Manhattan Bridge Capital, Inc. Reports First Quarter 2020 Results
14 April 2020 - 3:54AM
Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that
net income for the three months ended March 31, 2020 was
approximately $1,016,000, or $0.11 per basic and diluted share
(based on approximately 9.7 million weighted-average outstanding
common shares), versus approximately $1,121,000, or $0.12 per basic
and diluted share (based on approximately 9.7 million
weighted-average outstanding common shares) for the three months
ended March 31, 2019, a decrease of $105,000, or 9.4%. This
decrease is primarily attributable to the decrease in revenue and
the increase in general and administrative expenses, offset by the
decrease in interest expense due to lower LIBOR rates.
Total revenues for the three months ended March
31, 2020 were approximately $1,711,000 compared to approximately
$1,788,000 for the three months ended March 31, 2019, a decrease of
$77,000, or 4.3%. The decrease in revenue was primarily
attributable to lower interest rates and origination points charged
on loans due to market conditions and intense competition from
other lenders. For the three months ended March 31, 2020,
approximately $1,474,000 of our revenue represents interest income
on secured commercial loans that we offer to small businesses,
compared to approximately $1,503,000 for the same period in 2019,
and approximately $237,000 and $285,000, respectively, represent
origination fees on such loans. The loans are principally secured
by collateral consisting of real estate and, generally, accompanied
by personal guarantees from the principals of the borrowers.
As of March 31, 2020, total shareholders' equity
was approximately $32,832,000.
Assaf Ran, Chairman of the Board and CEO,
stated, “In this challenging time, we believe we had a decent
quarter. I always believe that our portfolio will prevail in a
recession but given the level of uncertainty in the markets due to
COVID-19, we may have to be prepared to deal with issues we have
never experienced before. The good news is that we have less
competition now, we are paying the dividend on time, we have
announced a stock buyback plan and we increased our line of credit
to $32,500,000 as well as extended it until February 2023. I wish
you all good health.”
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 web site:
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 the belief that our portfolio will
prevail in a recession, that we may have to be prepared to deal
with issues we have never experienced before and the potential
repurchase of our shares, 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, 2019 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
SUBSIDIARYCONSOLIDATED BALANCE
SHEETS |
|
|
March 31,
2020(unaudited) |
|
December 31,
2019 (audited) |
Assets |
|
|
|
Loans receivable |
$ |
56,814,069 |
|
$ |
53,485,014 |
Interest
receivable on loans |
|
716,918 |
|
|
675,996 |
Cash |
|
212,562 |
|
|
118,407 |
Other
assets |
|
73,542 |
|
|
53,218 |
Operating lease right-of-use asset, net |
|
76,385 |
|
|
87,754 |
Deferred
financing costs |
|
44,135 |
|
|
22,637 |
Total assets |
$ |
57,937,611 |
|
$ |
54,443,026 |
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
Line of
credit |
$ |
18,860,213 |
|
|
$ |
15,232,993 |
|
Senior
secured notes (net of deferred financing costs of $453,642 and
$472,413) |
|
5,546,358 |
|
|
|
5,527,587 |
|
Deferred
origination fees |
|
454,488 |
|
|
|
322,119 |
|
Accounts
payable and accrued expenses |
|
165,286 |
|
|
|
151,823 |
|
Operating lease liability |
|
79,396 |
|
|
|
91,025 |
|
Other
liabilities |
|
--- |
|
|
|
15,000 |
|
Dividends payable |
|
--- |
|
|
|
1,159,061 |
|
Total liabilities |
|
25,105,741 |
|
|
|
22,499,608 |
|
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; 9,882,058
issued; 9,632,235 and 9,658,844 outstanding, respectively |
|
9,882 |
|
|
|
9,882 |
|
Additional paid-in capital |
|
33,147,298 |
|
|
|
33,144,032 |
|
Treasury
stock, at cost – 249,823 and 223,214 shares |
|
(750,724 |
) |
|
|
(619,688 |
) |
Retained
earnings (accumulated deficit) |
|
425,414 |
|
|
|
(590,808 |
) |
Total
stockholders’ equity |
|
32,831,870 |
|
|
|
31,943,418 |
|
Total liabilities and stockholders’ equity |
$ |
57,937,611 |
|
|
$ |
54,443,026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MANHATTAN BRIDGE CAPITAL, INC. AND
SUBSIDIARYCONSOLIDATED STATEMENTS OF
OPERATIONS (unaudited) |
|
|
Three Months Ended March 31, |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
Interest
income from loans |
$ |
1,473,544 |
|
$ |
1,503,085 |
Origination fees |
|
237,442 |
|
|
284,974 |
Total revenue |
|
1,710,986 |
|
|
1,788,059 |
Operating costs and expenses: |
