• Manhattan Bridge Capital, Inc. Reports First Quarter 2023 Results

    Source: Nasdaq GlobeNewswire / 19 Apr 2023 15:40:36   America/Chicago

    GREAT NECK, N.Y., April 19, 2023 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that its net income for the three months ended March 31, 2023 was approximately $1,260,000, or $0.11 per share (based on approximately 11.5 million weighted-average outstanding common shares), compared to approximately $1,425,000 or $0.12 per share (based on approximately 11.5 million weighted-average outstanding common shares) for the three months ended March 31, 2022, a decrease of $165,000, or 11.6%. This decrease is primarily attributable to a significant increase in interest expense due to higher LIBOR/SOFR rates relating to the use of the Company’s credit line in order to support its ability to increase loan originations and a special bonus to officers in 2023, partially offset by the increase in interest income.

    Total revenues for the three months ended March 31, 2023 were approximately $2,398,000 compared to approximately $2,115,000 for the three months ended March 31, 2022, an increase of $283,000, or 13.4%. The increase in revenue was due to an increase in lending operations and higher interest rates charged on the Company’s commercial loans. For the three months ended March 31, 2023, approximately $1,954,000 of the Company’s revenue represents interest income on secured commercial loans that we offer to real estate investors, compared to approximately $1,644,000 for the same period in 2022, and approximately $444,000 and $471,000, respectively, represent 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 March 31, 2023, total shareholders’ equity was approximately $42,833,000.

    On April 11, 2023, the Company’s Board of Directors authorized a share buy back program, pursuant to which it may, from time to time, purchase up to 100,000 of its common shares. This program does not obligate the Company to purchase any shares and expires on April 10, 2024. The authorization for the program is able to be terminated, increased or decreased by the Company’s Board of Directors in its discretion at any time.

    Assaf Ran, Chairman of the Board and Chief Executive Officer of the Company, stated, “The high interest environment contributed to our revenue increase. However, our interest expense almost doubled versus the same quarter a year ago. Generally, we have experienced slower and riskier real estate markets in our geographic areas of operation, together with tight liquidity and less competition. Yet, due to the strength of our loan portfolio, we suffered no losses and impairment expenses.”

    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.


    MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
    CONSOLIDATED BALANCE SHEETS

    AssetsMarch 31, 2023
    (unaudited)
     December 31, 2022
    (audited)
    Loans receivable$71,950,185 $74,483,463
    Interest receivable on loans 1,259,047  1,363,502
    Cash
     75,192  103,540
    Other assets 98,948  59,566
    Operating lease right-of-use asset, net 248,508  262,222
    Deferred financing costs, net 37,130  7,708
    Total assets$73,669,010 $76,280,001


    Liabilities and Stockholders’ Equity   
    Liabilities:   
    Line of credit$22,580,277  $24,994,234 
    Senior secured notes (net of deferred financing costs of $228,384 and $247,155, respectively) 5,771,616   5,752,845 
    Deferred origination fees 650,856   669,128 
    Accounts payable and accrued expenses 261,825   289,868 
    Operating lease liability 260,455   273,485 
    Loan holdback 17,500    
    Dividends payable 1,293,181   1,436,868 
    Total liabilities 30,835,710   33,416,428 


    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 issued; 11,494,945 outstanding 11,757   11,757 
    Additional paid-in capital 45,539,077   45,535,811 
    Treasury stock, at cost - 262,113 shares (798,939)  (798,939)
    Accumulated deficit (1,918,595)  (1,885,056)
    Total stockholders’ equity 42,833,300   42,863,573 
    Total liabilities and stockholders’ equity$73,669,010  $76,280,001 
            


    MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY

     Three Months
    Ended March 31,
     20232022
       
    Interest income from loans$1,953,821$1,643,789
    Origination fees 443,971 471,271
    Total revenue 2,397,792 2,115,060
       
