GlobeNewswire Inc | Oct 20, 2021 07:05AM EDT

October 20, 2021

GREAT NECK, N.Y., Oct. 20, 2021 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that its net income for the three months ended September 30, 2021 was approximately $1,110,000, or $0.10 per basic and diluted share (based on approximately 11.3 million weighted-average outstanding common shares), as compared to approximately $1,151,000, or $0.12 per basic and diluted share (based on approximately 9.6 million weighted-average outstanding common shares), for the three months ended September 30, 2020. The decrease is primarily attributable to a decrease in interest income from loans, partially offset by a decrease in interest expense.

Total revenues for the three months ended September 30, 2021 were approximately $1,627,000, as compared to approximately $1,786,000 for the three months ended September 30, 2020, a decrease of $159,000 or 8.9%. The decrease in revenue was primarily attributable to lower interest rates charged on loans due to market conditions and intense competition from other lenders, partially offset by an increase in origination fees. For the three months ended September 30, 2021 and 2020, approximately $1,323,000 and $1,521,000, respectively, of our revenues were attributable to interest income on secured commercial loans that we offer to real estate investors, and approximately $304,000 and $265,000, respectively, of our 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, 2021 was approximately $3,274,000, or $0.32 per basic and diluted share (based on approximately 10.2 million weighted-average outstanding common shares), as compared to approximately $3,264,000, or $0.34 per basic and diluted share (based on approximately 9.6 million weighted-average outstanding common shares) for the nine months ended September 30, 2020, an increase of $10,000. This increase is primarily attributable to a decrease in interest expense, offset by a decrease in revenue.

Total revenues for the nine months ended September 30, 2021 were approximately $5,070,000 compared to approximately $5,239,000 for the nine months ended September 30, 2020, a decrease of $169,000, or 3.2%. The decrease in revenue was primarily attributable to lower interest rates charged on loans due to market conditions and intense competition from other lenders, partially offset by an increase in origination fees. For the nine months ended September 30, 2021 and 2020, revenues of approximately $4,190,000 and $4,485,000, respectively, were attributable to interest income on the secured commercial loans that we offer to real estate investors, and approximately $880,000 and $753,000, respectively, of our 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 previously announced, on July 9, 2021, we completed an underwritten public offering of 1,875,000 of our common shares at a public offering price of $7.20 per share. The gross proceeds raised by us in the offering were $13,500,000, before deducting underwriting discounts and commissions and other estimated offering expenses. The total net proceeds from the offering of approximately $12,354,000 were used to reduce the outstanding balance of our existing credit line. We granted the underwriters a 30-day option to purchase up to an additional 281,250 of our common shares to cover over-allotments, if any. The option expired unexercised in August 2021.

As of September 30, 2021, total stockholders' equity was approximately $45,107,000, compared to approximately $31,964,000 as of December 31, 2020.

Assaf Ran, Chairman of the Board and CEO, stated, Immediately after the successful public offering at the beginning of the third quarter, we accelerated sales efforts and closed approximately 60% more loans versus the first and second quarters of 2021 on an aggregate basis. However, the amount of loans that was repaid quickly was also unusually high, reflecting what we believe is a strong and liquid portfolio. In addition, we are experiencing a competitive market and see continued pressure on interest rates. Furthermore, our sales team is now larger and generating more loans, and as we have access to more capital, I believe that were on the right track to increase the scale of the portfolio. You may have noticed that I agreed to forgo my salary for the fourth quarter. The reason for that is to try to avoid a return of capital in our dividend distribution, as we paid the July 15th dividend to the new shareholders before we had an opportunity to deploy the new funds. Most importantly, once again, we have had no defaults since inception, added Mr. Ran.

About Manhattan Bridge Capital, Inc.

