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 Results for Fiscal Year 2013

 

          LONG ISLAND, N.Y. March 24, 2014 / GLOBE Newswire / -- Manhattan Bridge Capital, Inc. (NASDAQ: LOAN)
Manhattan Bridge Capital, Inc. announced today that net income for the year ended December 31, 2013 was $0.14 per basic share and per diluted share (based on 4.269 million shares and 4.290 million shares, respectively), or approximately $583,000, versus $0.09 per basic share and per diluted share (based on 4.320 million shares and 4.326 million shares, respectively), or approximately $389,000 for the year ended December 31, 2012. This increase is primarily attributable to an increase in revenue, offset by increases in interest expense and in income tax expense.

Total revenue for the year ended December 31, 2013 was approximately $2,260,000 compared to approximately $1,816,000 for the year ended December 31, 2012, an increase of $444,000 or 24.4%. The increase in revenue represents an increase in lending operations. In 2013, approximately $1,858,000 of the Company’s revenue represents interest income on secured, commercial loans that the Company offers to small businesses compared to approximately $1,476,000 in 2012, and approximately $402,000 represents origination fees on such loans compared to approximately $340,000 in 2012.

Total operating costs and expenses for the year ended December 31, 2013 were approximately $1,282,000 compared to approximately $1,151,000 for the year ended December 31, 2012, an increase of $131,000 or 11.4%. This increase in operating costs and expenses is primarily attributable to an increase in interest and amortization of debt service costs of approximately $162,000, which is primarily attributable to the Company’s use of a line of credit in order to increase its ability to make loans.

As of December 31, 2013 total shareholders' equity was approximately $8,893,000 compared to approximately $8,479,000 as of December 31, 2012, an increase of $414,000.

Assaf Ran, Chairman of the Board and CEO, stated, “I’m pleased to report one more year of solid increase in revenue and net earning, simultaneously with no defaults. As the company’s line of credit from Sterling National Bank was increased recently, I’m confident that we’ll continue to grow in 2014 as well.”

“During 2013 the company revived its cash dividend program, and later on doubled the dividend. As the company grows to the next level, it continues to explore the possibility of becoming a REIT, an entity which would not be subject to federal or state income taxes, although it does not currently meet all requirements for adopting REIT status, ” added Mr. Ran.
  

Manhattan Bridge Capital, Inc., offers short-term, secured, non-banking 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. The loans are principally secured by collateral consisting of real estate and, generally, accompanied by personal guarantees from the principals of the 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, 2013 and 2012

 

Assets

2013

2012

Current assets:

   

   

Cash and cash equivalents   

$    1,021,023

$      240,693

Short term loans receivable

10,697,950

11,022,866

         Interest receivable on loans

171,483

160,342

Other current assets

18,540

18,903

            Total current assets

11,908,996

11,442,804

 

 

 

Investment in real estate

146,821

146,821

Long term loans receivable

3,997,000

2,601,500

Security deposit

6,637

6,491

Investment in privately held company

65,000

100,000

Deferred financing costs

---

41,735

                
            Total assets

 

$  16,124,454

 

$ 14,339,351

Liabilities and Stockholders’ Equity


Current liabilities:

 

 

Short term loans

$   1,319,465

$   1,399,465

Line of credit

5,350,000

3,500,000

Senior secured notes

---

500,000

Accounts payable and accrued expenses

57,066

70,403

Deferred origination fees

132,017

122,242

Income taxes payable

373,219

268,256

                 Total liabilities, all current

7,231,767

5,860,366

             
Commitments and contingencies

 

 

Stockholders’ equity:

 

 

Preferred shares - $.01 par value; 5,000,000 shares authorized; no shares issued

 

---

 

---

Common shares - $.001 par value; 25,000,000 authorized; 4,433,190 and 4,405,190 issued; 4,256,190 and 4,298,059 outstanding

 

  4,433

 

  4,405

Additional paid-in capital

9,745,249

9,687,159

Treasury stock, at cost – 177,000 and 107,131 shares

(369,335)

(269,972)

Accumulated deficit

(487,660)

(942,607)

           Total stockholders’ equity

8,892,687

8,478,985

             
 Total liabilities and stockholders’ equity

 

$  16,124,454

 

$ 14,339,351

 


 

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED December 31, 2013 and 2012

 

               2013

 

               2012

Interest income from loans

$ 1,858,033

 

$ 1,475,800

Origination fees

401,514

 

339,767

Total Revenue

2,259,547

 

