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 Second Quarter Results

NEW YORK, N.Y. August 10, 2011 / 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, 2011 was approximately $342,000 compared to approximately $315,000 for the three month period ended June 30, 2010, an increase of 9%. For the three month period ended June 30, 2011, $276,000 of the Company's revenue represented interest income on the short term secured commercial loans that the Company offers to small businesses compared to $260,000 for the same period in 2010, and $66,000 represents origination fees on such loans compared to $55,000 for the same period in 2010. The increase in revenue represents an increase in lending operations.

Income from operations for the three month period ended June 30, 2011 was approximately $110,000 compared to approximately $123,000 for the same period ended June 30, 2010, a decrease of 11%. This decrease in income from operations resulted mainly from an increase in operating costs and expenses of $40,000, primarily attributable to an increase in payroll expenses due to restoration of our CEO’s salary in June 2010 and an increase in interest expense on loans and line of credit, offset by a decrease in equity-based compensation expense.

Net income for the three month period ended June 30, 2011 was $0.03 per basic and diluted share (based on 3.324 million shares and 3.398 million shares), or $87,000, versus net income of $0.05 per basic and diluted share (based on 3.324 million shares and 3.370 million shares) or $155,000 for the three month period ended June 30, 2010. This decrease in net income is mainly due to a decrease in other income due to the realized gains on the sale of marketable securities that were previously marked down which were recorded in the period ended June 30, 2010, in the amount of $96,000 and increases in operating costs and expenses, offset by the increase in revenue.

Total revenue for the six month period ended June 30, 2011 was approximately $680,000 compared to approximately $606,000 for the six month period ended June 30, 2010, an increase of 12%. For the six month period ended June 30, 2011, $558,000 of the Company's revenue represented interest income on the short term secured commercial loans that the Company offers to small businesses compared to $496,000 for the same period in 2010, and $122,000 represents origination fees on such loans compared to $110,000 for the same period in 2010.

Net income for the six month period ended June 30, 2011 was $0.05 per basic and diluted share (based on 3.324 million shares and 3.397 million shares), or $168,000, versus net income of $0.09 per basic and diluted share (based on 3.324 million shares and 3.368 million shares,) or $296,000 for the same period in 2010, a decrease of approximately $128,000. This decrease in net income is mainly due to a decrease in other income due to the realized gains on the sale of marketable securities that were previously marked down which were recorded in the period ended June 30, 2010, in the amount of $151,000 and increases in operating costs and expenses, offset by the increase in revenue.
           
As of June 30, 2011 total shareholders' equity was $7,962,000 compared to $7,763,000 as of December 31, 2010, an increase of $199,000.

Assaf Ran, Chairman of the Board and CEO stated, “During the second quarter we increased our leverage position and revenue and steadily kept the growth of our shareholders' equity. Our recent relocation to an office outside of NYC and additional saving measures will help reduce operating expenses.

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, 2011
(Unaudited)

December 31,2010
(Audited)

Current assets:

   

 

Cash and cash equivalents

$ 8,446

$ 386,023

Short term loans

9,040,839

8,156,293

         Interest receivable on short term loans

117,028

91,593

Other current assets

45,912

13,427

       Total current assets

9,212,225

8,647,336

 

 

 

Investment in real estate

675,000

---

Long term loan receivable

73,391

---

Property and equipment, net

909

2,425

Security deposit

23,864

17,515

Investment in privately held company, at cost

100,000

100,000

Deferred financing costs

90,986

109,183

                
            Total assets

 

$ 10,176,375

 

$ 8,876,459

   Liabilities and Shareholders’ Equity


Current liabilities:

 

 

Short term loans and line of credit

$ 1,359,465

$ 300,000

Accounts payable and accrued expenses

53,761

56,405

Deferred origination fees

104,850

76,428

Income taxes payable

196,512

180,513

       Total current liabilities

1,714,588

613,346

Long term liabilities:

 

 

Senior secured notes

500,000

500,000

                 Total liabilities

2,214,588

1,113,346

             
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

9,619,604

9,588,849

Treasury stock, at cost- 80,731 shares

(241,400)

