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A service for Realtors · Thursday, September 20, 2018 · 462,490,917 Articles · 3+ Million Readers

Manhattan Bridge Capital, Inc. Reports First Quarter Results

25.1% Increase in Revenues and 24.0% Increase in Net Income

GREAT NECK, N.Y., April 16, 2018 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (NASDAQ:LOAN) announced today that total revenue for the three month period ended March 31, 2018 was approximately $1,664,000 compared to approximately $1,330,000 for the three month period ended March 31, 2017, an increase of $334,000, or 25.1%. The increase in revenue represents an increase in lending operations. In 2018, approximately $1,429,000 of the Company’s revenue represents interest income on secured, commercial loans that it offers to small businesses compared to approximately $1,106,000 for the same period in 2017, and approximately $235,000 represents origination fees on such loans compared to approximately $223,000 for the same period in 2017. The loans are principally secured by collateral consisting of real estate and, generally, accompanied by personal guarantees from the principals of the businesses.

Net income for the three month period ended March 31, 2018 was approximately $981,000, or $0.12 per basic and diluted share (based on approximately 8.1 million weighted-average outstanding common shares), versus approximately $791,000, or $0.10 per basic and diluted share (based on approximately 8.1 million and 8.2 million weighted-average outstanding common shares, respectively),  an increase of $190,000, or 24.0%. This increase is primarily attributable to the increase in revenue, offset by an increase in interest expense.

As of March 31, 2018, total assets were approximately $46,856,000 compared to approximately $45,897,000 as of December 31, 2017, an increase of $959,000, or 2.1%.

Assaf Ran, Chairman of the Board and CEO, stated, “We’ve had another successful quarter. During the first quarter the amount of paid loans was higher than usual. We believe that this is another indication of our portfolio’s strength and liquidity. Thanks to our robust sales and marketing network, we managed to redeploy the funds promptly. As with prior quarters, we had yet another quarter of no defaults,” added Mr. Ran.

/EIN News/ -- 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

Forward Looking Statements

This press release and the statements of our 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 we discuss the portfolio’s strength and liquidity we are 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) if we overestimate the yields on our loans or incorrectly value the collateral securing the loan, we may experience losses; (v) we may be subject to “lender liability” claims; (vi) our due diligence may not uncover all of a borrower’s liabilities or other risks to its business; (vii) borrower concentration could lead to significant losses; and (viii) 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 risk factors contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2017 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
       
  March 31, 2018   December 31,
2017
  (unaudited)   (audited)
Assets      
Loans receivable $ 46,056,500     $ 45,124,000  
Interest receivable on loans   497,977       535,045  
Cash and cash equivalents   185,532       136,441  
       
Deferred financing costs   34,301       45,269  
Other assets   81,883       55,941  
Total assets $ 46,856,193     $ 45,896,696  
       
Liabilities and Stockholders’ Equity    
Liabilities:      
Line of credit $ 17,764,153     $ 16,914,594  
       
Senior secured notes (net of deferred financing costs of $603,813 and $622,584)   5,396,187       5,377,416  
Deferred origination fees   320,723       298,471  
Accounts payable and accrued expenses   144,273       167,559  
Dividends payable   ---       891,983  
Total liabilities   23,625,336       23,650,023  
       
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; 8,319,036 issued; 8,108,934 outstanding   8,319       8,319  
Additional paid-in capital   23,170,777       23,167,511  
Treasury stock, at cost - 210,102 shares   (541,491)       (541,491)  
Retained earnings (accumulated deficit)   593,252       (387,666)  
Total stockholders’ equity   23,230,857       22,246,673  
       
Total liabilities and stockholders’ equity $ 46,856,193     $ 45,896,696  
       


MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
 
  Three Months
Ended March 31,
    2018   2017
     
Interest income from loans $ 1,429,249 $ 1,106,180
Origination fees   235,226   223,425
Total revenue   1,664,475   1,329,605
Operating costs and expenses:    
Interest and amortization of deferred financing costs   397,705   231,582
Referral fees   333   1,360
General and administrative expenses   285,519   305,514
Total operating costs and expenses   683,557   538,456
     
Net income $ 980,918 $ 791,149
     
Basic and diluted net income per common share:    
--Basic $ 0.12 $ 0.10
--Diluted $ 0.12 $ 0.10
     
Weighted average number of common shares outstanding:    
--Basic   8,108,934   8,135,036
--Diluted   8,121,728   8,158,316
         


MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
 
    Three Months
Ended March 31,
       2018        2017  
         
Cash flows from operating activities:        
Net income   $ 980,918     $ 791,149  
Adjustments to reconcile net income to net cash provided by 
  operating activities -
       
Amortization of deferred financing costs     29,739       30,813  
Depreciation     1,146       1,058  
Non cash compensation expense     3,266       3,266  
Changes in operating assets and liabilities:        
Interest receivable on loans     37,068       (38,647)  
Other assets     (27,088)       (20,594)  
Accounts payable and accrued expenses     (23,286)       (22,927)  
Deferred origination fees     22,252       10,607  
Net cash provided by operating activities     1,024,015       754,725  
         
Cash flows from investing activities:        
Issuance of short term loans     (11,000,000)       (9,556,000)  
Collections received from loans     10,067,500       9,107,000  
Net cash used in investing activities     (932,500)       (449,000)  
         
Cash flows from financing activities:        
Proceeds from line of credit, net     849,559       734,199  
Dividend paid     (891,983)       (813,503)  
Cash restricted for reduction of line of credit     ---       (202,061)  
Net cash used in financing activities     (42,424)       (281,365)  
         
Net increase in cash and cash equivalents     49,091       24,360  
Cash and cash equivalents, beginning of period     136,441       96,299  
Cash and cash equivalents, end of period   $ 185,532     $ 120,659  
         
Supplemental Cash Flow Information:        
Interest paid during the period   $ 364,292     $ 192,231  
                 

 SOURCE: Manhattan Bridge Capital, Inc.

Contact:
                    Assaf Ran, CEO
                    Vanessa Kao, CFO
                    (516) 444-3400

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