a
60 Cutter Mill Rd.
Suite 205
Great Neck, NY
11021
Tel: 516.444.3400
Fax: 516.444.3404

 

Press Releases

Contact:
Assaf Ran, CEO
Vanessa Kao, CFO
(516) 444-3400
SOURCE: Manhattan Bridge Capital, Inc.  

 

Manhattan Bridge Capital, Inc. Reports 21% Increase in Revenue

LONG ISLAND, N.Y. August 6, 2012 / GLOBE Newswire / -- Manhattan Bridge Capital, Inc. (NASDAQ: LOAN)

Manhattan Bridge Capital, Inc. announced today that its total revenue for the three month period ended June 30, 2012 was approximately $415,000 compared to approximately $342,000 for the three month period ended June 30, 2011, an increase of $73,000 or 21.3%. For the three month period ended June 30, 2012, approximately $332,000 of the Company's revenue represents interest income on the secured, commercial loans that the Company offers to small businesses compared to approximately $276,000 for the same period in 2011, and approximately $82,000 represents origination fees on such loans compared to approximately $66,000 for the same period in 2011. The increase in revenue represents an increase in lending operations.

Income from operations for the three month period ended June 30, 2012 was approximately $158,000 compared to approximately $110,000 for the same period ended June 30, 2011, an increase of $48,000 or 43.6%. This increase in income from operations resulted mainly from an increase in revenue, offset by an increase in interest and amortization of debt service costs.

Net income for the three month period ended June 30, 2012 was $0.02 per basic and diluted share (based on 4.324 million shares and 4.331 million shares), or $80,000, versus net income of $0.03 per basic and diluted share (based on 3.324 million shares and 3.398 million shares) or $87,000 for the three month period ended June 30, 2011. This decrease in net income is mainly due to an increase in legal fees and in income tax expense, and a decrease in other income, offset by the increase in revenue.

Total revenue for the six month period ended June 30, 2012 was approximately $806,000 compared to approximately $680,000 for the six month period ended June 30, 2011, an increase of $126,000 or 18.5%. For the six month period ended June 30, 2012, approximately $640,000 of the Company's revenue represents interest income on the secured, commercial loans that the Company offers to small businesses compared to approximately $558,000 for the same period in 2011, and approximately $166,000 represents origination fees on such loans compared to approximately $122,000 for the same period in 2011. The increase in revenue represents an increase in lending operations.

Income from operations for the six month period ended June 30, 2012 was approximately $338,000 compared to approximately $245,000 for the same period ended June 30, 2011, an increase of $93,000 or 38%. This increase in income from operations resulted mainly from an increase in revenue, offset by an increase in interest and amortization of debt service costs.

Net income for the six month period ended June 30, 2012 was $0.05 per basic and diluted share (based on 4.324 million shares and 4.332 million shares), or $195,000, versus net income of $0.05 per basic and diluted share (based on 3.324 million shares and 3.397 million shares) or $168,000 for the same period in 2011, an increase of $27,000. This increase in net income is mainly due to an increase in income from operations, offset by an increase in income tax expense and a decrease in other income.
           
As of June 30, 2012 total shareholders' equity was approximately $8,291,000 compared to approximately $8,088,000 as of December 31, 2011, an increase of $203,000.

Assaf Ran, Chairman of the Board and CEO stated, “During the second quarter, we executed an extremely significant transaction, our first major line of credit. This $3.5 million line will help us continue our growth, both in revenue and in net income and is expected to be reflected in our financial results as soon as the third quarter of 2012. During the second quarter, we have paid a significant amount of money for legal fees in relation to the derivative lawsuit that was filed, dismissed, and filed again by a minority shareholder, Mr. Alan R. Kahn. We are insured to cover the legal fees but are required to pay the initial $75,000. We are preparing a motion to dismiss this amended complaint, which, subject to discussions with the minority shareholder’s counsel and approval of the court, we expect to file this month.”

“In the second quarter, we also experienced a significant increase in pay-off activity on existing loans and the demand for new loans. This activity represents some recovery in the markets in which we operate. Therefore, I am confident that we are on track for continuing growth,” added Mr. Ran.

Manhattan Bridge Capital, Inc. provides short term, secured, non-banking, commercial loans to
small businesses. 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 conditions 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)  the successful integration of new businesses that we may acquire; (ii) the success of new operations which we have commenced and of our new business strategy; (iii) our limited operating history in our new business; (iv) potential fluctuations in our quarterly operating results; and (v) challenges facing us relating to our growth.  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 SHEET

 

Assets

June 30,  2012
(unaudited)

December 31,2011
(audited)

Current assets:

   

   

Cash and cash equivalents          

$        166,506

$      221,905

Short term loans receivable

6,535,844

6,916,090

Interest receivable on loans

119,479

109,905

Other current assets

49,840

16,463

            Total current assets

6,871,669

7,264,363

 

 

 

