Manhattan Bridge Capital, Inc. Reports Third Quarter 2023 Results
GREAT NECK, N.Y., Oct. 24, 2023 (GLOBE NEWSWIRE) — Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) (the “Company”) announced today that its net income for the three months ended September 30, 2023 was approximately $1,446,000, or $0.13 per basic and diluted share (based on approximately 11.5 million weighted-average outstanding common shares), as compared to approximately $1,237,000, or $0.11 per basic and diluted share (based on approximately 11.5 million weighted-average outstanding common shares), for the three months ended September 30, 2022, an increase of $209,000, or 16.9%. This increase is primarily attributable to an increase in interest income from loans, partially offset by an increase in interest expense.
Total revenues for the three months ended September 30, 2023 were approximately $2,434,000 compared to approximately $2,107,000 for the three months ended September 30, 2022, an increase of $327,000, or 15.5%. The increase in revenues was due to higher interest rates charged on the Company’s commercial loans. For the three months ended September 30, 2023 and 2022, approximately $1,992,000 and $1,678,000, respectively, of the Company’s revenues were attributable to interest income on secured commercial loans that the Company offers to real estate investors, and approximately $441,000 and $429,000, respectively, of the Company’s 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 nine months ended September 30, 2023 was approximately $4,128,000, or $0.36 per basic and diluted share (based on approximately 11.5 million weighted-average outstanding common shares), as compared to approximately $4,018,000, or $0.35 per basic and diluted share (based on approximately 11.5 million weighted-average outstanding common shares) for the nine months ended September 30, 2022, an increase of $110,000, or 2.7%. This increase is primarily attributable to an increase in interest income from loans, partially offset by an increase in interest expense.
Total revenues for the nine months ended September 30, 2023 were approximately $7,231,000 compared to approximately $6,339,000 for the nine months ended September 30, 2022, an increase of $892,000, or 14.1%. The increase in revenues was due to higher interest rates charged on the Company’s commercial loans. For the nine months ended September 30, 2023 and 2022, revenues of approximately $5,889,000 and $4,934,000, respectively, were attributable to interest income on the secured commercial loans that the Company offers to real estate investors, and approximately $1,342,000 and $1,405,000, respectively, of the Company’s 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.
As of September 30, 2023, total stockholders’ equity was approximately $42,944,000.
On April 11, 2023, the Company’s Board of Directors authorized a share buy back program, pursuant to which the Company 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 may be terminated, increased or decreased by the Company’s Board of Directors in its discretion at any time. As of September 30, 2023, the Company has purchased an aggregate of 37,860 common shares under this repurchase program, at an aggregate cost of approximately $186,000.
Assaf Ran, Chairman of the Board and Chief Executive Officer of the Company, stated, “In the current real estate market condition, we are reaping the fruits of our disciplined and conservative underwriting practices as well as our extraordinary low leverage versus our peers. Due to the high interest rates environment, real estate markets are slower and heavier. Yet, we face less competition, so we have managed to remain active.”
“I’d like to offer my sincere condolences to the families of the victims of the evil massacre of innocent Israeli citizens, including babies, children and women by the terror organization Hamas, and I pray for fast recovery of the wounded and the return of the over 200 hostages,” added Mr. Ran.
