Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that
its total revenue for the three months ended June 30, 2019 was
approximately $1,779,000 compared to approximately $1,668,000 for
the three months ended June 30, 2018, an increase of $111,000, or
6.7%. For the three months ended June 30, 2019, approximately
$1,487,000 of the Company's revenue represents interest income on
the secured, commercial loans that the Company offers to small
businesses compared to approximately $1,423,000 for the same period
in 2018, and approximately $292,000 represents origination fees on
such loans compared to approximately $244,000 for the same period
in 2018. The increase in revenue represents an increase in lending
operations.
Net income for the three months ended June 30,
2019 was approximately $1,084,000, or $0.11 per basic and diluted
share (based on approximately 9.7 million weighted-average
outstanding common shares), as compared to approximately $949,000,
or $0.12 per basic and diluted share (based on approximately 8.1
million weighted-average outstanding common shares), for the three
months ended June 30, 2018. This increase is primarily attributable
to an increase in revenue, and a decrease in interest costs
resulting from lower outstanding amounts under a revolving credit
facility following the Company’s public offering in July 2018.
Total revenue for the six months ended June 30,
2019 was approximately $3,567,000 compared to approximately
$3,332,000 for the six months ended June 30, 2018, an increase of
$235,000, or 7.1%. For the six months ended June 30, 2019,
approximately $2,990,000 of the Company's revenue represents
interest income on the secured, commercial loans that the Company
offers to small businesses compared to approximately $2,853,000 for
the same period in 2018, and approximately $577,000 represents
origination fees on such loans compared to approximately $480,000
for the same period in 2018. The increase in revenue represents an
increase in lending operations.
Net income for the six months ended June 30,
2019 was approximately $2,205,000, or $0.23 per basic and diluted
share (based on approximately 9.7 million weighted-average
outstanding common shares), as compared to approximately
$1,930,000, or $0.24 per basic and diluted share (based on
approximately 8.1 million weighted-average outstanding common
shares), for the six months ended June 30, 2018. This increase is
primarily attributable to an increase in revenue, and a decrease in
interest costs resulting from lower outstanding amounts under a
revolving credit facility following the Company’s public offering
in July 2018.
As of June 30, 2019, total stockholders' equity
was approximately $33,125,000.
Assaf Ran, Chairman of the Board and CEO,
stated, “The real estate market in the geographical areas in which
we operate is slow and uncertain. In addition, we still face a high
level of competition. Therefore, the interest rate we are able to
charge has dropped by approximately 2%. These factors generate
a challenging working environment for us, but we still managed to
increase net earnings and maintain our default-free track record.
In addition, we recently announced a geographical expansion to New
Jersey, Connecticut and Florida. Rest assured that our high loan
quality standards will not be compromised.”
