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
27.9% Increase in Revenues and 34.0% Increase in Net Income

LONG ISLAND, N.Y. July 28, 2016 / 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, 2016 was approximately $1,166,000 compared to approximately $912,000 for the three month period ended June 30, 2015, an increase of $254,000, or 27.9%. For the three month period ended June 30, 2016, approximately $974,000 of the Company's revenue represents interest income on the secured, commercial loans that the Company offers to small businesses compared to approximately $764,000 for the same period in 2015, and approximately $192,000 represents origination fees on such loans compared to approximately $148,000 for the same period in 2015. The increase in revenue represents an increase in lending operations.

Income from operations for the three month period ended June 30, 2016 was approximately $722,000 compared to approximately $545,000 for the same period ended June 30, 2015, an increase of $177,000 or 32.5%. This increase in income from operations resulted mainly from an increase in revenue, offset by an increase in interest and amortization of debt service costs resulting from the issuance of senior secured notes.

Net income for the three month period ended June 30, 2016 was approximately $710,000 or $0.10 per share, versus net income of approximately $530,000 or $0.08 per share for the three month period ended June 30, 2015, an increase of $180,000 or 34.0%. This increase in net income is mainly due to an increase in income from operations.

Total revenue for the six month period ended June 30, 2016 was approximately $2,270,000 compared to approximately $1,824,000 for the six month period ended June 30, 2015, an increase of $446,000, or 24.5%. For the six month period ended June 30, 2016, approximately $1,888,000 of the Company's revenue represents interest income on the secured, commercial loans that the Company offers to small businesses compared to approximately $1,521,000 for the same period in 2015, and approximately $382,000 represents origination fees on such loans compared to approximately $303,000 for the same period in 2015. The increase in revenue represents an increase in lending operations.

Income from operations for the six month period ended June 30, 2016 was approximately $1,418,000 compared to approximately $1,021,000 for the same period ended June 30, 2015, an increase of $397,000 or 38.9%. This increase in income from operations resulted mainly from an increase in revenue, offset by an increase in interest and amortization of debt service costs resulting from the establishment and use of the Webster Credit Line, and the issuance of the senior secured notes in order to increase our ability to make loans.
Net income for the six month period ended June 30, 2016 was approximately $1,405,000 or $0.19 per share, versus net income of approximately $1,006,000 or $0.16 per share for the same period in 2015, an increase of $399,000 or 39.7%. This increase in net income is mainly due to an increase in income from operations.
           
As of June 30, 2016 total shareholders' equity was approximately $18,638,000 compared to approximately $17,743,000 as of December 31, 2015, an increase of $895,000.

On April 25, 2016, MBC Funding II Corp (“Funding”), our wholly owned subsidiary, completed a firm commitment underwritten public offering of 6% senior secured notes due April 22, 2026. We guaranteed Funding’s obligations under the Notes, which are 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, “Market activity was significantly higher in the first half of the year, and we were well positioned to take advantage of that. As we started to deploy the proceeds from the bond offering that we closed at the end of April, we recorded another record quarter both in revenue and net earnings.”

 

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

June 30, 2016
(unaudited)

December 31, 2015
(audited)

Current assets:

   

   

Cash and cash equivalents   

$       127,500

$        106,836

Cash - restricted

1,408,592

---

Short term loans receivable

23,293,500

20,199,000

         Interest receivable on loans

300,365

382,572

Other current assets

59,595

32,865

            Total current assets

25,189,552

20,721,273

 

 

 

Long term loans receivable

8,840,370

10,705,040

Property and equipment, net
Security deposit

8,492
6,816

8,771
6,816

Investment in privately held company

40,000

50,000

Deferred financing costs

80,275

164,510

                 Total assets

34,165,505

$  31,656,410

Liabilities and Stockholders’ Equity


Current liabilities:

 

 

Line of credit

$  9,469,589

$ 11,821,099

Short term loans

   ---

   1,095,620

Accounts payable and accrued expenses

89,586

99,643

Deferred origination fees

 311,411

279,682

Dividends payable

---

617,443

Due to joint venture partners

378,875

---

       Total current liabilities

10,249,461

13,913,487

Long term liabilities:

 

 

Senior secured notes (net of deferred financing costs of
 $721,466)

 

5,278,534

 

---

                 Total liabilities

15,527,995

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; 7,469,239 and 7,441,039 issued; 7,292,239 and 7,264,039 outstanding

