Manhattan Bridge Capital, Inc. Reports Third Quarter Results
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LONG ISLAND, NY -- (Marketwired) -- 10/26/16 -- Manhattan Bridge Capital, Inc. (NASDAQ: LOAN) announced today that total revenue for the three month period ended September 30, 2016 was approximately $1,169,000 compared to approximately $1,032,000 for the three month period ended September 30, 2015, an increase of $137,000, or 13.3%. The increase in revenue represents an increase in lending operations. For the three month periods ended September 30, 2016 and 2015, approximately $960,000 and $871,000, respectively, of our revenues were attributable to interest income on the secured commercial loans that we offer to small businesses, and approximately $209,000 and $160,000, respectively, of our revenues were attributable to origination fees on such loans.
Net income for the three month period ended September 30, 2016 was approximately $725,000 or $0.10 per basic and diluted share, versus net income of approximately $639,000 or $0.09 per basic and diluted share for the three month period ended September 30, 2015, an increase of $86,000 or 13.5%. 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 nine month period ended September 30, 2016 was approximately $3,440,000 compared to approximately $2,855,000 for the nine month period ended September 30, 2015, an increase of $585,000, or 20.5%. The increase in revenue represents an increase in lending operations. For the nine month periods ended September 30, 2016 and 2015, revenues of approximately $2,849,000 and $2,392,000, respectively, were attributable to interest income on the secured commercial loans that we offer to small businesses, and approximately $591,000 and $463,000, respectively, were attributable to origination fees on such loans.
Net income for the nine month period ended September 30, 2016 was approximately $2,130,000 or $0.29 per basic and diluted share, versus net income of approximately $1,645,000 or $0.25 per basic and diluted share for the same period in 2015, an increase of $485,000 or 29.5%. This increase in net income was mainly due to an increase in operating income as a result of increased lending activity.
As of September 30, 2016 total shareholders' equity was approximately $23,125,000 compared to approximately $18,638,000 as of June 30, 2016 and approximately $17,743,000 as of December 31, 2015.
On August 15, 2016, we completed another public offering of 672,269 common shares. In addition, the underwriter fully exercised its over-allotment option for an additional 100,840 common shares. The gross proceeds from the offering, including the exercise of the over-allotment option, were approximately $4.6 million and the net proceeds were approximately $4.2 million, after deducting our underwriting discounts and commissions and offering expenses.
Assaf Ran, Chairman of the Board and CEO stated, "I am pleased with the results that we have reported for the quarter. In light of what I believe is presently a relatively risky and unstable real estate market climate, our challenge, more than ever, is to cherry-pick the safest lending opportunities. We have successfully achieved another record quarter on both revenue and net earnings while continuing our no-default track record."
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: http://www.manhattanbridgecapital.com
This report contains forward-looking statements within the meaning of section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements are typically identified by the words "believe," "expect," "intend," "estimate" and similar expressions. Those statements appear in a number of places in this report and include statements regarding our intent, belief or current expectations or those of our directors or officers with respect to, among other things, trends affecting our financial condition and results of operations and our business and growth strategies. These 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 (such factors are referred to herein as "Cautionary Statements"), including but not limited to the following: (i) we have limited operating history as a REIT; (ii) our loan origination activities, revenues and profits are limited by available funds (iii)we operate in a highly competitive market and competition may limit our ability to originate loans with favorable interest rates; (iv) our chief executive officer is critical to our business and our future success may depend on our ability to retain him; (v) if we overestimate the yields on our loans or incorrectly value the collateral securing the loan, we may experience losses; (vi) we may be subject to "lender liability" claims; (vii) our loan portfolio is illiquid; (viii) our due diligence may not uncover all of a borrower's liabilities or other risks to its business; (ix) borrower concentration could lead to significant losses; (x) our management has no experience managing a REIT; and (xi) 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. The accompanying information contained in this report, including the information set forth under "Management's Discussion and Analysis of Financial Condition and Results of Operations", identifies important factors that could cause such differences. These forward-looking statements speak only as of the date of this report, and we caution potential investors not to place undue reliance on such statements. We undertake no obligation to update or revise any forward-looking statements. All subsequent written or oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the Cautionary Statements.
