Home Family Lifestyle Manhattan Bridge Capital, Inc. Reports Second Quarter 2021 Results - Hub News...

Manhattan Bridge Capital, Inc. Reports Second Quarter 2021 Results – Hub News Report



GREAT NECK, N.Y., July 23, 2021 (GLOBE NEWSWIRE) — Manhattan Bridge Capital, Inc. (Nasdaq: LOAN ) announced today that its total revenues for the three months ended June 30, 2021 were approximately $1,713,000 compared to approximately $1,741,000 for the three months ended June 30, 2020, a decrease of $28,000, or 1.6%. The decrease in revenues was primarily attributable to lower interest rates charged on loans due to market conditions and intense competition from other lenders. For the three months ended June 30, 2021 and 2020, approximately $1,424,000 and $1,490,000, respectively, of our revenues were attributable to interest income on secured commercial loans that we offer to real estate investors, and approximately $290,000 and $251,000, respectively, of our 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, 2021 was approximately $1,058,000, or $0.11 per basic and diluted share (based on approximately 9.62 million weighted-average outstanding common shares), as compared to approximately $1,097,000, or $0.11 per basic and diluted share (based on approximately 9.63 million weighted-average outstanding common shares), for the three months ended June 30, 2020. The decrease is primarily attributable to the decrease in interest income resulting from the lower interest rates charged on loans.

Total revenues for the six months ended June 30, 2021 were approximately $3,443,000 compared to approximately $3,452,000 for the six months ended June 30, 2020, a decrease of $9,000. The decrease in revenues was primarily attributable to lower interest rates charged on loans due to market conditions and intense competition from other lenders, offset by an increase in origination fees. For the six months ended June 30, 2021 and 2020, revenues of approximately $2,867,000 and $2,964,000, respectively, were attributable to interest income on secured commercial loans that we offer to real estate investors, and approximately $576,000 and $488,000, respectively, were attributable to origination fees on such loans.

Net income for the six months ended June 30, 2021 was approximately $2,164,000, or $0.22 per basic and diluted share (based on approximately 9.62 million weighted-average outstanding common shares), as compared to approximately $2,113,000, or $0.22 per basic and diluted share (based on approximately 9.64 million weighted-average outstanding common shares), for the six months ended June 30, 2020. This increase is primarily attributable to the decrease in interest expense.

As of June 30, 2021, total stockholders’ equity was approximately $33,077,000.

As previously announced, on July 9, 2021, we completed an underwritten public offering of 1,875,000 of our common shares at a public offering price of $7.20 per share. The gross proceeds raised by us in the offering were $13,500,000 before deducting underwriting discounts and commissions and other estimated offering expenses. The total net proceeds from the offering of approximately $12,354,000 were used to reduce the outstanding balance of our existing credit line. We granted the underwriters a 30-day option to purchase up to an additional 281,250 of our common shares to cover over-allotments, if any.

Assaf Ran, Chairman of the Board and CEO, stated, “I believe that the recent follow-on stock offering was beneficial to the Company. The transaction will give us the opportunity to support our growth as the economy recovers, and it will increase our book value. In addition, once again, we demonstrated an offering at a price higher than the price of our previous offering. Revenue and earnings of the second quarter were affected by lower interest rates and a large amount of paid-off loans. Nevertheless, I’m pleased to present another quarter of no defaults.”

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.

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 discuss our belief that our stock offering will support our growth as the economy recovers and that it will increase our book value, 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) our loan origination activities, revenues and profits are limited by available funds; (ii) we operate in a highly competitive market and competition may limit our ability to originate loans with favorable interest rates; (iii) our Chief Executive Officer is critical to our business and our future success may depend on our ability to retain him; (iv) if we overestimate the yields on our loans or incorrectly value the collateral securing the loan, we may experience losses; (v) we may be subject to “lender liability” claims; (vi) our due diligence may not uncover all of a borrower’s liabilities or other risks to its business; (vii) borrower concentration could lead to significant losses; (viii) 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 and (ix) if the effect of the COVID-19 pandemic on our business is greater than anticipated. The risk factors contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 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 SUBSIDIARY
CONSOLIDATED BALANCE SHEETS































