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 Third Quarter Results

49.0% Increase in Net Income

         
 Long Island, N.Y. October 29, 2015 / GLOBE Newswire / -- Manhattan Bridge Capital, Inc. (NASDAQ: LOAN)

Manhattan Bridge Capital, Inc. announced today that total revenues for the three month period ended September 30, 2015 were approximately $1,032,000 compared to approximately $766,000 for the three month period ended September 30, 2014, an increase of $266,000, or 34.7%. The increase in revenue represents an increase in lending operations. For the three month periods ended September 30, 2015 and 2014, approximately $871,000 and $632,000, respectively, of our revenues were attributable to interest income on the secured commercial loans that we offer to small businesses, and approximately $160,000 and $134,000, respectively, of our revenues were attributable to origination fees on such loans.

Net income for the three month period ended September 30, 2015 was approximately $639,000 or $0.09 per share, versus net income of approximately $429,000 or $0.08 per for the three month period ended September 30, 2014, an increase of $210,000 or 49.0%. This increase in net income was mainly due to an increase in operating income as a result of increased lending activity.

Total revenues for the nine month period ended September 30, 2015 were approximately $2,855,000 compared to approximately $2,005,000 for the nine month period ended September 30, 2014, an increase of $850,000, or 42.4%. The increase in revenue represents an increase in lending operations. For the nine month periods ended September 30, 2015 and 2014, revenues of approximately $2,392,000 and $1,657,000, respectively, were attributable to interest income on the secured commercial loans that we offer to small businesses, and approximately $463,000 and $348,000, respectively, were attributable to origination fees on such loans.

Net income for the nine month period ended September 30, 2015 was approximately $1,645,000 or $0.25 per basic and diluted share, versus net income of approximately $1,058,000 or $0.23 per basic share and $0.22 per diluted share for the same period in 2014, an increase of $587,000 or 55.5%. This increase in net income was mainly due to an increase in operating income as a result of increased lending activity.

As of September 30, 2015 total shareholders' equity was approximately $18,241,000 compared to approximately $18,184,000 as of June 30, 2015 and approximately 13,866,000 as of December 31, 2014.

We currently satisfy all of the requirements to be taxed as a REIT and elected to be taxed as a REIT commencing with our taxable year ended December 31, 2014. As a REIT, we are required to distribute at least 90% of our taxable income to our shareholders on an annual basis.

Assaf Ran, Chairman of the Board and CEO stated, “During the third quarter we have managed to responsibly continue our constant growth in accordance with our expectations. The numbers speak for themselves, as our plan works. The goal is to continue underwriting good loans to good borrowers while maintaining a safe equity to leverage ratio," 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

September 30, 2015
(unaudited)

December 31, 2014
(audited)

Current assets:

   

   

Cash and cash equivalents          

$        61,144

$         47,676

Short term loans receivable

15,633,990

19,138,426

        Interest receivable on loans

322,582

213,766

Other current assets

54,370

26,995

            Total current assets

16,072,086

19,426,863

 

 

 

Long term loans receivable

13,510,050

4,894,050

Property and equipment, net

17,636

19,088

Security deposit

6,816

6,816

Investment in privately held company

50,000

65,000

Deferred financing costs

116,399

32,500

                
            Total assets

 

$  29,772,987

 

$  24,444,317

Liabilities and Stockholders’ Equity


Current liabilities:

 

 

Short term loans

$    1,095,620

$    2,469,465

Line of credit

10,098,083

7,700,000

Accounts payable and accrued expenses

89,591

163,622

Deferred origination fees

249,135

244,776

                 Total liabilities, all current

11,532,429

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; 7,401,489 and 6,260,689 issued; 7,224,489 and 6,083,689 outstanding

 

7,401

 

  6,260

Additional paid-in capital

18,395,326

14,116,183

Treasury stock, at cost – 177,000

(369,335)

(369,335)