    Operating costs and expenses:  
    Interest and amortization of deferred financing costs 646,263 331,853
    Referral fees 291 1,361
    General and administrative expenses 496,096 361,489
    Total operating costs and expenses 1,142,650 694,703
       
    Income from operations 1,255,142 1,420,357
    Other income 4,500 4,500
    Net income$1,259,642$1,424,857
       
    Basic and diluted net income per common share outstanding:  
    –Basic$0.11$0.12
    –Diluted$0.11$0.12
       
    Weighted average number of common shares outstanding:  
    –Basic 11,494,945 11,494,945
    –Diluted 11,494,945 11,494,945
         


    MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
    CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
    (unaudited)

    FOR THE THREE MONTHS ENDED MARCH 31, 2023

     Common SharesAdditional
    Paid-in
    Capital
    Treasury StockAccumulated
    Deficit
    Totals
          
     SharesAmount SharesCost  
    Balance, January 1, 202311,757,058$11,757$45,535,811262,113$(798,939)$(1,885,056)$42,863,573 
    Non-cash compensation  3,266   3,266 
    Dividends declared and payable     (1,293,181)(1,293,181)
    Net income___________    1,259,642 1,259,642 
    Balance, March 31, 202311,757,058$11,757$45,539,077262,113$(798,939)$(1,918,595)$42,833,300 


    FOR THE THREE MONTHS ENDED MARCH 31, 2022

     Common SharesAdditional
    Paid-in

    Capital
    Treasury StockAccumulated
    Deficit
    Totals
          
     SharesAmount SharesCost  
    Balance, January 1, 202211,757,058$11,757$45,522,746262,113$(798,939)$(1,349,322)$43,386,242 
    Non-cash compensation  3,266   3,266 
    Dividends declared and payable     (1,436,868)(1,436,868)
    Net income___________    1,424,857 1,424,857 
    Balance, March 31, 202211,757,058$11,757$45,526,012262,113$(798,939)$(1,361,333)$43,377,497 
               


    MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (unaudited)

      Three Months
    Ended March 31,
        2023    2022 
    Cash flows from operating activities:    
    Net income $1,259,642  $1,424,857 
    Adjustments to reconcile net income to net cash provided by operating activities -    
    Amortization of deferred financing costs  27,540   24,015 
    Adjustment to operating lease right-of-use asset and liability  685   1,224 
    Depreciation  892   469 
    Non-cash compensation expense  3,266   3,266 
    Changes in operating assets and liabilities:    
    Interest receivable on loans  104,455   (73,474)
    Other assets  (35,189)  (27,280)
    Accounts payable and accrued expenses  (28,043)  (5,958)
    Deferred origination fees  (18,272)  107,772 
    Net cash provided by operating activities  1,314,976   1,454,891 
         
    Cash flows from investing activities:    
    Issuance of short term loans  (13,734,803)  (18,295,339)
    Collections received from loans  16,285,581   15,572,367 
    Purchase of fixed assets  (5,085)   
    Net cash provided by (used in) investing activities  2,545,693   (2,722,972)
         
    Cash flows from financing activities:    
    (Repayment of) proceeds from line of credit, net  (2,413,957)  2,743,588 
    Dividend paid  (1,436,868)  (1,436,868)
    Deferred financing costs incurred  (38,192)  (35,819)
    Net cash (used in) provided by financing activities  (3,889,017)  1,270,901 
         
    Net (decrease) increase in cash  (28,348)  2,820 
    Cash, beginning of year  103,540   142,546 
    Cash, end of period $75,192  $145,366 


    Supplemental Cash Flow Information:   
    Interest paid during the period$636,990 $277,757
    Operating leases paid during the period$15,917 $15,881
        
    Supplemental Information – Noncash Information:   
    Dividend declared and payable$1,293,181 $1,436,868
    Loan holdback relating to mortgage receivable$17,500 $
          

    SOURCE: Manhattan Bridge Capital, Inc.


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

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