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
Inbar Evron-Yogev, CFO
(212) 489-6800
SOURCE: Manhattan Bridge Capital, Inc.

 

 

Manhattan Bridge Capital, Inc. Reports Third Quarter Financial

Results- Further Increased Revenue and Earnings

         
          NEW YORK, N.Y. November 2, 2009 / GLOBE Newswire / -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN),(the “Company”) announced today that total revenue for the three month period ended September 30, 2009 was approximately $289,000 compared to approximately $200,000 for the same period in 2008, an increase of $89,000 or 44.5%. For the three month period ended September 30, 2009, $235,000 of the Company's revenue represented interest income on the short term secured commercial loans that the Company offers to small businesses compared to $178,000 for the same period in 2008, and $54,000 represents origination fees on such loans compared to $22,000 for the same period in 2008.

       Income from operations for the three month period ended September 30, 2009 was approximately $140,000 compared to approximately $44,000 for the same period ended September 30, 2008, an increase of $96,000. This increase in income from operations resulted mainly from increased revenue from short term secured commercial loans.

      Net income for the three month period ended September 30, 2009 was $0.03 per basic and diluted share (based on 3.3 million shares), or $83,593, versus net income of $0.02 per basic and diluted share (based on 3.2 million shares) or $48,809 for the three month period ended September 30, 2008. This increase in net income was mainly due to an increase in income from operations, offset by an increase in income tax expense and a decrease in other income.

      Total revenues for the nine month period ended September 30, 2009 were $770,000 versus total revenues of $544,000 for the nine month period ended September 30, 2008. For the nine month period ended September 30, 2009, $633,000 of the Company's revenue represented interest income on the short term secured commercial loans that the Company offers to small businesses compared to $489,000 for the same period in 2008, and $137,000 represents origination fees on such loans compared to $55,000 for the same period in 2008.

      Net income for the nine month period ended September 30, 2009 was $0.07 per basic and diluted share (based on 3.3 million shares), or $229,203, versus net income of $0.07 per basic and diluted share (based on 3.2 million shares) or $240,723 for the same period in 2008, a decrease of approximately $12,000. This decrease in net income was mainly due to income from discontinued operations of approximately $73,000 that was recorded in the nine month period ended September 30, 2008, an increase in income tax expense of approximately $109,000 and a decrease in other income of approximately $92,000, offset by an increase in income from operations of $262,000.

      As of September 30, 2009, the Company reported approximately $6,965,000 of outstanding short term loans and $601,000 of cash and cash equivalents and marketable securities.

      As of September 30, 2009 total shareholders' equity was $7,392,000 compared to $6,990,000 as of December 31, 2008, an increase of $402,000.

       Assaf Ran, Chairman of the Board and CEO stated, “The financial results of the third quarter reflect the steady growth pattern of the Company. As we started leveraging our portfolio I am confident that we will continue growing our revenue and earnings.”

      “Market conditions are still working in our favor as many banks are reluctant to lend even to qualified borrowers”. Added Mr. Ran.

 

      The Company recently announced a stock repurchase program as management believes that the Company’s stock price is undervalued at the marketplace.

 

Manhattan Bridge Capital, Inc., provides short term, secured, non-banking, commercial loans to small businesses. We operate the web site: http://www.manhattanbridgecapital.com

Forward-looking statements in this release are made pursuant to the “safe harbor'' provisions of the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein, including those related to the Company's future performance are based upon the Company's historical performance and on current plans, estimates and expectations, which are subject to various risks and uncertainties, and other factors that could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements, including, but not limited to, the impact of competition, product demand and pricing, and those described in the reports and statements filed by the Company with the Securities and Exchange Commission, including, among others, those described in the Company's Annual Report on Form 10-K.

 # #


       
         MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

Assets

September 30, 2009
    (Unaudited)

December 31, 2008
(Audited)

Current assets:

   

 

Cash and cash equivalents          

$ 239,874

$ 884,296

Investment in marketable securities

361,176

499,207

        Total cash and cash equivalents and investment in marketable securities at fair value

 

601,050

 

1,383,503

 

 

 

Short term loans

6,964,627

5,362,060

         Interest receivable on short term loans

119,197

79,674

Due from purchaser

---

23,881

Other current assets

28,443

8,813

       Total current assets

7,713,317

6,857,931

 

 

 

        Long term loans

---

200,000

Property and equipment, net

6,216

9,421

Security deposit

17,515

17,515

Investment in privately held company, at cost

100,000

100,000

                
            Total assets

 

$ 7,837,048

 

$ 7,184,867

Liabilities and Shareholders’ Equity


Current liabilities:

 

 

Line of Credit

$ 156,582

$ ---

Accounts payable and accrued expenses

97,103

130,375

Deferred origination fees

99,636

53,106

Income taxes payable

92,182

11,104

        Total liabilities, all current

445,503

194,585

             
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 3,325,760 outstanding

 

3,405

 

3,405

Additional paid-in capital

9,461,141

9,399,861

Treasury stock, at cost- 79,430 shares

(239,944)

