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 2016
Net Income increases by 26.8 % to over $2.8 million

 

          LONG ISLAND, N.Y. March 15, 2017 / GLOBE Newswire / -- Manhattan Bridge Capital, Inc. (NASDAQ: LOAN)
Manhattan Bridge Capital, Inc. announced today that net income for the year ended December 31, 2016 was approximately $2,837,000, or $0.37 per share (based on approximately 7.6 million weighted-average outstanding common shares), versus approximately $2,238,000, or $0.33 per share (based on approximately 6.8 million weighted-average outstanding common shares) for the year ended December 31, 2015. 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, 2016 was approximately $4,649,000 compared to approximately $4,001,000 for the year ended December 31, 2015, an increase of $648,000 or 16.2%. The increase in revenue represents an increase in lending operations. In 2016, approximately $3,845,000 of the Company’s revenue represents interest income on secured, commercial loans that the Company offers to small businesses compared to approximately $3,356,000 in 2015, and approximately $803,000 represents origination fees on such loans compared to approximately $645,000 in 2015.

Total operating costs and expenses for the year ended December 31, 2016 were approximately $1,794,000 compared to approximately $1,733,000 for the year ended December 31, 2015, an increase of $61,000, or 4%. The increase in operating costs and expenses is primarily attributable to an increase in interest and amortization of deferred financing costs resulting from the issuance of senior secured notes by the Company’s wholly-owned subsidiary, MBC Funding II Corp.

Assaf Ran, Chairman of the Board and CEO, stated, “2016 was a year of action and achievement of challenges. We completed a 6% 10-year bond offering through our wholly owned subsidiary, MBC Funding II Corp., executed an equity offering of our common stock at $5.95 per share, and redeployed an unprecedented amount of approximately $33 million of returned loans. It was also another year of setting revenue and net earnings records while maintaining our NO DEFAULTS standard. As we look forward to continued success in 2017, we commit to disciplined underwriting in order to prepare for a possible slowing economy.”

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 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 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 accompanying information contained in this press release, including the information set forth under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016 filed with the Securities and Exchange Commission, identifies 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 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, 2016 AND 2015

 

Assets

2016

2015

Current assets:

   

   

Cash and cash equivalents   

$        96,299

$       106,836

Short term loans receivable

27,495,500

20,199,000

         Interest receivable on loans

346,519

382,572

Other current assets

29,397

32,865

            Total current assets

27,967,715

20,721,273

 

 

 

Long term loans receivable

7,259,820

10,705,040

Property and equipment, net
Security deposit

7,980
6,816

8,771
6,816

Investment in privately held company

35,000

50,000

Deferred financing costs

56,193

164,510

                
            Total assets

 

$  35,333,524

 

$  31,656,410

Liabilities and Stockholders’ Equity


Current liabilities:

 

 

Line of credit

$    6,482,848

$  11,821,099

Short term loans

   ---

   1,095,620

Accounts payable and accrued expenses

105,541

99,643

Deferred origination fees

315,411

279,682

Dividends payable

813,503

617,443

       Total current liabilities

7,717,303

13,913,487

Long term liabilities:

 

 

Senior secured notes (net of deferred financing costs of
 $697,669)

 

5,302,331

 

---

                 Total liabilities

13,019,634

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; 8,312,036 and 7,441,039 issued; 8,135,036 and 7,264,039 outstanding

 

  8,312

 

  7,441

Additional paid-in capital

23,134,013

18,500,524

Treasury stock, at cost – 177,000

(369,335)

(369,335)

Accumulated deficit

(459,100)

(395,707)

           Total stockholders’ equity

22,313,890

17,742,923

             
 Total liabilities and stockholders’ equity

 

$  35,333,524

 

$  31,656,410

 

 

 

 

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015

 

              2016

 

              2015

Interest income from loans

$ 3,845,091

 

$ 3,355,920

Origination fees

803,469

 

644,706

Total Revenue

4,648,560

 

4,000,626

Operating costs and expenses:

 

 

 

Interest and amortization of deferred financing costs

780,119

 

691,392

Referral fees

8,682

 

2,356

General and administrative expenses

1,005,653

 

