Manhattan Bridge Capital, Inc. Reports Results for 2017

GREAT NECK, N.Y., March 19, 2018 (GLOBE NEWSWIRE) —

Manhattan Bridge Capital, Inc. (NASDAQ:) announced today that net income for the year ended December 31, 2017 was approximately $3,439,000, or $0.42 per share (based on approximately 8.1 million weighted-average outstanding common shares), versus approximately $2,837,000, or $0.37 per share (based on approximately 7.6 million weighted-average outstanding common shares), for the year ended December 31, 2016, an increase of $602,000 or 21.2%. This increase in net income was mainly due to an increase in operating income as a result of increased lending activity.  

Total revenue for the year ended December 31, 2017 was approximately $5,919,000 compared to approximately $4,649,000 for the year ended December 31, 2016, an increase of $1,270,000 or 27.3%. The increase in revenue represents an increase in lending operations. In 2017, approximately $5,016,000 of the Company’s revenue represents interest income on secured, commercial loans that the Company offers to small businesses compared to approximately $3,845,000 in 2016, and approximately $903,000 represents origination fees on such loans compared to approximately $804,000 in 2016.

Total operating costs and expenses for the year ended December 31, 2017 were approximately $2,457,000 compared to approximately $1,794,000 for the year ended December 31, 2016, an increase of $663,000 or 37.0%. The increase in operating costs and expenses is primarily attributable to an increase in interest and amortization of deferred financing costs resulting from the Company’s use of a line of credit and the issuance in 2016 of senior secured notes by the Company’s wholly-owned subsidiary in order to increase its ability to make loans.

Assaf Ran, Chairman of the Board and CEO, stated, “During the year 2017 we’ve continued to demonstrate controlled and responsible growth, while maintaining our impressive track record of no defaults. In August 2017, the Company increased its bank line of credit from $14 million to $20 million. This allowed us to further increase our loan portfolio and set new Company records for both revenue and net earnings. As a REIT, the increased earnings allowed us to increase the cash dividend we pay stockholders once again, to $.12 per share quarterly. As we look forward to continued success in 2018, we are committed to disciplined underwriting in order to prepare for a possible slowing economy.”

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 around the New York metropolitan area. We operate the web site:

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 state that we offer increased dividends and growth and success in 2018 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 loan portfolio is illiquid; (vii) our due diligence may not uncover all of a borrower’s liabilities or other risks to its business; (viii) borrower concentration could lead to significant losses; (ix) our management has limited experience managing a real estate investment trust; and (x) 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 risk factors contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2017 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 SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2017 AND 2016     Assets2017

  2016

  Loans receivable$45,124,000  $34,755,320  Interest receivable on loans 535,045   346,519  Cash and cash equivalents  136,441   96,299  Deferred financing costs 45,269   56,193  Other assets 55,941   79,193  Total assets$45,896,696  $35,333,524           Liabilities and Stockholders’ Equity        Liabilities:        Line of credit$  16,914,594  $  6,482,848  Senior secured notes (net of deferred financing costs of $622,584 and $697,669)  5,377,416    5,302,331  Deferred origination fees 298,471   315,411  Accounts payable and accrued expenses 167,559   105,541  Dividends payable 891,983   813,503  Total liabilities 23,650,023   13,019,634       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 authorized;
     8,319,036 and 8,312,036 issued; 8,108,934 and  
     8,135,036 outstanding  

8,319    

8,312  Additional paid-in capital 23,167,511   23,134,013  Treasury stock, at cost – 210,102 and 177,000 shares (541,491)  (369,335) Accumulated deficit (387,666)  (459,100) Total stockholders’ equity 22,246,673   22,313,890           Total liabilities and stockholders’ equity$ 45,896,696  $35,333,524  

 MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2017 AND 2016     2017
     2016
         Interest income from loans$ 5,015,987  $ 3,845,091 Origination fees 902,950   803,469 Total Revenue 5,918,937   4,648,560     Operating costs and expenses:   Interest and amortization of deferred financing costs 1,226,728   780,119 Referral fees 3,701   8,682 General and administrative expenses 1,227,003   1,005,653 Total operating costs and expenses 2,457,432   1,794,454     Income from operations 3,461,505   2,854,106 Loss on write-down of investment in privately held
  company (20,000)  (15,000)Income before income tax expense 3,441,505   2,839,106 Income tax expense    (2,971)    (2,146)Net income$  3,438,534  $  2,836,960     Basic and diluted net income per common share outstanding:   –Basic$0.42  $0.37 –Diluted
$0.42  $0.37     Weighted average number of common shares outstanding    –Basic  8,117,280   7,590,114 –Diluted 8,128,685   7,608,201 

                                  

 MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2017 AND 2016  Common StockAdditional
Paid-in

CapitalTreasury StockAccumulated
Deficit
Totals          SharesAmount  SharesCost  Balance, January 1, 20167,441,039 $7,441 $18,500,524 177,000 $(369,335)$(395,707)  $17,742,923 Non cash compensation    13,589     13,589 Exercise of warrants97,888 98 409,687     409,785 Public offerings773,109 773 4,210,213     4,210,986 Dividends paid          (2,086,850)(2,086,850)Dividends declared and payable         (813,503)(813,503)Net income for the year ended December 31, 2016         2,836,960 2,836,960 Balance, December 31, 20168,312,036 8,312 23,134,013 177,000 (369,335)(459,100)  22,313,890 Non cash compensation    13,065     13,065 Purchase of treasury shares      33,102 (172,156) (172,156)Exercise of options7,000 7 20,433     20,440 Dividends paid          (2,475,117)(2,475,117)Dividends declared and payable         (891,983)(891,983)Net income for the year ended December 31, 2017         3,438,534 3,438,534 Balance, December 31, 20178,319,036 $8,319 $23,167,511 210,102 $(541,491)$(387,666) $22,246,673 

  MANHATTAN BRIDGE CAPITAL, INC.  AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2017 AND 2016     2017   2016 Cash flows from operating activities:       Net income $ 3,438,534  $  2,836,960 Adjustments to reconcile net income to net cash provided by operating activities –   Amortization of deferred financing costs 129,131   101,351 Depreciation 4,595   3,810 Non cash compensation expense 13,065   13,589 Loss on write-down of investment in privately held company   20,000     15,000 Changes in operating assets and liabilities    Interest receivable on loans (188,526)  36,053 Other current and non current assets 323   3,468 Accounts payable and accrued expenses 62,019   5,898 Deferred origination fees (16,940)  35,729 Net cash provided by operating activities 3,462,201   3,051,858     Cash flows from investing activities:   Issuance of short term loans   (37,871,500)    (36,657,000)Collections received from loans   27,502,820     32,805,720 Purchase of fixed assets   (1,666)    (3,019)Net cash used in investing activities (10,370,346)  (3,854,299)    Cash flows from financing activities:   Proceeds from (repayments of) line of credit, net 10,431,746   (5,338,251)Repayments of short-term loans, net —   (1,095,620)Proceeds from public stock offering, net —   4,210,986 Proceeds from public bond offering, net —   5,309,297 Dividends paid (3,288,621)  (2,704,293)Purchase of treasury shares (172,156)  — Deferred financing costs incurred  (43,122)  — Proceeds from exercise of stock options and warrants 20,440   409,785 Net cash provided by financing activities 6,948,287   791,904     Net increase (decrease) in cash and cash equivalents 40,142   (10,537)Cash and cash equivalents, beginning of year 96,299   106,836 Cash and cash equivalents, end of year$  136,441  $  96,299         Supplemental Cash Flow Information:   Taxes paid during the year$    2,971  $    1 ,948 Interest paid during the year$ 1,034,097  $  691,581     Supplement Information – Noncash Information: 
Dividend declared and payable$  891,983  $813,503 

SOURCE: Manhattan Bridge Capital, Inc.  

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