Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that
its total revenues for the three months ended June 30, 2022 were
approximately $2,117,000 compared to approximately $1,713,000 for
the three months ended June 30, 2021, an increase of $404,000, or
23.6%. The increase in revenue was due to an increase in lending
operations. For the three months ended June 30, 2022 and 2021,
approximately $1,612,000 and $1,424,000, respectively, of the
Company’s revenues were attributable to interest income on secured
commercial loans that it offers to real estate investors, and
approximately $504,000 and $290,000, 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 three months ended June 30,
2022 was approximately $1,356,000, or $0.12 per basic and diluted
share (based on approximately 11.49 million weighted-average
outstanding common shares), as compared to approximately
$1,058,000, or $0.11 per basic and diluted share (based on
approximately 9.62 million weighted-average outstanding common
shares), for the three months ended June 30, 2021, an increase of
$298,000, or 28.2%. This increase is primarily attributable to the
increase in revenue, partially offset by increases in interest
expense and in general and administrative expenses.
Total revenues for the six months ended June 30,
2022 were approximately $4,232,000 compared to approximately
$3,443,000 for the six months ended June 30, 2021, an increase of
$789,000, or 22.9%. The increase in revenue was due to an increase
in lending operations. For the six months ended June 30, 2022 and
2021, revenues of approximately $3,256,000 and $2,867,000,
respectively, were attributable to interest income on secured
commercial loans that the Company offers to real estate investors,
and approximately $976,000 and $576,000, respectively, were
attributable to origination fees on such loans.
Net income for the six months ended June 30,
2022 was approximately $2,781,000, or $0.24 per basic and diluted
share (based on approximately 11.49 million weighted-average
outstanding common shares) compared to approximately $2,164,000, or
$0.22 per basic and diluted share (based on approximately 9.62
million weighted-average outstanding common shares), for the six
months ended June 30, 2021, an increase of $617,000, or 28.5%. This
increase is primarily attributable to the increase in revenue,
partially offset by increases in interest expense and in general
and administrative expenses.
As of June 30, 2022, total stockholders' equity
was approximately $43,300,000.
Assaf Ran, Chairman of the Board and CEO,
stated, “While we continue to present an impressive performance of
no defaults since inception, we are operating in the context of new
market dynamics -- interest rates are increasing, banks are
tighter, and real estate developers are hesitant. We believe that
in this environment, our ultra-low debt-to-equity ratio becomes a
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 we discuss the belief that in the current market
environment, our ultra-low debt-to-equity ratio becomes a strength,
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; (ix) an increase in interest rates may impact our
profitability and (x) 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
Assets |
|
June 30, 2022(unaudited) |
|
|
December 31, 2021 (audited) |
Loans receivable |
$ |
69,303,663 |
|
$ |
65,715,364 |
Interest receivable on loans |
|
1,052,332 |
|
|
955,443 |
Cash |
|
117,622 |
|
|
142,546 |
Other assets |
|
129,536 |
|
|
64,745 |
Operating lease right-of-use asset, net |
|
289,651 |
|
|
317,080 |
Deferred financing costs, net |
|
29,902 |
|
|
10,539 |
Total assets |
$ |
70,922,706 |
|
$ |
67,205,717 |
