GREAT NECK, N.Y., July 22, 2024 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) (the "Company") announced today that its total revenues for the three months ended June 30, 2024 were approximately $2,443,000 compared to approximately $2,399,000 for the three months ended June 30, 2023, an increase of $44,000, or 1.8%. The increase in revenue was due to higher interest rates charged on the Company's commercial loans, partially offset by a reduction in loans receivable, period over period, and reduced origination fees, which were impacted by a slowdown in new loan originations. For the three months ended June 30, 2024 and 2023, approximately $2,033,000 and $1,943,000, respectively, of the Company's revenues were attributable to interest income on secured commercial loans that the Company offers to real estate investors, and approximately $411,000 and $457,000, respectively, of its 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 three months ended June 30, 2024 was approximately $1,409,000, or $0.12 per basic and diluted share (based on approximately 11.44 million weighted-average outstanding common shares), as compared to approximately $1,422,000, or $0.12 per basic and diluted share (based on approximately 11.48 million weighted-average outstanding common shares), for the three months ended June 30, 2023, a decrease of $13,000, or 0.9%.
Total revenues for the six months ended June 30, 2024 were approximately $5,016,000 compared to approximately $4,797,000 for the six months ended June 30, 2023, an increase of $219,000, or 4.6%. The increase in revenue was due to higher interest rates charged on the Company's commercial loans, partially offset by a reduction in loans receivable, period over period, and reduced origination fees, which were impacted by a slowdown in new loan originations. For the six months ended June 30, 2024 and 2023, revenues of approximately $4,175,000 and $3,896,000, respectively, were attributable to interest income on secured commercial loans that the Company offers to real estate investors, and approximately $841,000 and $901,000, respectively, 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 six months ended June 30, 2024 was approximately $2,885,000, or $0.25 per basic and diluted share (based on approximately 11.44 million weighted-average outstanding common shares), as compared to approximately $2,681,000, or $0.23 per basic and diluted share (based on approximately 11.49 million weighted-average outstanding common shares), for the six months ended June 30, 2023, an increase of $204,000, or 7.6%. This increase is primarily attributable to the increase in interest income from loans and the decrease in general and administrative expenses, partially offset by the increase in interest expense.
As of June 30, 2024, total stockholders' equity was approximately $43,184,000.
Assaf Ran, Chairman of the Board and Chief Executive Officer of the Company, stated, "While real estate markets in our geographic areas of operations are still slow and heavy due to the high-interest-rate environment, it seems like prices of real estate properties are holding on and sometimes increasing due to lack of inventory and the impact of inflation. As always, we're carefully monitoring our portfolio and cherry-picking good opportunities."
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 | |||||
| June 30, 2024 | December 31, 2023 | ||||
| Assets | (unaudited) | (audited) | |||
| Loans receivable | $ | 66,859,733 | $ | 73,048,403 | |
| Interest and other fees receivable on loans | 1,488,784 | 1,395,905 | |||
| Cash | 105,929 | 104,222 | |||
| Cash - restricted | --- | 1,587,773 | |||
| Other assets | 134,321 | 63,636 | |||
| Right-of-use asset - operating lease, net | 180,446 | 207,364 | |||
| Deferred financing costs, net | 23,101 | 27,583 | |||
