Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that
net income for the year ended December 31, 2018 was approximately
$4,204,000, or $0.48 per share (based on approximately 8.8 million
weighted-average outstanding common shares), versus approximately
$3,439,000, or $0.42 per share (based on approximately 8.1 million
weighted-average outstanding common shares) for the year ended
December 31, 2017, an increase of $765,000 or 22.2%. This increase
in net income was mainly due to an increase in operating income as
a result of increased lending activity.
Total revenue for the year ended December 31,
2018 was approximately $7,225,000 compared to approximately
$5,919,000 for the year ended December 31, 2017, an increase of
$1,306,000 or 22.1%. The increase in revenue represents an increase
in lending operations. In 2018, approximately $6,168,000 of the
Company’s revenue represents interest income on secured, commercial
loans that the Company offers to small businesses compared to
approximately $5,016,000 in 2017, and approximately $1,057,000
represents origination fees on such loans compared to approximately
$903,000 in 2017.
Total operating costs and expenses for the year
ended December 31, 2018 were approximately $3,022,000 compared to
approximately $2,457,000 for the year ended December 31, 2017, an
increase of $565,000 or 23.0%. The increase in operating costs and
expenses is primarily attributable to an increase in interest
expense resulting from the Company’s use of a line of credit in
order to increase its ability to make loans.
As of December 31, 2018, total shareholders'
equity was approximately $32,081,000 compared to approximately
$22,247,000 as of December 31, 2017, an increase of $9,834,000, or
44.2%.
Assaf Ran, Chairman of the Board and CEO,
stated, “Our challenge for 2018 was to continue to grow while
avoiding the new loose standards set by some of our competitors. We
believe that thanks to our solid position in the market-place as
well as our strong reputation, we managed to achieve that goal. I'm
proud to present another year of record high revenue, record high
net earnings and no defaults.”
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 solid position in the market-place
as well as our strong reputation, 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
SHEETSDECEMBER 31, 2018 AND 2017
|
|
2018 |
|
|
2017 |
Assets |
|
|
|
|
|
Loans
receivable |
$ |
54,836,127 |
|
$ |
45,124,000 |
Interest
receivable on loans |
|
596,777 |
|
|
535,045 |
Cash |
|
203,682 |
|
|
136,441 |
Cash -
restricted |
|
151,375 |
|
|
--- |
Deferred
financing costs |
|
42,040 |
|
|
45,269 |
Other
assets |
|
73,131 |
|
|
55,941 |
Total
assets |
$ |
55,903,132 |
|
$ |
45,896,696 |
Liabilities and Stockholders’ Equity
Liabilities: |
|
|
|
Line of credit |
$ |
16,622,147 |
|
$ |
16,914,594 |
Senior secured notes
(net of deferred financing costs of |
|
|
|
|
|
$547,499 and
$622,584) |
|
5,452,501 |
|
|
5,377,416 |
Deferred origination
fees |
|
404,676 |
|
|
298,471 |
Accounts payable and
accrued expenses |
|
183,716 |
|
|
167,559 |
Dividends payable |
|
1,158,717 |
|
|
891,983 |
Total
liabilities |
|
23,821,757 |
|
|
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 authorized; |
|
|
|
|
|
9,874,191
and 8,319,036 issued; 9,655,977 and |
|
|
|
|
|
8,108,934
outstanding |
|
9,874 |
|
|
8,319 |
Additional paid-in
capital |
|
33,110,536 |
|
|
23,167,511 |
Treasury stock, at cost
– 218,214 and 210,102 shares |
|
(590,234) |
|
|
(541,491) |
Accumulated
deficit |
|
(448,801) |
|
|
(387,666) |
Total
stockholders’ equity |
|
32,081,375 |
|
|
22,246,673 |
Total liabilities and
stockholders’ equity |
$ |
55,903,132 |
|
$ |
45,896,696 |
MANHATTAN BRIDGE CAPITAL, INC. AND
SUBSIDIARYCONSOLIDATED STATEMENTS OF
OPERATIONSFOR THE YEARS ENDED DECEMBER 31, 2018
AND 2017
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
Interest income from
loans |
$ |
6,167,600 |
|
|
$ |
5,015,987 |
|
Origination fees |
|
1,056,962 |
|
|
|
902,950 |
|
Total Revenue |
|
7,224,562 |
|
|
|
5,918,937 |
|
|
|
|
|
Operating costs and
expenses: |
|
|
|
Interest and
amortization of deferred financing costs |
|
1,699,064 |
|
|
|
1,226,728 |
|
Referral fees |
|
1,708 |
|
|
|
3,701 |
|
General and
administrative expenses |
|
1,321,724 |
|
|
|
1,227,003 |
|
Total
operating costs and expenses |
|
3,022,496 |
|
|
|
2,457,432 |
|
|
|
|
|
Income from
operations |
|
4,202,066 |
|
|
|
3,461,505 |
|
Other income |
|
3,000 |
|
|
|
--- |
|
Loss on write-down of
investment in privately held |
|
|
|
|
|
|
|
company |
