Manhattan Bridge Capital, Inc. (NASDAQ: LOAN) announced today that
net income for the year ended December 31, 2021 was approximately
$4,423,000, or $0.42 per share (based on approximately 10.5 million
weighted-average outstanding common shares), versus approximately
$4,229,000, or $0.44 per share (based on approximately 9.6 million
weighted-average outstanding common shares) for the year ended
December 31, 2020, an increase in net income of $194,000, or 4.6%.
This increase is primarily attributable to decreases in interest
and payroll expenses, offset by a decrease in revenue.
Total revenue for the year ended December 31,
2021 was approximately $6,808,000, compared to approximately
$7,006,000 for the year ended December 31, 2020, a decrease of
$198,000, or 2.8%. The decrease in revenue was primarily
attributable to lower interest rates and origination fees charged
on loans due to market conditions and intense competition from
other lenders. In 2021, approximately $5,609,000 of the Company’s
revenue represents interest income on secured, real estate loans
that we offer to small businesses compared to approximately
$5,989,000 in 2020, and approximately $1,199,000 represents
origination fees on such loans, compared to approximately
$1,018,000 in 2020. The loans are principally secured by collateral
consisting of real estate and accompanied by personal guarantees
from the principals of the borrowers.
Total operating costs and expenses for the year
ended December 31, 2021 were approximately $2,402,000 compared to
approximately $2,796,000 for the year ended December 31, 2020, a
decrease of $394,000, or 14.1%. The decrease in operating costs and
expenses was primarily attributable to decreased interest expense
due to lower LIBOR rates as well as a reduced outstanding credit
line balance resulting from the use of net proceeds from a public
offering of the Company’s common stock in July 2021, an annual
bonus paid to the Company’s Chief Executive Officer in 2020, which
was not repeated in 2021, and a voluntary waiver from the Company’s
Chief Executive Officer forgoing his base salary for the months of
October, November and December 2021.
As of December 31, 2021, total shareholders'
equity was approximately $43,386,000, compared to approximately
$31,964,000 as of December 31, 2020.
Assaf Ran, Chairman of the Board and CEO,
stated, “2021 was an interesting year -- it started with extreme
uncertainty, followed by enormous optimism and ended with
flourishing real estate markets stimulated by plenty of cash all
around. During the year, we had to adjust the terms of loans we
made to borrowers to stay in-line with market standards. In July
2021, we completed a successful share offering at $7.20 per share,
adding approximately $13 million to our equity, in order to secure
future growth. It took us approximately six months to deploy the
new funds raised in the public offering, so I believe that the
impact of the offering on our earnings per share (EPS) will show in
the first quarter of 2022,” 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 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 we discuss the state of the real estate markets,
the belief that the impact of the public offering on our EPS will
show in the first quarter of 2022, 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, 2021 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 |
DECEMBER 31,
2021 and 2020 |
|
Assets |
2021 |
|
|
2020 |
|
Loans receivable |
$
65,715,364 |
|
|
$
58,097,970 |
|
Interest receivable on loans |
955,443 |
|
|
827,236 |
|
Cash |
142,546 |
|
|
131,654 |
|
Cash - restricted |
--- |
|
|
327,483 |
|
Other assets |
64,745 |
|
|
66,566 |
|
Operating lease right-of-use asset, net |
317,080 |
|
|
369,699 |
|
Deferred financing costs, net |
10,539 |
|
|
22,807 |
|
Total assets |
$ 67,205,717 |
|
|
$ 59,843,415 |
|
Liabilities and Stockholders’
Equity
Liabilities: |
|
|
|
Line of
credit |
$15,645,970 |
|
|
$20,308,873 |
|
Senior secured
notes (net of deferred financing costs of $322,241 and $397,327,
respectively) |
5,677,759 |
|
|
5,602,673 |
|
Deferred origination fees |
580,461 |
|
|
367,638 |
|
Accounts payable and accrued expenses |
154,169 |
|
|
168,940 |
|
Operating lease liability |
324,248 |
|
|
372,907 |
|
Dividends payable |
1,436,868 |
|
|
1,058,194 |
|
Total liabilities |
23,819,475 |
|
|
27,879,225 |
|
|
|
|
|
|
|
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 and 9,882,058 issued; 11,494,945 and 9,619,945
outstanding, respectively |
11,757 |
|
|
9,882 |
|
Additional paid-in capital |
45,522,746 |
|
|
33,157,096 |
|
Treasury stock, at cost – 262,113 shares |
(798,939 |
) |
|
(798,939 |
) |
Accumulated deficit |
(1,349,322 |
) |
|
(403,849 |
) |
Total stockholders’ equity |
43,386,242 |
|
|
31,964,190 |
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
$67,205,717 |
|
|
$59,843,415 |
|
MANHATTAN
BRIDGE CAPITAL, INC. AND SUBSIDIARY |
