Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that its net income for the three months ended September 30, 2021 was approximately $1,110,000, or $0.10 per basic and diluted share (based on approximately 11.3 million weighted-average outstanding common shares), as compared to approximately $1,151,000, or $0.12 per basic and diluted share (based on approximately 9.6 million weighted-average outstanding common shares), for the three months ended September 30, 2020. The decrease is primarily attributable to a decrease in interest income from loans, partially offset by a decrease in interest expense.

Total revenues for the three months ended September 30, 2021 were approximately $1,627,000, as compared to approximately $1,786,000 for the three months ended September 30, 2020, a decrease of $159,000 or 8.9%. The decrease in revenue was primarily attributable to lower interest rates charged on loans due to market conditions and intense competition from other lenders, partially offset by an increase in origination fees. For the three months ended September 30, 2021 and 2020, approximately $1,323,000 and $1,521,000, respectively, of our revenues were attributable to interest income on secured commercial loans that we offer to real estate investors, and approximately $304,000 and $265,000, 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 nine months ended September 30, 2021 was approximately $3,274,000, or $0.32 per basic and diluted share (based on approximately 10.2 million weighted-average outstanding common shares), as compared to approximately $3,264,000, or $0.34 per basic and diluted share (based on approximately 9.6 million weighted-average outstanding common shares) for the nine months ended September 30, 2020, an increase of $10,000. This increase is primarily attributable to a decrease in interest expense, offset by a decrease in revenue.

Total revenues for the nine months ended September 30, 2021 were approximately $5,070,000 compared to approximately $5,239,000 for the nine months ended September 30, 2020, a decrease of $169,000, or 3.2%. The decrease in revenue was primarily attributable to lower interest rates charged on loans due to market conditions and intense competition from other lenders, partially offset by an increase in origination fees. For the nine months ended September 30, 2021 and 2020, revenues of approximately $4,190,000 and $4,485,000, respectively, were attributable to interest income on the secured commercial loans that we offer to real estate investors, and approximately $880,000 and $753,000, 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.

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. The option expired unexercised in August 2021.

As of September 30, 2021, total stockholders' equity was approximately $45,107,000, compared to approximately $31,964,000 as of December 31, 2020.

Assaf Ran, Chairman of the Board and CEO, stated, “Immediately after the successful public offering at the beginning of the third quarter, we accelerated sales efforts and closed approximately 60% more loans versus the first and second quarters of 2021 on an aggregate basis. However, the amount of loans that was repaid quickly was also unusually high, reflecting what we believe is a strong and liquid portfolio. In addition, we are experiencing a competitive market and see continued pressure on interest rates. Furthermore, our sales team is now larger and generating more loans, and as we have access to more capital, I believe that we’re on the right track to increase the scale of the portfolio. You may have noticed that I agreed to forgo my salary for the fourth quarter. The reason for that is to try to avoid a “return of capital” in our dividend distribution, as we paid the July 15th dividend to the new shareholders before we had an opportunity to deploy the new funds. Most importantly, once again, we have had no defaults since inception,” added Mr. Ran.

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 the high amount of loan repayments reflects a strong and liquid portfolio and the belief that we are on the right track to increase the scale of the portfolio, 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 SHEETS

  September 30, 2021   December 31, 2020
  (unaudited)   (audited)
Assets          
Loans receivable $ 53,574,221     $ 58,097,970  
Interest receivable on loans   995,384       827,236  
Cash   109,692       131,654  
Cash - restricted   ---       327,483  
Other assets   93,387       66,566  
Operating lease right-of-use asset, net   330,795       369,699  
Deferred financing costs, net   12,798       22,807  
Total assets $ 55,116,277     $ 59,843,415  
           
Liabilities and Stockholders’ Equity          
Liabilities:          
Line of credit $ 3,484,151     $ 20,308,873  
Senior secured notes (net of deferred financing costs of $341,013 and $397,327, respectively)   5,658,987       5,602,673  
Deferred origination fees   453,583       367,638  
Accounts payable and accrued expenses   75,958       168,940  
Operating lease liability   336,606       372,907  
Dividends payable   ---       1,058,194  
Total liabilities   10,009,285       27,879,225  
       
Commitments and contingencies      
Stockholders’ equity:      
Preferred stock - $.01 par value; 5,000,000 shares authorized; none issued   ---       ---  
       
Common stock - $.001 par value; 25,000,000 shares authorized; 11,757,058 and 9,882,058 issued; 11,494,945 and 9,619,945 outstanding   11,757       9,882  
Additional paid-in capital   45,519,479       33,157,096  
Treasury stock, at cost – 262,113 shares   (798,939 )     (798,939 )
Retained earnings (accumulated deficit)   374,695       (403,849 )
Total stockholders’ equity   45,106,992       31,964,190  
       
Total liabilities and stockholders’ equity $ 55,116,277     $ 59,843,415  
       

 

