Manhattan Bridge Capital, Inc. Reports Results for 2021

Rhea-AI Summary

Manhattan Bridge Capital reported a net income of approximately $4.423 million for the year ended December 31, 2021, or $0.42 per share, reflecting a 4.6% increase from $4.229 million in 2020. Total revenue decreased to $6.808 million, down 2.8% from $7.006 million due to lower interest rates and competition. Operating costs fell 14.1% to $2.402 million. Shareholders' equity rose to $43.386 million from $31.964 million in the previous year, aided by a successful share offering in July 2021, which raised approximately $13 million.

Positive

• Net income increased by $194,000, or 4.6%.
• Decrease in operating costs by 14.1% to $2.402 million.
• Shareholders' equity grew to $43.386 million from $31.964 million.

Negative

• Total revenue decline of $198,000, or 2.8%.
• Lower interest income from secured loans decreased to $5.609 million.

GREAT NECK, N.Y., March 11, 2022 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (NASDAQ: LOAN) announced today that net income for the year ended December 31, 2021 was approximately $4,423,000, or $0.42 per share (based on approximately 10.5 million weighted-average outstanding common shares), versus approximately $4,229,000, or $0.44 per share (based on approximately 9.6 million weighted-average outstanding common shares) for the year ended December 31, 2020, an increase in net income of $194,000, or 4.6%. This increase is primarily attributable to decreases in interest and payroll expenses, offset by a decrease in revenue.

Total revenue for the year ended December 31, 2021 was approximately $6,808,000, compared to approximately $7,006,000 for the year ended December 31, 2020, a decrease of $198,000, or 2.8%. 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. In 2021, approximately $5,609,000 of the Company’s revenue represents interest income on secured, real estate loans that we offer to small businesses compared to approximately $5,989,000 in 2020, and approximately $1,199,000 represents origination fees on such loans, compared to approximately $1,018,000 in 2020. The loans are principally secured by collateral consisting of real estate and accompanied by personal guarantees from the principals of the borrowers.

Total operating costs and expenses for the year ended December 31, 2021 were approximately $2,402,000 compared to approximately $2,796,000 for the year ended December 31, 2020, a decrease of $394,000, or 14.1%. The decrease in operating costs and expenses was primarily attributable to decreased interest expense due to lower LIBOR rates as well as a reduced outstanding credit line balance resulting from the use of net proceeds from a public offering of the Company’s common stock in July 2021, an annual bonus paid to the Company’s Chief Executive Officer in 2020, which was not repeated in 2021, and a voluntary waiver from the Company’s Chief Executive Officer forgoing his base salary for the months of October, November and December 2021.

As of December 31, 2021, total shareholders' equity was approximately $43,386,000, compared to approximately $31,964,000 as of December 31, 2020.

Assaf Ran, Chairman of the Board and CEO, stated, “2021 was an interesting year -- it started with extreme uncertainty, followed by enormous optimism and ended with flourishing real estate markets stimulated by plenty of cash all around. During the year, we had to adjust the terms of loans we made to borrowers to stay in-line with market standards. In July 2021, we completed a successful share offering at $7.20 per share, adding approximately $13 million to our equity, in order to secure future growth. It took us approximately six months to deploy the new funds raised in the public offering, so I believe that the impact of the offering on our earnings per share (EPS) will show in the first quarter of 2022,” added Mr. Ran.

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 the Company’s 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 the state of the real estate markets, the belief that the impact of the public offering on our EPS will show in the first quarter of 2022, 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, 2021 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
DECEMBER 31, 2021 and 2020
Assets	2021			2020
Loans receivable	$ 65,715,364			$ 58,097,970
Interest receivable on loans	955,443			827,236
Cash	142,546			131,654
Cash - restricted	---			327,483
Other assets	64,745			66,566
Operating lease right-of-use asset, net	317,080			369,699
Deferred financing costs, net	10,539			22,807
Total assets	$ 67,205,717			$ 59,843,415

Liabilities and Stockholders’ Equity

Liabilities:
Line of credit	$15,645,970				$20,308,873
Senior secured notes (net of deferred financing costs of $322,241 and $397,327, respectively)	5,677,759				5,602,673
Deferred origination fees	580,461				367,638
Accounts payable and accrued expenses	154,169				168,940
Operating lease liability	324,248				372,907
Dividends payable	1,436,868				1,058,194
Total liabilities	23,819,475				27,879,225
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 and 9,882,058 issued; 11,494,945 and 9,619,945 outstanding, respectively	11,757				9,882
Additional paid-in capital	45,522,746				33,157,096
Treasury stock, at cost – 262,113 shares	(798,939	)			(798,939	)
Accumulated deficit	(1,349,322	)			(403,849	)
Total stockholders’ equity	43,386,242				31,964,190
Total liabilities and stockholders’ equity	$67,205,717				$59,843,415