CONSOLIDATED
STATEMENTS OF OPERATIONS |
FOR THE
YEARS ENDED DECEMBER 31, 2021 and 2020 |
|
|
2021 |
|
2020 |
Interest income from loans |
$5,608,660 |
|
|
$5,988,622 |
|
Origination fees |
1,199,230 |
|
|
1,017,729 |
|
Total
Revenue |
6,807,890 |
|
|
7,006,351 |
|
|
|
|
|
|
|
Operating
costs and expenses: |
|
|
|
Interest and
amortization of deferred financing costs |
1,045,548 |
|
|
1,356,015 |
|
Referral
fees |
7,532 |
|
|
5,875 |
|
General and
administrative expenses |
1,348,838 |
|
|
1,434,438 |
|
Total operating costs and expenses |
2,401,918 |
|
|
2,796,328 |
|
|
|
|
|
Income from
operations |
4,405,972 |
|
|
4,210,023 |
|
Other
income |
18,000 |
|
|
20,000 |
|
Income
before income tax expense |
4,423,972 |
|
|
4,230,023 |
|
Income tax
expense |
(647 |
) |
|
(645 |
) |
Net
income |
$4,423,325 |
|
|
$4,229,378 |
|
|
|
|
|
Basic and
diluted net income per common share outstanding: |
|
|
|
--Basic |
$0.42 |
|
|
$0.44 |
|
--Diluted |
$0.42 |
|
|
$0.44 |
|
|
|
|
|
Weighted
average number of common shares outstanding |
|
|
|
--Basic |
10,524,055 |
|
|
9,631,296 |
|
--Diluted |
10,524,055 |
|
|
9,631,296 |
|
MANHATTAN
BRIDGE CAPITAL, INC. AND SUBSIDIARY |
CONSOLIDATED
STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY |
FOR THE
YEARS ENDED DECEMBER 31, 2021 and 2020 |
|
|
Common Stock |
Additional Paid-inCapital |
Treasury Stock |
Accumulated Deficit |
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 |
|
|
13,064 |
|
|
|
13,064 |
|
Purchase of treasury shares |
|
|
|
38,899 |
(179,251 |
) |
|
(179,251 |
) |
Dividends paid |
|
|
|
|
|
(2,984,225 |
) |
(2,984,225 |
) |
Dividends declared and payable |
|
|
|
|
|
(1,058,194 |
) |
(1,058,194 |
) |
Net income for the year ended December 31, 2020 |
|
|
|
|
|
4,229,378 |
|
4,229,378 |
|
Balance, December 31, 2020 |
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 |
|
|
13,065 |
|
|
|
13,065 |
|
Dividends paid |
|
|
|
|
|
(3,931,930 |
) |
(3,931,930 |
) |
Dividends declared and payable |
|
|
|
|
|
(1,436,868 |
) |
(1,436,868 |
) |
Net income for the year ended December 31, 2021 |
|
|
|
|
|
4,423,325 |
|
4,423,325 |
|
Balance, December 31, 2021 |
11,757,058 |
$11,757 |
$45,522,746 |
262,113 |
$(798,939 |
) |
$(1,349,322 |
) |
$43,386,242 |
|
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
FOR THE YEARS ENDED DECEMBER 31, 2021 and
2020 |
|
|
2021 |
|
|
2020 |
|
Cash flows
from operating activities: |
|
|
|
|
|
Net income |
$4,423,325 |
|
|
$4,229,378 |
|
Adjustments to reconcile net income to net cash provided by
operating activities - |
|
|
|
Amortization of deferred financing costs |
87,353 |
|
|
102,017 |
|
Depreciation |
2,265 |
|
|
1,135 |
|
Non cash compensation expense |
13,065 |
|
|
13,064 |
|
Adjustment to operating lease right-of-use asset and liability |
3,960 |
|
|
(62 |
) |
Changes in operating assets and liabilities |
|
|
|
Interest receivable on loans |
(128,207 |
) |
|
(180,911 |
) |
Other assets |
(443 |
) |
|
(5,724 |
) |
Accounts payable and accrued expenses |
(14,771 |
) |
|
17,117 |
|
Deferred origination fees |
212,823 |
|
|
45,519 |
|
Net cash provided by operating activities |
4,599,370 |
|
|
4,221,533 |
|
|
|
|
|
Cash flows
from investing activities: |
|
|
|
Issuance of short term loans |
(49,267,892 |
) |
|
(43,719,304 |
) |
Collections received from loans |
41,650,498 |
|
|
39,136,019 |
|
Release of loan holdback relating to mortgage receivable |
--- |
|
|
(15,000 |
) |
Purchase of fixed assets |
--- |
|
|
(8,759 |
) |
Net cash used in investing activities |
(7,617,394 |
) |
|
(4,607,044 |
) |
|
|
|
|
|
|
Cash flows
from financing activities: |
|
|
|
Proceeds from public offering, net |
12,354,460 |
|
|
--- |
|
(Repayment of) proceeds from line of credit, net |
(4,662,903 |
) |
|
5,075,880 |
|
Dividends paid |
(4,990,124 |
) |
|
(4,143,286 |
) |
Purchase of treasury shares |
--- |
|
|
(179,251 |
) |
Deferred financing costs incurred |
--- |
|
|
(27,102 |
) |
Net cash provided by financing activities |
2,701,433 |
|
|
726,241 |
|
|
|
|
|
Net
(decrease) increase in cash and restricted cash |
(316,591 |
) |
|
340,730 |
|
Cash and
restricted cash, beginning of year |
459,137 |
|
|
118,407 |
|
Cash and
restricted cash, end of year |
$142,546 |
|
|
$459,137 |
|
|
|
|
|
|
|
|
|
Supplemental
Cash Flow Information: |
|
|
|
Taxes paid
during the year |
$647 |
|
|
$645 |
|
Interest
paid during the year |
$982,491 |
|
|
$1,264,533 |
|
Operating
leases paid during the year |
$63,481 |
|
|
$56,572 |
|
|
|
|
|
Supplemental
Information – Noncash Information:Dividend declared and
payable |
$1,436,868 |
|
|
$1,058,194 |
|
Establishment of right-of-use asset and operating lease
liability |
$--- |
|
|
$329,421 |
|
Interest
receivable converted to loans receivable in connection with
forbearance agreements |
$--- |
|
|
$29,671 |
|
SOURCE: Manhattan Bridge Capital, Inc.
Contact:
Assaf Ran, CEO
Vanessa Kao, CFO
(516) 444-3400
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