Manhattan Bridge Capital, Inc. Reports $0.12 EPS for the Third Quarter

Rhea-AI Summary

Manhattan Bridge Capital (LOAN) reported a net income of approximately $1,151,000, or $0.12 per share, for Q3 2020, unchanged from Q3 2019. Total revenues fell to about $1,786,000, a decrease of 6.8% year-over-year, driven by lower interest rates and reduced loan demand due to COVID-19. For the nine months ending September 30, 2020, net income was approximately $3,264,000, down 2.7% compared to the prior year. The company emphasized its stability with no defaults and continued dividend distribution despite challenging market conditions.

Positive

• Earnings per share increased to $0.12 for Q3 2020 from $0.11 in Q2 2020.
• No defaults reported, showcasing effective risk management.
• Continued dividend disbursement during economic uncertainty.

Negative

• Total revenues decreased by $131,000 (6.8%) year-over-year for Q3 2020.
• Nine-month revenues fell by $245,000 (4.5%) compared to the same period in 2019.
• Revenue decline attributed to lower interest rates, origination fees, and decreased loan demand due to COVID-19.

GREAT NECK, N.Y., Oct. 20, 2020 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that its net income for the three months ended September 30, 2020 was approximately $1,151,000, or $0.12 per basic and diluted share (based on approximately 9.6 million weighted-average outstanding common shares), as compared to approximately $1,150,000, or $0.12 per basic and diluted share (based on approximately 9.7 million weighted-average outstanding common shares), for the three months ended September 30, 2019.

Total revenues for the three months ended September 30, 2020 were approximately $1,786,000, as compared to approximately $1,917,000 for the three months ended September 30, 2019, a decrease of $131,000 or 6.8%. 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. For the three months ended September 30, 2020 and 2019, approximately $1,521,000 and $1,619,000, respectively, of our revenues were attributable to interest income on secured commercial loans that we offer to small businesses, and approximately $265,000 and $298,000, respectively, of our revenues were attributable to origination fees on such loans.

Net income for the nine months ended September 30, 2020 was approximately $3,264,000, or $0.34 per basic and diluted share (based on approximately 9.6 million weighted-average outstanding common shares), as compared to approximately $3,355,000, or $0.35 per basic and diluted share (based on approximately 9.7 million weighted-average outstanding common shares), for the nine months ended September 30, 2019, a decrease of $91,000, or 2.7%. This decrease is primarily attributable to the decrease in revenue, partially offset by the decrease in interest expense.

Total revenues for the nine months ended September 30, 2020 were approximately $5,239,000, as compared to approximately $5,484,000 for the nine months ended September 30, 2019, a decrease of $245,000, or 4.5%. 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. For the nine months ended September 30, 2020 and 2019, revenues of approximately $4,485,000 and $4,609,000, respectively, were attributable to interest income on the secured commercial loans that we offer to small businesses, and approximately $753,000 and $875,000, respectively, of our revenues were attributable to origination fees on such loans.

Assaf Ran, Chairman of the Board and CEO, stated, “I am pleased to report that our conservative and careful policies have once again proven to protect our shareholders’ value during rough times. Not only do we continue to have no defaults, but we also managed to increase our earnings per share (EPS) to $0.12 for the quarter from $0.11 for the quarter ended June 30, 2020, and to continue distributing dividends during the difficult time we are experiencing due to the COVID-19 crisis.”

