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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 SHEETSAssets March 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 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; 11,494,945 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 31,2023 2022 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 Shares Additional
Paid-in
CapitalTreasury Stock Accumulated
DeficitTotals 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 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, 2023 11,757,058 $11,757 $45,539,077 262,113 $(798,939 ) $(1,918,595 ) $42,833,300 FOR THE THREE MONTHS ENDED MARCH 31, 2022
Common Shares Additional
Paid-in
CapitalTreasury Stock Accumulated
DeficitTotals Shares Amount Shares Cost Balance, January 1, 2022 11,757,058 $11,757 $45,522,746 262,113 $(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, 2022 11,757,058 $11,757 $45,526,012 262,113 $(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