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: https://www.manhattanbridgecapital.com.
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
December 31, 2023 and 2022
2023
2022
Assets
Loans receivable
$
73,048,403
$
74,483,463
Interest receivable on loans
1,395,905
1,363,502
Cash
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
Liabilities:
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
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED December 31, 2023 and 2022
2023
2022
Revenue:
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