Manhattan Bridge Capital, Inc. Reports Third Quarter 2023 Results

Rhea-AI Summary

Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced an increase in net income and total revenues for the three and nine months ended September 30, 2023 compared to the same periods in 2022. The increase is primarily due to higher interest income from loans. The company also disclosed a share buyback program.

Positive

• Net income for the three months ended September 30, 2023 increased by 16.9% to approximately $1,446,000, or $0.13 per share, compared to the same period in 2022. Total revenues for the three months increased by 15.5% to approximately $2,434,000. Net income for the nine months ended September 30, 2023 increased by 2.7% to approximately $4,128,000, or $0.36 per share, compared to the same period in 2022. Total revenues for the nine months increased by 14.1% to approximately $7,231,000. The company has also purchased 37,860 common shares under its share buyback program, at a cost of approximately $186,000.

Negative

• None.

GREAT NECK, N.Y., Oct. 24, 2023 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) (the “Company”) announced today that its net income for the three months ended September 30, 2023 was approximately $1,446,000, or $0.13 per basic and diluted share (based on approximately 11.5 million weighted-average outstanding common shares), as compared to approximately $1,237,000, or $0.11 per basic and diluted share (based on approximately 11.5 million weighted-average outstanding common shares), for the three months ended September 30, 2022, an increase of $209,000, or 16.9%. This increase is primarily attributable to an increase in interest income from loans, partially offset by an increase in interest expense.

Total revenues for the three months ended September 30, 2023 were approximately $2,434,000 compared to approximately $2,107,000 for the three months ended September 30, 2022, an increase of $327,000, or 15.5%. The increase in revenues was due to higher interest rates charged on the Company’s commercial loans. For the three months ended September 30, 2023 and 2022, approximately $1,992,000 and $1,678,000, 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 $441,000 and $429,000, 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, 2023 was approximately $4,128,000, or $0.36 per basic and diluted share (based on approximately 11.5 million weighted-average outstanding common shares), as compared to approximately $4,018,000, or $0.35 per basic and diluted share (based on approximately 11.5 million weighted-average outstanding common shares) for the nine months ended September 30, 2022, an increase of $110,000, or 2.7%. This increase is primarily attributable to an increase in interest income from loans, partially offset by an increase in interest expense.

Total revenues for the nine months ended September 30, 2023 were approximately $7,231,000 compared to approximately $6,339,000 for the nine months ended September 30, 2022, an increase of $892,000, or 14.1%. The increase in revenues was due to higher interest rates charged on the Company’s commercial loans. For the nine months ended September 30, 2023 and 2022, revenues of approximately $5,889,000 and $4,934,000, respectively, were attributable to interest income on the secured commercial loans that the Company offers to real estate investors, and approximately $1,342,000 and $1,405,000, 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, 2023, total stockholders' equity was approximately $42,944,000.

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 September 30, 2023, the Company has purchased an aggregate of 37,860 common shares under this repurchase program, at an aggregate cost of approximately $186,000.

Assaf Ran, Chairman of the Board and Chief Executive Officer of the Company, stated, “In the current real estate market condition, we are reaping the fruits of our disciplined and conservative underwriting practices as well as our extraordinary low leverage versus our peers. Due to the high interest rates environment, real estate markets are slower and heavier. Yet, we face less competition, so we have managed to remain active.”

“I’d like to offer my sincere condolences to the families of the victims of the evil massacre of innocent Israeli citizens, including babies, children and women by the terror organization Hamas, and I pray for fast recovery of the wounded and the return of the over 200 hostages,” 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.

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS
Assets	September 30, 2023 (unaudited)				December 31, 2022 (audited)
Loans receivable	$	70,781,039			$	74,483,463
Interest receivable on loans		1,349,374				1,363,502
Cash		133,147				103,540
Other assets		100,030				59,566
Operating lease right-of-use asset, net		221,079				262,222
Deferred financing costs, net		30,765				7,708
Total assets	$	72,615,434			$	76,280,001

Liabilities and Stockholders’ Equity
Liabilities:
Line of credit	$	21,433,094			$	24,994,234
Senior secured notes (net of deferred financing costs of $190,842 and $247,155, respectively)		5,809,158				5,752,845
Deferred origination fees		670,295				669,128
Accounts payable and accrued expenses		236,186				289,868
Operating lease liability		233,978				273,485
Dividends payable		1,288,753				1,436,868
Total liabilities		29,671,464				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; 11,457,085 and 11,494,945 outstanding, respectively		11,757				11,757
Additional paid-in capital		45,545,609				45,535,811
Treasury stock, at cost – 299,973 and 262,113 shares, respectively		(984,630	)			(798,939	)
Accumulated deficit		(1,628,766	)			(1,885,056	)
Total stockholders’ equity		42,943,970				42,863,573
Total liabilities and stockholders’ equity	$	72,615,434			$	76,280,001

