Manhattan Bridge Capital, Inc. Reports First Quarter 2022 Results
GREAT NECK, N.Y., April 14, 2022 (GLOBE NEWSWIRE) — Manhattan Bridge Capital, Inc. (NASDAQ: LOAN) announced today that net income for the three months ended March 31, 2022 was approximately $1,425,000, or $0.12 per basic and diluted share (based on approximately 11.5 million weighted-average outstanding common shares), versus approximately $1,106,000, or $0.12 per basic and diluted share (based on approximately 9.6 million weighted-average outstanding common shares) for the three months ended March 31, 2021, an increase of $319,000, or 28.8%. This increase is primarily attributable to an increase in revenue, partially offset by an increase in general and administrative expenses.
Total revenue for the three months ended March 31, 2022 was approximately $2,115,000 compared to approximately $1,729,000 for the three months ended March 31, 2021, an increase of $386,000, or 22.3%. The increase in revenue was due to an increase in lending operations. For the three months ended March 31, 2022, approximately $1,644,000 of the Company’s revenue represents interest income on secured commercial loans that it offers to small businesses, compared to approximately $1,443,000 for the same period in 2021, and approximately $471,000 and $286,000, 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, 2022, total shareholders’ equity was approximately $43,377,000.
Assaf Ran, Chairman of the Board and CEO, stated, “The first quarter financial results represent the impact of the additional funds we raised in the equity offering last summer. Despite the relatively lower interest rates that we are currently charging due to market conditions, our quarterly revenue and net earnings were near our all-time high.”
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
| March 31, 2022 (unaudited) | December 31, 2021 (audited) | ||||
| Assets | |||||
| Loans receivable | $ 68,438,336 | $ 65,715,364 | |||
| Interest receivable on loans | 1,028,917 | 955,443 | |||
| Cash | 145,366 | 142,546 | |||
| Other assets | 91,555 | 64,745 | |||
| Operating lease right-of-use asset, net | 303,366 | 317,080 | |||
| Deferred financing costs, net | 41,115 | 10,539 | |||
| Total assets | $ 70,048,655 | $ 67,205,717 |
| Liabilities and Stockholders’ Equity | |||||
| Liabilities: | |||||
| Line of credit | $ 18,389,558 | $ 15,645,970 | |||
| Senior secured notes (net of deferred financing costs of $303,470 and $322,241, respectively) | 5,696,530 | 5,677,759 | |||
| Deferred origination fees | 688,233 | 580,461 | |||
| Accounts payable and accrued expenses | 148,211 | 154,169 | |||
| Operating lease liability | 311,758 | 324,248 | |||
| Dividends payable | 1,436,868 | 1,436,868 | |||
| Total liabilities | 26,671,158 | 23,819,475 | |||
| Commitments and contingencies | |||||
| Stockholders’ equity: | |||||
| Preferred stock – $.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 | 45,526,012 | 45,522,746 | |||
| Treasury stock, at cost – 262,113 shares | (798,939) | (798,939) | |||
| Accumulated deficit | (1,361,333) | (1,349,322) | |||
| Total stockholders’ equity | 43,377,497 | 43,386,242 | |||
| Total liabilities and stockholders’ equity | $ 70,048,655 | $ 67,205,717 |
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
| Three Months Ended March 31, | |||||
| 2022 | 2021 | ||||
| Interest income from loans | $1,643,789 | $1,442,814 | |||
| Origination fees | 471,271 | 286,473 | |||
| Total revenue | 2,115,060 | 1,729,287 | |||
| Operating costs and expenses: | |||||
| Interest and amortization of deferred financing costs | 331,853 | 317,186 | |||
