LONG ISLAND, N.Y., July 28, 2016 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (NASDAQ:LOAN)
Manhattan Bridge Capital, Inc. announced today that its total revenue for the three month period ended June 30, 2016 was approximately $1,166,000 compared to approximately $912,000 for the three month period ended June 30, 2015, an increase of $254,000, or 27.9%. For the three month period ended June 30, 2016, approximately $974,000 of the Company's revenue represents interest income on the secured, commercial loans that the Company offers to small businesses compared to approximately $764,000 for the same period in 2015, and approximately $192,000 represents origination fees on such loans compared to approximately $148,000 for the same period in 2015. The increase in revenue represents an increase in lending operations.
Income from operations for the three month period ended June 30, 2016 was approximately $722,000 compared to approximately $545,000 for the same period ended June 30, 2015, an increase of $177,000 or 32.5%. This increase in income from operations resulted mainly from an increase in revenue, offset by an increase in interest and amortization of debt service costs resulting from the issuance of senior secured notes.
Net income for the three month period ended June 30, 2016 was approximately $710,000 or $0.10 per share, versus net income of approximately $530,000 or $0.08 per share for the three month period ended June 30, 2015, an increase of $180,000 or 34.0%. This increase in net income is mainly due to an increase in income from operations.
Total revenue for the six month period ended June 30, 2016 was approximately $2,270,000 compared to approximately $1,824,000 for the six month period ended June 30, 2015, an increase of $446,000, or 24.5%. For the six month period ended June 30, 2016, approximately $1,888,000 of the Company's revenue represents interest income on the secured, commercial loans that the Company offers to small businesses compared to approximately $1,521,000 for the same period in 2015, and approximately $382,000 represents origination fees on such loans compared to approximately $303,000 for the same period in 2015. The increase in revenue represents an increase in lending operations.
Income from operations for the six month period ended June 30, 2016 was approximately $1,418,000 compared to approximately $1,021,000 for the same period ended June 30, 2015, an increase of $397,000 or 38.9%. This increase in income from operations resulted mainly from an increase in revenue, offset by an increase in interest and amortization of debt service costs resulting from the establishment and use of the Webster Credit Line, and the issuance of the senior secured notes in order to increase our ability to make loans.
Net income for the six month period ended June 30, 2016 was approximately $1,405,000 or $0.19 per share, versus net income of approximately $1,006,000 or $0.16 per share for the same period in 2015, an increase of $399,000 or 39.7%. This increase in net income is mainly due to an increase in income from operations.
As of June 30, 2016 total shareholders' equity was approximately $18,638,000 compared to approximately $17,743,000 as of December 31, 2015, an increase of $895,000.
On April 25, 2016, MBC Funding II Corp (“Funding”), our wholly owned subsidiary, completed a firm commitment underwritten public offering of 6% senior secured notes due April 22, 2026. We guaranteed Funding’s obligations under the Notes, which are secured by our pledge of 100% of the outstanding common shares of Funding owned by us. The gross proceeds to Funding from this offering were approximately $6.0 million, and the net proceeds were approximately $5.3 million, after deducting the underwriting discounts and commissions and other offering expenses. Funding utilized the proceeds to purchase a pool of mortgage loans from us, which we in turn used to pay down the Webster Credit Line.
Assaf Ran, Chairman of the Board and CEO stated, “Market activity was significantly higher in the first half of the year, and we were well positioned to take advantage of that. As we started to deploy the proceeds from the bond offering that we closed at the end of April, we recorded another record quarter both in revenue and net earnings.”
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 have limited operating history as a REIT; (ii) our loan origination activities, revenues and profits are limited by available funds (iii)we operate in a highly competitive market and competition may limit our ability to originate loans with favorable interest rates; (iv) our chief executive officer is critical to our business and our future success may depend on our ability to retain him; (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 loan portfolio is illiquid; (viii) our due diligence may not uncover all of a borrower’s liabilities or other risks to its business; (ix) borrower concentration could lead to significant losses; (x) our management has no experience managing a REIT; and (xi) 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 SUBSIDIARIES | ||||||
| CONSOLIDATED BALANCE SHEETS | ||||||
| June 30, 2016 | December 31, 2015 | |||||
| (unaudited) | (audited) | |||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 127,500 | $ | 106,836 | ||
| Cash - restricted | 1,408,592 | --- | ||||
| Short term loans receivable | 23,293,500 | 20,199,000 | ||||
| Interest receivable on loans | 300,365 | 382,572 | ||||
| Other current assets | 59,595 | 32,865 | ||||
| Total current assets | 25,189,552 | 20,721,273 | ||||
