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Manhattan Bridge Capital, Inc. Reports Second Quarter 2021 Results
Source: Nasdaq GlobeNewswire / 23 Jul 2021 07:05:00 America/New_York
GREAT NECK, N.Y., July 23, 2021 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that its total revenues for the three months ended June 30, 2021 were approximately $1,713,000 compared to approximately $1,741,000 for the three months ended June 30, 2020, a decrease of $28,000, or 1.6%. The decrease in revenues was primarily attributable to lower interest rates charged on loans due to market conditions and intense competition from other lenders. For the three months ended June 30, 2021 and 2020, approximately $1,424,000 and $1,490,000, respectively, of our revenues were attributable to interest income on secured commercial loans that we offer to real estate investors, and approximately $290,000 and $251,000, respectively, of our 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, 2021 was approximately $1,058,000, or $0.11 per basic and diluted share (based on approximately 9.62 million weighted-average outstanding common shares), as compared to approximately $1,097,000, or $0.11 per basic and diluted share (based on approximately 9.63 million weighted-average outstanding common shares), for the three months ended June 30, 2020. The decrease is primarily attributable to the decrease in interest income resulting from the lower interest rates charged on loans.
Total revenues for the six months ended June 30, 2021 were approximately $3,443,000 compared to approximately $3,452,000 for the six months ended June 30, 2020, a decrease of $9,000. The decrease in revenues was primarily attributable to lower interest rates charged on loans due to market conditions and intense competition from other lenders, offset by an increase in origination fees. For the six months ended June 30, 2021 and 2020, revenues of approximately $2,867,000 and $2,964,000, respectively, were attributable to interest income on secured commercial loans that we offer to real estate investors, and approximately $576,000 and $488,000, respectively, were attributable to origination fees on such loans.
Net income for the six months ended June 30, 2021 was approximately $2,164,000, or $0.22 per basic and diluted share (based on approximately 9.62 million weighted-average outstanding common shares), as compared to approximately $2,113,000, or $0.22 per basic and diluted share (based on approximately 9.64 million weighted-average outstanding common shares), for the six months ended June 30, 2020. This increase is primarily attributable to the decrease in interest expense.
As of June 30, 2021, total stockholders' equity was approximately $33,077,000.
As previously announced, on July 9, 2021, we completed an underwritten public offering of 1,875,000 of our common shares at a public offering price of $7.20 per share. The gross proceeds raised by us in the offering were $13,500,000 before deducting underwriting discounts and commissions and other estimated offering expenses. The total net proceeds from the offering of approximately $12,354,000 were used to reduce the outstanding balance of our existing credit line. We granted the underwriters a 30-day option to purchase up to an additional 281,250 of our common shares to cover over-allotments, if any.
Assaf Ran, Chairman of the Board and CEO, stated, “I believe that the recent follow-on stock offering was beneficial to the Company. The transaction will give us the opportunity to support our growth as the economy recovers, and it will increase our book value. In addition, once again, we demonstrated an offering at a price higher than the price of our previous offering. Revenue and earnings of the second quarter were affected by lower interest rates and a large amount of paid-off loans. Nevertheless, I'm pleased to present another quarter of 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, 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 our stock offering will support our growth as the economy recovers and that it will increase our book value, 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 SHEETSJune 30, 2021 December 31, 2020 (unaudited) (audited) Assets Loans receivable 53,385,871 58,097,970 Interest receivable on loans 915,738 827,236 Cash 153,187 131,654 Cash - restricted --- 327,483 Other assets 140,932 66,566 Operating lease right-of-use asset, net 343,566 369,699 Deferred financing costs, net 15,056 22,807 Total assets $ 54,954,350 $ 59,843,415 Liabilities and Stockholders’ Equity Liabilities: Line of credit $ 15,397,115 $ 20,308,873 Senior secured notes (net of deferred financing costs of $359,784 and $397,327, respectively) 5,640,216 5,602,673 Deferred origination fees 357,753 367,638 Accounts payable and accrued expenses 133,912 168,940 Operating lease liability 348,835 372,907 Dividends payable --- 1,058,194 Total liabilities 21,877,831 27,879,225
Commitments and contingenciesStockholders’ 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 33,163,628 33,157,096 Treasury stock, at cost – 262,113 shares (798,939 ) (798,939 ) Retained earnings (accumulated deficit) 701,948 (403,849 ) Total stockholders’ equity 33,076,519 31,964,190
