GREAT NECK, N.Y., Oct. 19, 2017 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (NASDAQ:LOAN) announced today that total revenue for the three month period ended September 30, 2017 was approximately $1,591,000 compared to approximately $1,169,000 for the three month period ended September 30, 2016, an increase of $422,000, or 36.1%. The increase in revenue represents an increase in lending operations. For the three month periods ended September 30, 2017 and 2016, approximately $1,352,000 and $960,000, respectively, of our revenues were attributable to interest income on the secured commercial loans that we offer to small businesses, and approximately $240,000 and $209,000, respectively, of the Company's revenues were attributable to origination fees on such loans.

Net income for the three month period ended September 30, 2017 was approximately $961,000 or $0.12 per basic and diluted share (based on approximately 8.1 million weighted-average outstanding common shares), versus net income of approximately $725,000 or $0.10 per basic and diluted share (based on approximately 7.6 million weighted-average outstanding common shares) for the three month period ended September 30, 2016, an increase of $236,000, or 32.6%. This increase in net income was mainly due to an increase in operating income as a result of increased lending activity.

Total revenue for the nine month period ended September 30, 2017 was approximately $4,322,000 compared to approximately $3,440,000 for the nine month period ended September 30, 2016, an increase of $882,000, or 25.6%. The increase in revenue represents an increase in lending operations. For the nine month periods ended September 30, 2017 and 2016, revenues of approximately $3,647,000 and $2,849,000, respectively, were attributable to interest income on the secured commercial loans that we offer to small businesses, and approximately $675,000 and $591,000, respectively, were attributable to origination fees on such loans.

Net income for the nine month period ended September 30, 2017 was approximately $2,592,000 or $0.32 per basic and diluted share (based on approximately 8.1 million weighted-average outstanding common shares), versus net income of approximately $2,130,000 or $0.29 per basic and diluted share (based on approximately 7.4 million weighted-average outstanding common shares) for the same period in 2016, an increase of $462,000, or 21.7%. This increase in net income was mainly due to an increase in operating income as a result of increased lending activity.

As of September 30, 2017, total shareholders' equity was approximately $23,120,000 compared to approximately $22,314,000 as of December 31, 2016, an increase of $806,000.

On August 8, 2017, the Company amended and restated certain terms of its existing credit line agreement with Webster Business Credit Corporation and Flushing Bank to further increase the credit line from $15 million to $20 million.  

Assaf Ran, Chairman of the Board and CEO stated, "The numbers speak for themselves; we believe that we offer our shareholders not only generous quarterly dividends but also steady and responsible growth. The increase of the bank line of credit from $14 million to $20 million during the third quarter, provided the necessary funds for this quarter's performance."

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

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 state that we offer generous dividends and sturdy growth we are using forward-looking statements. Readers are cautioned that certain important factors may affect the Company's 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) we have limited operating history as a Real Estate Investment Trust ("REIT"); (ii) our loan origination activities, revenues and profits are limited by available funds; (iii) we operate in a highly competitive market and competition may limit our ability to originate loans with favorable interest rates; (iv) our chief executive officer is critical to our business and our future success may depend on our ability to retain him; (v) if we overestimate the yields on our loans or incorrectly value the collateral securing the loan, we may experience losses; (vi) we may be subject to "lender liability" claims; (vii) our loan portfolio is illiquid; (viii) our due diligence may not uncover all of a borrower's liabilities or other risks to its business; (ix) borrower concentration could lead to significant losses; (x) our management has limited experience managing a REIT; and (xi) 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 risk factors contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016 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 SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
 
  September 30, 2017 (unaudited)   December 31, 2016 (audited)
Assets              
Loans receivable $ 44,419,950     $ 34,755,320  
Interest receivable on loans   508,342       346,519  
Cash and cash equivalents   112,184       96,299  
Deferred financing costs   60,250       56,193  
Investment in privately held company   15,000       35,000  
Other assets   58,384       44,193  
    Total assets $  45,174,110     $ 35,333,524  
               
Liabilities and Stockholders' Equity              
Liabilities:              
Line of credit $ 16,174,495     $  6,482,848  
Senior secured notes (net of deferred financing costs of $641,355 and $697,669, respectively)   5,358,645       5,302,331  
Deferred origination fees   390,743       315,411  
Accounts payable and accrued expenses   130,270       105,541  
Dividends payable   ---       813,503  
    Total liabilities   22,054,153       13,019,634  
       
