Manhattan Bridge Capital, Inc. (NASDAQ:LOAN) announced today that
total revenue for the three month period ended September 30, 2016
was approximately $1,169,000 compared to approximately $1,032,000
for the three month period ended September 30, 2015, an increase of
$137,000, or 13.3%. The increase in revenue represents an increase
in lending operations. For the three month periods ended September
30, 2016 and 2015, approximately $960,000 and $871,000,
respectively, of our revenues were attributable to interest income
on the secured commercial loans that we offer to small businesses,
and approximately $209,000 and $160,000, respectively, of our
revenues were attributable to origination fees on such loans.
Net income for the three month period ended
September 30, 2016 was approximately $725,000 or $0.10 per basic
and diluted share, versus net income of approximately $639,000 or
$0.09 per basic and diluted share for the three month period ended
September 30, 2015, an increase of $86,000 or 13.5%. This increase
in net income was mainly due to an increase in operating income as
a result of increased lending activity.
Total revenue for the nine month period ended
September 30, 2016 was approximately $3,440,000 compared to
approximately $2,855,000 for the nine month period ended September
30, 2015, an increase of $585,000, or 20.5%. The increase in
revenue represents an increase in lending operations. For the nine
month periods ended September 30, 2016 and 2015, revenues of
approximately $2,849,000 and $2,392,000, respectively, were
attributable to interest income on the secured commercial loans
that we offer to small businesses, and approximately $591,000 and
$463,000, respectively, were attributable to origination fees on
such loans.
Net income for the nine month period ended
September 30, 2016 was approximately $2,130,000 or $0.29 per basic
and diluted share, versus net income of approximately $1,645,000 or
$0.25 per basic and diluted share for the same period in 2015, an
increase of $485,000 or 29.5%. This increase in net income was
mainly due to an increase in operating income as a result of
increased lending activity.
As of September 30, 2016 total shareholders'
equity was approximately $23,125,000 compared to approximately
$18,638,000 as of June 30, 2016 and approximately $17,743,000 as of
December 31, 2015.
On August 15, 2016, we completed another public
offering of 672,269 common shares. In addition, the underwriter
fully exercised its over-allotment option for an additional 100,840
common shares. The gross proceeds from the offering, including the
exercise of the over-allotment option, were approximately $4.6
million and the net proceeds were approximately $4.2 million, after
deducting our underwriting discounts and commissions and offering
expenses.
Assaf Ran, Chairman of the Board and CEO stated,
“I am pleased with the results that we have reported for the
quarter. In light of what I believe is presently a relatively
risky and unstable real estate market climate, our challenge, more
than ever, is to cherry-pick the safest lending opportunities.
We have successfully achieved another record quarter on both
revenue and net earnings while continuing our no-default track
record.”
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
This report contains forward-looking statements
within the meaning of section 21E of the Securities Exchange Act of
1934, as amended (the “Exchange Act”). Forward-looking statements
are typically identified by the words “believe,” “expect,”
“intend,” “estimate” and similar expressions. Those statements
appear in a number of places in this report and include statements
regarding our intent, belief or current expectations or those of
our directors or officers with respect to, among other things,
trends affecting our financial condition and results of operations
and our business and growth strategies. These 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 (such factors are
referred to herein as “Cautionary Statements”), including but not
limited to the following: (i) we have limited operating history as
a REIT; (ii) our loan origination activities, revenues and profits
are limited by available funds (iii)we operate in a highly
competitive market and competition may limit our ability to
originate loans with favorable interest rates; (iv) our chief
executive officer is critical to our business and our future
success may depend on our ability to retain him; (v) if we
overestimate the yields on our loans or incorrectly value the
collateral securing the loan, we may experience losses; (vi) we may
be subject to “lender liability” claims; (vii) our loan portfolio
is illiquid; (viii) our due diligence may not uncover all of a
borrower’s liabilities or other risks to its business; (ix)
borrower concentration could lead to significant losses; (x) our
management has no experience managing a REIT; and (xi) 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 accompanying information contained in this report,
including the information set forth under “Management’s Discussion
and Analysis of Financial Condition and Results of Operations”,
identifies important factors that could cause such differences.
