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