GlobeNewswire Inc | Oct 20, 2020 07:05AM EDT

October 20, 2020

GREAT NECK, N.Y., Oct. 20, 2020 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that its net income for the three months ended September 30, 2020 was approximately $1,151,000, or $0.12 per basic and diluted share (based on approximately 9.6 million weighted-average outstanding common shares), as compared to approximately $1,150,000, or $0.12 per basic and diluted share (based on approximately 9.7 million weighted-average outstanding common shares), for the three months ended September 30, 2019.

Total revenues for the three months ended September 30, 2020 were approximately $1,786,000, as compared to approximately $1,917,000 for the three months ended September 30, 2019, a decrease of $131,000 or 6.8%. The decrease in revenue was primarily attributable to lower interest rates and origination fees charged on loans due to market conditions and intense competition from other lenders, as well as lower demand for new loans resulting from the COVID-19 pandemic. For the three months ended September 30, 2020 and 2019, approximately $1,521,000 and $1,619,000, respectively, of our revenues were attributable to interest income on secured commercial loans that we offer to small businesses, and approximately $265,000 and $298,000, respectively, of our revenues were attributable to origination fees on such loans.

Net income for the nine months ended September 30, 2020 was approximately $3,264,000, or $0.34 per basic and diluted share (based on approximately 9.6 million weighted-average outstanding common shares), as compared to approximately $3,355,000, or $0.35 per basic and diluted share (based on approximately 9.7 million weighted-average outstanding common shares), for the nine months ended September 30, 2019, a decrease of $91,000, or 2.7%. This decrease is primarily attributable to the decrease in revenue, partially offset by the decrease in interest expense.

Total revenues for the nine months ended September 30, 2020 were approximately $5,239,000, as compared to approximately $5,484,000 for the nine months ended September 30, 2019, a decrease of $245,000, or 4.5%. The decrease in revenue was primarily attributable to lower interest rates and origination fees charged on loans due to market conditions and intense competition from other lenders, as well as lower demand for new loans resulting from the COVID-19 pandemic. For the nine months ended September 30, 2020 and 2019, revenues of approximately $4,485,000 and $4,609,000, respectively, were attributable to interest income on the secured commercial loans that we offer to small businesses, and approximately $753,000 and $875,000, respectively, of our revenues were attributable to origination fees on such loans.

Assaf Ran, Chairman of the Board and CEO, stated, I am pleased to report that our conservative and careful policies have once again proven to protect our shareholders value during rough times. Not only do we continue to have no defaults, but we also managed to increase our earnings per share (EPS) to $0.12 for the quarter from $0.11 for the quarter ended June 30, 2020, and to continue distributing dividends during the difficult time we are experiencing due to the COVID-19 crisis.

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 web site: 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 ourbelief that our conservative and careful policies have protected our shareholders value during rough times, 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, 2019 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, 2020 December 31, 2019 (unaudited) (audited)Assets Loans receivable $ 57,883,068 $ 53,485,014Interest receivable on loans 809,975 675,996Cash 156,715 118,407Other assets 88,554 53,218Operating lease right-of-use asset, 52,627 87,754netDeferred financing costs 29,917 22,637Total assets $ 59,020,856 $ 54,443,026

Liabilities and Stockholders? Equity Liabilities: Line of credit $ 19,779,851 $ 15,232,993 Senior secured notes (net of deferred financingcosts of 5,583,901 5,527,587 $416,099 and $472,413, respectively)Deferred origination fees 452,914 322,119 Accounts payable and accrued expenses 132,582 151,823 Operating lease liability 55,566 91,025 Other liabilities -- 15,000 Dividends payable -- 1,159,061 Total liabilities 26,004,814 22,499,608

Commitments and contingenciesStockholders? equity: Preferred shares - $.01 par value; 5,000,000shares -- -- authorized; none issuedCommon shares - $.001 par value; 25,000,000sharesauthorized; 9,882,058 issued; 9,619,945 and 9,882 9,882 9,658,844outstanding, respectivelyAdditional paid-in capital 33,153,830 33,144,032 Treasury stock, at cost ? 262,113 and 223,214 (798,939 ) (619,688 )sharesRetained earnings (accumulated deficit) 651,269 (590,808 )Total stockholders? equity 33,016,042 31,943,418 Total liabilities and stockholders? equity $ 59,020,856 $ 54,443,026

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

Three Months Nine Months Ended September 30, Ended September 30, 2020 2019 2020 2019 Interest income from $ 1,521,474 $ 1,618,735 $ 4,485,414 $ 4,608,936 loansOrigination fees 264,878 298,222 753,111 875,449 Total revenue 1,786,352 1,916,957 5,238,525 5,484,385 Operating costs and expenses:Interest andamortization of debt 337,901 454,307 1,016,590 1,220,700 servicecostsReferral fees 1,641 861 3,569 3,569 General andadministrative 305,407 314,820 968,914 913,175 expensesTotal operating costs 644,949 769,988 1,989,073 2,137,444 and expensesIncome from 1,141,403 1,146,969 3,249,452 3,346,941 operationsOther income 9,500 3,000 15,500 9,000 Income before income 1,150,903 1,149,969 3,264,952 3,355,941 tax expenseIncome tax expense -- -- (645 ) (572 )Net income $ 1,150,903 $ 1,149,969 $ 3,264,307 $ 3,355,369 Basic and diluted netincome per common share outstanding:--Basic $ 0.12 $ 0.12 $ 0.34 $ 0.35 --Diluted $ 0.12 $ 0.12 $ 0.34 $ 0.35 Weighted averagenumber of common shares outstanding--Basic 9,625,140 9,658,608 9,635,107 9,657,911 --Diluted 9,625,140 9,659,764 9,635,107 9,659,012

