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 Fiscal Year 2010

 Further Increase in Revenue and Earnings

 

          NEW YORK, N.Y. March 16, 2011 / GLOBE Newswire / -- Manhattan Bridge Capital, Inc. (NASDAQ: LOAN)
            Manhattan Bridge Capital, Inc. announced today that total revenues for the year ended December 31, 2010 were approximately $1,210,000 compared to approximately $1,039,000 for the year ended December 31, 2009, an increase of $171,000 or 16.4%. The increase in revenue represents an increase in lending operations. For the year ended December 31, 2010, $994,000 of our revenue represents interest income on the short term secured commercial loans that we offer to small businesses compared to $840,000 in 2009 and $216,000 represents origination fees on such loans compared to $199,000 in 2009.

Total operating costs and expenses for the year ended December 31, 2010 were $824,000 compared to $673,000 for the year ended December 31, 2009, an increase of $151,000 or 22.4%. This increase in operating costs and expenses is primarily attributable to an increase in payroll expenses of approximately $88,000, an increase in interest expense of approximately $29,000 and an increase of $20,000 in legal expenses.

          Net income for the year ended December 31, 2010 was $0.10 per basic share and $0.09 per diluted share (based on 3.324 million shares and 3.372 million shares, respectively), or $319,000, versus $0.07 per basic and diluted share (based on 3.326 million shares and 3.330 million shares, respectively) or $236,000 for the year ended December 31, 2009. This increase is primarily attributable to an increase in revenue and other income, offset by an increase in operating costs and expenses and an increase in income tax expense.

As of December 31, 2010 total shareholders' equity was $7,763,000 compared to $7,455,000 as of December 31, 2009, an increase of $308,000.

Assaf Ran, Chairman of the Board and CEO stated, “I am pleased with our achievements for the year 2010, although we experienced a temporary slow down in the forth quarter due to a significant amount of payoffs. These proceeds were redeployed by the end of the quarter and the beginning of the first quarter of 2011, and therefore the Company is back on a growth track.”

“We have recently made some more achievements in regards to leveraging and structuring more joint ventures,” added Mr. Ran.

  
Manhattan Bridge Capital, Inc., offers short-term loans to real estate investors (also known as hard money) to fund their acquisition and construction of properties located in the New York Metropolitan 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
DECEMBER 31, 2010 and 2009

 

Assets

 2010

 2009

Current assets:

   

 

Cash and cash equivalents   

$ 386,023

$ 707,449

Investment in marketable securities

---

404,268

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

 

386,023

 

1,111,717

 

 

 

Short term loans

8,156,293

6,476,621

         Interest receivable on short term loans

91,593

60,207

Other current assets

13,427

26,568

            Total current assets

8,647,336

7,675,113

 

 

 

Property and equipment, net

2,425

5,458

Security deposit

17,515

17,515

Investment in privately held company, at cost

100,000

100,000

Deferred financing costs

109,183

---

                
            Total assets

 

$ 8,876,459

 

$ 7,798,086

Liabilities and Shareholders’ Equity


Current liabilities:

 

 

Line of credit

$ 300,000

$ ---

Accounts payable and accrued expenses

56,405

77,768

Deferred origination fees

76,428

102,751

Income taxes payable

180,513

162,182

        Total current liabilities

613,346

342,701

        Long term liabilities:

 

 

         Senior secured notes

500,000

---

                 Total liabilities

1,113,346

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; 3,324,459 outstanding at December 31, 2010 and 2009

 

3,405

 

3,405

Additional paid-in capital

9,588,849

9,476,762

Treasury stock, at cost- 80,731 common shares at December 31, 2010 and 2009

 

(241,400)

 

(241,400)

Accumulated other comprehensive income

---

123,823

Accumulated deficit

(1,587,741)

(1,907,205)

           Total shareholders’ equity

7,763,113

7,455,385

             
 Total liabilities and shareholders’ equity

 

$ 8,876,459

 

$ 7,798,086

 

 

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
   CONSOLIDATED STATEMENTS OF OPERATIONS
    FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009

 

               2010

 

          2009

Interest income from short term loans

$ 993,601

 

$ 839,802

Origination fees

216,058

 

199,023

Total Revenue

1,209,659

 

1,038,825

Operating costs and expenses:

 

 

 