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 web site: 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 belief that our conservative and careful policies have protected our shareholders’ value during rough times, 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, 2019 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

			September 30, 2020				December 31, 2019
			(unaudited)				(audited)
Assets
Loans receivable			$	57,883,068			$	53,485,014
Interest receivable on loans			809,975				675,996
Cash			156,715				118,407
Other assets			88,554				53,218
Operating lease right-of-use asset, net			52,627				87,754
Deferred financing costs			29,917				22,637
Total assets			$	59,020,856			$	54,443,026

Liabilities and Stockholders’ Equity
Liabilities:
Line of credit	$	19,779,851				$	15,232,993
Senior secured notes (net of deferred financing costs of $416,099 and $472,413, respectively)		5,583,901					5,527,587
Deferred origination fees		452,914					322,119
Accounts payable and accrued expenses		132,582					151,823
Operating lease liability		55,566					91,025
Other liabilities		---					15,000
Dividends payable		---					1,159,061
Total liabilities		26,004,814					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		33,153,830					33,144,032
Treasury stock, at cost – 262,113 and 223,214 shares		(798,939	)				(619,688	)
Retained earnings (accumulated deficit)		651,269					(590,808	)
Total stockholders’ equity		33,016,042					31,943,418
Total liabilities and stockholders’ equity	$	59,020,856				$	54,443,026

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

	Three Months				Nine Months
	Ended September 30,				Ended September 30,
		2020		2019		2020			2019
Interest income from loans	$	1,521,474	$	1,618,735	$	4,485,414		$	4,608,936
Origination fees		264,878		298,222		753,111			875,449
Total revenue		1,786,352		1,916,957		5,238,525			5,484,385
Operating costs and expenses:
Interest and amortization of debt service costs		337,901		454,307		1,016,590			1,220,700
Referral fees		1,641		861		3,569			3,569
General and administrative expenses		305,407		314,820		968,914			913,175
Total operating costs and expenses		644,949		769,988		1,989,073			2,137,444
Income from operations		1,141,403		1,146,969		3,249,452			3,346,941
Other income		9,500		3,000		15,500			9,000
Income before income tax expense		1,150,903		1,149,969		3,264,952			3,355,941
Income tax expense		---		---		(645	)		(572	)
Net income	$	1,150,903	$	1,149,969	$	3,264,307		$	3,355,369
Basic and diluted net income per common share outstanding:
--Basic	$	0.12	$	0.12	$	0.34		$	0.35
--Diluted	$	0.12	$	0.12	$	0.34		$	0.35
Weighted average number of common shares outstanding
--Basic		9,625,140		9,658,608		9,635,107			9,657,911
--Diluted		9,625,140		9,659,764		9,635,107			9,659,012

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(unaudited)

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2020

	Common Shares			Additional Paid in Capital		Treasury Stock			Retained Earnings		Totals
	Shares	Amount				Shares	Cost
Balance, July 1, 2020	9,882,058	$	9,882	$	33,150,564	255,213	$	(771,559)	$	463,050	$	32,851,937
Purchase of treasury shares						6,900		(27,380)				(27,380)
Non - cash compensation					3,266							3,266
Dividends paid										(962,684)		(962,684)
Net income										1,150,903		1,150,903
Balance, September 30, 2020	9,882,058	$	9,882	$	33,153,830	262,113	$	(798,939)	$	651,269	$	33,016,042

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2019

	Common Shares			Additional Paid in Capital		Treasury Stock			Retained Earnings		Totals
	Shares	Amount				Shares	Cost
Balance, July 1, 2019	9,881,191	$	9,881	$	33,137,501	223,214	$	(619,688)	$	597,161	$	33,124,855
Exercise of warrants	867		1		(1)							0
Non-cash compensation					3,266							3,266
Dividends paid										(1,158,957)		(1,158,957)
Net income										1,149,969		1,149,969
Balance, September 30, 2019	9,882,058	$	9,882	$	33,140,766	223,214	$	(619,688)	$	588,173	$	33,119,133

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020

	Common Shares			Additional Paid in Capital		Treasury Stock			Accumulated Deficit (Retained Earnings)		Totals
	Shares	Amount				Shares	Cost
Balance, January 1, 2020	9,882,058	$	9,882	$	33,144,032	223,214	$	(619,688)	$	(590,808)	$	31,943,418
Non-cash compensation					9,798							9,798
Purchase of treasury shares						38,899		(179,251)				(179,251)
Dividends paid										(2,022,230)		(2,022,230)
Net income										3,264,307		3,264,307
Balance, September 30, 2020	9,882,058	$	9,882	$	33,153,830	262,113	$	(798,939)	$	651,269	$	33,016,042

