NEW YORK, N.Y. November 14, 2011 / GLOBE Newswire / -- Manhattan Bridge Capital, Inc. (NASDAQ: LOAN)

 

Manhattan Bridge Capital, Inc. announced today that total revenues for the three month period ended September 30, 2011 were approximately $351,000 compared to approximately $306,000 for the three month period ended September 30, 2010, an increase of $45,000 or 14.7%. The increase in revenue represents an increase in lending operations. For the three month period ended September 30, 2011, $284,000 of our revenue represents interest income on the secured commercial loans that we offer to small businesses compared to $256,000 for the same period in 2010, and $67,000 represents origination fees on such loans compared to $51,000 for the same period in 2010.

 

Net income for the three month period ended September 30, 2011 was $0.03 per basic and diluted share (based on 3.553 million shares and 3.561 million shares, respectively), or $97,062, versus net income of $0.02 per basic and diluted share (based on 3.324 million shares and 3.380 million shares, respectively) or $56,854 for the three month period ended September 30, 2010. This increase in net income was mainly due to increases in revenue and other income, offset by increases in operating costs and expenses.

 

As of September 30, 2011 total shareholders' equity was $8,076,000 compared to $7,962,000 as of June 30, 2011 and $7,763,000 as of December 31, 2010.

 

Total revenues for the nine month period ended September 30, 2011 were approximately $1,031,000 compared to approximately $913,000 for the nine month period ended September 30, 2010, an increase of $118,000, or 12.9%. The increase in revenue represents an increase in lending operations. Revenue of approximately $842,000 for the nine month period ended September 30, 2011, compared to approximately $752,000 for the same period in 2010, represents interest income on the secured commercial loans that we offer to small businesses, and $189,000 represents origination fees on such loans compared to $161,000 for the same period in 2010.

 

Net income for the nine month period ended September 30, 2011 was $0.08 per basic and diluted share (based on 3.401 million shares and 3.416 million shares, respectively), or $264,979, versus net income of $0.11 per basic share and $0.10 per diluted share (based on 3.324 million shares and 3.372 million shares, respectively) or $352,387 for the same period in 2010, a decrease of approximately $87,000. This decrease in net income is mainly due to increases in operating costs and expenses, and the realized gain on the sale of marketable securities that were previously marked down which were recorded in the period ended September 30, 2010, in the amount of $151,000, offset by increases in revenue and other income.

 

Assaf Ran, Chairman of the Board and CEO stated, “The third quarter is in line with our constant increase of revenue and net earnings. Our recent relocation to the new headquarters is helping reduce expenses, and our achievements in regards to increase leverage position contribute to our growth.

 

At the end of the quarter, continuing to the beginning of the fourth quarter, we experienced a wave of loan returns. We see that as a positive sign and are investing the necessary efforts to redeploy the funds into new appropriate opportunities.” added Mr. Ran.

 

Manhattan Bridge Capital, Inc., provides short-term secured non-banking commercial loans to real estate investors (also known as hard money) to fund their acquisition and construction of properties located in New York Metropolitan area. 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

 

Assets	September 30, 2011 (Unaudited)	December 31,2010 (Audited)
Current assets:
Cash and cash equivalents	$1,263,125	$386,023
Short term loans	6,274,049	8,156,293
Interest receivable on short term loans	63,295	91,593
Other current assets	31,660	13,427
Total current assets	7,632,129	8,647,336
Investment in real estate	294,321	---
Long term loans receivable	2,174,262	---
Property and equipment, net	749	2,425
Security deposit	6,349	17,515
Investment in privately held company, at cost	100,000	100,000
Deferred financing costs	81,887	109,183
Total assets	$10,289,697	$8,876,459

 

Liabilities and Shareholders’ Equity

 

Current liabilities:
Short term loans and line of credit	$ 1,459,465	$300,000
Accounts payable and accrued expenses	16,475	56,405
Deferred origination fees	104,015	76,428
Income taxes payable	133,786	180,513
Total current liabilities	1,713,741	613,346
Long term liabilities:
Senior secured notes	500,000	500,000
Total liabilities	2,213,741	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 issued and 4,324,459 outstanding	3,405	3,405
Additional paid-in capital	9,636,710	9,588,849
Treasury stock, at cost- 80,731 shares	(241,400)	(241,400)
Accumulated deficit	(1,322,759)	(1,587,741)
Total shareholders’ equity	8,075,956	7,763,113
Total liabilities and shareholders’ equity	$10,289,697	$8,876,459

 

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

 

	Three Months Ended September 30,		Nine Months  Ended September 30,
	2011	2010	2011	2010
Interest income from short term loans	$283,821	$255,869	$842,222	$751,733
Origination fees	67,220	50,593	189,229	160,932
Total Revenue	351,041	306,462	1,031,451	912,665
Operating costs and expenses:
Interest expense on loans and line of credit	39,482	6,900	84,446	21,627
General and administrative expenses	205,087	182,855	595,616	507,382
Total operating costs and expenses	244,569	189,755	680,062	529,009
Income from operations	106,472	116,707	351,389	383,656
Interest and dividend income	---	177	---	4,342
Realized gain on marketable securities that were previously marked down	---	---	---	151,419
Other Income	31,590	---	70,590	---
Total other income	31,590	177	70,590	155,761
Income from operations before  income tax expense	138,062	116,884	421,979	539,417
Income tax expense	(41,000)	(60,030)	(157,000)	(187,030)
Net Income	$97,062	$56,854	$264,979	$352,387
Basic and diluted net income per common share outstanding:
--Basic	$0.03	$0.02	$0.08	$0.11
--Diluted	$0.03	$0.02	$0.08	$0.10
Weighted average number of common shares outstanding
--Basic	3,552,720	3,324,459	3,401,382	3,324,459
--Diluted	3,561,386	3,380,406	3,416,189	3,371,971

 

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

 

Nine Months Ended September 30,	2011	2010
Cash flows from operating activities:
Net income	$264,979	$352,387
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of deferred financing costs	27,296	---
Depreciation	1,677	2,274
Non cash compensation expense	47,862	59,099
Realized gain on sale of marketable securities that were previously marked down	---	(151,419)
Changes in operating assets and liabilities:
Interest receivable on loans	28,298	(9,107)
Other current and non current assets	(7,067)	(46,760)
Accounts payable and accrued expenses	(39,929)	(17,496)
Deferred origination fees	27,587	(62,125)
Income taxes payable	(46,727)	(16,669)
Net cash provided by operating activities	303,976	110,184
Cash flows from investing activities:
Proceeds from sale of marketable securities	---	431,864
Investment in real estate (net of proceeds of $380,679 from partial exercise of option - see note 4)	(294,321)	---
Issuance of short term loans	(6,504,036)	(3,912,500)
Collections received from loans	6,212,018	3,322,921
Net cash used in investing activities	(586,339)	(157,715)
Cash flows from financing activities:
Proceeds from loans and line of credit, net	1,159,465	300,000
Net cash provided by financing activities	1,159,465	300,000
Net increase in cash	877,102	252,469
Cash and cash equivalents, beginning of the year	386,023	707,449
Cash and cash equivalents, end of period	$1,263,125	$959,918
Supplemental Cash Flow Information:
Taxes paid during the period	$203,727	$203,669
Interest paid during the period	$84,446	$21,627
Non-cash Investing and Financing Activities:
Forgiveness of debt	---	$27,961