LONG ISLAND, N.Y. March 8, 2016 / GLOBE Newswire / -- Manhattan Bridge Capital, Inc. (NASDAQ: LOAN) 
Manhattan Bridge Capital, Inc. announced today that net income for the year ended December 31, 2015 was approximately $2,238,000, or $0.33 per share, versus approximately $1,455,000, or $0.29 per share for the year ended December 31, 2014. 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, 2015 was approximately $4,001,000compared to approximately $2,904,000 for the year ended December 31, 2014, an increase of $1,097,000 or 37.8%. The increase in revenue represents an increase in lending operations. In 2015, approximately $3,356,000 of the Company’s revenue represents interest income on secured, commercial loans that the Company offers to small businesses compared to approximately $2,401,000 in 2014, and approximately $645,000 represents origination fees on such loans compared to approximately $503,000 in 2014.

 

Total operating costs and expenses for the year ended December 31, 2015 were approximately $1,733,000 compared to approximately $1,443,000 for the year ended December 31, 2014, an increase of $290,000 or 20.1%. The increase in operating costs and expenses is primarily attributable to an increase in interest and amortization of debt service costs due the Company’s establishment and use of a line of credit in order to increase its ability to make loans, and to increases in payroll-related expenses.

 

Assaf Ran, Chairman of the Board and CEO, stated, “2015 was a record year for the company. The REIT model works. We have significantly increased revenue and earnings while enhancing shareholders value and increasing cash dividends. All that was done responsibly and carefully in order to maintain our NO DEFAULTS track record.”

 

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 have limited operating history as a 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 no 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 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, 2015 and 2014

 

Assets	2015	2014
Current assets:
Cash and cash equivalents	$106,836	$47,676
Short term loans receivable	20,199,000	19,138,426
Interest receivable on loans	382,572	213,766
Other current assets	32,865	26,995
Total current assets	20,721,273	19,426,863
Long term loans receivable	10,705,040	4,894,050
Property and equipment, net Security deposit	8,771 6,816	19,088 6,816
Investment in privately held company	50,000	65,000
Deferred financing costs	164,510	32,500
Total assets	$31,656,410	$24,444,317

 

Liabilities and Stockholders’ Equity

 

Current liabilities:
Line of credit	$11,821,099	$7,700,000
Short term loans	1,095,620	2,469,465
Accounts payable and accrued expenses	99,643	163,622
Deferred origination fees	279,682	244,776
Dividends payable	617,443	---
Total liabilities, all current	13,913,487	10,577,863
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; 7,441,039 and 6,260,689 issued; 7,264,039 and 6,083,689 outstanding	7,441	6,260
Additional paid-in capital	18,500,524	14,116,183
Treasury stock, at cost – 177,000	(369,335)	(369,335)
(Accumulated deficit) Retained earnings	(395,707)	113,346
Total stockholders’ equity	17,742,923	13,866,454
Total liabilities and stockholders’ equity	$31,656,410	$24,444,317

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED December 31, 2015 and 2014

 

	2015	2014
Interest income from loans	$ 3,355,920	$ 2,401,150
Origination fees	644,706	502,515
Total Revenue	4,000,626	2,903,665
Operating costs and expenses:
Interest and amortization of debt service costs	691,392	563,368
Referral fees	2,356	2,244
General and administrative expenses	1,038,849	876,906
Total operating costs and expenses	1,732,597	1,442,518
Income from operations	2,268,029	1,461,147
Other income	---	21,197
Impairment loss on property and equipment	(13,863)	---
Loss on write-down of investment in privately held company	(15,000)	---
Total other (loss) income, net	(28,863)	21,197
Income before income tax expense	2,239,166	1,482,344
Income tax expense	(1,595)	(27,839)
Net income	$ 2,237,571	$ 1,454,505
Basic and diluted net income per common share outstanding:
--Basic	$0.33	$0.29
--Diluted	$0.33	$0.29
Weighted average number of common shares outstanding
--Basic	6,759,219	5,028,645
--Diluted	6,786,610	5,058,421

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
FOR THE YEARS ENDED December 31, 2015 and 2014

 

 

	Common Stock		Additional Paid-inCapital	Treasury Stock		(Accumulated Deficit) / Retained Earnings	Totals
	Shares	Amount		Shares	Cost
Balance, January 1, 2014	4,433,190	$4,433	$ 9,745,249	177,000	$(369,335)	$(487,660)	$ 8,892,687
Non cash compensation			28,767				28,767
Exercise of stock options	66,887	67	55,163				55,230
Exercise of warrants	6,226	6	(6)				0
Public offering	1,754,386	1,754	4,287,010				4,288,764
Dividends paid						(853,499)	(853,499)
Net income for the year ended December 31, 2014						1,454,505	1,454,505
Balance, December 31, 2014	6,260,689	6,260	14,116,183	177,000	(369,335)	113,346	13,866,454
Non cash compensation			13,664				13,664
Exercise of stock options	40,000	40	61,150				61,190
Exercise of warrants	20,350	21	73,449				73,470
Public offering	1,120,000	1,120	4,236,078				4,237,198
Dividends paid						(2,129,181)	(2,129,181)
Dividends declared and payable						(617,443)	(617,443)
Net income for the year ended December 31, 2015						2,237,571	2,237,571
Balance, December 31, 2015	7,441,039	$7,441	$18,500,524	177,000	$(369,335)	$(395,707)	$17,742,923

 

MANHATTAN BRIDGE CAPITAL, INC.  AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED December 31, 2015 and 2014

	2015	2014
Cash flows from operating activities: Net income	$2,237,571	$1,454,505
Adjustments to reconcile net income to net cash provided by operating activities -
Amortization of deferred financing costs	39,542	---
Depreciation	5,714	---
Non cash compensation expense	13,664	28,767
Impairment loss on property and equipment	13,863	---
Loss on write-down of investment in privately held company	15,000	---
Changes in operating assets and liabilities
Interest receivable on loans	(168,806)	(42,283)
Other current and non current assets	(5,871)	(8,634)
Accounts payable and accrued expenses	(63,979)	106,556
Deferred origination fees	34,906	112,758
Income taxes payable	---	(373,219)
Net cash provided by operating activities	2,121,604	1,278,450
Cash flows from investing activities:
Issuance of short term loans	(21,609,000)	(22,585,990)
Collections received from loans	14,737,436	13,248,464
Proceeds from exercise of option	---	146,821
Purchase of fixed assets	(9,260)	(19,088)
Net cash used in investing activities	(6,880,824)	(9,209,793)
Cash flows from financing activities:
Proceeds from loans and line of credit, net	2,747,254	3,500,000
Proceeds from exercise of stock options and warrants	134,660	55,230
Proceeds from public offering, net	4,237,198	4,288,765
Dividends paid	(2,129,181)	(853,499)
Deferred financing costs incurred	(171,551)	(32,500)
Net cash provided by financing activities	4,818,380	6,957,996
Net increase (decrease) in cash and cash equivalents	59,160	(973,347)
Cash and cash equivalents, beginning of year	47,676	1,021,023
Cash and cash equivalents, end of year	$106,836	$47,676
Supplemental Cash Flow Information:
Taxes paid during the year	$56	$416,083
Interest paid during the year	$596,187	$563,368
Supplement Information – Noncash Information:   Dividend declared and payable	$617,443	$---