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 2015
Revenue increases by 37.8% to approximately $4 million
Net Income increases by 53.8 % to approximately $2.2 million

 

LONG ISLAND, N.Y. March 8, 2016 / GLOBE Newswire / -- Manhattan Bridge Capital, Inc. (NASDAQ: LOAN)
Manhattan Bridge Capital, Inc. announced today that net income for the year ended December 31, 2015 was approximately $2,238,000, or $0.33 per share, versus approximately $1,455,000, or $0.29 per share for the year ended December 31, 2014. 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 year ended December 31, 2015 was approximately $4,001,000compared to approximately $2,904,000 for the year ended December 31, 2014, an increase of $1,097,000 or 37.8%. The increase in revenue represents an increase in lending operations. In 2015, approximately $3,356,000 of the Company’s revenue represents interest income on secured, commercial loans that the Company offers to small businesses compared to approximately $2,401,000 in 2014, and approximately $645,000 represents origination fees on such loans compared to approximately $503,000 in 2014.

Total operating costs and expenses for the year ended December 31, 2015 were approximately $1,733,000 compared to approximately $1,443,000 for the year ended December 31, 2014, an increase of $290,000 or 20.1%. The increase in operating costs and expenses is primarily attributable to an increase in interest and amortization of debt service costs due the Company’s establishment and use of a line of credit in order to increase its ability to make loans, and to increases in payroll-related expenses.

Assaf Ran, Chairman of the Board and CEO, stated, “2015 was a record year for the company. The REIT model works. We have significantly increased revenue and earnings while enhancing shareholders value and increasing cash dividends. All that was done responsibly and carefully in order to maintain our NO DEFAULTS 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
December 31, 2015 and 2014

 

Assets

2015

2014

Current assets:

   

   

Cash and cash equivalents   

$        106,836

$           47,676

Short term loans receivable

20,199,000

19,138,426

         Interest receivable on loans

382,572

213,766

Other current assets

32,865

26,995

            Total current assets

20,721,273

19,426,863

 

 

 

Long term loans receivable

10,705,040

4,894,050

Property and equipment, net
Security deposit

8,771
6,816

19,088
6,816

Investment in privately held company

50,000

65,000

Deferred financing costs

164,510

32,500

                
            Total assets

 

31,656,410

 

$  24,444,317

Liabilities and Stockholders’ Equity


Current liabilities:

 

 

Line of credit

$ 11,821,099

$   7,700,000

Short term loans

   1,095,620

   2,469,465

Accounts payable and accrued expenses

99,643

163,622

Deferred origination fees

279,682

244,776

Dividends payable

617,443

---

                 Total liabilities, all current

13,913,487

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; 7,441,039 and 6,260,689 issued; 7,264,039 and 6,083,689 outstanding

 

  7,441

 

  6,260

Additional paid-in capital

18,500,524

14,116,183

Treasury stock, at cost – 177,000

(369,335)

(369,335)

(Accumulated deficit) Retained earnings

(395,707)

113,346

           Total stockholders’ equity

17,742,923

13,866,454

             
 Total liabilities and stockholders’ equity

 

$  31,656,410

 

$  24,444,317

 

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED December 31, 2015 and 2014

 

              2015

 

              2014

Interest income from loans

$ 3,355,920

 

$ 2,401,150

Origination fees

644,706

 

502,515

Total Revenue

4,000,626

 

2,903,665

Operating costs and expenses:

 

 

 

Interest and amortization of debt service costs

691,392

 

563,368

Referral fees

2,356

 

2,244

General and administrative expenses

1,038,849

 

876,906

     Total operating costs and expenses

1,732,597

 

1,442,518

 

 

 

 

Income from operations

2,268,029

 

1,461,147

 

 

 

 

Other income

---

 

21,197

Impairment loss on property and equipment

(13,863)

 

---

Loss on write-down of investment in privately held company

 

(15,000)

 

 

---

     Total other (loss) income, net

(28,863)

 