Liabilities and Stockholders’
Equity
Liabilities: |
|
|
|
|
|
|
|
Line of credit |
$ |
19,273,526 |
|
|
$ |
15,645,970 |
|
Senior secured notes (net of deferred financing costs of $284,698
and $322,241, respectively) |
|
5,715,301 |
|
|
|
5,677,759 |
|
Deferred origination fees |
|
712,627 |
|
|
|
580,461 |
|
Accounts payable and accrued expenses |
|
185,320 |
|
|
|
154,169 |
|
Operating lease liability |
|
299,135 |
|
|
|
324,248 |
|
Dividends payable |
|
1,436,868 |
|
|
|
1,436,868 |
|
Total liabilities |
|
27,622,777 |
|
|
|
23,819,475 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
Preferred stock - $.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 |
|
45,529,278 |
|
|
|
45,522,746 |
|
Treasury stock, at cost – 262,113 shares |
|
(798,939 |
) |
|
|
(798,939 |
) |
Accumulated deficit |
|
(1,442,167 |
) |
|
|
(1,349,322 |
) |
Total stockholders’ equity |
|
43,299,929 |
|
|
|
43,386,242 |
|
Total liabilities and stockholders’ equity |
$ |
70,922,706 |
|
|
$ |
67,205,717 |
|
MANHATTAN BRIDGE CAPITAL, INC. AND
SUBSIDIARY CONSOLIDATED STATEMENTS OF
OPERATIONS (unaudited)
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Interest income from loans |
$ |
1,612,308 |
|
$ |
1,423,759 |
|
$ |
3,256,097 |
|
$ |
2,866,573 |
|
Origination fees |
|
504,455 |
|
|
289,670 |
|
|
975,726 |
|
|
576,143 |
|
Total revenue |
|
2,116,763 |
|
|
1,713,429 |
|
|
4,231,823 |
|
|
3,442,716 |
|
|
|
|
|
|
Operating costs and expenses: |
|
|
|
|
Interest and amortization of deferred financing costs |
|
376,383 |
|
|
316,915 |
|
|
708,236 |
|
|
634,101 |
|
Referral fees |
|
1,958 |
|
|
2,643 |
|
|
3,320 |
|
|
4,394 |
|
General and administrative expenses |
|
386,238 |
|
|
339,602 |
|
|
747,726 |
|
|
648,583 |
|
Total operating costs and expenses |
|
764,579 |
|
|
659,160 |
|
|
1,459,282 |
|
|
1,287,078 |
|
Income from operations |
|
1,352,184 |
|
|
1,054,269 |
|
|
2,772,541 |
|
|
2,155,638 |
|
Other income |
|
4,500 |
|
|
4,500 |
|
|
9,000 |
|
|
9,000 |
|
Income before income tax expense |
|
1,356,684 |
|
|
1,058,769 |
|
|
2,781,541 |
|
|
2,164,638 |
|
Income tax expense |
|
(650 |
) |
|
(647 |
) |
|
(650 |
) |
|
(647 |
) |
Net income |
$ |
1,356,034 |
|
$ |
1,058,122 |
|
$ |
2,780,891 |
|
$ |
2,163,991 |
|
|
|
|
|
|
Basic and diluted net income per common share outstanding: |
|
|
|
|
--Basic |
$ |
0.12 |
|
$ |
0.11 |
|
$ |
0.24 |
|
$ |
0.22 |
|
--Diluted |
$ |
0.12 |
|
$ |
0.11 |
|
$ |
0.24 |
|
$ |
0.22 |
|
|
|
|
|
|
Weighted average number of common shares outstanding: |
|
|
|
|
--Basic |
|
11,494,945 |
|
|
9,619,945 |
|
|
11,494,945 |
|
|
9,619,945 |
|
--Diluted |
|
11,494,945 |
|
|
9,619,945 |
|
|
11,494,945 |
|
|
9,619,945 |
|
MANHATTAN BRIDGE CAPITAL, INC. AND
SUBSIDIARY CONSOLIDATED STATEMENTS OF CHANGES IN
STOCKHOLDERS’ EQUITY (unaudited)
FOR THE THREE MONTHS ENDED JUNE 30,
2022
|
Common Shares |
Additional Paid in Capital |
Treasury Stock |
Accumulated Deficit |
Totals |
|
Shares |
Amount |
|
Shares |
Cost |
|
|
Balance, April 1, 2022 |
11,757,058 |
$11,757 |
$45,526,012 |
262,113 |
$(798,939 |
) |
$(1,361,333 |
) |
$43,377,497 |
|
Non - cash compensation |
|
|
|
3,266 |
|
|
|
|
3,266 |
|
Dividends declared and payable |
|
|
|
|
|
|
(1,436,868 |
) |
|
(1,436,868 |
) |
Net income |
|
|
|
|
|
|
1,356,034 |
|
|
1,356,034 |
|
Balance, June 30, 2022 |
11,757,058 |
$11,757 |
$45,529,278 |
262,113 |
$(798,939 |
) |
$(1,442,167 |
) |
$43,299,929 |
|
FOR THE THREE MONTHS ENDED JUNE 30,
2021
|
Common Shares |
Additional Paid in Capital |
Treasury Stock |
Retained Earnings |
Totals |
|
Shares |
Amount |
|
Shares |
Cost |
|
|
Balance, April 1, 2021 |
9,882,058 |
$9,882 |
$33,160,362 |
262,113 |
$(798,939 |
) |
$ 702,020 |
|
$ 33,073,325 |
|
Non - cash compensation |
