Press Releases

Manhattan Bridge Capital, Inc. Reports First Quarter Results - Record Revenue and Net Earnings

Date: April 25, 2017Â Source: Manhattan Bridge Capital, Inc.Â Contact: Assaf Ran, CEOÂ Vanessa Kao, CFOÂ (516) 444-3400

Great Neck, NY April 25, 2017 / GLOBE Newswire --
Manhattan Bridge Capital, Inc. (NASDAQ: LOAN ) announced today that total revenue for the three month period ended March 31, 2017 was approximately $1,330,000 compared to approximately $1,105,000 for the three month period ended March 31, 2016, an increase of $225,000, or 20.4%. The increase in revenue represents an increase in lending operations. In 2017, approximately $1,106,000 of the Company’s revenue represents interest income on secured, commercial loans that it offers to small businesses compared to approximately $914,000 for the same period in 2016, and approximately $223,000 represents origination fees on such loans compared to approximately $190,000 for the same period in 2016. The loans are principally secured by collateral consisting of real estate and, generally, accompanied by personal guarantees from the principals of the businesses.

Net income for the three month period ended March 31, 2017 was approximately $791,000, or $0.10 per basic and diluted share (based on approximately 8.1 million and 8.2 million weighted-average outstanding common shares, respectively), versus approximately $695,000, or $0.10 per basic and diluted share (based on approximately 7.3 million weighted-average outstanding common shares). This increase is primarily attributable to the increase in revenue, offset by an increase in operating expenses.

As of March 31, 2017, total stockholders' equity was approximately $23,108,000 compared to approximately $22,314,000 as of December 31, 2016, an increase of $794,000.

On March 14, 2017, the Company’s Board of Directors authorized a common stock repurchase allowing the buyback of up to 100,000 shares of the company’s common stock in market or off-market transactions at prevailing prices over the next twelve months. The manner, timing and number of shares purchased will be at the Company’s discretion. As of March 31, 2017, the Company had not yet repurchased any shares.

Assaf Ran, Chairman of the Board and CEO, stated, “As we present another quarter of record high revenue and net earnings, the Company once again demonstrates strength, stability and, most importantly, responsibility. The numbers speak for themselves. As a CEO with unprecedented personal commitment and a major shareholder of the Company, I am proud of our achievements to date, and am determined to achieve continued success,” 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.

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

Assets	March 31, 2017 (unaudited)	December 31, 2016 (audited)
Current assets:
Cash and cash equivalents	$120,659	$96,299
Cash - restricted	202,061	---
Short term loans receivable	26,699,500	27,495,500
Interest receivable on loans	385,166	346,519
Other current assets	49,991	29,397
Total current assets	27,457,377	27,967,715

Long term loans receivable	8,504,820	7,259,820
Property and equipment, net Security deposit	6,922 6,816	7,980 6,816
Investment in privately held company	35,000	35,000
Deferred financing costs	44,151	56,193
Total assets	$36,055,086	$35,333,524

Liabilities and Stockholders’ Equity

Current liabilities:
Line of credit	$7,217,047	$6,482,848
Accounts payable and accrued expenses	82,614	105,541
Deferred origination fees	326,018	315,411
Dividends payable	---	813,503
Total current liabilities	7,625,679	7,717,303
Long term liabilities:
Senior secured notes (net of deferred financing costs of $678,898 and $697,669, respectively)	5,321,102	5,302,331
Total liabilities	12,946,781	13,019,634
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; 8,312,036issued; 8,135,036 outstanding	8,312	8,312
Additional paid-in capital	23,137,279	23,134,013
Treasury stock, at cost – 177,000	(369,335)	(369,335)
Retained earnings (Accumulated deficit)	332,049	(459,100)
Total stockholders’ equity	23,108,305	22,313,890
Total liabilities and stockholders’ equity	$36,055,086	$35,333,524

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

Three Months Ended March 31,
	2017	2016

Interest income from loans	$1,106,180	$914,309
Origination fees	223,425	190,281
Total revenue	1,329,605	1,104,590
Operating costs and expenses:
Interest and amortization of deferred financing costs	231,582	179,550
Referral fees	1,360	1,369
General and administrative expenses	305,514	227,839
Total operating costs and expenses	538,456	408,758

Income from operations before income tax expense	791,149	695,832
Income tax expense	---	(508)
Net income	$791,149	$695,324

Basic and diluted net income per common share outstanding:
--Basic	$0.10	$0.10
--Diluted	$0.10	$0.10

Weighted average number of common shares outstanding:
--Basic	8,135,036	7,264,039
--Diluted	8,158,316	7,292,372

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

	Three Months Ended March 31,
	2017	2016

Cash flows from operating activities:
Net income	$791,149	$695,324
Adjustments to reconcile net income to net cash provided by operating activities -
Amortization of deferred financing costs	30,813	12,041
Depreciation	1,058	862
Non cash compensation expense	3,266	3,397
Changes in operating assets and liabilities:
Interest receivable on loans	(38,647)	17,764
Other current and non current assets	(20,594)	(16,063)
Accounts payable and accrued expenses	(22,927)	28,135
Deferred origination fees	10,607	(30,424)
Net cash provided by operating activities	754,725	711,036

Cash flows from investing activities:
Issuance of short term loans	(9,556,000)	(5,913,500)
Collections received from loans	9,107,000	7,808,990
Purchase of fixed assets	---	(1,038)
Net cash (used in) provided by investing activities	(449,000)	1,894,452

Cash flows from financing activities:
Proceeds from (repayment of) line of credit	734,199	(1,170,601)
Cash restricted for reduction of line of credit	(202,061)	(464,889)
Repayment of short-term loan	---	(235,000)
Deferred financing costs	---	(163,112)
Dividend paid	(813,503)	(617,443)
Net cash used in financing activities	(281,365)	(2,651,045)

Net increase (decrease) in cash and cash equivalents	24,360	(45,557)
Cash and cash equivalents, beginning of period	96,299	106,836
Cash and cash equivalents, end of period	$120,659	$61,279

Supplemental Cash Flow Information:
Taxes paid during the period	$---	$508
Interest paid during the period	$192,231	$176,799