LOAN - Manhattan Bridge Capital Inc. Reports Third Quarter 2021 Results
GREAT NECK, N.Y., Oct. 20, 2021 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN ) announced today that its net income for the three months ended September 30, 2021 was approximately $1,110,000, or $0.10 per basic and diluted share (based on approximately 11.3 million weighted-average outstanding common shares), as compared to approximately $1,151,000, or $0.12 per basic and diluted share (based on approximately 9.6 million weighted-average outstanding common shares), for the three months ended September 30, 2020. The decrease is primarily attributable to a decrease in interest income from loans, partially offset by a decrease in interest expense.
Total revenues for the three months ended September 30, 2021 were approximately $1,627,000, as compared to approximately $1,786,000 for the three months ended September 30, 2020, a decrease of $159,000 or 8.9%. The decrease in revenue was primarily attributable to lower interest rates charged on loans due to market conditions and intense competition from other lenders, partially offset by an increase in origination fees. For the three months ended September 30, 2021 and 2020, approximately $1,323,000 and $1,521,000, respectively, of our revenues were attributable to interest income on secured commercial loans that we offer to real estate investors, and approximately $304,000 and $265,000, respectively, of our 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 nine months ended September 30, 2021 was approximately $3,274,000, or $0.32 per basic and diluted share (based on approximately 10.2 million weighted-average outstanding common shares), as compared to approximately $3,264,000, or $0.34 per basic and diluted share (based on approximately 9.6 million weighted-average outstanding common shares) for the nine months ended September 30, 2020, an increase of $10,000. This increase is primarily attributable to a decrease in interest expense, offset by a decrease in revenue.
Total revenues for the nine months ended September 30, 2021 were approximately $5,070,000 compared to approximately $5,239,000 for the nine months ended September 30, 2020, a decrease of $169,000, or 3.2%. The decrease in revenue was primarily attributable to lower interest rates charged on loans due to market conditions and intense competition from other lenders, partially offset by an increase in origination fees. For the nine months ended September 30, 2021 and 2020, revenues of approximately $4,190,000 and $4,485,000, respectively, were attributable to interest income on the secured commercial loans that we offer to real estate investors, and approximately $880,000 and $753,000, respectively, of our 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.
As previously announced, on July 9, 2021, we completed an underwritten public offering of 1,875,000 of our common shares at a public offering price of $7.20 per share. The gross proceeds raised by us in the offering were $13,500,000, before deducting underwriting discounts and commissions and other estimated offering expenses. The total net proceeds from the offering of approximately $12,354,000 were used to reduce the outstanding balance of our existing credit line. We granted the underwriters a 30-day option to purchase up to an additional 281,250 of our common shares to cover over-allotments, if any. The option expired unexercised in August 2021.
As of September 30, 2021, total stockholders' equity was approximately $45,107,000, compared to approximately $31,964,000 as of December 31, 2020.
Assaf Ran, Chairman of the Board and CEO, stated, “Immediately after the successful public offering at the beginning of the third quarter, we accelerated sales efforts and closed approximately 60% more loans versus the first and second quarters of 2021 on an aggregate basis. However, the amount of loans that was repaid quickly was also unusually high, reflecting what we believe is a strong and liquid portfolio. In addition, we are experiencing a competitive market and see continued pressure on interest rates. Furthermore, our sales team is now larger and generating more loans, and as we have access to more capital, I believe that we’re on the right track to increase the scale of the portfolio. You may have noticed that I agreed to forgo my salary for the fourth quarter. The reason for that is to try to avoid a “return of capital” in our dividend distribution, as we paid the July 15th dividend to the new shareholders before we had an opportunity to deploy the new funds. Most importantly, once again, we have had no defaults since inception,” added Mr. Ran.
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 .
