GREAT NECK, N.Y., Oct. 19, 2017 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (NASDAQ:LOAN) announced today that total revenue for the three month period ended September 30, 2017 was approximately $1,591,000 compared to approximately $1,169,000 for the three month period ended September 30, 2016, an increase of $422,000, or 36.1%. The increase in revenue represents an increase in lending operations. For the three month periods ended September 30, 2017 and 2016, approximately $1,352,000 and $960,000, respectively, of our revenues were attributable to interest income on the secured commercial loans that we offer to small businesses, and approximately $240,000 and $209,000, respectively, of the Company’s revenues were attributable to origination fees on such loans.
Net income for the three month period ended September 30, 2017 was approximately $961,000 or $0.12 per basic and diluted share (based on approximately 8.1 million weighted-average outstanding common shares), versus net income of approximately $725,000 or $0.10 per basic and diluted share (based on approximately 7.6 million weighted-average outstanding common shares) for the three month period ended September 30, 2016, an increase of $236,000, or 32.6%. This increase in net income was mainly due to an increase in operating income as a result of increased lending activity.
Total revenue for the nine month period ended September 30, 2017 was approximately $4,322,000 compared to approximately $3,440,000 for the nine month period ended September 30, 2016, an increase of $882,000, or 25.6%. The increase in revenue represents an increase in lending operations. For the nine month periods ended September 30, 2017 and 2016, revenues of approximately $3,647,000 and $2,849,000, respectively, were attributable to interest income on the secured commercial loans that we offer to small businesses, and approximately $675,000 and $591,000, respectively, were attributable to origination fees on such loans.
Net income for the nine month period ended September 30, 2017 was approximately $2,592,000 or $0.32 per basic and diluted share (based on approximately 8.1 million weighted-average outstanding common shares), versus net income of approximately $2,130,000 or $0.29 per basic and diluted share (based on approximately 7.4 million weighted-average outstanding common shares) for the same period in 2016, an increase of $462,000, or 21.7%. This increase in net income was mainly due to an increase in operating income as a result of increased lending activity.
As of September 30, 2017, total shareholders' equity was approximately $23,120,000 compared to approximately $22,314,000 as of December 31, 2016, an increase of $806,000.
On August 8, 2017, the Company amended and restated certain terms of its existing credit line agreement with Webster Business Credit Corporation and Flushing Bank to further increase the credit line from $15 million to $20 million.
Assaf Ran, Chairman of the Board and CEO stated, “The numbers speak for themselves; we believe that we offer our shareholders not only generous quarterly dividends but also steady and responsible growth. The increase of the bank line of credit from $14 million to $20 million during the third quarter, provided the necessary funds for this quarter’s performance.”
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. We operate the web site: http://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 state that we offer generous dividends and sturdy growth 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) we have limited operating history as a Real Estate Investment Trust (“REIT”); (ii) our loan origination activities, revenues and profits are limited by available funds; (iii) we operate in a highly competitive market and competition may limit our ability to originate loans with favorable interest rates; (iv) our chief executive officer is critical to our business and our future success may depend on our ability to retain him; (v) if we overestimate the yields on our loans or incorrectly value the collateral securing the loan, we may experience losses; (vi) we may be subject to “lender liability” claims; (vii) our loan portfolio is illiquid; (viii) our due diligence may not uncover all of a borrower’s liabilities or other risks to its business; (ix) borrower concentration could lead to significant losses; (x) our management has limited experience managing a REIT; and (xi) 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. The risk factors contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016 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 SUBSIDIARIES CONSOLIDATED BALANCE SHEETS | |||||||
| September 30, 2017 (unaudited) | December 31, 2016 (audited) | ||||||
| Assets | |||||||
| Loans receivable | $ | 44,419,950 | $ | 34,755,320 | |||
| Interest receivable on loans | 508,342 | 346,519 | |||||
| Cash and cash equivalents | 112,184 | 96,299 | |||||
| Deferred financing costs | 60,250 | 56,193 | |||||
| Investment in privately held company | 15,000 | 35,000 | |||||
| Other assets | 58,384 | 44,193 | |||||
| Total assets | $ | 45,174,110 | $ | 35,333,524 | |||
