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.

 

 

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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