Manhattan Bridge Capital, Inc. Reports Third Quarter 2022 Results

Rhea-AI Summary

Manhattan Bridge Capital (Nasdaq: LOAN) reported a net income of approximately $1,237,000 for Q3 2022, up 11.4% from $1,110,000 in Q3 2021. Total revenues increased 29.5% to $2,107,000, driven by growth in lending operations. For the nine months ended September 30, 2022, net income reached $4,018,000, a 22.7% increase year-over-year. Revenue for the nine-month period was approximately $6,339,000, up 25.0%. Despite higher interest expenses, the company maintains strong profitability and reports no loan defaults.

Positive

• Net income increased by $127,000 (11.4%) in Q3 2022 compared to Q3 2021.
• Total revenues for Q3 2022 rose by $480,000 (29.5%) due to increased lending operations.
• Total revenues for the nine months ended September 30, 2022 increased by $1,269,000 (25.0%) year-over-year.
• No loan defaults reported, indicating strong loan performance.

Negative

• Interest expenses increased, partially offsetting revenue growth.
• General and administrative expenses also rose, impacting profitability.

GREAT NECK, N.Y., Oct. 21, 2022 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that its net income for the three months ended September 30, 2022 was approximately $1,237,000, or $0.11 per basic and diluted share (based on approximately 11.5 million weighted-average outstanding common shares), as compared to approximately $1,110,000, or $0.10 per basic and diluted share (based on approximately 11.3 million weighted-average outstanding common shares), for the three months ended September 30, 2021, an increase of $127,000, or 11.4%. This increase is primarily attributable to an increase in revenue, partially offset by an increase in interest expense.

Total revenues for the three months ended September 30, 2022 were approximately $2,107,000 compared to approximately $1,627,000 for the three months ended September 30, 2021, an increase of $480,000 or 29.5%. The increase in revenue was due to an increase in lending operations. For the three months ended September 30, 2022 and 2021, approximately $1,678,000 and $1,323,000, respectively, of the Company’s revenues were attributable to interest income on secured commercial loans that it offers to real estate investors, and approximately $429,000 and $304,000, 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 nine months ended September 30, 2022 was approximately $4,018,000, or $0.35 per basic and diluted share (based on approximately 11.5 million weighted-average outstanding common shares), as compared to approximately $3,274,000, or $0.32 per basic and diluted share (based on approximately 10.2 million weighted-average outstanding common shares) for the nine months ended September 30, 2021, an increase of $744,000, or 22.7%. This increase is primarily attributable to an increase in revenue, partially offset by increases in interest expense and in general and administrative expenses.

Total revenues for the nine months ended September 30, 2022 were approximately $6,339,000 compared to approximately $5,070,000 for the nine months ended September 30, 2021, an increase of $1,269,000, or 25.0%. The increase in revenue was due to an increase in lending operations. For the nine months ended September 30, 2022 and 2021, revenues of approximately $4,934,000 and $4,190,000, respectively, were attributable to interest income on the secured commercial loans that the Company offers to real estate investors, and approximately $1,405,000 and $880,000, 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.

As of September 30, 2022, total stockholders' equity was approximately $43,100,000.

Assaf Ran, Chairman of the Board and CEO, stated, “As we are adjusting our portfolio to the new environment, we have presented another quarter of strong profitability and no loan defaults. We have paid higher interest on our line of credit, but we are increasing the rates we charge our borrowers. At these times, we believe that our low equity to debt ratio is a major 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 the Company discusses its belief that during these times its low equity to debt ratio is a major strength, it is 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) 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, 2021 and in Part II, Item 1A, of our Quarterly Reports on Form 10-Q for the quarters ended June 30, 2022 and September 30, 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

	September 30, 2022				December 31, 2021
	(unaudited)				(audited)
Assets
Loans receivable	$	72,701,582			$	65,715,364
Interest receivable on loans		1,132,189				955,443
Cash		109,708				142,546
Cash - restricted		433,269				---
Other assets		94,202				64,745
Operating lease right-of-use asset, net		275,937				317,080
Deferred financing costs, net		19,271				10,539
Total assets	$	74,766,158			$	67,205,717
Liabilities and Stockholders’ Equity
Liabilities:
Line of credit	$	23,361,607			$	15,645,970
Senior secured notes (net of deferred financing costs of $265,928 and $322,241, respectively)		5,734,072				5,677,759
Deferred origination fees		642,106				580,461
Accounts payable and accrued expenses		202,059				154,169
Operating lease liability		286,378				324,248
Dividends payable		1,436,868				1,436,868
Total liabilities		31,663,090				23,819,475
Commitments and contingencies
Stockholders’ equity:
Preferred shares - $.01 par value per share; 5,000,000 shares authorized; none issued		---				---
Common shares - $.001 par value per share; 25,000,000 shares authorized; 11,757,058 issued; 11,494,945 outstanding		11,757				11,757
Additional paid-in capital		45,532,544				45,522,746
Treasury shares, at cost – 262,113 shares		(798,939	)			(798,939	)
Accumulated deficit		(1,642,294	)			(1,349,322	)
Total stockholders’ equity		43,103,068				43,386,242
Total liabilities and stockholders’ equity	$	74,766,158			$	67,205,717

