Manhattan Bridge Capital, Inc. Reports Results for 2016

GREAT NECK, N.Y., March 15, 2017 (GLOBE NEWSWIRE) — Manhattan Bridge Capital, Inc. (NASDAQ:LOAN) announced today that net income for the year ended December 31, 2016 was approximately $2,837,000, or $0.37 per share (based on approximately 7.6 million weighted-average outstanding common shares), versus approximately $2,238,000, or $0.33 per share (based on approximately 6.8 million weighted-average outstanding common shares) for the year ended December 31, 2015. 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, 2016 was approximately $4,649,000 compared to approximately $4,001,000 for the year ended December 31, 2015, an increase of $648,000 or 16.2%. The increase in revenue represents an increase in lending operations. In 2016, approximately $3,845,000 of the Company’s revenue represents interest income on secured, commercial loans that the Company offers to small businesses compared to approximately $3,356,000 in 2015, and approximately $803,000 represents origination fees on such loans compared to approximately $645,000 in 2015.

Total operating costs and expenses for the year ended December 31, 2016 were approximately $1,794,000 compared to approximately $1,733,000 for the year ended December 31, 2015, an increase of $61,000, or 4%. The increase in operating costs and expenses is primarily attributable to an increase in interest and amortization of deferred financing costs resulting from the issuance of senior secured notes by the Company’s wholly-owned subsidiary, MBC Funding II Corp.

Assaf Ran, Chairman of the Board and CEO, stated, “2016 was a year of action and achievement of challenges. We completed a 6% 10-year bond offering through our wholly owned subsidiary, MBC Funding II Corp., executed an equity offering of our common stock at $5.95 per share, and redeployed an unprecedented amount of approximately $33 million of returned loans. It was also another year of setting revenue and net earnings records while maintaining our NO DEFAULTS standard. As we look forward to continued success in 2017, we commit 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 in the New York metropolitan area. We operate the web site: http://www.manhattanbridgecapital.com

Forward Looking Statements

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 Real Estate Investment Trust (“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 limited 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 press release, including the information set forth under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016 filed with the Securities and Exchange Commission, identifies 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 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
DECEMBER 31, 2016 AND 2015
     
    2016     2015  
     
Assets    
Current assets:    
Cash and cash equivalents $ 96,299   $ 106,836  
Short term loans receivable   27,495,500     20,199,000  
Interest receivable on loans   346,519     382,572  
Other current assets   29,397     32,865  
Total current assets   27,967,715     20,721,273  
     
Long term loans receivable   7,259,820     10,705,040  
Property and equipment, net   7,980     8,771  
Security deposit   6,816     6,816  
Investment in privately held company   35,000     50,000  
Deferred financing costs   56,193     164,510  
             
Total assets $ 35,333,524   $ 31,656,410  
     
Liabilities and Stockholders’ Equity    
Current liabilities:    
Line of credit $ 6,482,848   $ 11,821,099  
Short term loans       1,095,620  
Accounts payable and accrued expenses   105,541     99,643  
Deferred origination fees   315,411     279,682  
Dividends payable   813,503     617,443  
Total current liabilities   7,717,303     13,913,487  
Long term liabilities:    
Senior secured notes (net of deferred financing costs of $ 697,669)   5,302,331      
Total liabilities   13,019,634     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; 8,312,036 and 7,441,039 issued; 8,135,036 and 7,264,039 outstanding   8,312     7,441  
Additional paid-in capital   23,134,013     18,500,524  
Treasury stock, at cost – 177,000   (369,335 )   (369,335 )
Accumulated deficit   (459,100 )   (395,707 )
Total stockholders’ equity   22,313,890     17,742,923  
     
Total liabilities and stockholders’ equity $ 35,333,524   $ 31,656,410  
     

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES  
CONSOLIDATED STATEMENTS OF OPERATIONS  
FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015  
   
    2016       2015  
               
Interest income from loans $ 3,845,091     $ 3,355,920  
Origination fees   803,469       644,706  
Total Revenue   4,648,560       4,000,626  
Operating costs and expenses:      
Interest and amortization of deferred financing costs   780,119       691,392  
Referral fees   8,682       2,356  
General and administrative expenses   1,005,653       1,038,849  
Total operating costs and expenses   1,794,454       1,732,597  
       
