Manhattan Bridge Capital, Inc. Reports Second Quarter 2022 Results

Rhea-AI Summary

Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) reported total revenues of approximately $2,117,000 for Q2 2022, marking a 23.6% increase from $1,713,000 in Q2 2021. The rise is attributed to boosted lending operations, with interest income on secured loans reaching $1,612,000 and origination fees $504,000. Net income rose to $1,356,000 or $0.12 per share, up 28.2%. For the first half of 2022, revenues totaled $4,232,000, a 22.9% increase year-over-year. CEO Assaf Ran noted the company’s strong position amid rising interest rates and tight banking conditions.

Positive

• Total revenue increased by $404,000 (23.6%) for Q2 2022 compared to Q2 2021.
• Net income rose by $298,000 (28.2%) for Q2 2022, totaling $1,356,000.
• For the first half of 2022, revenue increased by $789,000 (22.9%) year-over-year.
• Strong interest income growth, rising from $1,612,000 in Q2 2021 to $1,612,000 in Q2 2022.

Negative

• Increased interest expense and general administrative costs partially offset revenue gains.
• Market dynamics show potential challenges with increasing interest rates affecting lending.

GREAT NECK, N.Y., July 22, 2022 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that its total revenues for the three months ended June 30, 2022 were approximately $2,117,000 compared to approximately $1,713,000 for the three months ended June 30, 2021, an increase of $404,000, or 23.6%. The increase in revenue was due to an increase in lending operations. For the three months ended June 30, 2022 and 2021, approximately $1,612,000 and $1,424,000, respectively, of the Company’s revenues were attributable to interest income on secured commercial loans that it offers to real estate investors, and approximately $504,000 and $290,000, respectively, of the Company’s revenues were attributable to 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.

Net income for the three months ended June 30, 2022 was approximately $1,356,000, or $0.12 per basic and diluted share (based on approximately 11.49 million weighted-average outstanding common shares), as compared to approximately $1,058,000, or $0.11 per basic and diluted share (based on approximately 9.62 million weighted-average outstanding common shares), for the three months ended June 30, 2021, an increase of $298,000, or 28.2%. This increase is primarily attributable to the increase in revenue, partially offset by increases in interest expense and in general and administrative expenses.

Total revenues for the six months ended June 30, 2022 were approximately $4,232,000 compared to approximately $3,443,000 for the six months ended June 30, 2021, an increase of $789,000, or 22.9%. The increase in revenue was due to an increase in lending operations. For the six months ended June 30, 2022 and 2021, revenues of approximately $3,256,000 and $2,867,000, respectively, were attributable to interest income on secured commercial loans that the Company offers to real estate investors, and approximately $976,000 and $576,000, respectively, were attributable to origination fees on such loans.

Net income for the six months ended June 30, 2022 was approximately $2,781,000, or $0.24 per basic and diluted share (based on approximately 11.49 million weighted-average outstanding common shares) compared to approximately $2,164,000, or $0.22 per basic and diluted share (based on approximately 9.62 million weighted-average outstanding common shares), for the six months ended June 30, 2021, an increase of $617,000, or 28.5%. This increase is primarily attributable to the increase in revenue, partially offset by increases in interest expense and in general and administrative expenses.

As of June 30, 2022, total stockholders' equity was approximately $43,300,000.

Assaf Ran, Chairman of the Board and CEO, stated, “While we continue to present an impressive performance of no defaults since inception, we are operating in the context of new market dynamics -- interest rates are increasing, banks are tighter, and real estate developers are hesitant. We believe that in this environment, our ultra-low debt-to-equity ratio becomes a strength.”

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 belief that in the current market environment, our ultra-low debt-to-equity ratio becomes a strength, 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; (ix) an increase in interest rates may impact our profitability and (x) 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

Assets		June 30, 2022 (unaudited)			December 31, 2021 (audited)
Loans receivable	$	69,303,663		$	65,715,364
Interest receivable on loans		1,052,332			955,443
Cash		117,622			142,546
Other assets		129,536			64,745
Operating lease right-of-use asset, net		289,651			317,080
Deferred financing costs, net		29,902			10,539
Total assets	$	70,922,706		$	67,205,717

Liabilities and Stockholders’ Equity

Liabilities:
Line of credit	$	19,273,526			$	15,645,970
Senior secured notes (net of deferred financing costs of $284,698 and $322,241, respectively)		5,715,301				5,677,759
Deferred origination fees		712,627				580,461
Accounts payable and accrued expenses		185,320				154,169
Operating lease liability		299,135				324,248
Dividends payable		1,436,868				1,436,868
Total liabilities		27,622,777				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		45,529,278				45,522,746
Treasury stock, at cost – 262,113 shares		(798,939	)			(798,939	)
Accumulated deficit		(1,442,167	)			(1,349,322	)
Total stockholders’ equity		43,299,929				43,386,242
Total liabilities and stockholders’ equity	$	70,922,706			$	67,205,717

