18.9% Increase in Revenues and 23.7%
Increase in Net Income
Manhattan Bridge Capital, Inc. (NASDAQ: LOAN) announced today that
total revenue for the three month period ended September 30, 2018
was approximately $1,891,000 compared to approximately $1,591,000
for the three month period ended September 30, 2017, an increase of
$300,000, or 18.9%. The increase in revenue is the result of an
increase in lending operations. For the three month periods ended
September 30, 2018 and 2017, approximately $1,617,000 and
$1,352,000, respectively, of our revenues were attributable to
interest income on the secured commercial loans that we offer to
small businesses, and approximately $275,000 and $240,000,
respectively, of the Company’s revenues were attributable to
origination fees on such loans.
Net income for the three month period ended
September 30, 2018 was approximately $1,189,000 or $0.13 per basic
and diluted share (based on approximately 9.3 million
weighted-average outstanding common shares), versus net income of
approximately $961,000 or $0.12 per basic and diluted share (based
on approximately 8.1 million weighted-average outstanding common
shares) for the three month period ended September 30, 2017, an
increase of $228,000, or 23.7%. This increase is primarily
attributable to the increase in revenue, offset by an increase in
interest expense.
Total revenue for the nine month period ended
September 30, 2018 was approximately $5,224,000 compared to
approximately $4,322,000 for the nine month period ended September
30, 2017, an increase of $902,000, or 20.9%. The increase in
revenue is the result of an increase in lending operations. For the
nine month periods ended September 30, 2018 and 2017, revenues of
approximately $4,469,000 and $3,647,000, respectively, were
attributable to interest income on the secured commercial loans
that we offer to small businesses, and approximately $755,000 and
$675,000, respectively, were attributable to origination fees on
such loans.
Net income for the nine month period ended
September 30, 2018 was approximately $3,119,000 or $0.37 per basic
and diluted share (based on approximately 8.5 million
weighted-average outstanding common shares), versus net income of
approximately $2,592,000 or $0.32 per basic and diluted share
(based on approximately 8.1 million weighted-average outstanding
common shares) for the same period in 2017, an increase of
$527,000, or 20.3%. This increase is primarily attributable to the
increase in revenue, offset by an increase in interest expense.
As of September 30, 2018, total shareholders'
equity was approximately $33,360,000 compared to approximately
$22,247,000 as of December 31, 2017, an increase of $11,113,000, or
50.0%.
As previously announced, effective July 11,
2018, the Company amended its existing credit line agreement with
Webster Business Credit Corporation and Flushing Bank to, among
other things, increase its credit line from $20 million to $25
million.
Also as previously announced, on July 24, 2018,
the Company completed a public offering of 1,428,572 common shares
at a public offering price of $7.00 per share. The total gross
proceeds raised by the Company from the offering were approximately
$10,821,000 (including approximately $821,000 from the sale of
117,214 additional common shares upon the partial exercise of the
over-allotment option by the underwriter on August 1, 2018), before
deducting underwriting discounts and commissions and other offering
expenses. The total net proceeds from the offering were
approximately $9,883,000.
Assaf Ran, Chairman of the Board and CEO stated,
“The third quarter results demonstrate once again steady,
responsible and measured growth. The recent increase of the line of
credit together with the recent follow-on stock offering provide
additional funds that we believe will help us to continue that
pattern. At this point, we operate in an uncertain market;
therefore, in order to continue the impressive track record of no
defaults we have set our diligence and underwriting standards to an
even higher level.”
