Manhattan Bridge Capital, Inc. Reports First Quarter 2022 Results

Rhea-AI Summary

Manhattan Bridge Capital reported a net income of approximately $1,425,000 for Q1 2022, marking a 28.8% increase from $1,106,000 in Q1 2021. Earnings per share remained stable at $0.12. Total revenue rose 22.3% to $2,115,000, driven by robust lending operations, including interest income of $1,644,000 from secured commercial loans. However, this growth was partially offset by higher general and administrative expenses. As of March 31, 2022, shareholders’ equity stood at approximately $43,377,000.

Positive

• Net income increased by $319,000, or 28.8%.
• Total revenue grew by $386,000, or 22.3%.
• Interest income from secured loans increased to $1,644,000.

Negative

• Increase in general and administrative expenses offset revenue growth.

GREAT NECK, N.Y., April 14, 2022 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (NASDAQ: LOAN) announced today that net income for the three months ended March 31, 2022 was approximately $1,425,000, or $0.12 per basic and diluted share (based on approximately 11.5 million weighted-average outstanding common shares), versus approximately $1,106,000, or $0.12 per basic and diluted share (based on approximately 9.6 million weighted-average outstanding common shares) for the three months ended March 31, 2021, an increase of $319,000, or 28.8%. This increase is primarily attributable to an increase in revenue, partially offset by an increase in general and administrative expenses.

Total revenue for the three months ended March 31, 2022 was approximately $2,115,000 compared to approximately $1,729,000 for the three months ended March 31, 2021, an increase of $386,000, or 22.3%. The increase in revenue was due to an increase in lending operations. For the three months ended March 31, 2022, approximately $1,644,000 of the Company’s revenue represents interest income on secured commercial loans that it offers to small businesses, compared to approximately $1,443,000 for the same period in 2021, and approximately $471,000 and $286,000, 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, 2022, total shareholders' equity was approximately $43,377,000.

Assaf Ran, Chairman of the Board and CEO, stated, “The first quarter financial results represent the impact of the additional funds we raised in the equity offering last summer. Despite the relatively lower interest rates that we are currently charging due to market conditions, our quarterly revenue and net earnings were near our all-time high.”

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

		March 31, 2022 (unaudited)			December 31, 2021 (audited)
Assets
Loans receivable		$  68,438,336			$  65,715,364
Interest receivable on loans		1,028,917			955,443
Cash		145,366			142,546
Other assets		91,555			64,745
Operating lease right-of-use asset, net		303,366			317,080
Deferred financing costs, net		41,115			10,539
Total assets		$  70,048,655			$  67,205,717

Liabilities and Stockholders’ Equity
Liabilities:
Line of credit		$  18,389,558			$  15,645,970
Senior secured notes (net of deferred financing costs of $303,470 and $322,241, respectively)		5,696,530			5,677,759
Deferred origination fees		688,233			580,461
Accounts payable and accrued expenses		148,211			154,169
Operating lease liability		311,758			324,248
Dividends payable		1,436,868			1,436,868
Total liabilities		26,671,158			23,819,475
Commitments and contingencies
Stockholders’ equity:
Preferred stock - $.01 par value; 5,000,000 shares authorized; none issued		---			---
Common shares - $.001 par value; 25,000,000 shares authorized; 11,757,058 issued; 11,494,945 outstanding		11,757			11,757
Additional paid-in capital		45,526,012			45,522,746
Treasury stock, at cost – 262,113 shares		(798,939)			(798,939)
Accumulated deficit		(1,361,333)			(1,349,322)
Total stockholders’ equity		43,377,497			43,386,242
Total liabilities and stockholders’ equity		$  70,048,655			$  67,205,717

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

	Three Months Ended March 31,
		2022			2021
Interest income from loans		$1,643,789			$1,442,814
Origination fees		471,271			286,473
Total revenue		2,115,060			1,729,287
Operating costs and expenses:
Interest and amortization of deferred financing costs		331,853			317,186
Referral fees		1,361			1,751
General and administrative expenses		361,489			308,981
Total operating costs and expenses		694,703			627,918
Income from operations		1,420,357			1,101,369
Other income		4,500			4,500
Net income		$1,424,857			$1,105,869
Basic and diluted net income per common share outstanding:
--Basic	$	0.12		$	0.12
--Diluted	$	0.12		$	0.12
Weighted average number of common shares outstanding:
--Basic		11,494,945			9,619,945
--Diluted		11,494,945			9,619,945

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

FOR THE THREE MONTHS ENDED MARCH 31, 2022

	Common Shares		Additional Paid-in Capital		Treasury Stock				Accumulated Deficit			Totals
	Shares	Amount			Shares	Cost
Balance, January 1, 2022	11,757,058	$11,757	$45,522,746		262,113	$(798,939)			$ (1,349,322		)	$ 43,386,242
Non-cash compensation			3,266										3,266
Dividends declared and payable										(1,436,868	)		(1,436,868	)
Net income										1,424,857			1,424,857
Balance, March 31, 2022	11,757,058	$11,757	$45,526,012		262,113	$(798,939)			$(1,361,333		)	$ 43,377,497

FOR THE THREE MONTHS ENDED MARCH 31, 2021

	Common Shares		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

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

	Three Months Ended March 31,
		2022				2021
Cash flows from operating activities:
Net income	$	1,424,857			$	1,105,869
Adjustments to reconcile net income to net cash provided by   operating activities -
Amortization of deferred financing costs		24,015				24,263
Adjustment to operating lease right-of-use asset and liability		1,224				1,192
Depreciation		469				587
Non-cash compensation expense		3,266				3,266
Changes in operating assets and liabilities:
Interest receivable on loans		(73,474	)			(87,896	)
Other assets		(27,280	)			(14,998	)
Accounts payable and accrued expenses		(5,958	)			(38,587	)
Deferred origination fees		107,772				71,289
Net cash provided by operating activities		1,454,891				1,064,985
Cash flows from investing activities:
Issuance of short term loans		(18,295,339	)			(9,659,678	)
Collections received from loans		15,572,367				9,267,410
Net cash used in investing activities		(2,722,972	)			(392,268	)
Cash flows from financing activities:
Proceeds from line of credit, net		2,743,588				132,174
Dividend paid		(1,436,868	)			(1,058,194	)
Deferred financing costs incurred		(35,819	)			---
Net cash provided by (used in) financing activities		1,270,901				(926,020	)
Net increase (decrease) in cash		2,820				(253,303	)
Cash and restricted cash*, beginning of year		142,546				459,137
Cash and restricted cash*, end of period	$	145,366			$	205,834

Supplemental Cash Flow Information:
Interest paid during the period	$	277,757			$	302,160
Operating leases paid during the period	$	15,881			$	15,849
Supplemental Information – Noncash Information:
Dividend declared and payable	$	1,436,868			$	---

* At January 1, 2021, cash and restricted cash included $327,483 of restricted cash. No other periods above included restricted cash.

FAQ

What was Manhattan Bridge Capital's net income for Q1 2022?

The net income for Q1 2022 was approximately $1,425,000.

How much did revenue increase in Q1 2022 for LOAN?

Total revenue increased by 22.3% to approximately $2,115,000.

What is the earnings per share for LOAN in Q1 2022?

Earnings per share remained stable at $0.12.

What contributed to the revenue growth for Manhattan Bridge Capital?

Revenue growth was primarily due to increased lending operations.

What was the total shareholders' equity as of March 31, 2022?

Total shareholders' equity was approximately $43,377,000.