Manhattan Bridge Capital, Inc. Reports Second Quarter 2024 Results
Rhea-AI Summary
Manhattan Bridge Capital (Nasdaq: LOAN) reported its Q2 2024 results, showing a 1.8% increase in total revenues to $2,443,000 compared to Q2 2023. The company's net income slightly decreased by 0.9% to $1,409,000, or $0.12 per share. For the first half of 2024, total revenues rose by 4.6% to $5,016,000, with net income increasing by 7.6% to $2,885,000, or $0.25 per share. The revenue growth was primarily due to higher interest rates on commercial loans, partially offset by reduced loan receivables and slower new loan originations. As of June 30, 2024, total stockholders' equity stood at approximately $43,184,000. The company's CEO, Assaf Ran, noted that while real estate markets in their operational areas remain slow due to high interest rates, property prices are holding steady or increasing due to inventory and inflation impacts.
Positive
- Total revenues increased by 1.8% to $2,443,000 in Q2 2024
- First half 2024 revenues grew by 4.6% to $5,016,000
- Net income for H1 2024 increased by 7.6% to $2,885,000
- Earnings per share for H1 2024 rose to $0.25 from $0.23 in H1 2023
- Higher interest rates on commercial loans boosted interest income
Negative
- Q2 2024 net income decreased by 0.9% to $1,409,000
- Reduction in loans receivable impacted revenue growth
- Slowdown in new loan originations affected origination fees
- Real estate markets in operational areas remain slow due to high interest rates
Insights
Revenue Analysis: Manhattan Bridge Capital's revenue for Q2 2024 increased by
Net Income: Despite the increase in revenue, net income for Q2 2024 slightly decreased by
Investor Perspective: For retail investors, the minimal growth in Q2 might be a concern, but the overall H1 performance is promising. The steady revenue growth from interest income and controlled expenses are positive signs. However, the company's future performance will heavily depend on its ability to navigate the current high-interest-rate environment and manage loan origination effectively.
Industry Context: The real estate market remains sluggish due to high-interest rates, yet Manhattan Bridge Capital's performance shows resilience. Their strategy to capitalize on higher interest rates while mitigating risks through secured loans with personal guarantees appears sound. The company's focus on ‘cherry-picking’ opportunities amidst a lack of inventory and inflationary pressures is a cautious yet optimistic approach.
Competitive Position: Manhattan Bridge Capital's niche in providing secured loans to real estate investors differentiates it from larger financial institutions. Their ability to maintain relatively stable revenues and net income despite market pressures speaks to effective management and a robust business model.
Investment Implications: Long-term investors might view the company's cautious strategy and steady income from interest as a sign of stability. The slight dip in Q2 net income could be seen as a minor hiccup in an otherwise positive financial trajectory for H1 2024.
Technology Integration: While the article does not delve into the technological aspects of Manhattan Bridge Capital's operations, it is worth considering how fintech advancements could impact their business. Efficient loan origination processes, risk assessment through AI and improved customer relationship management systems could provide a competitive edge in the high-interest rate environment.
Future Prospects: Embracing technology to streamline operations and improve customer experience could help the company maintain its growth trajectory. Investors should look for signals of technological investments or innovations in future reports, as these could enhance operational efficiency and profitability.
AI-generated analysis. How Rhea-AI works. Not financial advice.
GREAT NECK, N.Y., July 22, 2024 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) (the “Company”) announced today that its total revenues for the three months ended June 30, 2024 were approximately
Net income for the three months ended June 30, 2024 was approximately
Total revenues for the six months ended June 30, 2024 were approximately
Net income for the six months ended June 30, 2024 was approximately
As of June 30, 2024, total stockholders' equity was approximately
Assaf Ran, Chairman of the Board and Chief Executive Officer of the Company, stated, “While real estate markets in our geographic areas of operations are still slow and heavy due to the high-interest-rate environment, it seems like prices of real estate properties are holding on and sometimes increasing due to lack of inventory and the impact of inflation. As always, we’re carefully monitoring our portfolio and cherry-picking good opportunities.”
