GREAT NECK, N.Y., April 13, 2020 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that net income for the three months ended March 31, 2020 was approximately $1,016,000, or $0.11 per basic and diluted share (based on approximately 9.7 million weighted-average outstanding common shares), versus approximately $1,121,000, or $0.12 per basic and diluted share (based on approximately 9.7 million weighted-average outstanding common shares) for the three months ended March 31, 2019, a decrease of $105,000, or 9.4%. This decrease is primarily attributable to the decrease in revenue and the increase in general and administrative expenses, offset by the decrease in interest expense due to lower LIBOR rates.
Total revenues for the three months ended March 31, 2020 were approximately $1,711,000 compared to approximately $1,788,000 for the three months ended March 31, 2019, a decrease of $77,000, or 4.3%. The decrease in revenue was primarily attributable to lower interest rates and origination points charged on loans due to market conditions and intense competition from other lenders. For the three months ended March 31, 2020, approximately $1,474,000 of our revenue represents interest income on secured commercial loans that we offer to small businesses, compared to approximately $1,503,000 for the same period in 2019, and approximately $237,000 and $285,000, respectively, represent origination fees on such loans. The loans are principally secured by collateral consisting of real estate and, generally, accompanied by personal guarantees from the principals of the borrowers.
As of March 31, 2020, total shareholders' equity was approximately $32,832,000.
Assaf Ran, Chairman of the Board and CEO, stated, “In this challenging time, we believe we had a decent quarter. I always believe that our portfolio will prevail in a recession but given the level of uncertainty in the markets due to COVID-19, we may have to be prepared to deal with issues we have never experienced before. The good news is that we have less competition now, we are paying the dividend on time, we have announced a stock buyback plan and we increased our line of credit to $32,500,000 as well as extended it until February 2023. I wish you all good health.”
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 web site: https://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 belief that our portfolio will prevail in a recession, that we may have to be prepared to deal with issues we have never experienced before and the potential repurchase of our shares, 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; (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 and (ix) if the effect of the COVID-19 pandemic on our business is greater than anticipated. The risk factors contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019 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 SUBSIDIARYCONSOLIDATED BALANCE SHEETS | |||||
| March 31, 2020(unaudited) | December 31, 2019 (audited) | ||||
| Assets | |||||
| Loans receivable | $ | 56,814,069 | $ | 53,485,014 | |
| Interest receivable on loans | 716,918 | 675,996 | |||
| Cash | 212,562 | 118,407 | |||
| Other assets | 73,542 | 53,218 | |||
| Operating lease right-of-use asset, net | 76,385 | 87,754 | |||
| Deferred financing costs | 44,135 | 22,637 | |||
| Total assets | $ | 57,937,611 | $ | 54,443,026 | |
| Liabilities and Stockholders’ Equity | |||||||
| Liabilities: | |||||||
| Line of credit | $ | 18,860,213 | $ | 15,232,993 | |||
| Senior secured notes (net of deferred financing costs of $453,642 and $472,413) | 5,546,358 | 5,527,587 | |||||
| Deferred origination fees | 454,488 | 322,119 | |||||
| Accounts payable and accrued expenses | 165,286 | 151,823 | |||||
| Operating lease liability | 79,396 | 91,025 | |||||
| Other liabilities | --- | 15,000 | |||||
| Dividends payable | --- | 1,159,061 | |||||
| Total liabilities | 25,105,741 | 22,499,608 | |||||
| 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; 9,882,058 issued; 9,632,235 and 9,658,844 outstanding, respectively | 9,882 | 9,882 | |||||
| Additional paid-in capital | 33,147,298 | 33,144,032 | |||||
| Treasury stock, at cost – 249,823 and 223,214 shares | (750,724 | ) | (619,688 | ) | |||
| Retained earnings (accumulated deficit) | 425,414 | (590,808 | ) | ||||
| Total stockholders’ equity | 32,831,870 | 31,943,418 | |||||
| Total liabilities and stockholders’ equity | $ | 57,937,611 | $ | 54,443,026 |
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARYCONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | |||||
| Three Months Ended March 31, | |||||
| 2020 | 2019 | ||||
| Interest income from loans | $ | 1,473,544 | $ | 1,503,085 | |