1,038,849

     Total operating costs and expenses

1,794,454

 

1,732,597

 

 

 

 

Income from operations

2,854,106

 

2,268,029

 

 

 

 

Impairment loss on property and equipment

---

 

(13,863)

Loss on write-down of investment in privately held company

 

(15,000)

 

 

(15,000)

     Total other loss

(15,000)

 

(28,863)

 

 

 

 

Income before income tax expense

2,839,106

 

2,239,166

Income tax expense

    (2,146)

 

    (1,595)

Net income

    $ 2,836,960

 

    $ 2,237,571

 

 

 

 

Basic and diluted net income per common share outstanding:

 

 

 

--Basic

$0.37

 

$0.33

--Diluted

$0.37

 

$0.33

 

 

 

 

Weighted average number of common shares outstanding

 

 

 

--Basic

7,590,114

 

6,759,219

--Diluted

7,608,201

 

6,786,610

                                  

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015

 

Common Stock

Additional Paid-in

Capital

Treasury Stock

(Accumulated Deficit) / Retained Earnings

Totals

 

 

 

 

 

 

 

Shares

Amount

 

Shares

Cost

 

 

Balance, January 1, 2015

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

Non cash compensation

 

 

13,589

 

 

 

13,589

Exercise of warrants

97,888

98

409,687

 

 

 

409,785

Public offerings

773,109

773

4,210,213

 

 

 

4,210,986

Dividends paid

 

 

 

 

 

(2,086,850)

(2,086,850)

Dividends declared and payable

 

 

 

 

 

(813,503)

(813,503)

Net income for the year ended December 31, 206

 

 

 

 

 

2,836,960

2,836,960

Balance, December 31, 2016

8,312,036

$8,312

$23,134,013

177,000

$(369,335)

$(459,100)

 $  22,313,890

 

MANHATTAN BRIDGE CAPITAL, INC.  AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015

 

2016

 

2015

Cash flows from operating activities:
   Net income

 

$    2,836,960

 

 

$    2,237,571

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

 

 

 

      Amortization of deferred financing costs

101,351

 

39,542

      Depreciation

3,810

 

5,714

      Non cash compensation expense

13,589

 

13,664

      Impairment loss on property and equipment

---

 

13,863

Loss on write-down of investment in privately held company

  15,000

 

  15,000

   Changes in operating assets and liabilities

 

 

 

       Interest receivable on loans

36,053

 

(168,806)

       Other current and non current assets

3,468

 

(5,871)

       Accounts payable and accrued expenses

5,898

 

(63,979)

       Deferred origination fees

35,729

 

34,906

              Net cash provided by operating activities

3,051,858

 

2,121,604

 

 

 

 

Cash flows from investing activities:

 

 

 

Issuance of short term loans

  (36,657,000)

 

  (21,609,000)

Collections received from loans

  32,805,720

 

  14,737,436

Purchase of fixed assets

    (3,019)

 

    (9,260)

              Net cash used in investing activities

(3,854,299)

 

(6,880,824)

 

Cash flows from financing activities:

 

 

 

       (Repayments of) proceeds from lines of credit, net

(5,338,251)

 

4,121,099

       Repayments of loans, net

(1,095,620)

 

(1,373,845)

       Proceeds from exercise of stock options and warrants

409,785

 

134,660

       Proceeds from public stock offering, net

4,210,986

 

4,237,198

       Proceeds from public bond offering, net

5,309,297

 

---

       Dividends paid

(2,704,293)

 

(2,129,181)

       Deferred financing costs incurred

---

 

(171,551)

             Net cash provided by financing activities

791,904

 

4,818,380

 

 

 

 

Net (decrease) increase in cash and cash equivalents

(10,537)

 

59,160

Cash and cash equivalents, beginning of year

106,836

 

47,676

Cash and cash equivalents, end of year

$      96,299

 

$      106,836

 

 

 

 

 

 

 

 

Supplemental Cash Flow Information:

 

 

 

Taxes paid during the year

    $       1 ,948

 

$              56

Interest paid during the year

$     691,581

 

$     596,187

 

 

 

 

Supplement Information – Noncash Information: 
Dividend declared and payable

 

$    813,503

 

 

$    617,443