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 Fiscal Year 2011 Increase in Revenue

NEW YORK, N.Y. March 21, 2012 / GLOBE Newswire / -- Manhattan Bridge Capital, Inc. (NASDAQ: LOAN)
Manhattan Bridge Capital, Inc. announced today that total revenue for the year ended December 31, 2011 was $1,400,000 compared to $1,210,000 for the year ended December 31, 2010, an increase of $190,000 or 15.7%. The increase in revenue represents an increase in lending operations. In 2011, $1,142,000 of the Company’s revenue represents interest income on secured, commercial loans that the Company offers to small businesses compared to $994,000 in 2010, and $259,000 represents origination fees on such loans compared to $216,000 in 2010.

Total operating costs and expenses for the year ended December 31, 2011 were $1,031,000 compared to $824,000 for the year ended December 31, 2010, an increase of $207,000 or 25.1%. This increase in operating costs and expenses is primarily attributable to an increase in interest and amortization of debt service costs of approximately $128,000, and to net increases in payroll expenses of approximately $54,000 primarily resulting from the restoration of our CEO’s salary in June 2010 and an increase in legal fees of approximately $22,000, offset by the decrease in office rent of approximately $20,000.

Net income for the year ended December 31, 2011 was $0.07 per basic share and per diluted share (based on 3.634 million shares and 3.646 million shares, respectively), or $257,000, versus $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 for the year ended December 31, 2010. This decrease is primarily attributable to an increase in operating costs and expenses and a decrease in other income, offset by an increase in revenue and a decrease in income tax expense.

As of December 31, 2011 total shareholders' equity was $8,088,000 compared to $7,763,000 as of December 31, 2010, an increase of $325,000.

Assaf Ran, Chairman of the Board and CEO stated, "During 2011, the Company maintained its clean track record of having no defaults. While continually growing our portfolio and revenues, we have taken a number of measures in the second half of 2011 in order to reduce our operating costs and expenses, such as moving our headquarter outside of New York City, thus lowering our rent and local taxes, and exchanging my options for long-term restricted stock. These measures will have more of an impact on 2012 results."

“As we continue to grow, our key challenge is to arrange a significant line of credit from a conventional commercial bank. We are focused on achieving this goal,” 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, 2011 and 2010

 

Assets

 2011

 2010

Current assets:

   

   

Cash and cash equivalents   

$      221,905

$     386,023

Short term loans receivable

6,916,090

8,156,293

         Interest receivable on loans

109,905

91,593

Other current assets

16,463

13,427

            Total current assets

7,264,363

8,647,336

 

 

 

Investment in real estate

146,821

---

Long term loans receivable

2,498,262

---

Property and equipment, net

588

2,425

Security deposit

6,349

17,515

Investment in privately held company, at cost

100,000

100,000

Deferred financing costs

72,788

109,183

                
            Total assets

 

$ 10,089,171

 

$ 8,876,459

Liabilities and Shareholders’ Equity


Current liabilities:

 

 

Short term loans and line of credit

$   1,159,465

$   300,000

Accounts payable and accrued expenses

60,072

56,405

Deferred origination fees

112,780

76,428

Income taxes payable

168,786

180,513

       Total current liabilities

1,501,103

613,346

Long term liabilities:

 

 

Senior secured notes

500,000

500,000

                 Total liabilities

2,001,103

1,113,346

             
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; 4,405,190 and 3,405,190 issued and 4,324,459 and 3,324,459 outstanding

 

4,405

 

3,405

Additional paid-in capital

9,656,280

9,588,849

Treasury stock, at cost- 80,731 shares

(241,400)

(241,400)

Accumulated deficit

(1,331,217)

(1,587,741)

           Total shareholders’ equity

8,088,068

7,763,113

             
 Total liabilities and shareholders’ equity

 

$ 10,089,171

 

$ 8,876,459

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010

 

               2011

 

               2010

Interest income from loans

$ 1,141,531

 

