• Manhattan Bridge Capital, Inc. Reports Results for 2021

    Source: Nasdaq GlobeNewswire / 11 Mar 2022 15:40:00   America/Chicago

    GREAT NECK, N.Y., March 11, 2022 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (NASDAQ: LOAN) announced today that net income for the year ended December 31, 2021 was approximately $4,423,000, or $0.42 per share (based on approximately 10.5 million weighted-average outstanding common shares), versus approximately $4,229,000, or $0.44 per share (based on approximately 9.6 million weighted-average outstanding common shares) for the year ended December 31, 2020, an increase in net income of $194,000, or 4.6%. This increase is primarily attributable to decreases in interest and payroll expenses, offset by a decrease in revenue.

    Total revenue for the year ended December 31, 2021 was approximately $6,808,000, compared to approximately $7,006,000 for the year ended December 31, 2020, a decrease of $198,000, or 2.8%. 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. In 2021, approximately $5,609,000 of the Company’s revenue represents interest income on secured, real estate loans that we offer to small businesses compared to approximately $5,989,000 in 2020, and approximately $1,199,000 represents origination fees on such loans, compared to approximately $1,018,000 in 2020. The loans are principally secured by collateral consisting of real estate and accompanied by personal guarantees from the principals of the borrowers.

    Total operating costs and expenses for the year ended December 31, 2021 were approximately $2,402,000 compared to approximately $2,796,000 for the year ended December 31, 2020, a decrease of $394,000, or 14.1%. The decrease in operating costs and expenses was primarily attributable to decreased interest expense due to lower LIBOR rates as well as a reduced outstanding credit line balance resulting from the use of net proceeds from a public offering of the Company’s common stock in July 2021, an annual bonus paid to the Company’s Chief Executive Officer in 2020, which was not repeated in 2021, and a voluntary waiver from the Company’s Chief Executive Officer forgoing his base salary for the months of October, November and December 2021.

    As of December 31, 2021, total shareholders' equity was approximately $43,386,000, compared to approximately $31,964,000 as of December 31, 2020.

    Assaf Ran, Chairman of the Board and CEO, stated, “2021 was an interesting year -- it started with extreme uncertainty, followed by enormous optimism and ended with flourishing real estate markets stimulated by plenty of cash all around. During the year, we had to adjust the terms of loans we made to borrowers to stay in-line with market standards. In July 2021, we completed a successful share offering at $7.20 per share, adding approximately $13 million to our equity, in order to secure future growth. It took us approximately six months to deploy the new funds raised in the public offering, so I believe that the impact of the offering on our earnings per share (EPS) will show in the first quarter of 2022,” added Mr. Ran.

    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 the Company’s 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 the state of the real estate markets, the belief that the impact of the public offering on our EPS will show in the first quarter of 2022, 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, 2021 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
    DECEMBER 31, 2021 and 2020
     
    Assets2021
      2020
     
    Loans receivable$ 65,715,364  $ 58,097,970 
    Interest receivable on loans955,443  827,236 
    Cash
    142,546  131,654 
    Cash - restricted
    ---  327,483 
    Other assets64,745  66,566 
    Operating lease right-of-use asset, net317,080  369,699 
    Deferred financing costs, net10,539  22,807 
    Total assets$ 67,205,717  $ 59,843,415 

    Liabilities and Stockholders’ Equity

    Liabilities:   
    Line of credit$15,645,970  $20,308,873 
    Senior secured notes (net of deferred financing costs of $322,241 and $397,327, respectively)5,677,759  5,602,673 
    Deferred origination fees580,461  367,638 
    Accounts payable and accrued expenses154,169  168,940 
    Operating lease liability324,248  372,907 
    Dividends payable1,436,868  1,058,194 
    Total liabilities23,819,475  27,879,225 
          
    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; 11,757,058 and 9,882,058 issued; 11,494,945 and 9,619,945 outstanding, respectively11,757  9,882 
    Additional paid-in capital45,522,746  33,157,096 
    Treasury stock, at cost – 262,113 shares(798,939) (798,939)
    Accumulated deficit(1,349,322) (403,849)
     Total stockholders’ equity43,386,242  31,964,190 
          
    Total liabilities and stockholders’ equity$67,205,717  $59,843,415 



    MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
    CONSOLIDATED STATEMENTS OF OPERATIONS
    FOR THE YEARS ENDED DECEMBER 31, 2021 and 2020
     
