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 Results for 2014
Revenue increases by 28.5% to approximately $2.9 million
Net Income increases by 149.6 % to approximately $1.455 million

                                   

          LONG ISLAND, N.Y. March 23, 2015 / GLOBE Newswire / -- Manhattan Bridge Capital, Inc. (NASDAQ: LOAN)
Manhattan Bridge Capital, Inc. announced today that net income for the year ended December 31, 2014 was $0.29 per share or approximately $1,455,000, versus $0.14 per share, or approximately $583,000 for the year ended December 31, 2013. This increase in net income was mainly due to an increase in operating income as a result of increased lending activity and minimal income tax expense for 2014 as a result of the Company’s intention to elect REIT status for 2014.  

Total revenue for the year ended December 31, 2014 was approximately $2,904,000 compared to approximately $2,260,000 for the year ended December 31, 2013, an increase of $644,000 or 28.5%. The increase in revenue represents an increase in lending operations. In 2014, approximately $2,401,000 of the Company’s revenue represents interest income on secured, commercial loans that the Company offers to small businesses compared to approximately $1,858,000 in 2013, and approximately $503,000 represents origination fees on such loans compared to approximately $402,000 in 2013.

Total operating costs and expenses for the year ended December 31, 2014 were approximately $1,443,000 compared to approximately $1,282,000 for the year ended December 31, 2013, an increase of $161,000 or 12.6%. This increase in operating costs and expenses is primarily attributable to an increase in interest and amortization of debt service costs of approximately $121,000, which is primarily attributable to the Company’s use of a line of credit in order to increase its ability to make loans.

As of December 31, 2014 total shareholders' equity was approximately $13,866,000 compared to approximately $8,893,000 as of December 31, 2013, an increase of $4,973,000.

In July 2014, we completed a public offering in which we raised net proceeds of approximately $4.3 million. As a result of the offering, we satisfy all of the requirements to be taxed as a REIT and intend to elect REIT status beginning with 2014.

In February 2015, we obtained a three-year $14 million revolving line of credit with Webster Business Credit Corporation, to replace our $7.7 million credit facility with Sterling National Bank.
.

Assaf Ran, Chairman of the Board and CEO, stated, “2014 was a year of major milestones for the Company. Not only did we continue our organic growth, but we also increased our line of credit, completed a stock offering and met the requirements to qualify the Company as a REIT. Due to these achievements, the Company paid $0.07 per share as cash dividends for the second and the third quarters, and $0.08 per share for the last quarter of 2014 to its shareholders.”    

“Due to our disciplined underwriting procedures, we have gone through one more year without a default or delinquency,” 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 SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31, 2014 and 2013

 

Assets

2014

2013

Current assets:

   

   

Cash and cash equivalents   

$           47,676

$    1,021,023

Short term loans receivable

19,138,426

10,697,950

         Interest receivable on loans

213,766

171,483

Other current assets

26,995

18,540

            Total current assets

19,426,863

11,908,996

 

 

 

Investment in real estate

---

146,821

Long term loans receivable

4,894,050

3,997,000

Property and equipment, net
Security deposit

19,088
6,816

---
6,637

Investment in privately held company

65,000

65,000

Deferred financing costs

32,500

---

                
            Total assets

 

$  24,444,317

 

$  16,124,454

Liabilities and Stockholders’ Equity


Current liabilities:

 

 

Short term loans

$   2,469,465

$   1,319,465

Line of credit

7,700,000

5,350,000

Accounts payable and accrued expenses

163,622

57,066

Deferred origination fees

244,776

132,017

Income taxes payable

---

373,219

                 Total liabilities, all current

10,577,863

7,231,767

             
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; 6,260,689 and 4,433,190 issued; 6,083,689 and 4,256,190 outstanding

 

  6,260

 

  4,433

Additional paid-in capital

14,116,183

9,745,249

Treasury stock, at cost – 177,000

(369,335)

(369,335)

Retained earnings (Accumulated deficit)

113,346

(487,660)

           Total stockholders’ equity

13,866,454

8,892,687

             
 Total liabilities and stockholders’ equity

 

$  24,444,317

 

$  16,124,454

 


 

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED December 31, 2014 and 2013

 

               2014

 

               2013

Interest income from loans

$ 2,401,150

 

$ 1,858,033

Origination fees

502,515

 

401,514

Total Revenue

2,903,665

 

2,259,547

Operating costs and expenses:

 

 

 

Interest and amortization of debt service costs

563,368

 

442,661

Referral fees

2,244

 

1,679

General and administrative expenses

876,906

 

837,788

     Total operating costs and expenses

1,442,518

 

1,282,128

 

