GREAT NECK, N.Y., April 25, 2017 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (NASDAQ: LOAN ) announced today that total revenue for the three month period ended March 31, 2017 was approximately $1,330,000 compared to approximately $1,105,000 for the three month period ended March 31, 2016, an increase of $225,000, or 20.4%. The increase in revenue represents an increase in lending operations. In 2017, approximately $1,106,000 of the Company’s revenue represents interest income on secured, commercial loans that it offers to small businesses compared to approximately $914,000 for the same period in 2016, and approximately $223,000 represents origination fees on such loans compared to approximately $190,000 for the same period in 2016. The loans are principally secured by collateral consisting of real estate and, generally, accompanied by personal guarantees from the principals of the businesses.
Net income for the three month period ended March 31, 2017 was approximately $791,000, or $0.10 per basic and diluted share (based on approximately 8.1 million and 8.2 million weighted-average outstanding common shares, respectively), versus approximately $695,000, or $0.10 per basic and diluted share (based on approximately 7.3 million weighted-average outstanding common shares). This increase is primarily attributable to the increase in revenue, offset by an increase in operating expenses.
As of March 31, 2017, total stockholders' equity was approximately $23,108,000 compared to approximately $22,314,000 as of December 31, 2016, an increase of $794,000.
On March 14, 2017, the Company’s Board of Directors authorized a common stock repurchase allowing the buyback of up to 100,000 shares of the company’s common stock in market or off-market transactions at prevailing prices over the next twelve months. The manner, timing and number of shares purchased will be at the Company’s discretion. As of March 31, 2017, the Company had not yet repurchased any shares.
Assaf Ran, Chairman of the Board and CEO, stated, “As we present another quarter of record high revenue and net earnings, the Company once again demonstrates strength, stability and, most importantly, responsibility. The numbers speak for themselves. As a CEO with unprecedented personal commitment and a major shareholder of the Company, I am proud of our achievements to date, and am determined to achieve continued success,” 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. We operate the web site: http://www.manhattanbridgecapital.com
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| Assets | March 31, 2017 (unaudited) | December 31, 2016 (audited) | ||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 120,659 | $ | 96,299 | ||||
| Cash - restricted | 202,061 | --- | ||||||
| Short term loans receivable | 26,699,500 | 27,495,500 | ||||||
| Interest receivable on loans | 385,166 | 346,519 | ||||||
| Other current assets | 49,991 | 29,397 | ||||||
| Total current assets | 27,457,377 | 27,967,715 | ||||||
| Long term loans receivable | 8,504,820 | 7,259,820 | ||||||
| Property and equipment, net Security deposit | 6,922 6,816 | 7,980 6,816 | ||||||
| Investment in privately held company | 35,000 | 35,000 | ||||||
| Deferred financing costs | 44,151 | 56,193 | ||||||
| Total assets | $ | 36,055,086 | $ | 35,333,524 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Line of credit | $ | 7,217,047 | $ | 6,482,848 | ||||
| Accounts payable and accrued expenses | 82,614 | 105,541 | ||||||
| Deferred origination fees | 326,018 | 315,411 | ||||||
| Dividends payable | --- | 813,503 | ||||||
| Total current liabilities | 7,625,679 | 7,717,303 | ||||||
| Long term liabilities: | ||||||||
| Senior secured notes (net of deferred financing costs of $678,898 and $697,669, respectively) | 5,321,102 | 5,302,331 | ||||||
| Total liabilities | 12,946,781 | 13,019,634 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity: | ||||||||
| Preferred shares - $.01 par value; 5,000,000 shares authorized; no shares issued | --- | --- | ||||||
| Common shares - $.001 par value; 25,000,000 authorized; 8,312,036 issued; 8,135,036 outstanding | 8,312 | 8,312 | ||||||
| Additional paid-in capital | 23,137,279 | 23,134,013 | ||||||
| Treasury stock, at cost - 177,000 | (369,335 | ) | (369,335 | ) | ||||
| Retained earnings (Accumulated deficit) | 332,049 | (459,100 | ) | |||||
| Total stockholders' equity | 23,108,305 | 22,313,890 | ||||||
| Total liabilities and stockholders' equity | $ | 36,055,086 | $ | 35,333,524 | ||||
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES | |||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||
| (unaudited) | |||||
| Three Months Ended March 31, | |||||
| 2017 | 2016 | ||||
| Interest income from loans | $ | 1,106,180 | $ | 914,309 | |
| Origination fees | 223,425 | 190,281 | |||
| Total revenue | 1,329,605 | 1,104,590 | |||
| Operating costs and expenses: | |||||
| Interest and amortization of deferred financing costs | 231,582 | 179,550 | |||
| Referral fees | 1,360 | 1,369 | |||
| General and administrative expenses | 305,514 | 227,839 | |||
| Total operating costs and expenses | 538,456 | 408,758 | |||
| Income from operations before income tax expense | 791,149 | 695,832 | |||
| Income tax expense | --- | (508 | ) | ||
| Net income | $ | 791,149 | $ | 695,324 | |
| Basic and diluted net income per common share outstanding: | |||||
| --Basic | $ | 0.10 | $ | 0.10 | |
| --Diluted | $ | 0.10 | $ | 0.10 | |
| Weighted average number of common shares outstanding: | |||||
| --Basic | 8,135,036 | 7,264,039 | |||
| --Diluted | 8,158,316 | 7,292,372 | |||
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES | ||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (unaudited) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2017 | 2016 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 791,149 | $ | 695,324 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities - | ||||||||
| Amortization of deferred financing costs | 30,813 | 12,041 | ||||||
| Depreciation | 1,058 | 862 | ||||||
| Non cash compensation expense | 3,266 | 3,397 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Interest receivable on loans | (38,647 | ) | 17,764 | |||||
| Other current and non current assets | (20,594 | ) | (16,063 | ) | ||||
| Accounts payable and accrued expenses | (22,927 | ) | 28,135 | |||||
| Deferred origination fees | 10,607 | (30,424 | ) | |||||
| Net cash provided by operating activities | 754,725 | 711,036 | ||||||
| Cash flows from investing activities: | ||||||||
| Issuance of short term loans | (9,556,000 | ) | (5,913,500 | ) | ||||
| Collections received from loans | 9,107,000 | 7,808,990 | ||||||
| Purchase of fixed assets | --- | (1,038 | ) | |||||
| Net cash (used in) provided by investing activities | (449,000 | ) | 1,894,452 | |||||
| Cash flows from financing activities: | ||||||||
| Proceeds from (repayment of) line of credit | 734,199 | (1,170,601 | ) | |||||
| Cash restricted for reduction of line of credit | (202,061 | ) | (464,889 | ) | ||||
| Repayment of short-term loan | --- | (235,000 | ) | |||||
| Deferred financing costs | --- | (163,112 | ) | |||||
| Dividend paid | (813,503 | ) | (617,443 | ) | ||||
| Net cash used in financing activities | (281,365 | ) | (2,651,045 | ) | ||||
| Net increase (decrease) in cash and cash equivalents | 24,360 | (45,557 | ) | |||||
| Cash and cash equivalents, beginning of period | 96,299 | 106,836 | ||||||
| Cash and cash equivalents, end of period | $ | 120,659 | $ | 61,279 | ||||
| Supplemental Cash Flow Information: | ||||||||
| Taxes paid during the period | $ | --- | $ | 508 | ||||
| Interest paid during the period | $ | 192,231 | $ | 176,799 | ||||
