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
inbar@manhattanbridgecapital.com
(212) 489-6800
SOURCE: Manhattan Bridge Capital, Inc.

 

Manhattan Bridge Capital, Inc. Reports Fiscal Year 2009

 37% Increase in Revenue and Profitable Operations

 

NEW YORK, N.Y. March 17, 2010 / GLOBE Newswire / -- Manhattan Bridge Capital, Inc. (NASDAQ: LOAN)

Manhattan Bridge Capital, Inc., announced today that total revenue for the year ended December 31, 2009 was $1,039,000 from interest and fees on loans compared to $758,000 for the year ended December 31, 2008, an increase of $281,000 or 37.1%. The increase in revenue represents an increase in lending operations.

General and administrative expenses for the year ended December 31, 2009 were $673,000 compared to $682,000 for the year ended December 31, 2008, a decrease of $9,000 or 1.3%. This decrease in general and administrative expenses is mainly due to a decrease in stock based compensation expenses of approximately $65,000, a decrease in professional fees of approximately $36,000 mainly due to a decrease in legal expenses and accounting expenses and a decrease in investor relation expenses of approximately $10,000, offset by an increase in payroll expenses of approximately $106,000.

Income from operations for the year ended December 31, 2009 was approximately $366,000 compared to approximately $1,000 for the year ended December 31, 2008, an increase of $365,000. This increase in income from operations resulted mainly from increase in revenue from short term secured commercial loans of $281,000 and amortization of nextyellow.com capitalized web development costs of $74,000 due to the fact that as of December 31, 2008 the Company decided that there is no value to the web development costs and therefore wrote off the remaining amortized balance.

Net income for the year ended December 31, 2009 was $0.07 per basic and diluted share (based on 3.3 million shares), or $236,000, versus net loss of ($0.16) per basic and diluted share (based on 3.2 million shares) or ($520,000) for the year ended December 31, 2008. This increase in net income was mainly due to an increase in revenue, offset by increase in income tax expense and other losses for the year ended December 31, 2008.

As of December 31, 2009 total shareholders' equity was $7,455,000 compared to $6,990,000 as of December 31, 2008, an increase of $465,000.

 

Assaf Ran, Chairman of the Board and CEO stated, “The Company has stabilized its position as a leading player in its sector of the New York City market place as a short term small business commercial lender. As we found the niche we are comfortable in, we have developed a broad platform of customer base and deal flow. As always in addition to good and liquid collateral we focus first on good individuals. That model has proven to work for us and we experienced no defaults or problematic situations.”

“Although we have managed to arrange for lines of credit and joint venture loans with third parties, our success in that regard is limited and increasing leverage is still our most important challenge,” 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 SHEETS
DECEMBER 31, 2009 and 2008

 

Assets

 2009

 2008

Current assets:

   

 

Cash and cash equivalents

$ 707,449

$ 884,296

Investment in marketable securities

404,268

499,207

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

 

1,111,717

                   
                     1,383,503

 

 

 

Short term loans

6,476,621

5,362,060

         Interest receivable on short term loans

60,207

79,674

Due from purchaser

---

23,881

Other current assets

26,568

8,813

            Total current assets

7,675,113

6,857,931

 

 

 

         Long term loans

---

200,000

Property and equipment, net

5,458

9,421

Security deposit

17,515

17,515

Investment in privately held company, at cost

100,000

100,000

                
            Total assets

 

$ 7,798,086

 

$ 7,184,867

Liabilities and Shareholders’ Equity


Current liabilities:

 

 

Accounts payable and accrued expenses

$ 77,768

$ 130,375

Deferred origination fees

102,751

53,106

Income taxes payable

162,182

11,104

        Total liabilities, all current

342,701

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; 3,324,459 and 3,325,760 outstanding at December 31, 2009 and 2008, respectively

 

3,405

 

                            3,405

Additional paid-in capital

9,476,762

9,399,861

Treasury stock, at cost- 80,731 and 79,430 common shares at December 31, 2009 and 2008, respectively

 

(241,400)

 

(239,944)

Accumulated other comprehensive income (loss)

123,823

(30,088)

Accumulated deficit

(1,907,205)

(2,142,952)

          Total shareholders’ equity

7,455,385

6,990,282

            
 Total liabilities and shareholders’ equity

 

$ 7,798,086

 

$ 7,184,867

 

 

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
   CONSOLIDATED STATEMENTS OF OPERATIONS
    FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2008

 

               2009

 

          2008

Interest income from short and long term loans

$ 839,802

 

$ 684,012

Origination fees

199,023

 

73,517

Subscription revenues, net

---

 

137

Total Revenue

1,038,825

 

757,666

Operating costs and expenses:

 

 

 

Web development expenses

---

 

74,015

General and administrative expenses

673,221

 

682,455

     Total operating costs and expenses

673,221

 

756,470

 

 

 

 

Income from operations

365,604

 

1,196

 

 

 

 

Interest and dividend income

24,210

 

73,976

Realized net (loss) gain on marketable securities

(5,940)

 

18,122

Realized gain on marketable securities that were previously marked down

 

10,653

 

 

---

Write-off of investment in marketable securities

---

 

(92,619)

Other than temporary decline in the market value of marketable securities

 

---

 

 

(627,777)

Other income

15,000

 

39,000

             Total other income (loss)

43,923

 

(589,298)

Income (loss) from continuing operations before income tax expense

                                 409,527                             

 

