Manhattan Bridge Capital, Inc. Reports Second Quarter 2023 Results

GREAT NECK, N.Y., July 20, 2023 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) (the “Company”) announced today that its total revenues for the three months ended June 30, 2023 were approximately $2,399,000 compared to approximately $2,117,000 for the three months ended June 30, 2022, an increase of $282,000, or 13.3%. The increase in revenues was due to higher interest rates charged on the Company’s commercial loans. For the three months ended June 30, 2023 and 2022, approximately $1,943,000 and $1,612,000, respectively, of the Company’s revenues were attributable to interest income on secured commercial loans that the Company offers to real estate investors, and approximately $457,000 and $504,000, respectively, of its 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, 2023 was approximately $1,422,000, or $0.12 per basic and diluted share (based on approximately 11.48 million weighted-average outstanding common shares), as compared to approximately $1,356,000, or $0.12 per basic and diluted share (based on approximately 11.49 million weighted-average outstanding common shares), for the three months ended June 30, 2022, an increase of $66,000, or 4.9%. This increase is primarily attributable to the increase in interest income, partially offset by an increase in interest expense.

Total revenues for the six months ended June 30, 2023 were approximately $4,797,000 compared to approximately $4,232,000 for the six months ended June 30, 2022, an increase of $565,000, or 13.4%. The increase in revenue was due to higher interest rates charged on the Company’s commercial loans. For the six months ended June 30, 2023 and 2022, revenues of approximately $3,896,000 and $3,256,000, respectively, were attributable to interest income on secured commercial loans that the Company offers to real estate investors, and approximately $901,000 and $976,000, respectively, 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 six months ended June 30, 2023 was approximately $2,681,000, or $0.23 per basic and diluted share (based on approximately 11.49 million weighted-average outstanding common shares), as compared to approximately $2,781,000, or $0.24 per basic and diluted share (based on approximately 11.49 million weighted-average outstanding common shares), for the six months ended June 30, 2022, a decrease of $100,000, or 3.6%. This decrease is primarily attributable to the increase in interest expense and a special bonus to officers in 2023, partially offset by an increase in interest income.

As of June 30, 2023, total stockholders' equity was approximately $42,804,000.

On April 11, 2023, the Company’s Board of Directors authorized a share buy back program, pursuant to which the Company may, from time to time, purchase up to 100,000 of its common shares. This program does not obligate the Company to purchase any shares and expires on April 10, 2024. The authorization for the program may be terminated, increased or decreased by the Company’s Board of Directors in its discretion at any time. As of June 30, 2023, the Company has purchased an aggregate of 33,360 common shares under this repurchase program, at an aggregate cost of approximately $165,000.

Assaf Ran, Chairman of the Board and Chief Executive Officer of the Company, stated, “During the second quarter, we benefited from the impact of implementing increased interest rates on the vast majority of our loan portfolio. Finally, the balance between paying a higher interest to our bank and charging a higher interest to our borrowers is working in our favor, due to the fact that our debt to equity ratio is extraordinarily low.”

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	June 30, 2023 (unaudited)			December 31, 2022 (audited)
Loans receivable	$	69,811,335		$	74,483,463
Interest receivable on loans		1,274,288			1,363,502
Cash		248,874			103,540
Other assets		134,819			59,566
Operating lease right-of-use asset, net		234,793			262,222
Deferred financing costs, net		33,948			7,708
Total assets	$	71,738,057		$	76,280,001

Liabilities and Stockholders’ Equity
Liabilities:
Line of credit	$	20,670,721				$	24,994,234
Senior secured notes (net of deferred financing costs of $209,614 and $247,155, respectively)		5,790,386					5,752,845
Deferred origination fees		686,981					669,128
Accounts payable and accrued expenses		231,736					289,868
Operating lease liability		247,287					273,485
Loan holdback		17,500					---
Dividends payable		1,289,428					1,436,868
Total liabilities		28,934,039					33,416,428
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; 11,461,585 and 11,494,945 outstanding, respectively		11,757					11,757
Additional paid-in capital		45,542,343					45,535,811
Treasury stock, at cost – 295,473 and 262,113 shares, respectively		(963,745	)				(798,939	)
Accumulated deficit		(1,786,337	)				(1,885,056	)
Total stockholders’ equity		42,804,018					42,863,573
Total liabilities and stockholders’ equity	$	71,738,057				$	76,280,001

