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