Manhattan Bridge Capital, Inc. (NASDAQ:LOAN) announced today that
its total revenue for the three months ended June 30, 2018 was
approximately $1,668,000 compared to approximately $1,401,000 for
the three months ended June 30, 2017, an increase of $267,000, or
19.1%. For the three months ended June 30, 2018, approximately
$1,423,000 of the Company's revenue represents interest income on
the secured, commercial loans that the Company offers to small
businesses compared to approximately $1,189,000 for the same period
in 2017, and approximately $244,000 represents origination fees on
such loans compared to approximately $212,000 for the same period
in 2017. The increase in revenue represents an increase in lending
operations.
Net income for the three months ended June 30,
2018 was approximately $949,000, or $0.12 per basic and diluted
share (based on approximately 8.1 million weighted-average
outstanding common shares), as compared to approximately $840,000,
or $0.10 per basic and diluted share (based on approximately 8.1
million weighted-average outstanding common shares) for the three
months ended June 30, 2017. This increase is primarily attributable
to the increase in revenue, offset by an increase in interest
expense.
Total revenue for the six months ended June 30,
2018 was approximately $3,332,000 compared to approximately
$2,731,000 for the six months ended June 30, 2017, an increase of
$601,000, or 22.0%. For the six months ended June 30, 2018,
approximately $2,853,000 of the Company's revenue represents
interest income on the secured, commercial loans that the Company
offers to small businesses compared to approximately $2,295,000 for
the same period in 2017, and approximately $480,000 represents
origination fees on such loans compared to approximately $436,000
for the same period in 2017. The increase in revenue represents an
increase in lending operations.
Net income for the six months ended June 30,
2018 was approximately $1,930,000, or $0.24 per basic and diluted
share (based on approximately 8.1 million weighted-average
outstanding common shares), as compared to approximately
$1,631,000, or $0.20 per basic and diluted share (based on
approximately 8.1 million weighted-average outstanding common
shares) for the six months ended June 30, 2017. This increase is
primarily attributable to the increase in revenue, offset by an
increase in interest expense.
As of June 30, 2018, total
shareholders' equity was approximately $23,259,000 compared to
approximately $22,247,000 as of December 31, 2017.
Effective July 11, 2018, the Company amended its
existing credit line agreement with Webster Business Credit
Corporation and Flushing Bank to, among other things, further
increase its credit line from $20 million to $25 million.
On July 24, 2018, the Company completed a public
offering of 1,428,572 of its common shares at a public offering
price of $7.00 per share. The gross proceeds raised by the Company
from the offering were $10,000,004 before deducting underwriting
discounts and commissions and other estimated offering expenses.
The total net proceeds from the offering were approximately
$9,100,000. The Company has granted the underwriters a 45-day
option to purchase up to 214,286 additional common shares to cover
over-allotments, if any.
Assaf Ran, Chairman of the Board and CEO stated,
“We believe that the financial results for the second quarter once
again reflect our strict underwriting and disciplined loan
criteria, which continue to prove themselves as we maintain a
default free loan portfolio. At the beginning of the third quarter
we increased the line of credit from our lenders by $5 million
to $25 million in the aggregate, and completed an equity raise of
$10 million. I’m confident in my belief that the additional capital
will help us achieve further growth.”