|
|
|
|
|
Interest
and amortization of deferred financing costs |
|
352,442 |
|
|
378,882 |
Referral
fees |
|
542 |
|
|
2,083 |
General
and administrative expenses |
|
344,780 |
|
|
288,737 |
Total operating costs and expenses |
|
697,764 |
|
|
669,702 |
|
|
|
|
|
|
Income
from operations |
|
1,013,222 |
|
|
1,118,357 |
Other
income |
|
3,000 |
|
|
3,000 |
Net
income |
$ |
1,016,222 |
|
$ |
1,121,357 |
|
|
|
|
|
|
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 |
|
9,652,539 |
|
|
9,655,781 |
--Diluted |
|
9,652,753 |
|
|
9,658,160 |
|
|
|
|
|
|
|
|
|
|
|
|
MANHATTAN BRIDGE CAPITAL, INC. AND
SUBSIDIARYCONSOLIDATED STATEMENTS OF CHANGES IN
STOCKHOLDERS’ EQUITY(unaudited) |
|
FOR THE THREE MONTHS ENDED MARCH 31, 2020 |
|
Common Stock |
AdditionalPaid-in
Capital |
Treasury Stock |
(AccumulatedDeficit)
RetainedEarnings |
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 |
|
|
|
3,266 |
|
|
|
|
3,266 |
|
Purchase of treasury shares |
|
|
|
26,609 |
|
(131,036 |
) |
|
|
(131,036 |
) |
Net income |
|
|
|
|
|
|
1,016,222 |
|
|
1,016,222 |
|
Balance, March 31, 2020 |
9,882,058 |
$ |
9,882 |
$ |
33,147,298 |
249,823 |
$ |
(750,724 |
) |
$ |
425,414 |
|
$ |
32,831,870 |
|
FOR THE THREE MONTHS ENDED MARCH 31, 2019 |
|
Common Stock |
AdditionalPaid-in
Capital |
Treasury Stock |
(AccumulatedDeficit)
Retained Earnings |
Totals |
|
Shares |
Amount |
|
Shares |
Cost |
|
|
Balance, January 1, 2019 |
9,874,191 |
$ |
9,874 |
$ |
33,110,536 |
218,214 |
$ |
(590,234 |
) |
$ |
(448,801 |
) |
$ |
32,081,375 |
|
Exercise of stock options |
7,000 |
|
7 |
|
20,433 |
|
|
|
|
20,440 |
|
Non cash compensation |
|
|
|
3,266 |
|
|
|
|
3,266 |
|
Purchase of treasury shares |
|
|
|
1,000 |
|
(5,644 |
) |
|
|
(5,644 |
) |
Net income |
|
|
|
|
|
|
1,121,357 |
|
|
1,121,357 |
|
Balance, March 31, 2019 |
9,881,191 |
$ |
9,881 |
$ |
33,134,235 |
219,214 |
$ |
(595,878 |
) |
$ |
672,556 |
|
$ |
33,220,794 |
|
|
MANHATTAN BRIDGE CAPITAL, INC. AND
SUBSIDIARYCONSOLIDATED STATEMENTS OF CASH
FLOWS(unaudited) |
|
|
|
Three Months Ended March 31, |
|
|
|
2020 |
|
|
|
2019 |
|
Cash flows from operating
activities: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
1,016,222 |
|
|
$ |
1,121,357 |
|
Adjustments to reconcile net income to net cash provided by
operating activities - |
|
|
|
|
|
|
|
|
Amortization of deferred financing costs |
|
|
24,375 |
|
|
|
23,622 |
|
Adjustment to operating lease right-of-use asset and liability |
|
|
(261 |
) |
|
|
--- |
|
Depreciation |
|
|
283 |
|
|
|
431 |
|
Non cash compensation expense |
|
|
3,266 |
|
|
|
3,266 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Interest receivable on loans |
|
|
(40,922 |
) |
|
|
14,355 |
|
Other assets |
|
|
(19,683 |
) |
|
|
(14,659 |
) |
Accounts payable and accrued expenses |
|
|
13,463 |
|
|
|
(40,238 |
) |
Deferred origination fees |
|
|
132,369 |
|
|
|
17,406 |
|
Net cash provided by operating activities |
|
|
1,129,112 |
|
|
|
1,125,540 |
|
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities: |
|
|
|
|
|
|
|
|
Issuance of short term loans |
|
|
(16,082,435 |
) |
|
|
(13,325,965 |
) |
Collections received from loans |
|
|
12,753,380 |
|
|
|
13,368,898 |
|
Release of loan holdback relating to mortgage receivable |
|
|
(15,000 |
) |
|
|
--- |
|
Purchase of fixed assets |
|
|
(923 |
) |
|
|
--- |
|
Net cash (used in) provided by investing
activities |
|
|
(3,344,978 |
) |
|
|
42,933 |
|
|
|
|
|
|
|
|
|
|
Cash flows from financing
activities: |
|
|
|
|
|
|
|
|
Proceeds from (repayment of) line of credit, net |
|
|
3,627,220 |
|
|
|
(204,986 |
) |
Dividend paid |
|
|
(1,159,061 |
) |
|
|
(1,158,717 |
) |
Purchase of treasury shares |
|
|
(131,036 |
) |
|
|
(5,645 |
) |
Deferred financing costs incurred |
|
|
(27,102 |
) |
|
|
--- |
|
Proceeds from exercise of stock options |
|
|
--- |
|
|
|
20,440 |
|
Net cash provided by (used in) financing
activities |
|
|
2,310,021 |
|
|
|
(1,348,908 |
) |
|
|
|
|
|
|
|
|
|
Net increase (decrease) in
cash |
|
|
94,155 |
|
|
|
(180,435 |
) |
Cash, beginning of period |
|
|
118,407 |
|
|
|
355,057 |
|
Cash, end of period |
|
$ |
212,562 |
|
|
$ |
174,622 |
|
|
|
|
|
|
|
|
|
|
Supplemental Cash Flow
Information: |
|
|
|
|
|
|
|
|
Interest paid during the
period |
|
$ |
328,871 |
|
|
$ |
370,621 |
|
Operating leases paid during
the period |
|
$ |
13,604 |
|
|
$ |
12,425 |
|
|
|
|
|
|
|
|
|
|
Supplemental Information –
Noncash Information |
|
|
|
|
|
|
|
|
Establishment of right-of-use
asset and operating lease liability |
|
|
--- |
|
|
|
135,270 |
|
|
|
|
|
|
|
|
|
|
Contact:
Assaf Ran, CEO
Vanessa Kao, CFO
(516) 444-3400
SOURCE: Manhattan Bridge Capital, Inc.
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