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Manhattan Bridge Capital, Inc. Reports $0.12 EPS for the Third Quarter

Manhattan Bridge Capital, Inc.
·11-min read

GREAT NECK, N.Y., Oct. 20, 2020 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that its net income for the three months ended September 30, 2020 was approximately $1,151,000, or $0.12 per basic and diluted share (based on approximately 9.6 million weighted-average outstanding common shares), as compared to approximately $1,150,000, or $0.12 per basic and diluted share (based on approximately 9.7 million weighted-average outstanding common shares), for the three months ended September 30, 2019.

Total revenues for the three months ended September 30, 2020 were approximately $1,786,000, as compared to approximately $1,917,000 for the three months ended September 30, 2019, a decrease of $131,000 or 6.8%. The decrease in revenue was primarily attributable to lower interest rates and origination fees charged on loans due to market conditions and intense competition from other lenders, as well as lower demand for new loans resulting from the COVID-19 pandemic. For the three months ended September 30, 2020 and 2019, approximately $1,521,000 and $1,619,000, respectively, of our revenues were attributable to interest income on secured commercial loans that we offer to small businesses, and approximately $265,000 and $298,000, respectively, of our revenues were attributable to origination fees on such loans.

Net income for the nine months ended September 30, 2020 was approximately $3,264,000, or $0.34 per basic and diluted share (based on approximately 9.6 million weighted-average outstanding common shares), as compared to approximately $3,355,000, or $0.35 per basic and diluted share (based on approximately 9.7 million weighted-average outstanding common shares), for the nine months ended September 30, 2019, a decrease of $91,000, or 2.7%. This decrease is primarily attributable to the decrease in revenue, partially offset by the decrease in interest expense.

Total revenues for the nine months ended September 30, 2020 were approximately $5,239,000, as compared to approximately $5,484,000 for the nine months ended September 30, 2019, a decrease of $245,000, or 4.5%. The decrease in revenue was primarily attributable to lower interest rates and origination fees charged on loans due to market conditions and intense competition from other lenders, as well as lower demand for new loans resulting from the COVID-19 pandemic. For the nine months ended September 30, 2020 and 2019, revenues of approximately $4,485,000 and $4,609,000, respectively, were attributable to interest income on the secured commercial loans that we offer to small businesses, and approximately $753,000 and $875,000, respectively, of our revenues were attributable to origination fees on such loans.

Assaf Ran, Chairman of the Board and CEO, stated, “I am pleased to report that our conservative and careful policies have once again proven to protect our shareholders’ value during rough times. Not only do we continue to have no defaults, but we also managed to increase our earnings per share (EPS) to $0.12 for the quarter from $0.11 for the quarter ended June 30, 2020, and to continue distributing dividends during the difficult time we are experiencing due to the COVID-19 crisis.”

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 our belief that our conservative and careful policies have protected our shareholders’ value during rough times, 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, 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 SUBSIDIARY
CONSOLIDATED BALANCE SHEETS

September 30, 2020

December 31, 2019

(unaudited)

(audited)

Assets

Loans receivable

$

57,883,068

$

53,485,014

Interest receivable on loans

809,975

675,996

Cash

156,715

118,407

Other assets

88,554

53,218

Operating lease right-of-use asset, net

52,627

87,754

Deferred financing costs

29,917

22,637

Total assets

$

59,020,856

$

54,443,026


Liabilities and Stockholders’ Equity

Liabilities:

Line of credit

$

19,779,851

$

15,232,993

Senior secured notes (net of deferred financing costs of
$416,099 and $472,413, respectively)

5,583,901

5,527,587

Deferred origination fees

452,914

322,119

Accounts payable and accrued expenses

132,582

151,823

Operating lease liability

55,566

91,025

Other liabilities

---

15,000

Dividends payable

---

1,159,061

Total liabilities

26,004,814

22,499,608



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 issued; 9,619,945 and 9,658,844
outstanding, respectively

9,882

9,882

Additional paid-in capital

33,153,830

33,144,032

Treasury stock, at cost – 262,113 and 223,214 shares

(798,939

)

(619,688

)

Retained earnings (accumulated deficit)

651,269

(590,808

)

Total stockholders’ equity

33,016,042

31,943,418

Total liabilities and stockholders’ equity

$

59,020,856

$

54,443,026



MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)

Three Months

Nine Months

Ended September 30,

Ended September 30,

2020

2019

2020

2019

Interest income from loans

$

1,521,474

$

1,618,735

$

4,485,414

$

4,608,936

Origination fees

264,878

298,222

753,111

875,449

Total revenue

1,786,352

1,916,957

5,238,525

5,484,385

Operating costs and expenses:

Interest and amortization of debt service
costs

337,901

454,307

1,016,590

1,220,700

Referral fees

1,641

861

3,569

3,569

General and administrative
expenses

305,407

314,820

968,914

913,175

Total operating costs and expenses

644,949

769,988

1,989,073

2,137,444

Income from operations

1,141,403

1,146,969

3,249,452

3,346,941

Other income

9,500

3,000

15,500

9,000

Income before income tax expense

1,150,903

1,149,969

3,264,952

3,355,941

Income tax expense

---

---

(645

)