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:
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 potential exercise by the
underwriter of the over-allotment option, with respect to our
public offering, or our belief that the additional capital
represented by the offering and increase in our credit line will
help us achieve further growth 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 |
|
|
|
|
|
June 30, 2018 |
|
December 31, 2017 |
|
(unaudited) |
|
(audited) |
Assets |
|
|
|
Loans
receivable |
$ |
51,846,500 |
|
|
$ |
45,124,000 |
|
Interest
receivable on loans |
|
570,805 |
|
|
|
535,045 |
|
Cash and
cash equivalents |
|
129,490 |
|
|
|
136,441 |
|
Deferred
financing costs |
|
31,361 |
|
|
|
45,269 |
|
Other
assets |
|
142,064 |
|
|
|
55,941 |
|
Total
assets |
$ |
52,720,220 |
|
|
$ |
45,896,696 |
|
Liabilities and
Stockholders’ Equity |
|
|
|
Liabilities: |
|
|
|
Line of credit |
$ |
20,000,000 |
|
|
$ |
16,914,594 |
|
Short term loans -
related party |
|
2,430,000 |
|
|
|
--- |
|
Short term loan |
|
1,000,000 |
|
|
|
--- |
|
Senior secured notes
(net of deferred financing costs of $585,041 and $622,584) |
|
|
|
|
|
5,414,959 |
|
|
|
5,377,416 |
|
Deferred origination
fees |
|
428,576 |
|
|
|
298,471 |
|
Accounts payable and
accrued expenses |
|
187,511 |
|
|
|
167,559 |
|
Dividends payable |
|
--- |
|
|
|
891,983 |
|
Total
liabilities |
|
29,461,046 |
|
|
|
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; 8,327,917 and 8,319,036 issued, respectively; 8,117,815
and 8,108,934 outstanding, respectively |
|
8,328 |
|
|
|
8,319 |
|
Additional paid-in
capital |
|
23,222,769 |
|
|
|
23,167,511 |
|
Treasury stock, at cost
- 210,102 shares |
|
(541,491) |
|
|
|
(541,491) |
|
Retained earnings
(accumulated deficit) |
|
569,568 |
|
|
|
(387,666) |
|
Total
stockholders’ equity |
|
23,259,174 |
|
|
|
22,246,673 |
|
|
|
|
|
Total liabilities and
stockholders’ equity |
$ |
52,720,220 |
|
|
$ |
45,896,696 |
|
|
|
|
|
MANHATTAN BRIDGE CAPITAL, INC. AND
SUBSIDIARYCONSOLIDATED STATEMENTS OF
OPERATIONS(unaudited) |
|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|
|
2018 |
|
2017 |
|
|
2018 |
|
2017 |
|
Interest
income from loans |
$ |
1,423,352 |
$ |
1,188,567 |
|
$ |
2,852,600 |
$ |
2,294,748 |
|
Origination fees |
|
244,348 |
|
212,334 |
|
|
479,574 |
|
435,759 |
|
Total
Revenue |
|
1,667,700 |
|
1,400,901 |
|
|
3,332,174 |
|
2,730,507 |
|
|
|
|
|
|
Operating
costs and expenses: |
|
|
|
|
Interest
and amortization of debt service costs |
|
413,074 |
|
277,651 |
|
|
810,778 |
|
509,233 |
|
Referral
fees |
|
83 |
|
841 |
|
|
416 |
|
2,201 |
|
General
and administrative expenses |
|
305,155 |
|
270,471 |
|
|
590,674 |
|
575,986 |
|
Total
operating costs and expenses |
|
718,312 |
|
548,963 |
|
|
1,401,868 |
|
1,087,420 |
|
Income
from operations |
|
949,388 |
|
851,938 |
|
|
1,930,306 |
|
1,643,087 |
|
Loss on
write-down of investment in privately held company |
|
--- |
|
(10,000) |
|
|
--- |
|
(10,000) |
|
Income
before income tax expense |
|
949,388 |
|
841,938 |
|
|
1,930,306 |
|
1,633,087 |
|
Income
