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Manhattan Bridge Capital Reports 49.8% Increase in First Quarter Revenues; 128% Increase in Net Income and 60% Increase in Earnings Per Share

LONG ISLAND, N.Y., May 4, 2015 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq:LOAN) announced today that total revenues for the three month period ended March 31, 2015 were approximately $912,000 compared to approximately $609,000 for the three month period ended March 31, 2014, an increase of $303,000 or 49.8%. The increase in revenue represents an increase in lending operations. In 2015, approximately $757,000 of our revenue represents interest income on secured, commercial loans that we offer to small businesses compared to approximately $507,000 for the same period in 2014, and approximately $155,000 represents origination fees on such loans compared to approximately $102,000 for the same period in 2014. The loans are principally secured by collateral consisting of real estate and, generally, accompanied by personal guarantees from the principals of the businesses.

Net income for the three month period ended March 31, 2015 was $0.08 per share or approximately $476,000, versus $0.05 per share or approximately $208,000 for the three month period ended March 31, 2014, an increase in earnings per share of 60% or in net income of 128%. The increase in net income was mainly due to an increase in operating income and no income tax expense for the three month period ended March 31, 2015. We believe that we satisfy all of the requirements to be taxed as a REIT and intend to elect REIT status when we file our 2014 tax return. As a REIT, we are required to distribute at least 90% of our taxable income to our shareholders and are entitled to claim deductions for such distributions thereby eliminating any corporate tax on such taxable income.

Income from operations for the three month period ended March 31, 2015 was approximately $476,000 compared to approximately $316,000 for the three month period ended March 31, 2014, an increase of $160,000 or 50.6%. This increase in income from operations is primarily attributable to an increase in revenue, offset by an increase in interest expense resulting from the additional short term loans received by the Company and the Company's use of lines of credit in order to increase its ability to make loans, and by a special bonus to officers for establishing a three-year $14 million revolving line of credit with Webster Business Credit Corporation.

Total stockholders' equity was approximately $13,866,000 as of March 31, 2015 and December 31, 2014.

Assaf Ran, Chairman of the Board and CEO stated, "The $14,000,000 three year line of credit from Webster Business Credit Corp. was definitely the most important transaction of the first quarter. This line will allow continued growth and hopefully further increase of the quarterly dividend. Other than that, we have demonstrated another quarter of good performances while avoiding problematic loans," added Mr. Ran.

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

This report contains forward-looking statements within the meaning of section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements are typically identified by the words "believe," "expect," "intend," "estimate" and similar expressions. Those statements appear in a number of places in this report and include statements regarding our intent, belief or current expectations or those of our directors or officers with respect to, among other things, trends affecting our financial condition and results of operations and our business and growth strategies. These 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 (such factors are referred to herein as "Cautionary Statements"), including but not limited to the following: (i) we may not qualify as a REIT; (ii) we have no operating history as a REIT; (iii) our loan origination activities, revenues and profits are limited by available funds; (iv) we operate in a highly competitive market and competition may limit our ability to originate loans with favorable interest rates; (v) our chief executive officer is critical to our business and our future success may depend on our ability to retain him; (vi) if we overestimate the yields on our loans or incorrectly value the collateral securing the loan, we may experience losses; (vii) we may be subject to "lender liability" claims; (viii) our loan portfolio is illiquid; (ix) our due diligence may not uncover all of a borrower's liabilities or other risks to its business; (x) borrower concentration could lead to significant losses; (xi) our management has no experience managing a REIT; and (xii) 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 accompanying information contained in this report, including the information set forth under "Management's Discussion and Analysis of Financial Condition and Results of Operations," identifies important factors that could cause such differences. These forward-looking statements speak only as of the date of this report, and we caution potential investors not to place undue reliance on such statements. We undertake no obligation to update or revise any forward-looking statements. All subsequent written or oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the Cautionary Statements.

