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 Third Quarter Financial Results

         
          NEW YORK, N.Y. October 27, 2010 / GLOBE Newswire / -- Manhattan Bridge Capital, Inc. (NASDAQ: LOAN)
       Manhattan Bridge Capital, Inc. announced today that total revenues for the three month period ended September 30, 2010 were approximately $306,000 compared to approximately $289,000 for the three month period ended September 30, 2009, an increase of $17,000 or 5.9%. The increase in revenue represents an increase in lending operations. For the three month period ended September 30, 2010, $256,000 of our revenue represents interest income on the short term secured commercial loans that we offer to small businesses compared to $235,000 for the same period in 2009, and $51,000 represents origination fees on such loans compared to $54,000 for the same period in 2009.

      Net income for the three month period ended September 30, 2010 was $0.02 per basic and diluted share (based on 3.324 million shares and 3.380 million shares, respectively), or $56,854, versus net income of $0.03 per basic and diluted share (based on 3.326 million shares and 3.334 million shares, respectively) or $83,593 for the three month period ended September 30, 2009. This decrease in net income was mainly due to an increase in operating costs and expenses primarily due to increase in payroll expenses and an increase in income tax expense, offset by an increase in revenues.

      As of September 30, 2010 total shareholders' equity was $7,771,000 compared to $7,701,000 as of June 30, 2010 and $7,455,000 as of December 31, 2009.

       Total revenues for the nine month period ended September 30, 2010 were approximately $913,000 compared to approximately $770,000 for the nine month period ended September 30, 2009, an increase of $143,000, or 18.6%. The increase in revenue represents an increase in lending operations. Revenue of approximately $752,000 for the nine month period ended September 30, 2010, compared to approximately $633,000 for the same period in 2009, represents interest income on the short term secured commercial loans that we offer to small businesses, and $161,000 represents origination fees on such loans compared to $137,000 for the same period in 2009.
      Net income for the nine month period ended September 30, 2010 was $0.11 per basic and $0.10 per diluted share (based on 3.324 million shares and 3.372 million shares, respectively), or $352,387, versus net income of $0.07 per basic and diluted share (based on 3.326 million shares and 3.327 million shares, respectively) or $229,203 for the same period in 2009, an increase of approximately $123,000. 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.

    
       Assaf Ran, Chairman of the Board and CEO stated, “During the third quarter the company experienced an unusual rate of pay off’s (principal returns). While this is a supportive sign that our loan approval system is working fine, it caused a temporary slow down in our growth pace. We have increased our sales and marketing efforts but nevertheless compromised our strict underwriting standards.”

      “In addition the company is making preparations to relocate its headquarters outside of NYC to Great Neck, NY in order to reduce its tax liability.” added Mr. Ran.

 

Manhattan Bridge Capital, Inc.,offers short-term loans to real estate investors (also known as hard money) to fund their acquisition of properties located in New York Metro area.  Currently, our customers’ purchases are often from banks or distressed sellers.  Substantially all of our loans are secured by first mortgages on the acquired real estate.  In addition, the principals of our corporate borrowers personally guaranty the loans and, as additional collateral and protection, pledge the borrower’s stock.  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 SHEETS

Assets

September 30, 2010
    (Unaudited)

December 31, 2009
(Audited)

Current assets:

   

 

Cash and cash equivalents
    

$ 959,918

$ 707,449

Investment in marketable securities

---

404,268

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

 

959,918

 

1,111,717

 

 

 

Short term loans

7,066,200

6,476,621

        Interest receivable on short term loans

69,314

60,207

Other current assets

73,328

26,568

       Total current assets

8,168,760

7,675,113

 

 

 

Property and equipment, net

3,184

5,458

Security deposit

17,515

17,515

Investment in privately held company, at cost

100,000

100,000

                
            Total assets

 

$ 8,289,459

 

$ 7,798,086

Liabilities and Shareholders’ Equity


Current liabilities:

 

 

Lines of credit

$ 300,000

$ ---

Accounts payable and accrued expenses

32,310

77,768

Deferred origination fees

40,626

102,751

Income taxes payable

145,513

162,182

        Total current liabilities

518,449

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

9,563,823

9,476,762

Treasury stock, at cost- 80,731 shares

(241,400)