1,815,567

Operating costs and expenses:

 

 

 

Interest and amortization of debt service costs

442,661

 

280,654

Referral fees

1,679

 

6,133

General and administrative expenses

837,788

 

864,398

     Total operating costs and expenses

1,282,128

 

1,151,185

 

 

 

 

Income from operations

977,419

 

664,382

 

 

 

 

Other income

27,548

 

27,548

Loss on write-down of investment in privately held company

 

(35,000)

 

 

---

     Total other (loss) income, net

(7,452)

 

27,548

 

 

 

 

Income before income tax expense

969,967

 

691,930

Income tax expense

    (387,000)

 

    (303,320)

Net income

    $   582,967

 

    $   388,610

 

 

 

 

Basic and diluted net income per common share outstanding:

 

 

 

--Basic

$0.14

 

$0.09

--Diluted

$0.14

 

$0.09

Weighted average number of common shares outstanding

 

 

 

--Basic

4,269,169

 

4,320,050

--Diluted

4,289,818

 

4,326,329

                                   


MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
FOR THE YEARS ENDED December 31, 2013 and 2012

 

Common Stock

Additional Paid-in

Capital

Treasury Stock

Accumulated Deficit

Totals

 

 

 

 

 

 

 

Shares

Amount

 

Shares

Cost

 

 

Balance, January 1, 2012

4,405,190

$4,405

$9,656,280

80,731

$(241,400)

$(1,331,217)

$8,088,068

Non cash compensation

 

 

30,879

 

 

 

30,879

Purchase of treasury shares

 

 

 

26,400

(28,572)

 

(28,572)

Net income  for the year ended December 31, 2012

 

 

 

 

 

 

          388,610

 

388,610

Balance, December 31, 2012

4,405,190

4,405

9,687,159

107,131

(269,972)

(942,607)

8,478,985

Non cash compensation

 

 

35,578

 

 

 

35,578

Exercise of stock options

28,000

28

22,512

 

 

 

22,540

Purchase of treasury shares

 

 

 

69,869

(99,363)

 

(99,363)

Dividends paid

 

 

 

 

 

(128,020)

(128,020)

Net income  for the year ended December 31, 2013

 

 

 

 

 

 

          582,967

 

582,967

Balance, December 31, 2013

4,433,190

$4,433

$9,745,249

177,000

$(369,335)

$(487,660)

$8,892,687


 

MANHATTAN BRIDGE CAPITAL, INC.  AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED December 31, 2013 and 2012

 

2013

 

2012

Cash flows from operating activities:
   Net income

 

$    582,967

 

 

$    388,610

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

 

 

 

      Amortization of deferred financing costs

41,735

 

47,078

      Depreciation

---

 

588

      Non cash compensation expense

35,578

 

30,879

Loss on write-down of investment in privately held company

  35,000

 

---

   Changes in operating assets and liabilities

 

 

 

       Interest receivable on loans

(11,141)

 

(50,437)

       Other current and non current assets

217

 

(2,582)

       Accounts payable and accrued expenses

(13,337)

 

10,331

       Deferred origination fees

9,775

 

9,462

       Income taxes payable

104,963

 

99,470

              Net cash provided by operating activities

785,757

 

533,399

 

 

 

 

Cash flows from investing activities:

 

 

 

Issuance of short term loans

(15,159,450)

 

(15,173,500)

Collections received from loans

  14,088,866

 

  10,963,486

              Net cash used in investing activities

(1,070,584)

 

(4,210,014)

 

Cash flows from financing activities:

 

 

 

       Proceeds from loans and line of credit, net

1,770,000

 

3,740,000

       Purchase of treasury shares

(99,363)

 

(28,572)

       Repayment of senior secured notes

(500,000)

 

---

       Proceeds from exercise of stock options

22,540

 

---

       Dividends paid ($0.01 per share)

(128,020)

 

---

       Deferred financing costs incurred

---

 

(16,025)

             Net cash provided by financing activities

1,065,157

 

3,695,403

 

 

 

 

Net increase in cash and cash equivalents

780,330

 

18,788

 

 

 

 

Cash and cash equivalents, beginning of year

240,693

 

221,905

 

 

 

 

Cash and cash equivalents, end of year

$ 1,021,023

 

$    240,693

 

 

 

 

Supplemental Cash Flow Information:

 

 

 

Taxes paid during the year

$    283,084

 

$    203,850

Interest paid during the year

$    400,925

 

$    234,835