Manhattan Bridge Capital, Inc. Reports Results for 2016
March 15 2017 - 7:15AM
Manhattan Bridge Capital, Inc. (NASDAQ:LOAN) announced today that
net income for the year ended December 31, 2016 was approximately
$2,837,000, or $0.37 per share (based on approximately 7.6 million
weighted-average outstanding common shares), versus approximately
$2,238,000, or $0.33 per share (based on approximately 6.8 million
weighted-average outstanding common shares) for the year ended
December 31, 2015. 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 year ended December 31,
2016 was approximately $4,649,000 compared to approximately
$4,001,000 for the year ended December 31, 2015, an increase of
$648,000 or 16.2%. The increase in revenue represents an increase
in lending operations. In 2016, approximately $3,845,000 of the
Company’s revenue represents interest income on secured, commercial
loans that the Company offers to small businesses compared to
approximately $3,356,000 in 2015, and approximately $803,000
represents origination fees on such loans compared to approximately
$645,000 in 2015.
Total operating costs and expenses for the year
ended December 31, 2016 were approximately $1,794,000 compared to
approximately $1,733,000 for the year ended December 31, 2015, an
increase of $61,000, or 4%. The increase in operating costs and
expenses is primarily attributable to an increase in interest and
amortization of deferred financing costs resulting from the
issuance of senior secured notes by the Company’s wholly-owned
subsidiary, MBC Funding II Corp.
Assaf Ran, Chairman of the Board and CEO,
stated, “2016 was a year of action and achievement of challenges.
We completed a 6% 10-year bond offering through our wholly owned
subsidiary, MBC Funding II Corp., executed an equity offering of
our common stock at $5.95 per share, and redeployed an
unprecedented amount of approximately $33 million of returned
loans. It was also another year of setting revenue and net earnings
records while maintaining our NO DEFAULTS standard. As we look
forward to continued success in 2017, we commit to disciplined
underwriting in order to prepare for a possible slowing
economy.”
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 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 Real Estate Investment Trust (“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 limited 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 press
release, including the information set forth under “Management’s
Discussion and Analysis of Financial Condition and Results of
Operations” in our Annual Report on Form 10-K for the fiscal year
ended December 31, 2016 filed with the Securities and Exchange
Commission, identifies 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 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
SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
DECEMBER 31, 2016 AND 2015 |
|
|
|
|
|
2016 |
|
|
2015 |
|
|
|
|
Assets |
|
|
Current assets: |
|
|
Cash and cash equivalents |
$ |
96,299 |
|
$ |
106,836 |
|
Short term loans receivable |
|
27,495,500 |
|
|
20,199,000 |
|
Interest
receivable on loans |
|
346,519 |
|
|
382,572 |
|
Other current assets |
|
29,397 |
|
|
32,865 |
|
Total current assets |
|
27,967,715 |
|
|
20,721,273 |
|
|
|
|
Long term loans receivable |
|
7,259,820 |
|
|
10,705,040 |
|
Property and equipment, net |
|
7,980 |
|
|
8,771 |
|
Security deposit |
|
6,816 |
|
|
6,816 |
|
Investment in privately held company |
|
35,000 |
|
|
50,000 |
|
Deferred financing costs |