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
	Three Months Ended September 30,						Nine Months Ended September 30,
		2023			2022			2023			2022
Interest income from loans	$	1,992,495		$	1,677,670		$	5,888,843		$	4,933,767
Origination fees		441,271			429,350			1,342,077			1,405,076
Total revenue		2,433,766			2,107,020			7,230,920			6,338,843
Operating costs and expenses:
Interest and amortization of deferred financing costs		614,389			496,718			1,856,079			1,204,954
Referral fees		361			625			1,652			3,945
General and administrative expenses		377,192			377,436			1,274,267			1,125,162
Total operating costs and expenses		991,942			874,779			3,131,998			2,334,061
Income from operations		1,441,824			1,232,241			4,098,922			4,004,782
Other income		4,500			4,500			29,380			13,500
Income before income tax expense		1,446,324			1,236,741			4,128,302			4,018,282
Income tax expense		---			---			(650	)		(650	)
Net income	$	1,446,324		$	1,236,741		$	4,127,652		$	4,017,632
Basic and diluted net income per common share outstanding:
--Basic	$	0.13		$	0.11		$	0.36		$	0.35
--Diluted	$	0.13		$	0.11		$	0.36		$	0.35
Weighted average number of common shares outstanding
--Basic		11,461,052			11,494,945			11,477,133			11,494,945
--Diluted		11,461,052			11,494,945			11,477,133			11,494,945

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (unaudited)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2023
	Common Shares		Additional Paid in Capital	Treasury Shares		Accumulated Deficit	Totals
	Shares	Amount		Shares	Cost
Balance, July 1, 2023	11,757,058	$11,757	$45,542,343	295,473	$(963,745)	$(1,786,337)	$42,804,018
Purchase of treasury shares				4,500	(20,885)		(20,885)
Non-cash compensation			3,266				3,266
Dividends declared and payable						(1,288,753)	(1,288,753)
Net income						1,446,324	1,446,324
Balance, September 30, 2023	11,757,058	$11,757	$45,545,609	299,973	$(984,630)	$(1,628,766)	$42,943,970

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 NINE MONTHS ENDED SEPTEMBER 30, 2023
	Common Shares		Additional Paid in Capital	Treasury Shares		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				37,860	(185,691)		(185,691)
Non-cash compensation			9,798				9,798
Dividends paid						(2,582,609)	(2,582,609)
Dividends declared and payable						(1,288,753)	(1,288,753)
Net income						4,127,652	4,127,652
Balance, September 30, 2023	11,757,058	$11,757	$45,545,609	299,973	$(984,630)	$(1,628,766)	$42,943,970

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

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
		Nine Months Ended September 30,
			2023				2022
Cash flows from operating activities:
Net income		$	4,127,652			$	4,017,632
Adjustments to reconcile net income to net cash provided by operating activities -
Amortization of deferred financing costs			71,449				83,401
Adjustment to operating lease right-of-use asset and liability			1,636				3,274
Depreciation			3,001				1,598
Non-cash compensation expense			9,798				9,798
Changes in operating assets and liabilities:
Interest receivable on loans			14,128				(176,746	)
Other assets			(38,381	)			(29,164	)
Accounts payable and accrued expenses			(53,682	)			47,890
Deferred origination fees			1,167				61,645
Net cash provided by operating activities			4,136,768				4,019,328
Cash flows from investing activities:
Issuance of short term loans			(40,810,565	)			(49,241,679	)
Collections received from loans			44,512,989				42,255,461
Purchase of fixed assets			(5,085	)			(1,893	)
Net cash provided by (used in) investing activities			3,697,339				(6,988,111	)
Cash flows from financing activities:
(Repayment of) proceeds from line of credit, net			(3,561,140	)			7,715,637
Dividends paid			(4,019,478	)			(4,310,604	)
Purchase of treasury shares			(185,691	)			---
Deferred financing costs incurred			(38,191	)			(35,819	)
Net cash (used in) provided by financing activities			(7,804,500	)			3,369,214
Net increase in cash and restricted cash*			29,607				400,431
Cash and restricted cash*, beginning of year			103,540				142,546
Cash and restricted cash*, end of period		$	133,147			$	542,977
Supplemental Cash Flow Information:
Taxes paid during the period		$	650			$	650
Interest paid during the period		$	1,797,254			$	1,036,338
Operating leases paid during the period		$	47,822			$	47,703
Supplemental Information – Noncash Information:
Dividend declared and payable		$	1,288,753			$	1,436,868
* At September 30, 2022, cash and restricted cash included $433,269 of restricted cash.

FAQ

What is the net income for the three months ended September 30, 2023?

The net income for the three months ended September 30, 2023 was approximately $1,446,000.

What is the total revenue for the nine months ended September 30, 2023?

The total revenue for the nine months ended September 30, 2023 was approximately $7,231,000.

How many common shares has the company purchased under its share buyback program?

The company has purchased 37,860 common shares under its share buyback program.

What is the cost of the common shares purchased under the share buyback program?

The cost of the common shares purchased under the share buyback program is approximately $186,000.