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019

	Common Shares			Additional Paid in Capital		Treasury Stock			Accumulated Deficit (Retained Earnings)		Totals
	Shares	Amount				Shares	Cost
Balance, January 1, 2019	9,874,191	$	9,874	$	33,110,536	218,214	$	(590,234)	$	(448,801)	$	32,081,375
Exercise of options and warrants	7,867		8		20,432							20,440
Purchase of treasury shares						5,000		(29,454)				(29,454)
Non-cash compensation					9,798							9,798
Dividends paid										(2,318,395)		(2,318,395)
Net income										3,355,369		3,355,369
Balance, September 30, 2019	9,882,058	$	9,882	$	33,140,766	223,214	$	(619,688)	$	588,173	$	33,119,133

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

Nine Months
Ended September 30,

			Nine Months
			Ended September 30,
			2020					2019
Cash flows from operating activities:
Net income		$	3,264,307				$	3,355,369
Adjustments to reconcile net income to net cash provided by   operating activities -
Amortization of deferred financing costs			76,136					70,867
Adjustment to operating lease right-of-use asset and liability			(333	)				---
Depreciation			744					1,157
Non-cash compensation expense			9,798					9,798
Changes in operating assets and liabilities:
Interest receivable on loans			(163,650	)				(167,194			)
Other assets			(35,156	)				(26,209			)
Accounts payable and accrued expenses			(19,241	)				(19,134			)
Deferred origination fees			130,795					(461			)
Net cash provided by operating activities			3,263,400					3,224,193
Cash flows from investing activities:
Issuance of short term loans			(35,410,076	)				(38,246,965			)
Collections received from loans			31,041,693					33,375,420
Release of loan holdback relating to mortgage receivable			(15,000	)				---
Purchase of fixed assets			(923	)				---
Net cash used in investing activities			(4,384,306	)				(4,871,545			)
Cash flows from financing activities:
Proceeds from line of credit, net			4,546,858					5,241,895
Dividends paid			(3,181,291	)				(3,477,112			)
Purchase of treasury shares			(179,251	)				(29,454			)
Deferred financing costs incurred			(27,102	)				---
Proceeds from exercise of stock options			---					20,440
Net cash provided by financing activities			1,159,214					1,755,769
Net increase in cash			38,308					108,417
Cash, beginning of period			118,407					355,057
Cash, end of period		$	156,715				$	463,474
Supplemental Cash Flow Information:
Taxes paid during the period		$	645				$	572
Interest paid during the period		$	954,622				$	1,144,425
Operating leases paid during the period		$	40,973				$	39,628
Non-cash Investing Activities:
Establishment of right-of-use asset and operating lease liability		$	---						$	135,270
Interest receivable converted to loans receivable in connection with forbearance agreements		$	29,671						$	---
Loan holdback relating to mortgage receivable		$	---						$	15,000

FAQ

What is the net income of Manhattan Bridge Capital for Q3 2020?

Manhattan Bridge Capital reported a net income of approximately $1,151,000, or $0.12 per share, for Q3 2020.

How did total revenues change for Manhattan Bridge Capital in Q3 2020?

Total revenues for Q3 2020 were approximately $1,786,000, a decrease of 6.8% from Q3 2019.

What were the main reasons for revenue decline at Manhattan Bridge Capital?

The revenue decline was primarily due to lower interest rates, reduced origination fees, and lower demand for loans caused by the COVID-19 pandemic.

What is the EPS for Manhattan Bridge Capital in Q3 2020?

The earnings per share (EPS) for Manhattan Bridge Capital in Q3 2020 was $0.12.

Did Manhattan Bridge Capital distribute dividends during the COVID-19 pandemic?

Yes, Manhattan Bridge Capital continued to distribute dividends during the COVID-19 crisis.