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

Rhea-AI Summary

Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) reported a net income of approximately $1,476,000 for the first quarter of 2024, a 17.1% increase from the same period in 2023. Total revenues were approximately $2,573,000, up by 7.3% driven by higher interest rates on commercial loans. The company's revenue primarily comes from interest income on secured commercial loans offered to real estate investors. Total shareholders' equity as of March 31, 2024, stood at approximately $43,087,000.

Positive

• Net income increased by 17.1% to $1,476,000 in the first quarter of 2024 compared to the same period in 2023.
• Total revenues rose by 7.3% to approximately $2,573,000 in the first quarter of 2024.
• Revenue growth was attributed to higher interest rates on commercial loans offered by the company.
• Approximately $2,142,000 of revenue represents interest income on secured commercial loans, while $431,000 and $444,000 represent origination fees on such loans.
• Total shareholders' equity as of March 31, 2024, was approximately $43,087,000.

Negative

• None.

Insights

Financial Analyst

Analyzing the financial health and performance of Manhattan Bridge Capital, Inc., the reported increase in net income by 17.1% indicates a favorable profit trajectory, which is a positive signal to current and prospective investors. This growth, underpinned by an increment in interest income against a backdrop of higher interest rates on commercial loans, suggests that the company is effectively capitalizing on prevailing economic conditions. However, investors should be mindful of the rising interest expenses that partly offset the income gains, which reflect the cost implications of servicing debts in a high-interest environment. The loan portfolio, predominantly secured by real estate collateral, adds an element of risk mitigation, albeit the real estate market is sensitive to interest rate fluctuations. The personal guarantees from principals of the borrowers are additional risk management levers that investors should factor into their assessments. The reported total shareholders' equity provides a cushion and an indicator of the company's financial resilience. In light of the CEO's comments, investor confidence may be bolstered by the company's disciplined approach, but it is also a reminder to continuously evaluate the impact of economic factors such as inflation and real estate market dynamics on the company's future performance.

Real Estate Market Analyst

Focusing on the real estate market implications, the assertion that high interest rates are affecting sales and refinancing transactions sheds light on the broader market context in which Manhattan Bridge Capital operates. A slowdown in these areas can signal a cooling in the real estate market, which may, in turn, influence the demand for the company's commercial loans. The mention of rising construction costs due to inflation is a critical economic factor that could constrain new real estate development projects, potentially affecting the company's future loan origination volume. Investors should monitor these market trends closely, as they can have significant implications for the company's growth and profitability. The conservative approach highlighted by the CEO could help navigate these turbulent market conditions, but it also points to a potential tightening in the company's lending criteria, which could affect their competitive position in the marketplace.

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
Assets	March 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 SUBSIDIARY CONSOLIDATED 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 Shares			Additional Paid-in Capital		Treasury Stock				Accumulated Deficit			Totals
	Shares	Amount				Shares	Cost
Balance, January 1, 2024	11,757,058	$11,757		$45,548,876		316,407	$(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, 2024	11,757,058	$11,757		$45,552,142		318,407	$(1,070,406		)	$(1,406,555		)	$43,086,938

FOR THE THREE MONTHS ENDED MARCH 31, 2023
	Common Shares			Additional Paid-in Capital		Treasury Stock				Accumulated Deficit			Totals
	Shares	Amount				Shares	Cost
Balance, January 1, 2023	11,757,058	$11,757		$45,535,811		262,113	$(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, 2023	11,757,058	$11,757		$45,539,077		262,113	$(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			$	---

FAQ

What was Manhattan Bridge Capital's net income for the first quarter of 2024?

Manhattan Bridge Capital reported a net income of approximately $1,476,000 for the first quarter of 2024.

What were Manhattan Bridge Capital's total revenues for the first quarter of 2024?

Manhattan Bridge Capital's total revenues for the first quarter of 2024 were approximately $2,573,000.

What contributed to the revenue growth of Manhattan Bridge Capital in the first quarter of 2024?

The revenue growth was driven by higher interest rates on commercial loans offered by the company.

What is Manhattan Bridge Capital's ticker symbol?

Manhattan Bridge Capital's ticker symbol is LOAN.

Who is the Chairman of the Board and CEO of Manhattan Bridge Capital?

Assaf Ran is the Chairman of the Board and Chief Executive Officer of Manhattan Bridge Capital.