    June 30, 2021       December 31, 2020  
     (unaudited)       (audited)  
Assets              
Loans receivable   53,385,871       58,097,970  
Interest receivable on loans   915,738       827,236  
Cash     153,187       131,654  
Cash – restricted         327,483  
Other assets   140,932       66,566  
Operating lease right-of-use asset, net   343,566       369,699  
Deferred financing costs, net   15,056       22,807  
Total assets $ 54,954,350     $ 59,843,415  
       
Liabilities and Stockholders’ Equity      
Liabilities:          
Line of credit $ 15,397,115     $ 20,308,873  
Senior secured notes (net of deferred financing costs of $359,784 and $397,327, respectively)   5,640,216       5,602,673  
Deferred origination fees   357,753       367,638  
Accounts payable and accrued expenses   133,912       168,940  
Operating lease liability   348,835       372,907  
Dividends payable         1,058,194  
Total liabilities   21,877,831       27,879,225  

Commitments and contingencies

     
Stockholders’ equity:      
Preferred stock – $.01 par value; 5,000,000 shares authorized; none issued          
Common stock – $.001 par value; 25,000,000 shares authorized; 9,882,058 issued; 9,619,945 outstanding   9,882       9,882  
Additional paid-in capital   33,163,628       33,157,096  
Treasury stock, at cost – 262,113 shares   (798,939 )     (798,939 )
Retained earnings (accumulated deficit)   701,948       (403,849 )
Total stockholders’ equity   33,076,519       31,964,190  

Total liabilities and stockholders’ equity

$

54,954,350
   
$

59,843,415
 

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

























  Three Months
Ended June 30,
Six Months
Ended June 30,
  2021     2020     2021     2020  
Interest income from loans $ 1,423,759     $ 1,490,395     $ 2,866,573     $ 2,963,940  
Origination fees 289,670     250,791     576,143     488,233  
Total revenue 1,713,429     1,741,186     3,442,716     3,452,173  
                                     
Operating costs and expenses:                      
Interest and amortization of deferred financing costs

316,915

   

326,247

   

634,101

   

678,689

 
Referral fees 2,643     1,386     4,394     1,928  
General and administrative expenses 339,602     318,726     648,583     663,507  
Total operating costs and expenses 659,160     646,359     1,287,078     1,344,124  
Income from operations 1,054,269     1,094,827     2,155,638     2,108,049  
Other income 4,500     3,000     9,000     6,000  
Income before income tax expense 1,058,769     1,097,827     2,164,638     2,114,049  
Income tax expense (647 )   (645 )   (647 )   (645 )
Net income $ 1,058,122     $ 1,097,182     $ 2,163,991     $ 2,113,404  
                       
Basic and diluted net income per common share outstanding:                      
–Basic $                 0.11     $                 0.11     $                   0.22     $                   0.22  
–Diluted $                 0.11     $                 0.11     $                 0.22     $                 0.22  
                       
Weighted average number of common shares outstanding:                      
–Basic 9,619,945     9,628,405     9,619,945     9,640,146  
–Diluted 9,619,945     9,628,405     9,619,945     9,640,146  

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

FOR THE THREE MONTHS ENDED JUNE 30, 2021








  Common Shares Additional Paid in Capital Treasury Stock Retained Earnings Totals
  Shares Amount   Shares Cost    
Balance, April 1, 2021 9,882,058 $ 9,882 $ 33,160,362 262,113 $ (798,939 ) $ 702,020   $ 33,073,325  
Non – cash compensation       3,266         3,266  
Dividends paid             (1,058,194 )   (1,058,194 )
Net income             1,058,122     1,058,122  
Balance, June 30, 2021 9,882,058 $ 9,882 $ 33,163,628 262,113 $ (798,939 ) $ 701,948   $ 33,076,519  