 

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

  Three Months Ended September 30, Nine Months Ended September 30,
    2021   2020   2021     2020  
Interest income from loans $ 1,323,085 $ 1,521,474 $ 4,189,658   $ 4,485,414  
Origination fees   304,297   264,878   880,440     753,111  
Total revenue   1,627,382   1,786,352   5,070,098     5,238,525  
         
Operating costs and expenses:        
Interest and amortization of deferred financing costs   184,914   337,901   819,015     1,016,590  
Referral fees   2,069   1,641   6,463     3,569  
General and administrative expenses   335,284   305,407   983,867     968,914  
Total operating costs and expenses   522,267   644,949   1,809,345     1,989,073  
Income from operations   1,105,115   1,141,403   3,260,753     3,249,452  
Other income   4,500   9,500   13,500     15,500  
Income before income tax expense   1,109,615   1,150,903   3,274,253     3,264,952  
Income tax expense   ---   ---   (647 )   (645 )
Net income $ 1,109,615 $ 1,150,903 $ 3,273,606   $ 3,264,307  
         
Basic and diluted net income per common share outstanding:        
--Basic $ 0.10 $ 0.12 $ 0.32   $ 0.34  
--Diluted $ 0.10 $ 0.12 $ 0.32   $ 0.34  
         
Weighted average number of common shares outstanding        
--Basic   11,331,902   9,625,140   10,196,868     9,635,107  
--Diluted   11,331,902   9,625,140   10,196,868     9,635,107  
                     

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

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2021

  Common Shares Additional Paid in Capital Treasury Stock Retained Earnings Totals
  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 THREE MONTHS ENDED SEPTEMBER 30, 2020

  Common Shares Additional Paid in Capital Treasury Stock Retained Earnings Totals
  Shares Amount   Shares Cost    
Balance, July 1, 2020 9,882,058 $ 9,882 $ 33,150,564 255,213 $ (771,559 ) $ 463,050   $ 32,851,937  
Purchase of treasury shares       6,900   (27,380 )     (27,380 )
Non-cash compensation       3,266         3,266  
Dividends paid             (962,684 )   (962,684 )
Net income             1,150,903     1,150,903  
Balance, September 30, 2020 9,882,058 $ 9,882 $ 33,153,830 262,113 $ (798,939 ) $ 651,269   $ 33,016,042  

FOR THE NINE MONTHS ENDED SEPTEMBER 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  
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  

FOR THE NINE MONTHS ENDED SEPTEMBER 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       9,798         9,798  
Purchase of treasury shares       38,899   (179,251 )     (179,251 )
Dividends paid             (2,022,230 )   (2,022,230 )
Net income             3,264,307     3,264,307  
Balance, September 30, 2020 9,882,058 $ 9,882 $ 33,153,830 262,113 $ (798,939 ) $ 651,269   $ 33,016,042  

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

    Nine Months
    Ended September 30,
      2021       2020  
Cash flows from operating activities:        
Net income   $                 3,273,606     $                 3,264,307  
Adjustments to reconcile net income to net cash provided by operating activities -        
Amortization of deferred financing costs     66,324       76,136  
Adjustment to operating lease right-of-use asset and liability     2,603       (333 )
Depreciation     1,716       744  
Non-cash compensation expense     9,798       9,798  
Changes in operating assets and liabilities:        
Interest receivable on loans     (168,148 )     (163,650 )
Other assets     (28,538 )     (35,156 )
Accounts payable and accrued expenses     (92,982 )     (19,241 )
Deferred origination fees     85,945       130,795  
Net cash provided by operating activities     3,150,324       3,263,400  
         
Cash flows from investing activities:        
Issuance of short term loans     (28,534,303 )     (35,410,076 )
Collections received from loans     33,058,052       31,041,693  
Release of loan holdback relating to mortgage receivable     ---       (15,000 )
Purchase of fixed assets     ---       (923 )
Net cash provided by (used in) investing activities     4,523,749       (4,384,306 )
         
Cash flows from financing activities:        
Proceeds from public offering, net     12,354,460       ---  
(Repayment of) proceeds from line of credit, net     (16,824,722 )     4,546,858  
Dividends paid     (3,553,256 )     (3,181,291 )
Purchase of treasury shares     ---       (179,251 )
Deferred financing costs incurred     ---       (27,102 )
Net cash (used in) provided by financing activities     (8,023,518 )     1,159,214  
         
Net (decrease) increase in cash     (349,445 )     38,308  
Cash and restricted cash, beginning of year     459,137       118,407  
Cash, end of period   $ 109,692     $ 156,715  
         
Supplemental Cash Flow Information:        
Taxes paid during the period   $ 647     $ 645  
Interest paid during the period   $ 811,610     $ 954,622  
Operating leases paid during the period   $ 47,600     $ 40,973  
                 
Non-cash Investing Activities:                
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.
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