     2021 2020
    Interest income from loans$5,608,660  $5,988,622 
    Origination fees1,199,230  1,017,729 
    Total Revenue6,807,890  7,006,351 
          
    Operating costs and expenses:   
    Interest and amortization of deferred financing costs1,045,548  1,356,015 
    Referral fees7,532  5,875 
    General and administrative expenses1,348,838  1,434,438 
    Total operating costs and expenses2,401,918  2,796,328 
        
    Income from operations4,405,972  4,210,023 
    Other income18,000  20,000 
    Income before income tax expense4,423,972  4,230,023 
    Income tax expense(647) (645)
    Net income$4,423,325  $4,229,378 
        
    Basic and diluted net income per common share outstanding:   
    --Basic$0.42  $0.44 
    --Diluted

    $0.42  $0.44 
        
    Weighted average number of common shares outstanding   
    --Basic10,524,055  9,631,296 
    --Diluted10,524,055  9,631,296 



    MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
    CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
    FOR THE YEARS ENDED DECEMBER 31, 2021 and 2020
     
     Common StockAdditional Paid-in
    Capital
    Treasury StockAccumulated DeficitTotals
     SharesAmount SharesCost  
    Balance, January 1, 20209,882,058$9,882$33,144,032223,214$(619,688)$(590,808)$31,943,418 
    Non cash compensation  13,064   13,064 
    Purchase of treasury shares   38,899(179,251) (179,251)
    Dividends paid     (2,984,225)(2,984,225)
    Dividends declared and payable     (1,058,194)(1,058,194)
    Net income for the year ended December 31, 2020     4,229,378 4,229,378 
    Balance, December 31, 20209,882,0589,88233,157,096262,113(798,939)(403,849)31,964,190 
    Public offering, net1,875,0001,87512,352,585   12,354,460 
    Non cash compensation  13,065   13,065 
    Dividends paid     (3,931,930)(3,931,930)
    Dividends declared and payable     (1,436,868)(1,436,868)
    Net income for the year ended December 31, 2021     4,423,325 4,423,325 
    Balance, December 31, 202111,757,058$11,757$45,522,746262,113$(798,939)$(1,349,322)$43,386,242 



    MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    FOR THE YEARS ENDED DECEMBER 31, 2021 and 2020
     
     2021  2020 
    Cash flows from operating activities:     
    Net income$4,423,325  $4,229,378 
    Adjustments to reconcile net income to net cash provided by operating activities -   
    Amortization of deferred financing costs87,353  102,017 
    Depreciation2,265  1,135 
    Non cash compensation expense13,065  13,064 
    Adjustment to operating lease right-of-use asset and liability3,960  (62)
    Changes in operating assets and liabilities   
    Interest receivable on loans(128,207) (180,911)
    Other assets(443) (5,724)
    Accounts payable and accrued expenses(14,771) 17,117 
    Deferred origination fees212,823  45,519 
    Net cash provided by operating activities4,599,370  4,221,533 
        
    Cash flows from investing activities:   
    Issuance of short term loans(49,267,892) (43,719,304)
    Collections received from loans41,650,498  39,136,019 
    Release of loan holdback relating to mortgage receivable---  (15,000)
    Purchase of fixed assets---  (8,759)
    Net cash used in investing activities(7,617,394) (4,607,044)
          
    Cash flows from financing activities:   
    Proceeds from public offering, net12,354,460  --- 
    (Repayment of) proceeds from line of credit, net(4,662,903) 5,075,880 
    Dividends paid(4,990,124) (4,143,286)
    Purchase of treasury shares---  (179,251)
    Deferred financing costs incurred---  (27,102)
    Net cash provided by financing activities2,701,433  726,241 
        
    Net (decrease) increase in cash and restricted cash(316,591) 340,730 
    Cash and restricted cash, beginning of year459,137  118,407 
    Cash and restricted cash, end of year$142,546  $459,137 
        
        
    Supplemental Cash Flow Information:   
    Taxes paid during the year$647  $645 
    Interest paid during the year$982,491  $1,264,533 
    Operating leases paid during the year$63,481  $56,572 
        
    Supplemental Information – Noncash Information:
    Dividend declared and payable

    $1,436,868
      $1,058,194 
    Establishment of right-of-use asset and operating lease liability$---  $329,421 
    Interest receivable converted to loans receivable in connection with forbearance agreements$---  $29,671 

    SOURCE: Manhattan Bridge Capital, Inc.


    Contact:
    Assaf Ran, CEO
    Vanessa Kao, CFO
    (516) 444-3400

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