21,197

 

 

 

 

Income before income tax expense

2,239,166

 

1,482,344

Income tax expense

    (1,595)

 

    (27,839)

Net income

    $ 2,237,571

 

    $ 1,454,505

 

 

 

 

Basic and diluted net income per common share outstanding:

 

 

 

--Basic

$0.33

 

$0.29

--Diluted

$0.33

 

$0.29

Weighted average number of common shares outstanding

 

 

 

--Basic

6,759,219

 

5,028,645

--Diluted

6,786,610

 

5,058,421

                                  

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
FOR THE YEARS ENDED December 31, 2015 and 2014

 

Common Stock

Additional Paid-in Capital

Treasury Stock

(Accumulated Deficit) / Retained Earnings

Totals

 

 

 

 

 

 

 

Shares

Amount

 

Shares

Cost

 

 

Balance, January 1, 2014

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

Non cash compensation

 

 

13,664

 

 

 

13,664

Exercise of stock options

40,000

40

61,150

 

 

 

61,190

Exercise of warrants

20,350

21

73,449

 

 

 

73,470

Public offering

1,120,000

1,120

4,236,078

 

 

 

4,237,198

Dividends paid

 

 

 

 

 

(2,129,181)

(2,129,181)

Dividends declared and payable

 

 

 

 

 

(617,443)

(617,443)

Net income for the year ended December 31, 2015

 

 

 

 

 

2,237,571

2,237,571

Balance, December 31, 2015

7,441,039

$7,441

$18,500,524

177,000

$(369,335)

$(395,707)

   $17,742,923

 

MANHATTAN BRIDGE CAPITAL, INC.  AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED December 31, 2015 and 2014

 

2015

 

2014

Cash flows from operating activities:
   Net income

 

$    2,237,571

 

 

$    1,454,505

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

 

 

 

      Amortization of deferred financing costs

39,542

 

---

      Depreciation

5,714

 

---

      Non cash compensation expense

13,664

 

28,767

      Impairment loss on property and equipment

13,863

 

---

Loss on write-down of investment in privately held company

  15,000

 

  ---

   Changes in operating assets and liabilities

 

 

 

       Interest receivable on loans

(168,806)

 

(42,283)

       Other current and non current assets

(5,871)

 

(8,634)

       Accounts payable and accrued expenses

(63,979)

 

106,556

       Deferred origination fees

34,906

 

112,758

       Income taxes payable

---

 

(373,219)

              Net cash provided by operating activities

2,121,604

 

1,278,450

 

 

 

 

Cash flows from investing activities:

 

 

 

Issuance of short term loans

  (21,609,000)

 

  (22,585,990)

Collections received from loans

  14,737,436

 

  13,248,464

Proceeds from exercise of option

---

 

146,821

Purchase of fixed assets

    (9,260)

 

    (19,088)

              Net cash used in investing activities

(6,880,824)

 

(9,209,793)

 

Cash flows from financing activities:

 

 

 

       Proceeds from loans and line of credit, net

2,747,254

 

3,500,000

       Proceeds from exercise of stock options and warrants

134,660

 

55,230

       Proceeds from public offering, net

4,237,198

 

4,288,765

       Dividends paid

(2,129,181)

 

(853,499)

       Deferred financing costs incurred

(171,551)

 

(32,500)

             Net cash provided by financing activities

4,818,380

 

6,957,996

 

 

 

 

Net increase (decrease) in cash and cash equivalents

59,160

 

(973,347)

 

 

 

 

Cash and cash equivalents, beginning of year

47,676

 

1,021,023

 

 

 

 

Cash and cash equivalents, end of year

$      106,836

 

$      47,676

 

 

 

 

Supplemental Cash Flow Information:

 

 

 

Taxes paid during the year

$              56

 

$    416,083

Interest paid during the year

$    596,187

 

$    563,368

 

 

 

 

Supplement Information – Noncash Information: 
Dividend declared and payable

 

$    617,443

 

 

$             ---