Manhattan Bridge Capital, Inc. Reports Second Quarter 2024 Results

GREAT NECK, N.Y., July 22, 2024 (GLOBE NEWSWIRE) — Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) (the “Company”) announced today that its total revenues for the three months ended June 30, 2024 were approximately $2,443,000 compared to approximately $2,399,000 for the three months ended June 30, 2023, an increase of $44,000, or 1.8%. The increase in revenue was due to higher interest rates charged on the Company’s commercial loans, partially offset by a reduction in loans receivable, period over period, and reduced origination fees, which were impacted by a slowdown in new loan originations. For the three months ended June 30, 2024 and 2023, approximately $2,033,000 and $1,943,000, respectively, of the Company’s revenues were attributable to interest income on secured commercial loans that the Company offers to real estate investors, and approximately $411,000 and $457,000, respectively, of its revenues were attributable to 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.

Net income for the three months ended June 30, 2024 was approximately $1,409,000, or $0.12 per basic and diluted share (based on approximately 11.44 million weighted-average outstanding common shares), as compared to approximately $1,422,000, or $0.12 per basic and diluted share (based on approximately 11.48 million weighted-average outstanding common shares), for the three months ended June 30, 2023, a decrease of $13,000, or 0.9%.

Total revenues for the six months ended June 30, 2024 were approximately $5,016,000 compared to approximately $4,797,000 for the six months ended June 30, 2023, an increase of $219,000, or 4.6%. The increase in revenue was due to higher interest rates charged on the Company’s commercial loans, partially offset by a reduction in loans receivable, period over period, and reduced origination fees, which were impacted by a slowdown in new loan originations. For the six months ended June 30, 2024 and 2023, revenues of approximately $4,175,000 and $3,896,000, respectively, were attributable to interest income on secured commercial loans that the Company offers to real estate investors, and approximately $841,000 and $901,000, respectively, were attributable to 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.

Net income for the six months ended June 30, 2024 was approximately $2,885,000, or $0.25 per basic and diluted share (based on approximately 11.44 million weighted-average outstanding common shares), as compared to approximately $2,681,000, or $0.23 per basic and diluted share (based on approximately 11.49 million weighted-average outstanding common shares), for the six months ended June 30, 2023, an increase of $204,000, or 7.6%. This increase is primarily attributable to the increase in interest income from loans and the decrease in general and administrative expenses, partially offset by the increase in interest expense.

As of June 30, 2024, total stockholders’ equity was approximately $43,184,000.

Assaf Ran, Chairman of the Board and Chief Executive Officer of the Company, stated, “While real estate markets in our geographic areas of operations are still slow and heavy due to the high-interest-rate environment, it seems like prices of real estate properties are holding on and sometimes increasing due to lack of inventory and the impact of inflation. As always, we’re carefully monitoring our portfolio and cherry-picking good opportunities.”

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
CONSOLIDATED BALANCE SHEETS

 
  June 30, 2024   December 31, 2023
Assets  (unaudited)   (audited)
Loans receivable $ 66,859,733   $ 73,048,403
Interest and other fees receivable on loans   1,488,784     1,395,905
Cash           105,929     104,222
Cash – restricted       1,587,773
Other assets   134,321     63,636
Right-of-use asset – operating lease, net   180,446     207,364
Deferred financing costs, net   23,101     27,583
         Total assets $ 68,792,314   $ 76,434,886
Liabilities and Stockholders’ Equity      
Liabilities:      
Line of credit $ 17,345,510   $ 25,152,338
Senior secured notes (net of deferred financing costs of $134,528 and $172,069, respectively) 5,865,472   5,827,931
Deferred origination fees 646,027   719,019
Accounts payable and accrued expenses 242,248   295,292
Operating lease liability 193,800   220,527
Dividends payable 1,315,445   1,287,073
Total liabilities 25,608,502   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 45,555,408   45,548,876
Less: Treasury stock, at cost – 318,407 and 316,407 shares, respectively   (1,070,406 )   (1,060,606)
Accumulated deficit   (1,312,947 )   (1,567,321)
Total stockholders’ equity 43,183,812   42,932,706
Total liabilities and stockholders’ equity $ 68,792,314   $

76,434,886

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)

  Three Months
Ended June 30,
Six Months
Ended June 30,
    2024     2023     2024     2023  
Revenue:
Interest income from loans

$

2,032,687

 

$

1,942,527

 

$

4,175,174

 

$

3,896,349

 
Origination fees   410,528     456,835     841,119     900,806  
Total revenue   2,443,215     2,399,362     5,016,293     4,797,155  
         
Operating costs and expenses:        
Interest and amortization of deferred financing costs  

603,230

   

595,427

   

1,293,819

   

1,241,690

 
Referral fees   500     1,000     1,000     1,292  
General and administrative expenses   434,282     400,979     844,560     897,075  
Total operating costs and expenses   1,038,012     997,406     2,139,379     2,140,057  
Income from operations   1,405,203     1,401,956     2,876,914     2,657,098  
Other income   4,500     20,380     9,000     24,880  
Income before income tax expense   1,409,703     1,422,336     2,885,914     2,681,978  
Income tax expense   (650 )   (650 )   (650 )   (650 )
Net income $ 1,409,053   $ 1,421,686   $ 2,885,264   $ 2,681,328  
         