                      (241,400)

Accumulated other comprehensive income

---

123,823

Accumulated deficit

(1,554,818)

(1,907,205)

          Total shareholders’ equity

7,771,010

7,455,385

            
 Total liabilities and shareholders’ equity

 

$ 8,289,459

 

$ 7,798,086

 


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

 

Three Months
Ended
September 30,

Nine Months
Ended
September 30,

 

2010

2009

2010

2009

 

Interest income from short term loans

 

$ 255,869

 

$ 235,249

 

 $ 751,733

 

 $ 632,864

Origination fees

               50,593

                         53,359

160,932

137,304

     Total Revenue

             306,462

           288,608

           912,665

           770,168

 

   

   

 

 

Operating costs and expenses:

 

 

 

 

Interest expense on lines of credit used

         6,900

 

----

 

21,627

 

----

General and administrative expenses

   
             182,855

   
148,164

   
507,382

   
453,267

     Total operating costs and expenses

 

             189,755

 

148,164

                 
           529,009

                 
           453,267

Income from operations

            116,707

           140,444

           383,656

           316,901

 

 

 

 

 

Interest and dividend income

177

3,581

4,342

19,419

Realized loss on marketable securities

----

----

----

(5,940)

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

---

            (8,004)

151,419

10,654

    Total other income (expense)

                    177

            (4,423)

           155,761

             24,133

Income from operations before
 income tax expense

                           
            116,884

136,021

           539,417

           341,034

Income tax expense

(60,030)

(52,428)

(187,030)

(111,831)

Net Income

    $         56,854

    $       83,593

    $    352,387

    $     229,203

 

 

 

 

 

Basic and diluted net income per common share outstanding:

 

 

 

 

--Basic

    $     0.02

    $     0.03

           $ 0.11

    $     0.07

--Diluted

   $      0.02

   $      0.03

           $ 0.10

    $     0.07

 

 

 

 

 

Weighted average number of common shares outstanding

 

 

 

 

--Basic

    3,324,459

     3,325,760

   3,324,459

   3,325,760

--Diluted

    3,380,406

     3,333,628

   3,371,971

   3,327,364

 

 

 


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

            Nine Months Ended September 30,

 

 

 2010

 

 2009

Cash flows from operating activities:

 

 

 

 

  Net income

 

    $    352,387

 

    $    229,203

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

 

 

 

 

  Depreciation and amortization

 

2,274

 

3,205

  Non cash compensation expense

 

59,099

 

61,280

  Realized loss on sale of marketable securities

 

---

 

5,940

  Realized gain on marketable securities that were previously marked down

 

(151,419)

 

(10,654)

  Changes in operating assets and liabilities:

 

 

 

 

       Interest receivable on short term loans

 

(9,107)

 

(39,523)

       Due from purchaser

 

---

 

23,881

       Other current and non current assets

 

(46,760)

 

(19,630)

       Accounts payable and accrued expenses

 

(17,496)

 

(33,272)

       Deferred origination fees

 

(62,125)

 

46,530

       Income taxes payable

 

(16,669)

 

81,078

              Net cash provided by operating activities

 

110,184

 

348,038

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

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

 

431,864

 

253,525

   Issuance of short term and long term loans

 

(3,912,500)

 

(4,988,030)

   Collection received from short term loans

 

3,322,921

 

3,585,463

             Net cash used in investing activities

 

(157,715)

 

(1,149,042)

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

    Use of line of credit

 

300,000

 

156,582

              Net cash provided by financing activities

 

300,000

 

156,582

 

 

 

 

 

Net increase (decrease) in cash

 

          252,469

 

         (644,422)

Cash and cash equivalents, beginning of the year

 

707,449

 

884,296

Cash and cash equivalents, end of period

 

    $    959,918

 

    $    239,874

 

 

 

 

 

Supplemental Cash Flow Information:

 

 

 

 

Taxes paid during the period

 

$     203,669

 

$       30,753

Interest paid during the period

 

$       21,627       

 

$            746

Non-cash  investing and financing activities:

 

 

 

 

Forgiveness of debt

 

$       27,961

 

$            ----