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Manhattan Bridge Capital, Inc. Reports Second Quarter 2024 Results
Source: Nasdaq GlobeNewswire / 22 Jul 2024 07:05:00 America/New_York
GREAT NECK, N.Y., July 22, 2024 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) (the “Company”) announced today that its total revenues for the three months ended June 30, 2024 were approximately $2,443,000 compared to approximately $2,399,000 for the three months ended June 30, 2023, an increase of $44,000, or 1.8%. The increase in revenue was due to higher interest rates charged on the Company’s commercial loans, partially offset by a reduction in loans receivable, period over period, and reduced origination fees, which were impacted by a slowdown in new loan originations. For the three months ended June 30, 2024 and 2023, approximately $2,033,000 and $1,943,000, respectively, of the Company’s revenues were attributable to interest income on secured commercial loans that the Company offers to real estate investors, and approximately $411,000 and $457,000, respectively, of its revenues were attributable to origination fees on such loans. The loans are principally secured by collateral consisting of real estate and accompanied by personal guarantees from the principals of the borrowers.
Net income for the three months ended June 30, 2024 was approximately $1,409,000, or $0.12 per basic and diluted share (based on approximately 11.44 million weighted-average outstanding common shares), as compared to approximately $1,422,000, or $0.12 per basic and diluted share (based on approximately 11.48 million weighted-average outstanding common shares), for the three months ended June 30, 2023, a decrease of $13,000, or 0.9%.
Total revenues for the six months ended June 30, 2024 were approximately $5,016,000 compared to approximately $4,797,000 for the six months ended June 30, 2023, an increase of $219,000, or 4.6%. The increase in revenue was due to higher interest rates charged on the Company’s commercial loans, partially offset by a reduction in loans receivable, period over period, and reduced origination fees, which were impacted by a slowdown in new loan originations. For the six months ended June 30, 2024 and 2023, revenues of approximately $4,175,000 and $3,896,000, respectively, were attributable to interest income on secured commercial loans that the Company offers to real estate investors, and approximately $841,000 and $901,000, respectively, were attributable to origination fees on such loans. The loans are principally secured by collateral consisting of real estate and accompanied by personal guarantees from the principals of the borrowers.
Net income for the six months ended June 30, 2024 was approximately $2,885,000, or $0.25 per basic and diluted share (based on approximately 11.44 million weighted-average outstanding common shares), as compared to approximately $2,681,000, or $0.23 per basic and diluted share (based on approximately 11.49 million weighted-average outstanding common shares), for the six months ended June 30, 2023, an increase of $204,000, or 7.6%. This increase is primarily attributable to the increase in interest income from loans and the decrease in general and administrative expenses, partially offset by the increase in interest expense.
As of June 30, 2024, total stockholders' equity was approximately $43,184,000.
Assaf Ran, Chairman of the Board and Chief Executive Officer of the Company, stated, “While real estate markets in our geographic areas of operations are still slow and heavy due to the high-interest-rate environment, it seems like prices of real estate properties are holding on and sometimes increasing due to lack of inventory and the impact of inflation. As always, we’re carefully monitoring our portfolio and cherry-picking good opportunities.”
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.
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETSJune 30, 2024 December 31, 2023 Assets (unaudited) (audited) Loans receivable $ 66,859,733 $ 73,048,403 Interest and other fees receivable on loans 1,488,784 1,395,905 Cash 105,929 104,222 Cash - restricted --- 1,587,773 Other assets 134,321 63,636 Right-of-use asset - operating lease, net 180,446 207,364 Deferred financing costs, net 23,101 27,583 Total assets $ 68,792,314 $ 76,434,886 Liabilities and Stockholders’ Equity Liabilities: Line of credit $ 17,345,510 $ 25,152,338 Senior secured notes (net of deferred financing costs of $134,528 and $172,069, respectively) 5,865,472 5,827,931 Deferred origination fees 646,027 719,019 Accounts payable and accrued expenses 242,248 295,292 Operating lease liability 193,800 220,527 Dividends payable 1,315,445 1,287,073 Total liabilities 25,608,502 33,502,180
Commitments and contingenciesStockholders’ equity: Preferred shares - $.01 par value; 5,000,000 shares authorized; none issued --- --- Common shares - $.001 par value; 25,000,000 shares authorized; 11,757,058 issued; 11,438,651 and 11,440,651 outstanding, respectively 11,757 11,757 Additional paid-in capital 45,555,408 45,548,876 Less: Treasury stock, at cost – 318,407 and 316,407 shares, respectively (1,070,406 ) (1,060,606) Accumulated deficit (1,312,947 ) (1,567,321) Total stockholders’ equity 43,183,812 42,932,706 Total liabilities and stockholders’ equity $
68,792,314$
76,434,886
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)Three Months