| Total assets | $ | 68,792,314 | $ | 76,434,886 | |
| Liabilities and Stockholders' Equity | ||||||
| Liabilities: | ||||||
| Line of credit | $ | 17,345,510 | $ | 25,152,338 | ||
| Senior secured notes (net of deferred financing costs of $134,528 and $172,069, respectively) | 5,865,472 | 5,827,931 | ||||
| Deferred origination fees | 646,027 | 719,019 | ||||
| Accounts payable and accrued expenses | 242,248 | 295,292 | ||||
| Operating lease liability | 193,800 | 220,527 | ||||
| Dividends payable | 1,315,445 | 1,287,073 | ||||
| Total liabilities | 25,608,502 | 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 | 45,555,408 | 45,548,876 | ||||
| Less: Treasury stock, at cost - 318,407 and 316,407 shares, respectively | (1,070,406 | ) | (1,060,606) | |||
| Accumulated deficit | (1,312,947 | ) | (1,567,321) | |||
| Total stockholders' equity | 43,183,812 | 42,932,706 | ||||
| Total liabilities and stockholders' equity | $ | 68,792,314 | $ | 76,434,886 | ||
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | ||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Revenue: Interest income from loans | $ | 2,032,687 | $ | 1,942,527 | $ | 4,175,174 | $ | 3,896,349 | ||||
| Origination fees | 410,528 | 456,835 | 841,119 | 900,806 | ||||||||
| Total revenue | 2,443,215 | 2,399,362 | 5,016,293 | 4,797,155 | ||||||||
| Operating costs and expenses: | ||||||||||||
| Interest and amortization of deferred financing costs | 603,230 | 595,427 | 1,293,819 | 1,241,690 | ||||||||
| Referral fees | 500 | 1,000 | 1,000 | 1,292 | ||||||||
| General and administrative expenses | 434,282 | 400,979 | 844,560 | 897,075 | ||||||||
| Total operating costs and expenses | 1,038,012 | 997,406 | 2,139,379 | 2,140,057 | ||||||||
| Income from operations | 1,405,203 | 1,401,956 | 2,876,914 | 2,657,098 | ||||||||
| Other income | 4,500 | 20,380 | 9,000 | 24,880 | ||||||||
| Income before income tax expense | 1,409,703 | 1,422,336 | 2,885,914 | 2,681,978 | ||||||||
| Income tax expense | (650 | ) | (650 | ) | (650 | ) | (650 | ) | ||||
| Net income | $ | 1,409,053 | $ | 1,421,686 | $ | 2,885,264 | $ | 2,681,328 | ||||
| Basic and diluted net income per common share outstanding: | ||||||||||||
| --Basic | $ | 0.12 | $ | 0.12 | $ | 0.25 | $ | 0.23 | ||||
| --Diluted | $ | 0.12 | $ | 0.12 | $ | 0.25 | $ | 0.23 | ||||
| Weighted average number of common shares outstanding: | ||||||||||||
| --Basic | 11,438,651 | 11,475,406 | 11,438,662 | 11,485,116 | ||||||||
| --Diluted | 11,438,651 | 11,475,406 | 11,438,662 | 11,485,116 | ||||||||
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (unaudited) FOR THE THREE MONTHS ENDED JUNE 30, 2024 | ||||||||||
| Common Shares | Additional Paid in Capital | Treasury Stock | Accumulated Deficit | Totals | ||||||
| Shares | Amount | Shares | Cost | |||||||
| Balance, April 1, 2024 | 11,757,058 | $11,757 | $45,552,142 | 318,407 | $(1,070,406 | ) | $(1,406,555 | ) | $43,086,938 | |
| Non - cash compensation | 3,266 | 3,266 | ||||||||
| Dividends declared and payable | (1,315,445 | ) | (1,315,445 | ) | ||||||
| Net income | 1,409,053 | 1,409,053 | ||||||||
| Balance, June 30, 2024 | 11,757,058 | $11,757 | $45,555,408 | 318,407 | $(1,070,406 | ) | $(1,312,947 | ) | $43,183,812 | |
FOR THE THREE MONTHS ENDED JUNE 30, 2024 | ||||||||||
| Common Shares | Additional Paid in Capital | Treasury Stock | Accumulated Deficit | Totals | ||||||
| Shares | Amount | Shares | Cost | |||||||
| Balance, April 1, 2023 | 11,757,058 | $11,757 | $45,539,077 | 262,113 | $(798,939 | ) | $(1,918,595 | ) | $42,833,300 | |
| Purchase of treasury shares | 33,360 | (164,806 | ) | (164,806 | ) | |||||
| Non - cash compensation | 3,266 | 3,266 | ||||||||
| Dividends declared and payable | (1,289,428 | ) | (1,289,428 | ) | ||||||
