GREAT NECK, N.Y., March 12, 2025 (GLOBE NEWSWIRE) --
Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) (the “Company”) announced today that net income for the year ended December 31, 2024 was approximately $5,591,000, or $0.49 per share (based on approximately 11.4 million weighted-average outstanding common shares), versus approximately $5,476,000, or $0.48 per share (based on approximately 11.5 million weighted-average outstanding common shares) for the year ended December 31, 2023, an increase of $115,000, or 2.1%. This increase is primarily attributable to a decrease in interest expense, partially offset by a decrease in origination fees.
Total revenue for the year ended December 31, 2024, was approximately $9,689,000, compared to approximately $9,796,000 for the year ended December 31, 2023, a decrease of $107,000, or 1.1%. The decrease in revenue was due to a reduction in loans receivable, period over period, and reduced origination fees, which were impacted by a slowdown in new loan originations, partially offset by higher interest rates charged on the Company’s commercial loans. In 2024, approximately $8,047,000 of the Company’s revenue represents interest income on secured, real estate loans that the Company offers to real estate investors, compared to approximately $7,976,000 in 2023, and approximately $1,642,000 represents origination fees on such loans, compared to approximately $1,820,000 in 2023. The loans are principally secured by collateral consisting of real estate and accompanied by personal guarantees from the principals of the borrowers.
Total operating costs and expenses for the year ended December 31, 2024 were approximately $4,115,000, compared to approximately $4,353,000 for the year ended December 31, 2023, a decrease of $238,000, or 5.5%. The decrease in operating costs and expenses was primarily attributable to a decrease in interest expense due to a reduction in amounts borrowed relating to the use of the Company’s credit line, and a reduction in the special bonus to its officers.
As of December 31, 2024, total shareholders' equity was approximately $43,265,000, compared to approximately $42,933,000 as of December 31, 2023.
Assaf Ran, Chairman of the Board and Chief Executive Officer of the Company, stated, “2024 was a risky and ultra challenging year for real estate lenders. The lingering high-interest rate environment weighs down on real estate investors' (our borrowers’) liquidity and profitability. Furthermore, the difference in interest rates between hard money lenders and conventional banks is not always significant enough to make refinancing a viable exit strategy for our loans.”
“During 2024, our underwriting and operational policies were tested like never before and we passed. I hope for continuous passing and a smooth 2025,” 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, including New Jersey and Connecticut, and in Florida. We operate the website: https://www.manhattanbridgecapital.com.
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY | |||
2024 | 2023 | ||
Assets | |||
Loans receivable | $ 65,974,265 | $ 73,048,403 | |
Interest and other fees receivable on loans | 1,521,033 | 1,395,905 | |
Cash | 178,012 | 104,222 | |
Cash - restricted | 23,750 | 1,587,773 | |
Other assets | 62,080 | 63,636 | |
Right-of-use asset - operating lease, net | 154,039 | 207,364 | |
Deferred financing costs, net | 16,171 | 27,583 | |
Total assets | $ 67,929,350 | $ 76,434,886 | |
Liabilities and Stockholders' Equity | |||
Liabilities: | |||
Line of credit | $ 16,427,874 | $ 25,152,338 | |
Senior secured notes (net of deferred financing costs of $96,985 and $172,069, respectively) | 5,903,015 | 5,827,931 | |
Deferred origination fees | 568,534 | 719,019 | |
Accounts payable and accrued expenses | 232,236 | 295,292 | |
Operating lease liability | 167,119 | 220,527 | |
Loan holdback | 50,000 | --- | |
Dividends payable | 1,315,445 | 1,287,073 | |
Total liabilities | 24,664,223 | 33,502,180 | |
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; 11,757,058 issued; 11,438,651 and 11,440,651 outstanding, respectively | 11,757 | 11,757 | |
Additional paid-in capital | 45,561,941 | 45,548,876 | |
Less: Treasury stock, at cost - 318,407 and 316,407 shares | (1,070,406) | (1,060,606) | |
Accumulated deficit | (1,238,165) | (1,567,321) | |
Total stockholders' equity | 43,265,127 | 42,932,706 | |
Total liabilities and stockholders' equity | $ 67,929,350 | $ 76,434,886 | |
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY | |||||||
2024 | 2023 | ||||||
Revenue: | |||||||
Interest income from loans | $ 8,046,560 | $ 7,976,232 | |||||
Origination fees | 1,642,081 | 1,820,024 | |||||
Total Revenue | 9,688,641 | 9,796,256 | |||||
Operating costs and expenses: | |||||||
Interest and amortization of deferred financing costs | 2,337,032 | 2,525,935 | |||||