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
March 31, 2015 December 31, 2014
Assets (unaudited) (audited)
Current assets:
Cash and cash equivalents $256,282 $47,676
Short term loans receivable 17,006,406 19,138,426
Interest receivable on loans 219,299 213,766
Other current assets 52,304 26,995
Total current assets 17,534,291 19,426,863
Long term loans receivable 6,754,550 4,894,050
Property and equipment, net 17,497 19,088
Other assets 12,500 ---
Security deposit 6,816 6,816
Investment in privately held company 65,000 65,000
Deferred financing costs 119,638 32,500
Total assets $24,510,292 $24,444,317
Liabilities and Stockholders' Equity
Current liabilities:
Short term loans $1,095,620 $2,469,465
Line of credit 9,316,046 7,700,000
Accounts payable and accrued expenses 66,061 163,622
Deferred origination fees 166,533 244,776
Total liabilities, all current 10,644,260 10,577,863
Commitments and contingencies
Stockholders' equity:
Preferred shares -- $.01 par value; 5,000,000 shares authorized; no shares issued --- ---
Common shares -- $.001 par value; 25,000,000 authorized; 6,266,089 and 6,260,689 issued; 6,089,089 and 6,083,689 outstanding 6,266 6,260
Additional paid-in capital 14,126,853 14,116,183
Treasury stock, at cost – 177,000 (369,335) (369,335)
Retained earnings 102,248 113,346
Total stockholders' equity 13,866,032 13,866,454
Total liabilities and stockholders' equity $24,510,292 $24,444,317
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months
Ended March 31,
2015 2014
Interest income from loans $756,750 $507,371
Origination fees 155,011 101,539
Total revenue 911,761 608,910
Operating costs and expenses:
Interest and amortization of debt service costs 183,055 116,423
Referral fees 1,197 109
General and administrative expenses 251,913 175,996
Total operating costs and expenses 436,165 292,528
Income from operations 475,596 316,382
Other income --- 6,887
Income before income tax expense 475,596 323,269
Income tax expense --- (115,000)
Net income $475,596 $208,269
Basic and diluted net income per common share outstanding:
--Basic $0.08 $0.05
--Diluted $0.08 $0.05
Weighted average number of common shares outstanding:
--Basic 6,087,531 4,256,190
--Diluted 6,129,016 4,286,673
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
Three Months
Ended March 31,
2015 2014
Cash flows from operating activities:
Net income $475,596 $208,269
Adjustments to reconcile net income to net cash provided by (used in) operating activities -
Amortization of deferred financing costs 3,418 ---
Depreciation 1,591 ---
Non cash compensation expense 3,416 3,416
Changes in operating assets and liabilities:
Interest receivable on loans (5,532) (16,865)
Other current and non current assets (25,309) (15,752)
Accounts payable and accrued expenses (97,560) (39,599)
Deferred origination fees (78,243) (8,504)
Income taxes payable --- (159,995)
Net cash provided by (used in) operating activities 277,377 (29,030)
Cash flows from investing activities:
Issuance of short term loans (2,807,000) (4,774,000)
Collections received from loans 3,078,520 3,893,000
Net cash provided by (used in) investing activities 271,520 (881,000)
Cash flows from financing activities:
Proceeds from (repayments of) lines of credit, net 1,616,046 (50,000)
Repayments of short-term loans, net (1,373,846) ---
Deferred financing costs (90,556) ---
Capital raising costs (12,500) (17,500)
Dividend paid (486,695) (42,562)
Proceeds from exercise of stock options and warrants 7,260 ---
Net cash used in financing activities (340,291) (110,062)
Net increase (decrease) in cash and cash equivalents 208,606 (1,020,092)
Cash and cash equivalents, beginning of period 47,676 1,021,023
Cash and cash equivalents, end of period $256,282 $931
Supplemental Cash Flow Information:
Taxes paid during the period $ --- $274,995
Interest paid during the period $179,637 $116,423

CONTACT: Assaf Ran, CEO Vanessa Kao, CFO (516) 444-3400

Source:Manhattan Bridge Capital, Inc.