Manhattan Bridge Capital, Inc. Reports Results for 2022
GREAT NECK, N.Y., March 10, 2023 (GLOBE NEWSWIRE) —
Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that net income for the year ended December 31, 2022 was approximately $5,212,000, or $0.45 per share (based on approximately 11.5 million weighted-average outstanding common shares), versus approximately $4,423,000, or $0.42 per share (based on approximately 10.5 million weighted-average outstanding common shares) for the year ended December 31, 2021, an increase of $789,000, or 17.8%. This increase is primarily attributable to an increase in revenue, partially offset by increases in interest expense and general and administrative expenses.
Total revenue for the year ended December 31, 2022 was approximately $8,571,000, compared to approximately $6,808,000 for the year ended December 31, 2021, an increase of $1,763,000, or 25.9%. The increase in revenue was due to an increase in lending operations. In 2022, approximately $6,773,000 of our revenue represents interest income on secured, real estate loans that we offer to real estate investors compared to approximately $5,609,000 in 2021, and approximately $1,798,000 represents origination fees on such loans, compared to approximately $1,199,000 in 2021. The loans are principally secured by collateral consisting of real estate and accompanied by personal guarantees from the principals of the borrowers.
Total operating costs and expenses for the year ended December 31, 2022 were approximately $3,377,000 compared to approximately $2,402,000 for the year ended December 31, 2021, an increase of $975,000, or 40.6%. The increase in operating costs and expenses was primarily attributable to an increase in interest expense due to higher LIBOR rates relating to the use of our credit line in order to support our ability to increase loan originations, the significant reduction in the outstanding balance of our credit line due to a public offering of our common shares in July 2021, which gradually increased through December 2022, and a voluntary waiver from our Chief Executive Officer of his base salary for the fourth quarter of 2021.
As of December 31, 2022, total shareholders’ equity was approximately $42,864,000, compared to approximately $43,386,000 as of December 31, 2021.
Assaf Ran, Chairman of the Board and CEO, stated, “The dramatic interest rate increase during the 2022 fiscal year changed the dynamics of “Hard Money” lending. We have experienced a slow real estate market, a tight spread, and a drop in investor confidence, but also less competition. Although we benefited tremendously from our low debt-to-equity ratio in this rough time, and managed to present an all-time annual earnings record, the increased interest rate on our adjustable-rate line of credit became an unexpected burden and the main reason that our earnings per share were only $0.45 for the 2022 fiscal year.”
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 the Company’s 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. 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) an increase in interest rates may impact our profitability; (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 due diligence may not uncover all of a borrower’s liabilities or other risks to its business; (viii) borrower concentration could lead to significant losses and (ix) 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. The risk factors contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 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, 2022 and 2021
|
Assets |
2022 | 2021 | |||
| Loans receivable | $ | 74,483,463 | $ | 65,715,364 | |
| Interest receivable on loans | 1,363,502 | 955,443 | |||
| Cash | 103,540 | 142,546 | |||
| Other assets | 59,566 | 64,745 | |||
| Operating lease right-of-use asset, net | 262,222 | 317,080 | |||
| Deferred financing costs, net | 7,708 | 10,539 | |||
| Total assets | $ | 76,280,001 | $ | 67,205,717 |
| Liabilities and Stockholders’ Equity | ||||||||
| Liabilities: | ||||||||
| Line of credit | $ | 24,994,234 | $ | 15,645,970 | ||||
| Senior secured notes (net of deferred financing costs of $247,155 and $322,241, respectively) | 5,752,845 | 5,677,759 | ||||||
| Deferred origination fees | 669,128 | 580,461 | ||||||
| Accounts payable and accrued expenses | 289,868 | 154,169 | ||||||
| Operating lease liability | 273,485 | 324,248 | ||||||
| Dividends payable | 1,436,868 | 1,436,868 | ||||||
| Total liabilities | 33,416,428 | 23,819,475 | ||||||
|
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 | 45,535,811 | 45,522,746 | ||||||
| Treasury stock, at cost – 262,113 shares | (798,939 | ) | (798,939 | ) | ||||
| Accumulated deficit | (1,885,056 | ) | (1,349,322 | ) | ||||
