Manhattan Bridge Capital, Inc. (NASDAQ:LOAN) announced today that
its total revenue for the three month period ended June 30, 2017
was approximately $1,401,000 compared to approximately $1,166,000
for the three month period ended June 30, 2016, an increase of
$235,000, or 20.2%. For the three month period ended June 30, 2017,
approximately $1,189,000 of the Company's revenue represents
interest income on the secured, commercial loans that the Company
offers to small businesses compared to approximately $974,000 for
the same period in 2016, and approximately $212,000 represents
origination fees on such loans compared to approximately $192,000
for the same period in 2016. The increase in revenue represents an
increase in lending operations.
Net income for the three month period ended June
30, 2017 was approximately $840,000, or $0.10 per basic and diluted
share (based on approximately 8.1 million weighted-average
outstanding common shares), as compared to approximately $710,000,
or $0.10 per basic and diluted share (based on approximately 7.3
million weighted-average outstanding common shares) for the three
month period ended June 30, 2016. This increase is primarily
attributable to the increase in revenue, offset by an increase in
operating expenses.
Total revenue for the six month period ended
June 30, 2017 was approximately $2,731,000 compared to
approximately $2,270,000 for the six month period ended June 30,
2016, an increase of $461,000, or 20.3%. For the six month period
ended June 30, 2017, approximately $2,295,000 of the Company's
revenue represents interest income on the secured, commercial loans
that the Company offers to small businesses compared to
approximately $1,888,000 for the same period in 2016, and
approximately $436,000 represents origination fees on such loans
compared to approximately $382,000 for the same period in 2016. The
increase in revenue represents an increase in lending
operations.
Net income for the six month period ended June
30, 2017 was approximately $1,631,000, or $0.20 per basic and
diluted share (based on approximately 8.1 million weighted-average
outstanding common shares), as compared to approximately
$1,405,000, or $0.19 per basic and diluted share (based on
approximately 7.3 million weighted-average outstanding common
shares) for the six month period ended June 30, 2016. This increase
is primarily attributable to the increase in revenue, offset by an
increase in operating expenses.
As of June 30, 2017, total
shareholders' equity was approximately $22,966,000 compared to
approximately $22,314,000 as of December 31, 2016, an increase of
$652,000.
Effective July 7, 2017, the Company amended
certain terms of the existing credit line agreement with Webster
Business Credit Corporation, whereby Webster increased the
Company’s existing credit line from $14 million to $15 million,
with an option, at the discretion of Webster, to further increase
the credit line to $20 million. In addition, the credit line
interest rate was reduced by 0.5%, and the term of the credit line
was extended until February 28, 2022.
Assaf Ran, Chairman of the Board and CEO stated,
“I’m pleased to present another good quarter and new record revenue
and net earnings. Our goal is to continue with our responsible
lending approach in order to continue to maintain a default free
loan portfolio and track record. We’ve recently announced that our
line of credit from our bank was increased, which we believe will
allow us to keep growing the company in the future.”