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

	Three Months Ended June 30,						Six Months Ended June 30,
		2023			2022			2023			2022
Interest income from loans	$	1,942,527		$	1,612,308		$	3,896,349		$	3,256,097
Origination fees		456,835			504,455			900,806			975,726
Total revenue		2,399,362			2,116,763			4,797,155			4,231,823
Operating costs and expenses:
Interest and amortization of deferred financing costs		595,427			376,383			1,241,690			708,236
Referral fees		1,000			1,958			1,292			3,320
General and administrative expenses		400,979			386,238			897,075			747,726
Total operating costs and expenses		997,406			764,579			2,140,057			1,459,282
Income from operations		1,401,956			1,352,184			2,657,098			2,772,541
Other income		20,380			4,500			24,880			9,000
Income before income tax expense		1,422,336			1,356,684			2,681,978			2,781,541
Income tax expense		(650	)		(650	)		(650	)		(650	)
Net income	$	1,421,686		$	1,356,034		$	2,681,328		$	2,780,891
Basic and diluted net income per common share outstanding:
--Basic	$	0.12		$	0.12		$	0.23		$	0.24
--Diluted	$	0.12		$	0.12		$	0.23		$	0.24
Weighted average number of common shares outstanding:
--Basic		11,475,406			11,494,945			11,485,116			11,494,945
--Diluted		11,475,406			11,494,945			11,485,116			11,494,945

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

FOR THE THREE MONTHS ENDED JUNE 30, 2023

	Common Shares			Additional Paid in Capital		Treasury Stock				Accumulated Deficit			Totals
	Shares	Amount				Shares	Cost
Balance, April 1, 2023	11,757,058	$	11,757	$	45,539,077	262,113	$	(798,939	)	$	(1,918,595	)	$	42,833,300
Purchase of treasury shares						33,360		(164,806	)					(164,806	)
Non - cash compensation					3,266									3,266
Dividends declared and payable											(1,289,428	)		(1,289,428	)
Net income											1,421,686			1,421,686
Balance, June 30, 2023	11,757,058	$	11,757	$	45,542,343	295,473	$	(963,745	)	$	(1,786,337	)	$	42,804,018

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 SIX MONTHS ENDED JUNE 30, 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
Purchase of treasury shares						33,360		(164,806	)					(164,806	)
Non - cash compensation					6,532									6,532
Dividends paid											(1,293,181	)		(1,293,181	)
Dividends declared and payable											(1,289,428	)		(1,289,428	)
Net income											2,681,328			2,681,328
Balance, June 30, 2023	11,757,058	$	11,757	$	45,542,343	295,473	$	(963,745	)	$	(1,786,337	)	$	42,804,018

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

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

		Six Months Ended June 30,
		2023			2022
Cash flows from operating activities:
Net income		$ 2,681,328			$ 2,780,891
Adjustments to reconcile net income to net cash provided by operating activities -
Amortization of deferred financing costs		49,494			53,999
Adjustment to operating lease right-of-use asset and liability		1,230			2,316
Depreciation		1,946			972
Non-cash compensation expense		6,532			6,532
Changes in operating assets and liabilities:
Interest receivable on loans		89,214			(96,889)
Other assets		(72,115)			(63,871)
Accounts payable and accrued expenses		(58,132)			31,151
Deferred origination fees		17,853			132,166
Net cash provided by operating activities		2,717,350			2,847,267
Cash flows from investing activities:
Issuance of short term loans		(28,122,249)			(37,953,007)
Collections received from loans		32,811,877			34,364,708
Purchase of fixed assets		(5,085)			(1,893)
Net cash provided by (used in) investing activities		4,684,543			(3,590,192)
Cash flows from financing activities:
(Repayment of) proceeds from line of credit, net		(4,323,513)			3,627,556
Dividends paid		(2,730,049)			(2,873,736)
Purchase of treasury shares		(164,806)			---
Deferred financing costs incurred		(38,191)			(35,819)
Net cash (used in) provided by financing activities		(7,256,559)			718,001
Net increase (decrease) in cash		145,334			(24,924)
Cash, beginning of year		103,540			142,546
Cash, end of period		$ 248,874			$ 117,622
Supplemental Cash Flow Information:
Taxes paid during the period		$ 650			$ 650
Interest paid during the period		$ 1,215,297			$ 608,902
Operating leases paid during the period		$ 31,863			$ 31,786
Supplemental Information – Noncash Information:
Dividend declared and payable			$ 1,289,428			$ 1,436,868
Loan holdback relating to mortgage receivable			$ 17,500			$ ---