Press Releases
Manhattan Bridge Capital, Inc. Reports Second Quarter Financial Results
NEW YORK, August 6, 2008 / PRIME Newswire / -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN - news)
Manhattan Bridge Capital, Inc. announced today that net income for the three month period ended June 30, 2008 was $0.02 per basic and diluted share, versus net loss of (0.11) per basic and diluted share for the three month period ended June 30, 2007.
Total revenue for the three month period ended June 30, 2008 were approximately $179,000 versus total revenue of approximately $7,000 for the three month period ended June 30, 2007. For the three month period ended June 30, 2008 revenue of approximately $164,000 represents interest income on short term and long term loans made through DAG Funding and approximately $15,000 represents origination fees.
Net income for the six month period ended June 30, 2008 was $0.06 per basic and diluted share or $191,914, versus net loss of (0.16) per basic and diluted share or ($516,004) for the six month period ended June 30, 2007.
Total revenue for the six month period ended June 30, 2008 were approximately $344,000 versus total revenue of approximately $8,000 for the six month period ended June 30, 2007. For the six month period ended June 30, 2008 revenue of approximately $311,000 represents interest income on the short term and long term loans made through DAG Funding and approximately $33,000 represents origination fees.
Income from continuing operations for the six month period ended June 30, 2008 was approximately $119,000 compared to a loss from continuing operations of approximately ($265,000) for the six month period ended June 30, 2007, an increase of approximately $384,000. This increase in income from continuing operations resulted mainly from increase in revenue from short term and long term loans generated through DAG Funding of approximately $336,000 and a decrease of approximately $81,000 in general and administrative expense, offset by a decrease of approximately $44,000 in other income.
Assaf Ran, Chairman of the Board and CEO stated, “I’m Pleased that we have managed to achieve our goal and stabilize profit as we reported a fourth consecutive profitable quarter. Our transition into profitability was made possible by our significant efforts to identify good short term commercial finance opportunities. Our next challenge is to arrange a leverage financing facility against our portfolio in order to expand the scale of our businesses.”
Manhattan Bridge Capital, Inc., through our subsidiaries, provides short term, secured, non–banking, commercial loans to small businesses. In addition we developed innovative software and a related web site that allows retail businesses and other service providers to reach prospective customers and clients for their goods and services in a more effective way than traditional on-line and print yellow pages search . We operate several web sites: http://www.manhattanbridgecapital.com.http://www.dagfundingsolutions.com, and http://www.nextyellow.com.
Forward-looking statements in this release are made pursuant to the “safe harbor'' provisions of the Private Securities Litigation Reform Act of 1995 These forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements, including, without limitation, continued acceptance of the Company's products, increased levels of competition, new products introduced by competitors, changes in the rates of subscriber acquisition and retention, and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
|
Assets |
June 30, 2008 |
December 31, 2007 |
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ 1,134,317 |
$ 621,724 |
|
Marketable securities |
732,636 |
802,811 |
|
Auction rate securities |
450,000 |
--- |
|
Short term investment – insurance annuity contract – at fair value |
--- |
931,555 |
|
Total cash and cash equivalents, marketable securities and short term investment |
2,316,953 |
2,356,090 |
|
|
|
|
|
Short term loans |
4,334,185 |
4,313,211 |
|
Interest receivable on short term loans |
53,246 |
41,184 |
|
Due from purchaser |
38,881 |
156,103 |
|
Other current assets |
39,073 |
17,083 |
|
Total current assets |
6,782,338 |
6,883,671 |
|
|
|
|
|
Long term loans |
200,000 |
--- |
|
Property and equipment, net |
11,868 |
14,261 |
|
Capitalized web development costs, net |
49,343 |
74,015 |
|
Security deposit |
17,515 |
17,515 |
|
Investment in privately held company, at cost |
100,000 |
100,000 |
|
Total assets |
$ 7,161,064 |
$ 7,089,462 |
Liabilities and Shareholders’ Equity
| Current liabilities: |
|
|
|
Accounts payable and accrued expenses |
$ 82,968 |
$ 123,886 |
|
Deferred gain from the sale of Jewish Directories |
--- |
72,917 |
|
Deferred origination fee |
19,896 |
4,597 |
|
Total current liabilities |
102,864 |
201,400 |
|