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

	Three Months Ended June 30,						Six Months Ended June 30,
		2022			2021			2022			2021
Interest income from loans	$	1,612,308		$	1,423,759		$	3,256,097		$	2,866,573
Origination fees		504,455			289,670			975,726			576,143
Total revenue		2,116,763			1,713,429			4,231,823			3,442,716
Operating costs and expenses:
Interest and amortization of deferred financing costs		376,383			316,915			708,236			634,101
Referral fees		1,958			2,643			3,320			4,394
General and administrative expenses		386,238			339,602			747,726			648,583
Total operating costs and expenses		764,579			659,160			1,459,282			1,287,078
Income from operations		1,352,184			1,054,269			2,772,541			2,155,638
Other income		4,500			4,500			9,000			9,000
Income before income tax expense		1,356,684			1,058,769			2,781,541			2,164,638
Income tax expense		(650	)		(647	)		(650	)		(647	)
Net income	$	1,356,034		$	1,058,122		$	2,780,891		$	2,163,991
Basic and diluted net income per common share outstanding:
--Basic	$	0.12		$	0.11		$	0.24		$	0.22
--Diluted	$	0.12		$	0.11		$	0.24		$	0.22
Weighted average number of common shares outstanding:
--Basic		11,494,945			9,619,945			11,494,945			9,619,945
--Diluted		11,494,945			9,619,945			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 JUNE 30, 2022

	Common Shares			Additional Paid in Capital		Treasury Stock				Accumulated Deficit			Totals
	Shares	Amount				Shares	Cost
Balance, April 1, 2022	11,757,058	$11,757		$45,526,012		262,113	$(798,939		)	$(1,361,333		)	$43,377,497
Non - cash compensation					3,266									3,266
Dividends declared and payable											(1,436,868	)		(1,436,868	)
Net income											1,356,034			1,356,034
Balance, June 30, 2022	11,757,058	$11,757		$45,529,278		262,113	$(798,939		)	$(1,442,167		)	$43,299,929

FOR THE THREE MONTHS ENDED JUNE 30, 2021

	Common Shares			Additional Paid in Capital		Treasury Stock				Retained Earnings			Totals
	Shares	Amount				Shares	Cost
Balance, April 1, 2021	9,882,058	$9,882		$33,160,362		262,113	$(798,939		)	$ 702,020			$ 33,073,325
Non - cash compensation					3,266									3,266
Dividends paid											(1,058,194	)		(1,058,194	)
Net income											1,058,122			1,058,122
Balance, June 30, 2021	9,882,058	$9,882		$33,163,628		262,113	$(798,939		)	$ 701,948			$33,076,519

FOR THE SIX MONTHS ENDED JUNE 30, 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					6,532									6,532
Dividends paid											(1,436,868	)		(1,436,868	)
Dividends declared and payable											(1,436,868	)		(1,436,868	)
Net income											2,780,891			2,780,891
Balance, June 30, 2022	11,757,058	$11,757		$45,529,278		262,113	$(798,939		)	$(1,442,167		)	$43,299,929

FOR THE SIX MONTHS ENDED JUNE 30, 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					6,532									6,532
Dividends paid											(1,058,194	)		(1,058,194	)
Net income											2,163,991			2,163,991
Balance, June 30, 2021	9,882,058	$9,882		$33,163,628		262,113	$(798,939		)	$ 701,948			$33,076,519

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

			Six Months Ended June 30,
			2022				2021
Cash flows from operating activities:
Net income			$	2,780,891			$	2,163,991
Adjustments to reconcile net income to net cash provided by operating activities -
Amortization of deferred financing costs			53,999				45,294
Adjustment to operating lease right-of-use asset and liability			2,316				2,060
Depreciation			972				1,153
Non-cash compensation expense			6,532				6,532
Changes in operating assets and liabilities:
Interest receivable on loans			(96,889)				(88,502)
Other assets			(63,871)				(56,768)
Accounts payable and accrued expenses			31,151				(35,028)
Deferred origination fees			132,166				(9,885)
Net cash provided by operating activities			2,847,267				2,028,847
Cash flows from investing activities:
Issuance of short term loans			(37,953,007)				(15,567,677)
Collections received from loans			34,364,708				20,279,776
Purchase of fixed assets			(1,893)				---
Net cash (used in) provided by investing activities			(3,590,192)				4,712,099
Cash flows from financing activities:
Proceeds from (repayment of) line of credit, net			3,627,556				(4,911,758)
Dividends paid			(2,873,736)				(2,116,388)
Deferred financing costs incurred			(35,819)				---
Pre-offering costs incurred			---				(18,750)
Net cash provided by (used in) financing activities			718,001				(7,046,896)
Net decrease in cash			(24,924)				(305,950)
Cash and restricted cash*, beginning of year			142,546				459,137
Cash and restricted cash*, end of period			$	117,622			$	153,187
Supplemental Cash Flow Information:
Taxes paid during the period			$	650			$	647
Interest paid during the period			$	608,902			$	603,869
Operating leases paid during the period			$	31,786			$	31,719
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.

SOURCE: Manhattan Bridge Capital, Inc.

 

FAQ

What are Manhattan Bridge Capital's revenues for Q2 2022?

Manhattan Bridge Capital reported revenues of approximately $2,117,000 for Q2 2022.

How much did net income increase for Manhattan Bridge Capital in Q2 2022?

Net income increased by $298,000, or 28.2%, reaching approximately $1,356,000 in Q2 2022.

What factors contributed to the revenue increase for LOAN in Q2 2022?

The revenue increase was primarily due to heightened lending operations.

What was the stockholder equity for Manhattan Bridge Capital as of June 30, 2022?

As of June 30, 2022, total stockholders' equity was approximately $43,300,000.