Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that
net income for the year ended December 31, 2019 was approximately
$4,495,000, or $0.47 per share (based on approximately 9.7 million
weighted-average outstanding common shares), versus approximately
$4,204,000, or $0.48 per share (based on approximately 8.8 million
weighted-average outstanding common shares) for the year ended
December 31, 2018, an increase of $291,000 or 7.0%. This increase
in net income was mainly due to an increase in operating income and
decreases in interest and payroll expenses.
Total revenue for the year ended December 31,
2019 was approximately $7,340,000 compared to approximately
$7,225,000 for the year ended December 31, 2018, an increase of
$115,000 or 1.6%. The increase in revenue was primarily
attributable to an increase in origination fees resulting from an
increase in the rate of loan turnover. In 2019, approximately
$6,186,000 of our revenue represents interest income on secured,
real estate loans that we offer to small businesses compared to
approximately $6,168,000 in 2018, and approximately $1,154,000
represents origination fees on such loans compared to approximately
$1,057,000 in 2018.
Total operating costs and expenses for the year
ended December 31, 2019 were approximately $2,842,000 compared to
approximately $3,022,000 for the year ended December 31, 2018, a
decrease of $180,000 or 6.0%. The decrease in operating costs and
expenses is primarily attributable to an annual bonus paid to
officers in 2018 which was not repeated in 2019, a voluntary waiver
from the Company’s CEO forgoing his base salary for the months of
November and December 2019, and decreased interest expense due to
lower LIBOR rates.
As of December 31, 2019, total shareholders'
equity was approximately $31,943,000 compared to approximately
$32,081,000 as of December 31, 2018.
Effective February 25, 2020, the Company amended
its existing credit line agreement with Webster Business Credit
Corporation, Flushing Bank, and Mizrahi Tefahot Bank Ltd. to
further increase its credit line from $25 million to $32.5 million
and extend its term to February 28, 2023.
On February 26, 2020, our Board of Directors
authorized a share buy back program for the Company to purchase up
to 100,000 of its common shares in the next twelve months. As of
March 12, 2020, the Company has purchased a total of 18,786 common
shares under this share buy back program, at an aggregate cost of
approximately $102,000.
Assaf Ran, Chairman of the Board and CEO,
stated, “During 2019, typical interest rates charged by hard money
lenders dropped from 12% to 10%. Our challenge was to maintain
revenue and net income without compromising our quality standards.
We believe that we managed to achieve that. While due to the
reduction of interest rates and the general slowdown in the real
estate markets, our growth rate declined, we’re proud to present
another year of no defaults in our portfolio.”
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 the potential repurchase of our
shares, 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,
2019 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, 2019 AND 2018
|
2019 |
|
|
2018 |
|
Assets |
|
|
|
|
|
Loans receivable |
$ |
53,485,014 |
|
|
$ |
54,836,127 |
|
Interest receivable on
loans |