These forward-looking statements speak only as of the date of this
report, and we caution potential investors not to place undue
reliance on such statements. We undertake no obligation to update
or revise any forward-looking statements. All subsequent written or
oral forward-looking statements attributable to us or persons
acting on our behalf are expressly qualified in their entirety by
the Cautionary Statements.
|
MANHATTAN BRIDGE CAPITAL, INC. AND
SUBSIDIARIESCONSOLIDATED BALANCE SHEETS |
|
|
September 30,
2016(unaudited) |
December 31,
2015(audited) |
Assets |
|
|
Current assets: |
|
|
Cash and cash
equivalents |
$ |
158,519 |
|
$ |
106,836 |
|
Cash - restricted |
|
919,352 |
|
|
--- |
|
Short term loans
receivable |
|
23,314,500 |
|
|
20,199,000 |
|
Interest receivable on
loans |
|
304,338 |
|
|
382,572 |
|
Other current assets |
|
49,673 |
|
|
32,865 |
|
Total
current assets |
|
24,746,382 |
|
|
20,721,273 |
|
|
|
|
Long term loans
receivable |
|
8,217,320 |
|
|
10,705,040 |
|
Property and equipment,
net |
|
9,038 |
|
|
8,771 |
|
Security deposit |
|
6,816 |
|
|
6,816 |
|
Investment in privately
held company |
|
40,000 |
|
|
50,000 |
|
Deferred financing
costs |
|
68,234 |
|
|
164,510 |
|
Total
assets |
$ |
33,087,790 |
|
$ |
31,656,410 |
|
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
Current liabilities: |
|
|
Line of credit |
$ |
4,263,055 |
|
$ |
11,821,099 |
|
Short term loans |
|
--- |
|
|
1,095,620 |
|
Accounts payable and
accrued expenses |
|
71,940 |
|
|
99,643 |
|
Deferred origination
fees |
|
344,561 |
|
|
279,682 |
|
Dividends payable |
|
--- |
|
|
617,443 |
|
Total
current liabilities |
|
4,679,556 |
|
|
13,913,487 |
|
Long term
liabilities: |
|
|
Senior secured note (net
of deferred financing costs of $716,441) |
|
5,283,559 |
|
|
--- |
|
Total
liabilities |
|
9,963,115 |
|
|
13,913,487 |
|
|
|
|
Commitments and
contingencies |
|
|
Stockholders’ equity: |
|
|
Preferred shares - $.01
par value; 5,000,000 shares authorized; no shares issued |
|
--- |
|
|
--- |
|
Common shares - $.001 par
value; 25,000,000 authorized; 8,290,749 and 7,441,039 issued;
8,113,749 and 7,264,039 outstanding |
|
8,291 |
|
|
7,441 |
|
Additional paid-in
capital |
|
23,025,856 |
|
|
18,500,524 |
|
Treasury stock, at cost –
177,000 |
|
(369,335 |
) |
|
(369,335 |
) |
Retained earnings
(Accumulated deficit) |
|
459,863 |
|
|
(395,707 |
) |
Total
stockholders’ equity |
|
23,124,675 |
|
|
17,742,923 |
|
Total liabilities and
stockholders’ equity |
$ |
33,087,790 |
|
$ |
31,656,410 |
|
MANHATTAN BRIDGE CAPITAL, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF
OPERATIONS(unaudited) |
|
|
Three Months Ended September
30, |
Nine Months Ended September
30, |
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
Interest income from
loans |
$ |
960,274 |
|
$ |
871,250 |
|
$ |
2,848,516 |
|
$ |
2,392,329 |
|
Origination fees |
|
208,951 |
|
|
160,456 |
|
|
591,191 |
|
|
463,092 |
|
Total
revenue |
|
1,169,225 |
|
|
1,031,706 |
|
|
3,439,707 |
|
|
2,855,421 |
|
|
|
|
|
|
Operating costs and
expenses: |
|
|
|
|
Interest and amortization
of debt service costs |
|
205,449 |
|
|
159,875 |
|
|
593,749 |
|
|
493,652 |
|
Referral fees |
|
2,263 |
|
|
948 |
|
|
5,525 |
|
|
3,260 |
|
General and administrative
expenses |
|
236,972 |
|
|
229,873 |
|
|
698,356 |
|
|
696,464 |
|
Total
operating costs and expenses |
|
444,684 |
|
|
390,696 |
|
|
1,297,630 |
|
|