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 the high amount of loan repayments reflects a strong and liquid portfolio and the belief that we are on the right track to increase the scale of the portfolio, 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, 2020 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
| September 30, 2021 |
| December 31, 2020 |
| (unaudited) |
| (audited) |
| Assets |
| Loans receivable |
| $ |
| 53,574,221 |
| $ |
| 58,097,970 |
| Interest receivable on loans |
| 995,384 |
| 827,236 |
| Cash |
| 109,692 |
| 131,654 |
| Cash - restricted |
| --- |
| 327,483 |
| Other assets |
| 93,387 |
| 66,566 |
| Operating lease right-of-use asset, net |
| 330,795 |
| 369,699 |
| Deferred financing costs, net |
| 12,798 |
| 22,807 |
| Total assets |
| $ |
| 55,116,277 |
| $ |
| 59,843,415 |
| Liabilities and Stockholders’ Equity |
| Liabilities: |
| Line of credit |
| $ |
| 3,484,151 |
| $ |
| 20,308,873 |
| Senior secured notes (net of deferred financing costs of $341,013 and $397,327, respectively) |
| 5,658,987 |
| 5,602,673 |
| Deferred origination fees |
| 453,583 |
| 367,638 |
| Accounts payable and accrued expenses |
| 75,958 |
| 168,940 |
| Operating lease liability |
| 336,606 |
| 372,907 |
| Dividends payable |
| --- |
| 1,058,194 |
| Total liabilities |
| 10,009,285 |
| 27,879,225 |
| Commitments and contingencies |
| Stockholders’ equity: |
| Preferred stock - $.01 par value; 5,000,000 shares authorized; none issued |
| --- |
| --- |
| Common stock - $.001 par value; 25,000,000 shares authorized; 11,757,058 and 9,882,058 issued; 11,494,945 and 9,619,945 outstanding |
| 11,757 |
| 9,882 |
| Additional paid-in capital |
| 45,519,479 |
| 33,157,096 |
| Treasury stock, at cost – 262,113 shares |
| (798,939 |
| ) |
| (798,939 |
| ) |
| Retained earnings (accumulated deficit) |
| 374,695 |
| (403,849 |
| ) |
| Total stockholders’ equity |
| 45,106,992 |
| 31,964,190 |
| Total liabilities and stockholders’ equity |
| $ |
| 55,116,277 |
| $ |
| 59,843,415 |
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
| Three Months Ended September 30, |
| Nine Months Ended September 30, |
| 2021 |
| 2020 |
| 2021 |
| 2020 |
| Interest income from loans |
| $ |
| 1,323,085 |
| $ |
| 1,521,474 |
| $ |
| 4,189,658 |
| $ |
| 4,485,414 |
| Origination fees |
| 304,297 |
| 264,878 |
| 880,440 |
| 753,111 |
| Total revenue |
| 1,627,382 |
| 1,786,352 |
| 5,070,098 |
| 5,238,525 |
| Operating costs and expenses: |
| Interest and amortization of deferred financing costs |
| 184,914 |
| 337,901 |
| 819,015 |
| 1,016,590 |
| Referral fees |
| 2,069 |
| 1,641 |
| 6,463 |
| 3,569 |
| General and administrative expenses |
| 335,284 |
| 305,407 |
| 983,867 |
| 968,914 |
| Total operating costs and expenses |
| 522,267 |
| 644,949 |
| 1,809,345 |
| 1,989,073 |
| Income from operations |
| 1,105,115 |
| 1,141,403 |
| 3,260,753 |
| 3,249,452 |
| Other income |
| 4,500 |
| 9,500 |
| 13,500 |
| 15,500 |
| Income before income tax expense |
| 1,109,615 |
| 1,150,903 |
| 3,274,253 |
| 3,264,952 |
| Income tax expense |
| --- |
| --- |
| (647 |
| ) |
| (645 |
| ) |
| Net income |
| $ |
| 1,109,615 |
| $ |
| 1,150,903 |
| $ |
| 3,273,606 |
| $ |
| 3,264,307 |
| Basic and diluted net income per common share outstanding: |
| --Basic |
| $ |
| 0.10 |
| $ |
| 0.12 |
| $ |
| 0.32 |
| $ |
| 0.34 |
| --Diluted |
| $ |
| 0.10 |
| $ |
| 0.12 |
| $ |
| 0.32 |
| $ |
| 0.34 |
| Weighted average number of common shares outstanding |
| --Basic |
| 11,331,902 |
| 9,625,140 |
| 10,196,868 |
| 9,635,107 |
| --Diluted |
| 11,331,902 |
| 9,625,140 |
| 10,196,868 |
| 9,635,107 |
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(unaudited)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2021
| Common Shares |
| Additional Paid in Capital |
| Treasury Stock |
| Retained Earnings |
| Totals |
| Shares |
| Amount |
| Shares |
| Cost |
| Balance, July 1, 2021 |
| 9,882,058 |
| $ |
| 9,882 |
| $ |
| 33,163,628 |
| 262,113 |
| $ |
| (798,939 |
| ) |
| $ |
| 701,948 |
| $ |
| 33,076,519 |
| Public offering, net |
| 1,875,000 |
| 1,875 |
| 12,352,585 |
| 12,354,460 |
| Non-cash compensation |
| 3,266 |
| 3,266 |
| Dividends paid |
| (1,436,868 |
| ) |
| (1,436,868 |
| ) |
| Net income |
| 1,109,615 |
| 1,109,615 |
| Balance, September 30, 2021 |
| 11,757,058 |
| $ |
| 11,757 |
| $ |
| 45,519,479 |
| 262,113 |
| $ |
| (798,939 |
| ) |
| $ |
| 374,695 |
| $ |
| 45,106,992 |