(239,944)

Accumulated other comprehensive income (loss)

80,692

(30,088)

Accumulated deficit

(1,913,749)

(2,142,952)

           Total shareholders’ equity

7,391,545

6,990,282

             
 Total liabilities and shareholders’ equity

 

$ 7,837,048

 

$ 7,184,867


 

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

 

Three Months
Ended
September 30,

Nine Months
Ended
September 30,

 

2009

2008

2009

2008

 

Interest income from short term loans

 

$ 235,249

 

$ 177,650

 

 $ 632,864

 

 $ 489,035

Origination fees

                53,359

              22,438

137,304

55,071

Subscription revenues, net

----

38

----

          138

     Total Revenue

             288,608

           200,126

            770,168

           544,244

 

    

    

 

 

Operating costs and expenses:

 

 

 

 

Web development expenses

               ----

12,336

----

37,008

General and administrative expenses

   
             148,164

   
143,520

   
453,267

   
452,702

     Total operating costs and expenses

 

             148,164

 

155,856

                  
            453,267

                  
           489,710

Income from operations

                    140,444

              44,270

            316,901

              54,534

 

 

 

 

 

Interest and dividend income

3,581

17,885

19,419

59,007

Realized (loss) gain on marketable securities

---

----

(5,940)

18,122

Realized (loss) gain on marketable securities that were previously marked down

(8,004)

                     ----

10,654

                     ----

Other income

                     ----

                     ----

                     ----

              39,000

     Total other (expenses) income

               (4,423)

              17,885

              24,133

            116,129

Income from continuing operations before income tax expense

                    
              136,021

62,155

           341,034

           170,663

Income tax expense

(52,428)

(13,346)

(111,831)

(2,857)

Income from continuing operations

               83,593

48,809

229,203

167,806

Discontinued Operations:

 

 

 

 

Gain on the sale of the Directories business (net of tax effect of 0 in 2008)

                     ----

                     ----

                     ----

              72,917

Income from discontinued operations

                     ----

                     ----

                     ----

              72,917

Net Income

    $         83,593

    $       48,809

    $     229,203

    $     240,723

 

 

 

 

 

Basic net income per common share outstanding:

 

 

 

 

Continuing operations

     $       0.03

     $       0.02

     $       0.07

     $       0.05

Discontinued operations

               ----

                

               ----

               0.02

Net income per common share-Basic

     $       0.03

     $       0.02

    $        0.07

    $        0.07

Diluted net income per common share outstanding:

 

 

 

 

Continuing operations

     $       0.03

     $       0.02

     $       0.07

     $       0.05

Discontinued operations

               ----

                

               ----

               0.02

Net income per common share- Diluted

     $       0.03

     $       0.02

    $        0.07

    $        0.07

Weighted average number of common shares outstanding

 

 

 

 

--Basic

    3,325,760

     3,236,460

    3,325,760

    3,236,460

--Diluted

    3,333,628

     3,237,953

    3,327,364

   3,238,121


 

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

            Nine Months Ended September 30,

 

 

 2009

 

 2008

Cash flows from operating activities:

 

 

 

 

  Net income

 

    $     229,203

 

    $     240,723

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

 

 

 

 

  Gain on the sale of  discontinued operations

 

----

 

(72,917)

  Depreciation and amortization

 

3,205

 

40,624

  Non cash compensation expense

 

61,280

 

79,032

  Realized loss (gain) on sale of marketable securities

 

5,940

 

(18,122)

  Realized gain on marketable securities that were previously marked down

 

(10,654)

 

----

  Changes in operating assets and liabilities:

 

 

 

 

       Interest receivable on short term loans

 

(39,523)

 

(23,508)

       Due from purchaser

 

23,881

 

35,000

       Other current and non current assets

 

(19,630)

 

(7,435)

       Accounts payable and accrued expenses

 

(33,272)

 

(38,670)

       Deferred origination fees

 

46,530

 

58,061

       Income taxes payable

 

81,078

 

9,104

              Net cash provided by operating activities

 

348,038

 

301,892

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

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

 

253,525

 

1,844,070

   Investment in marketable securities, auction rate securities and annuity contract

 

----

 

(1,175,000)

   Issuance of short term and long term loans

 

(4,988,030)

 

(4,543,977)

   Collection received from short term loans

 

3,585,463

 

3,166,897

   Cash received on sale of Jewish Directories

 

----

 

97,222

             Net cash used in investing activities

 

(1,149,042)

 

(610,788)

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

    Use of line of credit

 

156,582

 

----

              Net cash provided by financing activities

 

156,582

 

----

 

 

 

 

 

Net decrease in cash

 

         (644,422)

 

         (308,896)

Cash and cash equivalents, beginning of the year

 

884,296

 

621,724

Cash and cash equivalents, end of period

 

    $     239,874

 

    $     312,828

 

 

 

 

 

Supplemental Cash Flow Information:

 

 

 

 

Taxes paid during the period

 

$ 30,753

 

$11,465

Interest paid during the period

 

$ 746

 

$4,421