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Manhattan Bridge Capital, Inc. Reports Third Quarter 2022 Results
المصدر: Nasdaq GlobeNewswire / 21 أكتوبر 2022 06:05:00 America/Chicago
GREAT NECK, N.Y., Oct. 21, 2022 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that its net income for the three months ended September 30, 2022 was approximately $1,237,000, or $0.11 per basic and diluted share (based on approximately 11.5 million weighted-average outstanding common shares), as compared to approximately $1,110,000, or $0.10 per basic and diluted share (based on approximately 11.3 million weighted-average outstanding common shares), for the three months ended September 30, 2021, an increase of $127,000, or 11.4%. This increase is primarily attributable to an increase in revenue, partially offset by an increase in interest expense.
Total revenues for the three months ended September 30, 2022 were approximately $2,107,000 compared to approximately $1,627,000 for the three months ended September 30, 2021, an increase of $480,000 or 29.5%. The increase in revenue was due to an increase in lending operations. For the three months ended September 30, 2022 and 2021, approximately $1,678,000 and $1,323,000, respectively, of the Company’s revenues were attributable to interest income on secured commercial loans that it offers to real estate investors, and approximately $429,000 and $304,000, 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, 2022 was approximately $4,018,000, or $0.35 per basic and diluted share (based on approximately 11.5 million weighted-average outstanding common shares), as compared to approximately $3,274,000, or $0.32 per basic and diluted share (based on approximately 10.2 million weighted-average outstanding common shares) for the nine months ended September 30, 2021, an increase of $744,000, or 22.7%. This increase is primarily attributable to an increase in revenue, partially offset by increases in interest expense and in general and administrative expenses.
Total revenues for the nine months ended September 30, 2022 were approximately $6,339,000 compared to approximately $5,070,000 for the nine months ended September 30, 2021, an increase of $1,269,000, or 25.0%. The increase in revenue was due to an increase in lending operations. For the nine months ended September 30, 2022 and 2021, revenues of approximately $4,934,000 and $4,190,000, respectively, were attributable to interest income on the secured commercial loans that the Company offers to real estate investors, and approximately $1,405,000 and $880,000, 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, 2022, total stockholders' equity was approximately $43,100,000.
Assaf Ran, Chairman of the Board and CEO, stated, “As we are adjusting our portfolio to the new environment, we have presented another quarter of strong profitability and no loan defaults. We have paid higher interest on our line of credit, but we are increasing the rates we charge our borrowers. At these times, we believe that our low equity to debt ratio is a major strength.”
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 the Company discusses its belief that during these times its low equity to debt ratio is a major strength, it is 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) an increase in interest rates may impact our profitability; (v) if we overestimate the yields on our loans or incorrectly value the collateral securing the loan, we may experience losses; (vi) we may be subject to “lender liability” claims; (vii) our due diligence may not uncover all of a borrower’s liabilities or other risks to its business; (viii) borrower concentration could lead to significant losses and (ix) 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. The risk factors contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and in Part II, Item 1A, of our Quarterly Reports on Form 10-Q for the quarters ended June 30, 2022 and September 30, 2022 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 SHEETSSeptember 30, 2022 December 31, 2021 (unaudited) (audited) Assets Loans receivable $ 72,701,582 $ 65,715,364 Interest receivable on loans 1,132,189 955,443 Cash 109,708 142,546 Cash - restricted 433,269 --- Other assets 94,202 64,745 Operating lease right-of-use asset, net 275,937 317,080 Deferred financing costs, net 19,271 10,539 Total assets $ 74,766,158 $ 67,205,717 Liabilities and Stockholders’ Equity Liabilities: Line of credit $ 23,361,607 $ 15,645,970 Senior secured notes (net of deferred financing costs of $265,928 and $322,241, respectively) 5,734,072 5,677,759 Deferred origination fees 642,106 580,461 Accounts payable and accrued expenses 202,059 154,169 Operating lease liability 286,378 324,248 Dividends payable 1,436,868 1,436,868 Total liabilities 31,663,090 23,819,475 Commitments and contingencies Stockholders’ equity: Preferred shares - $.01 par value per share; 5,000,000 shares authorized; none issued --- --- Common shares - $.001 par value per share; 25,000,000 shares authorized; 11,757,058 issued; 11,494,945 outstanding 11,757 11,757 Additional paid-in capital 45,532,544 45,522,746 Treasury shares, at cost – 262,113 shares (798,939 ) (798,939 ) Accumulated deficit (1,642,294 ) (1,349,322 ) Total stockholders’ equity 43,103,068 43,386,242 Total liabilities and stockholders’ equity $ 74,766,158 $ 67,205,717 MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)Three Months