|
|
|
3,266 |
|
|
|
|
3,266 |
|
Dividends paid |
|
|
|
|
|
|
(1,058,194 |
) |
|
(1,058,194 |
) |
Net income |
|
|
|
|
|
|
1,058,122 |
|
|
1,058,122 |
|
Balance, June 30, 2021 |
9,882,058 |
$9,882 |
$33,163,628 |
262,113 |
$(798,939 |
) |
$ 701,948 |
|
$33,076,519 |
|
FOR THE SIX MONTHS ENDED JUNE 30,
2022
|
Common Shares |
Additional Paid in Capital |
Treasury Stock |
Accumulated Deficit |
Totals |
|
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 |
|
|
|
6,532 |
|
|
|
|
6,532 |
|
Dividends paid |
|
|
|
|
|
|
(1,436,868 |
) |
|
(1,436,868 |
) |
Dividends declared and payable |
|
|
|
|
|
|
(1,436,868 |
) |
|
(1,436,868 |
) |
Net income |
|
|
|
|
|
|
2,780,891 |
|
|
2,780,891 |
|
Balance, June 30, 2022 |
11,757,058 |
$11,757 |
$45,529,278 |
262,113 |
$(798,939 |
) |
$(1,442,167 |
) |
$43,299,929 |
|
FOR THE SIX MONTHS ENDED JUNE 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 |
|
Non - cash compensation |
|
|
|
6,532 |
|
|
|
|
6,532 |
|
Dividends paid |
|
|
|
|
|
|
(1,058,194 |
) |
|
(1,058,194 |
) |
Net income |
|
|
|
|
|
|
2,163,991 |
|
|
2,163,991 |
|
Balance, June 30, 2021 |
9,882,058 |
$9,882 |
$33,163,628 |
262,113 |
$(798,939 |
) |
$ 701,948 |
|
$33,076,519 |
|
MANHATTAN BRIDGE CAPITAL, INC. AND
SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH
FLOWS (unaudited)
|
|
Six Months Ended June 30, |
|
|
2022 |
|
2021 |
Cash
flows from operating activities: |
|
|
|
|
Net income |
|
$ |
2,780,891 |
|
$ |
2,163,991 |
Adjustments to reconcile net income to net cash provided by
operating activities - |
|
|
|
|
Amortization of deferred financing costs |
|
53,999 |
|
45,294 |
Adjustment to operating lease right-of-use asset and liability |
|
2,316 |
|
2,060 |
Depreciation |
|
972 |
|
1,153 |
Non-cash compensation expense |
|
6,532 |
|
6,532 |
Changes in operating assets and liabilities: |
|
|
|
|
Interest receivable on loans |
|
(96,889) |
|
(88,502) |
Other assets |
|
(63,871) |
|
(56,768) |
Accounts payable and accrued expenses |
|
31,151 |
|
(35,028) |
Deferred origination fees |
|
132,166 |
|
(9,885) |
Net cash provided by operating activities |
|
2,847,267 |
|
2,028,847 |
|
|
|
|
|
Cash
flows from investing activities: |
|
|
|
|
Issuance of short term loans |
|
(37,953,007) |
|
(15,567,677) |
Collections received from loans |
|
34,364,708 |
|
20,279,776 |
Purchase of fixed assets |
|
(1,893) |
|
--- |
Net cash (used in) provided by investing activities |
|
(3,590,192) |
|
4,712,099 |
|
|
|
|
|
Cash
flows from financing activities: |
|
|
|
|
Proceeds from (repayment of) line of credit, net |
|
3,627,556 |
|
(4,911,758) |
Dividends paid |
|
(2,873,736) |
|
(2,116,388) |
Deferred financing costs incurred |
|
(35,819) |
|
--- |
Pre-offering costs incurred |
|
--- |
|
(18,750) |
Net cash provided by (used in) financing activities |
|
718,001 |
|
(7,046,896) |
|
|
|
|
|
Net
decrease in cash |
|
(24,924) |
|
(305,950) |
Cash
and restricted cash*, beginning of year |
|
142,546 |
|
459,137 |
Cash
and restricted cash*, end of period |
|
$ |
117,622 |
|
$ |
153,187 |
|
|
|
|
|
Supplemental Cash Flow Information: |
|
|
|
|
Taxes paid during the period |
|
$ |
650 |
|
$ |
647 |
Interest paid during the period |
|
$ |
608,902 |
|
$ |
603,869 |
Operating leases paid during the period |
|
$ |
31,786 |
|
$ |
31,719 |
|
|
|
|
|
Supplemental Information – Noncash Information: |
|
|
|
|
Dividend declared and payable |
|
$ |
1,436,868 |
|
$ --- |
* At January 1, 2021, cash and restricted cash
included $327,483 of restricted cash. No other periods above
included restricted cash.
SOURCE: Manhattan Bridge Capital, Inc.
Contact:
Assaf Ran, CEO
Vanessa Kao, CFO
(516) 444-3400
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