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 | |||||
| June 30, 2024 | December 31, 2023 | ||||
| Assets | (unaudited) | (audited) | |||
| Loans receivable | $ | 66,859,733 | $ | 73,048,403 | |
| Interest and other fees receivable on loans | 1,488,784 | 1,395,905 | |||
| Cash | 105,929 | 104,222 | |||
| Cash - restricted | --- | 1,587,773 | |||
| Other assets | 134,321 | 63,636 | |||
| Right-of-use asset - operating lease, net | 180,446 | 207,364 | |||
| Deferred financing costs, net | 23,101 | 27,583 | |||
| Total assets | $ | 68,792,314 | $ | 76,434,886 | |
| Liabilities and Stockholders’ Equity | ||||||
| Liabilities: | ||||||
| Line of credit | $ | 17,345,510 | $ | 25,152,338 | ||
| Senior secured notes (net of deferred financing costs of | 5,865,472 | 5,827,931 | ||||
| Deferred origination fees | 646,027 | 719,019 | ||||
| Accounts payable and accrued expenses | 242,248 | 295,292 | ||||
| Operating lease liability | 193,800 | 220,527 | ||||
| Dividends payable | 1,315,445 | 1,287,073 | ||||
| Total liabilities | 25,608,502 | 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 | 45,555,408 | 45,548,876 | ||||
| Less: Treasury stock, at cost – 318,407 and 316,407 shares, respectively | (1,070,406 | ) | (1,060,606) | |||
| Accumulated deficit | (1,312,947 | ) | (1,567,321) | |||
| Total stockholders’ equity | 43,183,812 | 42,932,706 | ||||
| Total liabilities and stockholders’ equity | $ | 68,792,314 | $ | 76,434,886 | ||
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | ||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Revenue: Interest income from loans | $ | 2,032,687 | $ | 1,942,527 | $ | 4,175,174 | $ | 3,896,349 | ||||
| Origination fees | 410,528 | 456,835 | 841,119 | 900,806 | ||||||||
| Total revenue | 2,443,215 | 2,399,362 | 5,016,293 | 4,797,155 | ||||||||
| Operating costs and expenses: | ||||||||||||
| Interest and amortization of deferred financing costs | 603,230 | 595,427 | 1,293,819 | 1,241,690 | ||||||||
| Referral fees | 500 | 1,000 | 1,000 | 1,292 | ||||||||
| General and administrative expenses | 434,282 | 400,979 | 844,560 | 897,075 | ||||||||
| Total operating costs and expenses | 1,038,012 | 997,406 | 2,139,379 | 2,140,057 | ||||||||
| Income from operations | 1,405,203 | 1,401,956 | 2,876,914 | 2,657,098 | ||||||||
| Other income | 4,500 | 20,380 | 9,000 | 24,880 | ||||||||
| Income before income tax expense | 1,409,703 | 1,422,336 | 2,885,914 | 2,681,978 | ||||||||
| Income tax expense | (650 | ) | (650 | ) | (650 | ) | (650 | ) | ||||
| Net income | $ | 1,409,053 | $ | 1,421,686 | $ | 2,885,264 | $ | 2,681,328 | ||||
| Basic and diluted net income per common share outstanding: | ||||||||||||
| --Basic | $ | 0.12 | $ | 0.12 | $ | 0.25 | $ | 0.23 | ||||
| --Diluted | $ | 0.12 | $ | 0.12 | $ | 0.25 | $ | 0.23 | ||||
| Weighted average number of common shares outstanding: | ||||||||||||
| --Basic | 11,438,651 | 11,475,406 | 11,438,662 | 11,485,116 | ||||||||
| --Diluted | 11,438,651 | 11,475,406 | 11,438,662 | 11,485,116 | ||||||||
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (unaudited) FOR THE THREE MONTHS ENDED JUNE 30, 2024 | ||||||||||
| Common Shares | Additional Paid in Capital | Treasury Stock | Accumulated Deficit | Totals | ||||||
| Shares | Amount | Shares | Cost | |||||||
| Balance, April 1, 2024 | 11,757,058 | 318,407 | ) | ) | ||||||
| Non - cash compensation | 3,266 | 3,266 | ||||||||
| Dividends declared and payable | (1,315,445 | ) | (1,315,445 | ) | ||||||
| Net income | 1,409,053 | 1,409,053 | ||||||||
| Balance, June 30, 2024 | 11,757,058 | 318,407 | ) | ) | ||||||
FOR THE THREE MONTHS ENDED JUNE 30, 2024 | ||||||||||
| Common Shares | Additional Paid in Capital | Treasury Stock | Accumulated Deficit | Totals | ||||||
| Shares | Amount | Shares | Cost | |||||||
| Balance, April 1, 2023 | 11,757,058 | 262,113 | ) | ) | ||||||
| Purchase of treasury shares | 33,360 | (164,806 | ) | (164,806 | ) | |||||
| Non - cash compensation | 3,266 | 3,266 | ||||||||
