Long Island, N.Y. October 30, 2014 / GLOBE Newswire / -- Manhattan Bridge Capital, Inc. (NASDAQ: LOAN)

 

Manhattan Bridge Capital, Inc. announced today that total revenues for the three month period ended September 30, 2014 were approximately $766,000 compared to approximately $585,000 for the three month period ended September 30, 2013, an increase of $181,000, or 30.9%. The increase in revenue represents an increase in lending operations. For the three month periods ended September 30, 2014 and 2013, approximately $632,000 and $479,000, respectively, of our revenues were attributable to interest income on the secured commercial loans that we offer to small businesses, and approximately $134,000 and $106,000, respectively, of our revenues were attributable to origination fees on such loans. 
 

Net income for the three month period ended September 30, 2014 was $0.08 per basic and diluted share (based on 5.487 million shares and 5.527 million shares, respectively), or $429,019, versus net income of $0.05 per basic and diluted share (based on 4.263 million shares and 4.288 million shares, respectively) or $193,921 for the three month period ended September 30, 2013, an increase of approximately $235,000. This increase in net income was mainly due to an increase in operating income as a result of increased lending activity and no income tax accrual for 2014 tax year as a result of the Company’s intention to elect REIT status.

 

As of September 30, 2014 total shareholders' equity was $13,883,000 compared to $9,456,000 as of June 30, 2014 and $8,893,000 as of December 31, 2013.

 

Total revenues for the nine month period ended September 30, 2014 were approximately $2,005,000 compared to approximately $1,673,000 for the nine month period ended September 30, 2013, an increase of $332,000, or 19.8%. The increase in revenue represents an increase in lending operations. For the nine month periods ended September 30, 2014 and 2013, revenues of approximately $1,657,000 and $1,371,000, respectively, were attributable to interest income on the secured commercial loans that we offer to small businesses, and approximately $348,000 and $302,000, respectively, were attributable to origination fees on such loans.

 

Net income for the nine month period ended September 30, 2014 was $0.23 per basic share and $0.22 per diluted share (based on 4.680 million shares and 4.728 million shares, respectively), or $1,058,264, versus net income of $0.12 per basic and diluted share (based on 4.274 million shares and 4.289 million shares, respectively), or $524,991 for the same period in 2013, an increase of approximately $533,000. This increase in net income was mainly due to an increase in operating income as a result of increased lending activity and no income tax accrual for 2014 tax year as a result of the Company’s intention to elect REIT status.

 

The Company completed a public offering of 1,754,386 common shares at a price to the public of $2.85 per share on July 31, 2014. As a result of the offering, the Company believes it currently satisfies all of the requirements to be taxed as a Real Estate Investment Trust and intends to elect REIT status beginning with its 2014 tax year.  As a REIT, the Company will generally not be subject to income taxes on its income, so long as it meets certain requirements, including distributing 90% of its taxable income to shareholders.  

 

Assaf Ran, Chairman of the Board and CEO stated, “Our challenge during the third quarter was to quickly deploy the proceeds of the offering without compromising our strict due diligence and underwriting practices; we have managed to accomplish that successfully.”

 

“As we entrench our position in the New York Metro area as a leading hard money lender to real estate investors – we now seek to increase our leverage responsibly," added Mr. Ran.

 

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

 

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 may not qualify as a REIT; (ii) we have no operating history as a REIT;(iii) our loan origination activities, revenues and profits are limited by available funds (iv)we operate in a highly competitive market and competition may limit our ability to originate loans with favorable interest rates; (v) our chief executive officer is critical to our business and our future success may depend on our ability to retain him; (vi) if we overestimate the yields on our loans or incorrectly value the collateral securing the loan, we may experience losses; (vii) we may be subject to “lender liability” claims; (viii) our loan portfolio is illiquid; (ix) our due diligence may not uncover all of a borrower’s liabilities or other risks to its business; (x) borrower concentration could lead to significant losses; (xi) our management has no experience managing a REIT; and (xii) 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 report, including the information set forth under “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, identifies important factors that could cause such differences.  These forward-looking statements speak only as of the date of this report, 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

 

