Great Neck, NY July 26, 2019 / GLOBE Newswire -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that its total revenue for the three months ended June 30, 2019 was approximately $1,779,000 compared to approximately $1,668,000  for the three months ended June 30, 2018, an increase of $111,000, or 6.7%. For the three months ended June 30, 2019, approximately $1,487,000 of the Company's revenue represents interest income on the secured, commercial loans that the Company offers to small businesses compared to approximately $1,423,000 for the same period in 2018, and approximately $292,000 represents origination fees on such loans compared to approximately $244,000 for the same period in 2018. The increase in revenue represents an increase in lending operations.

 

Net income for the three months ended June 30, 2019 was approximately $1,084,000, or $0.11 per basic and diluted share (based on approximately 9.7 million weighted-average outstanding common shares), as compared to approximately $949,000, or $0.12 per basic and diluted share (based on approximately 8.1 million weighted-average outstanding common shares), for the three months ended June 30, 2018. This increase is primarily attributable to an increase in revenue, and a decrease in interest costs resulting from lower outstanding amounts under a revolving credit facility following the Company’s public offering in July 2018.

 

Total revenue for the six months ended June 30, 2019 was approximately $3,567,000 compared to approximately $3,332,000 for the six months ended June 30, 2018, an increase of $235,000, or 7.1%. For the six months ended June 30, 2019, approximately $2,990,000 of the Company's revenue represents interest income on the secured, commercial loans that the Company offers to small businesses compared to approximately $2,853,000 for the same period in 2018, and approximately $577,000 represents origination fees on such loans compared to approximately $480,000 for the same period in 2018. The increase in revenue represents an increase in lending operations.

 

Net income for the six months ended June 30, 2019 was approximately $2,205,000, or $0.23 per basic and diluted share (based on approximately 9.7 million weighted-average outstanding common shares), as compared to approximately $1,930,000, or $0.24 per basic and diluted share (based on approximately 8.1 million weighted-average outstanding common shares), for the six months ended June 30, 2018. This increase is primarily attributable to an increase in revenue, and a decrease in interest costs resulting from lower outstanding amounts under a revolving credit facility following the Company’s public offering in July 2018.

           

As of June 30, 2019, total stockholders' equity was approximately $33,125,000.

 

Assaf Ran, Chairman of the Board and CEO stated, “The real estate market in the geographical areas in which we operate is slow and uncertain. In addition, we still face a high level of competition. Therefore, the interest rate we are able to charge has dropped by approximately 2%. These factors generate a challenging working environment for us, but we still managed to increase net earnings and maintain our default-free track record. In addition, we recently announced a geographical expansion to New Jersey, Connecticut and Florida. Rest assured that our high loan quality standards will not be compromised.”

 

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, including New Jersey and Connecticut, and in Florida. We operate the web site: https://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 discuss our belief that our high loan quality standards will not be compromised, 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 due diligence may not uncover all of a borrower’s liabilities or other risks to its business; (vii) borrower concentration could lead to significant losses; and (viii) we may choose to make distributions in our own stock, in which case stockholders 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, 2018 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 SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

 

Assets	June 30, 2019         (unaudited)	December 31, 2018          (audited)
Loans receivable	$  55,911,967	$  54,836,127
Interest receivable on loans	672,900	596,777
Cash	127,169	203,682
Cash           - restricted	---	151,375
Other assets	127,559	73,131
Operating lease right-of-use asset, net	113,724	---
Deferred financing costs	32,339	42,040
Total assets	$  56,985,658	$  55,903,132

 

Liabilities and Stockholders’ Equity

Liabilities:
Line of credit	$  17,737,803	$  16,622,147
Senior secured notes (net of deferred financing costs of $509,956 and $547,499, respectively)	5,490,044	5,452,501
Deferred origination fees	396,443	404,676
Accounts payable and accrued expenses	122,789	183,716
Operating lease liability	113,724	---
Dividends payable	---	1,158,717
Total liabilities	23,860,803	23,821,757
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 shares authorized; 9,881,191 and 9,874,191 issued, respectively; 9,657,977 and 9,655,977 outstanding, respectively	9,881	9,874
Additional paid-in capital	33,137,501	33,110,536
Treasury stock, at cost – 223,214 and 218,214 shares	(619,688)	(590,234)
Retained earnings (accumulated deficit)	597,161	(448,801)
Total stockholders’ equity	33,124,855	32,081,375
Total liabilities and stockholders’ equity	$  56,985,658	$  55,903,132

 

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

 

	Three Months Ended June 30,		Six Months Ended June 30,
	2019	2018	2019	2018
Interest income from loans	$   1,487,117	$   1,423,352	$ 2,990,202	$ 2,852,600
Origination fees	292,253	244,348	577,227	479,574
Total revenue	1,779,370	1,667,700	3,567,429	3,332,174
Operating costs and expenses:
Interest and amortization of debt service costs	387,511	413,074	766,393	810,778
Referral fees	625	83	2,708	416
General and administrative expenses	309,619	305,155	598,356	590,674
Total operating costs and expenses	697,755	718,312	1,367,457	1,401,868
Income from operations	1,081,615	949,388	2,199,972	1,930,306
Other income	3,000	---	6,000	---
Income before income tax expense	1,084,615	949,388	2,205,972	1,930,306
Income tax expense	(572)	---	(572)	---
Net income	$ 1,084,043	$ 949,388	$ 2,205,400	$ 1,930,306
Basic and diluted net income per common       share outstanding:
--Basic	$     0.11	$     0.12	$     0.23	$     0.24
--Diluted	$     0.11	$     0.12	$      0.23	$      0.24
Weighted average number of common shares outstanding:
--Basic	9,659,317	8,111,276	9,657,557	8,110,112
--Diluted	9,661,620	8,119,984	9,659,897	8,117,817

