Manhattan Bridge Capital (LOAN) Reports 1Q EPS/Revenue Results In-Line with Estimates

April 16, 2018 7:11 AM EDT
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Manhattan Bridge Capital, Inc. (NASDAQ: LOAN) announced today that total revenue for the three month period ended March 31, 2018 was approximately $1,664,000 compared to approximately $1,330,000 for the three month period ended March 31, 2017, an increase of $334,000, or 25.1%. The increase in revenue represents an increase in lending operations. In 2018, approximately $1,429,000 of the Company’s revenue represents interest income on secured, commercial loans that it offers to small businesses compared to approximately $1,106,000 for the same period in 2017, and approximately $235,000 represents origination fees on such loans compared to approximately $223,000 for the same period in 2017. The loans are principally secured by collateral consisting of real estate and, generally, accompanied by personal guarantees from the principals of the businesses.

Net income for the three month period ended March 31, 2018 was approximately $981,000, or $0.12 per basic and diluted share (based on approximately 8.1 million weighted-average outstanding common shares), versus approximately $791,000, or $0.10 per basic and diluted share (based on approximately 8.1 million and 8.2 million weighted-average outstanding common shares, respectively), an increase of $190,000, or 24.0%. This increase is primarily attributable to the increase in revenue, offset by an increase in interest expense.

As of March 31, 2018, total assets were approximately $46,856,000 compared to approximately $45,897,000 as of December 31, 2017, an increase of $959,000, or 2.1%.

Assaf Ran, Chairman of the Board and CEO, stated, “We’ve had another successful quarter. During the first quarter the amount of paid loans was higher than usual. We believe that this is another indication of our portfolio’s strength and liquidity. Thanks to our robust sales and marketing network, we managed to redeploy the funds promptly. As with prior quarters, we had yet another quarter of no defaults,” added Mr. Ran.

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
March 31, 2018 December 31, 2017
(unaudited) (audited)
Assets
Loans receivable$46,056,500 $45,124,000
Interest receivable on loans 497,977 535,045
Cash and cash equivalents 185,532 136,441
Deferred financing costs 34,301 45,269
Other assets 81,883 55,941
Total assets$46,856,193 $45,896,696
Liabilities and Stockholders’ Equity
Liabilities:
Line of credit$17,764,153 $16,914,594
Senior secured notes (net of deferred financing costs of $603,813 and $622,584) 5,396,187 5,377,416
Deferred origination fees 320,723 298,471
Accounts payable and accrued expenses 144,273 167,559
Dividends payable --- 891,983
Total liabilities 23,625,336 23,650,023
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; 8,319,036 issued; 8,108,934 outstanding 8,319 8,319
Additional paid-in capital 23,170,777 23,167,511
Treasury stock, at cost - 210,102 shares (541,491) (541,491)
Retained earnings (accumulated deficit) 593,252 (387,666)
Total stockholders’ equity 23,230,857 22,246,673
Total liabilities and stockholders’ equity$46,856,193 $45,896,696

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARYCONSOLIDATED STATEMENTS OF OPERATIONS(unaudited)
Three Months Ended March 31,
2018 2017
Interest income from loans$1,429,249$1,106,180
Origination fees 235,226 223,425
Total revenue 1,664,475 1,329,605
Operating costs and expenses:
Interest and amortization of deferred financing costs 397,705 231,582
Referral fees 333 1,360
General and administrative expenses 285,519 305,514
Total operating costs and expenses 683,557 538,456
Net income$980,918$791,149
Basic and diluted net income per common share:
--Basic$0.12$0.10
--Diluted$0.12$0.10
Weighted average number of common shares outstanding:
--Basic 8,108,934 8,135,036
--Diluted 8,121,728 8,158,316

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARYCONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited)
Three Months Ended March 31,
2018 2017
Cash flows from operating activities:
Net income $980,918 $791,149
Adjustments to reconcile net income to net cash provided by operating activities -
Amortization of deferred financing costs 29,739 30,813
Depreciation 1,146 1,058
Non cash compensation expense 3,266 3,266
Changes in operating assets and liabilities:
Interest receivable on loans 37,068 (38,647)
Other assets (27,088) (20,594)
Accounts payable and accrued expenses (23,286) (22,927)
Deferred origination fees 22,252 10,607
Net cash provided by operating activities 1,024,015 754,725
Cash flows from investing activities:
Issuance of short term loans (11,000,000) (9,556,000)
Collections received from loans 10,067,500 9,107,000
Net cash used in investing activities (932,500) (449,000)
Cash flows from financing activities:
Proceeds from line of credit, net 849,559 734,199
Dividend paid (891,983) (813,503)
Cash restricted for reduction of line of credit --- (202,061)
Net cash used in financing activities (42,424) (281,365)
Net increase in cash and cash equivalents 49,091 24,360
Cash and cash equivalents, beginning of period 136,441 96,299
Cash and cash equivalents, end of period $185,532 $120,659
Supplemental Cash Flow Information:
Interest paid during the period $364,292 $192,231

SOURCE: Manhattan Bridge Capital, Inc.



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