Manhattan Bridge Capital, Inc. Reports Results for 2019

GREAT NECK, N.Y., March 17, 2020 (GLOBE NEWSWIRE) — Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that net income for the year ended December 31, 2019 was approximately $4,495,000, or $0.47 per share (based on approximately 9.7 million weighted-average outstanding common shares), versus approximately $4,204,000, or $0.48 per share (based on approximately 8.8 million weighted-average outstanding common shares) for the year ended December 31, 2018, an increase of $291,000 or 7.0%. This increase in net income was mainly due to an increase in operating income and decreases in interest and payroll expenses.   Total revenue for the year ended December 31, 2019 was approximately $7,340,000 compared to approximately $7,225,000 for the year ended December 31, 2018, an increase of $115,000 or 1.6%. The increase in revenue was primarily attributable to an increase in origination fees resulting from an increase in the rate of loan turnover. In 2019, approximately $6,186,000 of our revenue represents interest income on secured, real estate loans that we offer to small businesses compared to approximately $6,168,000 in 2018, and approximately $1,154,000 represents origination fees on such loans compared to approximately $1,057,000 in 2018.Total operating costs and expenses for the year ended December 31, 2019 were approximately $2,842,000 compared to approximately $3,022,000 for the year ended December 31, 2018, a decrease of $180,000 or 6.0%. The decrease in operating costs and expenses is primarily attributable to an annual bonus paid to officers in 2018 which was not repeated in 2019, a voluntary waiver from the Company’s CEO forgoing his base salary for the months of November and December 2019, and decreased interest expense due to lower LIBOR rates.As of December 31, 2019, total shareholders’ equity was approximately $31,943,000 compared to approximately $32,081,000 as of December 31, 2018.Effective February 25, 2020, the Company amended its existing credit line agreement with Webster Business Credit Corporation, Flushing Bank, and Mizrahi Tefahot Bank Ltd. to further increase its credit line from $25 million to $32.5 million and extend its term to February 28, 2023.On February 26, 2020, our Board of Directors authorized a share buy back program for the Company to purchase up to 100,000 of its common shares in the next twelve months. As of March 12, 2020, the Company has purchased a total of 18,786 common shares under this share buy back program, at an aggregate cost of approximately $102,000.Assaf Ran, Chairman of the Board and CEO, stated, “During 2019, typical interest rates charged by hard money lenders dropped from 12% to 10%. Our challenge was to maintain revenue and net income without compromising our quality standards. We believe that we managed to achieve that. While due to the reduction of interest rates and the general slowdown in the real estate markets, our growth rate declined, we’re proud to present another year of no defaults in our portfolio.”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 web site: https://www.manhattanbridgecapital.com.Forward Looking StatementsThis 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 the potential repurchase of our shares, 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; and (viii) we may choose to make distributions in our own stock, in which case stockholders may be required to pay income taxes in excess of the cash dividends you receive. The risk factors contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019 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
DECEMBER 31, 2019 AND 2018
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018                                  
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018