Referral fees | 1,847 | 2,153 | |||||
General and administrative expenses | 1,776,176 | 1,825,227 | |||||
Total operating costs and expenses | 4,115,055 | 4,353,315 | |||||
Income from operations | 5,573,586 | 5,442,941 | |||||
Other income | 18,000 | 33,880 | |||||
Income before income tax expense | 5,591,586 | 5,476,821 | |||||
Income tax expense | (650 | ) | (650 | ) | |||
Net income | $ 5,590,936 | $ 5,476,171 | |||||
Basic and diluted net income per common share outstanding: | |||||||
--Basic | $0.49 | $0.48 | |||||
--Diluted | $0.49 | $0.48 | |||||
Weighted average number of common shares outstanding | |||||||
--Basic | 11,438,656 | 11,469,741 | |||||
--Diluted | 11,438,656 | 11,469,741 | |||||
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY | ||||||||||
Common Stock | Additional Paid-in | Treasury Stock | Accumulated Deficit | Totals | ||||||
Shares | Amount | Shares | Cost | |||||||
Balance, January 1, 2023 | 11,757,058 | $11,757 | $45,535,811 | 262,113 | $(798,939 | ) | $(1,885,056 | ) | $42,863,573 | |
Purchase of treasury shares | 54,294 | (261,667 | ) | (261,667 | ) | |||||
Non-cash compensation | 13,065 | 13,065 | ||||||||
Dividends paid | (3,871,363 | ) | (3,871,363 | ) | ||||||
Dividends declared and payable | (1,287,073 | ) | (1,287,073 | ) | ||||||
Net income for the year ended December 31, 2023 | __________ | __________ | __________ | __________ | __________ | 5,476,171 | 5,476,171 | |||
Balance, December 31, 2023 | 11,757,058 | 11,757 | 45,548,876 | 316,407 | (1,060,606 | ) | (1,567,321 | ) | 42,932,706 | |
Purchase of treasury shares | 2,000 | (9,800 | ) | (9,800 | ) | |||||
Non-cash compensation | 13,065 | 13,065 | ||||||||
Dividends paid | (3,946,335 | ) | (3,946,335 | ) | ||||||
Dividends declared and payable | (1,315,445 | ) | (1,315,445 | ) | ||||||
Net income for the year ended December 31, 2024 | __________ | __________ | __________ | __________ | __________ | 5,590,936 | 5,590,936 | |||
Balance, December 31, 2024 | 11,757,058 | $11,757 | $45,561,941 | 318,407 | $(1,070,406 | ) | $(1,238,165 | ) | $43,265,127 | |
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY | |||||||
2024 | 2023 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 5,590,936 | $ | 5,476,171 | |||
Adjustments to reconcile net income to net cash provided by operating activities - | |||||||
Amortization of deferred financing costs | 88,664 | 93,403 | |||||
Depreciation | 4,870 | 4,057 | |||||
Non-cash compensation expense | 13,065 | 13,065 | |||||
Adjustment to right-of-use asset - operating lease and liability | (84 | ) | 1,900 | ||||
Changes in operating assets and liabilities: | |||||||
Interest and other fees receivable on loans | (552,755 | ) | (245,868 | ) | |||
Other assets | 705 | (3,042 | ) | ||||
Accounts payable and accrued expenses | (63,057 | ) | 5,424 | ||||
Deferred origination fees | (150,485 | ) | 49,891 | ||||
Net cash provided by operating activities | 4,931,859 | 5,395,001 | |||||
Cash flows from investing activities: | |||||||
Issuance of short-term loans | (41,538,217 | ) | (56,087,911 | ) | |||
Collections received from loans | 49,089,982 | 57,736,436 | |||||
Purchase of fixed assets | (4,018 | ) | (5,085 | ) | |||
Net cash provided by investing activities | 7,547,747 | 1,643,440 | |||||
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(Repayment of) proceeds from line of credit, net | (8,724,464 | ) | 158,104 | ||||
Dividends paid | (5,233,408 | ) | (5,308,231 | ) | |||
Purchase of treasury shares | (9,800 | ) | (261,667 | ) | |||
Deferred financing costs incurred | (2,167 | ) | (38,192 | ) | |||
Net cash used in financing activities | (13,969,839 | ) | (5,449,986 | ) | |||
Net (decrease) increase in cash and restricted cash | (1,490,233 | ) | 1,588,455 | ||||
Cash and restricted cash, beginning of year* | 1,691,995 | 103,540 | |||||
Cash and restricted cash, end of year* | $ | 201,762 | $ | 1,691,995 | |||
Supplemental Disclosure of Cash Flow Information: | |||||||
Cash paid during the period for taxes | $ | 650 | $ | 650 | |||
Cash paid during the period for interest | $ | 2,323,520 | $ | 2,423,838 | |||
Cash paid during the period for operating leases | $ | 63,084 | $ | 64,055 | |||
Supplemental Schedule of Noncash Financing Activities: |
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Loan holdback relating to mortgage receivable | $ | 50,000 | $ | --- | |||
Supplemental Schedule of Noncash Operating and Investing Activities: | |||||||
Reduction in interest receivable in connection with the increase in loans receivable | $ | 427,627 | $ | 213,465 | |||
* At December 31, 2024 and 2023, cash and restricted cash included $23,750 and $1,587,773, respectively, of restricted cash.
CONTACT: Contact: Assaf Ran, CEO Vanessa Kao, CFO (516) 444-3400 SOURCE: Manhattan Bridge Capital, Inc.