LOAN - Manhattan Bridge Capital Inc. Reports Second Quarter 2020 Results
GREAT NECK, N.Y., July 23, 2020 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that its total revenues for the three months ended June 30, 2020 were approximately $1,741,000 compared to approximately $1,779,000 for the three months ended June 30, 2019, a decrease of $38,000, or 2.1%. The decrease in revenues was primarily attributable to lower interest rates and origination points charged on loans due to market conditions and intense competition from other lenders, as well as lower demand for new loans resulting from the COVID-19 pandemic. For the three months ended June 30, 2020 and 2019, approximately $1,490,000 and $1,487,000, respectively, of our revenues were attributable to interest income on secured commercial loans that we offer to small businesses, and approximately $251,000 and $292,000, respectively, of our revenues were attributable to origination fees on such loans.
Net income for the three months ended June 30, 2020 was approximately $1,097,000, or $0.11 per basic and diluted share (based on approximately 9.63 million weighted-average outstanding common shares), as compared to approximately $1,084,000, or $0.11 per basic and diluted share (based on approximately 9.66 million weighted-average outstanding common shares), for the three months ended June 30, 2019. The increase is primarily attributable to the decrease in interest expense, offset by the decrease in revenue.
Total revenues for the six months ended June 30, 2020 were approximately $3,452,000 compared to approximately $3,567,000 for the six months ended June 30, 2019, a decrease of $115,000, or 3.2%. The decrease in revenues were primarily attributable to lower interest rates and origination points charged on loans due to market conditions and intense competition from other lenders, as well as lower demand for new loans resulting from the COVID-19 pandemic. For the six months ended June 30, 2020 and 2019, revenues of approximately $2,964,000 and $2,990,000, respectively, were attributable to interest income on secured commercial loans that we offer to small businesses, and approximately $488,000 and $577,000, respectively, were attributable to origination fees on such loans.
Net income for the six months ended June 30, 2020 was approximately $2,113,000, or $0.22 per basic and diluted share (based on approximately 9.64 million weighted-average outstanding common shares), as compared to approximately $2,205,000, or $0.23 per basic and diluted share (based on approximately 9.66 million weighted-average outstanding common shares), for the six months ended June 30, 2019. 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.
As of June 30, 2020, total stockholders' equity was approximately $32,852,000.
Assaf Ran, Chairman of the Board and CEO, stated, “We hope that the worst is behind us, yet, the level of uncertainty about the future is still high. The COVID-19 is a reality test for our underwriting skills and performance, and so far, I’m proud to say – we are passing! Although we have dealt, and still are dealing with, some COVID-19 related issues, at this point we consider them manageable, minor and immaterial. I believe that based on our underwriting skills and performance, we belong to a selective group of REITs that did not pause or substantially reduce dividends. Further, due to the hard work and devotion of our team, we managed to approximately match the results of the same quarter a year ago.”
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 hope that the worst of the COVID-19 pandemic is behind us, our belief that the COVID-19 pandemic was a reality test for our underwriting skills and performance and so far we believe we are passing, our belief that the COVID-19 related issues, at this point, are manageable, minor and immaterial and that based on our underwriting skills and performance, and our belief that we belong to a selective group of REITs that did not pause or substantially reduce dividends, 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