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 | |||||||
| Assets | September 30, 2023 (unaudited) | December 31, 2022 (audited) | |||||
| Loans receivable | $ | 70,781,039 | $ | 74,483,463 | |||
| Interest receivable on loans | 1,349,374 | 1,363,502 | |||||
| Cash | 133,147 | 103,540 | |||||
| Other assets | 100,030 | 59,566 | |||||
| Operating lease right-of-use asset, net | 221,079 | 262,222 | |||||
| Deferred financing costs, net | 30,765 | 7,708 | |||||
| Total assets | $ | 72,615,434 | $ | 76,280,001 | |||
| Liabilities and Stockholders’ Equity | |||||||
| Liabilities: | |||||||
| Line of credit | $ | 21,433,094 | $ | 24,994,234 | |||
| Senior secured notes (net of deferred financing costs of $190,842 and $247,155, respectively) | 5,809,158 | 5,752,845 | |||||
| Deferred origination fees | 670,295 | 669,128 | |||||
| Accounts payable and accrued expenses | 236,186 | 289,868 | |||||
| Operating lease liability | 233,978 | 273,485 | |||||
| Dividends payable | 1,288,753 | 1,436,868 | |||||
| Total liabilities | 29,671,464 | 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; 11,457,085 and 11,494,945 outstanding, respectively | 11,757 | 11,757 | |||||
| Additional paid-in capital | 45,545,609 | 45,535,811 | |||||
| Treasury stock, at cost – 299,973 and 262,113 shares, respectively | (984,630 | ) | (798,939 | ) | |||
| Accumulated deficit | (1,628,766 | ) | (1,885,056 | ) | |||
| Total stockholders’ equity | 42,943,970 | 42,863,573 | |||||
| Total liabilities and stockholders’ equity | $ | 72,615,434 | $ | 76,280,001 | |||
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | ||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||
| Interest income from loans | $ | 1,992,495 | $ | 1,677,670 | $ | 5,888,843 | $ | 4,933,767 | ||||
| Origination fees | 441,271 | 429,350 | 1,342,077 | 1,405,076 | ||||||||
| Total revenue | 2,433,766 | 2,107,020 | 7,230,920 | 6,338,843 | ||||||||
| Operating costs and expenses: | ||||||||||||
| Interest and amortization of deferred financing costs | 614,389 | 496,718 | 1,856,079 | 1,204,954 | ||||||||
| Referral fees | 361 | 625 | 1,652 | 3,945 | ||||||||
| General and administrative expenses | 377,192 | 377,436 | 1,274,267 | 1,125,162 | ||||||||
| Total operating costs and expenses | 991,942 | 874,779 | 3,131,998 | 2,334,061 | ||||||||
| Income from operations | 1,441,824 | 1,232,241 | 4,098,922 | 4,004,782 | ||||||||
| Other income | 4,500 | 4,500 | 29,380 | 13,500 | ||||||||
| Income before income tax expense | 1,446,324 | 1,236,741 | 4,128,302 | 4,018,282 | ||||||||
| Income tax expense | — | — | (650 | ) | (650 | ) | ||||||
| Net income | $ | 1,446,324 | $ | 1,236,741 | $ | 4,127,652 | $ | 4,017,632 | ||||
| Basic and diluted net income per common share outstanding: | ||||||||||||
| –Basic | $ | 0.13 | $ | 0.11 | $ | 0.36 | $ | 0.35 | ||||
| –Diluted | $ | 0.13 | $ | 0.11 | $ | 0.36 | $ | 0.35 | ||||
| Weighted average number of common shares outstanding | ||||||||||||
| –Basic | 11,461,052 | 11,494,945 | 11,477,133 | 11,494,945 | ||||||||
| –Diluted | 11,461,052 | 11,494,945 | 11,477,133 | 11,494,945 | ||||||||
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (unaudited) | |||||||
| FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2023 | |||||||
| Common Shares | Additional Paid in Capital | Treasury Shares | Accumulated Deficit | Totals | |||
| Shares | Amount | Shares | Cost | ||||
| Balance, July 1, 2023 | 11,757,058 | $11,757 | $45,542,343 | 295,473 | $(963,745) | $(1,786,337) | $42,804,018 |
| Purchase of treasury shares | 4,500 | (20,885) | (20,885) | ||||
| Non-cash compensation | 3,266 | 3,266 | |||||
| Dividends declared and payable | (1,288,753) | (1,288,753) | |||||
| Net income | 1,446,324 | 1,446,324 | |||||
| Balance, September 30, 2023 | 11,757,058 | $11,757 | $45,545,609 | 299,973 | $(984,630) | $(1,628,766) | $42,943,970 |
| FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2022 | |||||||
| Common Shares | Additional Paid in Capital | Treasury Shares | Accumulated Deficit | Totals | |||
| Shares | Amount | Shares | Cost | ||||