(241,400)

Accumulated deficit

(1,419,822)

(1,587,741)

          Total shareholders’ equity

7,961,787

7,763,113

            
 Total liabilities and shareholders’ equity

 

$ 10,176,375

 

$ 8,876,459


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

 

Three Months
Ended June 30,

Six Months
Ended June 30,

 

2011

2010

2011

2010

 

Interest income from short term loans

 

$ 276,037

 

$ 259,661

 

 $ 558,402

 
$ 495,864

Origination fees

              65,572

            55,368

122,009

110,339

     Total Revenue

            341,609

          315,029

            680,411

          606,203

 

  

  

 

 

Operating costs and expenses:

 

 

 

 

Interest expense on loans and line of credit

                                        
        28,289

                                        
        9,593

 

44,965

 

14,727

General and administrative expenses

                   203,809

          
182,451

   
390,529

   
324,527

     Total operating costs and expenses

 

232,098

 

192,044

                             
         435,494

                             
         339,254

Income from operations

         109,511

           122,985

        244,917

        266,947

 

 

 

 

 

Interest and dividend income

---

           824

---

4,167

Realized gain on marketable securities that were previously marked down

             
  
             ---

             
             96,132

---

151,419

Other income

            31,590

                ---

39,000

             ---

     Total other income

            31,590

         96,956

              39,000

        155,586

Income from operations before
 income tax expense

                              
           141,101

                              
          219,941

         283,917

         422,533

Income tax expense

          (54,000)

         (65,000)

       (116,000)

       (127,000)

Net Income

     $      87,101

    $   154,941

  $     167,917

  $     295,533

 

 

 

 

 

Basic and diluted net income per common share outstanding:

 

 

 

 

--Basic

    $     0.03

    $     0.05

    $     0.05

    $     0.09

--Diluted

    $     0.03

    $     0.05

   $      0.05

   $      0.09

 

 

 

 

 

Weighted average number of common shares outstanding

 

 

 

 

--Basic

3,324,459

3,324,459

3,324,459

3,324,459

--Diluted

3,397,597

3,370,329

3,396,873

3,368,096

 

 

 

 


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

 

 

 2011

 

 2010

Cash flows from operating activities:

 

 

 

 

  Net Income

 

    $    167,917

 

    $    295,533

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

 

 

 

 

  Amortization of deferred financing costs

 

18,197

 

----

  Depreciation

 

1,516

 

1,516

  Non cash compensation expense

 

30,755

 

45,754

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

 

---

 

(151,419)

  Changes in operating assets and liabilities:

 

 

 

 

       Interest receivable on short term loans

 

(25,435)

 

(8,865)

       Other current and non current assets

 

(38,833)

 

(85,151)

       Accounts payable and accrued expenses

 

(2,643)

 

(8,888)

       Deferred origination fees

 

28,422

 

(45,859)

       Income taxes payable

 

15,999

 

26,560

              Net cash provided by operating activities

 

195,895

 

69,181

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

   Proceeds from sale of marketable securities

 

---

 

431,864

   Investment in real estate

 

          (675,000) 

 

----

   Issuance of short term loans

 

(3,270,800)

 

(2,936,500)

   Collections received from loans

 

2,312,863

 

1,706,421

             Net cash used in investing activities

 

            (1,632,937)

 

           (798,215)

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

    Proceeds from loans and line of credit

 

1,059,465

 

300,000

              Net cash provided by financing activities

 

1,059,465

 

300,000

 

 

 

 

 

Net decrease in cash

 

         (377,577)

 

         (429,034)

Cash and cash equivalents, beginning of the year

 

386,023

 

707,449

Cash and cash equivalents, end of period

 

    $        8,446

 

    $    278,415

 

 

 

 

 

Supplemental Cash Flow Information:

 

 

 

 

Taxes paid during the period

 

$ 100,001

 

$    100,440

Interest paid during the period

 

$   44,965

 

$      14,727

Non-Cash Investing and Financing Activities:

 

 

 

 

Forgiveness of debt

 

---

 

$      27,961