tax expense |
|
--- |
|
(1,872) |
|
|
--- |
|
(1,872) |
|
Net
income |
$ |
949,388 |
$ |
840,066 |
|
$ |
1,930,306 |
$ |
1,631,215 |
|
|
|
|
|
|
Basic and
diluted net income per common share outstanding: |
|
|
|
|
--Basic |
$ |
0.12 |
$ |
0.10 |
|
$ |
0.24 |
$ |
0.20 |
|
--Diluted |
$ |
0.12 |
$ |
0.10 |
|
$ |
0.24 |
$ |
0.20 |
|
|
|
|
|
|
Weighted
average number of common shares outstanding: |
|
|
|
|
--Basic |
|
8,111,276 |
|
8,119,052 |
|
|
8,110,112 |
|
8,127,000 |
|
--Diluted |
|
8,119,984 |
|
8,131,752 |
|
|
8,117,817 |
|
8,142,157 |
|
|
|
|
|
|
|
|
|
|
|
|
MANHATTAN BRIDGE CAPITAL, INC. AND
SUBSIDIARYCONSOLIDATED STATEMENTS OF CASH
FLOWS(unaudited) |
|
|
|
|
|
|
Six Months Ended June
30, |
|
|
|
2018 |
|
|
|
2017 |
|
Cash flows from
operating activities: |
|
|
|
|
Net
Income |
|
$ |
1,930,306 |
|
|
$ |
1,631,215 |
|
Adjustments to reconcile net income to net cash provided by
operating activities - |
|
|
|
|
Amortization of deferred financing costs |
|
|
51,451 |
|
|
|
61,625 |
|
Depreciation |
|
|
2,274 |
|
|
|
2,186 |
|
Non cash
compensation expense |
|
|
6,532 |
|
|
|
6,532 |
|
Loss on
write-down of investment in privately held company |
|
|
--- |
|
|
|
10,000 |
|
Changes
in operating assets and liabilities: |
|
|
|
|
Interest
receivable on loans |
|
|
(35,760 |
) |
|
|
(110,599 |
) |
Other
assets |
|
|
(76,097 |
) |
|
|
(35,109 |
) |
Accounts
payable and accrued expenses |
|
|
19,952 |
|
|
|
(4,053 |
) |
Deferred
origination fees |
|
|
130,105 |
|
|
|
46,112 |
|
Other
liabilities |
|
|
--- |
|
|
|
25,000 |
|
Net cash
provided by operating activities |
|
|
2,028,763 |
|
|
|
1,632,909 |
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
Issuance
of short term loans |
|
|
(27,792,500 |
) |
|
|
(20,599,500 |
) |
Collections received from loans |
|
|
21,070,000 |
|
|
|
14,113,000 |
|
Purchase
of fixed assets |
|
|
--- |
|
|
|
(1,666 |
) |
Net cash
used in investing activities |
|
|
(6,722,500 |
) |
|
|
(6,488,166 |
) |
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
Proceeds
from line of credit, net |
|
|
3,085,406 |
|
|
|
6,683,151 |
|
Proceeds
from short-term loans, net |
|
|
3,430,000 |
|
|
|
--- |
|
Dividend
paid |
|
|
(1,865,055 |
) |
|
|
(1,627,007 |
) |
Purchase
of treasury shares |
|
|
--- |
|
|
|
(172,156 |
) |
Capital
raising costs |
|
|
(12,300 |
) |
|
|
--- |
|
Proceeds
from exercise of warrants |
|
|
48,735 |
|
|
|
--- |
|
Net cash
provided by financing activities |
|
|
4,686,786 |
|
|
|
4,883,988 |
|
|
|
|
|
|
Net (decrease) increase
in cash and cash equivalents |
|
|
(6,951 |
) |
|
|
28,731 |
|
Cash and cash
equivalents, beginning of year |
|
|
136,441 |
|
|
|
96,299 |
|
Cash and cash
equivalents, end of period |
|
$ |
129,490 |
|
|
$ |
125,030 |
|
|
|
|
|
|
Supplemental Cash Flow
Information: |
|
|
|
|
Taxes paid during the
period |
|
$ |
--- |
|
|
$ |
1,872 |
|
Interest paid during
the period |
|
$ |
733,215 |
|
|
$ |
415,273 |
|
|
|
|
|
|
|
|
|
|
SOURCE: Manhattan Bridge Capital, Inc.
Contact:
Assaf Ran, CEO
Vanessa Kao, CFO
(516) 444-3400
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