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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