Manhattan Bridge Capital, Inc. Reports Second Quarter 2024 Results

By: Manhattan Bridge Capital, Inc. via GlobeNewswire

July 22, 2024 at 07:05 AM EDT

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.

Contact:
Assaf Ran, CEO
Vanessa Kao, CFO
(516) 444-3400
SOURCE: Manhattan Bridge Capital, Inc.

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Manhattan Bridge Capital, Inc. Reports Second Quarter 2024 Results

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