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Tel: 516.444.3400
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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
36.1% Increase in Revenues and 32.6% Increase in Net Income

Long Island, N.Y. October 19, 2017 /

Manhattan Bridge Capital, Inc. (NASDAQ: LOAN) announced today that total revenue for the three month period ended September 30, 2017 was approximately $1,591,000 compared to approximately $1,169,000 for the three month period ended September 30, 2016, an increase of $422,000, or 36.1%. The increase in revenue represents an increase in lending operations. For the three month periods ended September 30, 2017 and 2016, approximately $1,352,000 and $960,000, respectively, of our revenues were attributable to interest income on the secured commercial loans that we offer to small businesses, and approximately $240,000 and $209,000, respectively, of the Company’s revenues were attributable to origination fees on such loans.

Net income for the three month period ended September 30, 2017 was approximately $961,000 or $0.12 per basic and diluted share (based on approximately 8.1 million weighted-average outstanding common shares), versus net income of approximately $725,000 or $0.10 per basic and diluted share (based on approximately 7.6 million weighted-average outstanding common shares) for the three month period ended September 30, 2016, an increase of $236,000, or 32.6%. 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, 2017 was approximately $4,322,000 compared to approximately $3,440,000 for the nine month period ended September 30, 2016, an increase of $882,000, or 25.6%. The increase in revenue represents an increase in lending operations. For the nine month periods ended September 30, 2017 and 2016, revenues of approximately $3,647,000 and $2,849,000, respectively, were attributable to interest income on the secured commercial loans that we offer to small businesses, and approximately $675,000 and $591,000, respectively, were attributable to origination fees on such loans.

Net income for the nine month period ended September 30, 2017 was approximately $2,592,000 or $0.32 per basic and diluted share (based on approximately 8.1 million weighted-average outstanding common shares), versus net income of approximately $2,130,000 or $0.29 per basic and diluted share (based on approximately 7.4 million weighted-average outstanding common shares) for the same period in 2016, an increase of $462,000, or 21.7%. 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, 2017, total shareholders' equity was approximately $23,120,000 compared to approximately $22,314,000 as of December 31, 2016, an increase of $806,000.

On August 8, 2017, the Company amended and restated certain terms of its existing credit line agreement with Webster Business Credit Corporation and Flushing Bank to further increase the credit line from $15 million to $20 million.  

Assaf Ran, Chairman of the Board and CEO stated, “The numbers speak for themselves; we believe that we offer our shareholders not only generous quarterly dividends but also steady and responsible growth. The increase of the bank line of credit from $14 million to $20 million during the third quarter, provided the necessary funds for this quarter’s performance.”

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

Forward Looking Statements

This press release and the statements of our representatives related thereto contain or may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the generality of the foregoing, words such as “plan,” “project,” “potential,” “seek,” “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “could,” “estimate,” or “continue” are intended to identify forward-looking statements. For example, when we state that we offer generous dividends and sturdy growth we are using forward-looking statements. Readers are cautioned that certain important factors may affect the Company’s actual results and could cause such results to differ materially from any forward-looking statements that may be made in this news release. 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, including but not limited to the following: (i) we have limited operating history as a Real Estate Investment Trust (“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 limited 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 risk factors contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016 filed with the Securities and Exchange Commission identify important factors that could cause such differences. These forward-looking statements speak only as of the date of this press release, and we caution potential investors not to place undue reliance on such statements. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.


MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

 

      Assets

September 30, 2017
(unaudited)

 

December 31, 2016
(audited)

       Loans receivable

$  44,419,950

 

$  34,755,320

       Interest receivable on loans

508,342

 

346,519

       Cash and cash equivalents    

112,184

 

        96,299

       Deferred financing costs

60,250

 

56,193

       Investment in privately held company

15,000

 

35,000

       Other assets

58,384

 

44,193

              Total assets

$  45,174,110

 

$  35,333,524

Liabilities and Stockholders’ Equity


Liabilities:

 

 

 

Line of credit

$  16,174,495

 

$    6,482,848

 

Senior secured notes (net of deferred financing costs of $641,355 and $697,669, respectively)

 

5,358,645

 

 

5,302,331

 

Deferred origination fees

390,743

 

315,411

 

Accounts payable and accrued expenses

130,270

 

105,541

 

Dividends payable

---

 

813,503

 

                 Total liabilities

22,054,153

 

13,019,634

 

             
Commitments and contingencies

 

 

 

 

Stockholders’ equity:

 

 

 

 

Preferred shares - $.01 par value; 5,000,000 authorized; none issued

 

---

 

 

---

 