| June 30, 2020 |
| December 31, 2019 |
| (unaudited) |
| (audited) |
| Assets |
| Loans receivable |
| $ |
| 55,857,217 |
| $ |
| 53,485,014 |
| Interest receivable on loans |
| 770,628 |
| 675,996 |
| Cash |
| 194,026 |
| 118,407 |
| Other assets |
| 118,909 |
| 53,218 |
| Operating lease right-of-use asset, net |
| 64,506 |
| 87,754 |
| Deferred financing costs |
| 37,026 |
| 22,637 |
| Total assets |
| $ |
| 57,042,312 |
| $ |
| 54,443,026 |
| Liabilities and Stockholders’ Equity |
| Liabilities: |
| Line of credit |
| $ |
| 18,076,228 |
| $ |
| 15,232,993 |
| Senior secured notes (net of deferred financing costs of $434,870 and $472,413) |
| 5,565,130 |
| 5,527,587 |
| Deferred origination fees |
| 361,632 |
| 322,119 |
| Accounts payable and accrued expenses |
| 119,808 |
| 151,823 |
| Operating lease liability |
| 67,577 |
| 91,025 |
| Other liabilities |
| --- |
| 15,000 |
| Dividends payable |
| --- |
| 1,159,061 |
| Total liabilities |
| 24,190,375 |
| 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; 9,626,845 and 9,658,844 outstanding, respectively |
| 9,882 |
| 9,882 |
| Additional paid-in capital |
| 33,150,564 |
| 33,144,032 |
| Treasury stock, at cost – 255,213 and 223,214 shares |
| (771,559 |
| ) |
| (619,688 |
| ) |
| Retained earnings (accumulated deficit) |
| 463,050 |
| (590,808 |
| ) |
| Total stockholders’ equity |
| 32,851,937 |
| 31,943,418 |
| Total liabilities and stockholders’ equity |
| $ |
| 57,042,312 |
| $ |
| 54,443,026 |
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
| Three Months Ended June 30, |
| Six Months Ended June 30, |
| 2020 |
| 2019 |
| 2020 |
| 2019 |
| Interest income from loans |
| $ |
| 1,490,395 |
| $ |
| 1,487,117 |
| $ |
| 2,963,940 |
| $ |
| 2,990,202 |
| Origination fees |
| 250,791 |
| 292,253 |
| 488,233 |
| 577,227 |
| Total revenue |
| 1,741,186 |
| 1,779,370 |
| 3,452,173 |
| 3,567,429 |
| Operating costs and expenses: |
| Interest and amortization of debt service costs |
| 326,247 |
| 387,511 |
| 678,689 |
| 766,393 |
| Referral fees |
| 1,386 |
| 625 |
| 1,928 |
| 2,708 |
| General and administrative expenses |
| 318,726 |
| 309,619 |
| 663,507 |
| 598,356 |
| Total operating costs and expenses |
| 646,359 |
| 697,755 |
| 1,344,124 |
| 1,367,457 |
| Income from operations |
| 1,094,827 |
| 1,081,615 |
| 2,108,049 |
| 2,199,972 |
| Other income |
| 3,000 |
| 3,000 |
| 6,000 |
| 6,000 |
| Income before income tax expense |
| 1,097,827 |
| 1,084,615 |
| 2,114,049 |
| 2,205,972 |
| Income tax expense |
| (645 |
| ) |
| (572 |
| ) |
| (645 |
| ) |
| (572 |
| ) |
| Net income |
| $ |
| 1,097,182 |
| $ |
| 1,084,043 |
| $ |
| 2,113,404 |
| $ |
| 2,205,400 |
| Basic and diluted net income per common share outstanding: |
| --Basic |
| $ |
| 0.11 |
| $ |
| 0.11 |
| $ |
| 0.22 |
| $ |
| 0.23 |
| --Diluted |
| $ |
| 0.11 |
| $ |
| 0.11 |
| $ |
| 0.22 |
| $ |
| 0.23 |
| Weighted average number of common shares outstanding: |
| --Basic |
| 9,628,405 |
| 9,659,317 |
| 9,640,146 |
| 9,657,557 |
| --Diluted |
| 9,628,405 |
| 9,661,620 |
| 9,640,146 |
| 9,659,897 |
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(unaudited)
FOR THE THREE MONTHS ENDED JUNE 30, 2020
| Common Shares |
| Additional Paid in Capital |
| Treasury Stock |
| Retained Earnings |
| Totals |
| Shares |
| Amount |
| Shares |
| Cost |
| Balance, April 1, 2020 |
| 9,882,058 |
| $ |
| 9,882 |
| $ |
| 33,147,298 |
| 249,823 |
| $ |
| (750,724 |
| ) |
| $ |
| 425,414 |
| $ |
| 32,831,870 |
| Purchase of treasury shares |
| 5,390 |
| (20,835 |
| ) |
| (20,835 |
| ) |
| Non - cash compensation |
| 3,266 |
| 3,266 |
| Dividends paid |
| (1,059,546 |
| ) |
| (1,059,546 |
| ) |
| Net income |
| 1,097,182 |
| 1,097,182 |
| Balance, June 30, 2020 |
| 9,882,058 |
| $ |
| 9,882 |
| $ |
| 33,150,564 |
| 255,213 |
| $ |
| (771,559 |
| ) |
| $ |
| 463,050 |
| $ |
| 32,851,937 |
