GREAT NECK, N.Y., April 23, 2024 (GLOBE NEWSWIRE) --
Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that its net income for the three months ended March 31, 2024 was approximately $1,476,000, or $0.13 per share (based on approximately 11.4 million weighted-average outstanding common shares), compared to approximately $1,260,000, or $0.11 per share (based on approximately 11.5 million weighted-average outstanding common shares) for the three months ended March 31, 2023, an increase of $216,000, or 17.1%. This increase is primarily attributable to an increase in interest income from loans and a decrease in general and administrative expenses, partially offset by an increase in interest expense.
Total revenues for the three months ended March 31, 2024 were approximately $2,573,000 compared to approximately $2,398,000 for the three months ended March 31, 2023, an increase of $175,000, or 7.3%. The increase in revenue was due to higher interest rates charged on the Company's commercial loans. For the three months ended March 31, 2024, approximately $2,142,000 of its revenue represents interest income on secured commercial loans that the Company offers to real estate investors, compared to approximately $1,954,000 for the same period in 2023, and approximately $431,000 and $444,000, respectively, represent 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 March 31, 2024, total shareholders' equity was approximately $43,087,000.
Assaf Ran, Chairman of the Board and Chief Executive Officer of the Company, stated, "High interest rates are still the most common topic in the real estate investors community, as their impact is significant. Sales are lingering, refinance transactions are dragging, and existing adjustable-rate mortgages are becoming unaffordable for certain buildings. Additionally, construction costs increased to new records due to the higher-than-normal inflation. We've always been disciplined, conservative and careful, yet now is the time to be even stricter."
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 | ||||||
| Assets | March 31, 2024 (unaudited) | December 31, 2023 (audited) | ||||
| Loans receivable | $ | 72,596,149 | $ | 73,048,403 | ||
| Interest receivable on loans | 1,514,836 | 1,395,905 | ||||
| Cash | 87,097 | 104,222 | ||||
| Cash - restricted | 311,545 | 1,587,773 | ||||
| Other assets | 97,734 | 63,636 | ||||
| Operating lease right-of-use asset, net | 193,650 | 207,364 | ||||
| Deferred financing costs, net | 24,400 | 27,583 | ||||
| Total assets | $ | 74,825,411 | $ | 76,434,886 | ||
| Liabilities and Stockholders' Equity | |||||||
| Liabilities: | |||||||
| Line of credit | $ | 23,450,677 | $ | 25,152,338 | |||
| Senior secured notes (net of deferred financing costs of $153,298 and $172,069, respectively) | 5,846,702 | 5,827,931 | |||||
| Deferred origination fees | 655,023 | 719,019 | |||||
| Accounts payable and accrued expenses | 263,692 | 295,292 | |||||
| Operating lease liability | 206,934 | 220,527 | |||||
| Dividends payable | 1,315,445 | 1,287,073 | |||||
| Total liabilities | 31,738,473 | 33,502,180 | |||||
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; 11,438,651 and 11,440,651 outstanding, respectively | 11,757 | 11,757 | |||||
| Additional paid-in capital | 45,552,142 | 45,548,876 | |||||
| Less: Treasury stock, at cost - 318,407 and 316,407 shares | (1,070,406) | (1,060,606) | |||||
| Accumulated deficit | (1,406,555) | (1,567,321) | |||||
| Total stockholders' equity | 43,086,938 | 42,932,706 | |||||
Total liabilities and stockholders' equity | $ | 74,825,411 | $ | 76,434,886 | |||
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | |||||
| Three Months Ended March 31, | |||||
| 2024 | 2023 | ||||
| Revenue: | |||||
| Interest income from loans | $ | 2,142,487 | $ | 1,953,821 | |
| Origination fees | 430,591 | 443,971 | |||
| Total revenue | 2,573,078 | 2,397,792 | |||
Operating costs and expenses: | |||||
| Interest and amortization of deferred financing costs | 690,589 | 646,263 | |||
| Referral fees | 500 | 291 | |||
| General and administrative expenses | 410,278 | 496,096 | |||
| Total operating costs and expenses | 1,101,367 | 1,142,650 | |||
| Income from operations | 1,471,711 | 1,255,142 | |||
| Other income | 4,500 | 4,500 | |||
