-
Manhattan Bridge Capital, Inc. Reports Third Quarter 2024 Results
Source: Nasdaq GlobeNewswire / 23 Oct 2024 07:05:00 America/New_York
GREAT NECK, N.Y., Oct. 23, 2024 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) (the “Company”) announced today that its net income for the three months ended September 30, 2024 was approximately $1,399,000, or $0.12 per basic and diluted share (based on approximately 11.4 million weighted-average outstanding common shares), as compared to approximately $1,446,000, or $0.13 per basic and diluted share (based on approximately 11.5 million weighted-average outstanding common shares), for the three months ended September 30, 2023, a decrease of $47,000, or 3.3%. This decrease is primarily attributable to a decrease in revenue, partially offset by a decrease in interest expense.
Total revenues for the three months ended September 30, 2024 were approximately $2,313,000 compared to approximately $2,434,000 for the three months ended September 30, 2023, a decrease of $121,000 or 5.0%. The decrease in revenue was due to a reduction in loans receivable, period over period, and reduced origination fees, which were impacted by a slowdown in new loan originations, partially offset by higher interest rates charged on the Company’s commercial loans. For the three months ended September 30, 2024 and 2023, approximately $1,953,000 and $1,992,000, respectively, of the Company’s revenues were attributable to interest income on secured commercial loans that the Company offers to real estate investors, and approximately $360,000 and $441,000, respectively, of the Company’s 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 nine months ended September 30, 2024 was approximately $4,285,000, or $0.37 per basic and diluted share (based on approximately 11.4 million weighted-average outstanding common shares), as compared to approximately $4,128,000, or $0.36 per basic and diluted share (based on approximately 11.5 million weighted-average outstanding common shares) for the nine months ended September 30, 2023, an increase of $157,000, or 3.8%. This increase is primarily attributable to an increase in interest income from loans, partially offset by a decrease in origination fees.
Total revenues for the nine months ended September 30, 2024 were approximately $7,330,000 compared to approximately $7,231,000 for the nine months ended September 30, 2023, an increase of $99,000, or 1.4%. The increase in revenue was due to higher interest rates charged on the Company’s commercial loans, partially offset by a reduction in loans receivable, period over period, and reduced origination fees, which were impacted by a slowdown in new loan originations. For the nine months ended September 30, 2024 and 2023, revenues of approximately $6,128,000 and $5,889,000, respectively, were attributable to interest income on the secured commercial loans that the Company offers to real estate investors, and approximately $1,201,000 and $1,342,000, respectively, of the Company’s 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.
As of September 30, 2024, total stockholders' equity was approximately $43,271,000.
Assaf Ran, Chairman of the Board and Chief Executive Officer of the Company, stated, “The recent 0.5% reduction of interest rate regenerated optimism among real estate investors. The burden of high interest started to take its toll on many of them and the pace of new deals during the third quarter declined. Therefore, we experienced a decline in initiation fees. Yet, since we have more deals in the pipeline, I hope to return to the previous pace soon.”
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 contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Because such statements deal with future events and are based on Manhattan Bridge Capital’s current expectations, they are subject to various risks and uncertainties and actual results, performance or achievements of the Company could differ materially from those described in or implied by the statements in this press release. For example, forward-looking statements include statements regarding future deals pipeline and the return to previous deal pace. The forward-looking statements contained or implied in this press release are subject to risks and uncertainties, including the risk factors discussed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC and in subsequent filings with the SEC. Except as otherwise required by law, the Company disclaims any intention or obligation to update or revise any forward-looking statements, which speak only as of the date they were made, whether as a result of new information, future events or circumstances or otherwise.
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
AssetsSeptember 30, 2024
(unaudited)December 31, 2023
(audited)Loans receivable $ 68,711,438 $ 73,048,403 Interest and other fees receivable on loans 1,536,643 1,395,905 Cash 167,863 104,222 Cash - restricted --- 1,587,773 Other assets 99,180 63,636 Right-of-use asset - operating lease, net 167,243 207,364 Deferred financing costs, net 19,636 27,583 Total assets $ 70,702,003 $ 76,434,886
Liabilities and Stockholders’ EquityLiabilities: Line of credit $ 19,170,268 $ 25,152,338 Senior secured notes (net of deferred financing costs of $115,756 and $172,069, respectively) 5,884,244 5,827,931 Deferred origination fees 618,812 719,019 Accounts payable and accrued expenses 211,786 295,292 Operating lease liability 180,529 220,527 Loan holdback 50,000 --- Dividends payable 1,315,445 1,287,073 Total liabilities 27,431,084 33,502,180