Ended June 30,Six Months
Ended June 30,2024 2023 2024 2023 Revenue:
Interest income from loans
$
2,032,687
$
1,942,527
$
4,175,174
$
3,896,349Origination fees 410,528 456,835 841,119 900,806 Total revenue 2,443,215 2,399,362 5,016,293 4,797,155 Operating costs and expenses: Interest and amortization of deferred financing costs
603,230
595,427
1,293,819
1,241,690Referral fees 500 1,000 1,000 1,292 General and administrative expenses 434,282 400,979 844,560 897,075 Total operating costs and expenses 1,038,012 997,406 2,139,379 2,140,057 Income from operations 1,405,203 1,401,956 2,876,914 2,657,098 Other income 4,500 20,380 9,000 24,880 Income before income tax expense 1,409,703 1,422,336 2,885,914 2,681,978 Income tax expense (650 ) (650 ) (650 ) (650 ) Net income $ 1,409,053 $ 1,421,686 $ 2,885,264 $ 2,681,328 Basic and diluted net income per common share outstanding: --Basic $ 0.12 $ 0.12 $ 0.25 $ 0.23 --Diluted $ 0.12 $ 0.12 $ 0.25 $ 0.23 Weighted average number of common shares outstanding: --Basic 11,438,651 11,475,406 11,438,662 11,485,116 --Diluted 11,438,651 11,475,406 11,438,662 11,485,116
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(unaudited)
FOR THE THREE MONTHS ENDED JUNE 30, 2024Common Shares Additional Paid in Capital Treasury Stock Accumulated Deficit Totals Shares Amount Shares Cost Balance, April 1, 2024 11,757,058 $11,757 $45,552,142 318,407 $(1,070,406 ) $(1,406,555 ) $43,086,938 Non - cash compensation 3,266 3,266 Dividends declared and payable (1,315,445 ) (1,315,445 ) Net income 1,409,053 1,409,053 Balance, June 30, 2024 11,757,058 $11,757 $45,555,408 318,407 $(1,070,406 ) $(1,312,947 ) $43,183,812
FOR THE THREE MONTHS ENDED JUNE 30, 2024Common Shares Additional Paid in Capital Treasury Stock Accumulated Deficit Totals Shares Amount Shares Cost Balance, April 1, 2023 11,757,058 $11,757 $45,539,077 262,113 $(798,939 ) $(1,918,595 ) $42,833,300 Purchase of treasury shares 33,360 (164,806 ) (164,806 ) Non - cash compensation 3,266 3,266 Dividends declared and payable (1,289,428 ) (1,289,428 ) Net income 1,421,686 1,421,686 Balance, June 30, 2024 11,757,058 $11,757 $45,542,343 295,473 $(963,745 ) $(1,786,337 ) $42,804,018
FOR THE SIX MONTHS ENDED JUNE 30, 2024Common Shares Additional Paid in Capital Treasury Stock Accumulated Deficit Totals Shares Amount Shares Cost Balance, January 1, 2024 11,757,058 $11,757 $45,548,876 316,407 $(1,060,606 ) $(1,567,321 ) $42,932,706 Purchase of treasury shares 2,000 (9,800 ) (9,800 ) Non - cash compensation 6,532 6,532 Dividends paid (1,315,445 ) (1,315,445 ) Dividends declared and payable (1,315,445 ) (1,315,445 ) Net income 2,885,264 2,885,264 Balance, June 30, 2024 11,757,058 $11,757 $45,555,408 318,407 $(1,070,406 ) $(1,312,947 ) $43,183,812
FOR THE SIX MONTHS ENDED JUNE 30, 2024Common Shares Additional Paid in Capital Treasury Stock Accumulated Deficit Totals Shares Amount Shares Cost Balance, January 1, 2023 11,757,058 $11,757 $45,535,811 262,113 $(798,939 ) $(1,885,056 ) $42,863,573 Purchase of treasury shares 33,360 (164,806 ) (164,806 ) Non - cash compensation 6,532 6,532 Dividends paid (1,293,181 ) (1,293,181 ) Dividends declared and payable (1,289,428 ) (1,289,428 ) Net income 2,681,328 2,681,328 Balance, June 30, 2024 11,757,058 $11,757 $45,542,343 295,473 $(963,745 ) $(1,786,337 ) $42,804,018
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)Six Months
Ended June 30,2024 2023 Cash flows from operating activities: Net income $ 2,885,264 $ 2,681,328 Adjustments to reconcile net income to net cash provided by operating activities - Amortization of deferred financing costs 44,191 49,494 Adjustment to right-of-use asset - operating lease and liability 190 1,230 Depreciation 2,209 1,946 Non-cash compensation expense 6,532 6,532 Changes in operating assets and liabilities: Interest and other fees receivable on loans (92,879 ) 89,214 Other assets (71,703 ) (72,115 ) Accounts payable and accrued expenses (53,044 ) (58,132 ) Deferred origination fees (72,992 ) 17,853 Net cash provided by operating activities 2,647,768 2,717,350 Cash flows from investing activities: Issuance of short-term loans (19,677,520 ) (28,122,249 ) Collections received from loans 25,866,190 32,811,877 Purchase of fixed assets (1,191 ) (5,085 ) Net cash provided by investing activities 6,187,479 4,684,543 Cash flows from financing activities: Repayment of line of credit, net (7,806,828 ) (4,323,513 ) Dividends paid (2,602,518 ) (2,730,049 ) Purchase of treasury shares (9,800 ) (164,806 ) Deferred financing costs incurred (2,167 ) (38,191 ) Net cash used in financing activities (10,421,313 ) (7,256,559 ) Net (decrease) increase in cash (1,586,066 ) 145,334 Cash and cash - restricted, beginning of period* 1,691,995 103,540 Cash, end of period $ 105,929 $ 248,874 Supplemental Disclosure of Cash Flow Information: Cash paid during the period for taxes $ 650 $ 650 Cash paid during the period for interest $ 1,297,587 $ 1,215,297 Cash paid during the period for operating leases $ 32,208 $ 31,863
Supplemental Schedule of Noncash Financing Activities:Dividend declared and payable $ 1,315,445 $ 1,289,428 Loan holdback relating to mortgage receivable $ --- $ 17,500 *At December 31, 2023, cash and restricted cash consisted of $1,587,773 of restricted cash.
Contact: Assaf Ran, CEO Vanessa Kao, CFO (516) 444-3400 SOURCE: Manhattan Bridge Capital, Inc.