Interest expense on lines of credit used

28,527

 

---

Referral fees

11,981

 

---

General and administrative expenses

783,231

 

673,221

     Total operating costs and expenses

823,739

 

673,221

 

 

 

 

Income from operations

385,920

 

365,604

 

 

 

 

Interest and dividend income

4,972

 

24,210

Realized net loss on marketable securities

---

 

(5,940)

Realized gain on marketable securities that were previously marked down

 

151,419

 

 

10,653

Other income

---

 

15,000

             Total other income

156,391

 

43,923

Income from operations before income tax expense

                                 542,311                           

 

                                 409,527                              

Income tax expense

(222,847)

 

(173,780)

Net income

    $   319,464

 

    $   235,747

 

 

 

 

Basic and diluted net income per common share outstanding:

 

 

 

--Basic

$0.10

 

$0.07

--Diluted

$0.09

 

$0.07

Weighted average number of common shares outstanding

 

 

 

--Basic

3,324,459

 

3,325,566

--Diluted

3,372,289

 

3,330,315

                                  

 

 

 

 

 

 

 

 

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009

 

 Common Stock

           Additional         
Paid-in
 Capital

     Treasury Stock

 Accumulated Other Comprehensive Income (Loss)

 Accumulated Deficit

Totals

 

 

 

 

 

 

 

 

Shares

Amount

 

Shares

Cost

 

 

 

Balance, January 1, 2009

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

Non cash compensation

 

 

72,443

 

 

 

 

72,443

Warrants granted

 

 

11,683

 

 

 

 

11,683

Forgiveness of debt

 

 

27,961

 

 

 

 

27,961

Effect of sale of remaining marketable securities

 

 

 

 

 

(123,823)

 

(123,823)

Net income  for the year ended December 31, 2010

 

 

 

 

 

 

 

319,464

 

319,464

Total comprehensive income

 

 

 

 

 

 

 

 

195,641

Balance, December 31, 2010

3,405,190

$3,405

$9,588,849

80,731

$(241,400)

$----

$(1,587,741)

$7,763,113


     MANHATTAN BRIDGE CAPITAL, INC.  AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009

 

2010

 

2009

Cash flows from operating activities:
   Net income

 

$ 319,464

 

 

$ 235,747

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

 

 

 

      Depreciation

3,033

 

3,963

      Non cash compensation expense

72,443

 

76,901

      Realized gain on marketable securities that were previously marked down

 

(151,419)

 

 

(10,653)

      Realized loss on sale of marketable securities, net

---

 

5,940

   Changes in operating assets and liabilities

 

 

 

       Interest receivable on short term commercial loans

(31,386)

 

19,467

       Other current assets

13,141

 

(17,755)

       Accounts payable and accrued expenses

6,598

 

(52,607)

       Deferred origination fees

(26,323)

 

49,645

       Due from purchasers

---

 

23,881

       Income taxes payable

18,331

 

151,078

              Net cash provided by operating activities

223,882

 

485,607

 

 

 

 

Cash flows from investing activities:

 

 

 

       Proceeds from sale of marketable securities

431,864

 

253,563

      Short term commercial loans made

(6,141,593)

 

(7,204,229)

      Collections received from short term commercial loans

4,461,921

 

6,289,668

              Net cash used in investing activities

(1,247,808)

 

(660,998)

 

Cash flows from financing activities:

 

 

 

       Purchase of treasury stock

---

 

(1,456)

       Credit line used, net

300,000

 

---

       Proceeds from issuance of senior secured notes

500,000

 

---

       Deferred financing costs on senior secured notes

(97,500)

 

---

             Net cash provided by (used in) financing activities

702,500

 

(1,456)

 

 

 

 

Net decrease in cash and cash equivalents

(321,426)

 

(176,847)

 

 

 

 

Cash and cash equivalents, beginning of year

707,449

 

884,296

 

 

 

 

Cash and cash equivalents, end of year

$ 386,023

 

$ 707,449

 

 

 

 

Supplemental Cash Flow Information:

 

 

 

Taxes paid during the year

$203,669

 

$30,753

Interest paid during the year

$28,527

 

$1,234

 

Non-cash  investing and financing activities:

 

 

 

Forgiveness of debt by related party

$27,961

 

---

Warrants issued in connection with issuance of senior secured notes

$11,683

 

---