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, including New Jersey and Connecticut, and in Florida. 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 belief that our high loan quality
standards will not be compromised, 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 stockholders 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, 2018 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
SUBSIDIARYCONSOLIDATED BALANCE
SHEETS |
|
|
|
|
|
|
June 30, 2019 |
|
|
December 31, 2019 |
|
(unaudited) |
|
|
(audited) |
Assets |
|
|
|
|
|
|
|
Loans receivable |
$ |
55,911,967 |
|
|
$ |
54,836,127 |
|
Interest receivable on
loans |
|
672,900 |
|
|
|
596,777 |
|
Cash |
|
127,169 |
|
|
|
203,682 |
|
Cash - restricted |
|
--- |
|
|
|
151,375 |
|
Other assets |
|
127,559 |
|
|
|
73,131 |
|
Operating lease right-of-use
asset, net |
|
113,724 |
|
|
|
--- |
|
Deferred financing costs |
|
32,339 |
|
|
|
42,040 |
|
Total assets |
$ |
56,985,658 |
|
|
$ |
55,903,132 |
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
Line of credit |
$ |
17,737,803 |
|
|
$ |
16,622,147 |
|
Senior secured notes (net of
deferred financing costs of $509,956 and $547,499,
respectively) |
|
5,490,044 |
|
|
|
5,452,501 |
|
Deferred origination fees |
|
396,443 |
|
|
|
404,676 |
|
Accounts payable and accrued
expenses |
|
122,789 |
|
|
|
183,716 |
|
Operating lease liability |
|
113,724 |
|
|
|
--- |
|
Dividends payable |
|
--- |
|
|
|
1,158,717 |
|
Total liabilities |
|
23,860,803 |
|
|
|
23,821,757 |
|
|
|
|
|
|
|
|
|
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; 9,881,191 and 9,874,191
issued, respectively; 9,657,977 and 9,655,977 outstanding,
respectively |
|
9,881 |
|
|
|
9,874 |
|
Additional paid-in
capital |
|
33,137,501 |
|
|
|
33,110,536 |
|
Treasury stock, at cost –
223,214 and 218,214 shares |
|
(619,688 |
) |
|
|
(590,234 |
) |
Retained earnings (accumulated
deficit) |
|
597,161 |
|
|
|
(448,801 |
) |
Total stockholders’ equity |
|
33,124,855 |
|
|
|
32,081,375 |
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders’ equity |
$ |
56,985,658 |
|
|
$ |
55,903,132 |
|
|
|
|
|
|
|
|
|
|
|
|
MANHATTAN BRIDGE CAPITAL, INC. AND
SUBSIDIARYCONSOLIDATED STATEMENTS OF
OPERATIONS(unaudited) |
|
|
|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
Interest income from loans |
$ |
1,487,117 |
|
|
$ |
1,423,352 |
|
|
$ |
2,990,202 |
|
|
$ |
2,852,600 |
Origination fees |
|
292,253 |
|
|
|
244,348 |
|
|
|
577,227 |
|
|
|
479,574 |
Total revenue |
|
1,779,370 |
|
|
|
1,667,700 |
|
|
|
3,567,429 |
|
|
|
3,332,174 |
|
|
|
|
|
Operating costs and
expenses: |
|
|
|
|
Interest and amortization of
debt service costs |
|
387,511 |
|
|
|
413,074 |
|
|
|
766,393 |
|
|
|
810,778 |
Referral fees |
|
625 |
|
|
|
83 |
|
|
|
2,708 |
|
|
|
416 |
General and administrative
expenses |
|
309,619 |
|
|
|
305,155 |
|
|
|
598,356 |
|
|
|
590,674 |
Total operating costs and expenses |
|
697,755 |
|
|
|
718,312 |
|
|
|
1,367,457 |
|
|
|
1,401,868 |
Income from operations |
|
1,081,615 |
|
|
|
949,388 |
|
|
|
2,199,972 |
|
|
|
1,930,306 |
Other income |
|
3,000 |
|
|
|
--- |
|
|
|
6,000 |
|
|
|
--- |
Income before income tax
expense |
|
1,084,615 |
|
|
|
949,388 |
|
|
|
2,205,972 |
|
|
|
1,930,306 |
Income tax expense |
|
(572 |
) |
|
|
--- |
|
|
|
(572 |
) |
|
|
--- |
Net income |
$ |
1,084,043 |
