GlobeNewswire Inc | Jul 23, 2020 07:05AM EDT

July 23, 2020

GREAT NECK, N.Y., July 23, 2020 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that its total revenues for the three months ended June 30, 2020 were approximately $1,741,000 compared to approximately $1,779,000 for the three months ended June 30, 2019, a decrease of $38,000, or 2.1%. The decrease in revenues was primarily attributable to lower interest rates and origination points 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 June 30, 2020 and 2019, approximately $1,490,000 and $1,487,000, respectively, of our revenues were attributable to interest income on secured commercial loans that we offer to small businesses, and approximately $251,000 and $292,000, respectively, of our revenues were attributable to origination fees on such loans.

Net income for the three months ended June 30, 2020 was approximately $1,097,000, or $0.11 per basic and diluted share (based on approximately 9.63 million weighted-average outstanding common shares), as compared to approximately $1,084,000, or $0.11 per basic and diluted share (based on approximately 9.66 million weighted-average outstanding common shares), for the three months ended June 30, 2019. The increase is primarily attributable to the decrease in interest expense, offset by the decrease in revenue.

Total revenues for the six months ended June 30, 2020 were approximately $3,452,000 compared to approximately $3,567,000 for the six months ended June 30, 2019, a decrease of $115,000, or 3.2%. The decrease in revenues were primarily attributable to lower interest rates and origination points 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 six months ended June 30, 2020 and 2019, revenues of approximately $2,964,000 and $2,990,000, respectively, were attributable to interest income on secured commercial loans that we offer to small businesses, and approximately $488,000 and $577,000, respectively, were attributable to origination fees on such loans.

Net income for the six months ended June 30, 2020 was approximately $2,113,000, or $0.22 per basic and diluted share (based on approximately 9.64 million weighted-average outstanding common shares), as compared to approximately $2,205,000, or $0.23 per basic and diluted share (based on approximately 9.66 million weighted-average outstanding common shares), for the six months ended June 30, 2019. This decrease is primarily attributable to the decrease in revenue and the increase in general and administrative expenses, offset by the decrease in interest expense. As of June 30, 2020, total stockholders' equity was approximately $32,852,000.

Assaf Ran, Chairman of the Board and CEO, stated, We hope that the worst is behind us, yet, the level of uncertainty about the future is still high. The COVID-19 is a reality test for our underwriting skills and performance, and so far, Im proud to say we are passing! Although we have dealt, and still are dealing with, some COVID-19 related issues, at this point we consider them manageable, minor and immaterial. I believe that based on our underwriting skills and performance, we belong to a selective group of REITs that did not pause or substantially reduce dividends. Further, due to the hard work and devotion of our team, we managed to approximately match the results of the same quarter a year ago.

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 our hope that the worst of the COVID-19 pandemic is behind us, our belief that the COVID-19 pandemic was a reality test for our underwriting skills and performance and so far we believe we are passing, our belief that the COVID-19 related issues, at this point, are manageable, minor and immaterial and that based on our underwriting skills and performance, and our belief that we belong to a selective group of REITs that did not pause or substantially reduce dividends, 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

June 30,2020 December 31,2019 (unaudited) (audited)Assets Loans receivable $ 55,857,217 $ 53,485,014 Interest receivable on loans 770,628 675,996 Cash 194,026 118,407 Other assets 118,909 53,218 Operating lease right-of-use asset, net 64,506 87,754 Deferred financing costs 37,026 22,637 Total assets $ 57,042,312 $ 54,443,026 Liabilities and Stockholders? Equity Liabilities: Line of credit $ 18,076,228 $ 15,232,993 Senior secured notes (net of deferred 5,565,130 5,527,587 financing costs of $434,870 and $472,413)Deferred origination fees 361,632 322,119 Accounts payable and accrued expenses 119,808 151,823 Operating lease liability 67,577 91,025 Other liabilities -- 15,000 Dividends payable -- 1,159,061 Total liabilities 24,190,375 22,499,608 Commitments and contingencies Stockholders? equity: Preferred shares - $.01 par value; 5,000,000 -- -- shares authorized; none issuedCommon shares - $.001 par value; 25,000,000shares authorized; 9,882,058 issued; 9,882 9,882 9,626,845 and 9,658,844 outstanding,respectivelyAdditional paid-in capital 33,150,564 33,144,032 Treasury stock, at cost ? 255,213 and 223,214 (771,559 ) (619,688 )sharesRetained earnings (accumulated deficit) 463,050 (590,808 )Total stockholders? equity 32,851,937 31,943,418 Total liabilities and stockholders? equity $ 57,042,312 $ 54,443,026

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

Three Months Six Months Ended June 30, Ended June 30, 2020 2019 2020 2019 Interest income $ 1,490,395 $ 1,487,117 $ 2,963,940 $ 2,990,202 from loansOrigination 250,791 292,253 488,233 577,227 feesTotal revenue 1,741,186 1,779,370 3,452,173 3,567,429 Operating costs and expenses:Interest andamortization of 326,247 387,511 678,689 766,393 debt servicecostsReferral fees 1,386 625 1,928 2,708 General andadministrative 318,726 309,619 663,507 598,356 expensesTotal operatingcosts and 646,359 697,755 1,344,124 1,367,457 expensesIncome from 1,094,827 1,081,615 2,108,049 2,199,972 operationsOther income 3,000 3,000 6,000 6,000 Income beforeincome tax 1,097,827 1,084,615 2,114,049 2,205,972 expenseIncome tax (645 ) (572 ) (645 ) (572 )expenseNet income $ 1,097,182 $ 1,084,043 $ 2,113,404 $ 2,205,400 Basic anddiluted netincome per common shareoutstanding:--Basic $ 0.11 $ 0.11 $ 0.22 $ 0.23 --Diluted $ 0.11 $ 0.11 $ 0.22 $ 0.23 Weightedaverage numberof common sharesoutstanding:--Basic 9,628,405 9,659,317 9,640,146 9,657,557 --Diluted 9,628,405 9,661,620 9,640,146 9,659,897