Assets	September 30, 2014 (Unaudited)	December 31, 2013 (audited)
Current assets:
Cash and cash equivalents	$60,083	$1,021,023
Short term loans receivable	17,764,285	10,697,950
Interest receivable on loans	193,333	171,483
Other current assets	51,717	18,540
Total current assets	18,069,418	11,908,996
Investment in real estate	146,821	146,821
Long term loans receivable	5,239,050	3,997,000
Security deposit	6,816	6,637
Investment in privately held company	65,000	65,000
Total assets	$23,527,105	$16,124,454

 

Liabilities and Shareholders’ Equity

 

Current liabilities:
Short term loans	$2,319,465	$1,319,465
Line of credit	7,000,000	5,350,000
Accounts payable and accrued expenses	42,658	57,066
Deferred origination fees	281,566	132,017
Income taxes payable	---	373,219
Total liabilities, all current	9,643,689	7,231,767
Commitments
Stockholders’ equity:
Preferred shares - $.01 par value; 5,000,000 shares authorized; no shares issued	---	---
Common shares - $.001 par value; 25,000,000 authorized; 6,236,576 and 4,433,190 issued; 6,059,576 and 4,256,190 outstanding	6,236	4,433
Additional paid-in capital	14,105,240	9,745,249
Treasury stock, at cost - 177,000 shares	(369,335)	(369,335)
Retained earnings (accumulated deficit)	141,275	(487,660)
Total stockholders’ equity	13,883,416	8,892,687
Total liabilities and stockholders’ equity	$23,527,105	$16,124,454

 

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

 

Three Months Ended September 30,		Nine Months  Ended September 30,
	2014	2013	2014	2013
Interest income from loans	$631,640	$479,118	$1,657,076	$1,371,420
Origination fees	134,080	105,920	347,637	301,775
Total Revenue	765,720	585,038	2,004,713	1,673,195
Operating costs and expenses:
Interest and amortization of debt service costs	144,392	119,272	383,721	323,478
Referral fees	665	312	1,049	1,242
General and administrative expenses	202,822	172,420	554,631	550,145
Total operating costs and expenses	347,879	292,004	939,401	874,865
Income from operations	417,841	293,034	1,065,312	798,330
Other income	6,887	6,887	20,661	20,661
Income before income tax benefit (expense)	424,728	299,921	1,085,973	818,991
Income tax benefit (expense)	4,291	(106,000)	(27,709)	(294,000)
Net Income	$429,019	$193,921	$1,058,264	$524,991
Basic and diluted net income per common share outstanding:
--Basic	$0.08	$0.05	$0.23	$0.12
--Diluted	$0.08	$0.05	$0.22	$0.12
Weighted average number of common shares outstanding
--Basic	5,487,494	4,263,194	4,680,340	4,273,544
--Diluted	5,526,798	4,287,698	4,727,966	4,289,225

 

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

 

Nine Months  Ended September 30,	2014	2013
Cash flows from operating activities:
Net Income	$1,058,264	$524,991
Adjustments to reconcile net income to net cash provided by operating activities -
Amortization of deferred financing costs	---	32,636
Non cash compensation expense	17,799	22,048
Changes in operating assets and liabilities:
Interest receivable on loans	(21,850)	(12,866)
Other current and non current assets	(33,357)	(16,300)
Accounts payable and accrued expenses	(14,409)	(54,355)
Deferred origination fees	149,550	38,150
Income taxes payable	(373,219)	11,963
Net cash provided by operating activities	782,778	546,267
Cash flows from investing activities:
Issuance of short term loans	(18,827,000)	(12,020,500)
Collections received from loans	10,518,616	10,244,866
Net cash used in investing activities	(8,308,384)	(1,775,634)
Cash flows from financing activities:
Proceeds from loans and line of credit, net	2,650,000	1,220,000
Proceeds from public offering, net	4,288,765	---
Purchase of treasury shares	---	(99,363)
Proceeds from exercise of stock options	55,230	22,540
Dividends paid	(429,329)	(85,458)
Net cash provided by financing activities	6,564,666	1,057,719
Net decrease in cash and cash equivalents	(960,940)	(171,648)
Cash and cash equivalents, beginning of period	1,021,023	240,693
Cash and cash equivalents, end of period	$60,083	$69,04
Supplemental Cash Flow Information:
Taxes paid during the period	$415,928	$282,037
Interest paid during the period	$383,721	$290,840