Manhattan Bridge Capital, Inc. Reports Results for 2023

GREAT NECK, N.Y., March 11, 2024 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) (the “Company”) announced today that net income for the year ended December 31, 2023 was approximately $5,476,000, or $0.48 per share (based on approximately 11.5 million weighted-average outstanding common shares), versus approximately $5,212,000, or $0.45 per share (based on approximately 11.5 million weighted-average outstanding common shares) for the year ended December 31, 2022, an increase of $264,000, or 5.1%. This increase is primarily attributable to an increase in interest income from loans, partially offset by increases in interest expense and in general and administrative expenses.

Total revenue for the year ended December 31, 2023 was approximately $9,796,000, compared to approximately $8,571,000 for the year ended December 31, 2022, an increase of $1,225,000, or 14.3%. The increase in revenue was due to higher interest rates charged on the Company’s commercial loans. In 2023, approximately $7,976,000 of its revenue represents interest income on secured, real estate loans that the Company offers to real estate investors, compared to approximately $6,773,000 in 2022, and approximately $1,820,000 represents origination fees on such loans, compared to approximately $1,798,000 in 2022. The loans are principally secured by collateral consisting of real estate and accompanied by personal guarantees from the principals of the borrowers.

Total operating costs and expenses for the year ended December 31, 2023 were approximately $4,353,000, compared to approximately $3,377,000 for the year ended December 31, 2022, an increase of $976,000, or 28.9%. The increase in operating costs and expenses was primarily attributable to an increase in interest expense due to higher interest rates and increases in amounts borrowed relating to the use of the Company’s credit line in order to support its ability to increase loan originations, and a special bonus as well as an annual bonus totaling $195,000 to its officers in 2023.

As of December 31, 2023, total shareholders' equity was approximately $42,933,000, compared to approximately $42,864,000 as of December 31, 2022.

On April 11, 2023, the Company’s Board of Directors authorized a share buyback program for the repurchase of up to 100,000 of its common shares in the next twelve months. This program does not obligate the Company to purchase any shares and expires on April 10, 2024. As of December 31, 2023, the Company had purchased an aggregate of 54,294 common shares under this repurchase program, at an aggregate cost of approximately $262,000.

Assaf Ran, Chairman of the Board and Chief Executive Officer of the Company, stated, “As real estate investors are adjusting to a high-interest rate environment, liquidity crunches are more frequent. Thus, our challenge for 2023 was to avoid problematic loans and interest collection issues. I can proudly state that I believe we succeeded in meeting the challenge.”

“The size of our loan portfolio was approximately the same as the prior year; however, due to the fact that we’re low-leveraged, we benefited from the higher interest rates and broke our records of both revenue and net earnings,” added Mr. Ran.

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:

December 31, 2023 and 2022
Loans receivable$73,048,403 $74,483,463
Interest receivable on loans 1,395,905  1,363,502
 104,222  103,540
Cash - restricted 1,587,773  ---
Other assets 63,636  59,566
Operating lease right-of-use asset, net 207,364  262,222
Deferred financing costs, net 27,583  7,708
Total assets$76,434,886 $76,280,001

Liabilities and Stockholders’ Equity
Line of credit$25,152,338  $24,994,234 
Senior secured notes (net of deferred financing costs of $172,069 and $247,155, respectively) 5,827,931   5,752,845 
Deferred origination fees 719,019   669,128 
Accounts payable and accrued expenses 295,292   289,868 
Operating lease liability 220,527   273,485 
Dividends payable 1,287,073   1,436,868 
Total liabilities 33,502,180   33,416,428 
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; 11,440,651 and 11,494,945 outstanding, respectively 11,757   11,757 
Additional paid-in capital 45,548,876   45,535,811 
Less: Treasury stock, at cost – 316,407 and 262,113 shares (1,060,606)  (798,939)
Accumulated deficit (1,567,321)  (1,885,056)
Total stockholders’ equity 42,932,706   42,863,573 
Total liabilities and stockholders’ equity$76,434,886  $76,280,001 