Income from operations   2,854,106       2,268,029  
       
Impairment loss on property and equipment         (13,863 )
Loss on write-down of investment in privately held company   (15,000 )     (15,000 )
Total other loss   (15,000 )     (28,863 )
       
Income before income tax expense   2,839,106       2,239,166  
Income tax expense   (2,146 )     (1,595 )
Net income $ 2,836,960     $ 2,237,571  
       
Basic and diluted net income per common share outstanding:      
–Basic $ 0.37     $ 0.33  
–Diluted $ 0.37     $ 0.33  
       
Weighted average number of common shares outstanding      
–Basic   7,590,114       6,759,219  
–Diluted   7,608,201       6,786,610  
               

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015
 
  Common Stock Additional Paid-in
Capital
Treasury Stock (Accumulated
Deficit) /
Retained
Earnings
Totals
           
  Shares Amount   Shares Cost    
Balance, January 1, 2015 6,260,689 $6,260 $14,116,183 177,000 $(369,335)   $113,346   $13,866,454  
Non cash compensation       13,664         13,664  
Exercise of stock options 40,000   40   61,150         61,190  
Exercise of warrants 20,350   21   73,449         73,470  
Public offering 1,120,000   1,120   4,236,078         4,237,198  
Dividends paid             (2,129,181)     (2,129,181)  
Dividends declared and payable             (617,443)     (617,443)  
Net income for the year ended December 31, 2015             2,237,571     2,237,571  
Balance, December 31, 2015 7,441,039   7,441   18,500,524 177,000   (369,335)     (395,707)       17,742,923  
Non cash compensation       13,589         13,589  
Exercise of warrants 97,888   98   409,687         409,785  
Public offerings 773,109   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, 206             2,836,960     2,836,960  
Balance, December 31, 2016 8,312,036 $8,312 $23,134,013 177,000 $(369,335)   $(459,100)   $22,313,890  

MANHATTAN BRIDGE CAPITAL, INC.  AND SUBSIDIARIES  
CONSOLIDATED STATEMENTS OF CASH FLOWS  
FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015  
   
    2016       2015  
Cash flows from operating activities:              
Net income $ 2,836,960     $ 2,237,571  
Adjustments to reconcile net income to net cash provided by operating activities –      
Amortization of deferred financing costs   101,351       39,542  
Depreciation   3,810       5,714  
Non cash compensation expense   13,589       13,664  
Impairment loss on property and equipment         13,863  
Loss on write-down of investment in privately held company   15,000       15,000  
Changes in operating assets and liabilities      
Interest receivable on loans   36,053       (168,806 )
Other current and non current assets   3,468       (5,871 )
Accounts payable and accrued expenses   5,898       (63,979 )
Deferred origination fees   35,729       34,906  
Net cash provided by operating activities   3,051,858       2,121,604  
       
Cash flows from investing activities:      
Issuance of short term loans   (36,657,000 )     (21,609,000 )
Collections received from loans   32,805,720       14,737,436  
Purchase of fixed assets   (3,019 )     (9,260 )
Net cash used in investing activities   (3,854,299 )     (6,880,824 )
       
Cash flows from financing activities:      
(Repayments of) proceeds from lines of credit, net   (5,338,251 )     4,121,099  
Repayments of loans, net   (1,095,620 )     (1,373,845 )
Proceeds from exercise of stock options and warrants   409,785       134,660  
Proceeds from public stock offering, net   4,210,986       4,237,198  
Proceeds from public bond offering, net   5,309,297        
Dividends paid   (2,704,293 )     (2,129,181 )
Deferred financing costs incurred         (171,551 )
Net cash provided by financing activities   791,904       4,818,380  
       
Net (decrease) increase in cash and cash equivalents   (10,537 )     59,160  
Cash and cash equivalents, beginning of year   106,836       47,676  
Cash and cash equivalents, end of year $ 96,299     $ 106,836  
       
       
Supplemental Cash Flow Information:      
Taxes paid during the year $ 1 ,948     $ 56  
Interest paid during the year $ 691,581     $ 596,187  
       
Supplement Information – Noncash Information:       
Dividend declared and payable $ 813,503     $ 617,443  
               

CONTACT: Contact:
Assaf Ran, CEO
Vanessa Kao, CFO
(516) 444-3400

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