| Origination fees | 237,442 | 284,974 | |||
| Total revenue | 1,710,986 | 1,788,059 | |||
| Operating costs and expenses: | |||||
| Interest and amortization of deferred financing costs | 352,442 | 378,882 | |||
| Referral fees | 542 | 2,083 | |||
| General and administrative expenses | 344,780 | 288,737 | |||
| Total operating costs and expenses | 697,764 | 669,702 | |||
| Income from operations | 1,013,222 | 1,118,357 | |||
| Other income | 3,000 | 3,000 | |||
| Net income | $ | 1,016,222 | $ | 1,121,357 | |
| Basic and diluted net income per common share outstanding: | |||||
| --Basic | $ | 0.11 | $ | 0.12 | |
| --Diluted | $ | 0.11 | $ | 0.12 | |
| Weighted average number of common shares outstanding: | |||||
| --Basic | 9,652,539 | 9,655,781 | |||
| --Diluted | 9,652,753 | 9,658,160 | |||
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARYCONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY(unaudited) | |||||||||||||||
| FOR THE THREE MONTHS ENDED MARCH 31, 2020 | |||||||||||||||
| Common Stock | AdditionalPaid-in Capital | Treasury Stock | (AccumulatedDeficit) RetainedEarnings | Totals | |||||||||||
| Shares | Amount | Shares | Cost | ||||||||||||
| Balance, January 1, 2020 | 9,882,058 | $ | 9,882 | $ | 33,144,032 | 223,214 | $ | (619,688 | ) | $ | (590,808 | ) | $ | 31,943,418 | |
| Non cash compensation | 3,266 | 3,266 | |||||||||||||
| Purchase of treasury shares | 26,609 | (131,036 | ) | (131,036 | ) | ||||||||||
| Net income | 1,016,222 | 1,016,222 | |||||||||||||
| Balance, March 31, 2020 | 9,882,058 | $ | 9,882 | $ | 33,147,298 | 249,823 | $ | (750,724 | ) | $ | 425,414 | $ | 32,831,870 | ||
| FOR THE THREE MONTHS ENDED MARCH 31, 2019 | |||||||||||||||
| Common Stock | AdditionalPaid-in Capital | Treasury Stock | (AccumulatedDeficit) Retained Earnings | Totals | |||||||||||
| Shares | Amount | Shares | Cost | ||||||||||||
| Balance, January 1, 2019 | 9,874,191 | $ | 9,874 | $ | 33,110,536 | 218,214 | $ | (590,234 | ) | $ | (448,801 | ) | $ | 32,081,375 | |
| Exercise of stock options | 7,000 | 7 | 20,433 | 20,440 | |||||||||||
| Non cash compensation | 3,266 | 3,266 | |||||||||||||
| Purchase of treasury shares | 1,000 | (5,644 | ) | (5,644 | ) | ||||||||||
| Net income | 1,121,357 | 1,121,357 | |||||||||||||
| Balance, March 31, 2019 | 9,881,191 | $ | 9,881 | $ | 33,134,235 | 219,214 | $ | (595,878 | ) | $ | 672,556 | $ | 33,220,794 | ||
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARYCONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2020 | 2019 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 1,016,222 | $ | 1,121,357 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities - | ||||||||
| Amortization of deferred financing costs | 24,375 | 23,622 | ||||||
| Adjustment to operating lease right-of-use asset and liability | (261 | ) | --- | |||||
| Depreciation | 283 | 431 | ||||||
| Non cash compensation expense | 3,266 | 3,266 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Interest receivable on loans | (40,922 | ) | 14,355 | |||||
| Other assets | (19,683 | ) | (14,659 | ) | ||||
| Accounts payable and accrued expenses | 13,463 | (40,238 | ) | |||||
| Deferred origination fees | 132,369 | 17,406 | ||||||
| Net cash provided by operating activities | 1,129,112 | 1,125,540 | ||||||
| Cash flows from investing activities: | ||||||||
| Issuance of short term loans | (16,082,435 | ) | (13,325,965 | ) | ||||
| Collections received from loans | 12,753,380 | 13,368,898 | ||||||
| Release of loan holdback relating to mortgage receivable | (15,000 | ) | --- | |||||
| Purchase of fixed assets | (923 | ) | --- | |||||
| Net cash (used in) provided by investing activities | (3,344,978 | ) | 42,933 | |||||
| Cash flows from financing activities: | ||||||||
| Proceeds from (repayment of) line of credit, net | 3,627,220 | (204,986 | ) | |||||
| Dividend paid | (1,159,061 | ) | (1,158,717 | ) | ||||
| Purchase of treasury shares | (131,036 | ) | (5,645 | ) | ||||
| Deferred financing costs incurred | (27,102 | ) | --- | |||||
| Proceeds from exercise of stock options | --- | 20,440 | ||||||
| Net cash provided by (used in) financing activities | 2,310,021 | (1,348,908 | ) | |||||
| Net increase (decrease) in cash | 94,155 | (180,435 | ) | |||||
| Cash, beginning of period | 118,407 | 355,057 | ||||||
| Cash, end of period | $ | 212,562 | $ | 174,622 | ||||
| Supplemental Cash Flow Information: | ||||||||
| Interest paid during the period | $ | 328,871 | $ | 370,621 | ||||
| Operating leases paid during the period | $ | 13,604 | $ | 12,425 | ||||
| Supplemental Information – Noncash Information | ||||||||
| Establishment of right-of-use asset and operating lease liability | --- | 135,270 | ||||||
