Manhattan Bridge Capital, Inc. Reports First Quarter 2023 Results

GREAT NECK, N.Y., April 19, 2023 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that its net income for the three months ended March 31, 2023 was approximately $1,260,000, or $0.11 per share (based on approximately 11.5 million weighted-average outstanding common shares), compared to approximately $1,425,000 or $0.12 per share (based on approximately 11.5 million weighted-average outstanding common shares) for the three months ended March 31, 2022, a decrease of $165,000, or 11.6%. This decrease is primarily attributable to a significant increase in interest expense due to higher LIBOR/SOFR rates relating to the use of the Company’s credit line in order to support its ability to increase loan originations and a special bonus to officers in 2023, partially offset by the increase in interest income.

Total revenues for the three months ended March 31, 2023 were approximately $2,398,000 compared to approximately $2,115,000 for the three months ended March 31, 2022, an increase of $283,000, or 13.4%. The increase in revenue was due to an increase in lending operations and higher interest rates charged on the Company’s commercial loans. For the three months ended March 31, 2023, approximately $1,954,000 of the Company’s revenue represents interest income on secured commercial loans that we offer to real estate investors, compared to approximately $1,644,000 for the same period in 2022, and approximately $444,000 and $471,000, respectively, represent 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.

As of March 31, 2023, total shareholders’ equity was approximately $42,833,000.

On April 11, 2023, the Company’s Board of Directors authorized a share buy back program, pursuant to which it 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 is able to be terminated, increased or decreased by the Company’s Board of Directors in its discretion at any time.

Assaf Ran, Chairman of the Board and Chief Executive Officer of the Company, stated, “The high interest environment contributed to our revenue increase. However, our interest expense almost doubled versus the same quarter a year ago. Generally, we have experienced slower and riskier real estate markets in our geographic areas of operation, together with tight liquidity and less competition. Yet, due to the strength of our loan portfolio, we suffered no losses and impairment expenses.”

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

AssetsMarch 31, 2023
(unaudited)
 December 31, 2022
(audited)
Loans receivable$71,950,185 $74,483,463
Interest receivable on loans 1,259,047  1,363,502
Cash
 75,192  103,540
Other assets 98,948  59,566
Operating lease right-of-use asset, net 248,508  262,222
Deferred financing costs, net 37,130  7,708
Total assets$73,669,010 $76,280,001


Liabilities and Stockholders’ Equity   
Liabilities:   
Line of credit$22,580,277  $24,994,234 
Senior secured notes (net of deferred financing costs of $228,384 and $247,155, respectively) 5,771,616   5,752,845 
Deferred origination fees 650,856   669,128 
Accounts payable and accrued expenses 261,825   289,868 
Operating lease liability 260,455   273,485 
Loan holdback 17,500    
Dividends payable 1,293,181   1,436,868 
Total liabilities 30,835,710   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; 11,494,945 outstanding 11,757   11,757 
Additional paid-in capital 45,539,077   45,535,811 
Treasury stock, at cost - 262,113 shares (798,939)  (798,939)
Accumulated deficit (1,918,595)  (1,885,056)
Total stockholders’ equity 42,833,300   42,863,573 
Total liabilities and stockholders’ equity$73,669,010  $76,280,001 
        


MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY

 Three Months
Ended March 31,
 20232022
   
Interest income from loans$1,953,821$1,643,789
Origination fees 443,971 471,271
Total revenue 2,397,792 2,115,060
   
Operating costs and expenses:  
Interest and amortization of deferred financing costs 646,263 331,853
Referral fees 291 1,361
General and administrative expenses 496,096 361,489
Total operating costs and expenses 1,142,650 694,703
   
Income from operations 1,255,142 1,420,357
Other income 4,500 4,500
Net income$1,259,642$1,424,857
   
Basic and diluted net income per common share outstanding:  
–Basic$0.11$0.12
–Diluted$0.11$0.12
   
Weighted average number of common shares outstanding:  
–Basic 11,494,945 11,494,945
–Diluted 11,494,945 11,494,945
     


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

FOR THE THREE MONTHS ENDED MARCH 31, 2023

 Common SharesAdditional
Paid-in
Capital
Treasury StockAccumulated
Deficit
Totals
      
 SharesAmount SharesCost  
Balance, January 1, 202311,757,058$11,757$45,535,811262,113$(798,939)$(1,885,056)$42,863,573 
Non-cash compensation  3,266   3,266 
Dividends declared and payable     (1,293,181)(1,293,181)
Net income___________    1,259,642 1,259,642 
Balance, March 31, 202311,757,058$11,757$45,539,077262,113$(798,939)$(1,918,595)$42,833,300 


FOR THE THREE MONTHS ENDED MARCH 31, 2022

 Common SharesAdditional
Paid-in

Capital
Treasury StockAccumulated
Deficit
Totals
      
 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  3,266   3,266 
Dividends declared and payable     (1,436,868)(1,436,868)
Net income___________    1,424,857 1,424,857 
Balance, March 31, 202211,757,058$11,757$45,526,012262,113$(798,939)$(1,361,333)$43,377,497 
           


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

  Three Months
Ended March 31,
    2023    2022 
Cash flows from operating activities:    
Net income $1,259,642  $1,424,857 
Adjustments to reconcile net income to net cash provided by operating activities -    
Amortization of deferred financing costs  27,540   24,015 
Adjustment to operating lease right-of-use asset and liability  685   1,224 
Depreciation  892   469 
Non-cash compensation expense  3,266   3,266 
Changes in operating assets and liabilities:    
Interest receivable on loans  104,455   (73,474)
Other assets  (35,189)  (27,280)
Accounts payable and accrued expenses  (28,043)  (5,958)
Deferred origination fees  (18,272)  107,772 
Net cash provided by operating activities  1,314,976   1,454,891 
     
Cash flows from investing activities:    
Issuance of short term loans  (13,734,803)  (18,295,339)
Collections received from loans  16,285,581   15,572,367 
Purchase of fixed assets  (5,085)   
Net cash provided by (used in) investing activities  2,545,693   (2,722,972)
     
Cash flows from financing activities:    
(Repayment of) proceeds from line of credit, net  (2,413,957)  2,743,588 
Dividend paid  (1,436,868)  (1,436,868)
Deferred financing costs incurred  (38,192)  (35,819)
Net cash (used in) provided by financing activities  (3,889,017)  1,270,901 
     
Net (decrease) increase in cash  (28,348)  2,820 
Cash, beginning of year  103,540   142,546 
Cash, end of period $75,192  $145,366 


Supplemental Cash Flow Information:   
Interest paid during the period$636,990 $277,757
Operating leases paid during the period$15,917 $15,881
    
Supplemental Information – Noncash Information:   
Dividend declared and payable$1,293,181 $1,436,868
Loan holdback relating to mortgage receivable$17,500 $
      

SOURCE: Manhattan Bridge Capital, Inc.


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

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