|
|
$ |
949,388 |
|
|
$ |
2,205,400 |
|
|
$ |
1,930,306 |
|
|
|
|
|
Basic and diluted net income
per common share outstanding: |
|
|
|
|
--Basic |
$ |
0.11 |
|
|
$ |
0.12 |
|
|
$ |
0.23 |
|
|
$ |
0.24 |
--Diluted |
$ |
0.11 |
|
|
$ |
0.12 |
|
|
$ |
0.23 |
|
|
$ |
0.24 |
|
|
|
|
|
Weighted average number of
common shares outstanding: |
|
|
|
|
--Basic |
|
9,659,317 |
|
|
|
8,111,276 |
|
|
|
9,657,557 |
|
|
|
8,110,112 |
--Diluted |
|
9,661,620 |
|
|
|
8,119,984 |
|
|
|
9,659,897 |
|
|
|
8,117,817 |
|
MANHATTAN BRIDGE CAPITAL, INC. AND
SUBSIDIARYCONSOLIDATED STATEMENTS OF CHANGES IN
STOCKHOLDERS’ EQUITY(unaudited) |
|
FOR THE THREE MONTHS ENDED JUNE 30,
2019 |
|
Common Stock |
Additional Paidin
Capital |
Treasury Stock |
RetainedEarnings |
Totals |
|
Shares |
|
Amount |
|
Shares |
|
Cost |
|
|
Balance, April 1, 2019 |
9,881,191 |
|
$9,881 |
|
$33,134,235 |
|
219,214 |
|
$(595,878 |
) |
|
$672,556 |
|
|
$ 33,220,794 |
|
Purchase of treasury shares |
|
|
|
|
|
|
|
|
4,000 |
|
|
(23,810 |
) |
|
|
|
|
|
|
(23,810 |
) |
Non cash compensation |
|
|
|
|
|
|
3,266 |
|
|
|
|
|
|
|
|
|
|
|
|
3,266 |
|
Dividends paid |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,159,438 |
) |
|
|
(1,159,438 |
) |
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,084,043 |
|
|
|
1,084,043 |
|
Balance, June 30, 2019 |
9,881,191 |
|
$9,881 |
|
$33,137,501 |
|
223,214 |
|
$(619,688 |
) |
|
$ 597,161 |
|
|
$ 33,124,855 |
|
FOR THE THREE MONTHS ENDED JUNE 30,
2018 |
|
Common Stock |
Additional Paidin
Capital |
Treasury Stock |
RetainedEarnings |
Totals |
|
Shares |
|
Amount |
|
Shares |
|
Cost |
|
|
Balance, April 1, 2018 |
8,319,036 |
|
$ 8,319 |
|
$ 23,170,777 |
|
210,102 |
|
$ (541,491 |
) |
|
$593,252 |
|
|
$ 23,230,857 |
|
Exercise of warrants |
8,881 |
|
|
9 |
|
|
48,726 |
|
|
|
|
|
|
|
|
|
|
|
|
48,735 |
|
Non cash compensation |
|
|
|
|
|
|
3,266 |
|
|
|
|
|
|
|
|
|
|
|
|
3,266 |
|
Dividends paid |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(973,072 |
) |
|
|
(973,072 |
) |
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
949,388 |
|
|
|
949,388 |
|
Balance, June 30, 2018 |
8,327,917 |
|
$8,328 |
|
$23,222,769 |
|
210,102 |
|
$(541,491 |
) |
|
$ 569,568 |
|
|
$ 23,259,174 |
|
FOR THE SIX MONTHS ENDED JUNE 30,
2019 |
|
Common Stock |
Additional Paidin Capital |
Treasury Stock |
AccumulatedDeficit(RetainedEarnings) |
Totals |
|
Shares |
|
Amount |
|
Shares |
|
Cost |
|
|
Balance, January 1, 2019 |
9,874,191 |
|
$9,874 |
|
$33,110,536 |
|
218,214 |
|
$(590,234 |
) |
|
$(448,801 |
) |
|
$ 32,081,375 |
|
Exercise of options |
7,000 |
|
|
7 |
|
|
20,433 |
|
|
|
|
|
|
|
|
|
|
|
|
20,440 |
|
Purchase of treasury shares |
|
|
|
|
|
|
|
|
5,000 |
|
|
(29,454 |
) |
|
|
|
|
|
|
(29,454 |
) |
Non cash compensation |
|
|
|
|
|
|
6,532 |
|
|
|
|
|
|
|
|
|
|
|
|
6,532 |
|
Dividends paid |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,159,438 |
) |
|
|
(1,159,438 |
) |
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,205,400 |
|
|
|
2,205,400 |
|
Balance, June 30, 2019 |
9,881,191 |
|
$9,881 |
|
$33,137,501 |
|
223,214 |
|
$(619,688 |
) |
|
$ 597,161 |
|
|
$ 33,124,855 |
|
FOR THE SIX MONTHS ENDED JUNE 30, 2018 |
|
Common Stock |
Additional Paid in
Capital |
Treasury Stock |
AccumulatedDeficit(RetainedEarnings) |
Totals |
|
Shares |
|
Amount |
|
Shares |
|
Cost |
|
|