                   
(588,102)                             

Income tax expense

(173,780)

 

(4,674)

 

Income (loss) from continuing operations

           
 235,747

 

             (592,776)

 

 

 

 

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 (loss)

    $   235,747

 

    $  (519,859)

 

 

 

 

Basic net income (loss) per common share

common share
outstanding:

 

 

 

Continuing operations

$0.07

 

$(0.18)

Discontinued operations

---

 

0.02

Net income (loss) per common share-Basic

$0.07

 

$(0.16)

Diluted net income (loss) per common share outstanding:

 

 

 

Continuing operations

$0.07

 

$(0.18)

Discontinued operations

---

 

0.02

Net income (loss) per common share- Diluted

$0.07

 

$(0.16)

Weighted average number of common shares outstanding

 

 

 

--Basic

3,325,566

 

3,247,409

--Diluted

3,330,315

 

3,247,409

                                  

 

 

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2008

 

Common Stock

Additional Paid-in

   Capital

Treasury Stock

 Accumulated Other Comprehensive Income (Loss)

 Accumulated Deficit

Totals

 

 

 

 

 

 

 

 

Shares

Amount

 

Shares

Cost

 

 

 

Balance, January 1, 2008

3,305,190

$3,305

$9,180,235

68,730

 $(231,113)

 $(441,272)

 $(1,623,093)

$6, 888,062

Issuance of common stock from exercise of options

100,000

100

77,900

 

 

 

 

78,000

Non cash compensation

 

 

141,726

 

 

 

 

141,726

Treasury Shares

 

 

 

10,700

(8,831)

 

 

(8,831)

Unrealized loss on preferred stocks and other marketable securities

 

 

 

 

 

 

(216,593)

 

 

(216,593)

Other than temporary decline in the market value of other marketable securities

 

 

 

 

 

 

 

627,777

 

 

 

627,777

Net loss for the year ended December 31, 2008

 

 

 

 

 

 

 

(519,859)

 

(519,859)

Total comprehensive loss

 

 

 

 

 

 

 

(108,675)

Balance, December 31, 2008

3,405,190

3,405

9,399,861

79,430

 (239,944)

(30,088)

 (2,142,952)

6,990,282

Non cash compensation

 

 

76,901

 

 

 

 

76,901

Treasury Shares

 

 

 

1,301

(1,456)

 

 

(1,456)

Unrealized gain on preferred stocks and other marketable securities

 

 

 

 

 

 

153,911

 

 

153,911

Net income  for the year ended December 31, 2009

 

 

 

 

 

 

 

235,747

 

235,747

Total comprehensive income

 

 

 

 

 

 

 

 

389,658

Balance, December 31, 2009

3,405,190

$3,405

$9,476,762

80,731

$(241,400)

$123,823

$(1,907,205)

$7,455,385


     MANHATTAN BRIDGE CAPITAL, INC.  AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2008

 

2009

 

2008

Cash flows from operating activities:
   Net income (loss)

 

$ 235,747

 

 

$ (519,859)

   Adjustments to reconcile net income (loss) to net cash provided by operating activities -

 

 

 

      Gain on sale of Directories business

---

 

(72,917)

     Depreciation

3,963

 

4,840

     Amortization of web development costs

---

 

74,015

      Non cash compensation expense

76,901

 

141,726

      Realized gain on marketable securities that were previously marked down

 

(10,653)

 

 

---

      Write-off of investment in marketable securities

---

 

92,619

      Other than temporary decline in the market value of marketable securities

 

---

 

 

627,777

      Realized loss (gain) on sale of marketable securities, net

5,940

 

(18,122)

   Changes in operating assets and liabilities

 

 

 

       Interest receivable on short and long term commercial loans

19,467

 

(38,490)

       Other current and non current assets

(17,755)

 

8,270

       Accounts payable and accrued expenses

(52,607)

 

6,489

       Deferred origination fees

49,645

 

48,509

       Due from purchasers

23,881

 

35,000

       Income taxes payable

151,078

 

11,104

              Net cash provided by operating activities

485,607

 

400,961

 

 

 

 

Cash flows from investing activities:

 

 

 

       Proceeds from sale of marketable securities

253,563

 

---

       Redemption of insurance annuity contract

---

 

944,069

       Investment in auction rate securities

---

 

(1,175,000)

       Proceeds from sale of auction rate securities

---

 

1,175,000

      Short term commercial loans made

(7,204,229)

 

(5,339,756)

       Collections received from short term commercial loans

6,289,668

 

4,090,907

       Cash received on sale of  the Directories business

---

 

97,222

              Net cash used in investing activities

(660,998)

 

(207,558)

 

Cash flows from financing activities:

 

 

 

       Proceeds from exercise of options

---

 

78,000

       Purchase of treasury stock

(1,456)

 

(8,831)

             Net cash (used in) provided by financing activities

(1,456)

 

69,169

 

 

 

 

Net (decrease) increase in cash and cash equivalents

(176,847)

 

262,572

 

 

 

 

Cash and cash equivalents, beginning of year

884,296

 

621,724

 

 

 

 

Cash and cash equivalents, end of year

$ 707,449

 

$ 884,296

 

 

 

 

Supplemental Cash Flow Information:

 

 

 

Taxes paid during the year

$30,753

 

$11,599

Interest paid during the year

$1,234

 

$4,692

                                        
                The accompanying notes are an integral part of these consolidated financial statements.