Manhattan Bridge Capital, Inc. Reports Third Quarter 2024 Results

Rhea-AI Summary

Manhattan Bridge Capital (NASDAQ: LOAN) reported Q3 2024 financial results with net income of $1,399,000 ($0.12 per share), down 3.3% from $1,446,000 ($0.13 per share) in Q3 2023. Total revenues decreased 5% to $2,313,000, primarily due to reduced loans receivable and slower loan originations, partially offset by higher interest rates. For the nine months ended September 30, 2024, net income increased 3.8% to $4,285,000 ($0.37 per share), with total revenues up 1.4% to $7,330,000. The company noted that a recent 0.5% interest rate reduction has renewed optimism among real estate investors after a slowdown in Q3.

Positive

• Nine-month net income increased 3.8% to $4,285,000
• Nine-month total revenues grew 1.4% to $7,330,000
• Higher interest rates on commercial loans boosted interest income

Negative

• Q3 net income decreased 3.3% to $1,399,000
• Q3 total revenues declined 5% to $2,313,000
• Slowdown in new loan originations impacting origination fees
• Reduction in loans receivable portfolio

Insights

Financial Analyst

Manhattan Bridge Capital's Q3 2024 results show mixed performance with some concerning trends. Net income decreased by 3.3% to $1,399,000, while revenue declined by 5.0% to $2,313,000. The slowdown in new loan originations is particularly noteworthy, reflected in reduced origination fees.

The company's core business of secured commercial real estate loans remains stable, though with decreased loan receivables. Higher interest rates have helped maintain interest income, but haven't fully offset the decline in new business. The nine-month performance shows some resilience with a 3.8% increase in net income, primarily due to higher interest rates on existing loans.

The management's optimism about a potential business revival following the 0.5% interest rate reduction should be viewed cautiously, as real estate investors continue to face challenges in the high-rate environment.

GREAT NECK, N.Y., Oct. 23, 2024 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) (the “Company”) announced today that its net income for the three months ended September 30, 2024 was approximately $1,399,000, or $0.12 per basic and diluted share (based on approximately 11.4 million weighted-average outstanding common shares), as compared to approximately $1,446,000, or $0.13 per basic and diluted share (based on approximately 11.5 million weighted-average outstanding common shares), for the three months ended September 30, 2023, a decrease of $47,000, or 3.3%. This decrease is primarily attributable to a decrease in revenue, partially offset by a decrease in interest expense.

Total revenues for the three months ended September 30, 2024 were approximately $2,313,000 compared to approximately $2,434,000 for the three months ended September 30, 2023, a decrease of $121,000 or 5.0%. The decrease in revenue was due to a reduction in loans receivable, period over period, and reduced origination fees, which were impacted by a slowdown in new loan originations, partially offset by higher interest rates charged on the Company’s commercial loans. For the three months ended September 30, 2024 and 2023, approximately $1,953,000 and $1,992,000, 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 $360,000 and $441,000, 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, 2024 was approximately $4,285,000, or $0.37 per basic and diluted share (based on approximately 11.4 million weighted-average outstanding common shares), as compared to approximately $4,128,000, or $0.36 per basic and diluted share (based on approximately 11.5 million weighted-average outstanding common shares) for the nine months ended September 30, 2023, an increase of $157,000, or 3.8%. This increase is primarily attributable to an increase in interest income from loans, partially offset by a decrease in origination fees.

Total revenues for the nine months ended September 30, 2024 were approximately $7,330,000 compared to approximately $7,231,000 for the nine months ended September 30, 2023, an increase of $99,000, or 1.4%. The increase in revenue was due to higher interest rates charged on the Company’s commercial loans, partially offset by a reduction in loans receivable, period over period, and reduced origination fees, which were impacted by a slowdown in new loan originations. For the nine months ended September 30, 2024 and 2023, revenues of approximately $6,128,000 and $5,889,000, respectively, were attributable to interest income on the secured commercial loans that the Company offers to real estate investors, and approximately $1,201,000 and $1,342,000, 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, 2024, total stockholders' equity was approximately $43,271,000.

