Press Releases
Manhattan Bridge Capital, Inc. Reports Third Quarter Financial Results- Further Increased Revenue and Earnings
NEW YORK, N.Y. November 2, 2009 / GLOBE Newswire / -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN),(the “Company”) announced today that total revenue for the three month period ended September 30, 2009 was approximately $289,000 compared to approximately $200,000 for the same period in 2008, an increase of $89,000 or 44.5%. For the three month period ended September 30, 2009, $235,000 of the Company's revenue represented interest income on the short term secured commercial loans that the Company offers to small businesses compared to $178,000 for the same period in 2008, and $54,000 represents origination fees on such loans compared to $22,000 for the same period in 2008.
Income from operations for the three month period ended September 30, 2009 was approximately $140,000 compared to approximately $44,000 for the same period ended September 30, 2008, an increase of $96,000. This increase in income from operations resulted mainly from increased revenue from short term secured commercial loans.
Net income for the three month period ended September 30, 2009 was $0.03 per basic and diluted share (based on 3.3 million shares), or $83,593, versus net income of $0.02 per basic and diluted share (based on 3.2 million shares) or $48,809 for the three month period ended September 30, 2008. This increase in net income was mainly due to an increase in income from operations, offset by an increase in income tax expense and a decrease in other income.
Total revenues for the nine month period ended September 30, 2009 were $770,000 versus total revenues of $544,000 for the nine month period ended September 30, 2008. For the nine month period ended September 30, 2009, $633,000 of the Company's revenue represented interest income on the short term secured commercial loans that the Company offers to small businesses compared to $489,000 for the same period in 2008, and $137,000 represents origination fees on such loans compared to $55,000 for the same period in 2008.
Net income for the nine month period ended September 30, 2009 was $0.07 per basic and diluted share (based on 3.3 million shares), or $229,203, versus net income of $0.07 per basic and diluted share (based on 3.2 million shares) or $240,723 for the same period in 2008, a decrease of approximately $12,000. This decrease in net income was mainly due to income from discontinued operations of approximately $73,000 that was recorded in the nine month period ended September 30, 2008, an increase in income tax expense of approximately $109,000 and a decrease in other income of approximately $92,000, offset by an increase in income from operations of $262,000.
As of September 30, 2009, the Company reported approximately $6,965,000 of outstanding short term loans and $601,000 of cash and cash equivalents and marketable securities.
As of September 30, 2009 total shareholders' equity was $7,392,000 compared to $6,990,000 as of December 31, 2008, an increase of $402,000.
Assaf Ran, Chairman of the Board and CEO stated, “The financial results of the third quarter reflect the steady growth pattern of the Company. As we started leveraging our portfolio I am confident that we will continue growing our revenue and earnings.”
“Market conditions are still working in our favor as many banks are reluctant to lend even to qualified borrowers”. Added Mr. Ran.
The Company recently announced a stock repurchase program as management believes that the Company’s stock price is undervalued at the marketplace.
Manhattan Bridge Capital, Inc., provides short term, secured, non-banking, commercial loans to small businesses. We operate the web site:http://www.manhattanbridgecapital.com
Forward-looking statements in this release are made pursuant to the “safe harbor'' provisions of the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein, including those related to the Company's future performance are based upon the Company's historical performance and on current plans, estimates and expectations, which are subject to various risks and uncertainties, and other factors that could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements, including, but not limited to, the impact of competition, product demand and pricing, and those described in the reports and statements filed by the Company with the Securities and Exchange Commission, including, among others, those described in the Company's Annual Report on Form 10-K.
# #
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
|
Assets |
September 30, 2009 |
December 31, 2008 |
|
Current assets: |
|
|
|
Cash and cash equivalents |
$239,874 |
$884,296 |
|
Investment in marketable securities |
361,176 |
499,207 |
|
Total cash and cash equivalents and investment in marketable securities at fair value |
601,050 |
1,383,503 |
|
|
|
|
|
Short term loans |
6,964,627 |
5,362,060 |
|
Interest receivable on short term loans |
119,197 |
79,674 |
|
Due from purchaser |
--- |
23,881 |
|
Other current assets |
28,443 |
8,813 |
|
Total current assets |
7,713,317 |
6,857,931 |
|
|
|
|
|
Long term loans |
--- |
