Thu, Apr 24, 11:02 AM (19 days ago)
**Manhattan Bridge Capital, Inc. (LOAN) Q1 2025 Financial Summary** **Financial Health and Performance:** Manhattan Bridge Capital, Inc. (LOAN) reported a decrease in total revenue for Q1 2025, amounting to $2,274,000, down from $2,573,000 in Q1 2024, a decline of 11.6%. This reduction was primarily due to lower interest income from loans, reflecting a decrease in loans receivable. Net income also decreased by 7.0% to $1,373,000, attributed to the decline in interest income, partially offset by a reduction in interest expense. **Profit Margins:** The company's operating margins showed a slight improvement, with operating income increasing to $1,368,634 from $1,471,711 in the previous year, despite higher general and administrative expenses. The net profit margin stood at approximately 60.4% for Q1 2025. **Cash Flow:** Operating cash flow increased to $1,181,000, up from $1,141,000 in Q1 2024, driven by a smaller increase in interest and other fees receivable on loans. Investing activities provided $1,758,000 in cash, significantly higher than the $565,000 in Q1 2024, due to higher loan collections. Financing activities used $2,918,000 in cash, primarily for repaying the Webster Credit Line and dividend payments. **Earnings Changes:** Earnings per share (EPS) decreased slightly to $0.12 from $0.13 in Q1 2024, reflecting the reduction in net income. The weighted average number of common shares outstanding remained relatively stable. **Trends and Uncertainties:** The company faces several uncertainties, including the need to refinance the Webster Credit Line and the 6% senior secured notes due in 2026. The success of these refinancing efforts will impact future liquidity and financial flexibility. Additionally, the company's reliance on the New York metropolitan area real estate market and the performance of its loan portfolio present risks that could affect future earnings. **Future Operations Impact:** Manhattan Bridge Capital, Inc. aims to grow its loan portfolio while maintaining capital preservation. The company plans to continue originating high-quality first mortgage loans and managing its portfolio to generate attractive risk-adjusted returns. However, the ability to achieve these goals will depend on market conditions, the performance of existing loans, and the success of refinancing efforts. **Conclusion:** Manhattan Bridge Capital, Inc. demonstrated resilience in Q1 2025, despite a challenging environment. The company's focus on disciplined lending and capital preservation positions it well to navigate uncertainties and pursue growth opportunities. However, the need to refinance significant debt obligations and the reliance on specific market conditions present risks that will require careful management.