Manhattan Bridge Capital, Inc. Reports First Quarter 2019 Results
April 15 2019 - 7:05AM
Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that
net income for the three months ended March 31, 2019 was
approximately $1,121,000, or $0.12 per basic and diluted share
(based on approximately 9.7 million weighted-average outstanding
common shares), versus approximately $981,000, or $0.12 per basic
and diluted share (based on approximately 8.1 million
weighted-average outstanding common shares), an increase of
$140,000, or 14.3%. This increase is primarily attributable to an
increase in revenue.
Total revenue for the three months ended March
31, 2019 was approximately $1,788,000 compared to approximately
$1,664,000 for the three months ended March 31, 2018, an increase
of $124,000, or 7.4%. The increase in revenue was due to an
increase in lending operations. For the three months ended March
31, 2019, approximately $1,503,000 of our revenue represents
interest income on secured commercial loans that we offer to small
businesses, compared to approximately $1,429,000 for the same
period in 2018, and approximately $285,000 and $235,000,
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, 2019, total shareholders' equity
was approximately $33,221,000.
Assaf Ran, Chairman of the Board and CEO,
stated, “The New York real estate market is slow and uncertain.
Yet, we manage to collect interest and principal balances at a
normal pace. We believe that is a strong indication that our
portfolio is solid and that our business model works. The challenge
now is to redeploy funds into new loans without compromising our
standards. We are working hard to meet this challenge and to
continue our track record of 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 belief that our portfolio is solid
and that our business model works as well as continuing our track
record, 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
Assets |
March 31,
2019(unaudited) |
|
December 31, 2018
(audited) |
Loans receivable |
$ |
54,793,194 |
|
$ |
54,836,127 |
Interest
receivable on loans |
|
582,422 |
|
|
596,777 |
Cash |
|
174,622 |
|
|
203,682 |
Cash -
restricted |
|
--- |
|
|
151,375 |
Operating
lease right-of-use asset, net |
|
124,801 |
|
|
--- |
Other
assets |
|
87,359 |
|
|
73,131 |
Deferred
financing costs |
|
37,190 |
|
|
42,040 |
Total
assets |
$ |
55,799,588 |
|
$ |
55,903,132 |
Liabilities and Stockholders’
Equity |
|
|
|
Liabilities: |
|
|
|
Line of credit |
$ |
16,417,161 |
|
$ |
16,622,147 |
Senior secured notes (net of deferred financing
costs of $528,728 and $547,499) |
|
5,471,272 |
|
|
5,452,501 |
Deferred origination fees |
|
422,082 |
|
|
404,676 |
Accounts payable and accrued expenses |
|
143,478 |
|
|
183,716 |
Operating lease liability |
|
124,801 |
|
|
--- |
Dividends payable |
|
--- |
|
|
1,158,717 |
Total liabilities |
|
22,578,794 |
|
|
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;
9,661,977 and 9,655,977 outstanding, respectively |
|
9,881 |
|
|
9,874 |
Additional paid-in capital |
|
33,134,235 |
|
|
33,110,536 |
Treasury stock, at cost – 219,214 and 218,214
shares |
|
(595,878) |
|
|
(590,234) |
Retained earnings (accumulated deficit) |
|
672,556 |
|
|
(448,801) |
Total
stockholders’ equity |
|
33,220,794 |
|
|
32,081,375 |
