• Manhattan Bridge Capital, Inc. Reports First Quarter 2021 Results

    Source: Nasdaq GlobeNewswire / 14 Apr 2021 06:05:00   America/Chicago

    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 StockAdditional
    Paid-in
    Capital    		Treasury Stock(Accumulated
    Deficit)
    Retained
    Earnings    		Totals
          
     SharesAmount SharesCost  
    Balance, January 1, 20219,882,058$9,882$33,157,096262,113$(798,939)$(403,849)$31,964,190
    Non-cash compensation  3,266   3,266
    Net income     1,105,8691,105,869
    Balance, March 31, 20219,882,058$9,882$33,160,362262,113$(798,939)$702,020$33,073,325

    FOR THE THREE MONTHS ENDED MARCH 31, 2020

     Common StockAdditional
    Paid-in
    Capital    		Treasury Stock(Accumulated
    Deficit)
    Retained
    Earnings    		Totals
          
     SharesAmount SharesCost  
    Balance, January 1, 20209,882,058$9,882$33,144,032223,214$(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     1,016,2221,016,222
    Balance, March 31, 20209,882,058$9,882$33,147,298249,823$(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:
Assaf Ran, CEO
Vanessa Kao, CFO
(516) 444-3400

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