a
60 Cutter Mill Rd.
Suite 205
Great Neck, NY
11021
Tel: 516.444.3400
Fax: 516.444.3404

 

Press Releases

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

Manhattan Bridge Capital, Inc. Reports Second Quarter Results

LONG ISLAND, N.Y. August 13, 2014 / GLOBE Newswire / -- Manhattan Bridge Capital, Inc. (NASDAQ: LOAN)

Manhattan Bridge Capital, Inc. announced today that its total revenue for the three month period ended June 30, 2014 was approximately $630,000 compared to approximately $554,000 for the three month period ended June 30, 2013, an increase of $76,000 or 13.7%. For the three month period ended June 30, 2014, approximately $518,000 of the Company's revenue represents interest income on the secured, commercial loans that the Company offers to small businesses compared to approximately $448,000 for the same period in 2013, and approximately $112,000 represents origination fees on such loans compared to approximately $106,000 for the same period in 2013. The increase in revenue represents an increase in lending operations.

Income from operations for the three month period ended June 30, 2014 was approximately $331,000 compared to approximately $247,000 for the same period ended June 30, 2013, an increase of $84,000 or 34.0%. This increase in income from operations resulted mainly from an increase in revenue and a decrease in general and administrative expenses, offset by an increase in interest and amortization of debt service costs.

Net income for the three month period ended June 30, 2014 was $0.10 per basic and diluted share (based on 4.284 million shares and 4.323 million shares), or $421,000, versus net income of $0.04 per basic and diluted share (based on 4.275 million shares and 4.289 million shares) or $158,000 for the three month period ended June 30, 2013. This increase in net income is mainly due to an increase in income from operations and a decrease in income tax expense as the Company believes it currently satisfies all of the requirements to be taxed as a REIT.

Total revenue for the six month period ended June 30, 2014 was approximately $1,239,000 compared to approximately $1,088,000 for the six month period ended June 30, 2013, an increase of $151,000 or 13.9%. For the six month period ended June 30, 2014, approximately $1,025,000 of the Company's revenue represents interest income on the secured, commercial loans that the Company offers to small businesses compared to approximately $892,000 for the same period in 2013, and approximately $214,000 represents origination fees on such loans compared to approximately $196,000 for the same period in 2013. The increase in revenue represents an increase in lending operations.

Income from operations for the six month period ended June 30, 2014 was approximately $647,000 compared to approximately $505,000 for the same period ended June 30, 2013, an increase of $142,000 or 28.1%. This increase in income from operations resulted mainly from an increase in revenue and a decrease in general and administrative expenses, offset by an increase in interest and amortization of debt service costs.

Net income for the six month period ended June 30, 2014 was $0.15 per basic and diluted share (based on 4.270 million shares and 4.304 million shares), or $629,000, versus net income of $0.08 per basic and diluted share (based on 4.279 million shares and 4.290 million shares) or $331,000 for the same period in 2013, an increase of $298,000. This increase in net income is mainly due to an increase in income from operations and a decrease in income tax expense as the Company believes it currently satisfies all of the requirements to be taxed as a REIT.
           
As of June 30, 2014 total shareholders' equity was approximately $9,456,000 compared to approximately $8,893,000 as of December 31, 2013, an increase of $563,000.

The Company completed a public offering of 1,754,386 common shares at a price to the public of $2.85 per share on July 31, 2014. As a result of the offering, the Company believes it currently satisfies all of the requirements to be taxed as a Real Estate Investment Trust and intends to elect REIT status beginning with its 2014 tax year.  As a REIT, the Company will generally not be subject to income taxes on its income, so long as it meets certain requirements, including distributing 90% of its taxable income to shareholders. 
Assaf Ran, Chairman of the Board and CEO stated, “The second quarter results reflect a pattern of constant growth and increased net earnings while maintaining disciplined underwriting practices in order to continue to avoid defaults.  As we have accomplished a successful stock offering in the beginning of the third quarter, I'm confident in our ability to sustain this record," added Mr. Ran.

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: http://www.manhattanbridgecapital.com

This report contains forward-looking statements within the meaning of section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).  Forward-looking statements are typically identified by the words “believe,” “expect,” “intend,” “estimate” and similar expressions.  Those statements appear in a number of places in this report and include statements regarding our intent, belief or current expectations or those of our directors or officers with respect to, among other things, trends affecting our financial condition and results of operations and our business and growth strategies.  These 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 (such factors are referred to herein as “Cautionary Statements”), including but not limited to the following: (i )we may not qualify as a REIT; (ii) we have a no operating history as a REIT;(iii) our loan origination activities, revenues and profits are limited by available funds (iv)we operate in a highly competitive market and competition may limit our ability to originate loans with favorable interest rates; (v) our chief executive officer is critical to our business and our future success may depend on our ability to retain him; (vi) if we overestimate the yields on our loans or incorrectly value the collateral securing the loan, we may experience losses; (vii) we may be subject to “lender liability” claims; (viii) our loan portfolio is illiquid; (ix) our due diligence may not uncover all of a borrower’s liabilities or other risks to its business; (x) borrower concentration could lead to significant losses; (xi) our management has no experience managing a REIT; and (xii) 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 accompanying information contained in this report, including the information set forth under “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, identifies important factors that could cause such differences.  These forward-looking statements speak only as of the date of this report, and we caution potential investors not to place undue reliance on such statements.  We undertake no obligation to update or revise any forward-looking statements.  All subsequent written or oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the Cautionary Statements.


MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

 

Assets

June 30, 2014
(unaudited)

December 31,2013
(audited)

Current assets:

   

   

Cash and cash equivalents   

$        135,495

$    1,021,023

Short term loans receivable

11,415,967

10,697,950

         Interest receivable on loans

200,245

171,483

Other current assets

50,428

18,540

            Total current assets

11,802,135

11,908,996

 

 

 

Investment in real estate

146,821

146,821

Long term loans receivable

5,505,000

3,997,000

Other assets

204,429

---

Security deposit

6,637

6,637

Investment in privately held company

65,000

65,000

                
            Total assets

 

$  17,730,022

 

$  16,124,454

Liabilities and Stockholders’ Equity


Current liabilities:

 

 

Short term loans

$   1,319,465

$   1,319,465

Line of credit

6,600,000

5,350,000

Accounts payable and accrued expenses

49,416

57,066

Deferred origination fees

174,889

132,017

Income taxes payable

130,224

373,219

                 Total liabilities, all current

8,273,994

7,231,767

             
Commitments

 

 

Stockholders’ equity:

 

 

Preferred shares - $.01 par value; 5,000,000 shares authorized; no shares issued

 

---

 

---

Common shares - $.001 par value; 25,000,000 authorized; 4,482,190 and 4,433,190 issued; 4,305,190 and 4,256,190 outstanding

 

  4,482

 

  4,433

Additional paid-in capital

9,807,261

9,745,249

Treasury stock, at cost – 177,000 shares

(369,335)

(369,335)

Retained earnings (accumulated deficit)

13,620

(487,660)

           Total stockholders’ equity

9,456,028

8,892,687

             
 Total liabilities and stockholders’ equity

 

$  17,730,022

 

$  16,124,454

 

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

 

Three Months
Ended June 30,

Six Months
Ended June 30,

 

2014

2013

2014

2013

 

Interest income from loans

 

$   518,065

 

$   447,522

 

$1,025,436

 

 $    892,301

Origination fees

          112,017

         106,273

213,556

195,855

     Total Revenue

          630,082

         553,795

       1,238,992

       1,088,156

 

   

   

 

 

Operating costs and expenses:

 

 

 

 

Interest and amortization of debt service costs

                                       
        122,906

                                       
        101,560

 

239,329

 

204,206

Referral fees

275

334

384

929

General and administrative expenses

                   175,812

                   204,857

   
351,808

   
377,725

     Total operating costs and expenses

 

298,993

 

306,751

      
         591,521

                       
         582,860

 

 

 

 

 

Income from operations

331,089

247,044

647,471

505,296

Other income

          6,887

          6,887

            13,774

            13,774

Income before income tax benefit (expense)

                                        337,976

                                        253,931

        661,245

        519,070

Income tax benefit (expense)

83,000

(96,000)

      (32,000)

      (188,000)

Net Income

     $   420,976

     $   157,931

  $    629,245

  $    331,070

 

 

 

 

 

Basic and diluted net income per common share outstanding:

 

 

 

 

--Basic

    $     0.10

    $     0.04

    $     0.15

    $     0.08

--Diluted

    $     0.10

    $     0.04

   $      0.15

   $      0.08

 

 

 

 

 

Weighted average number of common shares outstanding

 

 

 

 

--Basic

4,283,805

4,274,562

4,270,074

4,278,868

--Diluted

4,323,026

4,289,134

4,303,742

4,289,988

 

 

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

Six Months
Ended June 30,

 

 

 2014

 

 2013

Cash flows from operating activities:

 

 

 

 

  Net Income

 

    $   629,245

 

    $   331,070

  Adjustments to reconcile net income to net cash provided by  
     operating activities -

 

 

 

 

  Amortization of deferred financing costs

 

---

 

23,538

  Non cash compensation expense

 

6,832

 

8,518

  Changes in operating assets and liabilities:

 

 

 

 

       Interest receivable on loans

 

(28,762)

 

(76)

       Other current and non current assets

 

(31,888)

 

(32,202)

       Accounts payable and accrued expenses

 

(7,651)

 

(50,638)

       Deferred origination fees

 

42,873

 

54,523

       Income taxes payable

 

(242,995)

 

(86,120)

              Net cash provided by operating activities

 

367,654

 

248,613

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

   Issuance of short term loans

 

(9,764,000)

 

(8,430,500)

   Collections received from loans

 

7,537,983

 

7,871,866

             Net cash used in investing activities

 

       (2,226,017)

 

        (558,634)

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

    Proceeds from loans and line of credit, net

 

1,250,000

 

1,260,000

    Purchase of treasury shares

 

---

 

(76,053)

    Capital raising costs

 

(204,429)

 

---

    Proceeds from exercise of stock options

 

55,230

 

22,540

    Dividend paid

 

(127,966)

 

(42,786)

              Net cash provided by financing activities

 

972,835

 

1,163,701

 

 

 

 

 

Net (decrease) increase in cash and cash equivalents

 

        (885,528)

 

         853,680

Cash and cash equivalents, beginning of period

 

1,021,023

 

240,693

Cash and cash equivalents, end of period

 

    $   135,495

 

    $ 1,094,373

 

 

 

 

 

Supplemental Cash Flow Information:

 

 

 

 

Taxes paid during the period

 

$    274,995

 

$    274,120

Interest paid during the period

 

$    239,329

 

$    180,667