Manhattan Bridge Capital, Inc. Reports Second Quarter 2024 Results

GREAT NECK, N.Y., July 22, 2024 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) (the “Company”) announced today that its total revenues for the three months ended June 30, 2024 were approximately $2,443,000 compared to approximately $2,399,000 for the three months ended June 30, 2023, an increase of $44,000, or 1.8%. 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 three months ended June 30, 2024 and 2023, approximately $2,033,000 and $1,943,000, 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 $411,000 and $457,000, 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, 2024 was approximately $1,409,000, or $0.12 per basic and diluted share (based on approximately 11.44 million weighted-average outstanding common shares), as compared to approximately $1,422,000, or $0.12 per basic and diluted share (based on approximately 11.48 million weighted-average outstanding common shares), for the three months ended June 30, 2023, a decrease of $13,000, or 0.9%.

Total revenues for the six months ended June 30, 2024 were approximately $5,016,000 compared to approximately $4,797,000 for the six months ended June 30, 2023, an increase of $219,000, or 4.6%. 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 six months ended June 30, 2024 and 2023, revenues of approximately $4,175,000 and $3,896,000, respectively, were attributable to interest income on secured commercial loans that the Company offers to real estate investors, and approximately $841,000 and $901,000, 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, 2024 was approximately $2,885,000, or $0.25 per basic and diluted share (based on approximately 11.44 million weighted-average outstanding common shares), as compared to approximately $2,681,000, or $0.23 per basic and diluted share (based on approximately 11.49 million weighted-average outstanding common shares), for the six months ended June 30, 2023, an increase of $204,000, or 7.6%. This increase is primarily attributable to the increase in interest income from loans and the decrease in general and administrative expenses, partially offset by the increase in interest expense.

As of June 30, 2024, total stockholders' equity was approximately $43,184,000.

Assaf Ran, Chairman of the Board and Chief Executive Officer of the Company, stated, “While real estate markets in our geographic areas of operations are still slow and heavy due to the high-interest-rate environment, it seems like prices of real estate properties are holding on and sometimes increasing due to lack of inventory and the impact of inflation. As always, we’re carefully monitoring our portfolio and cherry-picking good opportunities.”

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

 
 June 30, 2024 December 31, 2023
Assets (unaudited)
 (audited)
Loans receivable$66,859,733 $73,048,403
Interest and other fees receivable on loans 1,488,784  1,395,905
Cash        
 105,929  104,222
Cash - restricted ---  1,587,773
Other assets 134,321  63,636
Right-of-use asset - operating lease, net 180,446  207,364
Deferred financing costs, net 23,101  27,583
         Total assets$68,792,314 $76,434,886


Liabilities and Stockholders’ Equity   
Liabilities:   
Line of credit$ 17,345,510 $ 25,152,338
Senior secured notes (net of deferred financing costs of $134,528 and $172,069, respectively)5,865,472 5,827,931
Deferred origination fees646,027 719,019
Accounts payable and accrued expenses242,248 295,292
Operating lease liability193,800 220,527
Dividends payable1,315,445 1,287,073
Total liabilities25,608,502 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, respectively11,757 11,757
Additional paid-in capital45,555,408 45,548,876
Less: Treasury stock, at cost – 318,407 and 316,407 shares, respectively (1,070,406) (1,060,606)
Accumulated deficit (1,312,947) (1,567,321)
Total stockholders’ equity43,183,812 42,932,706
Total liabilities and stockholders’ equity
$
68,792,314
 $

76,434,886




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

 Three Months
Ended June 30,
Six Months
Ended June 30,
  2024  2023  2024  2023 
Revenue:
Interest income from loans


$


2,032,687
 

$


1,942,527
 

$


4,175,174
 

$


3,896,349
 
Origination fees 410,528  456,835  841,119  900,806 
Total revenue 2,443,215  2,399,362  5,016,293  4,797,155 
     
Operating costs and expenses:    
Interest and amortization of deferred financing costs 

603,230
  

595,427
  

1,293,819
  

1,241,690
 
Referral fees 500  1,000  1,000  1,292 
General and administrative expenses 434,282  400,979  844,560  897,075 
Total operating costs and expenses 1,038,012  997,406  2,139,379  2,140,057 
Income from operations 1,405,203  1,401,956  2,876,914  2,657,098 
Other income 4,500  20,380  9,000  24,880 
Income before income tax expense 1,409,703  1,422,336  2,885,914  2,681,978 
Income tax expense (650) (650) (650) (650)
Net income$1,409,053 $1,421,686 $2,885,264 $2,681,328 
     
