Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that its net income for the three months ended March 31, 2023 was approximately $1,260,000, or $0.11 per share (based on approximately 11.5 million weighted-average outstanding common shares), compared to approximately $1,425,000 or $0.12 per share (based on approximately 11.5 million weighted-average outstanding common shares) for the three months ended March 31, 2022, a decrease of $165,000, or 11.6%. This decrease is primarily attributable to a significant increase in interest expense due to higher LIBOR/SOFR rates relating to the use of the Company’s credit line in order to support its ability to increase loan originations and a special bonus to officers in 2023, partially offset by the increase in interest income.

Total revenues for the three months ended March 31, 2023 were approximately $2,398,000 compared to approximately $2,115,000 for the three months ended March 31, 2022, an increase of $283,000, or 13.4%. The increase in revenue was due to an increase in lending operations and higher interest rates charged on the Company’s commercial loans. For the three months ended March 31, 2023, approximately $1,954,000 of the Company’s revenue represents interest income on secured commercial loans that we offer to real estate investors, compared to approximately $1,644,000 for the same period in 2022, and approximately $444,000 and $471,000, respectively, represent 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 March 31, 2023, total shareholders’ equity was approximately $42,833,000.

On April 11, 2023, the Company’s Board of Directors authorized a share buy back program, pursuant to which it may, from time to time, purchase up to 100,000 of its common shares. This program does not obligate the Company to purchase any shares and expires on April 10, 2024. The authorization for the program is able to be terminated, increased or decreased by the Company’s Board of Directors in its discretion at any time.

Assaf Ran, Chairman of the Board and Chief Executive Officer of the Company, stated, “The high interest environment contributed to our revenue increase. However, our interest expense almost doubled versus the same quarter a year ago. Generally, we have experienced slower and riskier real estate markets in our geographic areas of operation, together with tight liquidity and less competition. Yet, due to the strength of our loan portfolio, we suffered no losses and impairment expenses.”

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.

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS

Assets March 31, 2023 (unaudited)   December 31, 2022 (audited)
Loans receivable $ 71,950,185   $ 74,483,463
Interest receivable on loans   1,259,047     1,363,502
Cash   75,192     103,540
Other assets   98,948     59,566
Operating lease right-of-use asset, net   248,508     262,222
Deferred financing costs, net   37,130     7,708
Total assets $ 73,669,010   $ 76,280,001
Liabilities and Stockholders’ Equity      
Liabilities:      
Line of credit $ 22,580,277     $ 24,994,234  
Senior secured notes (net of deferred financing costs of $228,384 and $247,155, respectively)   5,771,616       5,752,845  
Deferred origination fees   650,856       669,128  
Accounts payable and accrued expenses   261,825       289,868  
Operating lease liability   260,455       273,485  
Loan holdback   17,500        
Dividends payable   1,293,181       1,436,868  
Total liabilities   30,835,710       33,416,428  
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 issued; 11,494,945 outstanding   11,757       11,757  
Additional paid-in capital   45,539,077       45,535,811  
Treasury stock, at cost - 262,113 shares   (798,939 )     (798,939 )
Accumulated deficit   (1,918,595 )     (1,885,056 )
Total stockholders’ equity   42,833,300       42,863,573  
Total liabilities and stockholders’ equity $ 73,669,010     $ 76,280,001  
               

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY

  Three Months Ended March 31,
  2023 2022
     
Interest income from loans $ 1,953,821 $ 1,643,789
Origination fees   443,971   471,271
Total revenue   2,397,792   2,115,060
     
Operating costs and expenses:    
Interest and amortization of deferred financing costs   646,263   331,853
Referral fees   291   1,361
General and administrative expenses   496,096   361,489
Total operating costs and expenses   1,142,650   694,703
     
Income from operations   1,255,142   1,420,357
Other income   4,500   4,500
Net income $ 1,259,642 $ 1,424,857
     
Basic and diluted net income per common share outstanding:    
–Basic $ 0.11 $ 0.12
–Diluted $ 0.11 $ 0.12
     
Weighted average number of common shares outstanding:    
–Basic   11,494,945   11,494,945
–Diluted   11,494,945   11,494,945
         

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

FOR THE THREE MONTHS ENDED MARCH 31, 2023

  Common Shares Additional Paid-in Capital Treasury Stock AccumulatedDeficit Totals
           
  Shares Amount   Shares Cost    
Balance, January 1, 2023 11,757,058 $11,757 $45,535,811 262,113 $(798,939 ) $(1,885,056 ) $42,863,573  
Non-cash compensation     3,266       3,266  
Dividends declared and payable           (1,293,181 ) (1,293,181 )
Net income ___________         1,259,642   1,259,642  
Balance, March 31, 2023 11,757,058 $11,757 $45,539,077 262,113 $(798,939 ) $(1,918,595 ) $42,833,300  

FOR THE THREE MONTHS ENDED MARCH 31, 2022

  Common Shares AdditionalPaid-in Capital Treasury Stock AccumulatedDeficit 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     3,266       3,266  
Dividends declared and payable           (1,436,868 ) (1,436,868 )
Net income ___________         1,424,857   1,424,857  
Balance, March 31, 2022 11,757,058 $11,757 $45,526,012 262,113 $(798,939 ) $(1,361,333 ) $43,377,497  
                     

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

    Three Months Ended March 31,
      2023       2022  
Cash flows from operating activities:        
Net income   $ 1,259,642     $ 1,424,857  
Adjustments to reconcile net income to net cash provided by operating activities -        
Amortization of deferred financing costs     27,540       24,015  
Adjustment to operating lease right-of-use asset and liability     685       1,224  
Depreciation     892       469  
Non-cash compensation expense     3,266       3,266  
Changes in operating assets and liabilities:        
Interest receivable on loans     104,455       (73,474 )
Other assets     (35,189 )     (27,280 )
Accounts payable and accrued expenses     (28,043 )     (5,958 )
Deferred origination fees     (18,272 )     107,772  
Net cash provided by operating activities     1,314,976       1,454,891  
         
Cash flows from investing activities:        
Issuance of short term loans     (13,734,803 )     (18,295,339 )
Collections received from loans     16,285,581       15,572,367  
Purchase of fixed assets     (5,085 )      
Net cash provided by (used in) investing activities     2,545,693       (2,722,972 )
         
Cash flows from financing activities:        
(Repayment of) proceeds from line of credit, net     (2,413,957 )     2,743,588  
Dividend paid     (1,436,868 )     (1,436,868 )
Deferred financing costs incurred     (38,192 )     (35,819 )
Net cash (used in) provided by financing activities     (3,889,017 )     1,270,901  
         
Net (decrease) increase in cash     (28,348 )     2,820  
Cash, beginning of year     103,540       142,546  
Cash, end of period   $ 75,192     $ 145,366  
Supplemental Cash Flow Information:      
Interest paid during the period $ 636,990   $ 277,757
Operating leases paid during the period $ 15,917   $ 15,881
       
Supplemental Information – Noncash Information:      
Dividend declared and payable $ 1,293,181   $ 1,436,868
Loan holdback relating to mortgage receivable $ 17,500   $
           

SOURCE: Manhattan Bridge Capital, Inc.

Contact:
Assaf Ran, CEO
Vanessa Kao, CFO
(516) 444-3400
Manhattan Bridge Capital (NASDAQ:LOAN)
Historical Stock Chart
From Jan 2024 to Feb 2024 Click Here for more Manhattan Bridge Capital Charts.
Manhattan Bridge Capital (NASDAQ:LOAN)
Historical Stock Chart
From Feb 2023 to Feb 2024 Click Here for more Manhattan Bridge Capital Charts.