| Dividends declared and payable | (1,289,428 | ) | (1,289,428 | ) | ||||||
| Net income | 1,421,686 | 1,421,686 | ||||||||
| Balance, June 30, 2024 | 11,757,058 | 295,473 | ) | ) | ||||||
FOR THE SIX MONTHS ENDED JUNE 30, 2024 | ||||||||||
| Common Shares | Additional Paid in Capital | Treasury Stock | Accumulated Deficit | Totals | ||||||
| Shares | Amount | Shares | Cost | |||||||
| Balance, January 1, 2024 | 11,757,058 | 316,407 | ) | ) | | |||||
| Purchase of treasury shares | 2,000 | (9,800 | ) | (9,800 | ) | |||||
| Non - cash compensation | 6,532 | 6,532 | ||||||||
| Dividends paid | (1,315,445 | ) | (1,315,445 | ) | ||||||
| Dividends declared and payable | (1,315,445 | ) | (1,315,445 | ) | ||||||
| Net income | 2,885,264 | 2,885,264 | ||||||||
| Balance, June 30, 2024 | 11,757,058 | 318,407 | ) | ) | ||||||
FOR THE SIX MONTHS ENDED JUNE 30, 2024 | ||||||||||
| Common Shares | Additional Paid in Capital | Treasury Stock | Accumulated Deficit | Totals | ||||||
| Shares | Amount | Shares | Cost | |||||||
| Balance, January 1, 2023 | 11,757,058 | 262,113 | ) | | ) | | ||||
| Purchase of treasury shares | 33,360 | (164,806 | ) | (164,806 | ) | |||||
| Non - cash compensation | 6,532 | 6,532 | ||||||||
| Dividends paid | (1,293,181 | ) | (1,293,181 | ) | ||||||
| Dividends declared and payable | (1,289,428 | ) | (1,289,428 | ) | ||||||
| Net income | 2,681,328 | 2,681,328 | ||||||||
| Balance, June 30, 2024 | 11,757,058 | 295,473 | ) | ) | ||||||
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) | |||||||||
| Six Months Ended June 30, | |||||||||
| 2024 | 2023 | ||||||||
| Cash flows from operating activities: | |||||||||
| Net income | $ | 2,885,264 | $ | 2,681,328 | |||||
| Adjustments to reconcile net income to net cash provided by operating activities - | |||||||||
| Amortization of deferred financing costs | 44,191 | 49,494 | |||||||
| Adjustment to right-of-use asset - operating lease and liability | 190 | 1,230 | |||||||
| Depreciation | 2,209 | 1,946 | |||||||
| Non-cash compensation expense | 6,532 | 6,532 | |||||||
| Changes in operating assets and liabilities: | |||||||||
| Interest and other fees receivable on loans | (92,879 | ) | 89,214 | ||||||
| Other assets | (71,703 | ) | (72,115 | ) | |||||
| Accounts payable and accrued expenses | (53,044 | ) | (58,132 | ) | |||||
| Deferred origination fees | (72,992 | ) | 17,853 | ||||||
| Net cash provided by operating activities | 2,647,768 | 2,717,350 | |||||||
| Cash flows from investing activities: | |||||||||
| Issuance of short-term loans | (19,677,520 | ) | (28,122,249 | ) | |||||
| Collections received from loans | 25,866,190 | 32,811,877 | |||||||
| Purchase of fixed assets | (1,191 | ) | (5,085 | ) | |||||
| Net cash provided by investing activities | 6,187,479 | 4,684,543 | |||||||
| Cash flows from financing activities: | |||||||||
| Repayment of line of credit, net | (7,806,828 | ) | (4,323,513 | ) | |||||
| Dividends paid | (2,602,518 | ) | (2,730,049 | ) | |||||
| Purchase of treasury shares | (9,800 | ) | (164,806 | ) | |||||
| Deferred financing costs incurred | (2,167 | ) | (38,191 | ) | |||||
| Net cash used in financing activities | (10,421,313 | ) | (7,256,559 | ) | |||||
| Net (decrease) increase in cash | (1,586,066 | ) | 145,334 | ||||||
| Cash and cash - restricted, beginning of period* | 1,691,995 | 103,540 | |||||||
| Cash, end of period | $ | 105,929 | $ | 248,874 | |||||
| Supplemental Disclosure of Cash Flow Information: | |||||||||
| Cash paid during the period for taxes | $ | 650 | $ | 650 | |||||
| Cash paid during the period for interest | $ | 1,297,587 | $ | 1,215,297 | |||||
| Cash paid during the period for operating leases | $ | 32,208 | $ | 31,863 | |||||
Supplemental Schedule of Noncash Financing Activities: | |||||||||
| Dividend declared and payable | $ | 1,315,445 | $ | 1,289,428 | |||||
| Loan holdback relating to mortgage receivable | $ | --- | $ | 17,500 | |||||
*At December 31, 2023, cash and restricted cash consisted of