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

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2020

Additional Retained Common Shares Paid in Treasury Stock Earnings Totals Capital Shares Amount Shares Cost Balance, 9,882,058 $ 9,882 $ 33,150,564 255,213 $ (771,559) $ 463,050 $ 32,851,937July 1, 2020Purchase oftreasury 6,900 (27,380) (27,380)sharesNon - cash 3,266 3,266compensationDividends (962,684) (962,684)paidNet income 1,150,903 1,150,903Balance,September 9,882,058 $ 9,882 $ 33,153,830 262,113 $ (798,939) $ 651,269 $ 33,016,04230, 2020

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2019

Additional Retained Common Shares Paid in Treasury Stock Earnings Totals Capital Shares Amount Shares Cost Balance, 9,881,191 $ 9,881 $ 33,137,501 223,214 $ (619,688) $ 597,161 $ 33,124,855July 1, 2019Exercise of 867 1 (1) 0warrantsNon-cash 3,266 3,266compensationDividends (1,158,957) (1,158,957)paidNet income 1,149,969 1,149,969Balance,September 9,882,058 $ 9,882 $ 33,140,766 223,214 $ (619,688) $ 588,173 $ 33,119,13330, 2019

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020

Additional Accumulated Common Shares Paid in Treasury Stock Deficit Totals Capital (Retained Earnings) Shares Amount Shares Cost Balance,January 1, 9,882,058 $ 9,882 $ 33,144,032 223,214 $ (619,688) $ (590,808) $ 31,943,4182020Non-cash 9,798 9,798compensationPurchase oftreasury 38,899 (179,251) (179,251)sharesDividends (2,022,230) (2,022,230)paidNet income 3,264,307 3,264,307Balance,September 9,882,058 $ 9,882 $ 33,153,830 262,113 $ (798,939) $ 651,269 $ 33,016,04230, 2020

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019

Additional Accumulated Common Shares Paid in Treasury Stock Deficit Totals Capital (Retained Earnings) Shares Amount Shares Cost Balance,January 1, 9,874,191 $ 9,874 $ 33,110,536 218,214 $ (590,234) $ (448,801) $ 32,081,3752019Exercise ofoptions and 7,867 8 20,432 20,440warrantsPurchase oftreasury 5,000 (29,454) (29,454)sharesNon-cash 9,798 9,798compensationDividends (2,318,395) (2,318,395)paidNet income 3,355,369 3,355,369Balance,September 9,882,058 $ 9,882 $ 33,140,766 223,214 $ (619,688) $ 588,173 $ 33,119,13330, 2019

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

Nine Months Ended September 30,

Nine Months Ended September 30, 2020 2019 Cash flows from operating activities:Net income $ 3,264,307 $ 3,355,369 Adjustments to reconcile net incometo net cash provided by operating activities -Amortization of deferred financing 76,136 70,867 costsAdjustment to operating lease (333 ) -- right-of-use asset and liabilityDepreciation 744 1,157 Non-cash compensation expense 9,798 9,798 Changes in operating assets and liabilities:Interest receivable on loans (163,650 ) (167,194 )Other assets (35,156 ) (26,209 )Accounts payable and accrued (19,241 ) (19,134 )expensesDeferred origination fees 130,795 (461 )Net cash provided by operating 3,263,400 3,224,193 activities Cash flows from investing activities:Issuance of short term loans (35,410,076 ) (38,246,965 )Collections received from loans 31,041,693 33,375,420 Release of loan holdback relating to (15,000 ) -- mortgage receivablePurchase of fixed assets (923 ) -- Net cash used in investing (4,384,306 ) (4,871,545 )activities Cash flows from financing activities:Proceeds from line of credit, net 4,546,858 5,241,895 Dividends paid (3,181,291 ) (3,477,112 )Purchase of treasury shares (179,251 ) (29,454 )Deferred financing costs incurred (27,102 ) -- Proceeds from exercise of stock -- 20,440 optionsNet cash provided by financing 1,159,214 1,755,769 activities Net increase in cash 38,308 108,417 Cash, beginning of period 118,407 355,057 Cash, end of period $ 156,715 $ 463,474 Supplemental Cash Flow Information: Taxes paid during the period $ 645 $ 572 Interest paid during the period $ 954,622 $ 1,144,425 Operating leases paid during the $ 40,973 $ 39,628 period Non-cash Investing Activities: Establishment of right-of-use asset $ -- $ 135,270 and operating lease liabilityInterest receivable converted toloans receivable in connection with $ 29,671 $ -- forbearance agreementsLoan holdback relating to mortgage $ -- $ 15,000 receivable

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