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 our ability to continue steady,
responsible and measured growth and to continue our track record of
no defaults 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
|
|
|
|
|
September 30,
2018 |
|
December 31,
2017 |
|
(unaudited) |
|
(audited) |
Assets |
|
|
|
Loans
receivable |
$ |
58,511,236 |
|
|
$ |
45,124,000 |
|
Interest
receivable on loans |
|
642,133 |
|
|
|
535,045 |
|
Cash |
|
140,716 |
|
|
|
136,441 |
|
Cash -
restricted |
|
1,719,542 |
|
|
|
--- |
|
Deferred
financing costs |
|
46,891 |
|
|
|
45,269 |
|
Other
assets |
|
100,705 |
|
|
|
55,941 |
|
Total
assets |
$ |
61,161,223 |
|
|
$ |
45,896,696 |
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
Liabilities: |
|
|
|
Line of credit |
$ |
21,717,346 |
|
|
$ |
16,914,594 |
|
Senior secured notes (net of deferred financing costs of $566,270
and $622,584) |
|
5,433,730 |
|
|
|
5,377,416 |
|
Deferred origination fees |
|
497,852 |
|
|
|
298,471 |
|
Accounts payable and accrued expenses |
|
152,394 |
|
|
|
167,559 |
|
Dividends payable |
|
--- |
|
|
|
891,983 |
|
Total
liabilities |
|
27,801,322 |
|
|
|
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; 9,873,703 and 8,319,036 issued, respectively; 9,663,601
and 8,108,934 outstanding, respectively |
|
9,874 |
|
|
|
8,319 |
|
Additional paid-in capital |
|
33,107,269 |
|
|
|
23,167,511 |
|
Treasury stock, at cost - 210,102 shares |
|
(541,491 |
) |
|
|
(541,491 |
) |
Retained earnings (accumulated deficit) |
|
784,249 |
|
|
|
(387,666 |
) |
Total
stockholders’ equity |
|
33,359,901 |
|
|
|
22,246,673 |
|
Total liabilities and stockholders’ equity |
$ |
61,161,223 |
|
|
$ |
45,896,696 |
|
|
|
|
|
MANHATTAN BRIDGE CAPITAL, INC. AND
SUBSIDIARYCONSOLIDATED STATEMENTS OF
OPERATIONS(unaudited)
|
|
|
|
Three Months
Ended September 30, |
Nine Months
Ended September 30, |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
Interest
income from loans |
$ |
1,616,518 |
|
$ |
1,351,788 |
|
$ |
4,469,118 |
|
$ |
3,646,535 |
|
Origination
fees |
|
274,936 |
|
|
239,675 |
|
|
754,510 |
|
|
675,434 |
|
Total
revenue |
|
1,891,454 |
|
|
1,591,463 |
|
|
5,223,628 |
|
|
4,321,969 |
|
|
|
|
|
|
Operating
costs and expenses: |
|
|
|
|
Interest and
amortization of debt service costs |
|
429,421 |
|
|
352,359 |
|
|
1,240,199 |
|
|
861,591 |
|
Referral
fees |
|
250 |
|
|
750 |
|
|
667 |
|
|
2,951 |
|
General and
administrative expenses |
|
272,321 |
|
|
266,534 |
|
|
862,994 |
|
|
842,520 |
|
Total
operating costs and expenses |
|
701,992 |
|
|
619,643 |
|
|
2,103,860 |
|
|
1,707,062 |
|
Income from
operations |
|
1,189,462 |
|
|
971,820 |
|
|
3,119,768 |
|
|
2,614,907 |
|
Loss on
write-down of investment in privately held company |
|
--- |
|
|
(10,000 |
) |
|
--- |
|
|
(20,000 |
) |
Income before
income tax expense |
|
1,189,462 |
|
|
961,820 |
|
|
3,119,768 |
|
|
2,594,907 |
|
Income tax
expense |
|
(642 |
) |
|
(1,099 |
) |
|
(642 |
) |
|
(2,971 |
) |
Net
income |
$ |
1,188,820 |
|
$ |
960,721 |
|
$ |
3,119,126 |
|
$ |
2,591,936 |
|
|
|
|
|
|
Basic and
