LONG ISLAND, N.Y., Oct. 29, 2015 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (NASDAQ:LOAN)
Manhattan Bridge Capital, Inc. announced today that total revenues for the three month period ended September 30, 2015 were approximately $1,032,000 compared to approximately $766,000 for the three month period ended September 30, 2014, an increase of $266,000, or 34.7%. The increase in revenue represents an increase in lending operations. For the three month periods ended September 30, 2015 and 2014, approximately $871,000 and $632,000, respectively, of our revenues were attributable to interest income on the secured commercial loans that we offer to small businesses, and approximately $160,000 and $134,000, respectively, of our revenues were attributable to origination fees on such loans.
Net income for the three month period ended September 30, 2015 was approximately $639,000 or $0.09 per share, versus net income of approximately $429,000 or $0.08 per for the three month period ended September 30, 2014, an increase of $210,000 or 49.0%. This increase in net income was mainly due to an increase in operating income as a result of increased lending activity.
Total revenues for the nine month period ended September 30, 2015 were approximately $2,855,000 compared to approximately $2,005,000 for the nine month period ended September 30, 2014, an increase of $850,000, or 42.4%. The increase in revenue represents an increase in lending operations. For the nine month periods ended September 30, 2015 and 2014, revenues of approximately $2,392,000 and $1,657,000, respectively, were attributable to interest income on the secured commercial loans that we offer to small businesses, and approximately $463,000 and $348,000, respectively, were attributable to origination fees on such loans.
Net income for the nine month period ended September 30, 2015 was approximately $1,645,000 or $0.25 per basic and diluted share, versus net income of approximately $1,058,000 or $0.23 per basic share and $0.22 per diluted share for the same period in 2014, an increase of $587,000 or 55.5%. This increase in net income was mainly due to an increase in operating income as a result of increased lending activity.
As of September 30, 2015 total shareholders' equity was approximately $18,241,000 compared to approximately $18,184,000 as of June 30, 2015 and approximately 13,866,000 as of December 31, 2014.
We currently satisfy all of the requirements to be taxed as a REIT and elected to be taxed as a REIT commencing with our taxable year ended December 31, 2014. As a REIT, we are required to distribute at least 90% of our taxable income to our shareholders on an annual basis.
Assaf Ran, Chairman of the Board and CEO stated, “During the third quarter we have managed to responsibly continue our constant growth in accordance with our expectations. The numbers speak for themselves, as our plan works. The goal is to continue underwriting good loans to good borrowers while maintaining a safe equity to leverage ratio," 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 | |||||||
| | September 30, 2015 | December 31, 2014 | |||||
| Assets | (unaudited) | (audited) | |||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 61,144 | $ | 47,676 | |||
| Short term loans receivable | 15,633,990 | 19,138,426 | |||||
| Interest receivable on loans | 322,582 | 213,766 | |||||
| Other current assets | 54,370 | 26,995 | |||||
| Total current assets | 16,072,086 | 19,426,863 | |||||
| Long term loans receivable | 13,510,050 | 4,894,050 | |||||
| Property and equipment, net | 17,636 | 19,088 | |||||
| Security deposit | 6,816 | 6,816 | |||||
| Investment in privately held company | 50,000 | 65,000 | |||||
| Deferred financing costs | 116,399 | 32,500 | |||||
| Total assets | $ | 29,772,987 | $ | 24,444,317 | |||
| Liabilities and Stockholders’ Equity | |||||||
| Current liabilities: | |||||||
| Short term loans | $ | 1,095,620 | $ | 2,469,465 | |||
| Line of credit | 10,098,083 | 7,700,000 | |||||
| Accounts payable and accrued expenses | 89,591 | 163,622 | |||||
| Deferred origination fees | 249,135 | 244,776 | |||||
| Total liabilities, all current | 11,532,429 | 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; 7,401,489 and 6,260,689 issued; 7,224,489 and 6,083,689 outstanding | 7,401 | 6,260 | |||||
