Manhattan Bridge Capital, Inc. Reports Results for 2022

Rhea-AI Summary

Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) reported a net income of approximately $5,212,000 for the year ended December 31, 2022, representing $0.45 per share, a 17.8% increase from $4,423,000 or $0.42 per share in 2021. Total revenue rose 25.9% to $8,571,000, driven by increased lending operations, primarily interest income of $6,773,000 and origination fees of $1,798,000.

Operating expenses surged 40.6% to $3,377,000 due to rising interest costs. Despite challenges in the real estate market and higher interest rates impacting earnings per share, the company achieved a record annual profit.

Positive

• Net income increased by $789,000, or 17.8% to $5,212,000.
• Total revenue rose by 25.9% to $8,571,000, driven by increased lending operations.
• Interest income from secured loans increased to $6,773,000.

Negative

• Operating costs increased by 40.6% to $3,377,000 due to higher interest expenses.
• Earnings per share only reached $0.45 due to increased interest rates impacting profitability.

GREAT NECK, N.Y., March 10, 2023 (GLOBE NEWSWIRE) --

Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that net income for the year ended December 31, 2022 was approximately $5,212,000, or $0.45 per share (based on approximately 11.5 million weighted-average outstanding common shares), versus approximately $4,423,000, or $0.42 per share (based on approximately 10.5 million weighted-average outstanding common shares) for the year ended December 31, 2021, an increase of $789,000, or 17.8%. This increase is primarily attributable to an increase in revenue, partially offset by increases in interest expense and general and administrative expenses.

Total revenue for the year ended December 31, 2022 was approximately $8,571,000, compared to approximately $6,808,000 for the year ended December 31, 2021, an increase of $1,763,000, or 25.9%. The increase in revenue was due to an increase in lending operations. In 2022, approximately $6,773,000 of our revenue represents interest income on secured, real estate loans that we offer to real estate investors compared to approximately $5,609,000 in 2021, and approximately $1,798,000 represents origination fees on such loans, compared to approximately $1,199,000 in 2021. 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, 2022 were approximately $3,377,000 compared to approximately $2,402,000 for the year ended December 31, 2021, an increase of $975,000, or 40.6%. The increase in operating costs and expenses was primarily attributable to an increase in interest expense due to higher LIBOR rates relating to the use of our credit line in order to support our ability to increase loan originations, the significant reduction in the outstanding balance of our credit line due to a public offering of our common shares in July 2021, which gradually increased through December 2022, and a voluntary waiver from our Chief Executive Officer of his base salary for the fourth quarter of 2021.

As of December 31, 2022, total shareholders' equity was approximately $42,864,000, compared to approximately $43,386,000 as of December 31, 2021.

Assaf Ran, Chairman of the Board and CEO, stated, “The dramatic interest rate increase during the 2022 fiscal year changed the dynamics of “Hard Money” lending. We have experienced a slow real estate market, a tight spread, and a drop in investor confidence, but also less competition. Although we benefited tremendously from our low debt-to-equity ratio in this rough time, and managed to present an all-time annual earnings record, the increased interest rate on our adjustable-rate line of credit became an unexpected burden and the main reason that our earnings per share were only $0.45 for the 2022 fiscal year.”

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. 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) an increase in interest rates may impact our profitability; (v) if we overestimate the yields on our loans or incorrectly value the collateral securing the loan, we may experience losses; (vi) we may be subject to “lender liability” claims; (vii) our due diligence may not uncover all of a borrower’s liabilities or other risks to its business; (viii) borrower concentration could lead to significant losses and (ix) 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. The risk factors contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 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, 2022 and 2021

Assets		2022			2021
Loans receivable	$	74,483,463		$	65,715,364
Interest receivable on loans		1,363,502			955,443
Cash		103,540			142,546
Other assets		59,566			64,745
Operating lease right-of-use asset, net		262,222			317,080
Deferred financing costs, net		7,708			10,539
Total assets	$	76,280,001		$	67,205,717

Liabilities and Stockholders’ Equity
Liabilities:
Line of credit	$	24,994,234				$	15,645,970
Senior secured notes (net of deferred financing costs of $247,155 and $322,241, respectively)		5,752,845					5,677,759
Deferred origination fees		669,128					580,461
Accounts payable and accrued expenses		289,868					154,169
Operating lease liability		273,485					324,248
Dividends payable		1,436,868					1,436,868
Total liabilities		33,416,428					23,819,475
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; 11,494,945 outstanding		11,757					11,757
Additional paid-in capital		45,535,811					45,522,746
Treasury stock, at cost – 262,113 shares		(798,939	)				(798,939	)
Accumulated deficit		(1,885,056	)				(1,349,322	)
Total stockholders’ equity		42,863,573					43,386,242
Total liabilities and stockholders’ equity	$	76,280,001				$	67,205,717

