GREAT NECK, N.Y., Oct. 21, 2022 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that its net income for the three months ended September 30, 2022 was approximately $1,237,000, or $0.11 per basic and diluted share (based on approximately 11.5 million weighted-average outstanding common shares), as compared to approximately $1,110,000, or $0.10 per basic and diluted share (based on approximately 11.3 million weighted-average outstanding common shares), for the three months ended September 30, 2021, an increase of $127,000, or 11.4%. This increase is primarily attributable to an increase in revenue, partially offset by an increase in interest expense.
Total revenues for the three months ended September 30, 2022 were approximately $2,107,000 compared to approximately $1,627,000 for the three months ended September 30, 2021, an increase of $480,000 or 29.5%. The increase in revenue was due to an increase in lending operations. For the three months ended September 30, 2022 and 2021, approximately $1,678,000 and $1,323,000, respectively, of the Company's revenues were attributable to interest income on secured commercial loans that it offers to real estate investors, and approximately $429,000 and $304,000, respectively, of the Company's revenues were attributable to origination fees on such loans. The loans are principally secured by collateral consisting of real estate and accompanied by personal guarantees from the principals of the borrowers.
Net income for the nine months ended September 30, 2022 was approximately $4,018,000, or $0.35 per basic and diluted share (based on approximately 11.5 million weighted-average outstanding common shares), as compared to approximately $3,274,000, or $0.32 per basic and diluted share (based on approximately 10.2 million weighted-average outstanding common shares) for the nine months ended September 30, 2021, an increase of $744,000, or 22.7%. This increase is primarily attributable to an increase in revenue, partially offset by increases in interest expense and in general and administrative expenses.
Total revenues for the nine months ended September 30, 2022 were approximately $6,339,000 compared to approximately $5,070,000 for the nine months ended September 30, 2021, an increase of $1,269,000, or 25.0%. The increase in revenue was due to an increase in lending operations. For the nine months ended September 30, 2022 and 2021, revenues of approximately $4,934,000 and $4,190,000, respectively, were attributable to interest income on the secured commercial loans that the Company offers to real estate investors, and approximately $1,405,000 and $880,000, respectively, of the Company's revenues were attributable to origination fees on such loans. The loans are principally secured by collateral consisting of real estate and accompanied by personal guarantees from the principals of the borrowers.
As of September 30, 2022, total stockholders' equity was approximately $43,100,000.
Assaf Ran, Chairman of the Board and CEO, stated, "As we are adjusting our portfolio to the new environment, we have presented another quarter of strong profitability and no loan defaults. We have paid higher interest on our line of credit, but we are increasing the rates we charge our borrowers. At these times, we believe that our low equity to debt ratio is a major strength."
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 website: https://www.manhattanbridgecapital.com.
Forward Looking Statements
This press release and the statements of the Company's 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 the Company discusses its belief that during these times its low equity to debt ratio is a major strength, it is 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) an increase in interest rates may impact our profitability; (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 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 and (ix) 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. The risk factors contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and in Part II, Item 1A, of our Quarterly Reports on Form 10-Q for the quarters ended June 30, 2022 and September 30, 2022 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
| September 30, 2022 | December 31, 2021 | ||||||
| (unaudited) | (audited) | ||||||