|
--- |
|
|
|
(20,000) |
|
Income before income
tax expense |
|
4,205,066 |
|
|
|
3,441,505 |
|
Income tax expense |
|
(642 |
) |
|
|
(2,971 |
) |
Net income |
$ |
4,204,424 |
|
|
$ |
3,438,534 |
|
|
|
|
|
Basic and diluted net
income per common share |
|
|
|
--Basic |
$ |
0.48 |
|
|
$ |
0.42 |
|
--Diluted |
$ |
0.48 |
|
|
$ |
0.42 |
|
|
|
|
|
Weighted average number
of common shares |
|
|
|
outstanding |
|
|
|
--Basic |
|
8,792,207 |
|
|
|
8,117,280 |
|
--Diluted |
|
8,799,044 |
|
|
|
8,128,685 |
|
MANHATTAN BRIDGE CAPITAL, INC. AND
SUBSIDIARYCONSOLIDATED STATEMENTS OF CHANGES IN
STOCKHOLDERS’ EQUITYFOR THE YEARS ENDED DECEMBER
31, 2018 AND 2017
|
Common Stock |
Additional
Paid-inCapital |
Treasury Stock |
Accumulated Deficit |
Totals |
|
|
|
|
|
|
|
Shares |
Amount |
|
Shares |
Cost |
|
|
Balance, January 1, 2017 |
8,312,036 |
$8,312 |
$23,134,013 |
177,000 |
$(369,335) |
$(459,100) |
$
22,313,890 |
Exercise of options |
7,000 |
7 |
20,433 |
|
|
|
20,440 |
Non cash compensation |
|
|
13,065 |
|
|
|
13,065 |
Purchase of treasury shares |
|
|
|
33,102 |
(172,156) |
|
(172,156) |
Dividends paid |
|
|
|
|
|
(2,475,117) |
(2,475,117) |
Dividends declared andpayable |
|
|
|
|
|
(891,983) |
(891,983) |
Net income for the year ended December 31, 2017 |
|
|
|
|
|
3,438,534 |
3,438,534 |
Balance, December 31, 2017 |
8,319,036 |
8,319 |
23,167,511 |
210,102 |
(541,491) |
(387,666) |
22,246,673 |
Public offering |
1,545,786 |
1,546 |
9,881,234 |
|
|
|
9,882,780 |
Exercise of warrants |
9,369 |
9 |
48,726 |
|
|
|
48,735 |
Non cash compensation |
|
|
13,065 |
|
|
|
13,065 |
Purchase of treasury shares |
|
|
|
8,112 |
(48,743) |
|
(48,743) |
Dividends paid |
|
|
|
|
|
(3,106,842) |
(3,106,842) |
Dividends declared and payable |
|
|
|
|
|
(1,158,717) |
(1,158,717) |
Net income for the year ended December 31, 2018 |
|
|
|
|
|
4,204,424 |
4,204,424 |
Balance, December 31, 2018 |
9,874,191 |
$9,874 |
$33,110,536 |
218,214 |
$(590,234) |
$(448,801) |
$
32,081,375 |
MANHATTAN BRIDGE CAPITAL, INC. AND
SUBSIDIARYCONSOLIDATED STATEMENTS OF CASH
FLOWSFOR THE YEARS ENDED DECEMBER 31, 2018 AND
2017
|
|
2018 |
|
|
|
2017 |
|
Cash flows from
operating activities: |
|
|
|
|
|
|
|
Net
income |
$ |
4,204,424 |
|
|
$ |
3,438,534 |
|
Adjustments to reconcile net income to net cash provided by
operating |
|
|
|
activities - |
|
|
|
Amortization of deferred financing costs |
|
98,695 |
|
|
|
129,131 |
|
Depreciation |
|
3,711 |
|
|
|
4,595 |
|
Non cash
compensation expense |
|
13,065 |
|
|
|
13,065 |
|
Loss on
write-down of investment in privately held company |
|
--- |
|
|
|
20,000 |
|
Changes
in operating assets and liabilities |
|
|
|
Interest
receivable on loans |
|
(61,732) |
|
|
|
(188,526) |
|
Other
current and non current assets |
|
(19,753) |
|
|
|
323 |
|
Accounts
payable and accrued expenses |
|
16,157 |
|
|
|
62,019 |
|
Deferred
origination fees |
|
106,205 |
|
|
|
(16,940) |
|
Net cash
provided by operating activities |
|
4,360,772 |
|
|
|
3,462,201 |
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
Issuance
of short term loans |
|
(51,859,000) |
|
|
|
(37,871,500) |
|
Collections received from loans |
|
42,146,873 |
|
|
|
27,502,820 |
|
Purchase
of fixed assets |
|
(1,148) |
|
|
|
(1,666) |
|
Net cash
used in investing activities |
|
(9,713,275) |
|
|
|
(10,370,346) |
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
Proceeds
from public offering, net |
|
9,882,780 |
|
|
|
--- |
|
(Repayments of) proceeds from line of credit, net |
|
(292,447) |
|
|
|
10,431,746 |
|
Dividends
paid |
|
(3,998,825) |
|
|
|
(3,288,621) |
|
Proceeds
from exercise of stock options and warrants |
|
48,735 |
|
|
|
20,440 |
|
Purchase
of treasury shares |
|
(48,743) |
|
|
|
(172,156) |
|
Deferred
financing costs incurred |
|
(20,381) |
|
|
|
(43,122) |
|
Net cash
provided by financing activities |
|
5,571,119 |
|
|
|
6,948,287 |
|
|
|
|
|
Net increase in cash
and restricted cash |
|
218,616 |
|
|
|
40,142 |
|
Cash and restricted
cash, beginning of year |
|
136,441 |
|
|
|
96,299 |
|
Cash and restricted
cash, end of year |
$ |
355,057 |
|
|
$ |
136,441 |
|
|
|
|
|
Supplemental Cash Flow
Information: |
|
|
|
Taxes paid during the
year |
$ |
642 |
|
|
$ |
2,971 |
|
Interest paid during
the year |
$ |
1,584,508 |
|
|
$ |
1,034,097 |
|
|
|
|
|
Supplement Information
– Noncash Information:Dividend declared and payable |
$ |
1,158,717 |
|
|
$ |
891,983 |
|
Contact:
Assaf Ran, CEO
Vanessa Kao, CFO
(516) 444-3400
SOURCE: Manhattan Bridge Capital, Inc.
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