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; 3,305,190 issued and 3,236,460 outstanding |
3,305 |
3,305 |
|
Additional paid-in capital |
9,232,923 |
9,180,235 |
|
Treasury stock, at cost- 68,730 shares |
(231,113) |
(231,113) |
|
Accumulated other comprehensive loss |
(515,737) |
(441,272) |
|
Accumulated deficit |
(1,431,178) |
(1,623,093) |
|
Total shareholders’ equity |
7,058,200 |
6,888,062 |
|
Total liabilities and shareholders’ equity |
$ 7,161,064 |
$ 7,089,462 |
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
| Three Months Ended June 30, |
Six Months Ended June 30, |
|||
| 2008 | 2007 | 2008 | 2007 | |
|
Interest income from short term loans |
$163,924 |
$4,967 |
$311,385 |
$4,967 |
|
Origination fees |
14,808 |
---- |
32,633 |
---- |
|
Subscription revenues, net |
43 |
1,619 |
100 |
2,981 |
|
Total Revenue |
178,775 |
6,586 |
344,118 |
7,948 |
|
|
|
|
|
|
|
Operating costs and expenses: |
|
|
|
|
|
Web development expenses |
12,336 |
12,336 |
24,672 |
24,672 |
|
General and administrative expenses |
148,759 |
188,391 |
309,182 |
390,038 |
|
Total operating costs and expenses |
161,095 |
200,727 |
333,854 |
414,710 |
|
Income (Loss) from operations |
17,680 |
(194,141) |
10,264 |
(406,762) |
|
|
|
|
|
|
|
Interest and dividend income |
16,371 |
98,040 |
41,122 |
152,803 |
|
Realized gain (loss) on marketable securities |
18,122 |
16,257 |
18,122 |
(10,569) |
|
Other income |
---- |
---- |
39,000 |
---- |
|
Total other income |
34,493 |
114,297 |
98,244 |
142,234 |
|
Income (loss) from continuing operations before income tax benefit |
52,173 |
(79,844) |
108,508 |
(264,528) |
|
Income tax benefit |
---- |
---- |
10,489 |
---- |
|
Income (loss) from continuing operations |
52,173 |
(79,844) |
118,997 |
(264,528) |
|
Discontinued Operations: |
|
|
|
|
|
Gain on the sale of the Jewish Directories (net of tax effect of 0 in 2008 and 2007) |
---- |
72,916 |
72,917 |
121,527 |
|
Loss from operations of Shopila (net of tax effect of 0) |
---- |
(353,011) |
---- |
(373,003) |
|
Income from discontinued operations |
---- |
(280,095) |
72,917 |
(251,476) |
|
Net Income (loss) |
$52,173 |
$(359,939) |
$191,914 |
$(516,004) |
|
|
|
|
|
|
|
Basic net income (loss) per common share outstanding: |
|
|
|
|
|
Continuing operations |
$0.02 |
$(0.02) |
$0.04 |
$(0.08) |
|
Discontinued operations |
|
(0.09) |
0.02 |
(0.08) |
|
Net income (loss) per common share- Basic |
$0.02 |
$(0.11) |
$0.06 |
$(0.16) |
|
Diluted net income (loss) per common share outstanding: |
|
|
|
|
|
Continuing operations |
$0.02 |
$(0.02) |
$0.04 |
$(0.08) |
|
Discontinued operations |
|
(0.09) |
0.02 |
(0.08) |
|
Net income (loss) per common share- Diluted |
$0.02 |
$(0.11) |
$0.06 |
$(0.16) |
|
Weighted average number of common shares outstanding |
|
|
|
|
|
--Basic |
3,236,460 |
3,236,460 |
3,236,460 |
3,236,460 |
|
--Diluted |
3,237,406 |
3,236,460 |
3,238,215 |
3,236,460 |
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
Six Months Ended June 30,
|
Cash flows from operating activities: |
|
|
|
Net income (loss) |
$191,914 |
$(516,004) |
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
|
|
|
Gain on the sale of Jewish Directories |
(72,917) |
(121,527) |
|
Loss from discontinued operations of Shopila |
---- |
373,003 |
|
Depreciation and amortization |
27,065 |
26,917 |
|
Non cash compensation expense |
52,688 |
86,408 |
|
Realized (gain) loss on sale of marketable securities |
(18,122) |
10,569 |
|
Changes in operating assets and liabilities: |
|
|
|
Interest receivable on short term loans |
(12,062) |
(4,966) |
|
Due from purchaser |
20,000 |
--- |
|
Other current and non current assets |
(21,990) |
(14,263) |
|
Accounts payable and accrued expenses |
(40,918) |
(87,105) |
|
Deferred origination fees |
15,299 |
---- |
|
Income tax payable |
---- |
(4,764) |
|
Assets and Liabilities of discontinued operations |
---- |
(101,118) |
|
Net cash provided by (used in) operating activities |
140,957 |
(352,850) |
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
Proceeds from sale of marketable securities, auction rate securities and annuity contract |
1,670,388 |
480,439 |
|
Investment in marketable securities, auction rate securities and annuity contract |
(1,175,000) |
(806,391) |
|
Issuance of short term and long term loans |
(2,221,123) |
(795,000) |
|
Collection received from short term loans |
2,000,149 |
---- |
|
Cash received on sale of Jewish Directories |
97,222 |
173,389 |
|
Net cash provided by (used in) investing activities |
371,636 |
(947,563) |
|
Net increase (decrease) in cash |
512,593 |
(1,300,413) |
|
Cash and cash equivalents, beginning of the year |
621,724 |
3,630,937 |
|
Cash and cash equivalents, end of period |
$1,134,317 |
$2,330,524 |
|
|
|
|
|
Supplemental Cash Flow Information: |
|
|
|
Taxes paid during the period |
$5,766 |
$4,764 |
|
Interest Paid during the period |
$4,356 |
---- |