GREAT NECK, N.Y., Oct. 20, 2020 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that its net income for the three months ended September 30, 2020 was approximately $1,151,000, or $0.12 per basic and diluted share (based on approximately 9.6 million weighted-average outstanding common shares), as compared to approximately $1,150,000, or $0.12 per basic and diluted share (based on approximately 9.7 million weighted-average outstanding common shares), for the three months ended September 30, 2019.

Total revenues for the three months ended September 30, 2020 were approximately $1,786,000, as compared to approximately $1,917,000 for the three months ended September 30, 2019, a decrease of $131,000 or 6.8%. The decrease in revenue was primarily attributable to lower interest rates and origination fees charged on loans due to market conditions and intense competition from other lenders, as well as lower demand for new loans resulting from the COVID-19 pandemic. For the three months ended September 30, 2020 and 2019, approximately $1,521,000 and $1,619,000, respectively, of our revenues were attributable to interest income on secured commercial loans that we offer to small businesses, and approximately $265,000 and $298,000, respectively, of our revenues were attributable to origination fees on such loans.

Net income for the nine months ended September 30, 2020 was approximately $3,264,000, or $0.34 per basic and diluted share (based on approximately 9.6 million weighted-average outstanding common shares), as compared to approximately $3,355,000, or $0.35 per basic and diluted share (based on approximately 9.7 million weighted-average outstanding common shares), for the nine months ended September 30, 2019, a decrease of $91,000, or 2.7%. This decrease is primarily attributable to the decrease in revenue, partially offset by the decrease in interest expense.

Total revenues for the nine months ended September 30, 2020 were approximately $5,239,000, as compared to approximately $5,484,000 for the nine months ended September 30, 2019, a decrease of $245,000, or 4.5%. The decrease in revenue was primarily attributable to lower interest rates and origination fees charged on loans due to market conditions and intense competition from other lenders, as well as lower demand for new loans resulting from the COVID-19 pandemic. For the nine months ended September 30, 2020 and 2019, revenues of approximately $4,485,000 and $4,609,000, respectively, were attributable to interest income on the secured commercial loans that we offer to small businesses, and approximately $753,000 and $875,000, respectively, of our revenues were attributable to origination fees on such loans.

Assaf Ran, Chairman of the Board and CEO, stated, “I am pleased to report that our conservative and careful policies have once again proven to protect our shareholders’ value during rough times. Not only do we continue to have no defaults, but we also managed to increase our earnings per share (EPS) to $0.12 for the quarter from $0.11 for the quarter ended June 30, 2020, and to continue distributing dividends during the difficult time we are experiencing due to the COVID-19 crisis.”

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 web site: https://www.manhattanbridgecapital.com.

Forward Looking Statements

This press release and the statements of our 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. For example, when we discuss our belief that our conservative and careful policies have protected our shareholders’ value during rough times, we are using 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) if we overestimate the yields on our loans or incorrectly value the collateral securing the loan, we may experience losses; (v) we may be subject to “lender liability” claims; (vi) our due diligence may not uncover all of a borrower’s liabilities or other risks to its business; (vii) borrower concentration could lead to significant losses; (viii) 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 and (ix) if the effect of the COVID-19 pandemic on our business is greater than anticipated. The risk factors contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019 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

 September 30, 2020  December 31, 2019 
 (unaudited)  (audited) 
Assets   
Loans receivable$57,883,068 $53,485,014
Interest receivable on loans809,975 675,996
Cash        
156,715 118,407
Other assets88,554 53,218
Operating lease right-of-use asset, net52,627 87,754
Deferred financing costs29,917 22,637
Total assets$59,020,856 $54,443,026


Liabilities and Stockholders’ Equity   
Liabilities:   
Line of credit$19,779,851  $15,232,993 
Senior secured notes (net of deferred financing costs of
$416,099 and $472,413, respectively)
 5,583,901   5,527,587 
Deferred origination fees 452,914   322,119 
Accounts payable and accrued expenses 132,582   151,823 
Operating lease liability 55,566   91,025 
Other liabilities ---   15,000 
Dividends payable ---   1,159,061 
Total liabilities 26,004,814   22,499,608 


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; 9,882,058 issued; 9,619,945 and 9,658,844
outstanding, respectively
 9,882   9,882 
Additional paid-in capital 33,153,830   33,144,032 
Treasury stock, at cost – 262,113 and 223,214 shares (798,939)  (619,688)
Retained earnings (accumulated deficit) 651,269   (590,808)
Total stockholders’ equity 33,016,042   31,943,418 
        
Total liabilities and stockholders’ equity$59,020,856  $54,443,026 



MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)

 Three Months Nine Months 
 Ended September 30,Ended September 30,
  2020 2019 2020  2019 
Interest income from loans$1,521,474$1,618,735$4,485,414 $4,608,936 
Origination fees 264,878 298,222 753,111  875,449 
Total revenue 1,786,352 1,916,957 5,238,525  5,484,385 
     