Balance, January 1, 2018 |
8,319,036 |
|
|
$8,319 |
|
|
$23,167,511 |
|
210,102 |
|
|
$(541,491 |
) |
|
|
$(387,666 |
) |
|
|
$ 22,246,673 |
|
Exercise of warrants |
8,881 |
|
|
9 |
|
|
48,726 |
|
|
|
|
|
|
|
|
|
|
|
|
48,735 |
|
Non cash compensation |
|
|
|
|
|
|
6,532 |
|
|
|
|
|
|
|
|
|
|
|
|
6,532 |
|
Dividends paid |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(973,072 |
) |
|
|
(973,072 |
) |
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,930,306 |
|
|
|
1,930,306 |
|
Balance, June 30, 2018 |
8,327,917 |
|
|
$8,328 |
|
|
$23,222,769 |
|
210,102 |
|
|
$(541,491 |
) |
|
|
$ 569,568 |
|
|
|
$ 23,259,174 |
|
|
|
|
MANHATTAN BRIDGE CAPITAL, INC. AND
SUBSIDIARYCONSOLIDATED STATEMENTS OF CASH
FLOWS(unaudited) |
|
|
|
|
|
Six Months Ended June 30, |
|
|
2019 |
|
2018 |
Cash flows from operating
activities: |
|
|
|
|
Net income |
|
$ |
2,205,400 |
|
|
$ |
1,930,306 |
|
Adjustments to reconcile net income to net cash provided
by operating activities - |
|
|
|
|
Amortization of deferred financing costs |
|
|
47,244 |
|
|
|
51,451 |
|
Depreciation |
|
|
815 |
|
|
|
2,274 |
|
Non cash compensation expense |
|
|
6,532 |
|
|
|
6,532 |
|
Changes in operating assets and liabilities: |
|
|
|
|
Interest receivable on loans |
|
|
(76,123 |
) |
|
|
(35,760 |
) |
Other assets |
|
|
(55,243 |
) |
|
|
(76,097 |
) |
Accounts payable and accrued expenses |
|
|
(60,927 |
) |
|
|
19,952 |
|
Deferred origination fees |
|
|
(8,233 |
) |
|
|
130,105 |
|
Net cash provided by operating activities |
|
|
2,059,465 |
|
|
|
2,028,763 |
|
|
|
|
|
|
Cash flows from investing
activities: |
|
|
|
|
Issuance of short term loans |
|
|
(24,697,965 |
) |
|
|
(27,792,500 |
) |
Collections received from loans |
|
|
23,622,125 |
|
|
|
21,070,000 |
|
Net cash used in investing activities |
|
|
(1,075,840 |
) |
|
|
(6,722,500 |
) |
|
|
|
|
|
Cash flows from financing
activities: |
|
|
|
|
Proceeds from line of credit, net |
|
|
1,115,656 |
|
|
|
3,085,406 |
|
Proceeds from short-term loans, net |
|
|
--- |
|
|
|
3,430,000 |
|
Dividends paid |
|
|
(2,318,155 |
) |
|
|
(1,865,055 |
) |
Purchase of treasury shares |
|
|
(29,454 |
) |
|
|
--- |
|
Capital raising costs |
|
|
--- |
|
|
|
(12,300 |
) |
Proceeds from exercise of stock options and warrants |
|
|
20,440 |
|
|
|
48,735 |
|
Net cash (used in) provided by financing activities |
|
|
(1,211,513 |
) |
|
|
4,686,786 |
|
|
|
|
|
|
Net decrease in cash and
restricted cash |
|
|
(227,888 |
) |
|
|
(6,951 |
) |
Cash and restricted cash,
beginning of period |
|
|
355,057 |
|
|
|
136,441 |
|
Cash and restricted cash, end of
period |
|
$ |
127,169 |
|
|
$ |
129,490 |
|
|
|
|
|
|
Supplemental Cash Flow
Information: |
|
|
|
|
Taxes paid during the
period |
|
$ |
572 |
|
|
$ |
--- |
|
Interest paid during the
period |
|
$ |
733,160 |
|
|
$ |
733,215 |
|
|
|
|
|
|
Non-cash Investing
Activities: |
|
|
|
|
Operating lease right-of-use
asset |
|
$ |
113,724 |
|
|
$ |
--- |
|
Operating lease liability |
|
$ |
113,724 |
|
|
$ |
--- |
|
Contact:
Assaf Ran, CEO
Vanessa Kao, CFO
(516) 444-3400
SOURCE: Manhattan Bridge Capital, Inc.
Manhattan Bridge Capital (NASDAQ:LOAN)
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From Mar 2024 to Apr 2024
Manhattan Bridge Capital (NASDAQ:LOAN)
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From Apr 2023 to Apr 2024