 

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY

 

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(unaudited)

FOR THE THREE MONTHS ENDED JUNE 30, 2019

	Common Stock		Additional       Paid       in Capital	Treasury Stock		Retained          Earnings	Totals
	Shares	Amount		Shares	Cost
Balance, April 1, 2019	9,881,191	$9,881	$33,134,235	219,214	$(595,878)	$672,556	$  33,220,794
Purchase of treasury shares				4,000	(23,810)		(23,810)
Non cash compensation			3,266				3,266
Dividends paid						(1,159,438)	(1,159,438)
Net income						1,084,043	1,084,043
Balance, June 30, 2019	9,881,191	$9,881	$33,137,501	223,214	$(619,688)	$  597,161	$  33,124,855

 

 

FOR THE THREE MONTHS ENDED JUNE 30, 2018

	Common Stock		Additional            Paid          in Capital	Treasury Stock		Retained                Earnings	Totals
	Shares	Amount		Shares	Cost
Balance, April 1, 2018	8,319,036	$8,319	$23,170,777	210,102	$(541,491)	$593,252	$   23,230,857
Exercise of warrants	8,881	9	48,726				48,735
Non cash compensation			3,266				3,266
Dividends paid						(973,072)	(973,072)
Net income						949,388	949,388
Balance, June 30, 2018	8,327,917	$8,328	$23,222,769	210,102	$(541,491)	$  569,568	$  23,259,174

 

    FOR THE SIX MONTHS ENDED JUNE 30, 2019    

	Common Stock		Additional Paid  in Capital	Treasury Stock		Accumulated            Deficit           (Retained           Earnings)	Totals
	Shares	Amount		Shares	Cost
Balance, January 1, 2019	9,874,191	$9,874	$33,110,536	218,214	$(590,234)	$(448,801)	$  32,081,375
Exercise of options	7,000	7	20,433				20,440
Purchase of treasury shares				5,000	(29,454)		(29,454)
Non cash compensation			6,532				6,532
Dividends paid						(1,159,438)	(1,159,438)
Net income						2,205,400	2,205,400
Balance, June 30, 2019	9,881,191	$9,881	$33,137,501	223,214	$(619,688)	$  597,161	$  33,124,855

 

 

FOR THE SIX MONTHS ENDED JUNE 30, 2018

	Common Stock		Additional Paid  in Capital	Treasury Stock		Accumulated               Deficit               (Retained                Earnings)	Totals
	Shares	Amount		Shares	Cost
Balance, January 1, 2018	8,319,036	$8,319	$23,167,511	210,102	$(541,491)	$(387,666)	$   22,246,673
Exercise of warrants	8,881	9	48,726				48,735
Non cash compensation			6,532				6,532
Dividends paid						(973,072)	(973,072)
Net income						1,930,306	1,930,306
Balance, June 30, 2018	8,327,917	$8,328	$23,222,769	210,102	$(541,491)	$  569,568	$  23,259,174

 

 

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

 

 

	Six Months Ended June 30,
	2019	2018
Cash flows from operating activities:
Net income	$ 2,205,400	$ 1,930,306
Adjustments to reconcile net income to net cash provided by        operating activities -
Amortization of deferred financing costs	47,244	51,451
Depreciation	815	2,274
Non cash compensation expense	6,532	6,532
Changes in operating assets and liabilities:
Interest receivable on loans	(76,123)	(35,760)
Other assets	(55,243)	(76,097)
Accounts payable and accrued expenses	(60,927)	19,952
Deferred origination fees	(8,233)	130,105
Net cash provided by operating activities	2,059,465	2,028,763
Cash flows from investing activities:
Issuance of short term loans	(24,697,965)	(27,792,500)
Collections received from loans	23,622,125	21,070,000
Net cash used in investing activities	(1,075,840)	(6,722,500)
Cash flows from financing activities:
Proceeds from line of credit, net	1,115,656	3,085,406
Proceeds from short-term loans, net	---	3,430,000
Dividends paid	(2,318,155)	(1,865,055)
Purchase of treasury shares	(29,454)	---
Capital raising costs	---	(12,300)
Proceeds from exercise of stock options and warrants	20,440	48,735
Net cash (used in) provided by financing activities	(1,211,513)	4,686,786
Net decrease in cash and restricted cash	(227,888)	(6,951)
Cash and restricted cash, beginning of period	355,057	136,441
Cash and restricted cash, end of period	$   127,169	$   129,490
Supplemental Cash Flow Information:
Taxes paid during the period	$           572	$             ---
Interest paid during the period	$    733,160	$    733,215
Non-cash Investing Activities:
Operating lease right-of-use asset	$     113,724	$             ---
Operating lease liability	$     113,724	$             ---