Operating costs and expenses:    
Interest and amortization of debt service
costs
 337,901 454,307 1,016,590  1,220,700 
Referral fees 1,641 861 3,569  3,569 
General and administrative
expenses
 305,407 314,820 968,914  913,175 
Total operating costs and expenses 644,949 769,988 1,989,073  2,137,444 
Income from operations 1,141,403 1,146,969 3,249,452  3,346,941 
Other income 9,500 3,000 15,500  9,000 
Income before income tax expense 1,150,903 1,149,969 3,264,952  3,355,941 
Income tax expense --- --- (645) (572)
Net income$1,150,903$1,149,969$3,264,307 $3,355,369 
     
Basic and diluted net income per common share outstanding:    
--Basic$0.12$0.12$0.34 $0.35 
--Diluted$0.12$0.12$0.34 $0.35 
     
Weighted average number of common shares outstanding    
--Basic 9,625,140 9,658,608 9,635,107  9,657,911 
--Diluted 9,625,140 9,659,764 9,635,107  9,659,012 


MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(unaudited)

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2020

 Common SharesAdditional Paid in CapitalTreasury StockRetained EarningsTotals
 SharesAmount SharesCost  
Balance, July 1, 20209,882,058$9,882$33,150,564255,213$(771,559)$ 463,050$ 32,851,937
Purchase of treasury shares   6,900 (27,380)  (27,380)
Non - cash compensation   3,266    3,266
Dividends paid      (962,684) (962,684)
Net income      1,150,903 1,150,903
Balance, September 30, 20209,882,058$9,882$33,153,830262,113$(798,939)$ 651,269$ 33,016,042

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2019

 Common SharesAdditional Paid in CapitalTreasury StockRetained EarningsTotals
 SharesAmount SharesCost  
Balance, July 1, 20199,881,191$9,881$33,137,501223,214$(619,688)$ 597,161$ 33,124,855
Exercise of warrants867 1 (1)    0
Non-cash compensation   3,266    3,266
Dividends paid      (1,158,957) (1,158,957)
Net income      1,149,969 1,149,969
Balance, September 30, 20199,882,058$9,882$33,140,766223,214$(619,688)$ 588,173$ 33,119,133

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020

 Common SharesAdditional Paid in CapitalTreasury StockAccumulated Deficit
(Retained Earnings)
Totals
 SharesAmount SharesCost  
Balance, January 1, 20209,882,058$9,882$33,144,032223,214$(619,688)$ (590,808)$ 31,943,418
Non-cash compensation   9,798    9,798
Purchase of treasury shares   38,899 (179,251)  (179,251)
Dividends paid      (2,022,230) (2,022,230)
Net income      3,264,307 3,264,307
Balance, September 30, 20209,882,058$9,882$33,153,830262,113$(798,939)$ 651,269$ 33,016,042

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019

 Common SharesAdditional Paid in CapitalTreasury StockAccumulated Deficit
(Retained Earnings)
Totals
 SharesAmount SharesCost  
Balance, January 1, 20199,874,191$9,874$33,110,536218,214$(590,234)$(448,801)$ 32,081,375
Exercise of options and warrants7,867 8 20,432    20,440
Purchase of treasury shares   5,000 (29,454)  (29,454)
Non-cash compensation   9,798    9,798
Dividends paid      (2,318,395) (2,318,395)
Net income      3,355,369 3,355,369
Balance, September 30, 20199,882,058$9,882$33,140,766223,214$(619,688)$ 588,173$ 33,119,133



MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)

Nine Months
Ended September 30,

   Nine Months 
   Ended September 30,     
 
    2020    2019 
Cash flows from operating activities:    
Net income $3,264,307  $3,355,369 
Adjustments to reconcile net income to net cash provided by
  operating activities -
    
Amortization of deferred financing costs  76,136   70,867 
Adjustment to operating lease right-of-use asset and liability  (333)  --- 
Depreciation  744   1,157 
Non-cash compensation expense  9,798   9,798 
Changes in operating assets and liabilities:    
Interest receivable on loans  (163,650)  (167,194)
Other assets  (35,156)  (26,209)
Accounts payable and accrued expenses  (19,241)  (19,134)
Deferred origination fees  130,795   (461)
Net cash provided by operating activities  3,263,400   3,224,193 
     
Cash flows from investing activities:    
Issuance of short term loans  (35,410,076)  (38,246,965)
Collections received from loans  31,041,693   33,375,420 
Release of loan holdback relating to mortgage receivable  (15,000)  --- 
Purchase of fixed assets  (923)  --- 
Net cash used in investing activities  (4,384,306)  (4,871,545)
     
Cash flows from financing activities:    
Proceeds from line of credit, net  4,546,858   5,241,895 
Dividends paid  (3,181,291)  (3,477,112)
Purchase of treasury shares  (179,251)  (29,454)
Deferred financing costs incurred  (27,102)  --- 
Proceeds from exercise of stock options  ---   20,440 
Net cash provided by financing activities  1,159,214   1,755,769 
     
Net increase in cash  38,308   108,417 
Cash, beginning of period  118,407   355,057 
Cash, end of period $156,715  $463,474 
     
Supplemental Cash Flow Information:    
Taxes paid during the period $645  $572 
Interest paid during the period $954,622  $1,144,425 
Operating leases paid during the period $40,973  $39,628 
     
Non-cash Investing Activities:    
Establishment of right-of-use asset and operating lease liability $---   $135,270 
Interest receivable converted to loans receivable in connection with forbearance agreements $29,671   $--- 
Loan holdback relating to mortgage receivable $---   $15,000