Manhattan Bridge Capital, Inc. offers short-term secured, nonbanking 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 and the statements of our representatives related thereto contain or may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the generality of the foregoing, words such as plan, project, potential, seek, may, will, expect, believe, anticipate, intend, could, estimate, or continue are intended to identify forward-looking statements. For example, when we discuss our belief that the high amount of loan repayments reflects a strong and liquid portfolio and the belief that we are on the right track to increase the scale of the portfolio, we are using forward-looking statements. Readers are cautioned that certain important factors may affect the Companys actual results and could cause such results to differ materially from any forward-looking statements that may be made in this news release. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from those projected, expressed or implied in the forward-looking statements as a result of various factors, including but not limited to the following: (i) our loan origination activities, revenues and profits are limited by available funds; (ii) we operate in a highly competitive market and competition may limit our ability to originate loans with favorable interest rates; (iii) our Chief Executive Officer is critical to our business and our future success may depend on our ability to retain him; (iv) if we overestimate the yields on our loans or incorrectly value the collateral securing the loan, we may experience losses; (v) we may be subject to lender liability claims; (vi) our due diligence may not uncover all of a borrowers liabilities or other risks to its business; (vii) borrower concentration could lead to significant losses; (viii) we may choose to make distributions in our own stock, in which case you may be required to pay income taxes in excess of the cash dividends you receive and (ix) if the effect of the COVID-19 pandemic on our business is greater than anticipated. The risk factors contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 filed with the Securities and Exchange Commission identify important factors that could cause such differences. These forward-looking statements speak only as of the date of this press release, and we caution potential investors not to place undue reliance on such statements. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARYCONSOLIDATED BALANCE SHEETS

September 30, December 31, 2021 2020 (unaudited) (audited)Assets Loans receivable $ 53,574,221 $ 58,097,970 Interest receivable on loans 995,384 827,236 Cash 109,692 131,654 Cash - restricted -- 327,483 Other assets 93,387 66,566 Operating lease right-of-use asset, net 330,795 369,699 Deferred financing costs, net 12,798 22,807 Total assets $ 55,116,277 $ 59,843,415 Liabilities and Stockholders? Equity Liabilities: Line of credit $ 3,484,151 $ 20,308,873 Senior secured notes (net of deferred financing 5,658,987 5,602,673 costs of $341,013 and $397,327, respectively)Deferred origination fees 453,583 367,638 Accounts payable and accrued expenses 75,958 168,940 Operating lease liability 336,606 372,907 Dividends payable -- 1,058,194 Total liabilities 10,009,285 27,879,225 Commitments and contingencies Stockholders? equity: Preferred stock - $.01 par value; 5,000,000 -- -- shares authorized; none issued Common stock - $.001 par value; 25,000,000shares authorized; 11,757,058 and 9,882,058 11,757 9,882 issued; 11,494,945 and 9,619,945 outstandingAdditional paid-in capital 45,519,479 33,157,096 Treasury stock, at cost ? 262,113 shares (798,939 ) (798,939 )Retained earnings (accumulated deficit) 374,695 (403,849 )Total stockholders? equity 45,106,992 31,964,190 Total liabilities and stockholders? equity $ 55,116,277 $ 59,843,415





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

Three Months Nine Months Ended September 30, Ended September 30, 2021 2020 2021 2020 Interest income $ 1,323,085 $ 1,521,474 $ 4,189,658 $ 4,485,414 from loansOrigination fees 304,297 264,878 880,440 753,111 Total revenue 1,627,382 1,786,352 5,070,098 5,238,525 Operating costs and expenses:Interest andamortization of 184,914 337,901 819,015 1,016,590 deferred financingcostsReferral fees 2,069 1,641 6,463 3,569 General andadministrative 335,284 305,407 983,867 968,914 expensesTotal operating 522,267 644,949 1,809,345 1,989,073 costs and expensesIncome from 1,105,115 1,141,403 3,260,753 3,249,452 operationsOther income 4,500 9,500 13,500 15,500 Income before 1,109,615 1,150,903 3,274,253 3,264,952 income tax expenseIncome tax expense -- -- (647 ) (645 )Net income $ 1,109,615 $ 1,150,903 $ 3,273,606 $ 3,264,307 Basic and dilutednet income per common shareoutstanding:--Basic $ 0.10 $ 0.12 $ 0.32 $ 0.34 --Diluted $ 0.10 $ 0.12 $ 0.32 $ 0.34 Weighted averagenumber of common shares outstanding--Basic 11,331,902 9,625,140 10,196,868 9,635,107 --Diluted 11,331,902 9,625,140 10,196,868 9,635,107

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

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2021

Additional Retained Common Shares Paid Treasury Stock Earnings Totals in Capital Shares Amount Shares Cost Balance, 9,882,058 $ 9,882 $ 33,163,628 262,113 $ (798,939 ) $ 701,948 $ 33,076,519 July 1, 2021Publicoffering, 1,875,000 1,875 12,352,585 12,354,460 netNon-cash 3,266 3,266 compensationDividends (1,436,868 ) (1,436,868 )paidNet income 1,109,615 1,109,615 Balance,September 11,757,058 $ 11,757 $ 45,519,479 262,113 $ (798,939 ) $ 374,695 $ 45,106,992 30, 2021

