Press Releases
Manhattan Bridge Capital, Inc. Reports Third Quarter Financial Results
NEW YORK, October 30, 2008 / PRIME Newswire / -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN - news)
Manhattan Bridge Capital, Inc. announced today that income from continuing operations for the three month period ended September 30, 2008 was $0.02 per basic and diluted share, versus loss from continuing operations of ($0.01) per basic and diluted share for the three month period ended September 30, 2007.
Total revenues for the three month period ended September 30, 2008 were approximately $200,000 versus total revenues of approximately $62,000 for the three month period ended September 30, 2007.
Net income for the nine month period ended September 30, 2008 was $0.07 per basic and diluted share or $240,723, versus net loss of ($0.11) per basic and diluted share or ($351,021) for the nine month period ended September 30, 2007.
Total revenues for the nine month period ended September 30, 2008 were approximately $544,000 versus total revenues of approximately $70,000 for the nine month period ended September 30, 2007. For the nine month period ended September 30, 2008 revenue of approximately $489,000 represents interest income on the short term and long term loans and approximately $55,000 represents income from origination fees.
Other income for the nine month period ended September 30, 2008 was approximately $116,000.
As of September 30, 2008, the Company reported a book value of $7,016,372 or $2.17 per share.
As of September 30, 2008, the Company reported approximately $5,700,000 of outstanding short term and long term loans and $1,200,000 of cash and cash equivalents, marketable securities and auction rate securities.
Assaf Ran, Chairman of the Board and CEO stated, “Despite the challenging market conditions our team managed to successfully accomplish the next stage of our business plan. Revenues continue to climb and earnings follow. As we grow our operations we continue to operate efficiently and maintain a low operating cost structure. We strive to increase growth further by leveraging our assets.”
Manhattan Bridge Capital, Inc., 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 searches. We operate several web sites including: http://www.manhattanbridgecapital.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 SHEETS
|
Assets |
September 30, 2008 |
December 31,2007 |
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ 312,828 |
$ 621,724 |
|
Marketable securities |
616,973 |
802,811 |
|
Auction rate securities |
275,000 |
--- |
|
Short term investment – insurance annuity contract – at fair value |
--- |
931,555 |
|
Total cash and cash equivalents, marketable securities and short term investment |
1,204,801 |
2,356,090 |
|
|
|
|
|
Short term loans |
5,490,291 |
4,313,211 |
|
Interest receivable on short term loans |
64,692 |
41,184 |
|
Due from purchaser |
23,881 |
156,103 |
|
Other current assets |
24,518 |
17,083 |
|
Total current assets |
6,808,183 |
6,883,671 |
|
|
|
|
|
Long term loans |
200,000 |
--- |
|
Property and equipment, net |
10,645 |
14,261 |
|
Capitalized web development costs, net |
37,007 |
74,015 |
|
Security deposit |
17,515 |
17,515 |
|
Investment in privately held company, at cost |
100,000 |
100,000 |
|
Total assets |
$ 7,173,350 |
$ 7,089,462 |
Liabilities and Shareholders’ Equity
| Current liabilities: |
|
|
|
Accounts payable and accrued expenses |
$ 85,216 |
$ 123,886 |
|
Deferred gain from the sale of Jewish Directories |
--- |
72,917 |
|
Deferred origination fees |
62,658 |
4,597 |
|
Income taxes payable |
9,104 |
--- |
|
Total current liabilities |
156,978 |
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 |
9,259,267 |
9,180,235 |
|
Treasury stock, at cost- 68,730 shares |
(231,113) |
(231,113) |
|
Accumulated other comprehensive loss |
(632,718) |
(441,272) |
|
Accumulated deficit |
(1,382,369) |
(1,623,093) |
|
Total shareholders’ equity |
7,016,372 |
6,888,062 |
|
Total liabilities and shareholders’ equity |
$ 7,173,350 |
$ 7,089,462 |
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
|
|
Three Months |
Nine Months |
||
|
|
2008 |
2007 |
2008 |
2007 |
|
|
|
|
|
|
|
Interest income from short term loans |
$ 177,650 |
$ 60,504 |