| Assets | |||||||
| Loans receivable | $ | 72,701,582 | $ | 65,715,364 | |||
| Interest receivable on loans | 1,132,189 | 955,443 | |||||
| Cash | 109,708 | 142,546 | |||||
| Cash - restricted | 433,269 | --- | |||||
| Other assets | 94,202 | 64,745 | |||||
| Operating lease right-of-use asset, net | 275,937 | 317,080 | |||||
| Deferred financing costs, net | 19,271 | 10,539 | |||||
| Total assets | $ | 74,766,158 | $ | 67,205,717 | |||
| Liabilities and Stockholders' Equity | |||||||
| Liabilities: | |||||||
| Line of credit | $ | 23,361,607 | $ | 15,645,970 | |||
| Senior secured notes (net of deferred financing costs of $265,928 and $322,241, respectively) | 5,734,072 | 5,677,759 | |||||
| Deferred origination fees | 642,106 | 580,461 | |||||
| Accounts payable and accrued expenses | 202,059 | 154,169 | |||||
| Operating lease liability | 286,378 | 324,248 | |||||
| Dividends payable | 1,436,868 | 1,436,868 | |||||
| Total liabilities | 31,663,090 | 23,819,475 | |||||
| Commitments and contingencies | |||||||
| Stockholders' equity: | |||||||
| Preferred shares - $.01 par value per share; 5,000,000 shares authorized; none issued | --- | --- | |||||
| Common shares - $.001 par value per share; 25,000,000 shares authorized; 11,757,058 issued; 11,494,945 outstanding | 11,757 | 11,757 | |||||
| Additional paid-in capital | 45,532,544 | 45,522,746 | |||||
| Treasury shares, at cost - 262,113 shares | (798,939 | ) | (798,939 | ) | |||
| Accumulated deficit | (1,642,294 | ) | (1,349,322 | ) | |||
| Total stockholders' equity | 43,103,068 | 43,386,242 | |||||
| Total liabilities and stockholders' equity | $ | 74,766,158 | $ | 67,205,717 | |||
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||
| 2022 | 2021 | 2021 | 2022 | |||||||
| Interest income from loans | $ | 1,677,670 | $ | 1,323,085 | $ | 4,933,767 | $ | 4,189,658 | ||
| Origination fees | 429,350 | 304,297 | 1,405,076 | 880,440 | ||||||
| Total revenue | 2,107,020 | 1,627,382 | 6,338,843 | 5,070,098 | ||||||
| Operating costs and expenses: | ||||||||||
| Interest and amortization of deferred financing costs | 496,718 | 184,914 | 1,204,954 | 819,015 | ||||||
| Referral fees | 625 | 2,069 | 3,945 | 6,463 | ||||||
| General and administrative expenses | 377,436 | 335,284 | 1,125,162 | 983,867 | ||||||
| Total operating costs and expenses | 874,779 | 522,267 | 2,334,061 | 1,809,345 | ||||||
| Income from operations | 1,232,241 | 1,105,115 | 4,004,782 | 3,260,753 | ||||||
| Other income | 4,500 | 4,500 | 13,500 | 13,500 | ||||||
| Income before income tax expense | 1,236,741 | 1,109,615 | 4,018,282 | 3,274,253 | ||||||
| Income tax expense | --- | --- | (650 | ) | (647 | ) | ||||
| Net income | $ | 1,236,741 | $ | 1,109,615 | $ | 4,017,632 | $ | 3,273,606 | ||
| Basic and diluted net income per common share outstanding: | ||||||||||
| --Basic | $ | 0.11 | $ | 0.10 | $ | 0.35 | $ | 0.32 | ||
| --Diluted | $ | 0.11 | $ | 0.10 | $ | 0.35 | $ | 0.32 | ||
| Weighted average number of common shares outstanding | ||||||||||
| --Basic | 11,494,945 | 11,331,902 | 11,494,945 | 10,196,868 | ||||||
| --Diluted | 11,494,945 | 11,331,902 | 11,494,945 | 10,196,868 | ||||||
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(unaudited)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2022
| Common Shares | Additional Paid in Capital | Treasury Shares | Accumulated Deficit | Totals | |||||||||||
| Shares | Amount | Shares | Cost | ||||||||||||
| Balance, July 1, 2022 | 11,757,058 | $11,757 | $45,529,278 | 262,113 | $(798,939) | $(1,442,167) | $43,299,929 | ||||||||
| Non-cash compensation | 3,266 | 3,266 | |||||||||||||
| Dividends declared and payable | (1,436,868) | (1,436,868) | |||||||||||||
| Net income | 1,236,741 | 1,236,741 | |||||||||||||
| Balance, September 30, 2022 | 11,757,058 | $11,757 | $45,532,544 | 262,113 | $(798,939) | $(1,642,294) | $43,103,068 | ||||||||
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2021
| Common Shares | Additional Paid in Capital | Treasury Shares | Retained Earnings | Totals | |||||||||||
| Shares | Amount | Shares | Cost | ||||||||||||
| Balance, July 1, 2021 | 9,882,058 | $9,882 | $33,163,628 | 262,113 | $(798,939) | $701,948 | $33,076,519 | ||||||||
| Public offering, net | 1,875,000 | 1,875 | 12,352,585 | 12,354,460 | |||||||||||
