Revenue Increases by 28.5% to Approximately $2.9 Million
Net Income Increases by 149.6 % to Approximately $1.455 Million
LONG ISLAND, N.Y., March 23, 2015 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq:LOAN) announced today that net income for the year ended December 31, 2014 was $0.29 per share or approximately $1,455,000, versus $0.14 per share, or approximately $583,000 for the year ended December 31, 2013. This increase in net income was mainly due to an increase in operating income as a result of increased lending activity and minimal income tax expense for 2014 as a result of the Company's intention to elect REIT status for 2014.
Total revenue for the year ended December 31, 2014 was approximately $2,904,000 compared to approximately $2,260,000 for the year ended December 31, 2013, an increase of $644,000 or 28.5%. The increase in revenue represents an increase in lending operations. In 2014, approximately $2,401,000 of the Company's revenue represents interest income on secured, commercial loans that the Company offers to small businesses compared to approximately $1,858,000 in 2013, and approximately $503,000 represents origination fees on such loans compared to approximately $402,000 in 2013.
Total operating costs and expenses for the year ended December 31, 2014 were approximately $1,443,000 compared to approximately $1,282,000 for the year ended December 31, 2013, an increase of $161,000 or 12.6%. This increase in operating costs and expenses is primarily attributable to an increase in interest and amortization of debt service costs of approximately $121,000, which is primarily attributable to the Company's use of a line of credit in order to increase its ability to make loans.
As of December 31, 2014 total shareholders' equity was approximately $13,866,000 compared to approximately $8,893,000 as of December 31, 2013, an increase of $4,973,000.
In July 2014, we completed a public offering in which we raised net proceeds of approximately $4.3 million. As a result of the offering, we satisfy all of the requirements to be taxed as a REIT and intend to elect REIT status beginning with 2014.
In February 2015, we obtained a three-year $14 million revolving line of credit with Webster Business Credit Corporation, to replace our $7.7 million credit facility with Sterling National Bank.
Assaf Ran, Chairman of the Board and CEO, stated, "2014 was a year of major milestones for the Company. Not only did we continue our organic growth, but we also increased our line of credit, completed a stock offering and met the requirements to qualify the Company as a REIT. Due to these achievements, the Company paid $0.07 per share as cash dividends for the second and the third quarters, and $0.08 per share for the last quarter of 2014 to its shareholders."
"Due to our disciplined underwriting procedures, we have gone through one more year without a default or delinquency," 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. We operate the web site: http://www.manhattanbridgecapital.com
This report contains forward-looking statements within the meaning of section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements are typically identified by the words "believe," "expect," "intend," "estimate" and similar expressions. Those statements appear in a number of places in this report and include statements regarding our intent, belief or current expectations or those of our directors or officers with respect to, among other things, trends affecting our financial condition and results of operations and our business and growth strategies. These 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 (such factors are referred to herein as "Cautionary Statements"), including but not limited to the following: (i)we may not qualify as a REIT; (ii) we have no operating history as a REIT;(iii) our loan origination activities, revenues and profits are limited by available funds (iv)we operate in a highly competitive market and competition may limit our ability to originate loans with favorable interest rates; (v) our chief executive officer is critical to our business and our future success may depend on our ability to retain him; (vi) if we overestimate the yields on our loans or incorrectly value the collateral securing the loan, we may experience losses; (vii) we may be subject to "lender liability" claims; (viii) our loan portfolio is illiquid; (ix) our due diligence may not uncover all of a borrower's liabilities or other risks to its business; (x) borrower concentration could lead to significant losses; (xi) our management has no experience managing a REIT; and (xii) 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. The accompanying information contained in this report, including the information set forth under "Management's Discussion and Analysis of Financial Condition and Results of Operations", identifies important factors that could cause such differences. These forward-looking statements speak only as of the date of this report, and we caution potential investors not to place undue reliance on such statements. We undertake no obligation to update or revise any forward-looking statements. All subsequent written or oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the Cautionary Statements.
