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Manhattan Bridge Capital, Inc. Reports First Quarter 2021 Results

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Manhattan Bridge Capital, Inc.
·9 min read
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GREAT NECK, N.Y., April 14, 2021 (GLOBE NEWSWIRE) -- 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

Additional
Paid-in

Capital

Treasury Stock

(Accumulated
Deficit)

Retained
Earnings

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

Additional
Paid-in

Capital

Treasury Stock

(Accumulated
Deficit)

Retained
Earnings

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: Contact: Assaf Ran, CEO Vanessa Kao, CFO (516) 444-3400