Basic and diluted net income per common share outstanding:        
–Basic $ 0.12   $ 0.12   $ 0.25   $ 0.23  
–Diluted $ 0.12   $ 0.12   $ 0.25   $ 0.23  
         
Weighted average number of common shares outstanding:        
–Basic   11,438,651     11,475,406     11,438,662     11,485,116  
–Diluted   11,438,651     11,475,406     11,438,662     11,485,116  
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(unaudited)

FOR THE THREE MONTHS ENDED JUNE 30, 2024

  Common Shares Additional Paid in Capital Treasury Stock Accumulated Deficit Totals
  Shares Amount   Shares Cost    
Balance, April 1, 2024 11,757,058 $11,757 $45,552,142 318,407 $(1,070,406 ) $(1,406,555 ) $43,086,938  
Non – cash compensation     3,266       3,266  
Dividends declared and payable           (1,315,445 ) (1,315,445 )
Net income           1,409,053   1,409,053  
Balance, June 30, 2024 11,757,058 $11,757 $45,555,408 318,407 $(1,070,406 ) $(1,312,947 ) $43,183,812  

FOR THE THREE MONTHS ENDED JUNE 30, 2024
  Common Shares Additional Paid in Capital Treasury Stock Accumulated Deficit Totals
  Shares Amount   Shares Cost    
Balance, April 1, 2023 11,757,058 $11,757 $45,539,077 262,113 $(798,939 ) $(1,918,595 ) $42,833,300  
Purchase of treasury shares       33,360 (164,806 )   (164,806 )
Non – cash compensation     3,266       3,266  
Dividends declared and payable           (1,289,428 ) (1,289,428 )
Net income           1,421,686   1,421,686  
Balance, June 30, 2024 11,757,058 $11,757 $45,542,343 295,473 $(963,745 ) $(1,786,337 ) $42,804,018  

FOR THE SIX MONTHS ENDED JUNE 30, 2024
  Common Shares Additional Paid in Capital 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  
Purchase of treasury shares       2,000 (9,800 )   (9,800 )
Non – cash compensation     6,532       6,532  
Dividends paid           (1,315,445 ) (1,315,445 )
Dividends declared and payable           (1,315,445 ) (1,315,445 )
Net income           2,885,264   2,885,264  
Balance, June 30, 2024 11,757,058 $11,757 $45,555,408 318,407 $(1,070,406 ) $(1,312,947 ) $43,183,812  

FOR THE SIX MONTHS ENDED JUNE 30, 2024
  Common Shares Additional Paid in Capital 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       33,360 (164,806 )   (164,806 )
Non – cash compensation     6,532       6,532  
Dividends paid           (1,293,181 ) (1,293,181 )
Dividends declared and payable           (1,289,428 ) (1,289,428 )
Net income           2,681,328   2,681,328  
Balance, June 30, 2024 11,757,058 $11,757 $45,542,343 295,473 $(963,745 ) $(1,786,337 ) $42,804,018  
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
 
    Six Months
Ended June 30,
 
    2024   2023  
Cash flows from operating activities:          
Net income   $ 2,885,264     $ 2,681,328  
Adjustments to reconcile net income to net cash provided by operating activities –              
Amortization of deferred financing costs     44,191     49,494  
Adjustment to right-of-use asset – operating lease and liability     190     1,230  
Depreciation     2,209     1,946  
Non-cash compensation expense     6,532     6,532  
Changes in operating assets and liabilities:              
Interest and other fees receivable on loans   (92,879 )   89,214  
Other assets   (71,703 )   (72,115 )
Accounts payable and accrued expenses   (53,044 )   (58,132 )
Deferred origination fees   (72,992 )   17,853  
Net cash provided by operating activities     2,647,768     2,717,350  
           
Cash flows from investing activities:          
Issuance of short-term loans   (19,677,520 )   (28,122,249 )
Collections received from loans     25,866,190     32,811,877  
Purchase of fixed assets   (1,191 )   (5,085 )
Net cash provided by investing activities     6,187,479     4,684,543  
           
Cash flows from financing activities:          
Repayment of line of credit, net   (7,806,828 )   (4,323,513 )
Dividends paid   (2,602,518 )   (2,730,049 )
Purchase of treasury shares   (9,800 )   (164,806 )
Deferred financing costs incurred   (2,167 )   (38,191 )
Net cash used in financing activities   (10,421,313 )   (7,256,559 )
           
Net (decrease) increase in cash   (1,586,066 )   145,334  
Cash and cash – restricted, beginning of period*     1,691,995     103,540  
Cash, end of period   $         105,929     $         248,874  
               
Supplemental Disclosure of Cash Flow Information:              
Cash paid during the period for taxes   $ 650     $ 650  
Cash paid during the period for interest   $ 1,297,587     $ 1,215,297  
Cash paid during the period for operating leases   $ 32,208     $ 31,863  
Supplemental Schedule of Noncash Financing Activities:              
Dividend declared and payable   $ 1,315,445     $ 1,289,428  
Loan holdback relating to mortgage receivable       $ 17,500  

*At December 31, 2023, cash and restricted cash consisted of $1,587,773 of restricted cash.


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