|
56,193 |
|
|
164,510 |
|
|
|
|
|
|
|
|
Total assets |
$ |
35,333,524 |
|
$ |
31,656,410 |
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
Current liabilities: |
|
|
Line of credit |
$ |
6,482,848 |
|
$ |
11,821,099 |
|
Short term loans |
|
--- |
|
|
1,095,620 |
|
Accounts payable and accrued expenses |
|
105,541 |
|
|
99,643 |
|
Deferred origination fees |
|
315,411 |
|
|
279,682 |
|
Dividends payable |
|
813,503 |
|
|
617,443 |
|
Total current liabilities |
|
7,717,303 |
|
|
13,913,487 |
|
Long term liabilities: |
|
|
Senior secured notes (net of deferred financing costs
of $ 697,669) |
|
5,302,331 |
|
|
--- |
|
Total liabilities |
|
13,019,634 |
|
|
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;
8,312,036 and 7,441,039 issued; 8,135,036 and 7,264,039
outstanding |
|
8,312 |
|
|
7,441 |
|
Additional paid-in capital |
|
23,134,013 |
|
|
18,500,524 |
|
Treasury stock, at cost – 177,000 |
|
(369,335 |
) |
|
(369,335 |
) |
Accumulated deficit |
|
(459,100 |
) |
|
(395,707 |
) |
Total stockholders’ equity |
|
22,313,890 |
|
|
17,742,923 |
|
|
|
|
Total liabilities and stockholders’ equity |
$ |
35,333,524 |
|
$ |
31,656,410 |
|
|
|
|
MANHATTAN BRIDGE CAPITAL, INC. AND
SUBSIDIARIES |
|
CONSOLIDATED STATEMENTS OF
OPERATIONS |
|
FOR THE YEARS ENDED DECEMBER 31, 2016 AND
2015 |
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
Interest income from
loans |
$ |
3,845,091 |
|
|
$ |
3,355,920 |
|
Origination fees |
|
803,469 |
|
|
|
644,706 |
|
Total Revenue |
|
4,648,560 |
|
|
|
4,000,626 |
|
Operating costs and
expenses: |
|
|
|
Interest and
amortization of deferred financing costs |
|
780,119 |
|
|
|
691,392 |
|
Referral fees |
|
8,682 |
|
|
|
2,356 |
|
General and
administrative expenses |
|
1,005,653 |
|
|
|
1,038,849 |
|
Total
operating costs and expenses |
|
1,794,454 |
|
|
|
1,732,597 |
|
|
|
|
|
Income from
operations |
|
2,854,106 |
|
|
|
2,268,029 |
|
|
|
|
|
Impairment loss on
property and equipment |
|
--- |
|
|
|
(13,863 |
) |
Loss on write-down of
investment in privately held company |
|
(15,000 |
) |
|
|
(15,000 |
) |
Total
other loss |
|
(15,000 |
) |
|
|
(28,863 |
) |
|
|
|
|
Income before income
tax expense |
|
2,839,106 |
|
|
|
2,239,166 |
|
Income tax expense |
|
(2,146 |
) |
|
|
(1,595 |
) |
Net income |
$ |
2,836,960 |
|
|
$ |
2,237,571 |
|
|
|
|
|
Basic and diluted net
income per common share outstanding: |
|
|
|
--Basic |
$ |
0.37 |
|
|
$ |
0.33 |
|
--Diluted |
$ |
0.37 |
|
|
$ |
0.33 |
|
|
|
|
|
Weighted average number
of common shares outstanding |
|
|
|
--Basic |
|
7,590,114 |
|
|
|
6,759,219 |
|
--Diluted |
|
7,608,201 |
|
|
|
6,786,610 |
|
|
|
|
|
|
|
|
|
MANHATTAN BRIDGE CAPITAL, INC. AND
SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF CHANGES IN
STOCKHOLDERS’ EQUITY |
FOR THE YEARS ENDED DECEMBER 31, 2016 AND
2015 |
|
|
Common Stock |
Additional Paid-in
Capital |
Treasury Stock |
(Accumulated Deficit) / Retained Earnings |
Totals |
|
|
|
|
|
|
|
Shares |
Amount |
|
Shares |
Cost |
|
|
Balance, January 1, 2015 |
6,260,689 |
$6,260 |
$14,116,183 |
177,000 |
$(369,335) |
|
$113,346 |
|
$13,866,454 |
|
Non cash compensation |
|
|
|
13,664 |
|
|
|
|
13,664 |
|
Exercise of stock options |
40,000 |
|
40 |
|
61,150 |
|
|
|
|
61,190 |
|
Exercise of warrants |
20,350 |
|
21 |
|
73,449 |
|
|
|
|
73,470 |
|
Public offering |
1,120,000 |
|
1,120 |
|
4,236,078 |
|
|
|
|
4,237,198 |
|
Dividends paid |
|
|
|
|
|
|
(2,129,181) |
|
|
(2,129,181) |
|
Dividends declared and payable |
|
|
|
|
|
|
(617,443) |
|
|
