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

GREAT NECK, N.Y., March 17, 2020 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. LOAN announced today that net income for the year ended December 31, 2019 was approximately $4,495,000, or $0.47 per share (based on approximately 9.7 million weighted-average outstanding common shares), versus approximately $4,204,000, or $0.48 per share (based on approximately 8.8 million weighted-average outstanding common shares) for the year ended December 31, 2018, an increase of $291,000 or 7.0%. This increase in net income was mainly due to an increase in operating income and decreases in interest and payroll expenses.

Total revenue for the year ended December 31, 2019 was approximately $7,340,000 compared to approximately $7,225,000 for the year ended December 31, 2018, an increase of $115,000 or 1.6%. The increase in revenue was primarily attributable to an increase in origination fees resulting from an increase in the rate of loan turnover. In 2019, approximately $6,186,000 of our revenue represents interest income on secured, real estate loans that we offer to small businesses compared to approximately $6,168,000 in 2018, and approximately $1,154,000 represents origination fees on such loans compared to approximately $1,057,000 in 2018.

Total operating costs and expenses for the year ended December 31, 2019 were approximately $2,842,000 compared to approximately $3,022,000 for the year ended December 31, 2018, a decrease of $180,000 or 6.0%. The decrease in operating costs and expenses is primarily attributable to an annual bonus paid to officers in 2018 which was not repeated in 2019, a voluntary waiver from the Company's CEO forgoing his base salary for the months of November and December 2019, and decreased interest expense due to lower LIBOR rates.

As of December 31, 2019, total shareholders' equity was approximately $31,943,000 compared to approximately $32,081,000 as of December 31, 2018.

Effective February 25, 2020, the Company amended its existing credit line agreement with Webster Business Credit Corporation, Flushing Bank, and Mizrahi Tefahot Bank Ltd. to further increase its credit line from $25 million to $32.5 million and extend its term to February 28, 2023.

On February 26, 2020, our Board of Directors authorized a share buy back program for the Company to purchase up to 100,000 of its common shares in the next twelve months. As of March 12, 2020, the Company has purchased a total of 18,786 common shares under this share buy back program, at an aggregate cost of approximately $102,000.

Assaf Ran, Chairman of the Board and CEO, stated, "During 2019, typical interest rates charged by hard money lenders dropped from 12% to 10%. Our challenge was to maintain revenue and net income without compromising our quality standards. We believe that we managed to achieve that. While due to the reduction of interest rates and the general slowdown in the real estate markets, our growth rate declined, we're proud to present another year of no defaults in our portfolio."

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 the potential repurchase of our shares, 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, 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
DECEMBER 31, 2019 AND 2018

	2019		2018
Assets
Loans receivable	$	53,485,014	$	54,836,127
Interest receivable on loans		675,996		596,777
Cash		118,407		203,682
Cash - restricted		---		151,375
Other assets		53,218		73,131
Operating lease right-of-use asset, net		87,754		---
Deferred financing costs		22,637		42,040
Total assets	$	54,443,026	$	55,903,132


Liabilities and Stockholders' Equity
Liabilities:

Line of credit	$	15,232,993		$	16,622,147
Senior secured notes (net of deferred financing costs of $472,413 and $547,499)		5,527,587			5,452,501
Deferred origination fees		322,119			404,676
Accounts payable and accrued expenses		151,823			183,716
Operating lease liability		91,025			---
Other liabilities		15,000			---
Dividends payable		1,159,061			1,158,717
Total liabilities		22,499,608			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		33,144,032			33,110,536
Treasury stock, at cost – 223,214 and 218,214 shares		(619,688	)		(590,234	)
Accumulated deficit		(590,808	)		(448,801	)
Total stockholders' equity		31,943,418			32,081,375
Total liabilities and stockholders' equity	$	54,443,026		$	55,903,132

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018

		2019			2018

Interest income from loans	$	6,185,764		$	6,167,600
Origination fees		1,153,941			1,056,962
Total revenue		7,339,705			7,224,562
Operating costs and expenses:
Interest and amortization of deferred financing costs		1,635,134			1,699,064
Referral fees		3,750			1,708
General and administrative expenses		1,202,739			1,321,724
Total operating costs and expenses		2,841,623			3,022,496

