• Manhattan Bridge Capital, Inc. Reports Second Quarter 2023 Results

    Source: Nasdaq GlobeNewswire / 20 Jul 2023 15:35:00   America/Chicago

    GREAT NECK, N.Y., July 20, 2023 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) (the “Company”) announced today that its total revenues for the three months ended June 30, 2023 were approximately $2,399,000 compared to approximately $2,117,000 for the three months ended June 30, 2022, an increase of $282,000, or 13.3%. The increase in revenues was due to higher interest rates charged on the Company’s commercial loans. For the three months ended June 30, 2023 and 2022, approximately $1,943,000 and $1,612,000, respectively, of the Company’s revenues were attributable to interest income on secured commercial loans that the Company offers to real estate investors, and approximately $457,000 and $504,000, respectively, of its 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, 2023 was approximately $1,422,000, or $0.12 per basic and diluted share (based on approximately 11.48 million weighted-average outstanding common shares), as compared to approximately $1,356,000, or $0.12 per basic and diluted share (based on approximately 11.49 million weighted-average outstanding common shares), for the three months ended June 30, 2022, an increase of $66,000, or 4.9%. This increase is primarily attributable to the increase in interest income, partially offset by an increase in interest expense.

    Total revenues for the six months ended June 30, 2023 were approximately $4,797,000 compared to approximately $4,232,000 for the six months ended June 30, 2022, an increase of $565,000, or 13.4%. The increase in revenue was due to higher interest rates charged on the Company’s commercial loans. For the six months ended June 30, 2023 and 2022, revenues of approximately $3,896,000 and $3,256,000, respectively, were attributable to interest income on secured commercial loans that the Company offers to real estate investors, and approximately $901,000 and $976,000, respectively, 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 six months ended June 30, 2023 was approximately $2,681,000, or $0.23 per basic and diluted share (based on approximately 11.49 million weighted-average outstanding common shares), as compared to approximately $2,781,000, or $0.24 per basic and diluted share (based on approximately 11.49 million weighted-average outstanding common shares), for the six months ended June 30, 2022, a decrease of $100,000, or 3.6%. This decrease is primarily attributable to the increase in interest expense and a special bonus to officers in 2023, partially offset by an increase in interest income.

    As of June 30, 2023, total stockholders' equity was approximately $42,804,000.

    On April 11, 2023, the Company’s Board of Directors authorized a share buy back program, pursuant to which the Company 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 may be terminated, increased or decreased by the Company’s Board of Directors in its discretion at any time. As of June 30, 2023, the Company has purchased an aggregate of 33,360 common shares under this repurchase program, at an aggregate cost of approximately $165,000.

    Assaf Ran, Chairman of the Board and Chief Executive Officer of the Company, stated, “During the second quarter, we benefited from the impact of implementing increased interest rates on the vast majority of our loan portfolio. Finally, the balance between paying a higher interest to our bank and charging a higher interest to our borrowers is working in our favor, due to the fact that our debt to equity ratio is extraordinarily low.”

    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
    June 30, 2023
    (unaudited)
     December 31, 2022
    (audited)
    Loans receivable$69,811,335 $74,483,463
    Interest receivable on loans 1,274,288  1,363,502
    Cash
     248,874  103,540
    Other assets 134,819  59,566
    Operating lease right-of-use asset, net 234,793  262,222
    Deferred financing costs, net 33,948  7,708
             Total assets$71,738,057 $76,280,001


    Liabilities and Stockholders’ Equity   
    Liabilities:   
    Line of credit$20,670,721  $24,994,234 
    Senior secured notes (net of deferred financing costs of $209,614 and $247,155, respectively) 5,790,386   5,752,845 
    Deferred origination fees 686,981   669,128 
    Accounts payable and accrued expenses 231,736   289,868 
    Operating lease liability 247,287   273,485 
    Loan holdback 17,500   --- 
    Dividends payable 1,289,428   1,436,868 
    Total liabilities 28,934,039   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; 11,461,585 and 11,494,945 outstanding, respectively 11,757   11,757 
    Additional paid-in capital 45,542,343   45,535,811 
    Treasury stock, at cost – 295,473 and 262,113 shares, respectively (963,745)  (798,939)
    Accumulated deficit (1,786,337)  (1,885,056)
    Total stockholders’ equity 42,804,018   42,863,573 

    Total liabilities and stockholders’ equity
    $71,738,057  $76,280,001 



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

     Three Months
    Ended June 30,
    Six Months
    Ended June 30,
      2023  2022  2023  2022 


    Interest income from loans


    $


    1,942,527
     

    $


    1,612,308
     

    $


    3,896,349
     

    $


    3,256,097
     
    Origination fees 456,835  504,455  900,806  975,726 
    Total revenue 2,399,362  2,116,763  4,797,155  4,231,823 
                       
    Operating costs and expenses:    
    Interest and amortization of deferred financing costs 

