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

 

Press Releases

Manhattan Bridge Capital, Inc. Reports Second Quarter Results

 158% Increase in Net Income

NEW YORK, N.Y. August 3, 2010 / GLOBE Newswire / -- Manhattan Bridge Capital, Inc. (NASDAQ: LOAN)

         Manhattan Bridge Capital, Inc. announced today that total revenue for the three month period ended June 30, 2010 was approximately $315,000 compared to approximately $250,000 for the three month period ended June 30, 2009 an increase of 26%. For the three month period ended June 30, 2010, $260,000 of the Company's revenue represented interest income on the short term secured commercial loans that the Company offers to small businesses compared to $204,000 for the same period in 2009, and $55,000 represents origination fees on such loans compared to $46,000 for the same period in 2009. The increase in revenue represents an increase in lending operations.

       Income from operations for the three month period ended June 30, 2010 was approximately $123,000 compared to approximately $78,000 for the same period ended June 30, 2009, an increase of 58%. This increase in income from operations resulted mainly from an increase in revenue from short term secured commercial loans of $65,000, offset by an increase in operating costs and expenses of $20,000.

        Net income for the three month period ended June 30, 2010 was $0.05 per basic and diluted share (based on 3.324 million shares and 3,370 million shares, respectively), or $154,941, versus net income of $0.02 per basic and diluted share (based on 3.3 million shares) or $60,001 for the three month period ended June 30, 2009. This increase in net income was mainly due to an increase in income from operations and other income, offset by an increase in income tax expense and in operating costs and expenses.

           Total revenue for the six month period ended June 30, 2010 was approximately $606,000 compared to approximately $482,000 for the six month period ended June 30, 2009 an increase of 26%. For the six month period ended June 30, 2010, $496,000 of the Company's revenue represented interest income on the short term secured commercial loans that the Company offers to small businesses compared to $398,000 for the same period in 2009, and $110,000 represents origination fees on such loans compared to $84,000 for the same period in 2009.
           Net income for the six month period ended June 30, 2010 was $0.09 per basic and diluted share (based on 3.324 million shares and 3,368 million shares, respectively), or $295,533, versus net income of $0.04 per basic and diluted share (based on 3.3 million shares) or $145,610 for the same period in 2009, an increase of approximately $150,000. This increase in net income is mainly due to increases in revenue and other income offset by increases in operating costs and expenses and income tax expense.
           

As of June 30, 2010 total shareholders' equity was $7,701,000 compared to $7,455,000 as of December 31, 2009, an increase of $246,000.

Assaf Ran, Chairman of the Board and CEO stated, "This quarter financials results reinforces our previous analysis and announcements that our business model works. As we have maintained growth and increased net earnings we have avoided problematic situations in our portfolio."
 “During the second quarter we have achieved certain goals in relations to leveraging as well as to work with participators in order to secure continued growth in the future.” 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, 2010
  (Unaudited)

December31,2009
(Audited)

Current assets:

   

 

Cash and cash equivalents

$ 278,415

$ 707,449

Investment in marketable securities

---

404,268

             Total cash and cash equivalents and investment in marketable securities

 

278,415

 

1,111,717

 

 

 

Short term loans

7,706,700

6,476,621

         Interest receivable on short term loans

69,072

60,207

Other current assets

111,719

26,568

       Total current assets

8,165,906

7,675,113

 

 

 

Property and equipment, net

3,942

5,458

Security deposit

17,515

17,515

Investment in privately held company, at cost

100,000

100,000

                
            Total assets

 

$ 8,287,363

 

$ 7,798,086

Liabilities and Shareholders’ Equity


Current liabilities:

 

 

Lines of credit

$ 300,000

$ ---

Accounts payable and accrued expenses

40,919

77,768

Deferred origination fees

56,892

102,751

Income taxes payable

188,742

162,182

        Total current liabilities

586,553

342,701

             
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; 3,405,190 issued and 3,324,459 outstanding

 

3,405

 

3,405

Additional paid-in capital

9,550,477

9,476,762

Treasury stock, at cost- 80,731 shares

(241,400)

                     (241,400)

Accumulated other comprehensive income

---

123,823

Accumulated deficit

(1,611,672)

