Manhattan Bridge Capital, Inc. Reports First Quarter Results for 2024
· Issued by Manhattan Bridge Capital, Inc via GlobeNewswire
GREAT NECK, N.Y., April 23, 2024 (GLOBE NEWSWIRE) --
Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that its net income for the three months ended March 31, 2024 was approximately $1,476,000, or $0.13 per share (based on approximately 11.4 million weighted-average outstanding common shares), compared to approximately $1,260,000, or $0.11 per share (based on approximately 11.5 million weighted-average outstanding common shares) for the three months ended March 31, 2023, an increase of $216,000, or 17.1%. This increase is primarily attributable to an increase in interest income from loans and a decrease in general and administrative expenses, partially offset by an increase in interest expense.
Total revenues for the three months ended March 31, 2024 were approximately $2,573,000 compared to approximately $2,398,000 for the three months ended March 31, 2023, an increase of $175,000, or 7.3%. The increase in revenue was due to higher interest rates charged on the Company’s commercial loans. For the three months ended March 31, 2024, approximately $2,142,000 of its revenue represents interest income on secured commercial loans that the Company offers to real estate investors, compared to approximately $1,954,000 for the same period in 2023, and approximately $431,000 and $444,000, respectively, represent origination fees on such loans. The loans are principally secured by collateral consisting of real estate and accompanied by personal guarantees from the principals of the borrowers.
As of March 31, 2024, total shareholders' equity was approximately $43,087,000.
Assaf Ran, Chairman of the Board and Chief Executive Officer of the Company, stated, “High interest rates are still the most common topic in the real estate investors community, as their impact is significant. Sales are lingering, refinance transactions are dragging, and existing adjustable-rate mortgages are becoming unaffordable for certain buildings. Additionally, construction costs increased to new records due to the higher-than-normal inflation. We’ve always been disciplined, conservative and careful, yet now is the time to be even stricter.”
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 SUBSIDIARYCONSOLIDATED BALANCE SHEETS
Assets
March 31, 2024(unaudited)
December 31, 2023(audited)
Loans receivable
$
72,596,149
$
73,048,403
Interest receivable on loans
1,514,836
1,395,905
Cash
87,097
104,222
Cash - restricted
311,545
1,587,773
Other assets
97,734
63,636
Operating lease right-of-use asset, net
193,650
207,364
Deferred financing costs, net
24,400
27,583
Total assets
$
74,825,411
$
76,434,886
Liabilities and Stockholders’ Equity
Liabilities:
Line of credit
$
23,450,677
$
25,152,338
Senior secured notes (net of deferred financing costs of $153,298 and $172,069, respectively)
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
45,552,142
45,548,876
Less: Treasury stock, at cost – 318,407 and 316,407 shares
(1,070,406)
(1,060,606)
Accumulated deficit
(1,406,555)
(1,567,321)
Total stockholders’ equity
43,086,938
42,932,706
Total liabilities and stockholders’ equity
$
74,825,411
$
76,434,886
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARYCONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
Three Months Ended March 31,
2024
2023
Revenue:
Interest income from loans
$
2,142,487
$
1,953,821
Origination fees
430,591
443,971
Total revenue
2,573,078
2,397,792
Operating costs and expenses:
Interest and amortization of deferred financing costs
690,589
646,263
Referral fees
500
291
General and administrative expenses
410,278
496,096
Total operating costs and expenses
1,101,367
1,142,650
Income from operations
1,471,711
1,255,142
Other income
4,500
4,500
Net income
$
1,476,211
$
1,259,642
Basic and diluted net income per common share outstanding:
--Basic
$
0.13
$
0.11
--Diluted
$
0.13
$
0.11
Weighted average number of common shares outstanding:
--Basic
11,438,673
11,494,945
--Diluted
11,438,673
11,494,945
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARYCONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY(unaudited)FOR THE THREE MONTHS ENDED MARCH 31, 2024
Common Shares
Additional Paid-inCapital
Treasury Stock
Accumulated Deficit
Totals
Shares
Amount
Shares
Cost
Balance, January 1, 2024
11,757,058
$11,757
$45,548,876
316,407
$(1,060,606
)
$(1,567,321
)
$ 42,932,706
Non-cash compensation
3,266
3,266
Purchase of treasury shares
2,000
(9,800
)
(9,800
)
Dividends declared and payable
(1,315,445
)
(1,315,445
)
Net income
________
________
________
________
________
1,476,211
1,476,211
Balance, March 31, 2024
11,757,058
$11,757
$45,552,142
318,407
$(1,070,406
)
$(1,406,555
)
$43,086,938
FOR THE THREE MONTHS ENDED MARCH 31, 2023
Common Shares
Additional Paid-inCapital
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
Non-cash compensation
3,266
3,266
Dividends declared and payable
(1,293,181
)
(1,293,181
)
Net income
________
________
________
________
________
1,259,642
1,259,642
Balance, March 31, 2023
11,757,058
$11,757
$45,539,077
262,113
$(798,939
)
$(1,918,595
)
$42,833,300
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARYCONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited)
Three Months Ended March 31,
2024
2023
Cash flows from operating activities:
Net income
$
1,476,211
$
1,259,642
Adjustments to reconcile net income to net cash provided by operating activities -
Amortization of deferred financing costs
21,954
27,540
Adjustment to operating lease right-of-use asset and liability
121
685
Depreciation
1,055
892
Non-cash compensation expense
3,266
3,266
Changes in operating assets and liabilities:
Interest receivable on loans
(118,931
)
104,455
Other assets
(35,153
)
(35,189
)
Accounts payable and accrued expenses
(31,600
)
(28,043
)
Deferred origination fees
(63,996
)
(18,272
)
Net cash provided by operating activities
1,252,927
1,314,976
Cash flows from investing activities:
Issuance of short-term loans
(9,650,271
)
(13,734,803
)
Collections received from loans
10,102,525
16,285,581
Purchase of fixed assets
---
(5,085
)
Net cash provided by investing activities
452,254
2,545,693
Cash flows from financing activities:
Repayment of line of credit, net
(1,701,661
)
(2,413,957
)
Dividend paid
(1,287,073
)
(1,436,868
)
Purchase of treasury shares
(9,800
)
---
Deferred financing costs incurred
---
(38,192
)
Net cash used in financing activities
(2,998,534
)
(3,889,017
)
Net decrease in cash
(1,293,353
)
(28,348
)
Cash and cash - restricted, beginning of period
1,691,995
103,540
Cash and cash - restricted, end of period
$
398,642
$
75,192
Supplemental Disclosure of Cash Flow Information
Cash paid during the period for interest
$
667,488
$
636,990
Cash paid during the period for operating leases
$
16,370
$
15,917
Supplemental Schedule of Noncash Financing Activities:
Dividend declared and payable
$
1,315,445
$
1,293,181
Loan holdback relating to mortgage receivable
$
---
$
17,500
The components of cash and cash - restricted are as follows:
Cash
$
87,097
$
75,192
Cash - restricted
$
311,545
$
---
Contact:
Assaf Ran, CEO
Vanessa Kao, CFO
(516) 444-3400
SOURCE: Manhattan Bridge Capital, Inc.