Commitments and contingencies      
Stockholders' equity:      
Preferred shares - $.01 par value; 5,000,000 authorized; none issued   ---       ---  
Common shares - $.001 par value; 25,000,000 authorized; 8,319,036 and 8,312,036 issued; 8,108,934 and 8,135,036 outstanding, respectively   8,319       8,312  
Additional paid-in capital   23,164,245       23,134,013  
Treasury stock, at cost - 210,102 and 177,000 shares, respectively   (541,491 )     (369,335 )
Retained earnings (Accumulated deficit)   488,884       (459,100 )
    Total stockholders' equity   23,119,957       22,313,890  
  Total liabilities and stockholders' equity $ 45,174,110     $ 35,333,524  
               

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
 
  Three Months Ended September 30, Nine Months Ended September 30,
    2017     2016   2017     2016  
  Interest income from loans $   1,351,788   $     960,274 $   3,646,535   $   2,848,516  
Origination fees   239,675     208,951   675,434     591,191  
  Total revenue   1,591,463     1,169,225   4,321,969     3,439,707  
         
Operating costs and expenses:        
Interest and amortization of debt service costs   352,359     205,449   861,591     593,749  
Referral fees   750     2,263   2,951     5,525  
General and administrative expenses    266,534     236,972   842,520     698,356  
  Total operating costs and expenses   619,643     444,684   1,707,062     1,297,630  
Income from operations   971,820     724,541   2,614,907     2,142,077  
Loss on write-down of investment in privately held company   (10,000 )   ---   (20,000 )   (10,000 )
Income before income tax expense   961,820     724,541   2,594,907     2,132,077  
Income tax expense   (1,099 )   ---    (2,971 )    (2,146 )
  Net income $   960,721   $   724,541 $   2,591,936   $   2,129,931  
         
Basic and diluted net income per common share outstanding:        
--Basic $   0.12   $   0.10 $       0.32   $       0.29  
--Diluted $   0.12   $   0.10 $       0.32   $       0.29  
         
Weighted average number of common shares outstanding        
--Basic      8,106,499        7,598,626      8,120,091        7,407,787  
--Diluted      8,117,151        7,623,635      8,131,400        7,426,165  
                       

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
 
    Nine Months Ended September 30,
       2017        2016  
Cash flows from operating activities:        
  Net income   $   2,591,936     $   2,129,931  
  Adjustments to reconcile net income to net cash provided by    operating activities -        
  Amortization of deferred financing costs     95,378       51,474  
  Depreciation     3,398       2,752  
  Non cash compensation expense     9,798       10,192  
  Loss on write-down of investment in privately held company     20,000       10,000  
  Changes in operating assets and liabilities:        
    Interest receivable on loans     (161,823 )     78,234  
    Other assets     (15,922 )     (16,809 )
    Accounts payable and accrued expenses     24,730       (27,702 )
    Deferred origination fees       75,332         64,879  
      Net cash provided by operating activities     2,642,827       2,302,951  
         
Cash flows from investing activities:        
  Issuance of short term loans     (30,314,500 )     (24,299,500 )
  Collections received from loans     20,649,870       23,671,720  
  Purchase of fixed assets     (1,666 )     (3,019 )
    Net cash used in investing activities     (9,666,296 )     (630,799 )
         
Cash flows from financing activities:        
  Proceeds from (repayments of) line of credit, net     9,691,647       (7,558,044 )
  Repayments of short-term loans, net     ---       (1,095,620 )
  Cash restricted for reduction of line of credit     ---       (919,352 )
  Proceeds from public offerings, net     ---       9,539,347  
  Deferred financing costs     (43,122 )     ---  
  Proceeds from exercise of stock options and warrants     20,440       305,004  
  Purchase of treasury shares     (172,156 )     ---  
  Dividends paid     (2,457,455 )     (1,891,804 )
    Net cash provided by (used in) financing activities     7,039,354       (1,620,469 )
         
Net increase in cash and cash equivalents     15,885         51,683  
Cash and cash equivalents, beginning of period     96,299       106,836  
Cash and cash equivalents, end of period   $ 112,184     $ 158,519  
         
Supplemental cash flow information:        
Taxes paid during the period   $   2,971     $   1,948  
Interest paid during the period   $ 713,428     $ 546,015  
                 
Contact:Assaf Ran, CEOVanessa Kao, CFO(516) 444-3400

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