(1,907,205)

          Total shareholders’ equity

7,700,810

7,455,385

            
 Total liabilities and shareholders’ equity

 

$ 8,287,363

 

$ 7,798,086

 

 

 

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

 

Three Months
Ended June 30,

Six Months
Ended June 30,

 

2010

2009

2010

2009

 

Interest income from short term loans

 

$ 259,661

 

$ 203,917

 

 $ 495,864

 

 $ 397,615

Origination fees

             55,368

            45,666

110,339

83,945

     Total Revenue

           315,029

          249,583

         606,203

          481,560

 

  

  

 

 

Operating costs and expenses:

 

 

 

 

Interest expense on lines of credit used

                                        
        9,593

 

               ----

 

14,727

 

----

General and administrative expenses

                   182,451

             171,840

   
324,527

   
305,103

     Total operating costs and expenses

 

192,044

             171,840

                             
         339,254

                         
          305,103

Income from operations

         122,985

           77,743

        266,947

        176,457

 

 

 

 

 

Interest and dividend income

           824

6,614

4,167

15,838

Realized (loss) gain on marketable securities

---

(5,940)

---

(5,940)

Realized gain on marketable securities that were previously marked down

             
  
             96,132

          18,658

151,419

18,658

     Total other income

            96,956

           19,332

        155,586

          28,556

Income from operations before
 income tax expense

                              
           219,941

            97,075

         422,533

         205,013

Income tax expense

          (65,000)

 (37,074)

       (127,000)

(59,403)

Net Income

    $     154,941

   $     60,001

  $     295,533

   $   145,610

 

 

 

 

 

Basic and diluted net income per common share outstanding:

 

 

 

 

--Basic

    $     0.05

    $     0.02

    $     0.09

    $     0.04

--Diluted

    $     0.05

    $     0.02

   $      0.09

   $      0.04

 

 

 

 

 

Weighted average number of common shares outstanding

 

 

 

 

--Basic

   3,324,459

   3,325,760

   3,324,459

   3,325,760

--Diluted

   3,370,329

   3,328,942

   3,368,096

   3,325,980

 

 

 

 

 

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

Six Months

  1. Ended June 30,

 

 

 2010

 

 2009

Cash flows from operating activities:

 

 

 

 

  Net Income

 

    $    295,533

 

    $    145,610

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

 

 

 

 

  Depreciation

 

1,516

 

2,445

  Non cash compensation expense

 

45,754

 

45,659

  Realized loss on sale of marketable securities

 

----

 

5,940

  Realized gain on sale of marketable securities that were 
  previously marked down

 

(151,419)

 

(18,658)

  Changes in operating assets and liabilities:

 

 

 

 

       Interest receivable on short term loans

 

(8,865)

 

(12,022)

       Other current and non current assets

 

(85,151)

 

(27,846)

       Accounts payable and accrued expenses

 

(8,888)

 

(36,316)

       Deferred origination fees

 

(45,859)

 

44,859

       Income tax payable

 

26,560

 

51,078

              Net cash provided by operating activities

 

69,181

 

200,749

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

   Proceeds from sale of marketable securities, auction rate securities and annuity contract

 

431,864

 

187,834

   Issuance of short term and long term loans

 

(2,936,500)

 

(4,058,604)

   Collection received from short term loans

 

1,706,421

 

2,724,487

             Net cash used in investing activities

 

            (798,215)

 

(1,146,283)

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

    Use of lines of credit

 

300,000

 

158,028

              Net cash provided by financing activities

 

300,000

 

158,028

 

 

 

 

 

Net (decrease) increase in cash

 

         (429,034)

 

         (787,506)

Cash and cash equivalents, beginning of the year

 

707,449

 

884,296

Cash and cash equivalents, end of period

 

    $    278,415

 

    $      96,790

 

 

 

 

 

Supplemental Cash Flow Information:

 

 

 

 

Forgiveness of debt

 

$      27,961

 

$            ----

Taxes paid during the period

 

$    100,440

 

$        8,325

Non-cash  investing and financing activities

 

 

 

 

Interest paid during the period

 

$      14,727

 

$             72