Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that
net income for the three months ended March 31, 2021 was
approximately $1,106,000, or $0.12 per basic and diluted share
(based on approximately 9.6 million weighted-average outstanding
common shares), versus approximately $1,016,000, or $0.11 per basic
and diluted share (based on approximately 9.7 million
weighted-average outstanding common shares) for the three months
ended March 31, 2020, an increase of $90,000, or 8.9%. This
increase is primarily attributable to the decreases in interest
expense and in general and administrative expenses.
Total revenues for the three months ended March
31, 2021 were approximately $1,729,000 compared to approximately
$1,711,000 for the three months ended March 31, 2020, an increase
of $18,000, or 1.0%. For the three months ended March 31, 2021,
approximately $1,443,000 of our revenue represents interest income
on secured commercial loans that we offer to small businesses,
compared to approximately $1,474,000 for the same period in 2020,
and approximately $286,000 and $237,000, respectively, represent
origination fees on such loans. The loans are principally secured
by collateral consisting of real estate and, generally, accompanied
by personal guarantees from the principals of the borrowers.
As of March 31, 2021, total shareholders' equity
was approximately $33,073,000.
Assaf Ran, Chairman of the Board and CEO,
stated, “I believe that the first quarter of 2021 reflects buds of
optimism. We returned to work from the office, of course following
all regulations, and our deal flow strengthened to approximately
our pre-COVID pace. There are still many concerns. However, most of
our loans are secured by first mortgages on 1-4 family houses
located outside of Manhattan, a product that has actually
appreciated in value during the pandemic. Given current market
conditions, and considering the extra safety measures we’re taking
to continue our no defaults track record, I am pleased with the
results and hope to return to growth mode in the near future. I
wish everyone good health.”
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 website:
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 the first quarter of
2021 reflects buds of optimism, that our deal flow strengthened to
approximately our pre-COVID pace and the hope that we will return
to growth mode in the near 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) 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; (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 and (ix) if the effect of
the COVID-19 pandemic on our business is greater than anticipated.
The risk factors contained in our Annual Report on Form 10-K for
the fiscal year ended December 31, 2020 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
Assets |
March 31, 2021(unaudited) |
|
December 31, 2020(audited) |
Loans
receivable |
$ |
58,490,238 |
|
$ |
58,097,970 |
Interest receivable on loans |
|
915,132 |
|
|
827,236 |
Cash |
|
205,834 |
|
|
131,654 |
Cash - restricted |
|
--- |
|
|
327,483 |
Other assets |
|
80,977 |
|
|
66,566 |
Operating lease right-of-use asset, net |
|
356,535 |
|
|
369,699 |
Deferred financing costs, net |
|
17,315 |
|
|
22,807 |
Total assets |
$ |
60,066,031 |
|
$ |
59,843,415 |
Liabilities and Stockholders’
Equity
Liabilities: |
|
|
|
Line of
credit |
$ |
20,441,047 |
|
$ |
20,308,873 |
Senior secured notes (net of deferred financing costs of
$378,556 and $397,327, respectively) |
|
5,621,444 |
|
|
5,602,673 |
Deferred origination fees |
|
438,927 |
|
|
367,638 |
Accounts payable and accrued expenses |
|
130,353 |
|
|
168,940 |
Operating lease liability |
|
360,935 |
|
|
372,907 |
Dividends payable |
|
--- |
|
|
1,058,194 |
Total liabilities |
|
26,992,706 |
|
|
27,879,225 |
Commitments and contingencies |
|
|
|
Stockholders’ equity: |
|
|
|
Preferred stock - $.01 par value; 5,000,000 shares authorized;
none issued |
|
--- |
|
|
--- |
Common stock - $.001 par value; 25,000,000 shares authorized;
9,882,058 issued; 9,619,945 outstanding |
|
9,882 |
|
|
9,882 |
Additional paid-in capital |
|
33,160,362 |
|
|
33,157,096 |
Treasury stock, at cost – 262,113 shares |
|
(798,939) |
|
|
(798,939) |
Retained earnings (accumulated deficit) |
|
702,020 |
|
|
(403,849) |
Total stockholders’ equity |
|
33,073,325 |
|
|
31,964,190 |
Total liabilities and stockholders’ equity |
$ |
60,066,031 |
|
$ |
59,843,415 |