Common shares - $.001 par value; 25,000,000 authorized; 8,319,036 and 8,312,036 issued; 8,108,934 and 8,135,036 outstanding, respectively

 

8,319

 

 

 
8,312

 

Additional paid-in capital

23,164,245

 

23,134,013

 

Treasury stock, at cost – 210,102 and 177,000 shares, respectively

(541,491)

 

(369,335)

 

Retained earnings (Accumulated deficit)

488,884

 

(459,100)

 

           Total stockholders’ equity

23,119,957

 

22,313,890

 

             
 Total liabilities and stockholders’ equity

 

$  45,174,110

 

 

$  35,333,524

 

 


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

 

Three Months
Ended
September 30,

Nine Months
Ended
September 30,

 

2017

2016

2017

2016

 

Interest income from loans

 

$1,351,788

 

$  960,274

 

$ 3,646,535

 

$ 2,848,516

Origination fees

239,675

208,951

675,434

591,191

     Total revenue

1,591,463

1,169,225

4,321,969

3,439,707

 

 

 

 

 

Operating costs and expenses:

 

 

 

 

Interest and amortization of debt service costs

352,359

205,449

 

861,591

 

593,749

Referral fees

750

2,263

2,951

5,525

General and administrative expenses

 

266,534

 

236,972

 

842,520

 

698,356

     Total operating costs and expenses

619,643

444,684

1,707,062

1,297,630

Income from operations

971,820

724,541

2,614,907

2,142,077

Loss on write-down of investment in privately held company

(10,000)

---

(20,000)

(10,000)

Income before income tax expense

961,820

724,541

2,594,907

2,132,077

Income tax expense

(1,099)

---

 (2,971)

 (2,146)

 

Net income

$  960,721

$  724,541

$  2,591,936

$  2,129,931

 

 

 

 

 

Basic and diluted net income per common share outstanding:

 

 

 

 

--Basic

$          0.12

$          0.10

    $         0.32

    $         0.29

--Diluted

$          0.12

$          0.10

    $         0.32

    $         0.29

 

 

 

 

 

Weighted average number of common shares outstanding

 

 

 

 

--Basic

    8,106,499

    7,598,626

    8,120,091

    7,407,787

--Diluted

    8,117,151

    7,623,635

    8,131,400

    7,426,165

 

 

 

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

     Nine Months
Ended September 30,

 

 

 2017

 

 2016

Cash flows from operating activities:

 

 

 

 

  Net income

 

    $ 2,591,936

 

    $ 2,129,931

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

 

 

 

 

  Amortization of deferred financing costs

 

95,378

 

51,474

  Depreciation

 

3,398

 

2,752

  Non cash compensation expense

 

9,798

 

10,192

  Loss on write-down of investment in privately held company

 

20,000

 

10,000

  Changes in operating assets and liabilities:

 

 

 

 

       Interest receivable on loans

 

(161,823)

 

78,234

       Other assets

 

(15,922)

 

(16,809)

       Accounts payable and accrued expenses

 

24,730

 

(27,702)

       Deferred origination fees

 

   75,332

 

   64,879

              Net cash provided by operating activities

 

2,642,827

 

2,302,951

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

   Issuance of short term loans

 

(30,314,500)

 

(24,299,500)

   Collections received from loans

 

20,649,870

 

23,671,720

   Purchase of fixed assets

 

(1,666)

 

(3,019)

             Net cash used in investing activities

 

(9,666,296)

 

(630,799)

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

    Proceeds from (repayments of) line of credit, net

 

9,691,647

 

(7,558,044)

    Repayments of short-term loans, net

 

---

 

(1,095,620)

    Cash restricted for reduction of line of credit

 

---

 

(919,352)

    Proceeds from public offerings, net

 

---

 

9,539,347

    Deferred financing costs

 

(43,122)

 

---

    Proceeds from exercise of stock options and warrants

 

20,440

 

305,004

    Purchase of treasury shares

 

(172,156)

 

---

    Dividends paid

 

(2,457,455)

 

(1,891,804)

              Net cash provided by (used in) financing activities

 

7,039,354

 

(1,620,469)

 

 

 

 

 

Net increase in cash and cash equivalents

 

15,885

 

    51,683

Cash and cash equivalents, beginning of period

 

96,299

 

106,836

Cash and cash equivalents, end of period

 

    $     112,184        

 

    $     158,519        

 

 

 

 

 

Supplemental cash flow information:

 

 

 

 

Taxes paid during the period

 

$              2,971

 

$              1,948

Interest paid during the period

 

$          713,428       

 

$          546,015