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2020

Additional Retained Common Shares Paid Treasury Stock Earnings Totals in Capital Shares Amount Shares Cost Balance, 9,882,058 $ 9,882 $ 33,150,564 255,213 $ (771,559 ) $ 463,050 $ 32,851,937 July 1, 2020Purchase oftreasury 6,900 (27,380 ) (27,380 )sharesNon-cash 3,266 3,266 compensationDividends (962,684 ) (962,684 )paidNet income 1,150,903 1,150,903 Balance,September 9,882,058 $ 9,882 $ 33,153,830 262,113 $ (798,939 ) $ 651,269 $ 33,016,042 30, 2020

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021

Additional Accumulated Common Shares Paid Treasury Stock Deficit Totals in Capital (Retained Earnings) Shares Amount Shares Cost Balance,January 1, 9,882,058 $ 9,882 $ 33,157,096 262,113 $ (798,939 ) $ (403,849 ) $ 31,964,190 2021Publicoffering, 1,875,000 1,875 12,352,585 12,354,460 netNon-cash 9,798 9,798 compensationDividends (2,495,062 ) (2,495,062 )paidNet income 3,273,606 3,273,606 Balance,September 11,757,058 $ 11,757 $ 45,519,479 262,113 $ (798,939 ) $ 374,695 $ 45,106,992 30, 2021

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020

Additional Accumulated Common Shares Paid Treasury Stock Deficit Totals in Capital (Retained Earnings) Shares Amount Shares Cost Balance,January 1, 9,882,058 $ 9,882 $ 33,144,032 223,214 $ (619,688 ) $ (590,808 ) $ 31,943,418 2020Non-cash 9,798 9,798 compensationPurchase oftreasury 38,899 (179,251 ) (179,251 )sharesDividends (2,022,230 ) (2,022,230 )paidNet income 3,264,307 3,264,307 Balance,September 9,882,058 $ 9,882 $ 33,153,830 262,113 $ (798,939 ) $ 651,269 $ 33,016,042 30, 2020

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

Nine Months Ended September 30, 2021 2020 Cash flowsfrom operatingactivities:Net income $ 3,273,606 $ 3,264,307 Adjustmentsto reconcilenet incometo net cash provided byoperatingactivities -Amortizationof deferred 66,324 76,136 financingcostsAdjustmentto operatinglease 2,603 (333 )right-of-useasset andliabilityDepreciation 1,716 744 Non-cashcompensation 9,798 9,798 expenseChanges inoperating assets andliabilities:Interestreceivable (168,148 ) (163,650 )on loansOther assets (28,538 ) (35,156 )Accountspayable and (92,982 ) (19,241 )accruedexpensesDeferredorigination 85,945 130,795 feesNet cashprovided by 3,150,324 3,263,400 operatingactivities Cash flowsfrom investingactivities:Issuance ofshort term (28,534,303 ) (35,410,076 )loansCollectionsreceived 33,058,052 31,041,693 from loansRelease ofloanholdback -- (15,000 )relating tomortgagereceivablePurchase of -- (923 )fixed assetsNet cashprovided by(used in) 4,523,749 (4,384,306 )investingactivities Cash flowsfrom financingactivities:Proceedsfrom public 12,354,460 -- offering,net(Repaymentof) proceeds (16,824,722 ) 4,546,858 from line ofcredit, netDividends (3,553,256 ) (3,181,291 )paidPurchase oftreasury -- (179,251 )sharesDeferredfinancing -- (27,102 )costsincurredNet cash(used in)provided by (8,023,518 ) 1,159,214 financingactivities Net(decrease) (349,445 ) 38,308 increase incashCash andrestrictedcash, 459,137 118,407 beginning ofyearCash, end of $ 109,692 $ 156,715 period SupplementalCash Flow Information:Taxes paidduring the $ 647 $ 645 periodInterestpaid during $ 811,610 $ 954,622 the periodOperatingleases paid $ 47,600 $ 40,973 during theperiod Non-cashInvesting Activities:Interestreceivableconverted toloansreceivable $ -- $ 29,671 inconnectionwithforbearanceagreements

Contact:

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