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

	Three Months Ended September 30,				Nine Months Ended September 30,
		2022		2021		2021			2022
Interest income from loans	$	1,677,670	$	1,323,085	$	4,933,767		$	4,189,658
Origination fees		429,350		304,297		1,405,076			880,440
Total revenue		2,107,020		1,627,382		6,338,843			5,070,098
Operating costs and expenses:
Interest and amortization of deferred financing costs		496,718		184,914		1,204,954			819,015
Referral fees		625		2,069		3,945			6,463
General and administrative expenses		377,436		335,284		1,125,162			983,867
Total operating costs and expenses		874,779		522,267		2,334,061			1,809,345
Income from operations		1,232,241		1,105,115		4,004,782			3,260,753
Other income		4,500		4,500		13,500			13,500
Income before income tax expense		1,236,741		1,109,615		4,018,282			3,274,253
Income tax expense		---		---		(650	)		(647	)
Net income	$	1,236,741	$	1,109,615	$	4,017,632		$	3,273,606
Basic and diluted net income per common share outstanding:
--Basic	$	0.11	$	0.10	$	0.35		$	0.32
--Diluted	$	0.11	$	0.10	$	0.35		$	0.32
Weighted average number of common shares outstanding
--Basic		11,494,945		11,331,902		11,494,945			10,196,868
--Diluted		11,494,945		11,331,902		11,494,945			10,196,868

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

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2022

	Common Shares			Additional Paid in Capital		Treasury Shares				Accumulated Deficit			Totals
	Shares	Amount				Shares	Cost
Balance, July 1, 2022	11,757,058	$11,757		$45,529,278		262,113	$(798,939)			$(1,442,167)			$43,299,929
Non-cash compensation					3,266									3,266
Dividends declared and payable											(1,436,868)			(1,436,868)
Net income											1,236,741			1,236,741
Balance, September 30, 2022	11,757,058	$11,757		$45,532,544		262,113	$(798,939)			$(1,642,294)			$43,103,068

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2021

	Common Shares			Additional Paid in Capital		Treasury Shares				Retained Earnings			Totals
	Shares	Amount				Shares	Cost
Balance, July 1, 2021	9,882,058	$9,882		$33,163,628		262,113	$(798,939)			$701,948			$33,076,519
Public offering, net	1,875,000		1,875		12,352,585									12,354,460
Non-cash compensation					3,266									3,266
Dividends paid											(1,436,868)			(1,436,868	)
Net income											1,109,615			1,109,615
Balance, September 30, 2021	11,757,058	$11,757		$45,519,479		262,113	$(798,939)			$374,695			$45,106,992

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2022

	Common Shares			Additional Paid in Capital		Treasury Shares				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					9,798									9,798
Dividends paid											(2,873,736)			(2,873,736)
Dividends declared and payable											(1,436,868)			(1,436,868)
Net income											4,017,632			4,017,632
Balance, September 30, 2022	11,757,058	$11,757		$45,532,544		262,113	$(798,939)			$(1,642,294)			$43,103,068

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021

	Common Shares			Additional Paid in Capital		Treasury Shares				(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
Public offering, net	1,875,000		1,875		12,352,585									12,354,460
Non-cash compensation					9,798									9,798
Dividends paid											(2,495,062)			(2,495,062)
Net income											3,273,606			3,273,606
Balance, September 30, 2021	11,757,058	$11,757		$45,519,479		262,113	$(798,939)			$374,695			$45,106,992

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

			Nine Months
			Ended September 30,
				2022				2021
Cash flows from operating activities:
Net income			$	4,017,632			$	3,273,606
Adjustments to reconcile net income to net cash provided by
operating activities -
Amortization of deferred financing costs				83,401				66,324
Adjustment to operating lease right-of-use asset and liability				3,274				2,603
Depreciation				1,598				1,716
Non-cash compensation expense				9,798				9,798
Changes in operating assets and liabilities:
Interest receivable on loans				(176,746	)			(168,148	)
Other assets				(29,164	)			(28,538	)
Accounts payable and accrued expenses				47,890				(92,982	)
Deferred origination fees				61,645				85,945
Net cash provided by operating activities				4,019,328				3,150,324
Cash flows from investing activities:
Issuance of short term loans				(49,241,679	)			(28,534,303	)
Collections received from loans				42,255,461				33,058,052
Purchase of fixed assets				(1,893	)			---
Net cash (used in) provided by investing activities				(6,988,111	)			4,523,749
Cash flows from financing activities:
Proceeds from (repayment of) line of credit, net				7,715,637				(16,824,722	)
Dividends paid				(4,310,604	)			(3,553,256	)
Proceeds from public offering, net				---				12,354,460
Deferred financing costs incurred				(35,819	)			---
Net cash provided by (used in) financing activities				3,369,214				(8,023,518	)
Net increase (decrease) in cash and restricted cash*				400,431				(349,445	)
Cash and restricted cash*, beginning of year				142,546				459,137
Cash and restricted cash*, end of period			$	542,977			$	109,692
Supplemental Cash Flow Information:
Taxes paid during the period			$	650			$	647
Interest paid during the period			$	1,036,338			$	811,610
Operating leases paid during the period			$	47,703			$	47,600
Supplemental Information – Noncash Information:
Dividend declared and payable			$	1,436,868			$	---

* At January 1, 2021 and at September 30, 2022, cash and restricted cash included $327,483 and $433,269, respectively, of restricted cash.

SOURCE: Manhattan Bridge Capital, Inc.

FAQ

What was Manhattan Bridge Capital's net income for Q3 2022?

The net income for Q3 2022 was approximately $1,237,000.

How much did total revenues increase in Q3 2022 for LOAN?

Total revenues increased by 29.5% to approximately $2,107,000.

What are the main sources of revenue for Manhattan Bridge Capital?

The main sources of revenue are interest income on secured commercial loans and origination fees.

What was the net income for the nine months ended September 30, 2022?

Net income for the nine months ended September 30, 2022 was approximately $4,018,000.

Did Manhattan Bridge Capital report any loan defaults?

No, the company reported no loan defaults.