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS December 31, 2014 and 2013 |
||
Assets |
2014 |
2013 |
Current assets: | ||
Cash and cash equivalents | $ 47,676 | $ 1,021,023 |
Short term loans receivable | 19,138,426 | 10,697,950 |
Interest receivable on loans | 213,766 | 171,483 |
Other current assets | 26,995 | 18,540 |
Total current assets | 19,426,863 | 11,908,996 |
Investment in real estate | --- | 146,821 |
Long term loans receivable | 4,894,050 | 3,997,000 |
Property and equipment, net | 19,088 | --- |
Security deposit | 6,816 | 6,637 |
Investment in privately held company | 65,000 | 65,000 |
Deferred financing costs | 32,500 | --- |
Total assets | $ 24,444,317 | $ 16,124,454 |
Liabilities and Stockholders' Equity | ||
Current liabilities: | ||
Short term loans | $ 2,469,465 | $ 1,319,465 |
Line of credit | 7,700,000 | 5,350,000 |
Accounts payable and accrued expenses | 163,622 | 57,066 |
Deferred origination fees | 244,776 | 132,017 |
Income taxes payable | --- | 373,219 |
Total liabilities, all current | 10,577,863 | 7,231,767 |
Commitments and contingencies |
||
Stockholders' equity: | ||
Preferred shares -- $.01 par value; 5,000,000 shares authorized; no shares issued | --- | --- |
Common shares -- $.001 par value; 25,000,000 authorized; 6,260,689 and 4,433,190 issued; 6,083,689 and 4,256,190 outstanding | 6,260 | 4,433 |
Additional paid-in capital | 14,116,183 | 9,745,249 |
Treasury stock, at cost – 177,000 | (369,335) | (369,335) |
Retained earnings (Accumulated deficit) | 113,346 | (487,660) |
Total stockholders' equity | 13,866,454 | 8,892,687 |
Total liabilities and stockholders' equity |
$ 24,444,317 |
$ 16,124,454 |
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEARS ENDED December 31, 2014 and 2013 |
||
2014 |
2013 |
|
Interest income from loans | $ 2,401,150 | $ 1,858,033 |
Origination fees | 502,515 | 401,514 |
Total Revenue | 2,903,665 | 2,259,547 |
Operating costs and expenses: | ||
Interest and amortization of debt service costs | 563,368 | 442,661 |
Referral fees | 2,244 | 1,679 |
General and administrative expenses | 876,906 | 837,788 |
Total operating costs and expenses | 1,442,518 | 1,282,128 |
Income from operations | 1,461,147 | 977,419 |
Other income | 21,197 | 27,548 |
Loss on write-down of investment in privately held company | --- | (35,000) |
Total other income (loss), net | 21,197 | (7,452) |
Income before income tax expense | 1,482,344 | 969,967 |
Income tax expense | (27,839) | (387,000) |
Net income | $ 1,454,505 | $ 582,967 |
Basic and diluted net income per common share outstanding: | ||
--Basic | $0.29 | $0.14 |
--Diluted | $0.29 | $0.14 |
Weighted average number of common shares outstanding | ||
--Basic | 5,028,645 | 4,269,169 |
--Diluted | 5,058,421 | 4,289,818 |
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY FOR THE YEARS ENDED December 31, 2014 and 2013 |
|||||||
Common Stock |
Additional Paid-in Capital |
Treasury Stock |
Accumulated Deficit / Retained Earnings |
Totals | |||
Shares | Amount | Shares | Cost | ||||
Balance, January 1, 2013 | 4,405,190 | $4,405 | $9,687,159 | 107,131 | $(269,972) | $(942,607) | $8,478,985 |
Non cash compensation | 35,578 | 35,578 | |||||
Exercise of stock options | 28,000 | 28 | 22,512 | 22,540 | |||
Purchase of treasury shares | 69,869 | (99,363) | (99,363) | ||||
Dividends paid | (128,020) | (128,020) | |||||
Net income for the year ended December 31, 2013 | 582,967 | 582,967 | |||||
Balance, December 31, 2013 | 4,433,190 | 4,433 | 9,745,249 | 177,000 | (369,335) | (487,660) | 8,892,687 |
Non cash compensation | 28,767 | 28,767 | |||||
Exercise of stock options | 66,887 | 67 | 55,163 | 55,230 | |||
Exercise of warrants | 6,226 | 6 | (6) | 0 | |||
Public offering | 1,754,386 | 1,754 | 4,287,010 | 4,288,764 | |||
Dividends paid | (853,499) | (853,499) | |||||
Net income for the year ended December 31, 2014 | 1,454,505 | 1,454,505 | |||||
Balance, December 31, 2014 | 6,260,689 | $6,260 | $14,116,183 | 177,000 | $(369,335) | $113,346 | $13,866,454 |
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED December 31, 2014 and 2013 |
||
2014 | 2013 | |
Cash flows from operating activities: |
||
Net income | $ 1,454,505 | $ 582,967 |
Adjustments to reconcile net income to net cash provided by operating activities -- | ||
Amortization of deferred financing costs | --- | 41,735 |
Non cash compensation expense | 28,767 | 35,578 |
Loss on write-down of investment in privately held company | --- | 35,000 |
Changes in operating assets and liabilities | ||
Interest receivable on loans | (42,283) | (11,141) |
Other current and non current assets | (8,634) | 217 |
Accounts payable and accrued expenses | 106,556 | (13,337) |
Deferred origination fees | 112,758 | 9,775 |
Income taxes payable | (373,219) | 104,963 |
Net cash provided by operating activities | 1,278,450 | 785,757 |
Cash flows from investing activities: | ||
Issuance of short term loans | (22,585,990) | (15,159,450) |
Collections received from loans | 13,248,464 | 14,088,866 |
Proceeds from exercise of option | 146,821 | --- |
Purchase of fixed assets | (19,088) | --- |
Net cash used in investing activities | (9,209,793) | (1,070,584) |
Cash flows from financing activities: |
||
Proceeds from loans and line of credit, net | 3,500,000 | 1,770,000 |
Purchase of treasury shares | --- | (99,363) |
Repayment of senior secured notes | --- | (500,000) |
Proceeds from exercise of stock options | 55,230 | 22,540 |
Proceeds from public offering, net | 4,288,765 | --- |
Dividends paid | (853,499) | (128,020) |
Deferred financing costs incurred | (32,500) | --- |
Net cash provided by financing activities | 6,957,996 | 1,065,157 |
Net (decrease) increase in cash and cash equivalents | (973,347) | 780,330 |
Cash and cash equivalents, beginning of year | 1,021,023 | 240,693 |
Cash and cash equivalents, end of year | $ 47,676 | $ 1,021,023 |
Supplemental Cash Flow Information: | ||
Taxes paid during the year | $ 416,083 | $ 283,084 |
Interest paid during the year | $ 563,368 | $ 400,925 |