Manhattan Bridge Capital, Inc. Reports First Quarter 2021 Results

Rhea-AI Summary

Manhattan Bridge Capital (Nasdaq: LOAN) reported a net income of approximately $1,106,000 for Q1 2021, a rise of 8.9% from $1,016,000 in Q1 2020. Total revenues increased by 1.0% to about $1,729,000, attributed to lower interest and administrative expenses. Interest income from secured loans was $1,443,000, a slight decrease from $1,474,000 year-over-year. As of March 31, 2021, total shareholders' equity stood at approximately $33,073,000. The CEO expressed cautious optimism about the company's deal flow returning to pre-COVID levels.

Positive

• Net income rose to $1,106,000, an 8.9% increase year-over-year.
• Total revenues increased by 1.0% to $1,729,000.
• Decrease in interest and administrative expenses contributed to profitability.
• Total shareholders' equity reached approximately $33,073,000.

Negative

• Interest income from loans decreased to $1,443,000 from $1,474,000.

GREAT NECK, N.Y., April 14, 2021 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that net income for the three months ended March 31, 2021 was approximately $1,106,000, or $0.12 per basic and diluted share (based on approximately 9.6 million weighted-average outstanding common shares), versus approximately $1,016,000, or $0.11 per basic and diluted share (based on approximately 9.7 million weighted-average outstanding common shares) for the three months ended March 31, 2020, an increase of $90,000, or 8.9%. This increase is primarily attributable to the decreases in interest expense and in general and administrative expenses.

Total revenues for the three months ended March 31, 2021 were approximately $1,729,000 compared to approximately $1,711,000 for the three months ended March 31, 2020, an increase of $18,000, or 1.0%. For the three months ended March 31, 2021, approximately $1,443,000 of our revenue represents interest income on secured commercial loans that we offer to small businesses, compared to approximately $1,474,000 for the same period in 2020, and approximately $286,000 and $237,000, respectively, represent origination fees on such loans. The loans are principally secured by collateral consisting of real estate and, generally, accompanied by personal guarantees from the principals of the borrowers.

As of March 31, 2021, total shareholders' equity was approximately $33,073,000.

Assaf Ran, Chairman of the Board and CEO, stated, “I believe that the first quarter of 2021 reflects buds of optimism. We returned to work from the office, of course following all regulations, and our deal flow strengthened to approximately our pre-COVID pace. There are still many concerns. However, most of our loans are secured by first mortgages on 1-4 family houses located outside of Manhattan, a product that has actually appreciated in value during the pandemic. Given current market conditions, and considering the extra safety measures we’re taking to continue our no defaults track record, I am pleased with the results and hope to return to growth mode in the near future. I wish everyone good health.”

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 belief that the first quarter of 2021 reflects buds of optimism, that our deal flow strengthened to approximately our pre-COVID pace and the hope that we will return to growth mode in the near future, 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

Assets	March 31, 2021 (unaudited)			December 31, 2020 (audited)
Loans receivable	$	58,490,238		$	58,097,970
Interest receivable on loans		915,132			827,236
Cash		205,834			131,654
Cash - restricted		---			327,483
Other assets		80,977			66,566
Operating lease right-of-use asset, net		356,535			369,699
Deferred financing costs, net		17,315			22,807
Total assets	$	60,066,031		$	59,843,415

Liabilities and Stockholders’ Equity

Liabilities:
Line of credit	$	20,441,047			$	20,308,873
Senior secured notes (net of deferred financing costs of $378,556 and $397,327, respectively)		5,621,444				5,602,673
Deferred origination fees		438,927				367,638
Accounts payable and accrued expenses		130,353				168,940
Operating lease liability		360,935				372,907
Dividends payable		---				1,058,194
Total liabilities		26,992,706				27,879,225
Commitments and contingencies
Stockholders’ equity:
Preferred stock - $.01 par value; 5,000,000 shares authorized; none issued		---				---
Common stock - $.001 par value; 25,000,000 shares authorized; 9,882,058 issued; 9,619,945 outstanding		9,882				9,882
Additional paid-in capital		33,160,362				33,157,096
Treasury stock, at cost – 262,113 shares		(798,939)				(798,939)
Retained earnings (accumulated deficit)		702,020				(403,849)
Total stockholders’ equity		33,073,325				31,964,190
Total liabilities and stockholders’ equity	$	60,066,031			$	59,843,415