| Net income | $ | 1,476,211 | $ | 1,259,642 | |
| Basic and diluted net income per common share outstanding: | |||||
| --Basic | $ | 0.13 | $ | 0.11 | |
| --Diluted | $ | 0.13 | $ | 0.11 | |
| Weighted average number of common shares outstanding: | |||||
| --Basic | 11,438,673 | 11,494,945 | |||
| --Diluted | 11,438,673 | 11,494,945 | |||
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (unaudited) FOR THE THREE MONTHS ENDED MARCH 31, 2024 | |||||||||||||||
| Common Shares | Additional Paid-in Capital | Treasury Stock | Accumulated Deficit | Totals | |||||||||||
| Shares | Amount | Shares | Cost | ||||||||||||
| Balance, January 1, 2024 | 11,757,058 | $11,757 | $45,548,876 | 316,407 | $(1,060,606 | ) | $(1,567,321 | ) | $ 42,932,706 | ||||||
| Non-cash compensation | 3,266 | 3,266 | |||||||||||||
| Purchase of treasury shares | 2,000 | (9,800 | ) | (9,800 | ) | ||||||||||
| Dividends declared and payable | (1,315,445 | ) | (1,315,445 | ) | |||||||||||
| Net income | ________ | ________ | ________ | ________ | ________ | 1,476,211 | 1,476,211 | ||||||||
| Balance, March 31, 2024 | 11,757,058 | $11,757 | $45,552,142 | 318,407 | $(1,070,406 | ) | $(1,406,555 | ) | $43,086,938 | ||||||
| FOR THE THREE MONTHS ENDED MARCH 31, 2023 | |||||||||||||||
| Common Shares | Additional Paid-in Capital | Treasury Stock | Accumulated Deficit | Totals | |||||||||||
| Shares | Amount | Shares | Cost | ||||||||||||
| Balance, January 1, 2023 | 11,757,058 | $11,757 | $45,535,811 | 262,113 | $(798,939 | ) | $ (1,885,056 | ) | $ 42,863,573 | ||||||
| Non-cash compensation | 3,266 | 3,266 | |||||||||||||
| Dividends declared and payable | (1,293,181 | ) | (1,293,181 | ) | |||||||||||
| Net income | ________ | ________ | ________ | ________ | ________ | 1,259,642 | 1,259,642 | ||||||||
| Balance, March 31, 2023 | 11,757,058 | $11,757 | $45,539,077 | 262,113 | $(798,939 | ) | $(1,918,595 | ) | $42,833,300 | ||||||
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2024 | 2023 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 1,476,211 | $ | 1,259,642 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities - | ||||||||
| Amortization of deferred financing costs | 21,954 | 27,540 | ||||||
| Adjustment to operating lease right-of-use asset and liability | 121 | 685 | ||||||
| Depreciation | 1,055 | 892 | ||||||
| Non-cash compensation expense | 3,266 | 3,266 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Interest receivable on loans | (118,931 | ) | 104,455 | |||||
| Other assets | (35,153 | ) | (35,189 | ) | ||||
| Accounts payable and accrued expenses | (31,600 | ) | (28,043 | ) | ||||
| Deferred origination fees | (63,996 | ) | (18,272 | ) | ||||
| Net cash provided by operating activities | 1,252,927 | 1,314,976 | ||||||
| Cash flows from investing activities: | ||||||||
| Issuance of short-term loans | (9,650,271 | ) | (13,734,803 | ) | ||||
| Collections received from loans | 10,102,525 | 16,285,581 | ||||||
| Purchase of fixed assets | --- | (5,085 | ) | |||||
| Net cash provided by investing activities | 452,254 | 2,545,693 | ||||||
| Cash flows from financing activities: | ||||||||
| Repayment of line of credit, net | (1,701,661 | ) | (2,413,957 | ) | ||||
| Dividend paid | (1,287,073 | ) | (1,436,868 | ) | ||||
| Purchase of treasury shares | (9,800 | ) | --- | |||||
| Deferred financing costs incurred | --- | (38,192 | ) | |||||
| Net cash used in financing activities | (2,998,534 | ) | (3,889,017 | ) | ||||
| Net decrease in cash | (1,293,353 | ) | (28,348 | ) | ||||
| Cash and cash - restricted, beginning of period | 1,691,995 | 103,540 | ||||||
| Cash and cash - restricted, end of period | $ | 398,642 | $ | 75,192 | ||||
| Supplemental Disclosure of Cash Flow Information | |||||||
| Cash paid during the period for interest | $ | 667,488 | $ | 636,990 | |||
| Cash paid during the period for operating leases | $ | 16,370 | $ | 15,917 | |||
| Supplemental Schedule of Noncash Financing Activities: | |||||||
| Dividend declared and payable | $ | 1,315,445 | $ | 1,293,181 | |||
| Loan holdback relating to mortgage receivable | $ | --- | $ | 17,500 | |||
| The components of cash and cash - restricted are as follows: | |||||||
| Cash | $ | 87,097 | $ | 75,192 | |||
| Cash - restricted | $ | 311,545 | $ | --- | |||