| Balance, July 1, 2022 | 11,757,058 | $11,757 | $45,529,278 | 262,113 | $(798,939) | $(1,442,167) | $43,299,929 |
| Non-cash compensation | 3,266 | 3,266 | |||||
| Dividends declared and payable | (1,436,868) | (1,436,868) | |||||
| Net income | 1,236,741 | 1,236,741 | |||||
| Balance, September 30, 2022 | 11,757,058 | $11,757 | $45,532,544 | 262,113 | $(798,939) | $(1,642,294) | $43,103,068 |
| FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023 | |||||||
| Common Shares | Additional Paid in Capital | Treasury Shares | Accumulated Deficit | Totals | |||
| Shares | Amount | Shares | Cost | ||||
| Balance, January 1, 2023 | 11,757,058 | $11,757 | $45,535,811 | 262,113 | $(798,939) | $(1,885,056) | $42,863,573 |
| Purchase of treasury shares | 37,860 | (185,691) | (185,691) | ||||
| Non-cash compensation | 9,798 | 9,798 | |||||
| Dividends paid | (2,582,609) | (2,582,609) | |||||
| Dividends declared and payable | (1,288,753) | (1,288,753) | |||||
| Net income | 4,127,652 | 4,127,652 | |||||
| Balance, September 30, 2023 | 11,757,058 | $11,757 | $45,545,609 | 299,973 | $(984,630) | $(1,628,766) | $42,943,970 |
| FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2022 | |||||||
| Common Shares | Additional Paid in Capital | Treasury Shares | 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 | 9,798 | 9,798 | |||||
| Dividends paid | (2,873,736) | (2,873,736) | |||||
| Dividends declared and payable | (1,436,868) | (1,436,868) | |||||
| Net income | 4,017,632 | 4,017,632 | |||||
| Balance, September 30, 2022 | 11,757,058 | $11,757 | $45,532,544 | 262,113 | $(798,939) | $(1,642,294) | $43,103,068 |
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) | ||||||||
| Nine Months Ended September 30, | ||||||||
| 2023 | 2022 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 4,127,652 | $ | 4,017,632 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities – | ||||||||
| Amortization of deferred financing costs | 71,449 | 83,401 | ||||||
| Adjustment to operating lease right-of-use asset and liability | 1,636 | 3,274 | ||||||
| Depreciation | 3,001 | 1,598 | ||||||
| Non-cash compensation expense | 9,798 | 9,798 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Interest receivable on loans | 14,128 | (176,746 | ) | |||||
| Other assets | (38,381 | ) | (29,164 | ) | ||||
| Accounts payable and accrued expenses | (53,682 | ) | 47,890 | |||||
| Deferred origination fees | 1,167 | 61,645 | ||||||
| Net cash provided by operating activities | 4,136,768 | 4,019,328 | ||||||
| Cash flows from investing activities: | ||||||||
| Issuance of short term loans | (40,810,565 | ) | (49,241,679 | ) | ||||
| Collections received from loans | 44,512,989 | 42,255,461 | ||||||
| Purchase of fixed assets | (5,085 | ) | (1,893 | ) | ||||
| Net cash provided by (used in) investing activities | 3,697,339 | (6,988,111 | ) | |||||
| Cash flows from financing activities: | ||||||||
| (Repayment of) proceeds from line of credit, net | (3,561,140 | ) | 7,715,637 | |||||
| Dividends paid | (4,019,478 | ) | (4,310,604 | ) | ||||
| Purchase of treasury shares | (185,691 | ) | — | |||||
| Deferred financing costs incurred | (38,191 | ) | (35,819 | ) | ||||
| Net cash (used in) provided by financing activities | (7,804,500 | ) | 3,369,214 | |||||
| Net increase in cash and restricted cash* | 29,607 | 400,431 | ||||||
| Cash and restricted cash*, beginning of year | 103,540 | 142,546 | ||||||
| Cash and restricted cash*, end of period | $ | 133,147 | $ | 542,977 | ||||
| Supplemental Cash Flow Information: | ||||||||
| Taxes paid during the period | $ | 650 | $ | 650 | ||||
| Interest paid during the period | $ | 1,797,254 | $ | 1,036,338 | ||||
| Operating leases paid during the period | $ | 47,822 | $ | 47,703 | ||||
| Supplemental Information – Noncash Information: | ||||||||
| Dividend declared and payable | $ | 1,288,753 | $ | 1,436,868 | ||||
| * At September 30, 2022, cash and restricted cash included $433,269 of restricted cash. | ||||||||
CONTACT: Contact: Assaf Ran, CEO Vanessa Kao, CFO (516) 444-3400 SOURCE: Manhattan Bridge Capital, Inc.
