Manhattan Bridge Capital, Inc. Reports Third Quarter 2024 Results
GlobeNewswire Inc.
October 23, 2024 11:05AM GMT
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 | |||||
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 | ||||||||||
| Three MonthsEnded September 30, | Nine MonthsEnded 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 SUBSIDIARYCONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited) | ||||||||
|
| Nine Months | ||||||
|
|
| 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.