FOR THE THREE MONTHS ENDED JUNE 30, 2020









  Common Shares Additional Paid in Capital Treasury Stock Retained Earnings Totals
  Shares Amount   Shares Cost    
Balance, April 1, 2020 9,882,058 $ 9,882 $ 33,147,298 249,823 $ (750,724 ) $ 425,414   $ 32,831,870  
Purchase of treasury shares       5,390   (20,835 )     (20,835 )
Non – cash compensation       3,266         3,266  
Dividends paid             (1,059,546 )   (1,059,546 )
Net income             1,097,182     1,097,182  
Balance, June 30, 2020 9,882,058 $ 9,882 $ 33,150,564 255,213 $ (771,559 ) $ 463,050   $ 32,851,937  

FOR THE SIX MONTHS ENDED JUNE 30, 2021








  Common Shares Additional Paid in Capital Treasury Stock Accumulated Deficit (Retained Earnings) Totals
  Shares Amount   Shares Cost    
Balance, January 1, 2021 9,882,058 $ 9,882 $ 33,157,096 262,113 $ (798,939 ) $ (403,849 ) $ 31,964,190  
Non – cash compensation       6,532         6,532  
Dividends paid             (1,058,194 )   (1,058,194 )
Net income             2,163,991     2,163,991  
Balance, June 30, 2021 9,882,058 $ 9,882 $ 33,163,628 262,113 $ (798,939 ) $ 701,948   $ 33,076,519  

FOR THE SIX MONTHS ENDED JUNE 30, 2020









  Common Shares Additional Paid in Capital Treasury Stock Accumulated Deficit
(Retained Earnings)
Totals
  Shares Amount   Shares Cost    
Balance, January 1, 2020 9,882,058 $ 9,882 $ 33,144,032 223,214 $ (619,688 ) $ (590,808 ) $ 31,943,418  
Non – cash compensation       6,532         6,532  
Purchase of treasury shares       31,999   (151,871 )     (151,871 )
Dividends paid             (1,059,546 )   (1,059,546 )
Net income             2,113,404     2,113,404  
Balance, June 30, 2020 9,882,058 $ 9,882 $ 33,150,564 255,213 $ (771,559 ) $ 463,050   $ 32,851,937  

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














































    Six Months
Ended June 30,
      2021       2020  
Cash flows from operating activities:        
  Net income   $ 2,163,991     $ 2,113,404  
  Adjustments to reconcile net income to net cash provided by                
     operating activities –            
Amortization of deferred financing costs     45,294       50,256  
  Adjustment to operating lease right-of-use asset and liability     2,060       -200  
  Depreciation     1,153       548  
  Non-cash compensation expense     6,532       6,532  
  Changes in operating assets and liabilities:        
       Interest receivable on loans     (88,502 )     (124,303 )
       Other assets     (56,768 )     (65,316 )
       Accounts payable and accrued expenses     (35,028 )     (32,015 )
       Deferred origination fees     (9,885 )     39,513  
              Net cash provided by operating activities     2,028,847       1,988,419  
         
Cash flows from investing activities:        
   Issuance of short term loans     (15,567,677 )     (21,798,160 )
   Collections received from loans     20,279,776       19,455,628  
   Release of loan holdback relating to mortgage receivable           (15,000 )
   Purchase of fixed assets           (923 )
             Net cash provided by (used in) investing activities     4,712,099       (2,358,455 )
         
Cash flows from financing activities:        
    (Repayment of) proceeds from line of credit, net     (4,911,758 )     2,843,235  
    Dividends paid     (2,116,388 )     (2,218,607 )
    Pre-offering costs incurred     (18,750 )      
    Purchase of treasury shares           (151,871 )
    Deferred financing costs incurred           (27,102 )
              Net cash (used in) provided by financing activities     (7,046,896 )     445,655  
         
Net (decrease) increase in cash     (305,950 )     75,619  
Cash and restricted cash, beginning of year     459,137       118,407  
Cash and restricted cash, end of period   $ 153,187     $ 194,026  
         
Supplemental Cash Flow Information:        
Taxes paid during the period   $ 647     $ 645  
Interest paid during the period   $ 603,869     $ 650,130  
Operating leases paid during the period   $ 31,719     $ 27,227  
         
Supplemental Information – Noncash Information:        
Interest receivable converted to loans receivable in connection with forbearance agreements   $     $ 29,671  
         

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



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