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Manhattan Bridge Capital, Inc. Reports Second Quarter Results

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GREAT NECK, N.Y., July 27, 2018 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (NASDAQ:LOAN) announced today that its total revenue for the three months ended June 30, 2018 was approximately $1,668,000 compared to approximately $1,401,000 for the three months ended June 30, 2017, an increase of $267,000, or 19.1%. For the three months ended June 30, 2018, approximately $1,423,000 of the Company's revenue represents interest income on the secured, commercial loans that the Company offers to small businesses compared to approximately $1,189,000 for the same period in 2017, and approximately $244,000 represents origination fees on such loans compared to approximately $212,000 for the same period in 2017. The increase in revenue represents an increase in lending operations.

Net income for the three months ended June 30, 2018 was approximately $949,000, or $0.12 per basic and diluted share (based on approximately 8.1 million weighted-average outstanding common shares), as compared to approximately $840,000, or $0.10 per basic and diluted share (based on approximately 8.1 million weighted-average outstanding common shares) for the three months ended June 30, 2017. This increase is primarily attributable to the increase in revenue, offset by an increase in interest expense.

Total revenue for the six months ended June 30, 2018 was approximately $3,332,000 compared to approximately $2,731,000 for the six months ended June 30, 2017, an increase of $601,000, or 22.0%. For the six months ended June 30, 2018, approximately $2,853,000 of the Company's revenue represents interest income on the secured, commercial loans that the Company offers to small businesses compared to approximately $2,295,000 for the same period in 2017, and approximately $480,000 represents origination fees on such loans compared to approximately $436,000 for the same period in 2017. The increase in revenue represents an increase in lending operations.

Net income for the six months ended June 30, 2018 was approximately $1,930,000, or $0.24 per basic and diluted share (based on approximately 8.1 million weighted-average outstanding common shares), as compared to approximately $1,631,000, or $0.20 per basic and diluted share (based on approximately 8.1 million weighted-average outstanding common shares) for the six months ended June 30, 2017. This increase is primarily attributable to the increase in revenue, offset by an increase in interest expense.
           
As of June 30, 2018, total shareholders' equity was approximately $23,259,000 compared to approximately $22,247,000 as of December 31, 2017.

Effective July 11, 2018, the Company amended its existing credit line agreement with Webster Business Credit Corporation and Flushing Bank to, among other things, further increase its credit line from $20 million to $25 million.

On July 24, 2018, the Company completed a public offering of 1,428,572 of its common shares at a public offering price of $7.00 per share. The gross proceeds raised by the Company from the offering were $10,000,004 before deducting underwriting discounts and commissions and other estimated offering expenses. The total net proceeds from the offering were approximately $9,100,000. The Company has granted the underwriters a 45-day option to purchase up to 214,286 additional common shares to cover over-allotments, if any.

Assaf Ran, Chairman of the Board and CEO stated, "We believe that the financial results for the second quarter once again reflect our strict underwriting and disciplined loan criteria, which continue to prove themselves as we maintain a default free loan portfolio. At the beginning of the third quarter we increased the line of credit from our lenders by $5 million to $25 million in the aggregate, and completed an equity raise of $10 million. I'm confident in my belief that the additional capital will help us achieve further growth."

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. 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 exercise by the underwriter of the over-allotment option, with respect to our public offering, or our belief that the additional capital represented by the offering and increase in our credit line will help us achieve further growth  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 you 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, 2017 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, 2018   December 31, 2017
  (unaudited)   (audited)
Assets      
Loans receivable $ 51,846,500     $ 45,124,000  
Interest receivable on loans   570,805       535,045  
Cash and cash equivalents   129,490       136,441  
Deferred financing costs   31,361       45,269  
Other assets   142,064       55,941  
Total assets $ 52,720,220     $ 45,896,696  
Liabilities and Stockholders' Equity      
Liabilities:      
Line of credit $ 20,000,000     $ 16,914,594  
Short term loans - related party   2,430,000       ---  
Short term loan   1,000,000       ---  
Senior secured notes (net of deferred financing costs of $585,041 and $622,584)      
    5,414,959       5,377,416  
Deferred origination fees   428,576       298,471  
Accounts payable and accrued expenses   187,511       167,559  
Dividends payable   ---       891,983  
Total liabilities   29,461,046       23,650,023  
       
