Manhattan Bridge Capital, Inc. Reports First Quarter Results for 2024

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GREAT NECK, N.Y., April 23, 2024 (GLOBE NEWSWIRE) --

Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that its net income for the three months ended March 31, 2024 was approximately $1,476,000, or $0.13 per share (based on approximately 11.4 million weighted-average outstanding common shares), compared to approximately $1,260,000, or $0.11 per share (based on approximately 11.5 million weighted-average outstanding common shares) for the three months ended March 31, 2023, an increase of $216,000, or 17.1%. This increase is primarily attributable to an increase in interest income from loans and a decrease in general and administrative expenses, partially offset by an increase in interest expense.

Total revenues for the three months ended March 31, 2024 were approximately $2,573,000 compared to approximately $2,398,000 for the three months ended March 31, 2023, an increase of $175,000, or 7.3%. The increase in revenue was due to higher interest rates charged on the Company’s commercial loans. For the three months ended March 31, 2024, approximately $2,142,000 of its revenue represents interest income on secured commercial loans that the Company offers to real estate investors, compared to approximately $1,954,000 for the same period in 2023, and approximately $431,000 and $444,000, respectively, represent 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.

As of March 31, 2024, total shareholders' equity was approximately $43,087,000.

Assaf Ran, Chairman of the Board and Chief Executive Officer of the Company, stated, “High interest rates are still the most common topic in the real estate investors community, as their impact is significant. Sales are lingering, refinance transactions are dragging, and existing adjustable-rate mortgages are becoming unaffordable for certain buildings. Additionally, construction costs increased to new records due to the higher-than-normal inflation. We’ve always been disciplined, conservative and careful, yet now is the time to be even stricter.”

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
 
AssetsMarch 31, 2024 (unaudited) December 31, 2023 (audited)
Loans receivable$72,596,149 $73,048,403 
Interest receivable on loans 1,514,836  1,395,905 
Cash  87,097  104,222 
Cash - restricted 311,545  1,587,773 
Other assets 97,734  63,636 
Operating lease right-of-use asset, net 193,650  207,364 
Deferred financing costs, net 24,400  27,583 
Total assets$74,825,411 $76,434,886 

Liabilities and Stockholders’ Equity     
Liabilities:     
Line of credit $ 23,450,677  $ 25,152,338
Senior secured notes (net of deferred financing costs of $153,298 and $172,069, respectively) 5,846,702  5,827,931
Deferred origination fees 655,023  719,019
Accounts payable and accrued expenses 263,692  295,292
Operating lease liability 206,934  220,527
Dividends payable 1,315,445  1,287,073
Total liabilities 31,738,473  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 45,552,142  45,548,876
Less: Treasury stock, at cost – 318,407 and 316,407 shares (1,070,406)  (1,060,606)
Accumulated deficit (1,406,555)  (1,567,321)
Total stockholders’ equity 43,086,938  42,932,706
Total liabilities and stockholders’ equity $ 74,825,411  $ 76,434,886

 
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARYCONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
 
 Three Months Ended March 31,
  2024  2023
Revenue:  
Interest income from loans$2,142,487 $1,953,821
Origination fees 430,591  443,971
Total revenue 2,573,078  2,397,792
Operating costs and expenses:  
Interest and amortization of deferred financing costs 690,589  646,263
Referral fees 500  291
General and administrative expenses 410,278  496,096
Total operating costs and expenses 1,101,367  1,142,650
   
Income from operations 1,471,711  1,255,142
Other income 4,500  4,500
Net income$1,476,211 $1,259,642
   
Basic and diluted net income per common share outstanding:  
--Basic$0.13 $0.11
--Diluted$0.13 $0.11
   
Weighted average number of common shares outstanding:  
--Basic 11,438,673  11,494,945
--Diluted 11,438,673  11,494,945

 
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (unaudited)FOR THE THREE MONTHS ENDED MARCH 31, 2024
 Common SharesAdditional Paid-in CapitalTreasury StockAccumulated DeficitTotals
      
 SharesAmount SharesCost  
Balance, January 1, 202411,757,058$11,757$45,548,876316,407$(1,060,606)$(1,567,321)$ 42,932,706 
Non-cash compensation   3,266    3,266 
Purchase of treasury shares   2,000 (9,800)  (9,800)
Dividends declared and payable      (1,315,445) (1,315,445)
Net income________ ________ ________ ________ ________  1,476,211  1,476,211 
Balance, March 31, 202411,757,058$11,757$45,552,142318,407$(1,070,406)$(1,406,555)$43,086,938 

FOR THE THREE MONTHS ENDED MARCH 31, 2023
 
 Common SharesAdditional Paid-in CapitalTreasury StockAccumulated DeficitTotals
      
 SharesAmount SharesCost  
Balance, January 1, 202311,757,058$11,757$45,535,811262,113$(798,939)$ (1,885,056)$ 42,863,573 
Non-cash compensation   3,266    3,266 
Dividends declared and payable      (1,293,181) (1,293,181)
Net income________ ________ ________ ________ ________  1,259,642  1,259,642 
Balance, March 31, 202311,757,058$11,757$45,539,077262,113$(798,939)$(1,918,595)$42,833,300 

 
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
 
  Three Months Ended March 31,
    2024    2023 
Cash flows from operating activities:    
Net income $1,476,211  $1,259,642 
Adjustments to reconcile net income to net cash provided by operating activities -    
Amortization of deferred financing costs  21,954   27,540 
Adjustment to operating lease right-of-use asset and liability  121   685 
Depreciation  1,055   892 
Non-cash compensation expense  3,266   3,266 
Changes in operating assets and liabilities:    
Interest receivable on loans  (118,931)  104,455 
Other assets  (35,153)  (35,189)
Accounts payable and accrued expenses  (31,600)  (28,043)
Deferred origination fees  (63,996)  (18,272)
Net cash provided by operating activities  1,252,927   1,314,976 
     
Cash flows from investing activities:    
Issuance of short-term loans  (9,650,271)  (13,734,803)
Collections received from loans  10,102,525   16,285,581 
Purchase of fixed assets  ---   (5,085)
Net cash provided by investing activities  452,254   2,545,693 
     
Cash flows from financing activities:    
Repayment of line of credit, net  (1,701,661)  (2,413,957)
Dividend paid  (1,287,073)  (1,436,868)
Purchase of treasury shares  (9,800)  --- 
Deferred financing costs incurred  ---   (38,192)
Net cash used in financing activities  (2,998,534)  (3,889,017)
     
Net decrease in cash  (1,293,353)  (28,348)
Cash and cash - restricted, beginning of period  1,691,995   103,540 
Cash and cash - restricted, end of period $398,642  $75,192 

Supplemental Disclosure of Cash Flow Information   
Cash paid during the period for interest$667,488  $636,990 
Cash paid during the period for operating leases$16,370  $15,917 
    
Supplemental Schedule of Noncash Financing Activities:   
Dividend declared and payable$1,315,445  $1,293,181 
Loan holdback relating to mortgage receivable$---  $17,500 

The components of cash and cash - restricted are as follows:   
Cash$87,097  $75,192 
Cash - restricted$311,545  $--- 
Contact: Assaf Ran, CEO Vanessa Kao, CFO (516) 444-3400 SOURCE: Manhattan Bridge Capital, Inc.

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Source: Manhattan Bridge Capital, Inc.

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