LONG ISLAND, N.Y. July 27, 2017 / GLOBE Newswire --

 

Manhattan Bridge Capital, Inc. (NASDAQ: LOAN) announced today that its total revenue for the three month period ended June 30, 2017 was approximately $1,401,000 compared to approximately $1,166,000 for the three month period ended June 30, 2016, an increase of $235,000, or 20.2%. For the three month period ended June 30, 2017, approximately $1,189,000 of the Company's revenue represents interest income on the secured, commercial loans that the Company offers to small businesses compared to approximately $974,000 for the same period in 2016, and approximately $212,000 represents origination fees on such loans compared to approximately $192,000 for the same period in 2016. The increase in revenue represents an increase in lending operations.

 

Net income for the three month period ended June 30, 2017 was approximately $840,000, or $0.10 per basic and diluted share (based on approximately 8.1 million weighted-average outstanding common shares), as compared to approximately $710,000, or $0.10 per basic and diluted share (based on approximately 7.3 millionweighted-average outstanding common shares) for the three month period ended June 30, 2016. This increase is primarily attributable to the increase in revenue, offset by an increase in operating expenses.

 

Total revenue for the six month period ended June 30, 2017 was approximately $2,731,000 compared to approximately $2,270,000 for the six month period ended June 30, 2016, an increase of $461,000, or 20.3%. For the six month period ended June 30, 2017, approximately $2,295,000 of the Company's revenue represents interest income on the secured, commercial loans that the Company offers to small businesses compared to approximately $1,888,000 for the same period in 2016, and approximately $436,000 represents origination fees on such loans compared to approximately $382,000 for the same period in 2016. The increase in revenue represents an increase in lending operations.

 

Net income for the six month period ended June 30, 2017 was approximately $1,631,000, or $0.20 per basic and diluted share (based on approximately 8.1 million weighted-average outstanding common shares), as compared to approximately $1,405,000, or $0.19 per basic and diluted share (based on approximately 7.3 million weighted-average outstanding common shares) for the six month period ended June 30, 2016. This increase is primarily attributable to the increase in revenue, offset by an increase in operating expenses.
           

As of June 30, 2017, total shareholders' equity was approximately $22,966,000 compared to approximately $22,314,000 as of December 31, 2016, an increase of $652,000.

 

Effective July 7, 2017, the Company amended certain terms of the existing credit line agreement with Webster Business Credit Corporation, whereby Webster increased the Company’s existing credit line from $14 million to $15 million, with an option, at the discretion of Webster, to further increase the credit line to $20 million. In addition, the credit line interest rate was reduced by 0.5%, and the term of the credit line was extended until February 28, 2022.

 

Assaf Ran, Chairman of the Board and CEO stated, “I’m pleased to present another good quarter and new record revenue and net earnings. Our goal is to continue with our responsible lending approach in order to continue to maintain a default free loan portfolio and track record. We’ve recently announced that our line of credit from our bank was increased, which we believe will allow us to keep growing the company in the future.”

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 press release and the statements of our representatives related thereto contain or may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the generality of the foregoing, words such as “plan,” “project,” “potential,” “seek,” “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “could,” “estimate,” or “continue” are intended to identify forward-looking statements. For example, when we state that we will continue to maintain a default free loan portfolio and track record and that we believe the increase in the Webster credit line will allow us to continue growing in the future we are using forward-looking statements. Readers are cautioned that certain important factors may affect the Company’s actual results and could cause such results to differ materially from any forward-looking statements that may be made in this news release. 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, 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 risk factors contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016 filed with the Securities and Exchange Commission identify 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 publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

 

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

 

Assets	June 30, 2017 (unaudited)	December 31, 2016 (audited)
Loans receivable	$41,241,820	$34,755,320
Interest receivable on loans	457,118	346,519
Cash and cash equivalents	125,030	96,299
Deferred financing costs	32,110	56,193
Investment in privately held company	25,000	35,000
Other assets	78,783	44,193
Total assets	$41,959,861	$35,333,524

 

Liabilities and Stockholders’ Equity

 