Total liabilities and stockholders’ equity |
$ |
55,799,588 |
|
$ |
55,903,132 |
MANHATTAN BRIDGE CAPITAL, INC. AND
SUBSIDIARYCONSOLIDATED STATEMENTS OF
OPERATIONS (unaudited)
|
Three Months Ended March
31, |
|
2019 |
|
|
2018 |
|
|
|
|
|
|
Interest income from
loans |
$ |
1,503,085 |
|
$ |
1,429,249 |
Origination fees |
|
284,974 |
|
|
235,226 |
Total
revenue |
|
1,788,059 |
|
|
1,664,475 |
Operating costs and
expenses: |
|
|
Interest and amortization
of deferred financing costs |
|
378,882 |
|
|
397,705 |
Referral fees |
|
2,083 |
|
|
333 |
General and administrative
expenses |
|
288,737 |
|
|
285,519 |
Total
operating costs and expenses |
|
669,702 |
|
|
683,557 |
|
|
|
Income from
operations |
|
1,118,357 |
|
|
980,918 |
Other income |
|
3,000 |
|
|
--- |
Net income |
$ |
1,121,357 |
|
$ |
980,918 |
|
|
|
Basic and diluted net
income per common share outstanding: |
|
|
--Basic |
$ |
0.12 |
|
$ |
0.12 |
--Diluted |
$ |
0.12 |
|
$ |
0.12 |
|
|
|
Weighted average number of
common shares outstanding: |
|
|
--Basic |
|
9,655,781 |
|
|
8,108,934 |
--Diluted |
|
9,658,160 |
|
|
8,121,728 |
MANHATTAN BRIDGE CAPITAL, INC. AND
SUBSIDIARYCONSOLIDATED STATEMENTS OF CASH
FLOWS(unaudited)
|
|
Three Months Ended March
31, |
|
|
2019 |
|
2018 |
|
|
|
|
|
Cash flows from
operating activities: |
|
|
|
|
Net
income |
|
$ |
1,121,357 |
|
$ |
980,918 |
Adjustments to reconcile net income to net cash provided
by operating activities - |
|
|
|
|
Amortization of deferred financing costs |
|
|
23,622 |
|
|
29,739 |
Depreciation |
|
|
431 |
|
|
1,146 |
Non-cash
compensation expense |
|
|
3,266 |
|
|
3,266 |
Changes
in operating assets and liabilities: |
|
|
|
|
Interest
receivable on loans |
|
|
14,355 |
|
|
37,068 |
Other
assets |
|
|
(14,659) |
|
|
(27,088) |
Accounts
payable and accrued expenses |
|
|
(40,238) |
|
|
(23,286) |
Deferred
origination fees |
|
|
17,406 |
|
|
22,252 |
Net cash
provided by operating activities |
|
|
1,125,540 |
|
|
1,024,015 |
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
Issuance
of short term loans |
|
|
(13,325,965) |
|
|
(11,000,000) |
Collections received from loans |
|
|
13,368,898 |
|
|
10,067,500 |
Net cash
provided by (used in) investing activities |
|
|
42,933 |
|
|
(932,500) |
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
Dividend
paid |
|
|
(1,158,717) |
|
|
(891,983) |
(Repayment of) proceeds from line of credit, net |
|
|
(204,986) |
|
|
849,559 |
Purchase
of treasury shares |
|
|
(5,645) |
|
|
--- |
Proceeds
from exercise of stock options |
|
|
20,440 |
|
|
--- |
Net cash
used in financing activities |
|
|
(1,348,908) |
|
|
(42,424) |
|
|
|
|
|
Net (decrease) increase
in cash and restricted cash |
|
|
(180,435) |
|
|
49,091 |
Cash and restricted
cash, beginning of period |
|
|
355,057 |
|
|
136,441 |
Cash and restricted
cash, end of period |
|
$ |
174,622 |
|
$ |
185,532 |
|
|
|
|
|
Supplemental Cash Flow
Information: |
|
|
|
|
Interest paid during
the period |
|
$ |
370,621 |
|
$ |
364,292 |
|
|
|
|
|
Non-cash Investing
Activities: |
|
|
|
|
Operating lease
right-of-use asset |
|
$ |
124,801 |
|
$ |
--- |
Operating lease
liability |
|
$ |
124,801 |
|
$ |
--- |
Contact:
Assaf Ran, CEO
Vanessa Kao, CFO
(516) 444-3400
SOURCE: Manhattan Bridge Capital, Inc.
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