Manhattan Bridge Capital, Inc. Reports Third Quarter 2019 Results - Manhattan Bridge Capital (NASDAQ:LOAN)

GREAT NECK, N.Y., Oct. 21, 2019 (GLOBE NEWSWIRE) --

Manhattan Bridge Capital, Inc. LOAN announced today that total revenue for the three month period ended September 30, 2019 was approximately $1,917,000 compared to approximately $1,891,000 for the three month period ended September 30, 2018, an increase of $26,000, or 1.4%. The increase in revenue is the result of an increase in lending operations. For the three month periods ended September 30, 2019 and 2018, approximately $1,619,000 and $1,617,000, respectively, of our revenues were attributable to interest income on the secured commercial loans that we offer to small businesses, and approximately $298,000 and $275,000, respectively, of our revenues were attributable to origination fees on such loans.

Net income for the three month period ended September 30, 2019 was approximately $1,150,000, or $0.12 per basic and diluted share (based on approximately 9.7 million weighted-average outstanding common shares), versus net income of approximately $1,189,000, or $0.13 per basic and diluted share (based on approximately 9.3 million weighted-average outstanding common shares), for the three month period ended September 30, 2018, a decrease of $39,000, or 3.3%. This decrease is primarily attributable to an increase in general and administrative expenses.

Total revenue for the nine month period ended September 30, 2019 was approximately $5,484,000 compared to approximately $5,224,000 for the nine month period ended September 30, 2018, an increase of $260,000, or 5.0%. The increase in revenue is the result of an increase in lending operations. For the nine month periods ended September 30, 2019 and 2018, revenues of approximately $4,609,000 and $4,469,000, respectively, were attributable to interest income on the secured commercial loans that we offer to small businesses, and approximately $875,000 and $755,000, respectively, were attributable to origination fees on such loans.

Net income for the nine month period ended September 30, 2019 was approximately $3,355,000, or $0.35 per basic and diluted share (based on approximately 9.7 million weighted-average outstanding common shares), versus net income of approximately $3,119,000, or $0.37 per basic and diluted share (based on approximately 8.5 million weighted-average outstanding common shares), for the same period in 2018, an increase of $236,000, or 7.6%. This increase is primarily attributable to the increase in revenue, offset by an increase in general and administrative expenses.

As of September 30, 2019, total shareholders' equity was approximately $33,119,000.

Assaf Ran, Chairman of the Board and CEO, stated, "We continue to operate under challenging market conditions: real estate property prices are declining, listed houses are taking longer to sell, our borrowers are more hesitant to step in to new deals and yet the competition from other lenders remains intense. In addition, the market standard hard money annual interest rate dropped from 12% a year ago to 10% today. Given these conditions, I believe that the financial results for the third quarter reflect success. I believe that our loan portfolio is strong and solid, and will prevail despite the market slow down. Once again, we can proudly report that we have no defaulted loans," 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 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 that the belief that our loan portfolio is strong and solid, and will prevail despite the market slow down, 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

Assets	September 30, 2019 (unaudited)		December 31, 2018 (audited)
Loans receivable	$	59,722,672	$	54,836,127
Interest receivable on loans		763,971		596,777
Cash		125,962		203,682
Cash - restricted		337,512		151,375
Other assets		98,182		73,131
Operating lease right-of-use asset, net		102,466		---
Deferred financing costs		27,488		42,040
Total assets	$	61,178,253	$	55,903,132

Liabilities and Stockholders' Equity

Liabilities:
Line of credit	$	21,864,042	$	16,622,147
Senior secured notes (net of deferred financing costs of $491,185 and $547,499, respectively)		5,508,815		5,452,501
Deferred origination fees		404,215		404,676
Accounts payable and accrued expenses		164,582		183,716
Operating lease liability		102,466		---
Other liabilities		15,000		---
Dividends payable		---		1,158,717
Total liabilities		28,059,120		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		33,140,766		33,110,536
Treasury stock, at cost – 223,214 and 218,214 shares		(619,688)		(590,234)
Retained earnings (accumulated deficit)		588,173		(448,801)
Total stockholders' equity		33,119,133		32,081,375
Total liabilities and stockholders' equity	$	61,178,253	$	55,903,132

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

	Three Months Ended September 30,				Nine Months Ended September 30,
		2019		2018		2019		2018
Interest income from loans	$	1,618,735	$	1,616,518	$	4,608,936	$	4,469,118
Origination fees		298,222		274,936		875,449		754,510
Total revenue		1,916,957		1,891,454		5,484,385		5,223,628