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2022 and 2021

		2022				2021
Interest income from loans	$	6,772,889			$	5,608,660
Origination fees		1,798,075				1,199,230
Total Revenue		8,570,964				6,807,890
Operating costs and expenses:
Interest and amortization of deferred financing costs		1,822,825				1,045,548
Referral fees		4,500				7,532
General and administrative expenses		1,549,251				1,348,838
Total operating costs and expenses		3,376,576				2,401,918
Income from operations		5,194,388				4,405,972
Other income		18,000				18,000
Income before income tax expense		5,212,388				4,423,972
Income tax expense		(650	)			(647	)
Net income	$	5,211,738			$	4,423,325
Basic and diluted net income per common share outstanding:
--Basic	$	0.45			$	0.42
--Diluted	$	0.45			$	0.42
Weighted average number of common shares outstanding
--Basic		11,494,945				10,524,055
--Diluted		11,494,945				10,524,055

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2022 and 2021

	Common Stock			Additional Paid-in Capital		Treasury Stock				Accumulated Deficit			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
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
Non cash compensation					13,065									13,065
Dividends paid											(4,310,604	)		(4,310,604	)
Dividends declared and payable											(1,436,868	)		(1,436,868	)
Net income for the year ended December 31, 2022											5,211,738			5,211,738
Balance, December 31, 2022	11,757,058	$	11,757	$	45,535,811	262,113	$	(798,939	)	$	(1,885,056	)	$	42,863,573

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2022 and 2021

		2022				2021
Cash flows from operating activities:
Net income	$	5,211,738			$	4,423,325
Adjustments to reconcile net income to net cash provided by operating activities -
Amortization of deferred financing costs		113,736				87,353
Depreciation		2,307				2,265
Non cash compensation expense		13,065				13,065
Adjustment to operating lease right-of-use asset and liability		4,096				3,960
Changes in operating assets and liabilities
Interest receivable on loans		(408,059	)			(128,207	)
Other assets		5,742				(443	)
Accounts payable and accrued expenses		135,699				(14,771	)
Deferred origination fees		88,667				212,823
Net cash provided by operating activities		5,166,991				4,599,370
Cash flows from investing activities:
Issuance of short term loans		(60,915,596	)			(49,267,892	)
Collections received from loans		52,147,497				41,650,498
Purchase of fixed assets		(2,871	)			---
Net cash used in investing activities		(8,770,970	)			(7,617,394	)
Cash flows from financing activities:
Proceeds from public offering, net		---				12,354,460
Proceeds from (repayment of) line of credit, net		9,348,264				(4,662,903	)
Dividends paid		(5,747,472	)			(4,990,124	)
Deferred financing costs incurred		(35,819	)			---
Net cash provided by financing activities		3,564,973				2,701,433
Net decrease in cash and restricted cash		(39,006	)			(316,591	)
Cash and restricted cash, beginning of year*		142,546				459,137
Cash, end of year	$	103,540			$	142,546
Supplemental Cash Flow Information:
Taxes paid during the year	$	650			$	647
Interest paid during the year	$	1,581,935			$	982,491
Operating leases paid during the year	$	63,621			$	63,481
Supplemental Information – Noncash Information: Dividend declared and payable	$	1,436,868			$	1,436,868

* At January 1, 2021, cash and restricted cash included $327,483 of restricted cash.

FAQ

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

Manhattan Bridge Capital reported a net income of approximately $5,212,000 for the year 2022.

How much did total revenue increase for LOAN in 2022?

Total revenue for Manhattan Bridge Capital (LOAN) increased by 25.9% to approximately $8,571,000 in 2022.

What were the earnings per share for LOAN in fiscal 2022?

The earnings per share for Manhattan Bridge Capital (LOAN) were $0.45 for the fiscal year 2022.

What factors impacted operating expenses for LOAN in 2022?

Operating expenses for LOAN increased by 40.6% due to higher interest expenses in 2022.

How did interest income change for LOAN in 2022?

Interest income for Manhattan Bridge Capital (LOAN) increased to approximately $6,773,000 in 2022.