NEW YORK, N.Y. August 3, 2010 / GLOBE Newswire / -- Manhattan Bridge Capital, Inc. (NASDAQ: LOAN)

 

 Manhattan Bridge Capital, Inc. announced today that total revenue for the three month period ended June 30, 2010 was approximately $315,000 compared to approximately $250,000 for the three month period ended June 30, 2009 an increase of 26%. For the three month period ended June 30, 2010, $260,000 of the Company's revenue represented interest income on the short term secured commercial loans that the Company offers to small businesses compared to $204,000 for the same period in 2009, and $55,000 represents origination fees on such loans compared to $46,000 for the same period in 2009. The increase in revenue represents an increase in lending operations.

  

     Income from operations for the three month period ended June 30, 2010 was approximately $123,000 compared to approximately $78,000 for the same period ended June 30, 2009, an increase of 58%. This increase in income from operations resulted mainly from an increase in revenue from short term secured commercial loans of $65,000, offset by an increase in operating costs and expenses of $20,000.

  

          Net income for the three month period ended June 30, 2010 was $0.05 per basic and diluted share (based on 3.324 million shares and 3,370 million shares, respectively), or $154,941, versus net income of $0.02 per basic and diluted share (based on 3.3 million shares) or $60,001 for the three month period ended June 30, 2009. This increase in net income was mainly due to an increase in income from operations and other income, offset by an increase in income tax expense and in operating costs and expenses.

 

           Total revenue for the six month period ended June 30, 2010 was approximately $606,000 compared to approximately $482,000 for the six month period ended June 30, 2009 an increase of 26%. For the six month period ended June 30, 2010, $496,000 of the Company's revenue represented interest income on the short term secured commercial loans that the Company offers to small businesses compared to $398,000 for the same period in 2009, and $110,000 represents origination fees on such loans compared to $84,000 for the same period in 2009.

           Net income for the six month period ended June 30, 2010 was $0.09 per basic and diluted share (based on 3.324 million shares and 3,368 million shares, respectively), or $295,533, versus net income of $0.04 per basic and diluted share (based on 3.3 million shares) or $145,610 for the same period in 2009, an increase of approximately $150,000. This increase in net income is mainly due to increases in revenue and other income offset by increases in operating costs and expenses and income tax expense.
           

As of June 30, 2010 total shareholders' equity was $7,701,000 compared to $7,455,000 as of December 31, 2009, an increase of $246,000.

 

Assaf Ran, Chairman of the Board and CEO stated, "This quarter financials results reinforces our previous analysis and announcements that our business model works. As we have maintained growth and increased net earnings we have avoided problematic situations in our portfolio."
 “During the second quarter we have achieved certain goals in relations to leveraging as well as to work with participators in order to secure continued growth in the future.” 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 SHEET

 

Assets	June 30, 2010   (Unaudited)	December31,2009 (Audited)
Current assets:
Cash and cash equivalents	$278,415	$707,449
Investment in marketable securities	---	404,268
Total cash and cash equivalents and investment in marketable securities	278,415	1,111,717
Short term loans	7,706,700	6,476,621
Interest receivable on short term loans	69,072	60,207
Other current assets	111,719	26,568
Total current assets	8,165,906	7,675,113
Property and equipment, net	3,942	5,458
Security deposit	17,515	17,515
Investment in privately held company, at cost	100,000	100,000
Total assets	$8,287,363	$7,798,086

 

Liabilities and Shareholders’ Equity

 

Current liabilities:
Lines of credit	$300,000	$---
Accounts payable and accrued expenses	40,919	77,768
Deferred origination fees	56,892	102,751
Income taxes payable	188,742	162,182
Total current liabilities	586,553	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 and 3,324,459 outstanding	3,405	3,405
Additional paid-in capital	9,550,477	9,476,762
Treasury stock, at cost- 80,731 shares	(241,400)	(241,400)
Accumulated other comprehensive income	---	123,823
Accumulated deficit	(1,611,672)	(1,907,205)
Total shareholders’ equity	7,700,810	7,455,385
Total liabilities and shareholders’ equity	$8,287,363	$7,798,086

 

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)

 

Three Months Ended June 30,		Six Months  Ended June 30,
	2010	2009	2010	2009
Interest income from short term loans	$259,661	$203,917	$495,864	$397,615
Origination fees	55,368	45,666	110,339	83,945
Total Revenue	315,029	249,583	606,203	481,560
Operating costs and expenses:
Interest expense on lines of credit used	9,593	----	14,727	----
General and administrative expenses	182,451	171,840	324,527	305,103
Total operating costs and expenses	192,044	171,840	339,254	305,103
Income from operations	122,985	77,743	266,947	176,457
Interest and dividend income	824	6,614	4,167	15,838
Realized (loss) gain on marketable securities	---	(5,940)	---	(5,940)
Realized gain on marketable securities that were previously marked down	96,132	18,658	151,419	18,658
Total other income	96,956	19,332	155,586	28,556
Income from operations before  income tax expense	219,941	97,075	422,533	205,013
Income tax expense	(65,000)	(37,074)	(127,000)	(59,403)
Net Income	$154,941	$60,001	$295,533	$145,610
Basic and diluted net income per common share outstanding:
--Basic	$0.05	$0.02	$0.09	$0.04
--Diluted	$0.05	$0.02	$0.09	$0.04
Weighted average number of common shares outstanding
--Basic	3,324,459	3,325,760	3,324,459	3,325,760
--Diluted	3,370,329	3,328,942	3,368,096	3,325,980

 

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)

 

Ended June 30,	2010	2009
Cash flows from operating activities:
Net Income	$295,533	$145,610
Adjustments to reconcile net income to net cash provided by operating activities -
Depreciation	1,516	2,445
Non cash compensation expense	45,754	45,659
Realized loss on sale of marketable securities	----	5,940
Realized gain on sale of marketable securities that were previously marked down	(151,419)	(18,658)
Changes in operating assets and liabilities:
Interest receivable on short term loans	(8,865)	(12,022)
Other current and non current assets	(85,151)	(27,846)
Accounts payable and accrued expenses	(8,888)	(36,316)
Deferred origination fees	(45,859)	44,859
Income tax payable	26,560	51,078
Net cash provided by operating activities	69,181	200,749
Cash flows from investing activities:
Proceeds from sale of marketable securities, auction rate securities and annuity contract	431,864	187,834
Issuance of short term and long term loans	(2,936,500)	(4,058,604)
Collection received from short term loans	1,706,421	2,724,487
Net cash used in investing activities	(798,215)	(1,146,283)
Cash flows from financing activities:
Use of lines of credit	300,000	158,028
Net cash provided by financing activities	300,000	158,028
Net (decrease) increase in cash	(429,034)	(787,506)
Cash and cash equivalents, beginning of the year	707,449	884,296
Cash and cash equivalents, end of period	$278,415	$96,790
Supplemental Cash Flow Information:
Forgiveness of debt	$27,961	$----
Taxes paid during the period	$100,440	$8,325
Non-cash  investing and financing activities
Interest paid during the period	$14,727	$72