Operating costs and expenses:
Interest and amortization of debt service costs		454,307		429,421		1,220,700		1,240,199
Referral fees		861		250		3,569		667
General and administrative expenses		314,820		272,321		913,175		862,994
Total operating costs and expenses		769,988		701,992		2,137,444		2,103,860
Income from operations		1,146,969		1,189,462		3,346,941		3,119,768
Other income		3,000		---		9,000		---
Income before income tax expense		1,149,969		1,189,462		3,355,941		3,119,768
Income tax expense		---		(642)		(572)		(642)
Net income	$	1,149,969	$	1,188,820	$	3,355,369	$	3,119,126

Basic and diluted net income per common share outstanding:
--Basic	$	0.12	$	0.13	$	0.35	$	0.37
--Diluted	$	0.12	$	0.13	$	0.35	$	0.37

Weighted average number of common shares outstanding
--Basic		9,658,608		9,266,962		9,657,911		8,499,967
--Diluted		9,659,764		9,274,822		9,659,012		8,507,724

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

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2019

	Common Stock			Additional Paid in Capital		Treasury Stock			Retained Earnings		Totals
	Shares	Amount				Shares	Cost
Balance, July 1, 2019	9,881,191	$	9,881	$	33,137,501	223,214	$	(619,688)	$	597,161	$	33,124,855
Exercise of warrants	867		1		(1)							0
Non cash compensation					3,266							3,266
Dividends paid										(1,158,957)		(1,158,957)
Net income										1,149,969		1,149,969
Balance, September 30, 2019	9,882,058	$	9,882	$	33,140,766	223,214	$	(619,688)	$	588,173	$	33,119,133

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2018

	Common Stock			Additional Paid in Capital		Treasury Stock			Retained Earnings		Totals
	Shares	Amount				Shares	Cost
Balance, July 1, 2018	8,327,917	$	8,328	$	23,222,769	210,102	$	(541,491)	$	569,568	$	23,259,174
Public Offering	1,545,786		1,546		9,881,234							9,882,780
Non cash compensation					3,266							3,266
Dividends paid										(974,139)		(974,139)
Net income										1,188,820		1,188,820
Balance, September 30, 2018	9,873,703	$	9,874	$	33,107,269	210,102	$	(541,491)	$	784,249	$	33,359,901

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019

	Common Stock			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 and warrants	7,867		8		20,432							20,440
Purchase of treasury shares						5,000		(29,454)				(29,454)
Non cash compensation					9,798							9,798
Dividends paid										(2,318,395)		(2,318,395)
Net income										3,355,369		3,355,369
Balance, September 30, 2019	9,882,058	$	9,882	$	33,140,766	223,214	$	(619,688)	$	588,173	$	33,119,133

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2018

	Common Stock			Additional Paid in Capital		Treasury Stock			Accumulated Deficit (Retained Earnings)		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	8,881		9		48,726							48,735
Non cash compensation					9,798							9,798
Dividends paid										(1,947,211)		(1,947,211)
Net income										3,119,126		3,119,126
Balance, September 30, 2018	9,873,703	$	9,874	$	33,107,269	210,102	$	(541,491)	$	784,249	$	33,359,901

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

	Nine Months Ended September 30,
		2019			2018
Cash flows from operating activities:
Net income	$	3,355,369		$	3,119,126
Adjustments to reconcile net income to net cash provided by operating activities -
Amortization of deferred financing costs		70,867			75,073
Depreciation		1,157			3,287
Non cash compensation expense		9,798			9,798
Changes in operating assets and liabilities:
Interest receivable on loans		(167,194	)		(107,088	)
Other assets		(26,209	)		(48,052	)
Accounts payable and accrued expenses		(19,134	)		(15,166	)
Deferred origination fees		(461	)		199,381
Net cash provided by operating activities		3,224,193			3,236,359

Cash flows from investing activities:
Issuance of short term loans		(38,246,965	)		(42,417,500	)
Collections received from loans		33,375,420			29,030,264
Net cash used in investing activities		(4,871,545	)		(13,387,236	)

Cash flows from financing activities:
Proceeds from line of credit, net		5,241,895			4,802,752
Proceeds from public offering, net		---			9,882,780
Proceeds from exercise of stock options and warrants		20,440			48,735
Dividends paid		(3,477,112	)		(2,839,193	)
Purchase of treasury shares		(29,454	)		---
Deferred financing costs		---			(20,380	)
Net cash provided by financing activities		1,755,769			11,874,694

Net increase in cash and restricted cash		108,417			1,723,817
Cash and restricted cash, beginning of period		355,057			136,441
Cash and restricted cash, end of period	$	463,474		$	1,860,258

Supplemental Cash Flow Information:
Taxes paid during the period	$	572		$	642
Interest paid during the period	$	1,144,425		$	1,142,341

Non-cash Investing Activities:
Loan holdback relating to mortgage receivable	$	15,000		$	---

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

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