Ended September 30,Nine Months
Ended September 30,2022 2021 2021 2022 Interest income from loans $ 1,677,670 $ 1,323,085 $ 4,933,767 $ 4,189,658 Origination fees 429,350 304,297 1,405,076 880,440 Total revenue 2,107,020 1,627,382 6,338,843 5,070,098 Operating costs and expenses: Interest and amortization of deferred financing costs 496,718 184,914 1,204,954 819,015 Referral fees 625 2,069 3,945 6,463 General and administrative expenses 377,436 335,284 1,125,162 983,867 Total operating costs and expenses 874,779 522,267 2,334,061 1,809,345 Income from operations 1,232,241 1,105,115 4,004,782 3,260,753 Other income 4,500 4,500 13,500 13,500 Income before income tax expense 1,236,741 1,109,615 4,018,282 3,274,253 Income tax expense --- --- (650 ) (647 ) Net income $ 1,236,741 $ 1,109,615 $ 4,017,632 $ 3,273,606 Basic and diluted net income per common share outstanding: --Basic $ 0.11 $ 0.10 $ 0.35 $ 0.32 --Diluted $ 0.11 $ 0.10 $ 0.35 $ 0.32 Weighted average number of common shares outstanding --Basic 11,494,945 11,331,902 11,494,945 10,196,868 --Diluted 11,494,945 11,331,902 11,494,945 10,196,868 MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(unaudited)FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2022
Common Shares Additional Paid
in CapitalTreasury Shares Accumulated
DeficitTotals Shares Amount Shares Cost Balance, July 1, 2022 11,757,058 $11,757 $45,529,278 262,113 $(798,939) $(1,442,167) $43,299,929 Non-cash compensation 3,266 3,266 Dividends declared and payable (1,436,868) (1,436,868) Net income 1,236,741 1,236,741 Balance, September 30, 2022 11,757,058 $11,757 $45,532,544 262,113 $(798,939) $(1,642,294) $43,103,068 FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2021
Common Shares Additional Paid
in CapitalTreasury Shares Retained
EarningsTotals Shares Amount Shares Cost Balance, July 1, 2021 9,882,058 $9,882 $33,163,628 262,113 $(798,939) $701,948 $33,076,519 Public offering, net 1,875,000 1,875 12,352,585 12,354,460 Non-cash compensation 3,266 3,266 Dividends paid (1,436,868) (1,436,868 ) Net income 1,109,615 1,109,615 Balance, September 30, 2021 11,757,058 $11,757 $45,519,479 262,113 $(798,939) $374,695 $45,106,992 FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2022
Common Shares Additional Paid
in CapitalTreasury Shares 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 9,798 9,798 Dividends paid (2,873,736) (2,873,736) Dividends declared and payable (1,436,868) (1,436,868) Net income 4,017,632 4,017,632 Balance, September 30, 2022 11,757,058 $11,757 $45,532,544 262,113 $(798,939) $(1,642,294) $43,103,068 FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021
Common Shares Additional Paid
in CapitalTreasury Shares (Accumulated
Deficit)
Retained
EarningsTotals 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 Public offering, net 1,875,000 1,875 12,352,585 12,354,460 Non-cash compensation 9,798 9,798 Dividends paid (2,495,062) (2,495,062) Net income 3,273,606 3,273,606 Balance, September 30, 2021 11,757,058 $11,757 $45,519,479 262,113 $(798,939) $374,695 $45,106,992 MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)Nine Months Ended September 30, 2022 2021 Cash flows from operating activities: Net income $ 4,017,632 $ 3,273,606 Adjustments to reconcile net income to net cash provided by operating activities - Amortization of deferred financing costs 83,401 66,324 Adjustment to operating lease right-of-use asset and liability 3,274 2,603 Depreciation 1,598 1,716 Non-cash compensation expense 9,798 9,798 Changes in operating assets and liabilities: Interest receivable on loans (176,746 ) (168,148 ) Other assets (29,164 ) (28,538 ) Accounts payable and accrued expenses 47,890 (92,982 ) Deferred origination fees 61,645 85,945 Net cash provided by operating activities 4,019,328 3,150,324 Cash flows from investing activities: Issuance of short term loans (49,241,679 ) (28,534,303 ) Collections received from loans 42,255,461 33,058,052 Purchase of fixed assets (1,893 ) --- Net cash (used in) provided by investing activities (6,988,111 ) 4,523,749 Cash flows from financing activities: Proceeds from (repayment of) line of credit, net 7,715,637 (16,824,722 ) Dividends paid (4,310,604 ) (3,553,256 ) Proceeds from public offering, net --- 12,354,460 Deferred financing costs incurred (35,819 ) --- Net cash provided by (used in) financing activities 3,369,214 (8,023,518 ) Net increase (decrease) in cash and restricted cash* 400,431 (349,445 ) Cash and restricted cash*, beginning of year 142,546 459,137 Cash and restricted cash*, end of period $ 542,977 $ 109,692 Supplemental Cash Flow Information: Taxes paid during the period $ 650 $ 647 Interest paid during the period $ 1,036,338 $ 811,610 Operating leases paid during the period $ 47,703 $ 47,600 Supplemental Information – Noncash Information: Dividend declared and payable $ 1,436,868 $ --- * At January 1, 2021 and at September 30, 2022, cash and restricted cash included $327,483 and $433,269, respectively, of restricted cash.
SOURCE: Manhattan Bridge Capital, Inc.
Contact: Assaf Ran, CEO Vanessa Kao, CFO (516) 444-3400