(617,443) |
|
Net income for the year ended December 31, 2015 |
|
|
|
|
|
|
2,237,571 |
|
|
2,237,571 |
|
Balance, December 31, 2015 |
7,441,039 |
|
7,441 |
|
18,500,524 |
177,000 |
|
(369,335) |
|
|
(395,707) |
|
|
17,742,923 |
|
Non cash compensation |
|
|
|
13,589 |
|
|
|
|
13,589 |
|
Exercise of warrants |
97,888 |
|
98 |
|
409,687 |
|
|
|
|
409,785 |
|
Public offerings |
773,109 |
|
773 |
|
4,210,213 |
|
|
|
|
4,210,986 |
|
Dividends paid |
|
|
|
|
|
|
(2,086,850) |
|
|
(2,086,850) |
|
Dividends declared and payable |
|
|
|
|
|
|
(813,503) |
|
|
(813,503) |
|
Net income for the year ended December 31, 206 |
|
|
|
|
|
|
2,836,960 |
|
|
2,836,960 |
|
Balance, December 31, 2016 |
8,312,036 |
$8,312 |
$23,134,013 |
177,000 |
$(369,335) |
|
$(459,100) |
|
$22,313,890 |
|
MANHATTAN BRIDGE CAPITAL, INC. AND
SUBSIDIARIES |
|
CONSOLIDATED STATEMENTS OF CASH
FLOWS |
|
FOR THE YEARS ENDED DECEMBER 31, 2016 AND
2015 |
|
|
|
|
|
2016 |
|
|
|
2015 |
|
Cash flows from
operating activities: |
|
|
|
|
|
|
|
Net
income |
$ |
2,836,960 |
|
|
$ |
2,237,571 |
|
Adjustments to reconcile net income to net cash provided by
operating activities - |
|
|
|
Amortization of deferred financing costs |
|
101,351 |
|
|
|
39,542 |
|
Depreciation |
|
3,810 |
|
|
|
5,714 |
|
Non cash
compensation expense |
|
13,589 |
|
|
|
13,664 |
|
Impairment loss on property and equipment |
|
--- |
|
|
|
13,863 |
|
Loss on
write-down of investment in privately held company |
|
15,000 |
|
|
|
15,000 |
|
Changes
in operating assets and liabilities |
|
|
|
Interest
receivable on loans |
|
36,053 |
|
|
|
(168,806 |
) |
Other
current and non current assets |
|
3,468 |
|
|
|
(5,871 |
) |
Accounts
payable and accrued expenses |
|
5,898 |
|
|
|
(63,979 |
) |
Deferred
origination fees |
|
35,729 |
|
|
|
34,906 |
|
Net cash
provided by operating activities |
|
3,051,858 |
|
|
|
2,121,604 |
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
Issuance
of short term loans |
|
(36,657,000 |
) |
|
|
(21,609,000 |
) |
Collections received from loans |
|
32,805,720 |
|
|
|
14,737,436 |
|
Purchase
of fixed assets |
|
(3,019 |
) |
|
|
(9,260 |
) |
Net cash
used in investing activities |
|
(3,854,299 |
) |
|
|
(6,880,824 |
) |
|
|
|
|
Cash flows from
financing activities: |
|
|
|
(Repayments of) proceeds from lines of credit, net |
|
(5,338,251 |
) |
|
|
4,121,099 |
|
Repayments of loans, net |
|
(1,095,620 |
) |
|
|
(1,373,845 |
) |
Proceeds
from exercise of stock options and warrants |
|
409,785 |
|
|
|
134,660 |
|
Proceeds
from public stock offering, net |
|
4,210,986 |
|
|
|
4,237,198 |
|
Proceeds
from public bond offering, net |
|
5,309,297 |
|
|
|
--- |
|
Dividends
paid |
|
(2,704,293 |
) |
|
|
(2,129,181 |
) |
Deferred
financing costs incurred |
|
--- |
|
|
|
(171,551 |
) |
Net cash
provided by financing activities |
|
791,904 |
|
|
|
4,818,380 |
|
|
|
|
|
Net (decrease) increase
in cash and cash equivalents |
|
(10,537 |
) |
|
|
59,160 |
|
Cash and cash
equivalents, beginning of year |
|
106,836 |
|
|
|
47,676 |
|
Cash and cash
equivalents, end of year |
$ |
96,299 |
|
|
$ |
106,836 |
|
|
|
|
|
|
|
|
|
Supplemental Cash Flow
Information: |
|
|
|
Taxes paid during the
year |
$ |
1 ,948 |
|
|
$ |
56 |
|
Interest paid during
the year |
$ |
691,581 |
|
|
$ |
596,187 |
|
|
|
|
|
Supplement Information
– Noncash Information: |
|
|
|
Dividend declared and
payable |
$ |
813,503 |
|
|
$ |
617,443 |
|
|
|
|
|
|
|
|
|
Contact:
Assaf Ran, CEO
Vanessa Kao, CFO
(516) 444-3400
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