Manhattan Bridge Capital, Inc. Reports Results for 2020

March 11, 2021 7:05 AM EST

News and research before you hear about it on CNBC and others. Claim your 1-week free trial to StreetInsider Premium here.

GREAT NECK, N.Y., March 11, 2021 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (NASDAQ: LOAN) announced today that net income for the year ended December 31, 2020 was approximately $4,229,000, or $0.44 per share (based on approximately 9.6 million weighted-average outstanding common shares), versus approximately $4,495,000, or $0.47 per share (based on approximately 9.7 million weighted-average outstanding common shares) for the year ended December 31, 2019, a decrease of $266,000, or 5.9%. This decrease is primarily attributable to a decrease in revenue, partially offset by a decrease in interest expense.

Total revenue for the year ended December 31, 2020 was approximately $7,006,000 compared to approximately $7,340,000 for the year ended December 31, 2019, a decrease of $334,000, or 4.6%. The decrease in revenue was primarily attributable to lower interest rates and origination fees charged on loans due to market conditions and intense competition from other lenders, as well as lower demand for new loans resulting from the COVID-19 pandemic. In 2020, approximately $5,989,000 of our revenue represents interest income on secured, real estate loans that we offer to small businesses compared to approximately $6,186,000 in 2019, and approximately $1,018,000 represents origination fees on such loans, compared to approximately $1,154,000 in 2019. The loans are principally secured by collateral consisting of real estate and, generally, accompanied by personal guarantees from the principals of the borrowers.

Total operating costs and expenses for the year ended December 31, 2020 were approximately $2,796,000 compared to approximately $2,842,000 for the year ended December 31, 2019, a decrease of $46,000 or 1.6%. The decrease in operating costs and expenses is primarily attributable to decreased interest expense due to lower LIBOR rates and decreases in travel expense, advertising fees and appraisal fees, offset by increases in payroll expenses and compensation to members of our board of directors, as well as an annual bonus paid to officers in 2020 and a voluntary waiver from the Company’s CEO forgoing his base salary for the months of November and December 2019.

As of December 31, 2020, total shareholders' equity was approximately $31,964,000 compared to approximately $31,943,000 as of December 31, 2019.

Assaf Ran, Chairman of the Board and CEO, stated, “I’m pleased that we have managed to continue our track record of zero defaults since inception through another major crisis. During March and April of 2020, the marketplace experienced panic and hysteria. Yet, we kept our portfolio under control, we paid dividends on a regular schedule and we instituted another stock buy-back program. I believe that our performance during the challenges related to COVID-19 during 2020 demonstrates responsible underwriting, lower risk versus many of our peers and management’s commitment to provide shareholder value even in rough times,” added Mr. Ran.

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.

Forward Looking Statements

This press release and the statements of our representatives related thereto contain or may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the generality of the foregoing, words such as “plan,” “project,” “potential,” “seek,” “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “could,” “estimate,” or “continue” are intended to identify forward-looking statements. For example, when we discuss our underwriting, lower risk and shareholder value, we are using forward-looking statements. Readers are cautioned that certain important factors may affect the Company’s actual results and could cause such results to differ materially from any forward-looking statements that may be made in this news release. 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, including but not limited to the following: (i) our loan origination activities, revenues and profits are limited by available funds; (ii) we operate in a highly competitive market and competition may limit our ability to originate loans with favorable interest rates; (iii) our Chief Executive Officer is critical to our business and our future success may depend on our ability to retain him; (iv) if we overestimate the yields on our loans or incorrectly value the collateral securing the loan, we may experience losses; (v) we may be subject to “lender liability” claims; (vi) our due diligence may not uncover all of a borrower’s liabilities or other risks to its business; (vii) borrower concentration could lead to significant losses; (viii) 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 and (ix) if the effect of the COVID-19 pandemic on our business is greater than anticipated. The risk factors contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 filed with the Securities and Exchange Commission identify 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 publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2020 AND 2019

Assets 2020   2019 
Loans receivable$58,097,970  $53,485,014 
Interest receivable on loans 827,236   675,996 
Cash 131,654   118,407 
Cash - restricted 327,483   --- 
Other assets 66,566   53,218 
Operating lease right-of-use asset, net 369,699   87,754 
Deferred financing costs, net 22,807   22,637 
Total assets$59,843,415  $54,443,026 

Liabilities and Stockholders’ Equity

Liabilities:       
Line of credit$20,308,873  $15,232,993 
Senior secured notes (net of deferred financing costs of $397,327 and $472,413, respectively) 5,602,673   5,527,587 
Deferred origination fees 367,638   322,119 
Accounts payable and accrued expenses 168,940   151,823 
Operating lease liability 372,907   91,025 
Other liabilities ---   15,000 
Dividends payable 1,058,194   1,159,061 
Total liabilities 27,879,225   22,499,608 
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; 9,882,058 issued; 9,619,945 and 9,658,844 outstanding, respectively 9,882   9,882 
Additional paid-in capital 33,157,096   33,144,032 
Treasury stock, at cost – 262,113 and 223,214 shares (798,939)  (619,688)
Accumulated deficit (403,849)  (590,808)
Total stockholders’ equity 31,964,190   31,943,418 
Total liabilities and stockholders’ equity$59,843,415  $54,443,026 

