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
44.8% Increase in Revenues and 25.9% Increase in Net Income

LONG ISLAND, N.Y. July 31, 2015 / 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, 2015 was approximately $912,000 compared to approximately $630,000 for the three month period ended June 30, 2014, an increase of $282,000, or 44.8%. For the three month period ended June 30, 2015, approximately $764,000 of the Company's revenue represents interest income on the secured, commercial loans that the Company offers to small businesses compared to approximately $518,000 for the same period in 2014, and approximately $148,000 represents origination fees on such loans compared to approximately $112,000 for the same period in 2014. The increase in revenue represents an increase in lending operations.

Income from operations for the three month period ended June 30, 2015 was approximately $545,000 compared to approximately $331,000 for the same period ended June 30, 2014, an increase of $214,000 or 64.7%. This increase in income from operations resulted mainly from an increase in revenue, offset by increases in interest and amortization of debt service costs resulting from the Company's establishment and use of its three-year $14 million Webster Credit Line, and in public relations, payroll and travel expenses.

Net income for the three month period ended June 30, 2015 was approximately $530,000, versus approximately $421,000 for same period in 2014, an increase of $109,000 or 25.9%. This increase in net income is mainly due to an increase in income from operations. Net income per share for the three month period ended June 30, 2015 was $0.08, versus $0.10 for the same period in  2014. This decrease mainly resulted from the Company's sale of equity securities during the second quarter. The Company had only begun to realize the significant benefit from the deployment of the proceeds during the third quarter.

Total revenue for the six month period ended June 30, 2015 was approximately $1,824,000 compared to approximately $1,239,000 for the six month period ended June 30, 2014, an increase of $585,000, or 47.2%. For the six month period ended June 30, 2015, approximately $1,521,000 of the Company's revenue represents interest income on the secured, commercial loans that the Company offers to small businesses compared to approximately $1,025,000 for the same period in 2014, and approximately $303,000 represents origination fees on such loans compared to approximately $214,000 for the same period in 2014. The increase in revenue represents an increase in lending operations.

Income from operations for the six month period ended June 30, 2015 was approximately $1,021,000 compared to approximately $647,000 for the same period ended June 30, 2014, an increase of $374,000 or 57.8%. This increase in income from operations resulted mainly from an increase in revenue, offset by increases in interest and amortization of debt service costs, and in payroll, public relations and consulting expenses, and a special bonus to officers for establishing a three-year $14 million revolving line of credit with Webster Business Credit Corporation.

Net income for the six month period ended June 30, 2015 was approximately $1,006,000, versus approximately $629,000 for the same period in 2014, an increase of $377,000 or 59.9%. This increase in net income is mainly due to an increase in income from operations. Net income per share for the six month period ended June 30, 2015 was $0.16, versus $0.15 for the same period in 2014.
           
As of June 30, 2015 total shareholders' equity was approximately $18,184,000 compared to approximately $13,866,000 as of December 31, 2014, an increase of $4,318,000.

The Company completed a public offering of 1,015,000 common shares on May 29, 2015, and the underwriter partially exercised its over-allotment option for an additional 105,000 common shares in June 2015. The gross proceeds from the offering, including the partial exercise of the over-allotment option, were approximately $4.9 million and the net proceeds were approximately $4.3 million, after deducting our underwriting discounts and commissions and offering expenses. 

Assaf Ran, Chairman of the Board and CEO stated, “During the second quarter, we managed to continue growing the Company responsibly and constantly. The successful public offering that was completed at the end of the quarter resulted in an increase in the number of outstanding shares while the Company had only begun to realize the significant benefit from the deployment of the proceeds of the offering during the third quarter. This factor resulted in the decrease in EPS even though net income was significantly higher than the correspond quarter of 2014, " 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 may not qualify as a REIT; (ii) we have 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 SUBSIDIARY
CONSOLIDATED BALANCE SHEETS

 

Assets

June 30, 2015
(unaudited)

December 31, 2014
(audited)

Current assets:

   

   

Cash and cash equivalents   

$        45,361

$           47,676

Short term loans receivable

14,838,708

19,138,426

         Interest receivable on loans

313,658

213,766

Other current assets

67,981

26,995

            Total current assets

15,265,708

19,426,863

 

 

 

Long term loans receivable

11,068,550

4,894,050

Property and equipment, net

16,572

19,088

Security deposit

6,816

6,816

Investment in privately held company

50,000

65,000

Deferred financing costs

128,440

32,500

                
            Total assets

 

$  26,536,086

 

$  24,444,317

Liabilities and Stockholders’ Equity


Current liabilities:

 

 