|
675,996 |
|
|
|
596,777 |
|
Cash |
|
118,407 |
|
|
|
203,682 |
|
Cash - restricted |
|
--- |
|
|
|
151,375 |
|
Other assets |
|
53,218 |
|
|
|
73,131 |
|
Operating lease right-of-use
asset, net |
|
87,754 |
|
|
|
--- |
|
Deferred financing costs |
|
22,637 |
|
|
|
42,040 |
|
Total assets |
$ |
54,443,026 |
|
|
$ |
55,903,132 |
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Line of credit |
$ |
15,232,993 |
|
|
$ |
16,622,147 |
|
Senior secured notes (net of
deferred financing costs of $472,413 and $547,499) |
|
5,527,587 |
|
|
|
5,452,501 |
|
Deferred origination fees |
|
322,119 |
|
|
|
404,676 |
|
Accounts payable and accrued
expenses |
|
151,823 |
|
|
|
183,716 |
|
Operating lease liability |
|
91,025 |
|
|
|
--- |
|
Other liabilities |
|
15,000 |
|
|
|
--- |
|
Dividends payable |
|
1,159,061 |
|
|
|
1,158,717 |
|
Total liabilities |
|
22,499,608 |
|
|
|
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; 9,882,058 and 9,874,191
issued, respectively; 9,658,844 and 9,655,977 outstanding,
respectively |
|
9,882 |
|
|
|
9,874 |
|
Additional paid-in
capital |
|
33,144,032 |
|
|
|
33,110,536 |
|
Treasury stock, at cost –
223,214 and 218,214 shares |
|
(619,688 |
) |
|
|
(590,234 |
) |
Accumulated deficit |
|
(590,808 |
) |
|
|
(448,801 |
) |
Total stockholders’ equity |
|
31,943,418 |
|
|
|
32,081,375 |
|
Total liabilities and
stockholders’ equity |
$ |
54,443,026 |
|
|
$ |
55,903,132 |
|
MANHATTAN BRIDGE CAPITAL, INC. AND
SUBSIDIARYCONSOLIDATED STATEMENTS OF
OPERATIONSFOR THE YEARS ENDED DECEMBER 31, 2019
AND 2018
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
Interest income from
loans |
$ |
6,185,764 |
|
|
$ |
6,167,600 |
|
Origination fees |
|
1,153,941 |
|
|
|
1,056,962 |
|
Total revenue |
|
7,339,705 |
|
|
|
7,224,562 |
|
Operating costs and
expenses: |
|
|
|
Interest and amortization of
deferred financing costs |
|
1,635,134 |
|
|
|
1,699,064 |
|
Referral fees |
|
3,750 |
|
|
|
1,708 |
|
General and administrative
expenses |
|
1,202,739 |
|
|
|
1,321,724 |
|
Total operating costs and expenses |
|
2,841,623 |
|
|
|
3,022,496 |
|
|
|
|
|
Income from operations |
|
4,498,082 |
|
|
|
4,202,066 |
|
Other income |
|
12,000 |
|
|
|
3,000 |
|
Loss on write-off of
investment in privately held company |
|
(15,000 |
) |
|
|
--- |
|
Income before income tax
expense |
|
4,495,082 |
|
|
|
4,205,066 |
|
Income tax expense |
|
(572 |
) |
|
|
(642 |
) |
Net income |
$ |
4,494,510 |
|
|
$ |
4,204,424 |
|
|
|
|
|
Basic and diluted net income
per common share outstanding: |
|
|
|
--Basic |
$ |
0.47 |
|
|
$ |
0.48 |
|
--Diluted |
$ |
0.47 |
|
|
$ |
0.48 |
|
|
|
|
|
Weighted average number of
common shares outstanding |
|
|
|
--Basic |
|
9,658,147 |
|
|
|
8,792,207 |
|
--Diluted |
|
9,659,285 |
|
|
|
8,799,044 |
|
MANHATTAN BRIDGE CAPITAL, INC. AND
SUBSIDIARYCONSOLIDATED STATEMENTS OF CHANGES IN
STOCKHOLDERS’ EQUITYFOR THE YEARS ENDED DECEMBER
31, 2019 AND 2018
|
Common Stock |
Additional
Paid-inCapital |
Treasury Stock |
Accumulated Deficit |
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 |
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 |
Exercise of warrants and options |
7,867 |
8 |
20,432 |
|
|
|
20,440 |
Non cash compensation |
|
|
13,064 |
|
|
|
13,064 |
Purchase of treasury shares |
|
|
|
5,000 |
(29,454) |
|
(29,454) |
Dividends paid |