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019

  2020   2019 
Interest income from loans$5,988,622  $6,185,764 
Origination fees 1,017,729   1,153,941 
Total Revenue 7,006,351   7,339,705 
Operating costs and expenses:   
Interest and amortization of deferred financing costs 1,356,015   1,635,134 
Referral fees 5,875   3,750 
General and administrative expenses 1,434,438   1,202,739 
Total operating costs and expenses 2,796,328   2,841,623 
    
Income from operations 4,210,023   4,498,082 
Other income 20,000   12,000 
Loss on write-off of investment in privately held company  ---    (15,000)
Income before income tax expense 4,230,023   4,495,082 
Income tax expense (645)  (572)
Net income$4,229,378  $4,494,510 
    
Basic and diluted net income per common share outstanding:   
--Basic$0.44  $0.47 
--Diluted $0.44  $0.47 
    
Weighted average number of common shares outstanding   
--Basic 9,631,296   9,658,147 
--Diluted 9,631,296   9,659,285  

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019

 Common StockAdditional Paid-in CapitalTreasury StockAccumulated DeficitTotals
 SharesAmount SharesCost  
Balance, January 1, 20199,874,191$ 9,874$33,110,536218,214$(590,234)$ (448,801)$ 32,081,375 
Exercise of warrants and options7,867 8 20,432    20,440 
Non cash compensation   13,064    13,064 
Purchase of treasury shares   5,000 (29,454)  (29,454)
Dividends paid      (3,477,456) (3,477,456)
Dividends declared and payable      (1,159,061) (1,159,061)
Net income for the year ended December 31, 2019      4,494,510  4,494,510 
Balance, December 31, 20199,882,058$9,882 33,144,032223,214 (619,688)  (590,808)  31,943,418 
Non cash compensation   13,064    13,064 
Purchase of treasury shares   38,899 (179,251)  (179,251)
Dividends paid      (2,984,225) (2,984,225)
Dividends declared and payable      (1,058,194) (1,058,194)
Net income for the year ended December 31, 2020      4,229,378  4,229,378 
Balance, December 31, 20209,882,058$9,882$33,157,096262,113$(798,939)$(403,849)$ 31,964,190 

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019

  2020   2019 
Cash flows from operating activities:       
Net income$4,229,378  $4,494,510 
Adjustments to reconcile net income to net cash provided by operating activities -   
Amortization of deferred financing costs 102,017   94,489 
Depreciation 1,135   1,414 
Non cash compensation expense 13,064   13,064 
Loss on write-off of investment in privately held company ---   15,000 
Adjustment to operating lease right-of-use asset and liability (62)  3,271 
Changes in operating assets and liabilities   
Interest receivable on loans (180,911)  (79,219)
Other assets (5,724)  3,499 
Accounts payable and accrued expenses 17,117   (31,893)
Deferred origination fees 45,519   (82,557)
Net cash provided by operating activities 4,221,533   4,431,578 
    
Cash flows from investing activities:   
Issuance of short term loans (43,719,304)  (48,053,965)
Collections received from loans 39,136,019   49,420,078 
Release of loan holdback relating to mortgage receivable (15,000)  --- 
Purchase of fixed assets (8,759)  --- 
Net cash (used in) provided by investing activities (4,607,044)  1,366,113 
Cash flows from financing activities:   
Proceeds from (repayments of) line of credit, net 5,075,880   (1,389,154)
Dividends paid (4,143,286)  (4,636,173)
Purchase of treasury shares (179,251)  (29,454)
Deferred financing costs incurred (27,102)  --- 
Proceeds from exercise of stock options and warrants ---   20,440 
Net cash provided by (used in) financing activities 726,241   (6,034,341)
    
Net increase (decrease) in cash and restricted cash 340,730   (236,650)
Cash and restricted cash, beginning of year 118,407   355,057 
Cash and restricted cash, end of year$459,137  $118,407 
    
    
Supplemental Cash Flow Information:   
Taxes paid during the year$645  $572 
Interest paid during the year$1,264,533  $1,560,644 
Operating leases paid during the year$56,572  $52,571 
    
Supplemental Information – Noncash Information: Dividend declared and payable$1,058,194  $1,159,061 
Establishment of right-of-use asset and operating lease liability$329,421  $135,270 
Interest receivable converted to loans receivable in connection with forbearance agreements$29,671  $--- 
Loan holdback relating to mortgage receivable$---  $15,000 
        
Contact:
Assaf Ran, CEO
Vanessa Kao, CFO
(516) 444-3400 
SOURCE: Manhattan Bridge Capital, Inc.

Primary Logo

Source: Manhattan Bridge Capital, Inc.


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Globe Newswire, Press Releases

Related Entities

Dividend, Definitive Agreement