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 state that we will continue to maintain a
default free loan portfolio and track record and that we believe
the increase in the Webster credit line will allow us to continue
growing in the future 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) 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 risk factors contained in our Annual Report on
Form 10-K for the fiscal year ended December 31, 2016 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
SUBSIDIARIESCONSOLIDATED BALANCE
SHEETS |
|
|
|
|
|
|
|
|
June 30,
2017(unaudited) |
|
|
December 31,
2016(audited) |
|
Assets |
|
|
|
|
|
|
|
|
|
Loans receivable |
$ |
41,241,820 |
|
|
|
$ |
34,755,320 |
|
|
Interest receivable on
loans |
|
457,118 |
|
|
|
|
346,519 |
|
|
Cash and cash
equivalents |
|
125,030 |
|
|
|
|
96,299 |
|
|
Deferred financing
costs |
|
32,110 |
|
|
|
|
56,193 |
|
|
Investment in privately
held company |
|
25,000 |
|
|
|
|
35,000 |
|
|
Other assets |
|
78,783 |
|
|
|
|
44,193 |
|
|
Total
assets |
$ |
41,959,861 |
|
|
|
$ |
35,333,524 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
Line of credit |
$ |
13,165,999 |
|
|
$ |
6,482,848 |
|
|
Senior secured notes
(net of deferred financing costs of $660,127 and $697,669,
respectively) |
|
5,339,873 |
|
|
|
5,302,331 |
|
|
Deferred origination
fees |
|
361,523 |
|
|
|
315,411 |
|
|
Accounts payable and
accrued expenses |
|
101,488 |
|
|
|
105,541 |
|
|
Other liabilities |
|
25,000 |
|
|
|
--- |
|
|
Dividends payable |
|
--- |
|
|
|
813,503 |
|
|
Total
liabilities |
|
18,993,883 |
|
|
|
13,019,634 |
|
|
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 issued; 8,101,934 and
8,135,036 outstanding, respectively |
|
8,312 |
|
|
|
8,312 |
|
|
Additional paid-in
capital |
|
23,140,546 |
|
|
|
23,134,013 |
|
|
Treasury stock, at cost
– 210,102 and 177,000 |
|
(541,491 |
) |
|
|
(369,335 |
) |
|
Retained earnings
(Accumulated deficit) |
|
358,611 |
|
|
|
(459,100 |
) |
|
Total
stockholders’ equity |
|
22,965,978 |
|
|
|
22,313,890 |
|
|
Total liabilities and
stockholders’ equity |
$ |
41,959,861 |
|
|
$ |
35,333,524 |
|
|
MANHATTAN BRIDGE CAPITAL, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF
OPERATIONS(unaudited) |
|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|
2017 |
2016 |
2017 |
2016 |
Interest income from
loans |
$ |
1,188,567 |
|
$ |
973,934 |
|
$ |
2,294,748 |
|
$ |
1,888,243 |
|
Origination fees |
|
212,334 |
|
|
191,959 |
|
|
435,759 |
|
|
382,240 |
|
Total
Revenue |
|
1,400,901 |
|
|
1,165,893 |
|
|
2,730,507 |
|
|
2,270,483 |
|
|
|
|
|
|
Operating costs and
expenses: |
|
|
|
|
Interest and
amortization of debt service costs |
|
277,651 |
|
|
208,750 |
|
|
509,233 |
|
|
388,300 |
|
Referral fees |
|
841 |
|
|
1,894 |
|
|
2,201 |
|
|
3,262 |
|
General and
administrative expenses |
|
270,471 |
|
|
233,545 |
|
|
575,986 |
|
|
461,385 |
|
Total
operating costs and expenses |
|
548,963 |
|
|
444,189 |
|
|
1,087,420 |
|
|
852,947 |
|
Income from
operations |
|
851,938 |
|
|
721,704 |
|
|
1,643,087 |
|
|
1,417,536 |
|
Loss on write-down of
investment in privately held company |
|
(10,000 |
) |
|
(10,000 |
) |
|
(10,000 |
) |
|
(10,000 |
) |
Income before income
tax expense |
|
841,938 |
|
|
711,704 |
|
|
1,633,087 |
|
