenses |
| 997,406 |
| 764,579 |
| 2,140,057 |
| 1,459,282 |
| Income from operations |
| 1,401,956 |
| 1,352,184 |
| 2,657,098 |
| 2,772,541 |
| Other income |
| 20,380 |
| 4,500 |
| 24,880 |
| 9,000 |
| Income before income tax expense |
| 1,422,336 |
| 1,356,684 |
| 2,681,978 |
| 2,781,541 |
| Income tax expense |
| (650 |
| ) |
| (650 |
| ) |
| (650 |
| ) |
| (650 |
| ) |
| Net income |
| $ |
| 1,421,686 |
| $ |
| 1,356,034 |
| $ |
| 2,681,328 |
| $ |
| 2,780,891 |
| Basic and diluted net income per common share outstanding: |
| --Basic |
| $ |
| 0.12 |
| $ |
| 0.12 |
| $ |
| 0.23 |
| $ |
| 0.24 |
| --Diluted |
| $ |
| 0.12 |
| $ |
| 0.12 |
| $ |
| 0.23 |
| $ |
| 0.24 |
| Weighted average number of common shares outstanding: |
| --Basic |
| 11,475,406 |
| 11,494,945 |
| 11,485,116 |
| 11,494,945 |
| --Diluted |
| 11,475,406 |
| 11,494,945 |
| 11,485,116 |
| 11,494,945 |
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(unaudited)
FOR THE THREE MONTHS ENDED JUNE 30, 2023
| Common Shares |
| Additional Paid in Capital |
| Treasury Stock |
| Accumulated Deficit |
| Totals |
| Shares |
| Amount |
| Shares |
| Cost |
| Balance, April 1, 2023 |
| 11,757,058 |
| $ |
| 11,757 |
| $ |
| 45,539,077 |
| 262,113 |
| $ |
| (798,939 |
| ) |
| $ |
| (1,918,595 |
| ) |
| $ |
| 42,833,300 |
| Purchase of treasury shares |
| 33,360 |
| (164,806 |
| ) |
| (164,806 |
| ) |
| Non - cash compensation |
| 3,266 |
| 3,266 |
| Dividends declared and payable |
| (1,289,428 |
| ) |
| (1,289,428 |
| ) |
| Net income |
| 1,421,686 |
| 1,421,686 |
| Balance, June 30, 2023 |
| 11,757,058 |
| $ |
| 11,757 |
| $ |
| 45,542,343 |
| 295,473 |
| $ |
| (963,745 |
| ) |
| $ |
| (1,786,337 |
| ) |
| $ |
| 42,804,018 |
FOR THE THREE MONTHS ENDED JUNE 30, 2022
| Common Shares |
| Additional Paid in Capital |
| Treasury Stock |
| Accumulated Deficit |
| Totals |
| Shares |
| Amount |
| Shares |
| Cost |
| Balance, April 1, 2022 |
| 11,757,058 |
| $ |
| 11,757 |
| $ |
| 45,526,012 |
| 262,113 |
| $ |
| (798,939 |
| ) |
| $ |
| (1,361,333 |
| ) |
| $ |
| 43,377,497 |
| Non - cash compensation |
| 3,266 |
| 3,266 |
| Dividends declared and payable |
| (1,436,868 |
| ) |
| (1,436,868 |
| ) |
| Net income |
| 1,356,034 |
| 1,356,034 |
| Balance, June 30, 2022 |
| 11,757,058 |
| $ |
| 11,757 |
| $ |
| 45,529,278 |
| 262,113 |
| $ |
| (798,939 |
| ) |
| $ |
| (1,442,167 |
| ) |
| $ |
| 43,299,929 |
FOR THE SIX MONTHS ENDED JUNE 30, 2023
| Common Shares |
| Additional Paid in Capital |
| Treasury Stock |
| Accumulated Deficit |
| Totals |
| Shares |
| Amount |
| Shares |
| Cost |
| Balance, January 1, 2023 |
| 11,757,058 |
| $ |
| 11,757 |
| $ |
| 45,535,811 |
| 262,113 |
| $ |
| (798,939 |
| ) |
| $ |
| (1,885,056 |
| ) |
| $ |
| 42,863,573 |
| Purchase of treasury shares |
| 33,360 |
| (164,806 |
| ) |
| (164,806 |
| ) |
| Non - cash compensation |
| 6,532 |
| 6,532 |
| Dividends paid |
| (1,293,181 |
| ) |
| (1,293,181 |
| ) |
| Dividends declared and payable |
| (1,289,428 |
| ) |
| (1,289,428 |
| ) |
| Net income |
| 2,681,328 |
| 2,681,328 |
| Balance, June 30, 2023 |
| 11,757,058 |