$ 489,035 |
$ 65,471 |
|
Origination fees |
22,438 |
---- |
55,071 |
---- |
|
Subscription revenues, net |
38 |
1,324 |
138 |
4,305 |
|
Total Revenue |
200,126 |
61,828 |
544,244 |
69,776 |
|
|
|
|
|
|
|
Operating costs and expenses: |
|
|
|
|
|
Web development expenses |
12,336 |
12,336 |
37,008 |
37,008 |
|
General and administrative expenses |
143,520 |
159,330 |
452,702 |
549,368 |
|
Total operating costs and expenses |
155,856 |
171,666 |
489,710 |
586,376 |
|
Income (Loss) from operations |
44,270 |
(109,838) |
54,534 |
(516,600) |
|
|
|
|
|
|
|
Interest and dividend income |
17,885 |
36,631 |
59,007 |
189,434 |
|
Realized gain on marketable securities |
---- |
51,359 |
18,122 |
40,790 |
|
Other income |
---- |
---- |
39,000 |
---- |
|
Total other income |
17,885 |
87,990 |
116,129 |
230,224 |
|
Income (loss) from continuing operations before provision for income taxes |
62,155 |
(21,848) |
170,663 |
(286,376) |
|
Provision for income taxes |
(13,346) |
---- |
(2,857) |
---- |
|
Income (loss) from continuing operations |
48,809 |
(21,848) |
167,806 |
(286,376) |
|
Discontinued Operations: |
|
|
|
|
|
Gain on the sale of the Jewish Directories (net of tax effect of 0 in 2008 and 2007) |
---- |
72,918 |
72,917 |
194,444 |
|
Gain (loss) from operations of Shopila (net of tax effect of 0) |
---- |
113,915 |
---- |
(259,089) |
|
Income (loss) from discontinued operations |
---- |
186,833 |
72,917 |
(64,645) |
|
Net Income (loss) |
$48,809 |
$164,985 |
$240,723 |
$(351,021) |
|
|
|
|
|
|
|
Basic net income (loss) per common share outstanding: |
|
|
|
|
|
Continuing operations |
$0.02 |
$(0.01) |
$0.05 |
$(0.09) |
|
Discontinued operations |
|
0.06 |
0.02 |
(0.02) |
|
Net income (loss) per common share- Basic |
$0.02 |
$0.05 |
$0.07 |
$(0.11) |
|
Diluted net income (loss) per common share outstanding: |
|
|
|
|
|
Continuing operations |
$0.02 |
$(0.01) |
$0.05 |
$(0.09) |
|
Discontinued operations |
|
0.06 |
0.02 |
(0.02) |
|
Net income (loss) per common share- Diluted |
$0.02 |
$0.05 |
$0.07 |
$(0.11) |
|
Weighted average number of common shares outstanding |
|
|
|
|
|
--Basic |
3,236,460 |
3,236,460 |
3,236,460 |
3,236,460 |
|
--Diluted |
3,237,953 |
3,236,460 |
3,238,121 |
3,236,460 |
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
Nine Months Ended September 30,
|
|
2008 |
2007 |
|
Cash flows from operating activities: |
|
|
|
Net income (loss) |
$ 240,723 |
$ (351,021) |
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
|
|
|
Gain on the sale of Jewish Directories |
(72,917) |
(194,444) |
|
Loss from discontinued operations of Shopila |
---- |
259,089 |
|
Depreciation and amortization |
40,624 |
40,376 |
|
Non cash compensation expense |
79,032 |
121,667 |
|
Realized gain on sale of marketable securities |
(18,122) |
(40,790) |
|
Changes in operating assets and liabilities: |
|
|
|
Interest receivable on short term loans |
(23,508) |
(22,945) |
|
Due from purchaser |
35,000 |
--- |
|
Other current and non current assets |
(7,435) |
4,622 |
|
Accounts payable and accrued expenses |
(38,670) |
(127,241) |
|
Deferred origination fees |
58,061 |
---- |
|
Income taxes payable |
9,104 |
(29,436) |
|
Assets and Liabilities of discontinued operations |
---- |
(94,653) |
|
Net cash provided by (used in) operating activities |
301,892 |
(434,776) |
|
Cash flows from investing activities: |
|
|
|
Proceeds from sale of marketable securities, auction rate securities and annuity contract |
1,844,070 |
1,888,680 |
|
Investment in marketable securities, auction rate securities and annuity contract |
(1,175,000) |
(1,291,264) |
|
Issuance of short term and long term loans |
(4,543,977) |
(2,488,618) |
|
Collection received from short term loans |
3,166,897 |
---- |
|
Cash received on sale of Jewish Directories |
97,222 |
255,860 |
|
Net cash used in investing activities |
(610,788) |
(1,635,342) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net decrease in cash |
(308,896) |
(2,070,118) |
|
Cash and cash equivalents, beginning of the year |
621,724 |
3,613,988 |
|
Cash and cash equivalents, end of period |
$312,828 |
$1,543,870 |
|
|
|
|
|
Supplemental Cash Flow Information: |
|
|
|
Taxes paid during the period |
$11,465 |
$28,981 |
|
Interest Paid during the period |
$4,421 |
---- |