Investment in real estate

146,821

146,821

Long term loans receivable

4,529,866

2,498,262

Property and equipment, net

266

588

Security deposit

6,349

6,349

Investment in privately held company, at cost

100,000

100,000

Deferred financing costs

67,945

72,788

                
            Total assets

 

$ 11,722,916

 

$ 10,089,171

Liabilities and Shareholders’ Equity


Current liabilities:

 

 

Line of credit and short term loans

$   2,639,465

$   1,159,465

Accounts payable and accrued expenses

24,631

60,072

Deferred origination fees

142,720

112,780

Income taxes payable

125,256

168,786

       Total current liabilities

2,932,072

1,501,103

Long term liabilities:

 

 

Senior secured notes

500,000

500,000

                 Total liabilities

3,432,072

2,001,103

             
Commitments and contingencies

 

 

Shareholders’ equity:

 

 

Preferred shares - $.01 par value; 5,000,000 shares authorized; no shares issued

 

---

 

---

Common shares - $.001 par value; 25,000,000 authorized; 4,405,190 issued and 4,324,459 outstanding

 

4,405

 

4,405

Additional paid-in capital

9,664,009

9,656,280

Treasury stock, at cost- 80,731 shares

(241,400)

(241,400)

Accumulated deficit

(1,136,170)

(1,331,217)

           Total shareholders’ equity

8,290,844

8,088,068

             
 Total liabilities and shareholders’ equity

 

$ 11,722,916

 

$ 10,089,171


MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)

 

Three Months
Ended June 30,

Six Months
Ended June 30,

 

2012

2011

2012

2011

 

Interest income from loans

 

$ 332,462

 

$ 276,037

 

 $ 640,064

 

 $ 558,402

Origination fees

            82,099

           65,572

166,323

122,009

     Total Revenue

          414,561

         341,609

          806,387

          680,411

 

   

   

 

 

Operating costs and expenses:

 

 

 

 

Interest and amortization of debt service costs

                                       
        58,932

                                                37,388

 

100,074

 

63,162

Referral fees

1,530

763

3,659

1,411

General and administrative expenses

                   196,206

     
   193,947

   
364,182

   
370,921

     Total operating costs and expenses

 

256,668

 

232,098

                            
         467,915

                       
        435,494

 

 

 

 

 

Income from operations

   157,893

109,511

338,472

244,917

 

Other income

          6,887

                     31,590

              13,774

              39,000

 

Income from operations before
 income tax expense

                             
           164,780

                          
           141,101

         352,246

         283,917

Income tax expense

         (84,700)

        (54,000)

      (157,200)

      (116,000)

 

Net Income

     $    80,080

   
 $  87,101

  $ 195,046

  $ 167,917

 

 

 

 

 

Basic and diluted net income per common share outstanding:

 

 

 

 

--Basic

    $     0.02

    $     0.03

    $     0.05

    $     0.05

--Diluted

    $     0.02

    $     0.03

   $      0.05

   $      0.05

 

 

 

 

 

Weighted average number of common shares outstanding

 

 

 

 

--Basic

4,324,459

3,324,459

4,324,459

3,324,459

--Diluted

4,331,140

3,397,597

4,332,322

3,396,873

    

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
Six Months
Ended June 30,

 

 

 2012

 

 2011

Cash flows from operating activities:

 

 

 

 

  Net Income

 

    $   195,046

 

    $   167,917

  Adjustments to reconcile net income to net cash provided by  
     operating activities -

 

 

 

 

  Amortization of deferred financing costs

 

4,843

 

18,197

  Depreciation

 

322

 

1,516

  Non cash compensation expense

 

7,730

 

30,755

  Changes in operating assets and liabilities:

 

 

 

 

       Interest receivable on loans

 

(9,574)

 

(25,435)

       Other current and non current assets

 

(33,376)

 

(38,833)

       Accounts payable and accrued expenses

 

(35,441)

 

(2,643)

       Deferred origination fees

 

29,940

 

28,422

       Income taxes payable

 

(43,530)

 

15,999

              Net cash provided by operating activities

 

115,960

 

195,895

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

   Investment in real estate

 

          --- 

 

          (675,000) 

   Issuance of short term loans

 

(5,896,000)

 

(3,270,800)

   Collections received from loans

 

4,244,641

 

2,312,863

             Net cash used in investing activities

 

        (1,651,359)

 

        (1,632,937)

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

    Proceeds from loans and line of credit, net

 

1,480,000

 

1,059,465

              Net cash provided by financing activities

 

1,480,000

 

1,059,465

 

 

 

 

 

Net decrease in cash and cash equivalents

 

          (55,399)

 

        (377,577)

Cash and cash equivalents, beginning of the year

 

221,905

 

386,023

Cash and cash equivalents, end of period

 

    $   166,506

 

    $       8,446

 

 

 

 

 

Supplemental Cash Flow Information:

 

 

 

 

Taxes paid during the period

 

$    200,730

 

$     100,001

Interest paid during the period

 

$      79,206

 

$       44,965