×

Manhattan Bridge Capital Reports 46.0% Increase in Net Income

GREAT NECK, N.Y., May 02, 2016 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (NASDAQ:LOAN) announced today that net income for the three month period ended March 31, 2016 was approximately $695,000 or $0.10 per share, versus approximately $476,000 or $0.08 per share for the three month period ended March 31, 2015, an increase in net income of 46.0% or in earnings per share of 25%. This increase is primarily attributable to the increase in revenue and the decrease in operating expenses.

Total revenues for the three month period ended March 31, 2016 were approximately $1,105,000 compared to approximately $912,000 for the three month period ended March 31, 2015, an increase of $193,000 or 21.2%. The increase in revenue represents an increase in lending operations. In 2016, approximately $914,000 of our revenue represents interest income on secured, commercial loans that we offer to small businesses compared to approximately $757,000 for the same period in 2015, and approximately $190,000 represents origination fees on such loans compared to approximately $155,000 for the same period in 2015. The loans are principally secured by collateral consisting of real estate and, generally, accompanied by personal guarantees from the principals of the businesses.

As of March 31, 2016 total stockholders' equity was approximately $18,442,000 compared to approximately $17,743,000 as of December 31, 2015, an increase of $699,000.

On April 25, 2016, MBC Funding II Corp (“Funding”), our wholly owned subsidiary, completed an underwritten public offering of 6% senior notes due April 22, 2026. We guaranteed Funding’s obligations under the Notes, which is secured by our pledge of 100% of the outstanding common shares of Funding owned by us. The gross proceeds to Funding from this offering were approximately $6.0 million, and the net proceeds were approximately $5.3 million, after deducting the underwriting discounts and commissions and other offering expenses. Funding utilized the proceeds to purchase a pool of mortgage loans from us, which we in turn used to pay down the Webster Credit Line.

Assaf Ran, Chairman of the Board and CEO stated, “As we started 2016 we experienced an unusual number of loan pay-offs. We see that as a good indicator of the quality of our portfolio, but it also created a challenge to redeploy the proceeds in order to maintain our growth. We took the necessary steps in order to build a pipe line of qualified loans and as reflected in the financial results we successfully managed to face the challenge," 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 have limited operating history as a 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 no 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 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 SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

March 31, 2016

December 31, 2015
(unaudited) (audited)
Assets
Current assets:
Cash and cash equivalents$61,279 $106,836
Cash - restricted 464,889 ---
Short term loans receivable 19,417,500 20,199,000
Interest receivable on loans 364,808 382,572
Other current assets 48,928 32,865
Total current assets 20,357,404 20,721,273
Long term loans receivable 9,591,050 10,705,040
Property and equipment, net 8,947 8,771
Security deposit 6,816 6,816
Investment in privately held company 50,000 50,000
Deferred financing costs 315,581 164,510
Total assets
$30,329,798 $31,656,410
Liabilities and Stockholders’ Equity
Current liabilities:
Line of credit$10,650,498 $11,821,099
Short term loans 860,620 1,095,620
Accounts payable and accrued expenses 127,777 99,643
Deferred origination fees 249,258 279,682
Dividends payable --- 617,443
Total liabilities, all current 11,888,153 13,913,487
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; 7,441,039 issued; 7,264,039 outstanding 7,441 7,441
Additional paid-in capital 18,503,921 18,500,524
Treasury stock, at cost – 177,000 (369,335) (369,335)
Retained earnings (Accumulated deficit) 299,618 (395,707)
Total stockholders’ equity 18,441,645 17,742,923
Total liabilities and stockholders’ equity$30,329,798 $31,656,410


MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months
Ended March 31,
20162015
Interest income from loans$914,309 $756,750
Origination fees 190,281 155,011
Total revenue 1,104,590 911,761
Operating costs and expenses:
Interest and amortization of debt service costs 179,550 183,055
Referral fees 1,369 1,197
General and administrative expenses 227,839 251,913
Total operating costs and expenses 408,758 436,165
Income from operations before income tax expense 695,832 475,596
Income tax expense (508) ---
Net income$695,324 $475,596
Basic and diluted net income per common share outstanding:
--Basic$0.10 $0.08
--Diluted$0.10 $0.08
Weighted average number of common shares outstanding:
--Basic 7,264,039 6,087,531
--Diluted 7,292,372 6,129,016


MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
Three Months
Ended March 31,
2016
2015
Cash flows from operating activities:
Net income $695,324 $475,596
Adjustments to reconcile net income to net cash provided by operating activities -
Amortization of deferred financing costs 12,041 3,418
Depreciation 862 1,591
Non cash compensation expense 3,397 3,416
Changes in operating assets and liabilities:
Interest receivable on loans 17,764 (5,532)
Other current and non current assets (16,063) (25,309)
Accounts payable and accrued expenses 28,135 (97,560)
Deferred origination fees (30,424) (78,243)
Net cash provided by operating activities 711,036 277,377
Cash flows from investing activities:
Issuance of short term loans (5,913,500) (2,807,000)
Collections received from loans 7,808,990 3,078,520
Purchase of fixed assets (1,038) ---
Net cash provided by investing activities 1,894,452 271,520
Cash flows from financing activities:
(Repayment of) proceeds from lines of credit, net (1,405,601) 1,616,046
Cash restricted for reduction of line of credit (464,889) ---
Repayments of short-term loans, net --- (1,373,846)
Deferred financing costs (163,112) (90,556)
Dividend paid (617,443) (486,695)
Capital raising costs --- (12,500)
Proceeds from exercise of stock options and warrants --- 7,260
Net cash used in financing activities (2,651,045) (340,291)
Net (decrease) increase in cash and cash equivalents (45,557) 208,606
Cash and cash equivalents, beginning of period 106,836 47,676
Cash and cash equivalents, end of period $61,279 $256,282
Supplemental Cash Flow Information:
Taxes paid during the period $508 $---
Interest paid during the period $176,799 $179,637

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

Source:Manhattan Bridge Capital, Inc.