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

         
 Long Island, N.Y. October 26, 2016 /

Manhattan Bridge Capital, Inc. (NASDAQ: LOAN) announced today that total revenue for the three month period ended September 30, 2016 was approximately $1,169,000 compared to approximately $1,032,000 for the three month period ended September 30, 2015, an increase of $137,000, or 13.3%. The increase in revenue represents an increase in lending operations. For the three month periods ended September 30, 2016 and 2015, approximately $960,000 and $871,000, respectively, of our revenues were attributable to interest income on the secured commercial loans that we offer to small businesses, and approximately $209,000 and $160,000, respectively, of our revenues were attributable to origination fees on such loans.

Net income for the three month period ended September 30, 2016 was approximately $725,000 or $0.10 per basic and diluted share, versus net income of approximately $639,000 or $0.09 per basic and diluted share for the three month period ended September 30, 2015, an increase of $86,000 or 13.5%. This increase in net income was mainly due to an increase in operating income as a result of increased lending activity.

Total revenue for the nine month period ended September 30, 2016 was approximately $3,440,000 compared to approximately $2,855,000 for the nine month period ended September 30, 2015, an increase of $585,000, or 20.5%. The increase in revenue represents an increase in lending operations. For the nine month periods ended September 30, 2016 and 2015, revenues of approximately $2,849,000 and $2,392,000, respectively, were attributable to interest income on the secured commercial loans that we offer to small businesses, and approximately $591,000 and $463,000, respectively, were attributable to origination fees on such loans.

Net income for the nine month period ended September 30, 2016 was approximately $2,130,000 or $0.29 per basic and diluted share, versus net income of approximately $1,645,000 or $0.25 per basic and diluted share for the same period in 2015, an increase of $485,000 or 29.5%. 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, 2016 total shareholders' equity was approximately $23,125,000 compared to approximately $18,638,000 as of June 30, 2016 and approximately $17,743,000 as of December 31, 2015.

On August 15, 2016, we completed another public offering of 672,269 common shares. In addition, the underwriter fully exercised its over-allotment option for an additional 100,840 common shares. The gross proceeds from the offering, including the exercise of the over-allotment option, were approximately $4.6 million and the net proceeds were approximately $4.2 million, after deducting our underwriting discounts and commissions and offering expenses.

Assaf Ran, Chairman of the Board and CEO stated, “I am pleased with the results that we have reported for the quarter.  In light of what I believe is presently a relatively risky and unstable real estate market climate, our challenge, more than ever, is to cherry-pick the safest lending opportunities.  We have successfully achieved another record quarter on both revenue and net earnings while continuing our no-default track record.”

 

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

September 30, 2016
(unaudited)

December 31, 2015
(audited)

Current assets:

   

   

Cash and cash equivalents   

$       158,519

$        106,836

Cash - restricted

919,352

---

Short term loans receivable

23,314,500

20,199,000

         Interest receivable on loans

304,338

382,572

Other current assets

49,673

32,865

            Total current assets

24,746,382

20,721,273

 

 

 

Long term loans receivable

8,217,320

10,705,040

Property and equipment, net

9,038

8,771

Security deposit

6,816

6,816

Investment in privately held company

40,000

50,000

Deferred financing costs

68,234

164,510

                 Total assets

33,087,790

$  31,656,410

Liabilities and Stockholders’ Equity


Current liabilities:

 

 

Line of credit

$  4,263,055

$ 11,821,099

Short term loans

   ---

   1,095,620

Accounts payable and accrued expenses

71,940

99,643

Deferred origination fees

 344,561

279,682

Dividends payable

---

617,443

       Total current liabilities

4,679,556

13,913,487

Long term liabilities:

 

 

Senior secured note (net of deferred financing costs of
 $716,441)

 

5,283,559

 

---

                 Total liabilities

9,963,115

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; 8,290,749 and 7,441,039 issued; 8,113,749 and 7,264,039 outstanding

 

  8,291

 

  7,441

Additional paid-in capital

23,025,856

18,500,524

Treasury stock, at cost – 177,000

(369,335)