| $ |
| 11,757 |
| $ |
| 45,542,343 |
| 295,473 |
| $ |
| (963,745 |
| ) |
| $ |
| (1,786,337 |
| ) |
| $ |
| 42,804,018 |
FOR THE SIX MONTHS ENDED JUNE 30, 2022
| Common Shares |
| Additional Paid in Capital |
| Treasury Stock |
| Accumulated Deficit |
| Totals |
| Shares |
| Amount |
| Shares |
| Cost |
| Balance, January 1, 2022 |
| 11,757,058 |
| $ |
| 11,757 |
| $ |
| 45,522,746 |
| 262,113 |
| $ |
| (798,939 |
| ) |
| $ |
| (1,349,322 |
| ) |
| $ |
| 43,386,242 |
| Non - cash compensation |
| 6,532 |
| 6,532 |
| Dividends paid |
| (1,436,868 |
| ) |
| (1,436,868 |
| ) |
| Dividends declared and payable |
| (1,436,868 |
| ) |
| (1,436,868 |
| ) |
| Net income |
| 2,780,891 |
| 2,780,891 |
| Balance, June 30, 2022 |
| 11,757,058 |
| $ |
| 11,757 |
| $ |
| 45,529,278 |
| 262,113 |
| $ |
| (798,939 |
| ) |
| $ |
| (1,442,167 |
| ) |
| $ |
| 43,299,929 |
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
| Six Months Ended June 30, |
| 2023 |
| 2022 |
| Cash flows from operating activities: |
| Net income |
| $ 2,681,328 |
| $ 2,780,891 |
| Adjustments to reconcile net income to net cash provided by operating activities - |
| Amortization of deferred financing costs |
| 49,494 |
| 53,999 |
| Adjustment to operating lease right-of-use asset and liability |
| 1,230 |
| 2,316 |
| Depreciation |
| 1,946 |
| 972 |
| Non-cash compensation expense |
| 6,532 |
| 6,532 |
| Changes in operating assets and liabilities: |
| Interest receivable on loans |
| 89,214 |
| (96,889) |
| Other assets |
| (72,115) |
| (63,871) |
| Accounts payable and accrued expenses |
| (58,132) |
| 31,151 |
| Deferred origination fees |
| 17,853 |
| 132,166 |
| Net cash provided by operating activities |
| 2,717,350 |
| 2,847,267 |
| Cash flows from investing activities: |
| Issuance of short term loans |
| (28,122,249) |
| (37,953,007) |
| Collections received from loans |
| 32,811,877 |
| 34,364,708 |
| Purchase of fixed assets |
| (5,085) |
| (1,893) |
| Net cash provided by (used in) investing activities |
| 4,684,543 |
| (3,590,192) |
| Cash flows from financing activities: |
| (Repayment of) proceeds from line of credit, net |
| (4,323,513) |
| 3,627,556 |
| Dividends paid |
| (2,730,049) |
| (2,873,736) |
| Purchase of treasury shares |
| (164,806) |
| --- |
| Deferred financing costs incurred |
| (38,191) |
| (35,819) |
| Net cash (used in) provided by financing activities |
| (7,256,559) |
| 718,001 |
| Net increase (decrease) in cash |
| 145,334 |
| (24,924) |
| Cash, beginning of year |
| 103,540 |
| 142,546 |
| Cash, end of period |
| $ 248,874 |
| $ 117,622 |
| Supplemental Cash Flow Information: |
| Taxes paid during the period |
| $ 650 |
| $ 650 |
| Interest paid during the period |
| $ 1,215,297 |
| $ 608,902 |
| Operating leases paid during the period |
| $ 31,863 |
| $ 31,786 |
| Supplemental Information – Noncash Information: |
| Dividend declared and payable |
| $ 1,289,428 |
| $ 1,436,868 |
| Loan holdback relating to mortgage receivable |
| $ 17,500 |
| $ --- |
Contact:Assaf Ran, CEOVanessa Kao, CFO(516) 444-3400SOURCE: Manhattan Bridge Capital, Inc.