Great Neck, N.Y. March 19, 2018 / GLOBE Newswire / -- Manhattan Bridge Capital, Inc. (NASDAQ: LOAN) announced today that net income for the year ended December 31, 2017 was approximately $3,439,000, or $0.42 per share (based on approximately 8.1 million weighted-average outstanding common shares), versus approximately $2,837,000, or $0.37 per share (based on approximately 7.6 million weighted-average outstanding common shares), for the year ended December 31, 2016, an increase of $602,000 or 21.2%. 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, 2017 was approximately $5,919,000 compared to approximately $4,649,000 for the year ended December 31, 2016, an increase of $1,270,000 or 27.3%. The increase in revenue represents an increase in lending operations. In 2017, approximately $5,016,000 of the Company’s revenue represents interest income on secured, commercial loans that the Company offers to small businesses compared to approximately $3,845,000 in 2016, and approximately $903,000 represents origination fees on such loans compared to approximately $804,000 in 2016.

 

Total operating costs and expenses for the year ended December 31, 2017 were approximately $2,457,000 compared to approximately $1,794,000 for the year ended December 31, 2016, an increase of $663,000 or 37.0%. The increase in operating costs and expenses is primarily attributable to an increase in interest and amortization of deferred financing costs resulting from the Company’s use of a line of credit and the issuance in 2016 of senior secured notes by the Company’s wholly-owned subsidiary in order to increase its ability to make loans.

 

Assaf Ran, Chairman of the Board and CEO, stated, “During the year 2017 we’ve continued to demonstrate controlled and responsible growth, while maintaining our impressive track record of no defaults. In August 2017, the Company increased its bank line of credit from $14 million to $20 million. This allowed us to further increase our loan portfolio and set new Company records for both revenue and net earnings. As a REIT, the increased earnings allowed us to increase the cash dividend we pay stockholders once again, to $.12 per share quarterly. As we look forward to continued success in 2018, we are committed 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 around 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 offer increased dividends and growth and success in 2018 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) our loan origination activities, revenues and profits are limited by available funds; (ii) we operate in a highly competitive market and competition may limit our ability to originate loans with favorable interest rates; (iii) our Chief Executive Officer is critical to our business and our future success may depend on our ability to retain him; (iv) if we overestimate the yields on our loans or incorrectly value the collateral securing the loan, we may experience losses; (v) we may be subject to “lender liability” claims; (vi) our loan portfolio is illiquid; (vii) our due diligence may not uncover all of a borrower’s liabilities or other risks to its business; (viii) borrower concentration could lead to significant losses; (ix) our management has limited experience managing a real estate investment trust; and (x) 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, 2017 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
DECEMBER 31, 2017 AND 2016

 

Assets	2017	2016
Loans receivable	$45,124,000		$34,755,320
Interest receivable on loans	535,045		346,519
Cash and cash equivalents	136,441		96,299
Deferred financing costs	45,269		56,193
Other assets	55,941		79,193
Total assets	$45,896,696		$35,333,524

 

Liabilities and Stockholders’ Equity

 

Liabilities:
Line of credit	$  16,914,594	$    6,482,848
Senior secured notes (net of deferred financing costs of $622,584 and $697,669)	5,377,416	5,302,331
Deferred origination fees	298,471	315,411
Accounts payable and accrued expenses	167,559	105,541
Dividends payable	891,983	813,503
Total liabilities	23,650,023	13,019,634
Commitments and contingencies
Stockholders’ equity:
Preferred shares - $.01 par value; 5,000,000 shares authorized;   none issued	---	---
Common shares - $.001 par value; 25,000,000 authorized;  8,319,036 and 8,312,036 issued; 8,108,934 and 8,135,036 outstanding	8,319	8,312
Additional paid-in capital	23,167,511	23,134,013
Treasury stock, at cost - 210,102 and 177,000 shares	(541,491)	(369,335)
Accumulated deficit	(387,666)	(459,100)
Total stockholders’ equity	22,246,673	22,313,890
Total liabilities and stockholders’ equity	$45,896,696	$35,333,524

 

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2017 AND 2016

 

2017	2017	2016
Interest income from loans	$5,015,987	$3,845,091
Origination fees	902,950	803,469
Total Revenue	5,918,937	4,648,560
Operating costs and expenses:
Interest and amortization of deferred financing costs	1,226,728	780,119
Referral fees	3,701	8,682
General and administrative expenses	1,227,003	1,005,653
Total operating costs and expenses	2,457,432	1,794,454
Income from operations	3,461,505	2,854,106
Loss on write-down of investment in privately held company	(20,000)	(15,000)
Income before income tax expense	3,441,505	2,839,106
Income tax expense	(2,971)	(2,146)
Net income	$3,438,534	$2,836,960
Basic and diluted net income per common share outstanding:
--Basic	$0.42	$0.37
--Diluted	$0.42	$0.37
Weighted average number of common shares outstanding
--Basic	8,117,280	7,590,114
--Diluted	8,128,685	7,608,201

 

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2017 AND 2016

 

 

Common Stock		Additional Paid-in Capital	Treasury Stock		Accumulated Deficit	Totals
	Shares	Amount		Shares	Cost
Balance, January 1, 2016	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, 2016						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
Non cash compensation			13,065				13,065
Purchase of treasury shares				33,102	(172,156)		(172,156)
Exercise of options	7,000	7	20,433				20,440
Dividends paid						(2,475,117)	(2,475,117)
Dividends declared and payable						(891,983)	(891,983)
Net income for the year ended December 31, 2017						3,438,534	3,438,534
Balance, December 31, 2017	8,319,036	$8,319	$23,167,511	210,102	$(541,491)	$(387,666)	$22,246,673

 

 

MANHATTAN BRIDGE CAPITAL, INC.  AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2017 AND 2016

 

	2017	2016
Cash flows from operating activities:    Net income	$3,438,534	$2,836,960
Adjustments to reconcile net income to net cash provided by operating activities -
Amortization of deferred financing costs	129,131	101,351
Depreciation	4,595	3,810
Non cash compensation expense	13,065	13,589
Loss on write-down of investment in privately held company	20,000	15,000
Changes in operating assets and liabilities
Interest receivable on loans	(188,526)	36,053
Other current and non current assets	323	3,468
Accounts payable and accrued expenses	62,019	5,898
Deferred origination fees	(16,940)	35,729
Net cash provided by operating activities	3,462,201	3,051,858
Cash flows from investing activities:
Issuance of short term loans	(37,871,500)	(36,657,000)
Collections received from loans	27,502,820	32,805,720
Purchase of fixed assets	(1,666)	(3,019)
Net cash used in investing activities	(10,370,346)	(3,854,299)
Cash flows from financing activities:
Proceeds from (repayments of) line of credit, net	10,431,746	(5,338,251)
Repayments of short-term loans, net	---	(1,095,620)
Proceeds from public stock offering, net	---	4,210,986
Proceeds from public bond offering, net	---	5,309,297
Dividends paid	(3,288,621)	(2,704,293)
Purchase of treasury shares	(172,156)	---
Deferred financing costs incurred	(43,122)	---
Proceeds from exercise of stock options and warrants	20,440	409,785
Net cash provided by financing activities	6,948,287	791,904
Net increase (decrease) in cash and cash equivalents	40,142	(10,537)
Cash and cash equivalents, beginning of year	96,299	106,836
Cash and cash equivalents, end of year	$136,441	$96,299
Supplemental Cash Flow Information:
Taxes paid during the year	$2,971	$1 ,948
Interest paid during the year	$1,034,097	$691,581
Supplement Information – Noncash Information:   Dividend declared and payable	$891,983	$813,503