Assaf Ran, Chairman of the Board and Chief Executive Officer of the Company, stated, “The recent 0.5% reduction of interest rate regenerated optimism among real estate investors. The burden of high interest started to take its toll on many of them and the pace of new deals during the third quarter declined. Therefore, we experienced a decline in initiation fees. Yet, since we have more deals in the pipeline, I hope to return to the previous pace soon.”

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 contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Because such statements deal with future events and are based on Manhattan Bridge Capital’s current expectations, they are subject to various risks and uncertainties and actual results, performance or achievements of the Company could differ materially from those described in or implied by the statements in this press release. For example, forward-looking statements include statements regarding future deals pipeline and the return to previous deal pace. The forward-looking statements contained or implied in this press release are subject to risks and uncertainties, including the risk factors discussed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC and in subsequent filings with the SEC. Except as otherwise required by law, the Company disclaims any intention or obligation to update or revise any forward-looking statements, which speak only as of the date they were made, whether as a result of new information, future events or circumstances or otherwise.

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS
Assets	September 30, 2024 (unaudited)			December 31, 2023 (audited)
Loans receivable	$	68,711,438		$	73,048,403
Interest and other fees receivable on loans		1,536,643			1,395,905
Cash		167,863			104,222
Cash - restricted		---			1,587,773
Other assets		99,180			63,636
Right-of-use asset - operating lease, net		167,243			207,364
Deferred financing costs, net		19,636			27,583
Total assets	$	70,702,003		$	76,434,886

Liabilities and Stockholders’ Equity

Liabilities:
Line of credit	$	19,170,268			$	25,152,338
Senior secured notes (net of deferred financing costs of $115,756 and $172,069, respectively)		5,884,244				5,827,931
Deferred origination fees		618,812				719,019
Accounts payable and accrued expenses		211,786				295,292
Operating lease liability		180,529				220,527
Loan holdback		50,000				---
Dividends payable		1,315,445				1,287,073
Total liabilities		27,431,084				33,502,180
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; 11,438,651 and 11,440,651 outstanding, respectively		11,757				11,757
Additional paid-in capital		45,558,674				45,548,876
Less: Treasury stock, at cost – 318,407 and 316,407 shares, respectively		(1,070,406	)			(1,060,606	)
Accumulated deficit		(1,229,106	)			(1,567,321	)
Total stockholders’ equity		43,270,919				42,932,706
Total liabilities and stockholders’ equity	$	70,702,003			$	76,434,886

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024			2023
Revenue: Interest income from loans	$	1,952,957	$	1,992,495	$	6,128,131		$	5,888,843
Origination fees		360,376		441,271		1,201,494			1,342,077
Total revenue		2,313,333		2,433,766		7,329,625			7,230,920
Operating costs and expenses:
Interest and amortization of deferred financing costs		537,218		614,389		1,831,037			1,856,079
Referral fees		847		361		1,847			1,652
General and administrative expenses		380,482		377,192		1,225,041			1,274,267
Total operating costs and expenses		918,547		991,942		3,057,925			3,131,998
Income from operations		1,394,786		1,441,824		4,271,700			4,098,922
Other income		4,500		4,500		13,500			29,380
Income before income tax expense		1,399,286		1,446,324		4,285,200			4,128,302
Income tax expense		---		---		(650	)		(650	)
Net income	$	1,399,286	$	1,446,324	$	4,284,550		$	4,127,652
Basic and diluted net income per common share outstanding:
--Basic	$	0.12	$	0.13	$	0.37		$	0.36
--Diluted	$	0.12	$	0.13	$	0.37		$	0.36
Weighted average number of common shares outstanding
--Basic		11,438,651		11,461,052		11,438,658			11,477,133
--Diluted		11,438,651		11,461,052		11,438,658			11,477,133

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

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2024

	Common Shares			Additional Paid in Capital		Treasury Shares				Accumulated Deficit			Totals
	Shares	Amount				Shares	Cost
Balance, July 1, 2024	11,757,058	$11,757		$45,555,408		318,407	$(1,070,406		)	$(1,312,947		)	$43,183,812
Non-cash compensation					3,266									3,266
Dividends declared and payable											(1,315,445	)		(1,315,445	)
Net income											1,399,286			1,399,286
Balance, September 30, 2024	11,757,058	$11,757		$45,558,674		318,407	$(1,070,406		)	$(1,229,106		)	$ 43,270,919