$ 993,601

Origination fees

258,917

 

216,058

Total Revenue

1,400,448

 

1,209,659

Operating costs and expenses:

 

 

 

Interest and amortization of debt service costs

156,769

 

28,527

Referral fees

7,897

 

11,981

General and administrative expenses

866,705

 

783,231

     Total operating costs and expenses

1,031,371

 

823,739

 

 

 

 

Income from operations

369,077

 

385,920

 

 

 

 

Interest and dividend income

---

 

4,972

Realized gain on marketable securities that were previously marked down

 

---

 

 

151,419

Other income

79,329

 

---

             Total other income

79,329

 

156,391

Income from operations before income tax expense

                                 448,406                           

 

                                 542,311                           

Income tax expense

(191,882)

 

(222,847)

Net income

    $   256,524

 

    $   319,464

 

 

 

 

Basic and diluted net income per common share outstanding:

 

 

 

--Basic

$0.07

 

$0.10

--Diluted

$0.07

 

$0.09

Weighted average number of common shares outstanding

 

 

 

--Basic

3,634,048

 

3,324,459

--Diluted

3,646,074

 

3,372,289

                                  

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010

 

Common Stock

Additional Paid-in

   Capital

Treasury Stock

 Accumulated Other Comprehensive Income (Loss)

 Accumulated Deficit

Totals

 

 

 

 

 

 

 

 

Shares

Amount

 

Shares

Cost

 

 

 

Balance, January 1, 2010

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

Non cash compensation

 

 

68,431

 

 

 

 

68,431

Grant of restricted shares

1,000,000

1,000

(1,000)

 

 

 

 

 

Net income  for the year ended December 31, 2011

 

 

 

 

 

 

 

256,524

 

256,524

Balance, December 31, 2011

4,405,190

$4,405

$9,656,280

80,731

$(241,400)

$---

$(1,331,217)

$8,088,068

MANHATTAN BRIDGE CAPITAL, INC.  AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010

 

2011

 

2010

Cash flows from operating activities:
   Net income

 

$ 256,524

 

 

$ 319,464

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

 

 

 

      Amortization of deferred financing costs

36,395

 

---

     Depreciation

1,837

 

3,033

      Non cash compensation expense

68,431

 

72,443

      Realized gain on marketable securities that were previously marked down

 

---

 

 

(151,419)

   Changes in operating assets and liabilities

 

 

 

       Interest receivable on loans

(18,312)

 

(31,386)

       Other current and non current assets

8,130

 

13,141

       Accounts payable and accrued expenses

3,667

 

6,598

       Deferred origination fees

36,352

 

(26,323)

       Income taxes payable

(11,727)

 

18,331

              Net cash provided by operating activities

381,297

 

223,882

 

 

 

 

Cash flows from investing activities:

 

 

 

Proceeds from sale of marketable securities

---

 

431,864

Investment in real estate (net of proceeds of $528,179  from partial exercises of options)

(146,821)

 

---

Issuance of short term loans

(8,512,537)

 

(6,141,593)

Collections received from loans

7,254,478

 

4,461,921

              Net cash used in investing activities

(1,404,880)

 

(1,247,808)

 

Cash flows from financing activities:

 

 

 

       Proceeds from loans and line of credit, net

859,465

 

300,000

       Proceeds from issuance of senior secured notes

---

 

500,000

       Deferred financing costs on senior secured notes

---

 

(97,500)

             Net cash provided by financing activities

859,465

 

702,500

 

 

 

 

Net decrease in cash and cash equivalents

(164,118)

 

(321,426)

 

 

 

 

Cash and cash equivalents, beginning of year

386,023

 

707,449

 

 

 

 

Cash and cash equivalents, end of year

$ 221,905

 

$ 386,023

 

 

 

 

Supplemental Cash Flow Information:

 

 

 

Taxes paid during the year

$203,727

 

$203,669

Interest paid during the year

$120,375

 

$28,527

 

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