| Liabilities and Stockholders’ Equity | |||||||
| Liabilities: | |||||||
| Line of credit | $ | 16,174,495 | $ | 6,482,848 | |||
| Senior secured notes (net of deferred financing costs of $641,355 and $697,669, respectively) | 5,358,645 | 5,302,331 | |||||
| Deferred origination fees | 390,743 | 315,411 | |||||
| Accounts payable and accrued expenses | 130,270 | 105,541 | |||||
| Dividends payable | --- | 813,503 | |||||
| Total liabilities | 22,054,153 | 13,019,634 | |||||
| Commitments and contingencies | |||||||
| Stockholders’ equity: | |||||||
| Preferred shares - $.01 par value; 5,000,000 authorized; none issued | --- | --- | |||||
| Common shares - $.001 par value; 25,000,000 authorized; 8,319,036 and 8,312,036 issued; 8,108,934 and 8,135,036 outstanding, respectively | 8,319 | 8,312 | |||||
| Additional paid-in capital | 23,164,245 | 23,134,013 | |||||
| Treasury stock, at cost – 210,102 and 177,000 shares, respectively | (541,491 | ) | (369,335 | ) | |||
| Retained earnings (Accumulated deficit) | 488,884 | (459,100 | ) | ||||
| Total stockholders’ equity | 23,119,957 | 22,313,890 | |||||
| Total liabilities and stockholders’ equity | $ | 45,174,110 | $ | 35,333,524 | |||
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | |||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
| 2017 | 2016 | 2017 | 2016 | ||||||||
| Interest income from loans | $ | 1,351,788 | $ | 960,274 | $ | 3,646,535 | $ | 2,848,516 | |||
| Origination fees | 239,675 | 208,951 | 675,434 | 591,191 | |||||||
| Total revenue | 1,591,463 | 1,169,225 | 4,321,969 | 3,439,707 | |||||||
| Operating costs and expenses: | |||||||||||
| Interest and amortization of debt service costs | 352,359 | 205,449 | 861,591 | 593,749 | |||||||
| Referral fees | 750 | 2,263 | 2,951 | 5,525 | |||||||
| General and administrative expenses | 266,534 | 236,972 | 842,520 | 698,356 | |||||||
| Total operating costs and expenses | 619,643 | 444,684 | 1,707,062 | 1,297,630 | |||||||
| Income from operations | 971,820 | 724,541 | 2,614,907 | 2,142,077 | |||||||
| Loss on write-down of investment in privately held company | (10,000 | ) | --- | (20,000 | ) | (10,000 | ) | ||||
| Income before income tax expense | 961,820 | 724,541 | 2,594,907 | 2,132,077 | |||||||
| Income tax expense | (1,099 | ) | --- | (2,971 | ) | (2,146 | ) | ||||
| Net income | $ | 960,721 | $ | 724,541 | $ | 2,591,936 | $ | 2,129,931 | |||
| Basic and diluted net income per common share outstanding: | |||||||||||
| --Basic | $ | 0.12 | $ | 0.10 | $ | 0.32 | $ | 0.29 | |||
| --Diluted | $ | 0.12 | $ | 0.10 | $ | 0.32 | $ | 0.29 | |||
| Weighted average number of common shares outstanding | |||||||||||
| --Basic | 8,106,499 | 7,598,626 | 8,120,091 | 7,407,787 | |||||||
| --Diluted | 8,117,151 | 7,623,635 | 8,131,400 | 7,426,165 | |||||||
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) | ||||||||
| Nine Months Ended September 30, | ||||||||
| 2017 | 2016 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 2,591,936 | $ | 2,129,931 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities - | ||||||||
| Amortization of deferred financing costs | 95,378 | 51,474 | ||||||
| Depreciation | 3,398 | 2,752 | ||||||
| Non cash compensation expense | 9,798 | 10,192 | ||||||
| Loss on write-down of investment in privately held company | 20,000 | 10,000 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Interest receivable on loans | (161,823 | ) | 78,234 | |||||
| Other assets | (15,922 | ) | (16,809 | ) | ||||
| Accounts payable and accrued expenses | 24,730 | (27,702 | ) | |||||
| Deferred origination fees | 75,332 | 64,879 | ||||||
| Net cash provided by operating activities | 2,642,827 | 2,302,951 | ||||||
| Cash flows from investing activities: | ||||||||
| Issuance of short term loans | (30,314,500 | ) | (24,299,500 | ) | ||||
| Collections received from loans | 20,649,870 | 23,671,720 | ||||||
| Purchase of fixed assets | (1,666 | ) | (3,019 | ) | ||||
| Net cash used in investing activities | (9,666,296 | ) | (630,799 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from (repayments of) line of credit, net | 9,691,647 | (7,558,044 | ) | |||||
| Repayments of short-term loans, net | --- | (1,095,620 | ) | |||||
| Cash restricted for reduction of line of credit | --- | (919,352 | ) | |||||
| Proceeds from public offerings, net | --- | 9,539,347 | ||||||
| Deferred financing costs | (43,122 | ) | --- | |||||
| Proceeds from exercise of stock options and warrants | 20,440 | 305,004 | ||||||
| Purchase of treasury shares | (172,156 | ) | --- | |||||
| Dividends paid | (2,457,455 | ) | (1,891,804 | ) | ||||
| Net cash provided by (used in) financing activities | 7,039,354 | (1,620,469 | ) | |||||
| Net increase in cash and cash equivalents | 15,885 | 51,683 | ||||||
| Cash and cash equivalents, beginning of period | 96,299 | 106,836 | ||||||
| Cash and cash equivalents, end of period | $ | 112,184 | $ | 158,519 | ||||
| Supplemental cash flow information: | ||||||||
| Taxes paid during the period | $ | 2,971 | $ | 1,948 | ||||
| Interest paid during the period | $ | 713,428 | $ | 546,015 | ||||