diluted net income per common share outstanding: |
|
|
|
|
--Basic |
$ |
0.13 |
|
$ |
0.12 |
|
$ |
0.37 |
|
$ |
0.32 |
|
--Diluted |
$ |
0.13 |
|
$ |
0.12 |
|
$ |
0.37 |
|
$ |
0.32 |
|
|
|
|
|
|
Weighted
average number of common shares outstanding |
|
|
|
|
--Basic |
|
9,266,962 |
|
|
8,106,499 |
|
|
8,499,967 |
|
|
8,120,091 |
|
--Diluted |
|
9,274,822 |
|
|
8,117,151 |
|
|
8,507,724 |
|
|
8,131,400 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MANHATTAN BRIDGE CAPITAL, INC. AND
SUBSIDIARYCONSOLIDATED STATEMENTS OF CASH
FLOWS(unaudited)
|
|
Nine MonthsEnded September
30, |
|
|
|
|
2018 |
|
|
|
2017 |
|
Cash flows
from operating activities: |
|
|
|
|
Net
Income |
|
$ |
3,119,126 |
|
|
$ |
2,591,936 |
|
Adjustments to reconcile net income to net cash provided
by operating activities - |
|
|
|
|
Amortization of deferred financing costs |
|
|
75,073 |
|
|
|
95,378 |
|
Depreciation |
|
|
3,287 |
|
|
|
3,398 |
|
Non cash
compensation expense |
|
|
9,798 |
|
|
|
9,798 |
|
Loss on
write-down of investment in privately held company |
|
|
--- |
|
|
|
20,000 |
|
Changes
in operating assets and liabilities: |
|
|
|
|
Interest
receivable on loans |
|
|
(107,088 |
) |
|
|
(161,823 |
) |
Other
assets |
|
|
(48,052 |
) |
|
|
(15,922 |
) |
Accounts
payable and accrued expenses |
|
|
(15,166 |
) |
|
|
24,730 |
|
Deferred
origination fees |
|
|
199,381 |
|
|
|
75,332 |
|
Net cash
provided by operating activities |
|
|
3,236,359 |
|
|
|
2,642,827 |
|
|
|
|
|
|
Cash flows
from investing activities: |
|
|
|
|
Issuance
of short term loans |
|
|
(42,417,500 |
) |
|
|
(30,314,500 |
) |
Collections received from loans |
|
|
29,030,264 |
|
|
|
20,649,870 |
|
Purchase
of fixed assets |
|
|
--- |
|
|
|
(1,666 |
) |
Net cash
used in investing activities |
|
|
(13,387,236 |
) |
|
|
(9,666,296 |
) |
|
|
|
|
|
Cash flows
from financing activities: |
|
|
|
|
Proceeds
from line of credit, net |
|
|
4,802,752 |
|
|
|
9,691,647 |
|
Proceeds
from public offering, net |
|
|
9,882,780 |
|
|
|
--- |
|
Proceeds
from exercise of stock options and warrants |
|
|
48,735 |
|
|
|
20,440 |
|
Dividends
paid |
|
|
(2,839,193 |
) |
|
|
(2,457,455 |
) |
Cash
restricted for reduction of line of credit |
|
|
(1,719,542 |
) |
|
|
--- |
|
Deferred
financing costs |
|
|
(20,380 |
) |
|
|
(43,122 |
) |
Purchase
of treasury shares |
|
|
--- |
|
|
|
(172,156 |
) |
Net cash
provided by financing activities |
|
|
10,155,152 |
|
|
|
7,039,354 |
|
|
|
|
|
|
Net increase
in cash |
|
|
4,275 |
|
|
|
15,885 |
|
Cash,
beginning of period |
|
|
136,441 |
|
|
|
96,299 |
|
Cash, end of
period |
|
$ |
140,716 |
|
|
$ |
112,184 |
|
|
|
|
|
|
Supplemental
Cash Flow Information: |
|
|
|
|
Taxes paid
during the period |
|
$ |
642 |
|
|
$ |
2,971 |
|
Interest paid
during the period |
|
$ |
1,142,341 |
|
|
$ |
713,428 |
|
SOURCE: Manhattan Bridge Capital, Inc.
Contact:
Assaf Ran, CEO
Vanessa Kao, CFO
(516) 444-3400
Manhattan Bridge Capital (NASDAQ:LOAN)
Historical Stock Chart
From Aug 2024 to Sep 2024
Manhattan Bridge Capital (NASDAQ:LOAN)
Historical Stock Chart
From Sep 2023 to Sep 2024