    595,427
      

    376,383
      

    1,241,690
      

    708,236
     
    Referral fees 1,000  1,958  1,292  3,320 
    General and administrative expenses 400,979  386,238  897,075  747,726 
    Total operating costs and expenses 997,406  764,579  2,140,057  1,459,282 
    Income from operations 1,401,956  1,352,184  2,657,098  2,772,541 
    Other income 20,380  4,500  24,880  9,000 
    Income before income tax expense 1,422,336  1,356,684  2,681,978  2,781,541 
    Income tax expense (650) (650) (650) (650)
    Net income$1,421,686 $1,356,034 $2,681,328 $2,780,891 
         
    Basic and diluted net income per common
    share outstanding:
        
    --Basic$                0.12 $                0.12 $                  0.23 $                  0.24 
    --Diluted$                0.12 $                0.12 $                0.23 $                0.24 
         
    Weighted average number of common shares outstanding:    
    --Basic 11,475,406  11,494,945  11,485,116  11,494,945 
    --Diluted 11,475,406  11,494,945  11,485,116  11,494,945 



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

    FOR THE THREE MONTHS ENDED JUNE 30, 2023

     Common SharesAdditional Paid
    in Capital
    Treasury StockAccumulated DeficitTotals
     SharesAmount SharesCost  
    Balance, April 1, 202311,757,058$11,757$45,539,077262,113$(798,939)$(1,918,595)$42,833,300 
    Purchase of treasury shares   33,360 (164,806)  (164,806)
    Non - cash compensation   3,266    3,266 
    Dividends declared and payable      (1,289,428) (1,289,428)
    Net income                                                                                           1,421,686  1,421,686 
    Balance, June 30, 202311,757,058$11,757$45,542,343295,473$(963,745)$(1,786,337)$42,804,018 


    FOR THE THREE MONTHS ENDED JUNE 30, 2022

     Common SharesAdditional Paid
    in Capital
    Treasury StockAccumulated DeficitTotals
     SharesAmount SharesCost  
    Balance, April 1, 202211,757,058$11,757$45,526,012262,113$(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, 202211,757,058$11,757$45,529,278262,113$(798,939)$(1,442,167)$43,299,929 


    FOR THE SIX MONTHS ENDED JUNE 30, 2023

     Common SharesAdditional Paid in CapitalTreasury StockAccumulated DeficitTotals
     SharesAmount SharesCost  
    Balance, January 1, 202311,757,058$11,757$45,535,811262,113$(798,939)$ (1,885,056)$ 42,863,573 
    Purchase of treasury shares   33,360 (164,806)  (164,806)
    Non - cash compensation   6,532    6,532 
    Dividends paid      (1,293,181) (1,293,181)
    Dividends declared and payable      (1,289,428) (1,289,428)
    Net income                                                                                           2,681,328   2,681,328  
    Balance, June 30, 202311,757,058$11,757$45,542,343295,473$(963,745)$(1,786,337)$42,804,018 


    FOR THE SIX MONTHS ENDED JUNE 30, 2022

     Common SharesAdditional Paid
    in Capital
    Treasury StockAccumulated DeficitTotals
     SharesAmount SharesCost  
    Balance, January 1, 202211,757,058$11,757$45,522,746262,113$(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, 202211,757,058$11,757$45,529,278262,113$(798,939)$(1,442,167)$43,299,929 



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

      Six Months
    Ended June 30,
       2023  2022
    Cash flows from operating activities:    
    Net income $ 2,681,328 $ 2,780,891
    Adjustments to reconcile net income to net cash provided by operating activities -    
    Amortization of deferred financing costs 49,494 53,999
    Adjustment to operating lease right-of-use asset and liability 1,230 2,316
    Depreciation 1,946 972
    Non-cash compensation expense 6,532 6,532
    Changes in operating assets and liabilities:    
    Interest receivable on loans 89,214 (96,889)
    Other assets (72,115) (63,871)
    Accounts payable and accrued expenses (58,132) 31,151
    Deferred origination fees 17,853 132,166
    Net cash provided by operating activities 2,717,350 2,847,267
         
    Cash flows from investing activities:    
    Issuance of short term loans (28,122,249) (37,953,007)
    Collections received from loans 32,811,877 34,364,708
    Purchase of fixed assets (5,085) (1,893)
    Net cash provided by (used in) investing activities 4,684,543 (3,590,192)
         
    Cash flows from financing activities:    
    (Repayment of) proceeds from line of credit, net (4,323,513) 3,627,556
    Dividends paid (2,730,049) (2,873,736)
    Purchase of treasury shares (164,806) ---
    Deferred financing costs incurred (38,191) (35,819)
    Net cash (used in) provided by financing activities (7,256,559) 718,001
         
    Net increase (decrease) in cash 145,334 (24,924)
    Cash, beginning of year 103,540 142,546
    Cash, end of period $ 248,874 $ 117,622
         
    Supplemental Cash Flow Information:    
    Taxes paid during the period $ 650 $ 650
    Interest paid during the period $ 1,215,297 $ 608,902
    Operating leases paid during the period $ 31,863 $ 31,786
         
    Supplemental Information – Noncash Information:    
    Dividend declared and payable  $ 1,289,428  $ 1,436,868 
    Loan holdback relating to mortgage receivable  $ 17,500  $ --- 



    Contact:
    Assaf Ran, CEO
    Vanessa Kao, CFO
    (516) 444-3400
    SOURCE: Manhattan Bridge Capital, Inc.

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