Manhattan Bridge Capital, Inc. Reports Results for 2018

GlobeNewswire - finance.yahoo.com Posted 5 years ago

Net Income increases by 22.2% to over $4.2 million

GREAT NECK, N.Y., March 18, 2019 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that net income for the year ended December 31, 2018 was approximately $4,204,000, or $0.48 per share (based on approximately 8.8 million weighted-average outstanding common shares), versus approximately $3,439,000, or $0.42 per share (based on approximately 8.1 million weighted-average outstanding common shares) for the year ended December 31, 2017, an increase of $765,000 or 22.2%. This increase in net income was mainly due to an increase in operating income as a result of increased lending activity. 

Total revenue for the year ended December 31, 2018 was approximately $7,225,000 compared to approximately $5,919,000 for the year ended December 31, 2017, an increase of $1,306,000 or 22.1%. The increase in revenue represents an increase in lending operations. In 2018, approximately $6,168,000 of the Company’s revenue represents interest income on secured, commercial loans that the Company offers to small businesses compared to approximately $5,016,000 in 2017, and approximately $1,057,000 represents origination fees on such loans compared to approximately $903,000 in 2017.

Total operating costs and expenses for the year ended December 31, 2018 were approximately $3,022,000 compared to approximately $2,457,000 for the year ended December 31, 2017, an increase of $565,000 or 23.0%. The increase in operating costs and expenses is primarily attributable to an increase in interest expense resulting from the Company’s use of a line of credit in order to increase its ability to make loans.

As of December 31, 2018, total shareholders' equity was approximately $32,081,000 compared to approximately $22,247,000 as of December 31, 2017, an increase of $9,834,000, or 44.2%.

Assaf Ran, Chairman of the Board and CEO, stated, “Our challenge for 2018 was to continue to grow while avoiding the new loose standards set by some of our competitors. We believe that thanks to our solid position in the market-place as well as our strong reputation, we managed to achieve that goal. I'm proud to present another year of record high revenue, record high net earnings and no defaults.”

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. 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 solid position in the market-place as well as our strong reputation, 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, 2018 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.

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MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2018 AND 2017

    2018     2017
Assets          
Loans receivable $   54,836,127   $   45,124,000
Interest receivable on loans   596,777     535,045
Cash
   203,682     136,441
Cash - restricted   151,375     ---
Deferred financing costs   42,040     45,269
Other assets   73,131     55,941
Total assets $ 55,903,132   $   45,896,696

Liabilities and Stockholders’ Equity

Liabilities:      
Line of credit $   16,622,147   $   16,914,594
Senior secured notes (net of deferred financing costs of           
$547,499 and $622,584)   5,452,501     5,377,416
Deferred origination fees   404,676     298,471
Accounts payable and accrued expenses   183,716     167,559
Dividends payable   1,158,717     891,983
Total liabilities   23,821,757     23,650,023
 
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 authorized;           
9,874,191 and 8,319,036 issued; 9,655,977 and           
8,108,934 outstanding   9,874      8,319
Additional paid-in capital   33,110,536     23,167,511
Treasury stock, at cost – 218,214 and 210,102 shares   (590,234)     (541,491)
Accumulated deficit   (448,801)     (387,666)
Total stockholders’ equity   32,081,375     22,246,673
Total liabilities and stockholders’ equity $ 55,903,132   $ 45,896,696



MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017

      2018
         2017
  
               
Interest income from loans $ 6,167,600     $ 5,015,987  
Origination fees   1,056,962       902,950  
Total Revenue   7,224,562       5,918,937  
       
Operating costs and expenses:      
Interest and amortization of deferred financing costs   1,699,064       1,226,728  
Referral fees   1,708       3,701  
General and administrative expenses   1,321,724       1,227,003  
Total operating costs and expenses   3,022,496       2,457,432  
       
Income from operations   4,202,066       3,461,505  
Other income   3,000       ---  
Loss on write-down of investment in privately held               
company   ---       (20,000)  
Income before income tax expense   4,205,066       3,441,505  
Income tax expense     (642 )      (2,971 )
Net income $   4,204,424     $ 3,438,534  
       
Basic and diluted net income per common share      
--Basic $ 0.48     $ 0.42  
--Diluted  $ 0.48     $ 0.42  
       
Weighted average number of common shares      
outstanding      
--Basic   8,792,207       8,117,280  
--Diluted   8,799,044        8,128,685   


MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017

  Common Stock Additional
Paid-in
Capital		 Treasury Stock Accumulated Deficit Totals
           
  Shares Amount   Shares Cost    

Balance, January 1, 2017

 8,312,036 $8,312 $23,134,013 177,000 $(369,335) $(459,100) $  22,313,890

Exercise of options

 7,000  7  20,433        20,440 

Non cash compensation

     13,065        13,065 

Purchase of treasury shares

       33,102 (172,156)    (172,156) 

Dividends paid

           (2,475,117)  (2,475,117) 
Dividends declared and
payable		           (891,983)  (891,983) 
Net income for the year ended
December 31, 2017		           3,438,534  3,438,534 
Balance,
December 31, 2017		 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


MANHATTAN BRIDGE CAPITAL, INC.  AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017

    2018       2017  
Cash flows from operating activities:              
Net income $ 4,204,424     $ 3,438,534  
Adjustments to reconcile net income to net cash provided by operating       
activities -      
Amortization of deferred financing costs   98,695       129,131  
Depreciation   3,711       4,595  
Non cash compensation expense   13,065       13,065  
Loss on write-down of investment in privately held company     ---         20,000  
Changes in operating assets and liabilities      
Interest receivable on loans   (61,732)       (188,526)  
Other current and non current assets   (19,753)       323  
Accounts payable and accrued expenses   16,157       62,019  
Deferred origination fees   106,205       (16,940)  
Net cash provided by operating activities   4,360,772       3,462,201  
       
Cash flows from investing activities:      
Issuance of short term loans     (51,859,000)         (37,871,500)  
Collections received from loans     42,146,873         27,502,820  
Purchase of fixed assets     (1,148)         (1,666)  
Net cash used in investing activities   (9,713,275)       (10,370,346)  
       
Cash flows from financing activities:      
Proceeds from public offering, net   9,882,780       ---  
(Repayments of) proceeds from line of credit, net   (292,447)       10,431,746  
Dividends paid   (3,998,825)       (3,288,621)  
Proceeds from exercise of stock options and warrants   48,735       20,440  
Purchase of treasury shares   (48,743)       (172,156)  
Deferred financing costs incurred   (20,381)       (43,122)  
Net cash provided by financing activities   5,571,119       6,948,287  
       
Net increase in cash and restricted cash   218,616       40,142  
Cash and restricted cash, beginning of year   136,441       96,299  
Cash and restricted cash, end of year $ 355,057     $ 136,441  
       
Supplemental Cash Flow Information:      
Taxes paid during the year $ 642     $ 2,971  
Interest paid during the year $ 1,584,508     $ 1,034,097  
       
Supplement Information – Noncash Information:
Dividend declared and payable		 $ 1,158,717     $   891,983  


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