1,193,376 |
|
Income from
operations |
|
724,541 |
|
|
641,010 |
|
|
2,142,077 |
|
|
1,662,045 |
|
Loss on write-down of
investment in privately held company |
|
--- |
|
|
--- |
|
|
(10,000 |
) |
|
(15,000 |
) |
Income before income tax
expense |
|
724,541 |
|
|
641,010 |
|
|
2,132,077 |
|
|
1,647,045 |
|
Income tax expense |
|
--- |
|
|
(2,005 |
) |
|
(2,146 |
) |
|
(2,005 |
) |
Net income |
$ |
724,541 |
|
$ |
639,005 |
|
$ |
2,129,931 |
|
$ |
1,645,040 |
|
|
|
|
|
|
Basic and diluted net
income per common share outstanding: |
|
|
|
|
--Basic |
$ |
0.10 |
|
$ |
0.09 |
|
$ |
0.29 |
|
$ |
0.25 |
|
--Diluted |
$ |
0.10 |
|
$ |
0.09 |
|
$ |
0.29 |
|
$ |
0.25 |
|
|
|
|
|
|
Weighted average number of
common shares outstanding |
|
|
|
|
--Basic |
|
7,598,626 |
|
|
7,223,043 |
|
|
7,407,787 |
|
|
6,597,987 |
|
--Diluted |
|
7,623,635 |
|
|
7,263,017 |
|
|
7,426,165 |
|
|
6,637,755 |
|
MANHATTAN BRIDGE CAPITAL, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH
FLOWS(unaudited) |
|
|
|
Nine
Months Ended September 30, |
|
|
|
2016 |
|
|
|
2015 |
|
Cash flows from
operating activities: |
|
|
|
|
Net
Income |
|
$ |
2,129,931 |
|
|
$ |
1,645,040 |
|
Adjustments to reconcile net income to net cash provided
by operating activities - |
|
|
|
|
Amortization of deferred financing costs |
|
|
51,474 |
|
|
|
27,501 |
|
Depreciation |
|
|
2,752 |
|
|
|
4,926 |
|
Non cash
compensation expense |
|
|
10,192 |
|
|
|
10,248 |
|
Loss on
write-down of investment in privately held company |
|
|
10,000 |
|
|
|
15,000 |
|
Changes
in operating assets and liabilities: |
|
|
|
|
Interest
receivable on loans |
|
|
78,234 |
|
|
|
(108,815 |
) |
Other
current and non current assets |
|
|
(16,809 |
) |
|
|
(27,377 |
) |
Accounts
payable and accrued expenses |
|
|
(27,702 |
) |
|
|
(74,031 |
) |
Deferred
origination fees |
|
|
64,879 |
|
|
|
4,360 |
|
Net cash
provided by operating activities |
|
|
2,302,951 |
|
|
|
1,496,852 |
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
Issuance
of short term loans |
|
|
(24,299,500 |
) |
|
|
(15,346,500 |
) |
Collections received from loans |
|
|
23,671,720 |
|
|
|
10,234,936 |
|
Purchase
of fixed assets |
|
|
(3,019 |
) |
|
|
(3,474 |
) |
Net cash
used in investing activities |
|
|
(630,799 |
) |
|
|
(5,115,038 |
) |
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
(Repayments of) Proceeds from loans and line of credit, net |
|
|
(8,653,664 |
) |
|
|
1,024,238 |
|
Cash
restricted for reduction of line of credit |
|
|
(919,352 |
) |
|
|
--- |
|
Proceeds
from public offerings, net |
|
|
9,539,347 |
|
|
|
4,237,199 |
|
Deferred
financing costs |
|
|
--- |
|
|
|
(111,400 |
) |
Proceeds
from exercise of stock options and warrants |
|
|
305,004 |
|
|
|
32,838 |
|
Dividends
paid |
|
|
(1,891,804 |
) |
|
|
(1,551,221 |
) |
Net cash
(used in) provided by financing activities |
|
|
(1,620,469 |
) |
|
|
3,631,654 |
|
|
|
|
|
|
Net increase in cash
and cash equivalents |
|
|
51,683 |
|
|
|
13,468 |
|
Cash and cash
equivalents, beginning of period |
|
|
106,836 |
|
|
|
47,676 |
|
Cash and cash
equivalents, end of period |
|
$ |
158,519 |
|
|
$ |
61,144 |
|
|
|
|
|
|
Supplemental Cash Flow
Information: |
|
|
|
|
Taxes paid during the
period |
|
$ |
1,948 |
|
|
$ |
29 |
|
Interest paid during
the period |
|
$ |
546,015 |
|
|
$ |
423,650 |
|
Contact:
Assaf Ran, CEO
Vanessa Kao, CFO
(516) 444-3400
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