(369,335)

Retained earnings (Accumulated deficit)

459,863

(395,707)

           Total stockholders’ equity

23,124,675

17,742,923

 Total liabilities and stockholders’ equity

$  33,087,790

$  31,656,410

 

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

 

Three Months
Ended
September 30,

Nine Months
Ended
September 30,

 

2016

2015

2016

2015

 

Interest income from loans

 

$  960,274

 

$  871,250

 

$ 2,848,516

 

$ 2,392,329

Origination fees

208,951

160,456

591,191

463,092

     Total revenue

1,169,225

1,031,706

3,439,707

2,855,421

 

 

 

 

 

Operating costs and expenses:

 

 

 

 

Interest and amortization of debt service costs

205,449

159,875

 

593,749

 

493,652

Referral fees

2,263

948

5,525

3,260

General and administrative expenses

 

236,972

 

229,873

 

698,356

 

696,464

     Total operating costs and expenses

444,684

390,696

1,297,630

1,193,376

Income from operations

724,541

641,010

2,142,077

1,662,045

Loss on write-down of investment in privately held company

---

---

(10,000)

(15,000)

Income before income tax expense

724,541

641,010

2,132,077

1,647,045

Income tax expense

---

(2,005)

 (2,146)

(2,005)

 

Net income

$  724,541

$  639,005

$  2,129,931

$  1,645,040

 

 

 

 

 

Basic and diluted net income per common share outstanding:

 

 

 

 

--Basic

$          0.10

$          0.09

    $         0.29

    $         0.25

--Diluted

$          0.10

$          0.09

    $         0.29

    $         0.25

 

 

 

 

 

Weighted average number of common shares outstanding

 

 

 

 

--Basic

    7,598,626

    7,223,043

    7,407,787

    6,597,987

--Diluted

    7,623,635

    7,263,017

    7,426,165

    6,637,755

 

 

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

     Nine Months
Ended September 30,

 

 

 2016

 

 2015

Cash flows from operating activities:

 

 

 

 

  Net Income

 

    $ 2,129,931

 

    $ 1,645,040

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

 

 

 

 

  Amortization of deferred financing costs

 

51,474

 

27,501

  Depreciation

 

2,752

 

4,926

  Non cash compensation expense

 

10,192

 

10,248

  Loss on write-down of investment in privately held company

 

10,000

 

15,000

  Changes in operating assets and liabilities:

 

 

 

 

       Interest receivable on loans

 

78,234

 

(108,815)

       Other current and non current assets

 

(16,809)

 

(27,377)

       Accounts payable and accrued expenses

 

(27,702)

 

(74,031)

       Deferred origination fees

 

   64,879

 

   4,360

              Net cash provided by operating activities

 

2,302,951

 

1,496,852

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

   Issuance of short term loans

 

(24,299,500)

 

(15,346,500)

   Collections received from loans

 

23,671,720

 

10,234,936

   Purchase of fixed assets

 

(3,019)

 

(3,474)

             Net cash used in investing activities

 

(630,799)

 

(5,115,038)

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

    (Repayments of) Proceeds from loans and line of credit, net

 

(8,653,664)

 

1,024,238

    Cash restricted for reduction of line of credit

 

(919,352)

 

---

    Proceeds from public offerings, net

 

9,539,347

 

4,237,199

    Deferred financing costs

 

---

 

(111,400)

    Proceeds from exercise of stock options and warrants

 

305,004

 

32,838

    Dividends paid

 

(1,891,804)

 

(1,551,221)

              Net cash (used in) provided by financing activities

 

(1,620,469)

 

3,631,654

 

 

 

 

 

Net increase in cash and cash equivalents

 

    51,683

 

       13,468

Cash and cash equivalents, beginning of period

 

106,836

 

47,676

Cash and cash equivalents, end of period

 

    $     158,519        

 

    $       61,144        

 

 

 

 

 

Supplemental Cash Flow Information:

 

 

 

 

Taxes paid during the period

 

$              1,948

 

$              29

Interest paid during the period

 

$          546,015       

 

$     423,650