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
September 30, 2016 December 31, 2015
Assets (unaudited) (audited)
------------------- --------------------
Current assets:
Cash and cash equivalents $ 158,519 $ 106,836
Cash - restricted 919,352 ---
Short term loans receivable 23,314,500 20,199,000
Interest receivable on loans 304,338 382,572
Other current assets 49,673 32,865
------------------- --------------------
Total current assets 24,746,382 20,721,273
Long term loans receivable 8,217,320 10,705,040
Property and equipment, net 9,038 8,771
Security deposit 6,816 6,816
Investment in privately held
company 40,000 50,000
Deferred financing costs 68,234 164,510
------------------- --------------------
Total assets $ 33,087,790 $ 31,656,410
=================== ====================
Liabilities and Stockholders' Equity
Current liabilities:
Line of credit $ 4,263,055 $ 11,821,099
Short term loans --- 1,095,620
Accounts payable and accrued 71,940 99,643
expenses
Deferred origination fees 344,561 279,682
Dividends payable --- 617,443
------------------- -------------------
Total current liabilities 4,679,556 13,913,487
Long term liabilities:
Senior secured note (net of
deferred financing costs of 5,283,559 ---
$716,441)
------------------- -------------------
Total liabilities 9,963,115 13,913,487
------------------- -------------------
Commitments and contingencies
Stockholders' equity:
Preferred shares - $.01 par value;
5,000,000 shares authorized; no --- ---
shares issued
Common shares - $.001 par value;
25,000,000 authorized; 8,290,749 8,291 7,441
and 7,441,039 issued; 8,113,749
and 7,264,039 outstanding
Additional paid-in capital 23,025,856 18,500,524
Treasury stock, at cost - 177,000 (369,335) (369,335)
Retained earnings (Accumulated 459,863 (395,707)
deficit)
------------------- -------------------
Total stockholders' equity 23,124,675 17,742,923
------------------- -------------------
Total liabilities and 33,087,790 31,656,410
stockholders' equity $ $
=================== ===================
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Nine Months
Ended September 30, Ended September 30,
--------------------------- ----------------------------
2016 2015 2016 2015
------------- ------------- ------------- -------------
Interest income
from loans $ 960,274 $ 871,250 $ 2,848,516 $ 2,392,329
Origination fees 208,951 160,456 591,191 463,092
------------- ------------- ------------- -------------
Total revenue 1,169,225 1,031,706 3,439,707 2,855,421
------------- ------------- ------------- -------------
Operating costs
and expenses:
Interest and
amortization of
debt service
costs 205,449 159,875 593,749 493,652
Referral fees 2,263 948 5,525 3,260
General and
administrative
expenses 236,972 229,873 698,356 696,464
------------- ------------- ------------- -------------
Total operating
costs and
expenses 444,684 390,696 1,297,630 1,193,376
------------- ------------- ------------- -------------
Income from
operations 724,541 641,010 2,142,077 1,662,045
Loss on write-
down of
investment in
privately held
company --- --- (10,000) (15,000)
------------- ------------- ------------- -------------
Income before
income tax
expense 724,541 641,010 2,132,077 1,647,045
Income tax
expense --- (2,005) (2,146) (2,005)
------------- ------------- ------------- -------------
Net income $ 724,541 $ 639,005 $ 2,129,931 $ 1,645,040
============= ============= ============= =============
Basic and diluted
net income per
common share
outstanding:
--Basic $ 0.10 $ 0.09 $ 0.29 $ 0.25
============= ============= ============= =============
--Diluted $ 0.10 $ 0.09 $ 0.29 $ 0.25
============= ============= ============= =============
Weighted average
number of common
shares
outstanding
--Basic 7,598,626 7,223,043 7,407,787 6,597,987
============= ============= ============= =============
--Diluted 7,623,635 7,263,017 7,426,165 6,637,755
============= ============= ============= =============
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
Nine Months
Ended September 30,
----------------------------------------
2016 2015
------------------- -------------------
Cash flows from operating
activities:
Net Income $ 2,129,931 $ 1,645,040
Adjustments to reconcile net
income to net cash provided by
operating activities -
Amortization of deferred
financing costs 51,474 27,501
Depreciation 2,752 4,926
Non cash compensation expense 10,192 10,248
Loss on write-down of investment
in privately held company 10,000 15,000
Changes in operating assets and
liabilities:
Interest receivable on loans 78,234 (108,815)
Other current and non current
assets (16,809) (27,377)
Accounts payable and accrued
expenses (27,702) (74,031)
Deferred origination fees 64,879 4,360
------------------- -------------------
Net cash provided by
operating activities 2,302,951 1,496,852
------------------- -------------------
Cash flows from investing
activities:
Issuance of short term loans (24,299,500) (15,346,500)
Collections received from loans 23,671,720 10,234,936
Purchase of fixed assets (3,019) (3,474)
------------------- -------------------
Net cash used in investing
activities (630,799) (5,115,038)
------------------- -------------------
Cash flows from financing
activities:
(Repayments of) Proceeds from
loans and line of credit, net (8,653,664) 1,024,238
Cash restricted for reduction of
line of credit (919,352) ---
Proceeds from public offerings,
net 9,539,347 4,237,199
Deferred financing costs --- (111,400)
Proceeds from exercise of stock
options and warrants 305,004 32,838
Dividends paid (1,891,804) (1,551,221)
------------------- -------------------
Net cash (used in) provided
by financing activities (1,620,469) 3,631,654
------------------- -------------------
Net increase in cash and cash
equivalents 51,683 13,468
Cash and cash equivalents,
beginning of period 106,836 47,676
------------------- -------------------
Cash and cash equivalents, end of
period $ 158,519 $ 61,144
=================== ===================
Supplemental Cash Flow
Information:
Taxes paid during the period $ 1,948 $ 29
=================== ===================
Interest paid during the period $ 546,015 $ 423,650
=================== ===================
Contact: Assaf Ran CEO Vanessa Kao CFO (516) 444-3400
Source: Manhattan Bridge Capital, Inc.
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