(572

)

Net income

$

1,150,903

$

1,149,969

$

3,264,307

$

3,355,369

Basic and diluted net income per common share outstanding:

--Basic

$

0.12

$

0.12

$

0.34

$

0.35

--Diluted

$

0.12

$

0.12

$

0.34

$

0.35

Weighted average number of common shares outstanding

--Basic

9,625,140

9,658,608

9,635,107

9,657,911

--Diluted

9,625,140

9,659,764

9,635,107

9,659,012


MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(unaudited)

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2020

Common Shares

Additional Paid in Capital

Treasury Stock

Retained Earnings

Totals

Shares

Amount

Shares

Cost

Balance, July 1, 2020

9,882,058

$

9,882

$

33,150,564

255,213

$

(771,559)

$

463,050

$

32,851,937

Purchase of treasury shares

6,900

(27,380)

(27,380)

Non - cash compensation

3,266

3,266

Dividends paid

(962,684)

(962,684)

Net income

1,150,903

1,150,903

Balance, September 30, 2020

9,882,058

$

9,882

$

33,153,830

262,113

$

(798,939)

$

651,269

$

33,016,042

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2019

Common Shares

Additional Paid in Capital

Treasury Stock

Retained Earnings

Totals

Shares

Amount

Shares

Cost

Balance, July 1, 2019

9,881,191

$

9,881

$

33,137,501

223,214

$

(619,688)

$

597,161

$

33,124,855

Exercise of warrants

867

1

(1)

0

Non-cash compensation

3,266

3,266

Dividends paid

(1,158,957)

(1,158,957)

Net income

1,149,969

1,149,969

Balance, September 30, 2019

9,882,058

$

9,882

$

33,140,766

223,214

$

(619,688)

$

588,173

$

33,119,133

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020

Common Shares

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

9,798

9,798

Purchase of treasury shares

38,899

(179,251)

(179,251)

Dividends paid

(2,022,230)

(2,022,230)

Net income

3,264,307

3,264,307

Balance, September 30, 2020

9,882,058

$

9,882

$

33,153,830

262,113

$

(798,939)

$

651,269

$

33,016,042

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019

Common Shares

Additional Paid in Capital

Treasury Stock

Accumulated Deficit
(Retained Earnings)

Totals

Shares

Amount

Shares

Cost

Balance, January 1, 2019

9,874,191

$

9,874

$

33,110,536

218,214

$

(590,234)

$

(448,801)

$

32,081,375

Exercise of options and warrants

7,867

8

20,432

20,440

Purchase of treasury shares

5,000

(29,454)

(29,454)

Non-cash compensation

9,798

9,798

Dividends paid

(2,318,395)

(2,318,395)

Net income

3,355,369

3,355,369

Balance, September 30, 2019

9,882,058

$

9,882

$

33,140,766

223,214

$

(619,688)

$

588,173

$

33,119,133



MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)

Nine Months
Ended September 30,

Nine Months

Ended September 30,

2020

2019

Cash flows from operating activities:

Net income

$

3,264,307

$

3,355,369

Adjustments to reconcile net income to net cash provided by
operating activities -

Amortization of deferred financing costs

76,136

70,867

Adjustment to operating lease right-of-use asset and liability

(333

)

---

Depreciation

744

1,157

Non-cash compensation expense

9,798

9,798

Changes in operating assets and liabilities:

Interest receivable on loans

(163,650

)

(167,194

)

Other assets

(35,156

)

(26,209

)

Accounts payable and accrued expenses

(19,241

)

(19,134

)

Deferred origination fees

130,795

(461

)

Net cash provided by operating activities

3,263,400

3,224,193

Cash flows from investing activities:

Issuance of short term loans

(35,410,076

)

(38,246,965

)

Collections received from loans

31,041,693

33,375,420

Release of loan holdback relating to mortgage receivable

(15,000

)

---

Purchase of fixed assets

(923

)

---

Net cash used in investing activities

(4,384,306

)

(4,871,545

)

Cash flows from financing activities:

Proceeds from line of credit, net

4,546,858

5,241,895

Dividends paid

(3,181,291

)

(3,477,112

)

Purchase of treasury shares

(179,251

)

(29,454

)

Deferred financing costs incurred

(27,102

)

---

Proceeds from exercise of stock options

---

20,440

Net cash provided by financing activities

1,159,214

1,755,769

Net increase in cash

38,308

108,417

Cash, beginning of period

118,407

355,057

Cash, end of period

$

156,715

$

463,474

Supplemental Cash Flow Information:

Taxes paid during the period

$

645

$

572

Interest paid during the period

$

954,622

$

1,144,425

Operating leases paid during the period

$

40,973

$

39,628

Non-cash Investing Activities:

Establishment of right-of-use asset and operating lease liability

$

---

$

135,270

Interest receivable converted to loans receivable in connection with forbearance agreements

$

29,671

$

---

Loan holdback relating to mortgage receivable

$

---

$

15,000

CONTACT: Contact: Assaf Ran, CEO Vanessa Kao, CFO (516) 444-3400 SOURCE: Manhattan Bridge Capital, Inc.