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY

	Three Months Ended March 31,
		2021		2020
Interest income from loans	$	1,442,814	$	1,473,544
Origination fees		286,473		237,442
Total revenue		1,729,287		1,710,986
Operating costs and expenses:
Interest and amortization of deferred financing costs		317,186		352,442
Referral fees		1,751		542
General and administrative expenses		308,981		344,780
Total operating costs and expenses		627,918		697,764
Income from operations		1,101,369		1,013,222
Other income		4,500		3,000
Net income	$	1,105,869	$	1,016,222
Basic and diluted net income per common share outstanding:
--Basic	$	0.12	$	0.11
--Diluted	$	0.12	$	0.11
Weighted average number of common shares outstanding:
--Basic		9,619,945		9,652,539
--Diluted		9,619,945		9,652,753

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

FOR THE THREE MONTHS ENDED MARCH 31, 2021

	Common Stock			Additional Paid-in Capital	Treasury Stock			(Accumulated Deficit) Retained Earnings	Totals
	Shares	Amount			Shares	Cost
Balance, January 1, 2021	9,882,058	$9,882		$33,157,096	262,113	$(798,939)		$(403,849)	$31,964,190
Non-cash compensation				3,266					3,266
Net income								1,105,869	1,105,869
Balance, March 31, 2021	9,882,058	$9,882		$33,160,362	262,113	$(798,939)		$702,020	$33,073,325

FOR THE THREE MONTHS ENDED MARCH 31, 2020

	Common Stock			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				3,266				3,266
Purchase of treasury shares					26,609	(131,036)		(131,036)
Net income							1,016,222	1,016,222
Balance, March 31, 2020	9,882,058	$9,882		$33,147,298	249,823	$(750,724)	$425,414	$ 32,831,870

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

	Three Months Ended March 31,
		2021			2020
Cash flows from operating activities:
Net income	$	1,105,869		$	1,016,222
Adjustments to reconcile net income to net cash provided by operating activities -
Amortization of deferred financing costs		24,263			24,375
Adjustment to operating lease right-of-use asset and liability		1,192			(261)
Depreciation		587			283
Non-cash compensation expense		3,266			3,266
Changes in operating assets and liabilities:
Interest receivable on loans		(87,896)			(40,922)
Other assets		(14,998)			(19,683)
Accounts payable and accrued expenses		(38,587)			13,463
Deferred origination fees		71,289			132,369
Net cash provided by operating activities		1,064,985			1,129,112
Cash flows from investing activities:
Issuance of short term loans		(9,659,678)			(16,082,435)
Collections received from loans		9,267,410			12,753,380
Release of loan holdback relating to mortgage receivable		---			(15,000)
Purchase of fixed assets		---			(923)
Net cash used in investing activities		(392,268)			(3,344,978)
Cash flows from financing activities:
Proceeds from line of credit, net		132,174			3,627,220
Dividend paid		(1,058,194)			(1,159,061)
Purchase of treasury shares		---			(131,036)
Deferred financing costs incurred		---			(27,102)
Net cash (used in) provided by financing activities		(926,020)			2,310,021
Net (decrease) increase in cash		(253,303)			94,155
Cash and restricted cash, beginning of year		459,137			118,407
Cash and restricted cash, end of period	$	205,834		$	212,562

Supplemental Cash Flow Information:
Interest paid during the period	$	302,160		$	328,871
Operating leases paid during the period	$	15,849		$	13,604

SOURCE: Manhattan Bridge Capital, Inc.

FAQ

What was Manhattan Bridge Capital's net income for Q1 2021?

The net income for Q1 2021 was approximately $1,106,000, or $0.12 per share.

How did total revenues change for Manhattan Bridge Capital in Q1 2021 compared to Q1 2020?

Total revenues increased by 1.0% to approximately $1,729,000 in Q1 2021.

What factors contributed to Manhattan Bridge Capital's increased net income in Q1 2021?

The increase in net income was primarily due to decreases in interest expense and general administrative expenses.

What was the interest income reported by Manhattan Bridge Capital in Q1 2021?

Interest income was approximately $1,443,000 in Q1 2021.

What is the current total shareholders' equity for Manhattan Bridge Capital?

As of March 31, 2021, total shareholders' equity was approximately $33,073,000.