| Additional paid-in capital | 18,395,326 | 14,116,183 | |||||
| Treasury stock, at cost – 177,000 | (369,335 | ) | (369,335 | ) | |||
| Retained earnings | 207,166 | 113,346 | |||||
| Total stockholders’ equity | 18,240,558 | 13,866,454 | |||||
| Total liabilities and stockholders’ equity | $ | 29,772,987 | $ | 24,444,317 | |||
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY | ||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
| (unaudited) | ||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||
| Interest income from loans | $ | 871,250 | $ | 631,640 | $ | 2,392,329 | $ | 1,657,076 | ||||
| Origination fees | 160,456 | 134,080 | 463,092 | 347,637 | ||||||||
| Total Revenue | 1,031,706 | 765,720 | 2,855,421 | 2,004,713 | ||||||||
| Operating costs and expenses: | ||||||||||||
| Interest and amortization of debt service costs | 159,875 | 144,392 | 493,652 | 383,721 | ||||||||
| Referral fees | 948 | 665 | 3,260 | 1,049 | ||||||||
| General and administrative expenses | 229,873 | 202,822 | 696,464 | 554,631 | ||||||||
| Total operating costs and expenses | 390,696 | 347,879 | 1,193,376 | 939,401 | ||||||||
| Income from operations | 641,010 | 417,841 | 1,662,045 | 1,065,312 | ||||||||
| Other income | --- | 6,887 | --- | 20,661 | ||||||||
| Loss on write-down of investment in privately held company | --- | --- | (15,000 | ) | --- | |||||||
| Income before income tax (expense) benefit | 641,010 | 424,728 | 1,647,045 | 1,085,973 | ||||||||
| Income tax (expense) benefit | (2,005 | ) | 4,291 | (2,005 | ) | (27,709 | ) | |||||
| Net Income | $ | 639,005 | $ | 429,019 | $ | 1,645,040 | $ | 1,058,264 | ||||
| Basic and diluted net income per common share outstanding: | ||||||||||||
| --Basic | $ | 0.09 | $ | 0.08 | $ | 0.25 | $ | 0.23 | ||||
| --Diluted | $ | 0.09 | $ | 0.08 | $ | 0.25 | $ | 0.22 | ||||
| Weighted average number of common shares outstanding | ||||||||||||
| --Basic | 7,223,043 | 5,487,494 | 6,597,987 | 4,680,340 | ||||||||
| --Diluted | 7,263,017 | 5,526,798 | 6,637,755 | 4,727,966 | ||||||||
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY | ||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (unaudited) | ||||||||
| Nine Months Ended September 30, | ||||||||
| 2015 | 2014 | |||||||
| Cash flows from operating activities: | ||||||||
| Net Income | $ | 1,645,040 | $ | 1,058,264 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities - | ||||||||
| Amortization of deferred financing costs | 27,501 | --- | ||||||
| Depreciation | 4,926 | --- | ||||||
| Non cash compensation expense | 10,248 | 17,799 | ||||||
| Loss on write-down of investment in privately held company | 15,000 | --- | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Interest receivable on loans | (108,815 | ) | (21,850 | ) | ||||
| Other current and non current assets | (27,377 | ) | (33,357 | ) | ||||
| Accounts payable and accrued expenses | (74,031 | ) | (14,409 | ) | ||||
| Deferred origination fees | 4,360 | 149,550 | ||||||
| Income taxes payable | --- | (373,219 | ) | |||||
| Net cash provided by operating activities | 1,496,852 | 782,778 | ||||||
| Cash flows from investing activities: | ||||||||
| Issuance of short term loans | (15,346,500 | ) | (18,827,000 | ) | ||||
| Collections received from loans | 10,234,936 | 10,518,616 | ||||||
| Purchase of fixed assets | (3,474 | ) | --- | |||||
| Net cash used in investing activities | (5,115,038 | ) | (8,308,384 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from loans and line of credit, net | 1,024,238 | 2,650,000 | ||||||
| Proceeds from public offering, net | 4,237,199 | 4,288,765 | ||||||
| Deferred financing costs | (111,400 | ) | --- | |||||
| Proceeds from exercise of stock options and warrants | 32,838 | 55,230 | ||||||
| Dividends paid | (1,551,221 | ) | (429,329 | ) | ||||
| Net cash provided by financing activities | 3,631,654 | 6,564,666 | ||||||
| Net increase (decrease) in cash and cash equivalents | 13,468 | (960,940 | ) | |||||
| Cash and cash equivalents, beginning of period | 47,676 | 1,021,023 | ||||||
| Cash and cash equivalents, end of period | $ | 61,144 | $ | 60,083 | ||||
| Supplemental Cash Flow Information: | ||||||||
| Taxes paid during the period | $ | 29 | $ | 415,928 | ||||
| Interest paid during the period | $ | 423,650 | $ | 383,721 | ||||