|
|
|
|
|
(3,477,456) |
(3,477,456) |
Dividends declared and payable |
|
|
|
|
|
(1,159,061) |
(1,159,061) |
Net income for the year ended December 31, 2019 |
|
|
|
|
|
4,494,510 |
4,494,510 |
Balance, December 31, 2019 |
9,882,058 |
$9,882 |
$33,144,032 |
223,214 |
$(619,688) |
$(590,808) |
$31,943,418 |
MANHATTAN BRIDGE CAPITAL, INC. AND
SUBSIDIARYCONSOLIDATED STATEMENTS OF CASH
FLOWSFOR THE YEARS ENDED DECEMBER 31, 2019 AND
2018
|
|
2019 |
|
|
|
2018 |
|
Cash flows from operating
activities: |
|
|
|
|
|
|
|
Net income |
$ |
4,494,510 |
|
|
$ |
4,204,424 |
|
Adjustments to reconcile net income to net cash provided by
operating activities - |
|
|
|
|
|
|
|
Amortization of deferred financing costs |
|
94,489 |
|
|
|
98,695 |
|
Depreciation |
|
1,414 |
|
|
|
3,711 |
|
Non cash compensation expense |
|
13,064 |
|
|
|
13,065 |
|
Loss on write-off of investment in privately held company |
|
15,000 |
|
|
|
--- |
|
Adjustment to operating lease right-of-use asset and liability |
|
3,271 |
|
|
|
--- |
|
Changes in operating assets and liabilities |
|
|
|
|
|
|
|
Interest receivable on loans |
|
(79,219 |
) |
|
|
(61,732 |
) |
Other assets |
|
3,499 |
|
|
|
(19,753 |
) |
Accounts payable and accrued expenses |
|
(31,893 |
) |
|
|
16,157 |
|
Deferred origination fees |
|
(82,557 |
) |
|
|
106,205 |
|
Net cash provided by operating activities |
|
4,431,578 |
|
|
|
4,360,772 |
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities: |
|
|
|
|
|
|
|
Issuance of short term loans |
|
(48,053,965 |
) |
|
|
(51,859,000 |
) |
Collections received from loans |
|
49,420,078 |
|
|
|
42,146,873 |
|
Purchase of fixed assets |
|
--- |
|
|
|
(1,148 |
) |
Net cash provided by (used in) investing activities |
|
1,366,113 |
|
|
|
(9,713,275 |
) |
Cash flows from financing
activities: |
|
|
|
|
|
|
|
Repayments of proceeds from line of credit, net |
|
(1,389,154 |
) |
|
|
(292,447 |
) |
Proceeds from public offering, net |
|
--- |
|
|
|
9,882,780 |
|
Dividends paid |
|
(4,636,173 |
) |
|
|
(3,998,825 |
) |
Proceeds from exercise of stock options and warrants |
|
20,440 |
|
|
|
48,735 |
|
Purchase of treasury shares |
|
(29,454 |
) |
|
|
(48,743 |
) |
Deferred financing costs incurred |
|
--- |
|
|
|
(20,381 |
) |
Net cash (used in) provided by financing activities |
|
(6,034,341 |
) |
|
|
5,571,119 |
|
|
|
|
|
|
|
|
|
Net (decrease) increase in
cash and restricted cash |
|
(236,650 |
) |
|
|
218,616 |
|
Cash and restricted cash,
beginning of year |
|
355,057 |
|
|
|
136,441 |
|
Cash and restricted cash, end
of year |
$ |
118,407 |
|
|
$ |
355,057 |
|
|
|
|
|
|
|
|
|
Supplemental Cash Flow
Information: |
|
|
|
|
|
|
|
Taxes paid during the
year |
$ |
572 |
|
|
$ |
642 |
|
Interest paid during the
year |
$ |
1,560,644 |
|
|
$ |
1,584,508 |
|
Operating leases paid during
the year |
$ |
52,571 |
|
|
$ |
50,096 |
|
|
|
|
|
|
|
|
|
Supplemental Information –
Noncash Information: |
|
|
|
|
|
|
|
Dividend declared and
payable |
$ |
1,159,061 |
|
|
$ |
1,158,717 |
|
Establishment of right-of-use
asset and operating lease liability |
$ |
135,270 |
|
|
$ |
--- |
|
Loan holdback relating to
mortgage receivable |
$ |
15,000 |
|
|
$ |
--- |
|
SOURCE: Manhattan Bridge Capital, Inc.
Contact:
Assaf Ran, CEO
Vanessa Kao, CFO
(516) 444-3400
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