LONG ISLAND, N.Y., May 4, 2015 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq:LOAN) announced today that total revenues for the three month period ended March 31, 2015 were approximately $912,000 compared to approximately $609,000 for the three month period ended March 31, 2014, an increase of $303,000 or 49.8%. The increase in revenue represents an increase in lending operations. In 2015, approximately $757,000 of our revenue represents interest income on secured, commercial loans that we offer to small businesses compared to approximately $507,000 for the same period in 2014, and approximately $155,000 represents origination fees on such loans compared to approximately $102,000 for the same period in 2014. The loans are principally secured by collateral consisting of real estate and, generally, accompanied by personal guarantees from the principals of the businesses.
Net income for the three month period ended March 31, 2015 was $0.08 per share or approximately $476,000, versus $0.05 per share or approximately $208,000 for the three month period ended March 31, 2014, an increase in earnings per share of 60% or in net income of 128%. The increase in net income was mainly due to an increase in operating income and no income tax expense for the three month period ended March 31, 2015. We believe that we satisfy all of the requirements to be taxed as a REIT and intend to elect REIT status when we file our 2014 tax return. As a REIT, we are required to distribute at least 90% of our taxable income to our shareholders and are entitled to claim deductions for such distributions thereby eliminating any corporate tax on such taxable income.
Income from operations for the three month period ended March 31, 2015 was approximately $476,000 compared to approximately $316,000 for the three month period ended March 31, 2014, an increase of $160,000 or 50.6%. This increase in income from operations is primarily attributable to an increase in revenue, offset by an increase in interest expense resulting from the additional short term loans received by the Company and the Company's use of lines of credit in order to increase its ability to make loans, and by a special bonus to officers for establishing a three-year $14 million revolving line of credit with Webster Business Credit Corporation.
Total stockholders' equity was approximately $13,866,000 as of March 31, 2015 and December 31, 2014.
Assaf Ran, Chairman of the Board and CEO stated, "The $14,000,000 three year line of credit from Webster Business Credit Corp. was definitely the most important transaction of the first quarter. This line will allow continued growth and hopefully further increase of the quarterly dividend. Other than that, we have demonstrated another quarter of good performances while avoiding problematic loans," 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. We operate the web site: http://www.manhattanbridgecapital.com
This report contains forward-looking statements within the meaning of section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements are typically identified by the words "believe," "expect," "intend," "estimate" and similar expressions. Those statements appear in a number of places in this report and include statements regarding our intent, belief or current expectations or those of our directors or officers with respect to, among other things, trends affecting our financial condition and results of operations and our business and growth strategies. These 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 (such factors are referred to herein as "Cautionary Statements"), including but not limited to the following: (i) we may not qualify as a REIT; (ii) we have no operating history as a REIT; (iii) our loan origination activities, revenues and profits are limited by available funds; (iv) we operate in a highly competitive market and competition may limit our ability to originate loans with favorable interest rates; (v) our chief executive officer is critical to our business and our future success may depend on our ability to retain him; (vi) if we overestimate the yields on our loans or incorrectly value the collateral securing the loan, we may experience losses; (vii) we may be subject to "lender liability" claims; (viii) our loan portfolio is illiquid; (ix) our due diligence may not uncover all of a borrower's liabilities or other risks to its business; (x) borrower concentration could lead to significant losses; (xi) our management has no experience managing a REIT; and (xii) 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. The accompanying information contained in this report, including the information set forth under "Management's Discussion and Analysis of Financial Condition and Results of Operations," identifies important factors that could cause such differences. These forward-looking statements speak only as of the date of this report, and we caution potential investors not to place undue reliance on such statements. We undertake no obligation to update or revise any forward-looking statements. All subsequent written or oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the Cautionary Statements.