| Referral fees | 1,361 | 1,751 | |||
| General and administrative expenses | 361,489 | 308,981 | |||
| Total operating costs and expenses | 694,703 | 627,918 | |||
| Income from operations | 1,420,357 | 1,101,369 | |||
| Other income | 4,500 | 4,500 | |||
| Net income | $1,424,857 | $1,105,869 | |||
| Basic and diluted net income per common share outstanding: | |||||
| –Basic | $ | 0.12 | $ | 0.12 | |
| –Diluted | $ | 0.12 | $ | 0.12 | |
| Weighted average number of common shares outstanding: | |||||
| –Basic | 11,494,945 | 9,619,945 | |||
| –Diluted | 11,494,945 | 9,619,945 | |||
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(unaudited)
FOR THE THREE MONTHS ENDED MARCH 31, 2022
| Common Shares | Additional Paid-in Capital | Treasury Stock | Accumulated Deficit | Totals | ||||||||||
| Shares | Amount | Shares | Cost | |||||||||||
| Balance, January 1, 2022 | 11,757,058 | $11,757 | $45,522,746 | 262,113 | $(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, 2022 | 11,757,058 | $11,757 | $45,526,012 | 262,113 | $(798,939) | $(1,361,333 | ) | $ 43,377,497 | ||||||
FOR THE THREE MONTHS ENDED MARCH 31, 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 | 3,266 | 3,266 | |||||||||||
| Net income | 1,105,869 | 1,105,869 | |||||||||||
| Balance, March 31, 2021 | 9,882,058 | $9,882 | $33,160,362 | 262,113 | $(798,939) | $702,020 | $ 33,073,325 | ||||||
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
| Three Months Ended March 31, | |||||||
| 2022 | 2021 | ||||||
| Cash flows from operating activities: | |||||||
| Net income | $ | 1,424,857 | $ | 1,105,869 | |||
| Adjustments to reconcile net income to net cash provided by operating activities – | |||||||
| Amortization of deferred financing costs | 24,015 | 24,263 | |||||
| Adjustment to operating lease right-of-use asset and liability | 1,224 | 1,192 | |||||
| Depreciation | 469 | 587 | |||||
| Non-cash compensation expense | 3,266 | 3,266 | |||||
| Changes in operating assets and liabilities: | |||||||
| Interest receivable on loans | (73,474 | ) | (87,896 | ) | |||
| Other assets | (27,280 | ) | (14,998 | ) | |||
| Accounts payable and accrued expenses | (5,958 | ) | (38,587 | ) | |||
| Deferred origination fees | 107,772 | 71,289 | |||||
| Net cash provided by operating activities | 1,454,891 | 1,064,985 | |||||
| Cash flows from investing activities: | |||||||
| Issuance of short term loans | (18,295,339 | ) | (9,659,678 | ) | |||
| Collections received from loans | 15,572,367 | 9,267,410 | |||||
| Net cash used in investing activities | (2,722,972 | ) | (392,268 | ) | |||
| Cash flows from financing activities: | |||||||
| Proceeds from line of credit, net | 2,743,588 | 132,174 | |||||
| Dividend paid | (1,436,868 | ) | (1,058,194 | ) | |||
| Deferred financing costs incurred | (35,819 | ) | — | ||||
| Net cash provided by (used in) financing activities | 1,270,901 | (926,020 | ) | ||||
| Net increase (decrease) in cash | 2,820 | (253,303 | ) | ||||
| Cash and restricted cash*, beginning of year | 142,546 | 459,137 | |||||
| Cash and restricted cash*, end of period | $ | 145,366 | $ | 205,834 | |||
| Supplemental Cash Flow Information: | |||||||
| Interest paid during the period | $ | 277,757 | $ | 302,160 | |||
| Operating leases paid during the period | $ | 15,881 | $ | 15,849 | |||
| Supplemental Information – Noncash Information: | |||||||
| Dividend declared and payable | $ | 1,436,868 | $ | — | |||
* At January 1, 2021, cash and restricted cash included $327,483 of restricted cash. No other periods above included restricted cash.
CONTACT: Contact: Assaf Ran, CEO Vanessa Kao, CFO (516) 444-3400 SOURCE: Manhattan Bridge Capital, Inc.