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

FOR THE THREE MONTHS ENDED JUNE 30, 2020

Additional Retained Common Shares Paid Treasury Stock Earnings Totals in Capital Shares Amount Shares Cost Balance, April 1, 9,882,058 $ 9,882 $ 33,147,298 249,823 $ (750,724 ) $ 425,414 $ 32,831,870 2020Purchase oftreasury 5,390 (20,835 ) (20,835 )sharesNon - cash 3,266 3,266 compensationDividends (1,059,546 ) (1,059,546 )paidNet income 1,097,182 1,097,182 Balance,June 30, 9,882,058 $ 9,882 $ 33,150,564 255,213 $ (771,559 ) $ 463,050 $ 32,851,937 2020

FOR THE THREE MONTHS ENDED JUNE 30, 2019

Additional Retained Common Shares Paid Treasury Stock Earnings Totals in Capital Shares Amount Shares Cost Balance, April 1, 9,881,191 $ 9,881 $ 33,134,235 219,214 $ (595,878 ) $ 672,556 $ 33,220,794 2019Purchase oftreasury 4,000 (23,810 ) (23,810 )sharesNon - cash 3,266 3,266 compensationDividends (1,159,438 ) (1,159,438 )paidNet income 1,084,043 1,084,043 Balance,June 30, 9,881,191 $ 9,881 $ 33,137,501 223,214 $ (619,688 ) $ 597,161 $ 33,124,855 2019

FOR THE SIX MONTHS ENDED JUNE 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 6,532 6,532 compensationPurchase oftreasury 31,999 (151,871 ) (151,871 )sharesDividends (1,059,546 ) (1,059,546 )paidNet income 2,113,404 2,113,404 Balance,June 30, 9,882,058 $ 9,882 $ 33,150,564 255,213 $ (771,559 ) $ 463,050 $ 32,851,937 2020

FOR THE SIX MONTHS ENDED JUNE 30, 2019

Additional Accumulated Common Shares Paid Treasury Stock Deficit Totals in Capital (Retained Earnings) Shares Amount Shares Cost Balance, January 1, 9,874,191 $ 9,874 $ 33,110,536 218,214 $ (590,234 ) $ (448,801 ) $ 32,081,375 2019Exercise of 7,000 7 20,433 20,440 optionsPurchase oftreasury 5,000 (29,454 ) (29,454 )sharesNon ? cash 6,532 6,532 compensationDividends (1,159,438 ) (1,159,438 )paidNet income 2,205,400 2,205,400 Balance,June 30, 9,881,191 $ 9,881 $ 33,137,501 223,214 $ (619,688 ) $ 597,161 $ 33,124,855 2019

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

Six Months Ended June 30, 2020 2019 Cash flows from operating activities: Net income $ 2,113,404 $ 2,205,400 Adjustments to reconcile net income tonet cash provided by operating activities -Amortization of deferred financing 50,256 47,244 costsAdjustment to operating lease (200 ) -- right-of-use asset and liabilityDepreciation 548 815 Non-cash compensation expense 6,532 6,532 Changes in operating assets and liabilities:Interest receivable on loans (124,303 ) (76,123 )Other assets (65,316 ) (55,243 )Accounts payable and accrued expenses (32,015 ) (60,927 )Deferred origination fees 39,513 (8,233 )Net cash provided by operating 1,988,419 2,059,465 activities Cash flows from investing activities: Issuance of short term loans (21,798,160 ) (24,697,965 )Collections received from loans 19,455,628 23,622,125 Release of loan holdback relating to (15,000 ) -- mortgage receivablePurchase of fixed assets (923 ) -- Net cash used in investing activities ( ) ( ) 2,358,455 1,075,840 Cash flows from financing activities: Proceeds from line of credit, net 2,843,235 1,115,656 Dividends paid (2,218,607 ) (2,318,155 )Purchase of treasury shares (151,871 ) (29,454 )Deferred financing costs incurred (27,102 ) -- Proceeds from exercise of stock options -- 20,440 Net cash provided by (used in) 445,655 (1,211,513 )financing activities Net increase (decrease) in cash 75,619 (227,888 )Cash, beginning of period 118,407 355,057 Cash, end of period $ 194,026 $ 127,169 Supplemental Cash Flow Information: Taxes paid during the period $ 645 $ 572 Interest paid during the period $ 650,130 $ 733,160 Operating leases paid during the period $ 27,227 $ 25,584 Supplemental Information ? Noncash Information:Establishment of right-of-use asset and $ -- $ 135,270 operating lease liabilityInterest receivable converted to loansreceivable in connection with $ 29,671 $ -- forbearance agreements

SOURCE: Manhattan Bridge Capital, Inc.

Contact:Assaf Ran, CEOVanessa Kao, CFO(516) 444-3400