| Net income | 1,421,686 | 1,421,686 | ||||||||
| Balance, June 30, 2024 | 11,757,058 | $11,757 | $45,542,343 | 295,473 | $(963,745 | ) | $(1,786,337 | ) | $42,804,018 | |
FOR THE SIX MONTHS ENDED JUNE 30, 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 | |
| Purchase of treasury shares | 2,000 | (9,800 | ) | (9,800 | ) | |||||
| Non - cash compensation | 6,532 | 6,532 | ||||||||
| Dividends paid | (1,315,445 | ) | (1,315,445 | ) | ||||||
| Dividends declared and payable | (1,315,445 | ) | (1,315,445 | ) | ||||||
| Net income | 2,885,264 | 2,885,264 | ||||||||
| Balance, June 30, 2024 | 11,757,058 | $11,757 | $45,555,408 | 318,407 | $(1,070,406 | ) | $(1,312,947 | ) | $43,183,812 | |
FOR THE SIX MONTHS ENDED JUNE 30, 2024 | ||||||||||
| 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 | |
| Purchase of treasury shares | 33,360 | (164,806 | ) | (164,806 | ) | |||||
| Non - cash compensation | 6,532 | 6,532 | ||||||||
| Dividends paid | (1,293,181 | ) | (1,293,181 | ) | ||||||
| Dividends declared and payable | (1,289,428 | ) | (1,289,428 | ) | ||||||
| Net income | 2,681,328 | 2,681,328 | ||||||||
| Balance, June 30, 2024 | 11,757,058 | $11,757 | $45,542,343 | 295,473 | $(963,745 | ) | $(1,786,337 | ) | $42,804,018 | |
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) | |||||||||
| Six Months Ended June 30, | |||||||||
| 2024 | 2023 | ||||||||
| Cash flows from operating activities: | |||||||||
| Net income | $ | 2,885,264 | $ | 2,681,328 | |||||
| Adjustments to reconcile net income to net cash provided by operating activities - | |||||||||
| Amortization of deferred financing costs | 44,191 | 49,494 | |||||||
| Adjustment to right-of-use asset - operating lease and liability | 190 | 1,230 | |||||||
| Depreciation | 2,209 | 1,946 | |||||||
| Non-cash compensation expense | 6,532 | 6,532 | |||||||
| Changes in operating assets and liabilities: | |||||||||
| Interest and other fees receivable on loans | (92,879 | ) | 89,214 | ||||||
| Other assets | (71,703 | ) | (72,115 | ) | |||||
| Accounts payable and accrued expenses | (53,044 | ) | (58,132 | ) | |||||
| Deferred origination fees | (72,992 | ) | 17,853 | ||||||
| Net cash provided by operating activities | 2,647,768 | 2,717,350 | |||||||
| Cash flows from investing activities: | |||||||||
| Issuance of short-term loans | (19,677,520 | ) | (28,122,249 | ) | |||||
| Collections received from loans | 25,866,190 | 32,811,877 | |||||||
| Purchase of fixed assets | (1,191 | ) | (5,085 | ) | |||||
| Net cash provided by investing activities | 6,187,479 | 4,684,543 | |||||||
| Cash flows from financing activities: | |||||||||
| Repayment of line of credit, net | (7,806,828 | ) | (4,323,513 | ) | |||||
| Dividends paid | (2,602,518 | ) | (2,730,049 | ) | |||||
| Purchase of treasury shares | (9,800 | ) | (164,806 | ) | |||||
| Deferred financing costs incurred | (2,167 | ) | (38,191 | ) | |||||
| Net cash used in financing activities | (10,421,313 | ) | (7,256,559 | ) | |||||
| Net (decrease) increase in cash | (1,586,066 | ) | 145,334 | ||||||
| Cash and cash - restricted, beginning of period* | 1,691,995 | 103,540 | |||||||
| Cash, end of period | $ | 105,929 | $ | 248,874 | |||||
| Supplemental Disclosure of Cash Flow Information: | |||||||||
| Cash paid during the period for taxes | $ | 650 | $ | 650 | |||||
| Cash paid during the period for interest | $ | 1,297,587 | $ | 1,215,297 | |||||
| Cash paid during the period for operating leases | $ | 32,208 | $ | 31,863 | |||||
Supplemental Schedule of Noncash Financing Activities: | |||||||||
| Dividend declared and payable | $ | 1,315,445 | $ | 1,289,428 | |||||
| Loan holdback relating to mortgage receivable | $ | --- | $ | 17,500 | |||||
*At December 31, 2023, cash and restricted cash consisted of $1,587,773 of restricted cash.