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 NINE MONTHS ENDED SEPTEMBER 30, 2024

	Common Shares			Additional Paid in Capital		Treasury Shares				Accumulated Deficit			Totals
	Shares	Amount				Shares	Cost
Balance, January 1, 2024	11,757,058	$	11,757	$	45,548,876	316,407	$	(1,060,606	)	$	(1,567,321	)	$	42,932,706
Purchase of treasury shares						2,000		(9,800	)					(9,800	)
Non-cash compensation					9,798									9,798
Dividends paid											(2,630,890	)		(2,630,890	)
Dividends declared and payable											(1,315,445	)		(1,315,445	)
Net income											4,284,550			4,284,550
Balance, September 30, 2024	11,757,058	$	11,757	$	45,558,674	318,407	$	(1,070,406	)	$	(1,229,106	)	$	43,270,919

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

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
		Nine Months Ended September 30,
			2024				2023
Cash flows from operating activities:
Net income		$	4,284,550			$	4,127,652
Adjustments to reconcile net income to net cash provided by operating activities -
Amortization of deferred financing costs			66,427				71,449
Adjustment to right-of-use asset - operating lease and liability			121				1,636
Depreciation			3,480				3,001
Non-cash compensation expense			9,798				9,798
Changes in operating assets and liabilities:
Interest and other fees receivable on loans			(140,738	)			14,128
Other assets			(35,005	)			(38,381	)
Accounts payable and accrued expenses			(83,505	)			(53,682	)
Deferred origination fees			(100,207	)			1,167
Net cash provided by operating activities			4,004,921				4,136,768
Cash flows from investing activities:
Issuance of short-term loans			(29,362,922	)			(40,810,565	)
Collections received from loans			33,749,887				44,512,989
Purchase of fixed assets			(4,018	)			(5,085	)
Net cash provided by investing activities			4,382,947				3,697,339
Cash flows from financing activities:
Repayment of line of credit, net			(5,982,070	)			(3,561,140	)
Dividends paid			(3,917,963	)			(4,019,478	)
Purchase of treasury shares			(9,800	)			(185,691	)
Deferred financing costs incurred			(2,167	)			(38,191	)
Net cash used in financing activities			(9,912,000	)			(7,804,500	)
Net (decrease) increase in cash			(1,524,132	)			29,607
Cash and cash - restricted, beginning of period*			1,691,995				103,540
Cash, end of period		$	167,863			$	133,147
Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for taxes		$	650			$	650
Cash paid during the period for interest		$	1,816,980			$	1,797,254
Cash paid during the period for operating leases		$	47,779			$	47,822
Supplemental Schedule of Noncash Financing Activities:
Dividend declared and payable		$	1,315,445			$	1,288,753
Loan holdback relating to mortgage receivable		$	50,000			$	---

*At December 31, 2023, cash and restricted cash consisted of $1,587,773 of restricted cash.

Contact:
Assaf Ran, CEO
Vanessa Kao, CFO
(516) 444-3400
SOURCE: Manhattan Bridge Capital, Inc.

FAQ

What was Manhattan Bridge Capital's (LOAN) Q3 2024 earnings per share?

Manhattan Bridge Capital reported earnings of $0.12 per basic and diluted share for Q3 2024.

How much did Manhattan Bridge Capital's (LOAN) revenue decline in Q3 2024?

Total revenues decreased by $121,000 or 5.0%, from $2,434,000 in Q3 2023 to $2,313,000 in Q3 2024.

What was Manhattan Bridge Capital's (LOAN) total stockholders' equity as of September 30, 2024?

Total stockholders' equity was approximately $43,271,000 as of September 30, 2024.

How did Manhattan Bridge Capital's (LOAN) nine-month performance compare to 2023?

Net income for the nine months ended September 30, 2024, increased by 3.8% to $4,285,000, with revenues up 1.4% to $7,330,000 compared to the same period in 2023.