Basic and diluted net income per common share outstanding:    
--Basic$0.12 $0.12 $0.25 $0.23 
--Diluted$0.12 $0.12 $0.25 $0.23 
     
Weighted average number of common shares outstanding:    
--Basic 11,438,651  11,475,406  11,438,662  11,485,116 
--Diluted 11,438,651  11,475,406  11,438,662  11,485,116 




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

FOR THE THREE MONTHS ENDED JUNE 30, 2024
 Common SharesAdditional Paid in CapitalTreasury StockAccumulated DeficitTotals
 SharesAmount SharesCost  
Balance, April 1, 202411,757,058$11,757$45,552,142318,407$(1,070,406)$(1,406,555)$43,086,938 
Non - cash compensation  3,266   3,266 
Dividends declared and payable     (1,315,445)(1,315,445)
Net income     1,409,053 1,409,053 
Balance, June 30, 202411,757,058$11,757$45,555,408318,407$(1,070,406)$(1,312,947)$43,183,812 



FOR THE THREE MONTHS ENDED JUNE 30, 2024
 Common SharesAdditional Paid in CapitalTreasury StockAccumulated DeficitTotals
 SharesAmount SharesCost  
Balance, April 1, 202311,757,058$11,757$45,539,077262,113$(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, 202411,757,058$11,757$45,542,343295,473$(963,745)$(1,786,337)$42,804,018 



FOR THE SIX MONTHS ENDED JUNE 30, 2024
 Common SharesAdditional Paid in CapitalTreasury StockAccumulated DeficitTotals
 SharesAmount SharesCost  
Balance, January 1, 202411,757,058$11,757$45,548,876316,407$(1,060,606)$(1,567,321) $42,932,706 
Purchase of treasury shares   2,000(9,800) (9,800)
Non - cash compensation  6,532   6,532 
Dividends paid     (1,315,445)(1,315,445)
Dividends declared and payable     (1,315,445)(1,315,445)
Net income     2,885,264 2,885,264 
Balance, June 30, 202411,757,058$11,757$45,555,408318,407$(1,070,406)$(1,312,947)$43,183,812 



FOR THE SIX MONTHS ENDED JUNE 30, 2024
 Common SharesAdditional Paid in CapitalTreasury StockAccumulated DeficitTotals
 SharesAmount SharesCost  
Balance, January 1, 202311,757,058$11,757$45,535,811262,113$(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, 202411,757,058$11,757$45,542,343295,473$(963,745)$(1,786,337)$42,804,018 




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

 
  Six Months
Ended June 30,
 
   2024  2023 
Cash flows from operating activities:     
Net income $ 2,885,264  $ 2,681,328 
Adjustments to reconcile net income to net cash provided by operating activities -       
Amortization of deferred financing costs  44,191  49,494 
Adjustment to right-of-use asset - operating lease and liability  190  1,230 
Depreciation  2,209  1,946 
Non-cash compensation expense  6,532  6,532 
Changes in operating assets and liabilities:       
Interest and other fees receivable on loans (92,879) 89,214 
Other assets (71,703) (72,115)
Accounts payable and accrued expenses (53,044) (58,132)
Deferred origination fees (72,992) 17,853 
Net cash provided by operating activities  2,647,768  2,717,350 
      
Cash flows from investing activities:     
Issuance of short-term loans (19,677,520) (28,122,249)
Collections received from loans  25,866,190  32,811,877 
Purchase of fixed assets (1,191) (5,085)
Net cash provided by investing activities  6,187,479  4,684,543 
      
Cash flows from financing activities:     
Repayment of line of credit, net (7,806,828) (4,323,513)
Dividends paid (2,602,518) (2,730,049)
Purchase of treasury shares (9,800) (164,806)
Deferred financing costs incurred (2,167) (38,191)
Net cash used in financing activities (10,421,313) (7,256,559)
      
Net (decrease) increase in cash (1,586,066) 145,334 
Cash and cash - restricted, beginning of period*  1,691,995  103,540 
Cash, end of period $        105,929  $        248,874 
        
Supplemental Disclosure of Cash Flow Information:       
Cash paid during the period for taxes $ 650  $ 650 
Cash paid during the period for interest $ 1,297,587  $ 1,215,297 
Cash paid during the period for operating leases $ 32,208  $ 31,863 

Supplemental Schedule of Noncash Financing Activities:
       
Dividend declared and payable $1,315,445  $1,289,428 
Loan holdback relating to mortgage receivable ---  $ 17,500 

*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.  

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