Manhattan Bridge Capital, Inc. Reports First Quarter 2021 Results

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GREAT NECK, N.Y., April 14, 2021 (GLOBE NEWSWIRE) — Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that net income for the three months ended March 31, 2021 was approximately $1,106,000, or $0.12 per basic and diluted share (based on approximately 9.6 million weighted-average outstanding common shares), versus approximately $1,016,000, or $0.11 per basic and diluted share (based on approximately 9.7 million weighted-average outstanding common shares) for the three months ended March 31, 2020, an increase of $90,000, or 8.9%. This increase is primarily attributable to the decreases in interest expense and in general and administrative expenses.

Total revenues for the three months ended March 31, 2021 were approximately $1,729,000 compared to approximately $1,711,000 for the three months ended March 31, 2020, an increase of $18,000, or 1.0%. For the three months ended March 31, 2021, approximately $1,443,000 of our revenue represents interest income on secured commercial loans that we offer to small businesses, compared to approximately $1,474,000 for the same period in 2020, and approximately $286,000 and $237,000, 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, 2021, total shareholders’ equity was approximately $33,073,000.

Assaf Ran, Chairman of the Board and CEO, stated, “I believe that the first quarter of 2021 reflects buds of optimism. We returned to work from the office, of course following all regulations, and our deal flow strengthened to approximately our pre-COVID pace. There are still many concerns. However, most of our loans are secured by first mortgages on 1-4 family houses located outside of Manhattan, a product that has actually appreciated in value during the pandemic. Given current market conditions, and considering the extra safety measures we’re taking to continue our no defaults track record, I am pleased with the results and hope to return to growth mode in the near future. I wish everyone 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 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 first quarter of 2021 reflects buds of optimism, that our deal flow strengthened to approximately our pre-COVID pace and the hope that we will return to growth mode in the near future, 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

Assets

March 31, 2021
(unaudited)
  December 31, 2020
(audited)
Loans receivable $ 58,490,238   $ 58,097,970
Interest receivable on loans   915,132     827,236
Cash           205,834     131,654
Cash – restricted       327,483
Other assets   80,977     66,566
Operating lease right-of-use asset, net   356,535     369,699
Deferred financing costs, net   17,315     22,807
Total assets $ 60,066,031   $ 59,843,415

Liabilities and Stockholders’ Equity

Liabilities:      
Line of credit $ 20,441,047   $ 20,308,873
Senior secured notes (net of deferred financing costs of $378,556 and $397,327, respectively)   5,621,444     5,602,673
Deferred origination fees   438,927     367,638
Accounts payable and accrued expenses   130,353     168,940
Operating lease liability   360,935     372,907
Dividends payable       1,058,194
Total liabilities   26,992,706     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; 9,882,058 issued; 9,619,945 outstanding   9,882     9,882
Additional paid-in capital   33,160,362     33,157,096
Treasury stock, at cost – 262,113 shares   (798,939)     (798,939)
Retained earnings (accumulated deficit)   702,020     (403,849)
Total stockholders’ equity   33,073,325     31,964,190
Total liabilities and stockholders’ equity $ 60,066,031   $ 59,843,415

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY

  Three Months
Ended March 31,
    2021   2020
     
Interest income from loans $ 1,442,814 $ 1,473,544
Origination fees   286,473   237,442
Total revenue   1,729,287   1,710,986
Operating costs and expenses:    
Interest and amortization of deferred financing costs   317,186   352,442
Referral fees   1,751   542
General and administrative expenses   308,981   344,780
Total operating costs and expenses   627,918   697,764
     
Income from operations   1,101,369   1,013,222
Other income   4,500   3,000
Net income $ 1,105,869 $ 1,016,222
     
Basic and diluted net income per common share outstanding:    
–Basic $ 0.12 $ 0.11
–Diluted $ 0.12 $ 0.11
     
Weighted average number of common shares outstanding:    
–Basic   9,619,945   9,652,539
–Diluted   9,619,945   9,652,753

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

FOR THE THREE MONTHS ENDED MARCH 31, 2021

  Common Stock 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     3,266       3,266
Net income           1,105,869 1,105,869
Balance, March 31, 2021 9,882,058 $9,882 $33,160,362 262,113 $(798,939) $702,020 $33,073,325

FOR THE THREE MONTHS ENDED MARCH 31, 2020

  Common Stock 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     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

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

  Three Months
Ended March 31,
    2021     2020
Cash flows from operating activities:      
Net income $ 1,105,869   $ 1,016,222
Adjustments to reconcile net income to net cash provided by operating activities –      
Amortization of deferred financing costs   24,263     24,375
Adjustment to operating lease right-of-use asset and liability   1,192     (261)
Depreciation   587     283
Non-cash compensation expense   3,266     3,266
Changes in operating assets and liabilities:      
Interest receivable on loans   (87,896)     (40,922)
Other assets   (14,998)     (19,683)
Accounts payable and accrued expenses   (38,587)     13,463
Deferred origination fees   71,289     132,369
Net cash provided by operating activities   1,064,985     1,129,112
       
Cash flows from investing activities:      
Issuance of short term loans   (9,659,678)     (16,082,435)
Collections received from loans   9,267,410     12,753,380
Release of loan holdback relating to mortgage receivable       (15,000)
Purchase of fixed assets       (923)
Net cash used in investing activities   (392,268)     (3,344,978)
       
Cash flows from financing activities:      
Proceeds from line of credit, net   132,174     3,627,220
Dividend paid   (1,058,194)     (1,159,061)
Purchase of treasury shares       (131,036)
Deferred financing costs incurred       (27,102)
Net cash (used in) provided by financing activities   (926,020)     2,310,021
       
Net (decrease) increase in cash   (253,303)     94,155
Cash and restricted cash, beginning of year   459,137     118,407
Cash and restricted cash, end of period $ 205,834   $ 212,562
Supplemental Cash Flow Information:      
Interest paid during the period $ 302,160   $ 328,871
Operating leases paid during the period $ 15,849   $ 13,604
       

SOURCE: Manhattan Bridge Capital, Inc.


        

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