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2021 and 2020
	2021			2020
Interest income from loans	$5,608,660			$5,988,622
Origination fees	1,199,230			1,017,729
Total Revenue	6,807,890			7,006,351
Operating costs and expenses:
Interest and amortization of deferred financing costs	1,045,548			1,356,015
Referral fees	7,532			5,875
General and administrative expenses	1,348,838			1,434,438
Total operating costs and expenses	2,401,918			2,796,328
Income from operations	4,405,972			4,210,023
Other income	18,000			20,000
Income before income tax expense	4,423,972			4,230,023
Income tax expense	(647	)		(645	)
Net income	$4,423,325			$4,229,378
Basic and diluted net income per common share outstanding:
--Basic	$0.42			$0.44
--Diluted	$0.42			$0.44
Weighted average number of common shares outstanding
--Basic	10,524,055			9,631,296
--Diluted	10,524,055			9,631,296

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2021 and 2020
	Common Stock		Additional Paid-in Capital	Treasury Stock			Accumulated Deficit		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			13,064						13,064
Purchase of treasury shares				38,899	(179,251	)			(179,251	)
Dividends paid							(2,984,225	)	(2,984,225	)
Dividends declared and payable							(1,058,194	)	(1,058,194	)
Net income for the year ended December 31, 2020							4,229,378		4,229,378
Balance, December 31, 2020	9,882,058	9,882	33,157,096	262,113	(798,939	)	(403,849	)	31,964,190
Public offering, net	1,875,000	1,875	12,352,585						12,354,460
Non cash compensation			13,065						13,065
Dividends paid							(3,931,930	)	(3,931,930	)
Dividends declared and payable							(1,436,868	)	(1,436,868	)
Net income for the year ended December 31, 2021							4,423,325		4,423,325
Balance, December 31, 2021	11,757,058	$11,757	$45,522,746	262,113	$(798,939	)	$(1,349,322	)	$43,386,242

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2021 and 2020
	2021			2020
Cash flows from operating activities:
Net income	$4,423,325			$4,229,378
Adjustments to reconcile net income to net cash provided by operating activities -
Amortization of deferred financing costs	87,353			102,017
Depreciation	2,265			1,135
Non cash compensation expense	13,065			13,064
Adjustment to operating lease right-of-use asset and liability	3,960			(62	)
Changes in operating assets and liabilities
Interest receivable on loans	(128,207	)		(180,911	)
Other assets	(443	)		(5,724	)
Accounts payable and accrued expenses	(14,771	)		17,117
Deferred origination fees	212,823			45,519
Net cash provided by operating activities	4,599,370			4,221,533
Cash flows from investing activities:
Issuance of short term loans	(49,267,892	)		(43,719,304	)
Collections received from loans	41,650,498			39,136,019
Release of loan holdback relating to mortgage receivable	---			(15,000	)
Purchase of fixed assets	---			(8,759	)
Net cash used in investing activities	(7,617,394	)		(4,607,044	)
Cash flows from financing activities:
Proceeds from public offering, net	12,354,460			---
(Repayment of) proceeds from line of credit, net	(4,662,903	)		5,075,880
Dividends paid	(4,990,124	)		(4,143,286	)
Purchase of treasury shares	---			(179,251	)
Deferred financing costs incurred	---			(27,102	)
Net cash provided by financing activities	2,701,433			726,241
Net (decrease) increase in cash and restricted cash	(316,591	)		340,730
Cash and restricted cash, beginning of year	459,137			118,407
Cash and restricted cash, end of year	$142,546			$459,137
Supplemental Cash Flow Information:
Taxes paid during the year	$647			$645
Interest paid during the year	$982,491			$1,264,533
Operating leases paid during the year	$63,481			$56,572
Supplemental Information – Noncash Information: Dividend declared and payable	$1,436,868			$1,058,194
Establishment of right-of-use asset and operating lease liability	$---			$329,421
Interest receivable converted to loans receivable in connection with forbearance agreements	$---			$29,671

SOURCE: Manhattan Bridge Capital, Inc.

FAQ

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

Manhattan Bridge Capital reported a net income of approximately $4.423 million for 2021.

How much did total revenue decrease in 2021?

Total revenue for 2021 decreased by approximately $198,000, or 2.8%.

What was the impact of the share offering in July 2021?

The share offering in July 2021 raised approximately $13 million, increasing shareholders' equity.

What is the current EPS for Manhattan Bridge Capital?

The earnings per share (EPS) for 2021 was $0.42.

How much did operating costs decrease in 2021?

Operating costs decreased by approximately $394,000, or 14.1%, in 2021.