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY | ||
| CONSOLIDATED BALANCE SHEETS | ||
| March 31, 2015 | December 31, 2014 | |
| Assets | (unaudited) | (audited) |
| Current assets: | ||
| Cash and cash equivalents | $256,282 | $47,676 |
| Short term loans receivable | 17,006,406 | 19,138,426 |
| Interest receivable on loans | 219,299 | 213,766 |
| Other current assets | 52,304 | 26,995 |
| Total current assets | 17,534,291 | 19,426,863 |
| Long term loans receivable | 6,754,550 | 4,894,050 |
| Property and equipment, net | 17,497 | 19,088 |
| Other assets | 12,500 | --- |
| Security deposit | 6,816 | 6,816 |
| Investment in privately held company | 65,000 | 65,000 |
| Deferred financing costs | 119,638 | 32,500 |
| Total assets | $24,510,292 | $24,444,317 |
| Liabilities and Stockholders' Equity | ||
| Current liabilities: | ||
| Short term loans | $1,095,620 | $2,469,465 |
| Line of credit | 9,316,046 | 7,700,000 |
| Accounts payable and accrued expenses | 66,061 | 163,622 |
| Deferred origination fees | 166,533 | 244,776 |
| Total liabilities, all current | 10,644,260 | 10,577,863 |
| Commitments and contingencies | ||
| Stockholders' equity: | ||
| Preferred shares -- $.01 par value; 5,000,000 shares authorized; no shares issued | --- | --- |
| Common shares -- $.001 par value; 25,000,000 authorized; 6,266,089 and 6,260,689 issued; 6,089,089 and 6,083,689 outstanding | 6,266 | 6,260 |
| Additional paid-in capital | 14,126,853 | 14,116,183 |
| Treasury stock, at cost – 177,000 | (369,335) | (369,335) |
| Retained earnings | 102,248 | 113,346 |
| Total stockholders' equity | 13,866,032 | 13,866,454 |
| Total liabilities and stockholders' equity | $24,510,292 | $24,444,317 |
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY | ||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||
| (unaudited) | ||
| Three Months | ||
| Ended March 31, | ||
| 2015 | 2014 | |
| Interest income from loans | $756,750 | $507,371 |
| Origination fees | 155,011 | 101,539 |
| Total revenue | 911,761 | 608,910 |
| Operating costs and expenses: | ||
| Interest and amortization of debt service costs | 183,055 | 116,423 |
| Referral fees | 1,197 | 109 |
| General and administrative expenses | 251,913 | 175,996 |
| Total operating costs and expenses | 436,165 | 292,528 |
| Income from operations | 475,596 | 316,382 |
| Other income | --- | 6,887 |
| Income before income tax expense | 475,596 | 323,269 |
| Income tax expense | --- | (115,000) |
| Net income | $475,596 | $208,269 |
| Basic and diluted net income per common share outstanding: | ||
| --Basic | $0.08 | $0.05 |
| --Diluted | $0.08 | $0.05 |
| Weighted average number of common shares outstanding: | ||
| --Basic | 6,087,531 | 4,256,190 |
| --Diluted | 6,129,016 | 4,286,673 |
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY | ||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| (unaudited) | ||
| Three Months | ||
| Ended March 31, | ||
| 2015 | 2014 | |
| Cash flows from operating activities: | ||
| Net income | $475,596 | $208,269 |
| Adjustments to reconcile net income to net cash provided by (used in) operating activities - | ||
| Amortization of deferred financing costs | 3,418 | --- |
| Depreciation | 1,591 | --- |
| Non cash compensation expense | 3,416 | 3,416 |
| Changes in operating assets and liabilities: | ||
| Interest receivable on loans | (5,532) | (16,865) |
| Other current and non current assets | (25,309) | (15,752) |
| Accounts payable and accrued expenses | (97,560) | (39,599) |
| Deferred origination fees | (78,243) | (8,504) |
| Income taxes payable | --- | (159,995) |
| Net cash provided by (used in) operating activities | 277,377 | (29,030) |
| Cash flows from investing activities: | ||
| Issuance of short term loans | (2,807,000) | (4,774,000) |
| Collections received from loans | 3,078,520 | 3,893,000 |
| Net cash provided by (used in) investing activities | 271,520 | (881,000) |
| Cash flows from financing activities: | ||
| Proceeds from (repayments of) lines of credit, net | 1,616,046 | (50,000) |
| Repayments of short-term loans, net | (1,373,846) | --- |
| Deferred financing costs | (90,556) | --- |
| Capital raising costs | (12,500) | (17,500) |
| Dividend paid | (486,695) | (42,562) |
| Proceeds from exercise of stock options and warrants | 7,260 | --- |
| Net cash used in financing activities | (340,291) | (110,062) |
| Net increase (decrease) in cash and cash equivalents | 208,606 | (1,020,092) |
| Cash and cash equivalents, beginning of period | 47,676 | 1,021,023 |
| Cash and cash equivalents, end of period | $256,282 | $931 |
| Supplemental Cash Flow Information: | ||
| Taxes paid during the period | $ --- | $274,995 |
| Interest paid during the period | $179,637 | $116,423 |