LONG ISLAND, N.Y. March 23, 2015 / GLOBE Newswire / -- Manhattan Bridge Capital, Inc. (NASDAQ: LOAN) 
Manhattan Bridge Capital, Inc. announced today that net income for the year ended December 31, 2014 was $0.29 per share or approximately $1,455,000, versus $0.14 per share, or approximately $583,000 for the year ended December 31, 2013. This increase in net income was mainly due to an increase in operating income as a result of increased lending activity and minimal income tax expense for 2014 as a result of the Company’s intention to elect REIT status for 2014.  

 

Total revenue for the year ended December 31, 2014 was approximately $2,904,000 compared to approximately $2,260,000 for the year ended December 31, 2013, an increase of $644,000 or 28.5%. The increase in revenue represents an increase in lending operations. In 2014, approximately $2,401,000 of the Company’s revenue represents interest income on secured, commercial loans that the Company offers to small businesses compared to approximately $1,858,000 in 2013, and approximately $503,000 represents origination fees on such loans compared to approximately $402,000 in 2013.

 

Total operating costs and expenses for the year ended December 31, 2014 were approximately $1,443,000 compared to approximately $1,282,000 for the year ended December 31, 2013, an increase of $161,000 or 12.6%. This increase in operating costs and expenses is primarily attributable to an increase in interest and amortization of debt service costs of approximately $121,000, which is primarily attributable to the Company’s use of a line of credit in order to increase its ability to make loans.

 

As of December 31, 2014 total shareholders' equity was approximately $13,866,000 compared to approximately $8,893,000 as of December 31, 2013, an increase of $4,973,000.

 

In July 2014, we completed a public offering in which we raised net proceeds of approximately $4.3 million. As a result of the offering, we satisfy all of the requirements to be taxed as a REIT and intend to elect REIT status beginning with 2014.

 

In February 2015, we obtained a three-year $14 million revolving line of credit with Webster Business Credit Corporation, to replace our $7.7 million credit facility with Sterling National Bank.
 

Assaf Ran, Chairman of the Board and CEO, stated, “2014 was a year of major milestones for the Company. Not only did we continue our organic growth, but we also increased our line of credit, completed a stock offering and met the requirements to qualify the Company as a REIT. Due to these achievements, the Company paid $0.07 per share as cash dividends for the second and the third quarters, and $0.08 per share for the last quarter of 2014 to its shareholders.”    

 

“Due to our disciplined underwriting procedures, we have gone through one more year without a default or delinquency,” 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

 

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
December 31, 2014 and 2013

 

Assets	2014	2013
Current assets:
Cash and cash equivalents	$47,676	$1,021,023
Short term loans receivable	19,138,426	10,697,950
Interest receivable on loans	213,766	171,483
Other current assets	26,995	18,540
Total current assets	19,426,863	11,908,996
Investment in real estate	---	146,821
Long term loans receivable	4,894,050	3,997,000
Property and equipment, net Security deposit	19,088 6,816	--- 6,637
Investment in privately held company	65,000	65,000
Deferred financing costs	32,500	---
Total assets	$24,444,317	$16,124,454

 

Liabilities and Stockholders’ Equity

Current liabilities:
Short term loans	$2,469,465	$1,319,465
Line of credit	7,700,000	5,350,000
Accounts payable and accrued expenses	163,622	57,066
Deferred origination fees	244,776	132,017
Income taxes payable	---	373,219
Total liabilities, all current	10,577,863	7,231,767
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; 6,260,689 and 4,433,190 issued; 6,083,689 and 4,256,190 outstanding	6,260	4,433
Additional paid-in capital	14,116,183	9,745,249
Treasury stock, at cost – 177,000	(369,335)	(369,335)
Retained earnings (Accumulated deficit)	113,346	(487,660)
Total stockholders’ equity	13,866,454	8,892,687
Total liabilities and stockholders’ equity	$24,444,317	$16,124,454

 

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED December 31, 2014 and 2013

 

	2014	2013
Interest income from loans	$2,401,150	$1,858,033
Origination fees	502,515	401,514
Total Revenue	2,903,665	2,259,547
Operating costs and expenses:
Interest and amortization of debt service costs	563,368	442,661
Referral fees	2,244	1,679
General and administrative expenses	876,906	837,788
Total operating costs and expenses	1,442,518	1,282,128
Income from operations	1,461,147	977,419
Other income	21,197	27,548
Loss on write-down of investment in privately held company	---	(35,000)
Total other income (loss), net	21,197	(7,452)
Income before income tax expense	1,482,344	969,967
Income tax expense	(27,839)	(387,000)
Net income	$1,454,505	$582,967
Basic and diluted net income per common share outstanding:
--Basic	$0.29	$0.14
--Diluted	$0.29	$0.14
Weighted average number of common shares outstanding
--Basic	5,028,645	4,269,169
--Diluted	5,058,421	4,289,818