FOR THE THREE MONTHS ENDED JUNE 30, 2019
| Common Shares |
| Additional Paid in Capital |
| Treasury Stock |
| Retained Earnings |
| Totals |
| Shares |
| Amount |
| Shares |
| 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 |
| 3,266 |
| Dividends paid |
| (1,159,438 |
| ) |
| (1,159,438 |
| ) |
| Net income |
| 1,084,043 |
| 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 SIX MONTHS ENDED JUNE 30, 2020
| Common Shares |
| 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 |
| 6,532 |
| 6,532 |
| Purchase of treasury shares |
| 31,999 |
| (151,871 |
| ) |
| (151,871 |
| ) |
| Dividends paid |
| (1,059,546 |
| ) |
| (1,059,546 |
| ) |
| Net income |
| 2,113,404 |
| 2,113,404 |
| Balance, June 30, 2020 |
| 9,882,058 |
| $ |
| 9,882 |
| $ |
| 33,150,564 |
| 255,213 |
| $ |
| (771,559 |
| ) |
| $ |
| 463,050 |
| $ |
| 32,851,937 |
FOR THE SIX MONTHS ENDED JUNE 30, 2019
| Common Shares |
| 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 options |
| 7,000 |
| 7 |
| 20,433 |
| 20,440 |
| Purchase of treasury shares |
| 5,000 |
| (29,454 |
| ) |
| (29,454 |
| ) |
| Non – cash compensation |
| 6,532 |
| 6,532 |
| Dividends paid |
| (1,159,438 |
| ) |
| (1,159,438 |
| ) |
| Net income |
| 2,205,400 |
| 2,205,400 |
| Balance, June 30, 2019 |
| 9,881,191 |
| $ |
| 9,881 |
| $ |
| 33,137,501 |
| 223,214 |
| $ |
| (619,688 |
| ) |
| $ |
| 597,161 |
| $ |
| 33,124,855 |
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
| Six Months Ended June 30, |
| 2020 |
| 2019 |
| Cash flows from operating activities: |
| Net income |
| $ |
| 2,113,404 |
| $ |
| 2,205,400 |
| Adjustments to reconcile net income to net cash provided by operating activities - |
| Amortization of deferred financing costs |
| 50,256 |
| 47,244 |
| Adjustment to operating lease right-of-use asset and liability |
| (200 |
| ) |
| --- |
| Depreciation |
| 548 |
| 815 |
| Non-cash compensation expense |
| 6,532 |
| 6,532 |
| Changes in operating assets and liabilities: |
| Interest receivable on loans |
| (124,303 |
| ) |
| (76,123 |
| ) |
| Other assets |
| (65,316 |
| ) |
| (55,243 |
| ) |
| Accounts payable and accrued expenses |
| (32,015 |
| ) |
| (60,927 |
| ) |
| Deferred origination fees |
| 39,513 |
| (8,233 |
| ) |
| Net cash provided by operating activities |
| 1,988,419 |
| 2,059,465 |
| Cash flows from investing activities: |
| Issuance of short term loans |
| (21,798,160 |
| ) |
| (24,697,965 |
| ) |
| Collections received from loans |
| 19,455,628 |
| 23,622,125 |
| Release of loan holdback relating to mortgage receivable |
| (15,000 |
| ) |
| --- |
| Purchase of fixed assets |
| (923 |
| ) |
| --- |
| Net cash used in investing activities |
| ( 2,358,455 |
| ) |
| ( 1,075,840 |
| ) |
| Cash flows from financing activities: |
| Proceeds from line of credit, net |
| 2,843,235 |
| 1,115,656 |
| Dividends paid |
| (2,218,607 |
| ) |
| (2,318,155 |
| ) |
| Purchase of treasury shares |
| (151,871 |
| ) |
| (29,454 |
| ) |
| Deferred financing costs incurred |
| (27,102 |
| ) |
| --- |
| Proceeds from exercise of stock options |
| --- |
| 20,440 |
| Net cash provided by (used in) financing activities |
| 445,655 |
| (1,211,513 |
| ) |
| Net increase (decrease) in cash |
| 75,619 |
| (227,888 |
| ) |
| Cash, beginning of period |
| 118,407 |
| 355,057 |
| Cash, end of period |
| $ |
| 194,026 |
| $ |
| 127,169 |
| Supplemental Cash Flow Information: |
| Taxes paid during the period |
| $ |
| 645 |
| $ |
| 572 |
| Interest paid during the period |
| $ |
| 650,130 |
| $ |
| 733,160 |
| Operating leases paid during the period |
| $ |
| 27,227 |
| $ |
| 25,584 |
| Supplemental Information – Noncash Information: |
| Establishment of right-of-use asset and operating lease liability |
| $ |
| --- |
| $ |
| 135,270 |
| Interest receivable converted to loans receivable in connection with forbearance agreements |
| $ |
| 29,671 |
| $ |
| --- |
SOURCE: Manhattan Bridge Capital, Inc.
Contact:Assaf Ran, CEOVanessa Kao, CFO(516) 444-3400