FOR THE YEARS ENDED December 31, 2023 and 2022

Interest income from loans$7,976,232  $6,772,889 
Origination fees 1,820,024   1,798,075 
Total Revenue 9,796,256   8,570,964 
Operating costs and expenses:   
Interest and amortization of deferred financing costs 2,525,935   1,822,825 
Referral fees 2,153   4,500 
General and administrative expenses 1,825,227   1,549,251 
Total operating costs and expenses 4,353,315   3,376,576 
Income from operations 5,442,941   5,194,388 
Other income 33,880   18,000 
Income before income tax expense 5,476,821   5,212,388 
Income tax expense (650)  (650)
Net income$5,476,171  $5,211,738 
Basic and diluted net income per common share outstanding:   
--Basic$0.48  $0.45 

$0.48  $0.45 
Weighted average number of common shares outstanding   
--Basic 11,469,741   11,494,945 
--Diluted 11,469,741   11,494,945 

FOR THE YEARS ENDED December 31, 2023 and 2022

 Common StockAdditional

Treasury StockAccumulated
 SharesAmount SharesCost  
Balance, January 1, 202211,757,058$11,757$45,522,746262,113$(798,939)$(1,349,322)$43,386,242 
Non-cash compensation   13,065    13,065 
Dividends paid      (4,310,604) (4,310,604)
Dividends declared and payable      (1,436,868) (1,436,868)
Net income for the year ended December 31, 2022      5,211,738  5,211,738 
Balance, December 31, 202211,757,058 11,757 45,535,811262,113 (798,939) (1,885,056) 42,863,573 
Purchase of treasury shares   54,294 (261,667)  (261,667)
Non-cash compensation   13,065    13,065 
Dividends paid      (3,871,363) (3,871,363)
Dividends declared and payable      (1,287,073) (1,287,073)
Net income for the year ended December 31, 2023      5,476,171  5,476,171 
Balance, December 31, 202311,757,058$11,757$45,548,876316,407$(1,060,606)$(1,567,321)$42,932,706 

FOR THE YEARS ENDED December 31, 2023 and 2022
  2023   2022 
Cash flows from operating activities:       
Net income$5,476,171  $5,211,738 
Adjustments to reconcile net income to net cash provided by operating activities -   
Amortization of deferred financing costs 93,403   113,736 
Depreciation 4,057   2,307 
Non-cash compensation expense 13,065   13,065 
Adjustment to operating lease right-of-use asset and liability 1,900   4,096 
Changes in operating assets and liabilities:   
Interest receivable on loans (32,403)  (408,059)
Other assets (3,042)  5,742 
Accounts payable and accrued expenses 5,424   135,699 
Deferred origination fees 49,891   88,667 
Net cash provided by operating activities 5,608,466   5,166,991 
Cash flows from investing activities:   
Issuance of short term loans (56,301,376)  (60,915,596)
Collections received from loans 57,736,436   52,147,497 
Purchase of fixed assets (5,085)  (2,871)
Net cash provided by (used in) investing activities 1,429,975   (8,770,970)

Cash flows from financing activities:
Proceeds from line of credit, net 158,104   9,348,264 
Dividends paid (5,308,231)  (5,747,472)
Purchase of treasury shares (261,667)  --- 
Deferred financing costs incurred (38,192)  (35,819)
Net cash (used in) provided by financing activities (5,449,986)  3,564,973 
Net increase (decrease) in cash and restricted cash 1,588,455   (39,006)
Cash, beginning of year 103,540   142,546 
Cash and restricted cash, end of year*$1,691,995  $103,540 
Supplemental Disclosure of Cash Flow Information:   
Cash paid for taxes during the year$650  $650 
Cash paid for interest during the year$2,423,838  $1,581,935 
Cash paid for operating leases during the year$64,055  $63,621 
Supplemental Schedule of Noncash Financing Activities:
Dividend declared and payable
$1,287,073  $1,436,868 

* At December 31, 2023, cash and restricted cash included $1,587,773 of restricted cash.

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

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