MANHATTAN BRIDGE CAPITAL, INC. AND
SUBSIDIARY
|
Three Months Ended March 31, |
|
|
2021 |
|
2020 |
|
|
|
Interest
income from loans |
$ |
1,442,814 |
$ |
1,473,544 |
Origination
fees |
|
286,473 |
|
237,442 |
Total revenue |
|
1,729,287 |
|
1,710,986 |
Operating
costs and expenses: |
|
|
Interest and
amortization of deferred financing costs |
|
317,186 |
|
352,442 |
Referral
fees |
|
1,751 |
|
542 |
General and
administrative expenses |
|
308,981 |
|
344,780 |
Total operating costs and expenses |
|
627,918 |
|
697,764 |
|
|
|
Income from
operations |
|
1,101,369 |
|
1,013,222 |
Other
income |
|
4,500 |
|
3,000 |
Net
income |
$ |
1,105,869 |
$ |
1,016,222 |
|
|
|
Basic and
diluted net income per common share outstanding: |
|
|
--Basic |
$ |
0.12 |
$ |
0.11 |
--Diluted |
$ |
0.12 |
$ |
0.11 |
|
|
|
Weighted
average number of common shares outstanding: |
|
|
--Basic |
|
9,619,945 |
|
9,652,539 |
--Diluted |
|
9,619,945 |
|
9,652,753 |
MANHATTAN BRIDGE CAPITAL, INC. AND
SUBSIDIARY CONSOLIDATED STATEMENTS OF CHANGES IN
STOCKHOLDERS’ EQUITY (unaudited)
FOR THE THREE MONTHS ENDED MARCH 31,
2021
|
Common Stock |
AdditionalPaid-in Capital |
Treasury Stock |
(AccumulatedDeficit)
RetainedEarnings |
Totals |
|
|
|
|
|
|
|
Shares |
Amount |
|
Shares |
Cost |
|
|
Balance, January 1, 2021 |
9,882,058 |
$9,882 |
$33,157,096 |
262,113 |
$(798,939) |
$(403,849) |
$31,964,190 |
Non-cash compensation |
|
|
3,266 |
|
|
|
3,266 |
Net income |
|
|
|
|
|
1,105,869 |
1,105,869 |
Balance, March 31, 2021 |
9,882,058 |
$9,882 |
$33,160,362 |
262,113 |
$(798,939) |
$702,020 |
$33,073,325 |
FOR THE THREE MONTHS ENDED MARCH 31,
2020
|
Common Stock |
AdditionalPaid-in Capital |
Treasury Stock |
(AccumulatedDeficit)
RetainedEarnings |
Totals |
|
|
|
|
|
|
|
Shares |
Amount |
|
Shares |
Cost |
|
|
Balance, January 1, 2020 |
9,882,058 |
$9,882 |
$33,144,032 |
223,214 |
$(619,688) |
$(590,808) |
$ 31,943,418 |
Non-cash compensation |
|
|
3,266 |
|
|
|
3,266 |
Purchase of treasury shares |
|
|
|
26,609 |
(131,036) |
|
(131,036) |
Net income |
|
|
|
|
|
1,016,222 |
1,016,222 |
Balance, March 31, 2020 |
9,882,058 |
$9,882 |
$33,147,298 |
249,823 |
$(750,724) |
$425,414 |
$ 32,831,870 |
MANHATTAN BRIDGE CAPITAL, INC. AND
SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH
FLOWS (unaudited)
|
Three Months Ended March 31, |
|
|
2021 |
|
|
2020 |
Cash flows
from operating activities: |
|
|
|
Net income |
$ |
1,105,869 |
|
$ |
1,016,222 |
Adjustments to reconcile net income to net cash provided
by operating activities - |
|
|
|
Amortization of deferred financing costs |
|
24,263 |
|
|
24,375 |
Adjustment to operating lease right-of-use asset and liability |
|
1,192 |
|
|
(261) |
Depreciation |
|
587 |
|
|
283 |
Non-cash compensation expense |
|
3,266 |
|
|
3,266 |
Changes in operating assets and liabilities: |
|
|
|
Interest receivable on loans |
|
(87,896) |
|
|
(40,922) |
Other assets |
|
(14,998) |
|
|
(19,683) |
Accounts payable and accrued expenses |
|
(38,587) |
|
|
13,463 |
Deferred origination fees |
|
71,289 |
|
|
132,369 |
Net cash provided by operating activities |
|
1,064,985 |
|
|
1,129,112 |
|
|
|
|
Cash flows
from investing activities: |
|
|
|
Issuance of short term loans |
|
(9,659,678) |
|
|
(16,082,435) |
Collections received from loans |
|
9,267,410 |
|
|
12,753,380 |
Release of loan holdback relating to mortgage receivable |
|
--- |
|
|
(15,000) |
Purchase of fixed assets |
|
--- |
|
|
(923) |
Net cash used in investing activities |
|
(392,268) |
|
|
(3,344,978) |
|
|
|
|
Cash flows
from financing activities: |
|
|
|
Proceeds from line of credit, net |
|
132,174 |
|
|
3,627,220 |
Dividend paid |
|
(1,058,194) |
|
|
(1,159,061) |
Purchase of treasury shares |
|
--- |
|
|
(131,036) |
Deferred financing costs incurred |
|
--- |
|
|
(27,102) |
Net cash (used in) provided by financing activities |
|
(926,020) |
|
|
2,310,021 |
|
|
|
|
Net
(decrease) increase in cash |
|
(253,303) |
|
|
94,155 |
Cash and
restricted cash, beginning of year |
|
459,137 |
|
|
118,407 |
Cash and
restricted cash, end of period |
$ |
205,834 |
|
$ |
212,562 |
Supplemental
Cash Flow Information: |
|
|
|
Interest paid during the period |
$ |
302,160 |
|
$ |
328,871 |
Operating
leases paid during the period |
$ |
15,849 |
|
$ |
13,604 |
|
|
|
|
SOURCE: Manhattan Bridge Capital, Inc.
Contact:
Assaf Ran, CEO
Vanessa Kao, CFO
(516) 444-3400
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