Liabilities:
Line of credit	$  13,165,999	$    6,482,848
Senior secured notes (net of deferred financing costs of $660,127 and $697,669, respectively)	5,339,873	5,302,331
Deferred origination fees	361,523	315,411
Accounts payable and accrued expenses	101,488	105,541
Other liabilities	25,000	---
Dividends payable	---	813,503
Total liabilities	18,993,883	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; 8,101,934 and 8,135,036 outstanding, respectively	8,312	8,312
Additional paid-in capital	23,140,546	23,134,013
Treasury stock, at cost – 210,102 and 177,000	(541,491)	(369,335)
Retained earnings (Accumulated deficit)	358,611	(459,100)
Total stockholders’ equity	22,965,978	22,313,890
Total liabilities and stockholders’ equity	$  41,959,861	$  35,333,524

 

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

 

Three Months Ended June 30,		Six Months  Ended June 30,
	2017	2016	2017	2016
Interest income from loans	$   1,188,567	$   973,934	$ 2,294,748	$ 1,888,243
Origination fees	212,334	191,959	435,759	382,240
Total Revenue	1,400,901	1,165,893	2,730,507	2,270,483
Operating costs and expenses:
Interest and amortization of debt service costs	277,651	208,750	509,233	388,300
Referral fees	841	1,894	2,201	3,262
General and administrative expenses	270,471	233,545	575,986	461,385
Total operating costs and expenses	548,963	444,189	1,087,420	852,947
Income from operations	851,938	721,704	1,643,087	1,417,536
Loss on write-down of investment in privately held company	(10,000)	(10,000)	(10,000)	(10,000)
Income before income tax expense	841,938	711,704	1,633,087	1,407,536
Income tax expense	(1,872)	(1,639)	(1,872)	(2,146)
Net income	$ 840,066	$ 710,065	$ 1,631,215	$ 1,405,390
Basic and diluted net income per common share outstanding:
--Basic	$     0.10	$     0.10	$     0.20	$     0.19
--Diluted	$     0.10	$     0.10	$      0.20	$      0.19
Weighted average number of common shares outstanding
--Basic	8,119,052	7,279,332	8,127,000	7,271,685
--Diluted	8,131,752	7,307,710	8,142,157	7,298,185

 

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

 

	Six Months  Ended June 30,
	2017	2016
Cash flows from operating activities:
Net Income	$1,631,215	$1,405,390
Adjustments to reconcile net income to net cash provided by    operating activities -
Amortization of deferred financing costs	61,625	39,433
Depreciation	2,186	1,778
Non cash compensation expense	6,532	6,794
Loss on write-down of investment in privately held company	10,000	10,000
Changes in operating assets and liabilities:
Interest receivable on loans	(110,599)	82,207
Other assets	(35,109)	(26,730)
Accounts payable and accrued expenses	(4,053)	(10,057)
Deferred origination fees	46,112	31,729
Other liabilities	25,000	---
Net cash provided by operating activities	1,632,909	1,540,544
Cash flows from investing activities:
Issuance of short term loans	(20,599,500)	(14,869,500)
Collections received from loans	14,113,000	13,639,670
Purchase of fixed assets	(1,666)	(1,499)
Net cash used in investing activities	(6,488,166)	(1,231,329)
Cash flows from financing activities:
Proceeds from (Repayments of) lines of credit, net	6,683,151	(2,351,510)
Dividend paid	(1,627,007)	(1,235,503)
Purchase of treasury shares	(172,156)	---
Repayments of short-term loans, net	---	(1,095,620)
Cash restricted for reduction of line of credit	---	(1,408,592)
Amount collected payable to joint venture partners	---	378,875
Proceeds from public offering, net	---	5,323,336
Proceeds from exercise of stock options and warrants	---	100,463
Net cash provided by (used in) financing activities	4,883,988	(288,551)
Net increase in cash and cash equivalents	28,731	20,664
Cash and cash equivalents, beginning of year	96,299	106,836
Cash and cash equivalents, end of period	$125,030	$127,500
Supplemental Cash Flow Information:
Taxes paid during the period	$1,872	$1,948
Interest paid during the period	$415,273	$348,443