Total liabilities and stockholders’ equity
$
54,954,350
$
59,843,415MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)Three Months
Ended June 30,Six Months
Ended June 30,2021 2020 2021 2020 Interest income from loans $ 1,423,759 $ 1,490,395 $ 2,866,573 $ 2,963,940 Origination fees 289,670 250,791 576,143 488,233 Total revenue 1,713,429 1,741,186 3,442,716 3,452,173 Operating costs and expenses: Interest and amortization of deferred financing costs
316,915
326,247
634,101
678,689Referral fees 2,643 1,386 4,394 1,928 General and administrative expenses 339,602 318,726 648,583 663,507 Total operating costs and expenses 659,160 646,359 1,287,078 1,344,124 Income from operations 1,054,269 1,094,827 2,155,638 2,108,049 Other income 4,500 3,000 9,000 6,000 Income before income tax expense 1,058,769 1,097,827 2,164,638 2,114,049 Income tax expense (647 ) (645 ) (647 ) (645 ) Net income $ 1,058,122 $ 1,097,182 $ 2,163,991 $ 2,113,404 Basic and diluted net income per common share outstanding: --Basic $ 0.11 $ 0.11 $ 0.22 $ 0.22 --Diluted $ 0.11 $ 0.11 $ 0.22 $ 0.22 Weighted average number of common shares outstanding: --Basic 9,619,945 9,628,405 9,619,945 9,640,146 --Diluted 9,619,945 9,628,405 9,619,945 9,640,146 MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(unaudited)FOR THE THREE MONTHS ENDED JUNE 30, 2021
Common Shares Additional Paid in Capital Treasury Stock Retained Earnings Totals Shares Amount Shares Cost Balance, April 1, 2021 9,882,058 $ 9,882 $ 33,160,362 262,113 $ (798,939 ) $ 702,020 $ 33,073,325 Non - cash compensation 3,266 3,266 Dividends paid (1,058,194 ) (1,058,194 ) Net income 1,058,122 1,058,122 Balance, June 30, 2021 9,882,058 $ 9,882 $ 33,163,628 262,113 $ (798,939 ) $ 701,948 $ 33,076,519 FOR THE THREE MONTHS ENDED JUNE 30, 2020
Common Shares Additional Paid in Capital Treasury Stock Retained Earnings Totals Shares Amount Shares Cost Balance, April 1, 2020 9,882,058 $ 9,882 $ 33,147,298 249,823 $ (750,724 ) $ 425,414 $ 32,831,870 Purchase of treasury shares 5,390 (20,835 ) (20,835 ) Non - cash compensation 3,266 3,266 Dividends paid (1,059,546 ) (1,059,546 ) Net income 1,097,182 1,097,182 Balance, June 30, 2020 9,882,058 $ 9,882 $ 33,150,564 255,213 $ (771,559 ) $ 463,050 $ 32,851,937 FOR THE SIX MONTHS ENDED JUNE 30, 2021
Common Shares Additional Paid in Capital Treasury Stock Accumulated Deficit (Retained Earnings) Totals Shares Amount Shares Cost Balance, January 1, 2021 9,882,058 $ 9,882 $ 33,157,096 262,113 $ (798,939 ) $ (403,849 ) $ 31,964,190 Non - cash compensation 6,532 6,532 Dividends paid (1,058,194 ) (1,058,194 ) Net income 2,163,991 2,163,991 Balance, June 30, 2021 9,882,058 $ 9,882 $ 33,163,628 262,113 $ (798,939 ) $ 701,948 $ 33,076,519 FOR THE SIX MONTHS ENDED JUNE 30, 2020
Common Shares Additional Paid in Capital Treasury Stock Accumulated Deficit
(Retained Earnings)Totals Shares Amount Shares Cost Balance, January 1, 2020 9,882,058 $ 9,882 $ 33,144,032 223,214 $ (619,688 ) $ (590,808 ) $ 31,943,418 Non - cash compensation 6,532 6,532 Purchase of treasury shares 31,999 (151,871 ) (151,871 ) Dividends paid (1,059,546 ) (1,059,546 ) Net income 2,113,404 2,113,404 Balance, June 30, 2020 9,882,058 $ 9,882 $ 33,150,564 255,213 $ (771,559 ) $ 463,050 $ 32,851,937 MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)Six Months Ended June 30, 2021 2020 Cash flows from operating activities: Net income $ 2,163,991 $ 2,113,404 Adjustments to reconcile net income to net cash provided by operating activities - Amortization of deferred financing costs 45,294 50,256 Adjustment to operating lease right-of-use asset and liability 2,060 -200 Depreciation 1,153 548 Non-cash compensation expense 6,532 6,532 Changes in operating assets and liabilities: Interest receivable on loans (88,502 ) (124,303 ) Other assets (56,768 ) (65,316 ) Accounts payable and accrued expenses (35,028 ) (32,015 ) Deferred origination fees (9,885 ) 39,513 Net cash provided by operating activities 2,028,847 1,988,419 Cash flows from investing activities: Issuance of short term loans (15,567,677 ) (21,798,160 ) Collections received from loans 20,279,776 19,455,628 Release of loan holdback relating to mortgage receivable --- (15,000 ) Purchase of fixed assets --- (923 ) Net cash provided by (used in) investing activities 4,712,099 (2,358,455 ) Cash flows from financing activities: (Repayment of) proceeds from line of credit, net (4,911,758 ) 2,843,235 Dividends paid (2,116,388 ) (2,218,607 ) Pre-offering costs incurred (18,750 ) --- Purchase of treasury shares --- (151,871 ) Deferred financing costs incurred --- (27,102 ) Net cash (used in) provided by financing activities (7,046,896 ) 445,655 Net (decrease) increase in cash (305,950 ) 75,619 Cash and restricted cash, beginning of year 459,137 118,407 Cash and restricted cash, end of period $ 153,187 $ 194,026 Supplemental Cash Flow Information: Taxes paid during the period $ 647 $ 645 Interest paid during the period $ 603,869 $ 650,130 Operating leases paid during the period $ 31,719 $ 27,227 Supplemental Information – Noncash Information: Interest receivable converted to loans receivable in connection with forbearance agreements $ --- $ 29,671 Contact: Assaf Ran, CEO Vanessa Kao, CFO (516) 444-3400 SOURCE: Manhattan Bridge Capital, Inc.