Income from operations		4,498,082			4,202,066
Other income		12,000			3,000
Loss on write-off of investment in privately held company		(15,000	)		---
Income before income tax expense		4,495,082			4,205,066
Income tax expense		(572	)		(642	)
Net income	$	4,494,510		$	4,204,424

Basic and diluted net income per common share outstanding:
--Basic	$	0.47		$	0.48
--Diluted	$	0.47		$	0.48

Weighted average number of common shares outstanding
--Basic		9,658,147			8,792,207
--Diluted		9,659,285			8,799,044

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018

	Common Stock		Additional Paid-in Capital	Treasury Stock		Accumulated Deficit	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	9,369	9	48,726				48,735
Non cash compensation			13,065				13,065
Purchase of treasury shares				8,112	(48,743)		(48,743)
Dividends paid						(3,106,842)	(3,106,842)
Dividends declared and payable						(1,158,717)	(1,158,717)
Net income for the year ended December 31, 2018						4,204,424	4,204,424
Balance, December 31, 2018	9,874,191	9,874	33,110,536	218,214	(590,234)	(448,801)	32,081,375
Exercise of warrants and options	7,867	8	20,432				20,440
Non cash compensation			13,064				13,064
Purchase of treasury shares				5,000	(29,454)		(29,454)
Dividends paid						(3,477,456)	(3,477,456)
Dividends declared and payable						(1,159,061)	(1,159,061)
Net income for the year ended December 31, 2019						4,494,510	4,494,510
Balance, December 31, 2019	9,882,058	$9,882	$33,144,032	223,214	$(619,688)	$(590,808)	$31,943,418

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018

		2019			2018
Cash flows from operating activities:
Net income	$	4,494,510		$	4,204,424
Adjustments to reconcile net income to net cash provided by operating activities -
Amortization of deferred financing costs		94,489			98,695
Depreciation		1,414			3,711
Non cash compensation expense		13,064			13,065
Loss on write-off of investment in privately held company		15,000			---
Adjustment to operating lease right-of-use asset and liability		3,271			---
Changes in operating assets and liabilities
Interest receivable on loans		(79,219	)		(61,732	)
Other assets		3,499			(19,753	)
Accounts payable and accrued expenses		(31,893	)		16,157
Deferred origination fees		(82,557	)		106,205
Net cash provided by operating activities		4,431,578			4,360,772

Cash flows from investing activities:
Issuance of short term loans		(48,053,965	)		(51,859,000	)
Collections received from loans		49,420,078			42,146,873
Purchase of fixed assets		---			(1,148	)
Net cash provided by (used in) investing activities		1,366,113			(9,713,275	)
Cash flows from financing activities:
Repayments of proceeds from line of credit, net		(1,389,154	)		(292,447	)
Proceeds from public offering, net		---			9,882,780
Dividends paid		(4,636,173	)		(3,998,825	)
Proceeds from exercise of stock options and warrants		20,440			48,735
Purchase of treasury shares		(29,454	)		(48,743	)
Deferred financing costs incurred		---			(20,381	)
Net cash (used in) provided by financing activities		(6,034,341	)		5,571,119

Net (decrease) increase in cash and restricted cash		(236,650	)		218,616
Cash and restricted cash, beginning of year		355,057			136,441
Cash and restricted cash, end of year	$	118,407		$	355,057

Supplemental Cash Flow Information:
Taxes paid during the year	$	572		$	642
Interest paid during the year	$	1,560,644		$	1,584,508
Operating leases paid during the year	$	52,571		$	50,096

Supplemental Information – Noncash Information:
Dividend declared and payable	$	1,159,061		$	1,158,717
Establishment of right-of-use asset and operating lease liability	$	135,270		$	---
Loan holdback relating to mortgage receivable	$	15,000		$	---

SOURCE: Manhattan Bridge Capital, Inc.

Contact:
Assaf Ran, CEO
Vanessa Kao, CFO
(516) 444-3400

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