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 Reports 46.0% Increase in Net Income

 

Great Neck, N.Y. May 2, 2016 / GLOBE Newswire
Manhattan Bridge Capital, Inc. (NASDAQ: LOAN ) announced today that net income for the three month period ended March 31, 2016 was approximately $695,000 or $0.10 per share, versus approximately $476,000 or $0.08 per share for the three month period ended March 31, 2015, an increase in net income of 46.0% or in earnings per share of 25%. This increase is primarily attributable to the increase in revenue and the decrease in operating expenses.
Total revenues for the three month period ended March 31, 2016 were approximately $1,105,000 compared to approximately $912,000 for the three month period ended March 31, 2015, an increase of $193,000 or 21.2%. The increase in revenue represents an increase in lending operations. In 2016, approximately $914,000 of our revenue represents interest income on secured, commercial loans that we offer to small businesses compared to approximately $757,000 for the same period in 2015, and approximately $190,000 represents origination fees on such loans compared to approximately $155,000 for the same period in 2015. The loans are principally secured by collateral consisting of real estate and, generally, accompanied by personal guarantees from the principals of the businesses.
As of March 31, 2016 total stockholders' equity was approximately $18,442,000 compared to approximately $17,743,000 as of December 31, 2015, an increase of $699,000.

On April 25, 2016, MBC Funding II Corp (“Funding”), our wholly owned subsidiary, completed an underwritten public offering of 6% senior notes due April 22, 2026. We guaranteed Funding’s obligations under the Notes, which is secured by our pledge of 100% of the outstanding common shares of Funding owned by us. The gross proceeds to Funding from this offering were approximately $6.0 million, and the net proceeds were approximately $5.3 million, after deducting the underwriting discounts and commissions and other offering expenses. Funding utilized the proceeds to purchase a pool of mortgage loans from us, which we in turn used to pay down the Webster Credit Line.
Assaf Ran, Chairman of the Board and CEO stated, “As we started 2016 we experienced an unusual number of loan pay-offs. We see that as a good indicator of the quality of our portfolio, but it also created a challenge to redeploy the proceeds in order to maintain our growth. We took the necessary steps in order to build a pipe line of qualified loans and as reflected in the financial results we successfully managed to face the challenge," 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. 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 have limited operating history as a REIT; (ii) our loan origination activities, revenues and profits are limited by available funds (iii)we operate in a highly competitive market and competition may limit our ability to originate loans with favorable interest rates; (iv) our chief executive officer is critical to our business and our future success may depend on our ability to retain him; (v) if we overestimate the yields on our loans or incorrectly value the collateral securing the loan, we may experience losses; (vi) we may be subject to “lender liability” claims; (vii) our loan portfolio is illiquid; (viii) our due diligence may not uncover all of a borrower’s liabilities or other risks to its business; (ix) borrower concentration could lead to significant losses; (x) our management has no experience managing a REIT; and (xi) 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

March 31, 2016
(unaudited)

December 31, 2015
(audited)

Current assets:

   

   

Cash and cash equivalents   

$          61,279

$        106,836

Cash - restricted

464,889

---

Short term loans receivable

19,417,500

20,199,000

         Interest receivable on loans

364,808

382,572

Other current assets

48,928

32,865

            Total current assets

20,357,404

20,721,273

 

 

 

Long term loans receivable

9,591,050

10,705,040

Property and equipment, net
Security deposit

8,947
6,816

8,771
6,816

Investment in privately held company

50,000

50,000

Deferred financing costs

315,581

164,510

                
            Total assets

 

$  30,329,798

 

$  31,656,410

Liabilities and Stockholders’ Equity


Current liabilities:

 

 

Line of credit

$  10,650,498

$ 11,821,099

Short term loans

   860,620

   1,095,620

Accounts payable and accrued expenses

127,777

99,643

Deferred origination fees

 249,258

279,682

Dividends payable

---

617,443

                 Total liabilities, all current

11,888,153

13,913,487

             
Commitments and contingencies

 

 

Stockholders’ equity:

 

 

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

 

---

 

---

Common shares - $.001 par value; 25,000,000 authorized; 7,441,039 issued; 7,264,039 outstanding

 

  7,441

 

  7,441

Additional paid-in capital

18,503,921

18,500,524

Treasury stock, at cost – 177,000

(369,335)

(369,335)

Retained earnings (Accumulated deficit)

299,618

(395,707)

           Total stockholders’ equity

18,441,645

17,742,923

             
 Total liabilities and stockholders’ equity

 

$  30,329,798

 

$  31,656,410

 

 

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

 

Three Months
Ended March 31,

 

 

2016

2015

 

 

 

 

 

Interest income from loans

        $   914,309

        $  756,750

 

Origination fees

             190,281

             155,011

 

            Total revenue

1,104,590

911,761

 

 

Operating costs and expenses:

 

 

 

Interest and amortization of debt service costs

            179,550

            183,055

 

Referral fees

1,369

1,197

 

General and administrative expenses

227,839

251,913

 

             Total operating costs and expenses

408,758

436,165

 

 

 

 

 

Income from operations before income tax expense

695,832

475,596

 

Income tax expense

(508)

---

 

Net income

$  695,324

$  475,596

 

 

 

 

 

Basic and diluted net income per common share outstanding:

 

 

 

 

--Basic

$       0.10

$        0.08

 

--Diluted

$       0.10

$        0.08

 

 

 

 

Weighted average number of common shares outstanding:

 

 

 

--Basic

7,264,039

6,087,531

 

--Diluted

7,292,372

6,129,016

 

 


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

 

 

Three Months
Ended March 31,

 

 

 2016

 

 2015

 

 

 

 

 

Cash flows from operating activities:

 

 

 

 

  Net income

 

$      695,324

 

$      475,596

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

 

 

 

 

  Amortization of deferred financing costs

 

12,041

 

3,418

  Depreciation

 

862

 

1,591

  Non cash compensation expense

 

3,397

 

3,416

    Changes in operating assets and liabilities:

 

 

 

 

       Interest receivable on loans

 

17,764

 

(5,532)

       Other current and non current assets

 

(16,063)

 

(25,309)

       Accounts payable and accrued expenses

 

28,135

 

(97,560)

       Deferred origination fees

 

(30,424)

 

(78,243)

              Net cash provided by operating activities

 

711,036

 

277,377

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

   Issuance of short term loans

 

(5,913,500)

 

(2,807,000)

   Collections received from loans

 

7,808,990

 

3,078,520

   Purchase of fixed assets

 

(1,038)

 

---

             Net cash provided by investing activities

 

1,894,452

 

271,520

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

    (Repayment of) proceeds from lines of credit, net

               

(1,405,601)

 

1,616,046

    Cash restricted for reduction of line of credit

 

(464,889)

 

---

    Repayments of short-term loans, net

 

---

 

(1,373,846)

    Deferred financing costs

 

(163,112)

 

(90,556)

    Dividend paid

 

(617,443)

 

(486,695)

    Capital raising costs

 

---

 

(12,500)

    Proceeds from exercise of stock options and warrants

               

---

 

7,260

             Net cash used in financing activities

 

(2,651,045)

 

(340,291)

             

 

 

 

 

Net (decrease) increase in cash and cash equivalents

 

(45,557)

 

208,606

Cash and cash equivalents, beginning of period

 

106,836

 

47,676

Cash and cash equivalents, end of period

 

$     61,279

 

$      256,282

 

 

 

 

 

Supplemental Cash Flow Information:

 

 

 

 

Taxes paid during the period

 

$            508

 

$               ---

Interest paid during the period

 

$     176,799

 

$     179,637