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; 8,327,917 and 8,319,036 issued, respectively; 8,117,815 and 8,108,934 outstanding, respectively   8,328       8,319  
Additional paid-in capital   23,222,769       23,167,511  
Treasury stock, at cost - 210,102 shares   (541,491)       (541,491)  
Retained earnings (accumulated deficit)   569,568       (387,666)  
Total stockholders' equity   23,259,174       22,246,673  
       
Total liabilities and stockholders' equity $ 52,720,220     $ 45,896,696  
       


MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
 
  Three Months
Ended June 30,
Six Months
Ended June 30,
    2018   2017     2018   2017  
Interest income from loans $ 1,423,352 $ 1,188,567   $ 2,852,600 $ 2,294,748  
Origination fees   244,348   212,334     479,574   435,759  
Total Revenue   1,667,700   1,400,901     3,332,174   2,730,507  
         
Operating costs and expenses:        
Interest and amortization of debt service costs   413,074   277,651     810,778   509,233  
Referral fees   83   841     416   2,201  
General and administrative expenses   305,155   270,471     590,674   575,986  
Total operating costs and expenses   718,312   548,963     1,401,868   1,087,420  
Income from operations   949,388   851,938     1,930,306   1,643,087  
Loss on write-down of investment in
  privately held company
  ---   (10,000)     ---   (10,000)  
Income before income tax expense   949,388   841,938     1,930,306   1,633,087  
Income tax expense   ---   (1,872)     ---   (1,872)  
Net income $ 949,388 $ 840,066   $ 1,930,306 $ 1,631,215  
         
Basic and diluted net income per common
  share outstanding:
       
--Basic $ 0.12 $ 0.10   $ 0.24 $ 0.20  
--Diluted $ 0.12 $ 0.10   $ 0.24 $ 0.20  
         
Weighted average number of common shares outstanding:        
--Basic   8,111,276   8,119,052     8,110,112   8,127,000  
--Diluted   8,119,984   8,131,752     8,117,817   8,142,157  
                     


MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
 
     
    Six Months
Ended June 30,
       2018        2017  
Cash flows from operating activities:        
Net Income   $ 1,930,306     $ 1,631,215  
Adjustments to reconcile net income to net cash provided by 
  operating activities -
       
Amortization of deferred financing costs     51,451       61,625  
Depreciation     2,274       2,186  
Non cash compensation expense     6,532       6,532  
Loss on write-down of investment in privately held company     ---       10,000  
Changes in operating assets and liabilities:        
Interest receivable on loans     (35,760 )     (110,599 )
Other assets     (76,097 )     (35,109 )
Accounts payable and accrued expenses     19,952       (4,053 )
Deferred origination fees     130,105       46,112  
Other liabilities     ---       25,000  
Net cash provided by operating activities     2,028,763       1,632,909  
         
Cash flows from investing activities:        
Issuance of short term loans     (27,792,500 )     (20,599,500 )
Collections received from loans     21,070,000       14,113,000  
Purchase of fixed assets     ---       (1,666 )
Net cash used in investing activities     (6,722,500 )     (6,488,166 )
         
Cash flows from financing activities:        
Proceeds from line of credit, net     3,085,406       6,683,151  
Proceeds from short-term loans, net     3,430,000       ---  
Dividend paid     (1,865,055 )     (1,627,007 )
Purchase of treasury shares     ---       (172,156 )
Capital raising costs     (12,300 )     ---  
Proceeds from exercise of warrants     48,735       ---  
Net cash provided by financing activities     4,686,786       4,883,988  
         
Net (decrease) increase in cash and cash equivalents     (6,951 )     28,731  
Cash and cash equivalents, beginning of year     136,441       96,299  
Cash and cash equivalents, end of period   $ 129,490     $ 125,030  
         
Supplemental Cash Flow Information:        
Taxes paid during the period   $ ---     $ 1,872  
Interest paid during the period   $ 733,215     $ 415,273  
                 

SOURCE: Manhattan Bridge Capital, Inc.

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

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