| Non-cash compensation | 3,266 | 3,266 | |||||||||||||
| Dividends paid | (1,436,868) | (1,436,868 | ) | ||||||||||||
| Net income | 1,109,615 | 1,109,615 | |||||||||||||
| Balance, September 30, 2021 | 11,757,058 | $11,757 | $45,519,479 | 262,113 | $(798,939) | $374,695 | $45,106,992 | ||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2022
| Common Shares | Additional Paid in Capital | Treasury Shares | Accumulated Deficit | Totals | |||||||||||
| Shares | Amount | Shares | Cost | ||||||||||||
| Balance, January 1, 2022 | 11,757,058 | $11,757 | $45,522,746 | 262,113 | $(798,939) | $ (1,349,322) | $43,386,242 | ||||||||
| Non-cash compensation | 9,798 | 9,798 | |||||||||||||
| Dividends paid | (2,873,736) | (2,873,736) | |||||||||||||
| Dividends declared and payable | (1,436,868) | (1,436,868) | |||||||||||||
| Net income | 4,017,632 | 4,017,632 | |||||||||||||
| Balance, September 30, 2022 | 11,757,058 | $11,757 | $45,532,544 | 262,113 | $(798,939) | $(1,642,294) | $43,103,068 | ||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021
| Common Shares | Additional Paid in Capital | Treasury Shares | (Accumulated Deficit) Retained Earnings | Totals | |||||||||||
| Shares | Amount | Shares | Cost | ||||||||||||
| Balance, January 1, 2021 | 9,882,058 | $9,882 | $33,157,096 | 262,113 | $(798,939) | $(403,849) | $31,964,190 | ||||||||
| Public offering, net | 1,875,000 | 1,875 | 12,352,585 | 12,354,460 | |||||||||||
| Non-cash compensation | 9,798 | 9,798 | |||||||||||||
| Dividends paid | (2,495,062) | (2,495,062) | |||||||||||||
| Net income | 3,273,606 | 3,273,606 | |||||||||||||
| Balance, September 30, 2021 | 11,757,058 | $11,757 | $45,519,479 | 262,113 | $(798,939) | $374,695 | $45,106,992 | ||||||||
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
| Nine Months | |||||||||
| Ended September 30, | |||||||||
| 2022 | 2021 | ||||||||
| Cash flows from operating activities: | |||||||||
| Net income | $ | 4,017,632 | $ | 3,273,606 | |||||
| Adjustments to reconcile net income to net cash provided by | |||||||||
| operating activities - | |||||||||
| Amortization of deferred financing costs | 83,401 | 66,324 | |||||||
| Adjustment to operating lease right-of-use asset and liability | 3,274 | 2,603 | |||||||
| Depreciation | 1,598 | 1,716 | |||||||
| Non-cash compensation expense | 9,798 | 9,798 | |||||||
| Changes in operating assets and liabilities: | |||||||||
| Interest receivable on loans | (176,746 | ) | (168,148 | ) | |||||
| Other assets | (29,164 | ) | (28,538 | ) | |||||
| Accounts payable and accrued expenses | 47,890 | (92,982 | ) | ||||||
| Deferred origination fees | 61,645 | 85,945 | |||||||
| Net cash provided by operating activities | 4,019,328 | 3,150,324 | |||||||
| Cash flows from investing activities: | |||||||||
| Issuance of short term loans | (49,241,679 | ) | (28,534,303 | ) | |||||
| Collections received from loans | 42,255,461 | 33,058,052 | |||||||
| Purchase of fixed assets | (1,893 | ) | --- | ||||||
| Net cash (used in) provided by investing activities | (6,988,111 | ) | 4,523,749 | ||||||
| Cash flows from financing activities: | |||||||||
| Proceeds from (repayment of) line of credit, net | 7,715,637 | (16,824,722 | ) | ||||||
| Dividends paid | (4,310,604 | ) | (3,553,256 | ) | |||||
| Proceeds from public offering, net | --- | 12,354,460 | |||||||
| Deferred financing costs incurred | (35,819 | ) | --- | ||||||
| Net cash provided by (used in) financing activities | 3,369,214 | (8,023,518 | ) | ||||||
| Net increase (decrease) in cash and restricted cash* | 400,431 | (349,445 | ) | ||||||
| Cash and restricted cash*, beginning of year | 142,546 | 459,137 | |||||||
| Cash and restricted cash*, end of period | $ | 542,977 | $ | 109,692 | |||||
| Supplemental Cash Flow Information: | |||||||||
| Taxes paid during the period | $ | 650 | $ | 647 | |||||
| Interest paid during the period | $ | 1,036,338 | $ | 811,610 | |||||
| Operating leases paid during the period | $ | 47,703 | $ | 47,600 | |||||
| Supplemental Information - Noncash Information: | |||||||||
| Dividend declared and payable | $ | 1,436,868 | $ | --- | |||||
* At January 1, 2021 and at September 30, 2022, cash and restricted cash included $327,483 and $433,269, respectively, of restricted cash.
SOURCE: Manhattan Bridge Capital, Inc.