 

 

 

Income from operations

1,461,147

 

977,419

 

 

 

 

Other income

21,197

 

27,548

Loss on write-down of investment in privately held company

 

---

 

 

(35,000)

     Total other income (loss), net

21,197

 

(7,452)

 

 

 

 

Income before income tax expense

1,482,344

 

969,967

Income tax expense

    (27,839)

 

    (387,000)

Net income

    $ 1,454,505

 

    $   582,967

 

 

 

 

Basic and diluted net income per common share outstanding:

 

 

 

--Basic

$0.29

 

$0.14

--Diluted

$0.29

 

$0.14

Weighted average number of common shares outstanding

 

 

 

--Basic

5,028,645

 

4,269,169

--Diluted

5,058,421

 

4,289,818

                                  
          
 


MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
FOR THE YEARS ENDED December 31, 2014 and 2013

 

Common Stock

Additional Paid-in
Capital

Treasury Stock

Accumulated Deficit / Retained Earnings

Totals

 

 

 

 

 

 

 

Shares

Amount

 

Shares

Cost

 

 

Balance, January 1, 2013

4,405,190

$4,405

$9,687,159

107,131

$(269,972)

$(942,607)

$8,478,985

Non cash compensation

 

 

35,578

 

 

 

     35,578

Exercise of stock options

     28,000

      28

22,512

 

 

 

      22,540

Purchase of treasury shares

 

 

 

69,869

(99,363)

 

      (99,363)

Dividends paid

 

 

 

 

 

(128,020)

     (128,020)

Net income for the year ended December 31, 2013

 

 

 

 

 

 

          582,967

 

      582,967

Balance, December 31, 2013

4,433,190

4,433

9,745,249

177,000

(369,335)

(487,660)

 8,892,687

Non cash compensation

 

 

       28,767

 

 

 

        28,767

Exercise of stock options

     66,887

      67

       55,163

 

 

 

        55,230

Exercise of warrants

       6,226

       6

               (6)

 

 

 

                0

Public offering

1,754,386

1,754

  4,287,010

 

 

 

    4,288,764

Dividends paid

 

 

 

 

 

         (853,499)

       (853,499)

Net income for the year ended December 31, 2014

 

 

 

 

 

        1,454,505

     1,454,505

Balance, December 31, 2014

6,260,689

$6,260

$14,116,183

177,000

$(369,335)

$113,346

   $13,866,454

           


 

MANHATTAN BRIDGE CAPITAL, INC.  AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED December 31, 2014 and 2013

 

2014

 

2013

Cash flows from operating activities:
   Net income

 

$    1,454,505

 

 

$    582,967

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

 

 

 

      Amortization of deferred financing costs

---

 

41,735

      Non cash compensation expense

28,767

 

35,578

Loss on write-down of investment in privately held company

  ---

 

  35,000

   Changes in operating assets and liabilities

 

 

 

       Interest receivable on loans

(42,283)

 

(11,141)

       Other current and non current assets

(8,634)

 

217

       Accounts payable and accrued expenses

106,556

 

(13,337)

       Deferred origination fees

112,758

 

9,775

       Income taxes payable

(373,219)

 

104,963

              Net cash provided by operating activities

1,278,450

 

785,757

 

 

 

 

Cash flows from investing activities:

 

 

 

Issuance of short term loans

  (22,585,990)

 

(15,159,450)

Collections received from loans

  13,248,464

 

  14,088,866

Proceeds from exercise of option

146,821

 

---

Purchase of fixed assets

    (19,088)

 

  ---

              Net cash used in investing activities

(9,209,793)

 

(1,070,584)

 

Cash flows from financing activities:

 

 

 

       Proceeds from loans and line of credit, net

3,500,000

 

1,770,000

       Purchase of treasury shares

---

 

(99,363)

       Repayment of senior secured notes

---

 

(500,000)

       Proceeds from exercise of stock options

55,230

 

22,540

       Proceeds from public offering, net

4,288,765

 

---

       Dividends paid

(853,499)

 

(128,020)

       Deferred financing costs incurred

(32,500)

 

---

             Net cash provided by financing activities

6,957,996

 

1,065,157

 

 

 

 

Net (decrease) increase in cash and cash equivalents

(973,347)

 

780,330

 

 

 

 

Cash and cash equivalents, beginning of year

1,021,023

 

240,693

 

 

 

 

Cash and cash equivalents, end of year

$      47,676

 

$ 1,021,023

 

 

 

 

Supplemental Cash Flow Information:

 

 

 

Taxes paid during the year

$    416,083

 

$    283,084

Interest paid during the year

$    563,368

 

$    400,925