LONG ISLAND, N.Y. August 6, 2012 / 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, 2012 was approximately $415,000 compared to approximately $342,000 for the three month period ended June 30, 2011, an increase of $73,000 or 21.3%. For the three month period ended June 30, 2012, approximately $332,000 of the Company's revenue represents interest income on the secured, commercial loans that the Company offers to small businesses compared to approximately $276,000 for the same period in 2011, and approximately $82,000 represents origination fees on such loans compared to approximately $66,000 for the same period in 2011. The increase in revenue represents an increase in lending operations.

 

Income from operations for the three month period ended June 30, 2012 was approximately $158,000 compared to approximately $110,000 for the same period ended June 30, 2011, an increase of $48,000 or 43.6%. This increase in income from operations resulted mainly from an increase in revenue, offset by an increase in interest and amortization of debt service costs.

 

Net income for the three month period ended June 30, 2012 was $0.02 per basic and diluted share (based on 4.324 million shares and 4.331 million shares), or $80,000, versus net income of $0.03 per basic and diluted share (based on 3.324 million shares and 3.398 million shares) or $87,000 for the three month period ended June 30, 2011. This decrease in net income is mainly due to an increase in legal fees and in income tax expense, and a decrease in other income, offset by the increase in revenue.

 

Total revenue for the six month period ended June 30, 2012 was approximately $806,000 compared to approximately $680,000 for the six month period ended June 30, 2011, an increase of $126,000 or 18.5%. For the six month period ended June 30, 2012, approximately $640,000 of the Company's revenue represents interest income on the secured, commercial loans that the Company offers to small businesses compared to approximately $558,000 for the same period in 2011, and approximately $166,000 represents origination fees on such loans compared to approximately $122,000 for the same period in 2011. The increase in revenue represents an increase in lending operations.

 

Income from operations for the six month period ended June 30, 2012 was approximately $338,000 compared to approximately $245,000 for the same period ended June 30, 2011, an increase of $93,000 or 38%. This increase in income from operations resulted mainly from an increase in revenue, offset by an increase in interest and amortization of debt service costs.

 

Net income for the six month period ended June 30, 2012 was $0.05 per basic and diluted share (based on 4.324 million shares and 4.332 million shares), or $195,000, versus net income of $0.05 per basic and diluted share (based on 3.324 million shares and 3.397 million shares) or $168,000 for the same period in 2011, an increase of $27,000. This increase in net income is mainly due to an increase in income from operations, offset by an increase in income tax expense and a decrease in other income. 
           

As of June 30, 2012 total shareholders' equity was approximately $8,291,000 compared to approximately $8,088,000 as of December 31, 2011, an increase of $203,000.

 

Assaf Ran, Chairman of the Board and CEO stated, “During the second quarter, we executed an extremely significant transaction, our first major line of credit. This $3.5 million line will help us continue our growth, both in revenue and in net income and is expected to be reflected in our financial results as soon as the third quarter of 2012. During the second quarter, we have paid a significant amount of money for legal fees in relation to the derivative lawsuit that was filed, dismissed, and filed again by a minority shareholder, Mr. Alan R. Kahn. We are insured to cover the legal fees but are required to pay the initial $75,000. We are preparing a motion to dismiss this amended complaint, which, subject to discussions with the minority shareholder’s counsel and approval of the court, we expect to file this month.”

 

“In the second quarter, we also experienced a significant increase in pay-off activity on existing loans and the demand for new loans. This activity represents some recovery in the markets in which we operate. Therefore, I am confident that we are on track for continuing growth,” 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,  2012 (unaudited)	December 31,2011 (audited)
Current assets:
Cash and cash equivalents	$166,506	$221,905
Short term loans receivable	6,535,844	6,916,090
Interest receivable on loans	119,479	109,905
Other current assets	49,840	16,463
Total current assets	6,871,669	7,264,363
Investment in real estate	146,821	146,821
Long term loans receivable	4,529,866	2,498,262
Property and equipment, net	266	588
Security deposit	6,349	6,349
Investment in privately held company, at cost	100,000	100,000
Deferred financing costs	67,945	72,788
Total assets	$ 11,722,916	$ 10,089,171

 

Liabilities and Shareholders’ Equity

 

Current liabilities:
Line of credit and short term loans	$2,639,465	$1,159,465
Accounts payable and accrued expenses	24,631	60,072
Deferred origination fees	142,720	112,780
Income taxes payable	125,256	168,786
Total current liabilities	2,932,072	1,501,103
Long term liabilities:
Senior secured notes	500,000	500,000
Total liabilities	3,432,072	2,001,103
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	4,405	4,405
Additional paid-in capital	9,664,009	9,656,280
Treasury stock, at cost- 80,731 shares	(241,400)	(241,400)
Accumulated deficit	(1,136,170)	(1,331,217)
Total shareholders’ equity	8,290,844	8,088,068
Total liabilities and shareholders’ equity	$11,722,916	$10,089,171

 

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

 

Three Months Ended June 30,		Six Months  Ended June 30,
	2012	2011	2012	2011
Interest income from loans	$ 332,462	$ 276,037	$ 640,064	$ 558,402
Origination fees	82,099	65,572	166,323	122,009
Total Revenue	414,561	341,609	806,387	680,411
Operating costs and expenses:
Interest and amortization of debt service costs	58,932	37,388	100,074	63,162
Referral fees	1,530	763	3,659	1,411
General and administrative expenses	196,206	193,947	364,182	370,921
Total operating costs and expenses	256,668	32,098	467,915	435,494
Income from operations	157,893	109,511	338,472	244,917
Other income	6,887	31,590	13,774	39,000
Income from operations befor income tax expense	164,780	141,101	352,246	283,917
Income tax expense	(84,700)	(54,000)	(157,200)	(116,000)
Net Income	$80,080	$87,101	$195,046	$167,917
Basic and diluted net income per common share outstanding:
--Basic	$0.02	$0.03	$0.05	$0.05
--Diluted	$0.02	$ 0.03	$0.05	$0.05
Weighted average number of common shares outstanding
--Basic	4,324,459	3,324,459	4,324,459	3,324,459
--Diluted	4,331,140	3,397,597	4,332,322	3,396,873

 

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

 

Six Months  Ended June 30,	2012	2011
Cash flows from operating activities:
Net Income	$195,046	$167,917
Adjustments to reconcile net income to net cash provided by         operating activities -
Amortization of deferred financing costs	4,843	18,197
Depreciation	322	1,516
Non cash compensation expense	7,730	30,755
Changes in operating assets and liabilities:
Interest receivable on loans	(9,574)	(25,435)
Other current and non current assets	(33,376)	(38,833)
Accounts payable and accrued expenses	(35,441)	(2,643)
Deferred origination fees	29,940	28,422
Income taxes payable	(43,530)	15,999
Net cash provided by operating activities	115,960	195,895
Cash flows from investing activities:
Investment in real estate	---	(675,000)
Issuance of short term loans	(5,896,000)	(3,270,800)
Collections received from loans	4,244,641	2,312,863
Net cash used in investing activities	(1,651,359)	(1,632,937)
Cash flows from financing activities:
Proceeds from loans and line of credit, net	1,480,000	1,059,465
Net cash provided by financing activities	1,480,000	1,059,465
Net decrease in cash and cash equivalents	(55,399)	(377,577)
Cash and cash equivalents, beginning of the year	221,905	386,023
Cash and cash equivalents, end of period	$166,506	$8,446
Supplemental Cash Flow Information:
Taxes paid during the period	$200,730	$100,001
Interest paid during the period	$79,206	$44,965