Short term loans

$    1,095,620

$    2,469,465

Line of credit

6,993,611

7,700,000

Accounts payable and accrued expenses

87,013

163,622

Deferred origination fees

175,448

244,776

                 Total liabilities, all current

8,351,692

10,577,863

             
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; 7,394,489 and 6,260,689 issued; 7,217,489 and 6,083,689 outstanding

 

7,394

 

  6,260

Additional paid-in capital

18,400,776

14,116,183

Treasury stock, at cost – 177,000

(369,335)

(369,335)

Retained earnings

145,559

113,346

           Total stockholders’ equity

18,184,394

13,866,454

             
 Total liabilities and stockholders’ equity

 

$  26,536,086

 

$  24,444,317

 


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

 

Three Months
Ended June 30,

Six Months
Ended June 30,

 

2015

2014

2015

2014

 

Interest income from loans

 

$   764,329

 

$   518,065

 

$1,521,079

 

$1,025,436

Origination fees

          147,625

         112,017

302,636

213,556

     Total Revenue

          911,954

         630,082

       1,823,715

       1,238,992

 

   

   

 

 

Operating costs and expenses:

 

 

 

 

Interest and amortization of debt service costs

                                       
        150,721

                                       
        122,906

 

333,777

 

239,329

Referral fees

1,115

275

2,312

384

General and administrative expenses

                  214,679

                  175,812

  
466,591

   
351,808

     Total operating costs and expenses

 

366,515

 

298,993

          802,680 

                  591,521

 

 

 

 

 

Income from operations

545,439

331,089

1,021,035

647,471

Other income

    ---

          6,887

---

            13,774

Loss on write-down of investment in privately held company

(15,000)

---

(15,000)

---

Income before income tax benefit (expense)

530,439

337,976

1,006,035       

        661,245

Income tax benefit (expense)

---

83,000

---

      (32,000)

Net income

     $   530,439

     $   420,976

 $ 1,006,035       

  $    629,245

 

 

 

 

 

Basic and diluted net income per common share outstanding:

 

 

 

 

--Basic

    $     0.08

    $     0.10

    $     0.16

    $     0.15

--Diluted

    $     0.08

    $     0.10

   $      0.16

   $      0.15

 

 

 

 

 

Weighted average number of common shares outstanding

 

 

 

 

--Basic

6,470,905

4,283,805

6,280,278

4,270,074

--Diluted

6,507,384

4,323,026

6,314,909

4,303,742

    


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

 

 

 

Six Months
Ended June 30,

 

 

 2015

 

 2014

Cash flows from operating activities:

 

 

 

 

  Net Income

 

    $ 1,006,035

 

    $   629,245

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

 

 

 

 

  Amortization of deferred financing costs

 

15,460

 

---

  Depreciation

 

3,200

 

---

  Non cash compensation expense

 

6,832

 

6,832

  Loss on write-down of investment in privately held company

 

15,000

 

---

  Changes in operating assets and liabilities:

 

 

 

 

       Interest receivable on loans

 

(99,892)

 

(28,762)

       Other current and non current assets

 

(40,987)

 

(31,888)

       Accounts payable and accrued expenses

 

(76,609)

 

(7,651)

       Deferred origination fees

 

(69,327)

 

42,873

       Income taxes payable

 

---

 

(242,995)

              Net cash provided by operating activities

 

759,712

 

367,654

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

   Issuance of short term loans

 

(8,825,000)

 

(9,764,000)

   Collections received from loans

 

6,950,218

 

7,537,983

   Purchase of fixed assets

 

(684)

 

---

             Net cash used in investing activities

 

       (1,875,466)

 

       (2,226,017)

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

    (Repayments of) proceeds from loans and lines of credit, net

 

(2,080,234)

 

1,250,000

    Deferred financing costs

 

(111,400)

 

---

    Capital raising costs

 

---

 

(204,429)

    Proceeds from public offering, net

 

4,254,527

 

---

    Proceeds from exercise of stock options and warrants

 

24,368

 

55,230

    Dividend paid

 

(973,822)

 

(127,966)

              Net cash provided by financing activities

 

1,113,439

 

972,835

 

 

 

 

 

Net decrease in cash and cash equivalents

 

            (2,315)

 

        (885,528)

Cash and cash equivalents, beginning of period

 

47,676

 

1,021,023

Cash and cash equivalents, end of period

 

    $     45,361

 

    $   135,495

 

 

 

 

 

Supplemental Cash Flow Information:

 

 

 

 

Taxes paid during the period

 

$             ---

 

$    274,995

Interest paid during the period

 

$    318,317

 

$    239,329