GREAT NECK, N.Y., March 11, 2024 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) (the "Company") announced today that net income for the year ended December 31, 2023 was approximately $5,476,000, or $0.48 per share (based on approximately 11.5 million weighted-average outstanding common shares), versus approximately $5,212,000, or $0.45 per share (based on approximately 11.5 million weighted-average outstanding common shares) for the year ended December 31, 2022, an increase of $264,000, or 5.1%. This increase is primarily attributable to an increase in interest income from loans, partially offset by increases in interest expense and in general and administrative expenses.
Total revenue for the year ended December 31, 2023 was approximately $9,796,000, compared to approximately $8,571,000 for the year ended December 31, 2022, an increase of $1,225,000, or 14.3%. The increase in revenue was due to higher interest rates charged on the Company's commercial loans. In 2023, approximately $7,976,000 of its revenue represents interest income on secured, real estate loans that the Company offers to real estate investors, compared to approximately $6,773,000 in 2022, and approximately $1,820,000 represents origination fees on such loans, compared to approximately $1,798,000 in 2022. The loans are principally secured by collateral consisting of real estate and accompanied by personal guarantees from the principals of the borrowers.
Total operating costs and expenses for the year ended December 31, 2023 were approximately $4,353,000, compared to approximately $3,377,000 for the year ended December 31, 2022, an increase of $976,000, or 28.9%. The increase in operating costs and expenses was primarily attributable to an increase in interest expense due to higher interest rates and increases in amounts borrowed relating to the use of the Company's credit line in order to support its ability to increase loan originations, and a special bonus as well as an annual bonus totaling $195,000 to its officers in 2023.
As of December 31, 2023, total shareholders' equity was approximately $42,933,000, compared to approximately $42,864,000 as of December 31, 2022.
On April 11, 2023, the Company's Board of Directors authorized a share buyback program for the repurchase of up to 100,000 of its common shares in the next twelve months. This program does not obligate the Company to purchase any shares and expires on April 10, 2024. As of December 31, 2023, the Company had purchased an aggregate of 54,294 common shares under this repurchase program, at an aggregate cost of approximately $262,000.
Assaf Ran, Chairman of the Board and Chief Executive Officer of the Company, stated, "As real estate investors are adjusting to a high-interest rate environment, liquidity crunches are more frequent. Thus, our challenge for 2023 was to avoid problematic loans and interest collection issues. I can proudly state that I believe we succeeded in meeting the challenge."
"The size of our loan portfolio was approximately the same as the prior year; however, due to the fact that we're low-leveraged, we benefited from the higher interest rates and broke our records of both revenue and net earnings," 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, including New Jersey and Connecticut, and in Florida. We operate the website: https://www.manhattanbridgecapital.com.
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS December 31, 2023 and 2022 | |||||
| 2023 | 2022 | ||||
| Assets | |||||
| Loans receivable | $ | 73,048,403 | $ | 74,483,463 | |
| Interest receivable on loans | 1,395,905 | 1,363,502 | |||
| Cash | 104,222 | 103,540 | |||
| Cash - restricted | 1,587,773 | --- | |||
| Other assets | 63,636 | 59,566 | |||
| Operating lease right-of-use asset, net | 207,364 | 262,222 | |||
| Deferred financing costs, net | 27,583 | 7,708 | |||
| Total assets | $ | 76,434,886 | $ | 76,280,001 | |
| Liabilities and Stockholders' Equity | |||||||
| Liabilities: | |||||||
| Line of credit | $ | 25,152,338 | $ | 24,994,234 | |||
| Senior secured notes (net of deferred financing costs of $172,069 and $247,155, respectively) | 5,827,931 | 5,752,845 | |||||
| Deferred origination fees | 719,019 | 669,128 | |||||
| Accounts payable and accrued expenses | 295,292 | 289,868 | |||||
| Operating lease liability | 220,527 | 273,485 | |||||
| Dividends payable | 1,287,073 | 1,436,868 | |||||
| Total liabilities | 33,502,180 | 33,416,428 | |||||
| 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; 11,757,058 issued; 11,440,651 and 11,494,945 outstanding, respectively | 11,757 | 11,757 | |||||
| Additional paid-in capital | 45,548,876 | 45,535,811 | |||||
| Less: Treasury stock, at cost - 316,407 and 262,113 shares | (1,060,606 | ) | (798,939 | ) | |||
| Accumulated deficit | (1,567,321 | ) | (1,885,056 | ) | |||
