Manhattan Bridge Capital, Inc. Reports Third Quarter 2024 Results
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 CONSOLIDATED BALANCE SHEETS
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 CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
Three Months Ended September 30,
Nine Months Ended 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