|
1,407,536 |
|
Income tax expense |
|
(1,872 |
) |
|
(1,639 |
) |
|
(1,872 |
) |
|
(2,146 |
) |
Net income |
$ |
840,066 |
|
$ |
710,065 |
|
$ |
1,631,215 |
|
$ |
1,405,390 |
|
|
|
|
|
|
Basic and diluted net
income per common share outstanding: |
|
|
|
|
--Basic |
$ |
0.10 |
|
$ |
0.10 |
|
$ |
0.20 |
|
$ |
0.19 |
|
--Diluted |
$ |
0.10 |
|
$ |
0.10 |
|
$ |
0.20 |
|
$ |
0.19 |
|
|
|
|
|
|
Weighted average number
of common shares outstanding |
|
|
|
|
--Basic |
|
8,119,052 |
|
|
7,279,332 |
|
|
8,127,000 |
|
|
7,271,685 |
|
--Diluted |
|
8,131,752 |
|
|
7,307,710 |
|
|
8,142,157 |
|
|
7,298,185 |
|
MANHATTAN BRIDGE CAPITAL, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH
FLOWS(unaudited) |
|
|
|
Six Months Ended June
30, |
|
|
2017 |
|
2016 |
Cash flows from
operating activities: |
|
|
|
|
Net
Income |
|
$ |
1,631,215 |
|
|
$ |
1,405,390 |
|
Adjustments to reconcile net income to net cash provided
by operating activities - |
|
|
|
|
Amortization of deferred financing costs |
|
|
61,625 |
|
|
|
39,433 |
|
Depreciation |
|
|
2,186 |
|
|
|
1,778 |
|
Non cash
compensation expense |
|
|
6,532 |
|
|
|
6,794 |
|
Loss on
write-down of investment in privately held company |
|
|
10,000 |
|
|
|
10,000 |
|
Changes
in operating assets and liabilities: |
|
|
|
|
Interest
receivable on loans |
|
|
(110,599 |
) |
|
|
82,207 |
|
Other
assets |
|
|
(35,109 |
) |
|
|
(26,730 |
) |
Accounts
payable and accrued expenses |
|
|
(4,053 |
) |
|
|
(10,057 |
) |
Deferred
origination fees |
|
|
46,112 |
|
|
|
31,729 |
|
Other
liabilities |
|
|
25,000 |
|
|
|
--- |
|
Net cash
provided by operating activities |
|
|
1,632,909 |
|
|
|
1,540,544 |
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
Issuance
of short term loans |
|
|
(20,599,500 |
) |
|
|
(14,869,500 |
) |
Collections received from loans |
|
|
14,113,000 |
|
|
|
13,639,670 |
|
Purchase
of fixed assets |
|
|
(1,666 |
) |
|
|
(1,499 |
) |
Net cash
used in investing activities |
|
|
(6,488,166 |
) |
|
|
(1,231,329 |
) |
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
Proceeds
from (Repayments of) lines of credit, net |
|
|
6,683,151 |
|
|
|
(2,351,510 |
) |
Dividend
paid |
|
|
(1,627,007 |
) |
|
|
(1,235,503 |
) |
Purchase
of treasury shares |
|
|
(172,156 |
) |
|
|
--- |
|
Repayments of short-term loans, net |
|
|
--- |
|
|
|
(1,095,620 |
) |
Cash
restricted for reduction of line of credit |
|
|
--- |
|
|
|
(1,408,592 |
) |
Amount
collected payable to joint venture partners |
|
|
--- |
|
|
|
378,875 |
|
Proceeds
from public offering, net |
|
|
--- |
|
|
|
5,323,336 |
|
Proceeds
from exercise of stock options and warrants |
|
|
--- |
|
|
|
100,463 |
|
Net cash
provided by (used in) financing activities |
|
|
4,883,988 |
|
|
|
(288,551 |
) |
|
|
|
|
|
Net increase in cash
and cash equivalents |
|
|
28,731 |
|
|
|
20,664 |
|
Cash and cash
equivalents, beginning of year |
|
|
96,299 |
|
|
|
106,836 |
|
Cash and cash
equivalents, end of period |
|
$ |
125,030 |
|
|
$ |
127,500 |
|
|
|
|
|
|
Supplemental Cash Flow
Information: |
|
|
|
|
Taxes paid during the
period |
|
$ |
1,872 |
|
|
$ |
1,948 |
|
Interest paid during
the period |
|
$ |
415,273 |
|
|
$ |
348,443 |
|
Contact:
Assaf Ran, CEO
Vanessa Kao, CFO
(516) 444-3400
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