| Total stockholders’ equity | 42,863,573 | 43,386,242 | ||||||
| Total liabilities and stockholders’ equity |
$ |
76,280,001 |
$ |
67,205,717 |
||||
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2022 and 2021
| 2022 | 2021 | ||||||
| Interest income from loans | $ | 6,772,889 | $ | 5,608,660 | |||
| Origination fees | 1,798,075 | 1,199,230 | |||||
| Total Revenue | 8,570,964 | 6,807,890 | |||||
| Operating costs and expenses: | |||||||
| Interest and amortization of deferred financing costs | 1,822,825 | 1,045,548 | |||||
| Referral fees | 4,500 | 7,532 | |||||
| General and administrative expenses | 1,549,251 | 1,348,838 | |||||
| Total operating costs and expenses | 3,376,576 | 2,401,918 | |||||
| Income from operations | 5,194,388 | 4,405,972 | |||||
| Other income | 18,000 | 18,000 | |||||
| Income before income tax expense | 5,212,388 | 4,423,972 | |||||
| Income tax expense | (650 | ) | (647 | ) | |||
| Net income | $ | 5,211,738 | $ | 4,423,325 | |||
| Basic and diluted net income per common share outstanding: | |||||||
| –Basic | $ | 0.45 | $ | 0.42 | |||
| –Diluted | $ | 0.45 | $ | 0.42 | |||
| Weighted average number of common shares outstanding | |||||||
| –Basic | 11,494,945 | 10,524,055 | |||||
| –Diluted | 11,494,945 | 10,524,055 | |||||
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2022 and 2021
| Common Stock | Additional Paid-in Capital |
Treasury Stock | Accumulated Deficit | 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 | ||||||
| Public offering, net | 1,875,000 | 1,875 | 12,352,585 | 12,354,460 | |||||||||||
| Non cash compensation | 13,065 | 13,065 | |||||||||||||
| Dividends paid | (3,931,930 | ) | (3,931,930 | ) | |||||||||||
| Dividends declared and payable | (1,436,868 | ) | (1,436,868 | ) | |||||||||||
| Net income for the year ended December 31, 2021 | 4,423,325 | 4,423,325 | |||||||||||||
| Balance, December 31, 2021 | 11,757,058 | 11,757 | 45,522,746 | 262,113 | (798,939 | ) | (1,349,322 | ) | 43,386,242 | ||||||
| Non cash compensation | 13,065 | 13,065 | |||||||||||||
| Dividends paid | (4,310,604 | ) | (4,310,604 | ) | |||||||||||
| Dividends declared and payable | (1,436,868 | ) | (1,436,868 | ) | |||||||||||
| Net income for the year ended December 31, 2022 | 5,211,738 | 5,211,738 | |||||||||||||
| Balance, December 31, 2022 | 11,757,058 | $ | 11,757 | $ | 45,535,811 | 262,113 | $ | (798,939 | ) | $ | (1,885,056 | ) | $ | 42,863,573 | |
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2022 and 2021
| 2022 | 2021 | ||||||
| Cash flows from operating activities: | |||||||
| Net income | $ | 5,211,738 | $ | 4,423,325 | |||
| Adjustments to reconcile net income to net cash provided by operating activities – | |||||||
| Amortization of deferred financing costs | 113,736 | 87,353 | |||||
| Depreciation | 2,307 | 2,265 | |||||
| Non cash compensation expense | 13,065 | 13,065 | |||||
| Adjustment to operating lease right-of-use asset and liability | 4,096 | 3,960 | |||||
| Changes in operating assets and liabilities | |||||||
| Interest receivable on loans | (408,059 | ) | (128,207 | ) | |||
| Other assets | 5,742 | (443 | ) | ||||
| Accounts payable and accrued expenses | 135,699 | (14,771 | ) | ||||
| Deferred origination fees | 88,667 | 212,823 | |||||
| Net cash provided by operating activities | 5,166,991 | 4,599,370 | |||||
| Cash flows from investing activities: | |||||||
| Issuance of short term loans | (60,915,596 | ) | (49,267,892 | ) | |||
| Collections received from loans | 52,147,497 | 41,650,498 | |||||
| Purchase of fixed assets | (2,871 | ) | — | ||||
| Net cash used in investing activities | (8,770,970 | ) | (7,617,394 | ) | |||
|
Cash flows from financing activities: |
|||||||
| Proceeds from public offering, net | — | 12,354,460 | |||||
| Proceeds from (repayment of) line of credit, net | 9,348,264 | (4,662,903 | ) | ||||
| Dividends paid | (5,747,472 | ) | (4,990,124 | ) | |||
| Deferred financing costs incurred | (35,819 | ) | — | ||||
| Net cash provided by financing activities | 3,564,973 | 2,701,433 | |||||
| Net decrease in cash and restricted cash | (39,006 | ) | (316,591 | ) | |||
| Cash and restricted cash, beginning of year* | 142,546 | 459,137 | |||||
| Cash, end of year | $ | 103,540 | $ | 142,546 | |||
| Supplemental Cash Flow Information: | |||||||
| Taxes paid during the year | $ | 650 | $ | 647 | |||
| Interest paid during the year | $ | 1,581,935 | $ | 982,491 | |||
| Operating leases paid during the year | $ | 63,621 | $ | 63,481 | |||
| Supplemental Information – Noncash Information: Dividend declared and payable |
$ | 1,436,868 | $ | 1,436,868 | |||
* At January 1, 2021, cash and restricted cash included $327,483 of restricted cash.
CONTACT: Contact: Assaf Ran, CEO Vanessa Kao, CFO (516) 444-3400 SOURCE: Manhattan Bridge Capital, Inc.