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2020
| Common Shares |
| Additional Paid in Capital |
| Treasury Stock |
| Retained Earnings |
| Totals |
| Shares |
| Amount |
| Shares |
| Cost |
| Balance, July 1, 2020 |
| 9,882,058 |
| $ |
| 9,882 |
| $ |
| 33,150,564 |
| 255,213 |
| $ |
| (771,559 |
| ) |
| $ |
| 463,050 |
| $ |
| 32,851,937 |
| Purchase of treasury shares |
| 6,900 |
| (27,380 |
| ) |
| (27,380 |
| ) |
| Non-cash compensation |
| 3,266 |
| 3,266 |
| Dividends paid |
| (962,684 |
| ) |
| (962,684 |
| ) |
| Net income |
| 1,150,903 |
| 1,150,903 |
| Balance, September 30, 2020 |
| 9,882,058 |
| $ |
| 9,882 |
| $ |
| 33,153,830 |
| 262,113 |
| $ |
| (798,939 |
| ) |
| $ |
| 651,269 |
| $ |
| 33,016,042 |
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021
| Common Shares |
| Additional Paid in Capital |
| Treasury Stock |
| Accumulated Deficit (Retained Earnings) |
| Totals |
| Shares |
| Amount |
| Shares |
| Cost |
| Balance, January 1, 2021 |
| 9,882,058 |
| $ |
| 9,882 |
| $ |
| 33,157,096 |
| 262,113 |
| $ |
| (798,939 |
| ) |
| $ |
| (403,849 |
| ) |
| $ |
| 31,964,190 |
| Public offering, net |
| 1,875,000 |
| 1,875 |
| 12,352,585 |
| 12,354,460 |
| Non-cash compensation |
| 9,798 |
| 9,798 |
| Dividends paid |
| (2,495,062 |
| ) |
| (2,495,062 |
| ) |
| Net income |
| 3,273,606 |
| 3,273,606 |
| Balance, September 30, 2021 |
| 11,757,058 |
| $ |
| 11,757 |
| $ |
| 45,519,479 |
| 262,113 |
| $ |
| (798,939 |
| ) |
| $ |
| 374,695 |
| $ |
| 45,106,992 |
FOR THE NINE MONTHS ENDED SEPTEMBER 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 |
| 9,798 |
| 9,798 |
| Purchase of treasury shares |
| 38,899 |
| (179,251 |
| ) |
| (179,251 |
| ) |
| Dividends paid |
| (2,022,230 |
| ) |
| (2,022,230 |
| ) |
| Net income |
| 3,264,307 |
| 3,264,307 |
| Balance, September 30, 2020 |
| 9,882,058 |
| $ |
| 9,882 |
| $ |
| 33,153,830 |
| 262,113 |
| $ |
| (798,939 |
| ) |
| $ |
| 651,269 |
| $ |
| 33,016,042 |
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
| Nine Months |
| Ended September 30, |
| 2021 |
| 2020 |
| Cash flows from operating activities: |
| Net income |
| $ |
| 3,273,606 |
| $ |
| 3,264,307 |
| Adjustments to reconcile net income to net cash provided by operating activities - |
| Amortization of deferred financing costs |
| 66,324 |
| 76,136 |
| Adjustment to operating lease right-of-use asset and liability |
| 2,603 |
| (333 |
| ) |
| Depreciation |
| 1,716 |
| 744 |
| Non-cash compensation expense |
| 9,798 |
| 9,798 |
| Changes in operating assets and liabilities: |
| Interest receivable on loans |
| (168,148 |
| ) |
| (163,650 |
| ) |
| Other assets |
| (28,538 |
| ) |
| (35,156 |
| ) |
| Accounts payable and accrued expenses |
| (92,982 |
| ) |
| (19,241 |
| ) |
| Deferred origination fees |
| 85,945 |
| 130,795 |
| Net cash provided by operating activities |
| 3,150,324 |
| 3,263,400 |
| Cash flows from investing activities: |
| Issuance of short term loans |
| (28,534,303 |
| ) |
| (35,410,076 |
| ) |
| Collections received from loans |
| 33,058,052 |
| 31,041,693 |
| Release of loan holdback relating to mortgage receivable |
| --- |
| (15,000 |
| ) |
| Purchase of fixed assets |
| --- |
| (923 |
| ) |
| Net cash provided by (used in) investing activities |
| 4,523,749 |
| (4,384,306 |
| ) |
| Cash flows from financing activities: |
| Proceeds from public offering, net |
| 12,354,460 |
| --- |
| (Repayment of) proceeds from line of credit, net |
| (16,824,722 |
| ) |
| 4,546,858 |
| Dividends paid |
| (3,553,256 |
| ) |
| (3,181,291 |
| ) |
| Purchase of treasury shares |
| --- |
| (179,251 |
| ) |
| Deferred financing costs incurred |
| --- |
| (27,102 |
| ) |
| Net cash (used in) provided by financing activities |
| (8,023,518 |
| ) |
| 1,159,214 |
| Net (decrease) increase in cash |
| (349,445 |
| ) |
| 38,308 |
| Cash and restricted cash, beginning of year |
| 459,137 |
| 118,407 |
| Cash, end of period |
| $ |
| 109,692 |
| $ |
| 156,715 |
| Supplemental Cash Flow Information: |
| Taxes paid during the period |
| $ |
| 647 |
| $ |
| 645 |
| Interest paid during the period |
| $ |
| 811,610 |
| $ |
| 954,622 |
| Operating leases paid during the period |
| $ |
| 47,600 |
| $ |
| 40,973 |
| Non-cash Investing Activities: |
| Interest receivable converted to loans receivable in connection with forbearance agreements |
| $ |
| --- |
| $ |
| 29,671 |
Contact:Assaf Ran, CEOVanessa Kao, CFO(516) 444-3400SOURCE: Manhattan Bridge Capital, Inc.