200,000 |
|
Property and equipment, net |
6,216 |
9,421 |
|
Security deposit |
17,515 |
17,515 |
|
Investment in privately held company, at cost |
100,000 |
100,000 |
|
Total assets |
$7,837,048 |
$7,184,867 |
Liabilities and Shareholders’ Equity
Current liabilities: |
|
|
|
Line of Credit |
$ 156,582 |
$ --- |
|
Accounts payable and accrued expenses |
97,103 |
130,375 |
|
Deferred origination fees |
99,636 |
53,106 |
|
Income taxes payable |
92,182 |
11,104 |
|
Total liabilities, all current |
445,503 |
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 and 3,325,760 outstanding |
3,405 |
3,405 |
|
Additional paid-in capital |
9,461,141 |
9,399,861 |
|
Treasury stock, at cost- 79,430 shares |
(239,944) |
(239,944) |
|
Accumulated other comprehensive income (loss) |
80,692 |
(30,088) |
|
Accumulated deficit |
(1,913,749) |
(2,142,952) |
|
Total shareholders’ equity |
7,391,545 |
6,990,282 |
|
Total liabilities and shareholders’ equity |
$7,837,048 |
$7,184,867 |
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
|
Three Months |
Nine Months |
|||
|
|
2009 |
2008 |
2009 |
2008 |
|
Interest income from short term loans |
$235,249 |
$177,650 |
$632,864 |
$489,035 |
|
Origination fees |
53,359 |
22,438 |
137,304 |
55,071 |
|
Subscription revenues, net |
---- |
38 |
---- |
138 |
|
Total Revenue |
288,608 |
200,126 |
770,168 |
544,244 |
|
|
|
|
|
|
|
Operating costs and expenses: |
|
|
|
|
|
Web development expenses |
---- |
12,336 |
---- |
37,008 |
|
General and administrative expenses |
148,164 |
143,520 |
453,267 |
452,702 |
|
Total operating costs and expenses |
148,164 |
155,856 |
453,267 |
489,710 |
|
Income from operations |
140,444 |
44,270 |
316,901 |
54,534 |
|
|
|
|
|
|
|
Interest and dividend income |
3,581 |
17,885 |
19,419 |
59,007 |
|
Realized (loss) gain on marketable securities |
--- |
---- |
(5,940) |
18,122 |
|
Realized (loss) gain on marketable securities that were previously marked down |
(8,004) |
---- |
10,654 |
---- |
|
Other income |
---- |
---- |
---- |
39,000 |
|
Total other (expenses) income |
(4,423) |
17,885 |
24,133 |
116,129 |
|
Income from continuing operations before income tax expense |
|
62,155 |
341,034 |
170,663 |
|
Income tax expense |
(52,428) |
(13,346) |
(111,831) |
(2,857) |
|
Income from continuing operations |
83,593 |
48,809 |
229,203 |
167,806 |
|
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 |
$83,593 |
$48,809 |
$229,203 |
$240,723 |
|
|
|
|
|
|
|
Basic net income per common share outstanding: |
|
|
|
|
|
Continuing operations |
$0.03 |
$0.02 |
$0.07 |
$0.05 |
|
Discontinued operations |
---- |
|
---- |
0.02 |
|
Net income per common share-Basic |
$0.03 |
$0.02 |
$0.07 |
$0.07 |
|
Diluted net income per common share outstanding: |
|
|
|
|
|
Continuing operations |
$0.03 |
$0.02 |
$0.07 |
$0.05 |
|
Discontinued operations |
---- |
|
---- |
0.02 |
|
Net income per common share- Diluted |
$0.03 |
$0.02 |
$0.07 |
$0.07 |
|
Weighted average number of common shares outstanding |
|
|
|
|
|
--Basic |
3,325,760 |
3,236,460 |
3,325,760 |
3,236,460 |
|
--Diluted |
3,333,628 |
3,237,953 |
3,327,364 |
3,238,121 |
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
| Nine Months Ended September 30, |
2009 |
2008 |
|
Cash flows from operating activities: |
|
|
|
Net income |
$229,203 |
$240,723 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
Gain on the sale of discontinued operations |
---- |
(72,917) |
|
Depreciation and amortization |
3,205 |
40,624 |
|
Non cash compensation expense |
61,280 |
79,032 |
|
Realized loss (gain) on sale of marketable securities |
5,940 |
(18,122) |
|
Realized gain on marketable securities that were previously marked down |
(10,654) |
---- |
|
Changes in operating assets and liabilities: |
|
|
|
Interest receivable on short term loans |
(39,523) |
(23,508) |
|
Due from purchaser |
23,881 |
35,000 |
|
Other current and non current assets |
(19,630) |
(7,435) |
|
Accounts payable and accrued expenses |
(33,272) |
(38,670) |
|
Deferred origination fees |
46,530 |
58,061 |
|
Income taxes payable |
81,078 |
9,104 |
|
Net cash provided by operating activities |
348,038 |
301,892 |
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
Proceeds from sale of marketable securities, auction rate securities and annuity contract |
253,525 |
1,844,070 |
|
Investment in marketable securities, auction rate securities and annuity contract |
---- |
(1,175,000) |
|
Issuance of short term and long term loans |
(4,988,030) |
(4,543,977) |
|
Collection received from short term loans |
3,585,463 |
3,166,897 |
|
Cash received on sale of Jewish Directories |
---- |
97,222 |
|
Net cash used in investing activities |
(1,149,042) |
(610,788) |
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
Use of line of credit |
156,582 |
---- |
|
Net cash provided by financing activities |
156,582 |
---- |
|
|
|
|
|
Net decrease in cash |
(644,422) |
(308,896) |
|
Cash and cash equivalents, beginning of the year |
884,296 |
621,724 |
|
Cash and cash equivalents, end of period |
$239,874 |
$312,828 |
|
Supplemental Cash Flow Information: |
|
|
|
Taxes paid during the period |
$ 30,753 |
$11,465 |
|
Interest paid during the period |
$ 746 |
$4,421 |