Commitments and contingenciesStockholders’ 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 issued; 11,438,651 and 11,440,651 outstanding, respectively 11,757 11,757 Additional paid-in capital 45,558,674 45,548,876 Less: Treasury stock, at cost – 318,407 and 316,407 shares, respectively (1,070,406 ) (1,060,606 ) Accumulated deficit (1,229,106 ) (1,567,321 ) Total stockholders’ equity 43,270,919 42,932,706 Total liabilities and stockholders’ equity $ 70,702,003 $ 76,434,886 MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)Three Months
Ended September 30,Nine Months
Ended September 30,2024 2023 2024 2023 Revenue:
Interest income from loans$ 1,952,957 $ 1,992,495 $ 6,128,131 $ 5,888,843 Origination fees 360,376 441,271 1,201,494 1,342,077 Total revenue 2,313,333 2,433,766 7,329,625 7,230,920 Operating costs and expenses: Interest and amortization of deferred financing costs 537,218 614,389 1,831,037 1,856,079 Referral fees 847 361 1,847 1,652 General and administrative expenses 380,482 377,192 1,225,041 1,274,267 Total operating costs and expenses 918,547 991,942 3,057,925 3,131,998 Income from operations 1,394,786 1,441,824 4,271,700 4,098,922 Other income 4,500 4,500 13,500 29,380 Income before income tax expense 1,399,286 1,446,324 4,285,200 4,128,302 Income tax expense --- --- (650 ) (650 ) Net income $ 1,399,286 $ 1,446,324 $ 4,284,550 $ 4,127,652 Basic and diluted net income per common share outstanding: --Basic $ 0.12 $ 0.13 $ 0.37 $ 0.36 --Diluted $ 0.12 $ 0.13 $ 0.37 $ 0.36 Weighted average number of common shares outstanding --Basic 11,438,651 11,461,052 11,438,658 11,477,133 --Diluted 11,438,651 11,461,052 11,438,658 11,477,133
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(unaudited)FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2024
Common Shares Additional Paid in Capital Treasury Shares Accumulated Deficit Totals Shares Amount Shares Cost Balance, July 1, 2024 11,757,058 $11,757 $45,555,408 318,407 $(1,070,406 ) $(1,312,947 ) $43,183,812 Non-cash compensation 3,266 3,266 Dividends declared and payable (1,315,445 ) (1,315,445 ) Net income 1,399,286 1,399,286 Balance, September 30, 2024 11,757,058 $11,757 $45,558,674 318,407 $(1,070,406 ) $(1,229,106 ) $ 43,270,919 FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2023
Common Shares Additional Paid in Capital Treasury Shares Accumulated Deficit Totals Shares Amount Shares Cost Balance, July 1, 2023 11,757,058 $ 11,757 $ 45,542,343 295,473 $ (963,745 ) $ (1,786,337 ) $ 42,804,018 Purchase of treasury shares 4,500 (20,885 ) (20,885 ) Non-cash compensation 3,266 3,266 Dividends declared and payable (1,288,753 ) (1,288,753 ) Net income 1,446,324 1,446,324 Balance, September 30, 2023 11,757,058 $ 11,757 $ 45,545,609 299,973 $ (984,630 ) $ (1,628,766 ) $ 42,943,970 FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024
Common Shares Additional Paid in Capital Treasury Shares Accumulated Deficit Totals Shares Amount Shares Cost Balance, January 1, 2024 11,757,058 $ 11,757 $ 45,548,876 316,407 $ (1,060,606 ) $ (1,567,321 ) $ 42,932,706 Purchase of treasury shares 2,000 (9,800 ) (9,800 ) Non-cash compensation 9,798 9,798 Dividends paid (2,630,890 ) (2,630,890 ) Dividends declared and payable (1,315,445 ) (1,315,445 ) Net income 4,284,550 4,284,550 Balance, September 30, 2024 11,757,058 $ 11,757 $ 45,558,674 318,407 $ (1,070,406 ) $ (1,229,106 ) $ 43,270,919 FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023
Common Shares Additional Paid in Capital Treasury Shares Accumulated Deficit Totals Shares Amount Shares Cost Balance, January 1, 2023 11,757,058 $ 11,757 $ 45,535,811 262,113 $ (798,939 ) $ (1,885,056 ) $ 42,863,573 Purchase of treasury shares 37,860 (185,691 ) (185,691 ) Non-cash compensation 9,798 9,798 Dividends paid (2,582,609 ) (2,582,609 ) Dividends declared and payable (1,288,753 ) (1,288,753 ) Net income 4,127,652 4,127,652 Balance, September 30, 2023 11,757,058 $ 11,757 $ 45,545,609 299,973 $ (984,630 ) $ (1,628,766 ) $ 42,943,970 MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)Nine Months
Ended September 30,2024 2023 Cash flows from operating activities: Net income $ 4,284,550 $ 4,127,652 Adjustments to reconcile net income to net cash provided by operating activities - Amortization of deferred financing costs 66,427 71,449 Adjustment to right-of-use asset - operating lease and liability 121 1,636 Depreciation 3,480 3,001 Non-cash compensation expense 9,798 9,798 Changes in operating assets and liabilities: Interest and other fees receivable on loans (140,738 ) 14,128 Other assets (35,005 ) (38,381 ) Accounts payable and accrued expenses (83,505 ) (53,682 ) Deferred origination fees (100,207 ) 1,167 Net cash provided by operating activities 4,004,921 4,136,768 Cash flows from investing activities: Issuance of short-term loans (29,362,922 ) (40,810,565 ) Collections received from loans 33,749,887 44,512,989 Purchase of fixed assets (4,018 ) (5,085 ) Net cash provided by investing activities 4,382,947 3,697,339 Cash flows from financing activities: Repayment of line of credit, net (5,982,070 ) (3,561,140 ) Dividends paid (3,917,963 ) (4,019,478 ) Purchase of treasury shares (9,800 ) (185,691 ) Deferred financing costs incurred (2,167 ) (38,191 ) Net cash used in financing activities (9,912,000 ) (7,804,500 ) Net (decrease) increase in cash (1,524,132 ) 29,607 Cash and cash - restricted, beginning of period* 1,691,995 103,540 Cash, end of period $ 167,863 $ 133,147 Supplemental Disclosure of Cash Flow Information: Cash paid during the period for taxes $ 650 $ 650 Cash paid during the period for interest $ 1,816,980 $ 1,797,254 Cash paid during the period for operating leases $ 47,779 $ 47,822 Supplemental Schedule of Noncash Financing Activities: Dividend declared and payable $ 1,315,445 $ 1,288,753 Loan holdback relating to mortgage receivable $ 50,000 $ --- *At December 31, 2023, cash and restricted cash consisted of $1,587,773 of restricted cash.
Contact:
Assaf Ran, CEO
Vanessa Kao, CFO
(516) 444-3400
SOURCE: Manhattan Bridge Capital, Inc.