NEW YORK, N.Y. August 10, 2011 / GLOBE Newswire / -- Manhattan Bridge Capital, Inc. (NASDAQ: LOAN)

 

Manhattan Bridge Capital, Inc. announced today that its total revenue for the three month period ended June 30, 2011 was approximately $342,000 compared to approximately $315,000 for the three month period ended June 30, 2010, an increase of 9%. For the three month period ended June 30, 2011, $276,000 of the Company's revenue represented interest income on the short term secured commercial loans that the Company offers to small businesses compared to $260,000 for the same period in 2010, and $66,000 represents origination fees on such loans compared to $55,000 for the same period in 2010. The increase in revenue represents an increase in lending operations.

 

Income from operations for the three month period ended June 30, 2011 was approximately $110,000 compared to approximately $123,000 for the same period ended June 30, 2010, a decrease of 11%. This decrease in income from operations resulted mainly from an increase in operating costs and expenses of $40,000, primarily attributable to an increase in payroll expenses due to restoration of our CEO’s salary in June 2010 and an increase in interest expense on loans and line of credit, offset by a decrease in equity-based compensation expense.

 

Net income for the three month period ended June 30, 2011 was $0.03 per basic and diluted share (based on 3.324 million shares and 3.398 million shares), or $87,000, versus net income of $0.05 per basic and diluted share (based on 3.324 million shares and 3.370 million shares) or $155,000 for the three month period ended June 30, 2010. This decrease in net income is mainly due to a decrease in other income due to the realized gains on the sale of marketable securities that were previously marked down which were recorded in the period ended June 30, 2010, in the amount of $96,000 and increases in operating costs and expenses, offset by the increase in revenue.

 

Total revenue for the six month period ended June 30, 2011 was approximately $680,000 compared to approximately $606,000 for the six month period ended June 30, 2010, an increase of 12%. For the six month period ended June 30, 2011, $558,000 of the Company's revenue represented interest income on the short term secured commercial loans that the Company offers to small businesses compared to $496,000 for the same period in 2010, and $122,000 represents origination fees on such loans compared to $110,000 for the same period in 2010.

 

Net income for the six month period ended June 30, 2011 was $0.05 per basic and diluted share (based on 3.324 million shares and 3.397 million shares), or $168,000, versus net income of $0.09 per basic and diluted share (based on 3.324 million shares and 3.368 million shares,) or $296,000 for the same period in 2010, a decrease of approximately $128,000. This decrease in net income is mainly due to a decrease in other income due to the realized gains on the sale of marketable securities that were previously marked down which were recorded in the period ended June 30, 2010, in the amount of $151,000 and increases in operating costs and expenses, offset by the increase in revenue. 
           

As of June 30, 2011 total shareholders' equity was $7,962,000 compared to $7,763,000 as of December 31, 2010, an increase of $199,000.

 

Assaf Ran, Chairman of the Board and CEO stated, “During the second quarter we increased our leverage position and revenue and steadily kept the growth of our shareholders' equity. Our recent relocation to an office outside of NYC and additional saving measures will help reduce operating expenses.

 

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, 2011 (Unaudited)	December 31,2010 (Audited)
Current assets:
Cash and cash equivalents	$8,446	$386,023
Short term loans	9,040,839	8,156,293
Interest receivable on short term loans	117,028	91,593
Other current assets	45,912	13,427
Total current assets	9,212,225	8,647,336
Investment in real estate	675,000	---
Long term loan receivable	73,391	---
Property and equipment, net	909	2,425
Security deposit	23,864	17,515
Investment in privately held company, at cost	100,000	100,000
Deferred financing costs	90,986	109,183
Total assets	$10,176,375	$8,876,459

 

Liabilities and Shareholders’ Equity

 

Current liabilities:
Short term loans and line of credit	$1,359,465	$300,000
Accounts payable and accrued expenses	53,761	56,405
Deferred origination fees	104,850	76,428
Income taxes payable	196,512	180,513
Total current liabilities	1,714,588	613,346
Long term liabilities:
Senior secured notes	500,000	500,000
Total liabilities	2,214,588	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; 3,405,190 issued and 3,324,459 outstanding	3,405	3,405
Additional paid-in capital	9,619,604	9,588,849
Treasury stock, at cost- 80,731 shares	(241,400)	(241,400)
Accumulated deficit	(1,419,822)	(1,587,741)
Total shareholders’ equity	7,961,787	7,763,113
Total liabilities and shareholders’ equity	$10,176,375	$8,876,459

 

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

 

	Three Months Ended June 30,		Six Months  Ended June 30,
	2011	2010	2011	2010
Interest income from short term loans	$276,037	$259,661	$558,402	$495,864
Origination fees	65,572	55,368	122,009	110,339
Total Revenue	341,609	315,029	680,411	606,203
Operating costs and expenses:
Interest expense on loans and line of credit	28,289	9,593	44,965	14,727
General and administrative expenses	203,809	182,451	390,529	324,527
Total operating costs and expenses	232,098	192,044	435,494	339,254
Income from operations	109,511	122,985	244,917	266,947
Interest and dividend income	---	824	---	4,167
Realized gain on marketable securities that were previously marked down	---	96,132	---	151,419
Other income	31,590	---	39,000	---
Total other income	31,590	96,956	39,000	155,586
Income from operations before  income tax expense	141,101	219,941	283,917	422,533
Income tax expense	(54,000)	(65,000)	(116,000)	(127,000)
Net Income	$87,101	$154,941	$167,917	$295,533
Basic and diluted net income per common share outstanding:
--Basic	$0.03	$0.05	$0.05	$0.09
--Diluted	$0.03	$0.05	$0.05	$0.09
Weighted average number of common shares outstanding
--Basic	3,324,459	3,324,459	3,324,459	3,324,459
--Diluted	3,397,597	3,370,329	3,396,873	3,368,096

 

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

(unaudited) 

 

Six Months  Ended June 30,	2011	2010
Cash flows from operating activities:
Net Income	$167,917	$295,533
Adjustments to reconcile net income to net cash provided by         operating activities -
Amortization of deferred financing costs	18,197	----
Depreciation	1,516	1,516
Non cash compensation expense	30,755	45,754
Realized gain on sale of marketable securities that were     previously marked down	---	(151,419)
Changes in operating assets and liabilities:
Interest receivable on short term loans	(25,435)	(8,865)
Other current and non current assets	(38,833)	(85,151)
Accounts payable and accrued expenses	(2,643)	(8,888)
Deferred origination fees	28,422	(45,859)
Income taxes payable	15,999	26,560
Net cash provided by operating activities	195,895	69,181
Cash flows from investing activities:
Proceeds from sale of marketable securities	---	431,864
Investment in real estate	(675,000)	----
Issuance of short term loans	(3,270,800)	(2,936,500)
Collections received from loans	2,312,863	1,706,421
Net cash used in investing activities	(1,632,937)	(798,215)
Cash flows from financing activities:
Proceeds from loans and line of credit	1,059,465	300,000
Net cash provided by financing activities	1,059,465	300,000
Net decrease in cash	(377,577)	(429,034)
Cash and cash equivalents, beginning of the year	386,023	707,449
Cash and cash equivalents, end of period	$8,446	$278,415
Supplemental Cash Flow Information:
Taxes paid during the period	$100,001	$100,440
Interest paid during the period	$44,965	$14,727
Non-Cash Investing and Financing Activities:
Forgiveness of debt	---	$27,961