| Long term loans receivable | 8,840,370 | 10,705,040 | ||||
| Property and equipment, net | 8,492 | 8,771 | ||||
| Security deposit | 6,816 | 6,816 | ||||
| Investment in privately held company | 40,000 | 50,000 | ||||
| Deferred financing costs | 80,275 | 164,510 | ||||
| Total assets | $ | 34,165,505 | $ | 31,656,410 | ||
| Liabilities and Stockholders’ Equity | ||||||
| Current liabilities: | ||||||
| Line of credit | $ | 9,469,589 | $ | 11,821,099 | ||
| Short term loans | --- | 1,095,620 | ||||
| Accounts payable and accrued expenses | 89,586 | 99,643 | ||||
| Deferred origination fees | 311,411 | 279,682 | ||||
| Dividends payable | --- | 617,443 | ||||
| Due to joint venture partners | 378,875 | --- | ||||
| Total current liabilities | 10,249,461 | 13,913,487 | ||||
| Long term liabilities: | ||||||
| Senior secured notes (net of deferred financing costs of $721,466) | 5,278,534 | --- | ||||
| Total liabilities | 15,527,995 | 13,913,487 | ||||
| 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; 7,469,239 and 7,441,039 issued; 7,292,239 and 7,264,039 outstanding | 7,469 | 7,441 | ||||
| Additional paid-in capital | 18,607,753 | 18,500,524 | ||||
| Treasury stock, at cost – 177,000 | (369,335 | ) | (369,335 | ) | ||
| Retained earnings (Accumulated deficit) | 391,623 | (395,707 | ) | |||
| Total stockholders’ equity | 18,637,510 | 17,742,923 | ||||
| Total liabilities and stockholders’ equity | $ | 34,165,505 | $ | 31,656,410 | ||
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES | ||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
| (unaudited) | ||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||
| Interest income from loans | $ | 973,934 | $ | 764,329 | $ | 1,888,243 | $ | 1,521,079 | ||||
| Origination fees | 191,959 | 147,625 | 382,240 | 302,636 | ||||||||
| Total Revenue | 1,165,893 | 911,954 | 2,270,483 | 1,823,715 | ||||||||
| Operating costs and expenses: | ||||||||||||
| Interest and amortization of debt service costs | 208,750 | 150,721 | 388,300 | 333,777 | ||||||||
| Referral fees | 1,894 | 1,115 | 3,262 | 2,312 | ||||||||
| General and administrative expenses | 233,545 | 214,679 | 461,385 | 466,591 | ||||||||
| Total operating costs and expenses | 444,189 | 366,515 | 852,947 | 802,680 | ||||||||
| Income from operations | 721,704 | 545,439 | 1,417,536 | 1,021,035 | ||||||||
| Loss on write-down of investment in privately held company | (10,000 | ) | (15,000 | ) | (10,000 | ) | (15,000 | ) | ||||
| Income before income tax expense | 711,704 | 530,439 | 1,407,536 | 1,006,035 | ||||||||
| Income tax expense | (1,639 | ) | --- | (2,146 | ) | --- | ||||||
| Net income | $ | 710,065 | $ | 530,439 | $ | 1,405,390 | $ | 1,006,035 | ||||
| Basic and diluted net income per common share outstanding: | ||||||||||||
| --Basic | $ | 0.10 | $ | 0.08 | $ | 0.19 | $ | 0.16 | ||||
| --Diluted | $ | 0.10 | $ | 0.08 | $ | 0.19 | $ | 0.16 | ||||
| Weighted average number of common shares outstanding | ||||||||||||
| --Basic | 7,279,332 | 6,470,905 | 7,271,685 | 6,280,278 | ||||||||
| --Diluted | 7,307,710 | 6,507,384 | 7,298,185 | 6,314,909 | ||||||||
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES | ||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (unaudited) | ||||||||
| Six Months Ended June 30, | ||||||||
| 2016 | 2015 | |||||||
| Cash flows from operating activities: | ||||||||
| Net Income | $ | 1,405,390 | $ | 1,006,035 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities - | ||||||||
| Amortization of deferred financing costs | 39,433 | 15,460 | ||||||
| Depreciation | 1,778 | 3,200 | ||||||
| Non cash compensation expense | 6,794 | 6,832 | ||||||
| Loss on write-down of investment in privately held company | 10,000 | 15,000 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Interest receivable on loans | 82,207 | (99,892 | ) | |||||
| Other current and non current assets | (26,730 | ) | (40,987 | ) | ||||
| Accounts payable and accrued expenses | (10,057 | ) | (76,609 | ) | ||||
| Deferred origination fees | 31,729 | (69,327 | ) | |||||
| Net cash provided by operating activities | 1,540,544 | 759,712 | ||||||
| Cash flows from investing activities: | ||||||||
| Issuance of short term loans | (14,869,500 | ) | (8,825,000 | ) | ||||
| Collections received from loans | 13,639,670 | 6,950,218 | ||||||
| Purchase of fixed assets | (1,499 | ) | (684 | ) | ||||
| Net cash used in investing activities | (1,231,329 | ) | (1,875,466 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Repayments of lines of credit, net | (2,351,510 | ) | (706,389 | ) | ||||
| Repayments of short-term loans, net | (1,095,620 | ) | (1,373,845 | ) | ||||
| Cash restricted for reduction of line of credit | (1,408,592 | ) | --- | |||||
| Amount collected payable to joint venture partners | 378,875 | --- | ||||||
| Deferred financing costs | --- | (111,400 | ) | |||||
| Proceeds from public offering, net | 5,323,336 | 4,254,527 | ||||||
| Proceeds from exercise of stock options and warrants | 100,463 | 24,368 | ||||||
| Dividend paid | (1,235,503 | ) | (973,822 | ) | ||||
| Net cash (used in) provided by financing activities | (288,551 | ) | 1,113,439 | |||||
| Net increase (decrease) in cash and cash equivalents | 20,664 | (2,315 | ) | |||||
| Cash and cash equivalents, beginning of year | 106,836 | 47,676 | ||||||
| Cash and cash equivalents, end of period | $ | 127,500 | $ | 45,361 | ||||
| Supplemental Cash Flow Information: | ||||||||
| Taxes paid during the period | $ | 1,948 | $ | --- | ||||
| Interest paid during the period | $ | 348,443 | $ | 318,317 | ||||