 

  7,469

 

  7,441

Additional paid-in capital

18,607,753

18,500,524

Treasury stock, at cost – 177,000

(369,335)

(369,335)

Retained earnings (Accumulated deficit)

391,623

(395,707)

           Total stockholders’ equity

18,637,510

17,742,923

 Total liabilities and stockholders’ equity

$  34,165,505

$  31,656,410


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

 

Three Months
Ended June 30,

Six Months
Ended June 30,

 

2016

2015

2016

2015

 

Interest income from loans

 

$   973,934

 

$   764,329

 

$1,888,243

 

$1,521,079

Origination fees

          191,959

         147,625

382,240

302,636

     Total Revenue

       1,165,893

         911,954

       2,270,483

       1,823,715

 

   

   

 

 

Operating costs and expenses:

 

 

 

 

Interest and amortization of debt service costs

                                       
208,750       

                                       
        150,721

 

388,300

 

333,777

Referral fees

1,894

1,115

3,262

2,312

General and administrative expenses

                  233,545

                  214,679

  
461,385

  
466,591

     Total operating costs and expenses

 

444,189

 

366,515

          852,947 

        802,680 

Income from operations

721,704

545,439

1,417,536

1,021,035

Loss on write-down of investment in privately held company

(10,000)

(15,000)

(10,000)

(15,000)

Income before income tax expense

711,704

530,439

1,407,536       

1,006,035       

Income tax expense

(1,639)

---

(2,146)

---

Net income

     $ 710,065

     $   530,439

 $ 1,405,390       

 $ 1,006,035       

 

 

 

 

 

Basic and diluted net income per common share outstanding:

 

 

 

 

--Basic

    $     0.10

    $     0.08

    $     0.19

    $     0.16

--Diluted

    $     0.10

    $     0.08

   $      0.19

   $      0.16

 

 

 

 

 

Weighted average number of common shares outstanding

 

 

 

 

--Basic

7,279,332

6,470,905

7,271,685

6,280,278

--Diluted

7,307,710

6,507,384

7,298,185

6,314,909

 

 

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

 

 

 

Six Months
Ended June 30,

 

 

 2016

 

 2015

Cash flows from operating activities:

 

 

 

 

  Net Income

 

    $ 1,405,390

 

    $ 1,006,035

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

 

 

 

 

  Amortization of deferred financing costs

 

39,433

 

15,460

  Depreciation

 

1,778

 

3,200

  Non cash compensation expense

 

6,794

 

6,832

  Loss on write-down of investment in privately held company

 

10,000

 

15,000

  Changes in operating assets and liabilities:

 

 

 

 

       Interest receivable on loans

 

82,207

 

(99,892)

       Other current and non current assets

 

(26,730)

 

(40,987)

       Accounts payable and accrued expenses

 

(10,057)

 

(76,609)

       Deferred origination fees

 

31,729

 

(69,327)

              Net cash provided by operating activities

 

1,540,544

 

759,712

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

   Issuance of short term loans

 

(14,869,500)

 

(8,825,000)

   Collections received from loans

 

13,639,670

 

6,950,218

   Purchase of fixed assets

 

(1,499)

 

(684)

             Net cash used in investing activities

 

       (1,231,329)

 

       (1,875,466)

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

    Repayments of lines of credit, net

 

(2,351,510)

 

(706,389)

    Repayments of short-term loans, net

 

(1,095,620)

 

(1,373,845)

    Cash restricted for reduction of line of credit

 

(1,408,592)

 

---

    Amount collected payable to joint venture partners

 

378,875

 

---

    Deferred financing costs

 

---

 

(111,400)

    Proceeds from public offering, net

 

5,323,336

 

4,254,527

    Proceeds from exercise of stock options and warrants

 

100,463

 

24,368

    Dividend paid

 

(1,235,503)

 

(973,822)

              Net cash (used in) provided by financing activities

 

(288,551)

 

1,113,439

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

           20,664

 

            (2,315)

Cash and cash equivalents, beginning of year

 

106,836

 

47,676

Cash and cash equivalents, end of period

 

    $   127,500

 

    $     45,361

 

 

 

 

 

Supplemental Cash Flow Information:

 

 

 

 

Taxes paid during the period

 

$        1,948

 

$             ---

Interest paid during the period

 

$    348,443

 

$    318,317