Retained earnings

207,166

113,346

           Total stockholders’ equity

18,240,558

13,866,454

             
 Total liabilities and stockholders’ equity

 

$  29,772,987

 

$  24,444,317

 


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

 

Three Months
Ended
September 30,

Nine Months
Ended
September 30,

 

2015

2014

2015

2014

 

Interest income from loans

 

$  871,250

 

$  631,640

 

$ 2,392,329

 

$ 1,657,076

Origination fees

160,456

134,080

463,092

347,637

     Total Revenue

1,031,706

765,720

2,855,421

2,004,713

 

 

 

 

 

Operating costs and expenses:

 

 

 

 

Interest and amortization of debt service costs

159,875

144,392

 

493,652

 

383,721

Referral fees

948

665

3,260

1,049

General and administrative expenses

 

229,873

 

202,822

 

696,464

 

554,631

     Total operating costs and expenses

 

390,696

 

347,879

1,193,376

939,401

Income from operations

641,010

417,841

1,662,045

1,065,312

Other income

   ---

   6,887

   ---

20,661

Loss on write-down of investment in privately held company

---

---

(15,000)

---

Income before income tax (expense) benefit

641,010

424,728

1,647,045

 1,085,973

Income tax (expense) benefit

(2,005)

4,291

(2,005)

(27,709)

 

Net Income

$  639,005

$  429,019

$  1,645,040

$  1,058,264

 

 

 

 

 

Basic and diluted net income per common share outstanding:

 

 

 

 

--Basic

$          0.09

$          0.08

    $         0.25

    $       0.23

--Diluted

$          0.09

$          0.08

    $         0.25

    $       0.22

 

 

 

 

 

Weighted average number of common shares outstanding

 

 

 

 

--Basic

    7,223,043

    5,487,494

    6,597,987

    4,680,340

--Diluted

    7,263,017

    5,526,798

    6,637,755

    4,727,966

 

 

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

     Nine Months
Ended September 30,

 

 

 2015

 

 2014

Cash flows from operating activities:

 

 

 

 

  Net Income

 

    $ 1,645,040

 

    $ 1,058,264

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

 

 

 

 

  Amortization of deferred financing costs

 

27,501

 

---

  Depreciation

 

4,926

 

---

  Non cash compensation expense

 

10,248

 

17,799

  Loss on write-down of investment in privately held company

 

15,000

 

---

  Changes in operating assets and liabilities:

 

 

 

 

       Interest receivable on loans

 

(108,815)

 

(21,850)

       Other current and non current assets

 

(27,377)

 

(33,357)

       Accounts payable and accrued expenses

 

(74,031)

 

(14,409)

       Deferred origination fees

 

   4,360

 

   149,550

       Income taxes payable

 

---

 

(373,219)

              Net cash provided by operating activities

 

1,496,852

 

782,778

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

   Issuance of short term loans

 

(15,346,500)

 

(18,827,000)

   Collections received from loans

 

10,234,936

 

10,518,616

   Purchase of fixed assets

 

(3,474)

 

---

             Net cash used in investing activities

 

(5,115,038)

 

(8,308,384)

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

    Proceeds from loans and line of credit, net

 

1,024,238

 

2,650,000

    Proceeds from public offering, net

 

4,237,199

 

4,288,765

    Deferred financing costs

 

(111,400)

 

---

    Proceeds from exercise of stock options and warrants

 

32,838

 

55,230

    Dividends paid

 

(1,551,221)

 

(429,329)

              Net cash provided by financing activities

 

3,631,654

 

6,564,666

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

    13,468

 

    (960,940)

Cash and cash equivalents, beginning of period

 

47,676

 

1,021,023

Cash and cash equivalents, end of period

 

    $       61,144        

 

    $       60,083        

 

 

 

 

 

Supplemental Cash Flow Information:

 

 

 

 

Taxes paid during the period

 

$              29

 

$     415,928

Interest paid during the period

 

$     423,650       

 

$     383,721