| Total stockholders' equity | 42,932,706 | 42,863,573 | |||||
| Total liabilities and stockholders' equity | $ | 76,434,886 | $ | 76,280,001 | |||
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEARS ENDED December 31, 2023 and 2022 | |||||||
| 2023 | 2022 | ||||||
| Revenue: | |||||||
| Interest income from loans | $ | 7,976,232 | $ | 6,772,889 | |||
| Origination fees | 1,820,024 | 1,798,075 | |||||
| Total Revenue | 9,796,256 | 8,570,964 | |||||
| Operating costs and expenses: | |||||||
| Interest and amortization of deferred financing costs | 2,525,935 | 1,822,825 | |||||
| Referral fees | 2,153 | 4,500 | |||||
| General and administrative expenses | 1,825,227 | 1,549,251 | |||||
| Total operating costs and expenses | 4,353,315 | 3,376,576 | |||||
| Income from operations | 5,442,941 | 5,194,388 | |||||
| Other income | 33,880 | 18,000 | |||||
| Income before income tax expense | 5,476,821 | 5,212,388 | |||||
| Income tax expense | (650 | ) | (650 | ) | |||
| Net income | $ | 5,476,171 | $ | 5,211,738 | |||
| Basic and diluted net income per common share outstanding: | |||||||
| --Basic | $ | 0.48 | $ | 0.45 | |||
| --Diluted | $ | 0.48 | $ | 0.45 | |||
| Weighted average number of common shares outstanding | |||||||
| --Basic | 11,469,741 | 11,494,945 | |||||
| --Diluted | 11,469,741 | 11,494,945 | |||||
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY FOR THE YEARS ENDED December 31, 2023 and 2022 | |||||||||||||||
| Common Stock | Additional Paid-in Capital | Treasury Stock | 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 | 13,065 | 13,065 | |||||||||||||
| Dividends paid | (4,310,604 | ) | (4,310,604 | ) | |||||||||||
| Dividends declared and payable | (1,436,868 | ) | (1,436,868 | ) | |||||||||||
| Net income for the year ended December 31, 2022 | 5,211,738 | 5,211,738 | |||||||||||||
| Balance, December 31, 2022 | 11,757,058 | 11,757 | 45,535,811 | 262,113 | (798,939 | ) | (1,885,056 | ) | 42,863,573 | ||||||
| Purchase of treasury shares | 54,294 | (261,667 | ) | (261,667 | ) | ||||||||||
| Non-cash compensation | 13,065 | 13,065 | |||||||||||||
| Dividends paid | (3,871,363 | ) | (3,871,363 | ) | |||||||||||
| Dividends declared and payable | (1,287,073 | ) | (1,287,073 | ) | |||||||||||
| Net income for the year ended December 31, 2023 | 5,476,171 | 5,476,171 | |||||||||||||
| Balance, December 31, 2023 | 11,757,058 | $11,757 | $45,548,876 | 316,407 | $(1,060,606 | ) | $(1,567,321 | ) | $42,932,706 | ||||||
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED December 31, 2023 and 2022 | |||||||
| 2023 | 2022 | ||||||
| Cash flows from operating activities: | |||||||
| Net income | $ | 5,476,171 | $ | 5,211,738 | |||
| Adjustments to reconcile net income to net cash provided by operating activities - | |||||||
| Amortization of deferred financing costs | 93,403 | 113,736 | |||||
| Depreciation | 4,057 | 2,307 | |||||
| Non-cash compensation expense | 13,065 | 13,065 | |||||
| Adjustment to operating lease right-of-use asset and liability | 1,900 | 4,096 | |||||
| Changes in operating assets and liabilities: | |||||||
| Interest receivable on loans | (32,403 | ) | (408,059 | ) | |||
| Other assets | (3,042 | ) | 5,742 | ||||
| Accounts payable and accrued expenses | 5,424 | 135,699 | |||||
| Deferred origination fees | 49,891 | 88,667 | |||||
| Net cash provided by operating activities | 5,608,466 | 5,166,991 | |||||
| Cash flows from investing activities: | |||||||
| Issuance of short term loans | (56,301,376 | ) | (60,915,596 | ) | |||
| Collections received from loans | 57,736,436 | 52,147,497 | |||||
| Purchase of fixed assets | (5,085 | ) | (2,871 | ) | |||
| Net cash provided by (used in) investing activities | 1,429,975 | (8,770,970 | ) | ||||
Cash flows from financing activities: | |||||||
| Proceeds from line of credit, net | 158,104 | 9,348,264 | |||||
| Dividends paid | (5,308,231 | ) | (5,747,472 | ) | |||
| Purchase of treasury shares | (261,667 | ) | --- | ||||
| Deferred financing costs incurred | (38,192 | ) | (35,819 | ) | |||
| Net cash (used in) provided by financing activities | (5,449,986 | ) | 3,564,973 | ||||
| Net increase (decrease) in cash and restricted cash | 1,588,455 | (39,006 | ) | ||||
| Cash, beginning of year | 103,540 | 142,546 | |||||
| Cash and restricted cash, end of year* | $ | 1,691,995 | $ | 103,540 | |||
| Supplemental Disclosure of Cash Flow Information: | |||||||
| Cash paid for taxes during the year | $ | 650 | $ | 650 | |||
| Cash paid for interest during the year | $ | 2,423,838 | $ | 1,581,935 | |||
| Cash paid for operating leases during the year | $ | 64,055 | $ | 63,621 | |||
| Supplemental Schedule of Noncash Financing Activities: Dividend declared and payable | $ | 1,287,073 | $ | 1,436,868 | |||
* At December 31, 2023, cash and restricted cash included $1,587,773 of restricted cash.
