NEW YORK, May 12, 2009 / GLOBE Newswire / -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN - news)

 

Manhattan Bridge Capital, Inc. announced today that total revenues for the three month period ended March 31, 2009 were approximately $232,000 compared to approximately $165,000 for the three month period ended March 31, 2008 an increase of $67,000 or 41%. In 2009, $194,000 of the Company’s revenue represented interest income on the short and long term secured commercial loans that the Company offers to small businesses compared to $147,000 for the same period in 2008, and $38,000 represents origination fees on such loans compared to $18,000 for the same period in 2008.

 

 Income from operations for the period ended March 31, 2009 were approximately $99,000 compared to a loss from operations of approximately ($7,000) for the period ended March 31, 2008, an increase of $106,000. This increase in income from operations resulted mainly from increase in revenue from short and long term secured commercial loans and a decrease in general and administrative expense.     

 

Net income for the three month period ended March 31, 2009 was $0.03 per basic and diluted share (based on 3.326 million shares), or $85,609, versus net income of 0.04 per basic and diluted share (based on 3.236 million shares) or 139,741 for the period ended March 31, 2008, a decrease of approximately $54,000. This decrease in net income is mainly due to income from discontinued operations of approximately $73,000 that was recorded in the three month period ended March 31, 2008.      

 

As of March 31, 2009, the Company reported approximately $6,049,000 of outstanding short term loans and $977,000 of cash and cash equivalents and marketable securities.              

 

As of March 31, 2009 total shareholders’ equity was $7,051,000 compared to $6,988,000 As of March 31, 2008, an increase of $63,000.

 

Assaf Ran, Chairman of the Board and CEO stated, “I am pleased with the 41% increase in revenues for the first quarter and confidant in our ability to maintain the path of growth and robust shareholders’ value.”

 

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.

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 or Plan of Operation”, 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	March 31, 2009 (unaudited)	December 31, 2008 (audited)
Current assets:
Cash and cash equivalents	$517,391	$884,296
Investment in marketable securities	459,747	499,207
Total cash and cash equivalents and investment in marketable securities	977,138	1,383,503
Short term loans	6,048,880	5,362,060
Interest receivable on short term loans	67,370	79,674
Due from purchaser	23,881	23,881
Other current assets	25,978	8,813
Total current assets	7,143,247	6,857,931
Long term loans	---	200,000
Property and equipment, net	8,199	9,421
Security deposit	17,515	17,515
Investment in privately held company, at cost	100,000	100,000
Total assets	$7,268,961	$7,184,867

 

Liabilities and Shareholders’ Equity

Current liabilities:
Accounts payable and accrued expenses	$140,492	$130,375
Deferred origination fees	51,947	53,106
Income taxes payable	25,108	11,104
Total current liabilities	217,547	194,585
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; 3,405,190 issued and 3,325,760 outstanding	3,405	3,405
Additional paid-in capital	9,414,844	9,399,861
Treasury stock, at cost- 79,430 shares	(239,944)	(239,944)
Accumulated other comprehensive loss	(69,548)	(30,088)
Accumulated deficit	(2,057,343)	(2,142,952)
Total shareholders’ equity	7,051,414	6,990,282
Total liabilities and shareholders’ equity	$7,268,961	$7,184,867

 

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

 

Three Months Ended March 31
	2009	2008
Interest income from short and long term loans	$ 193,698	$ 147,461
Origination fees	38,279	17,825
Subscription revenues, net	---	57
Total Revenue	231,977	165,343
Operating costs and expenses:
Web development expenses	---	12,336
General and administrative expenses	133,263	160,422
Total operating costs and expenses	133,263	172,758
Income (loss) from operations	98,714	(7,415)
Interest and dividend income	9,224	24,749
Other income	---	39,000
Total other income	9,224	63,749
Income from continuing operations before income tax (expense) benefit	107,938	56,334
Income tax (expense) benefit	(22,329)	10,490
Income from continuing operations	85,609	66,824
Discontinued Operations:
Gain on the sale of the Jewish Directories (net of tax effect of 0 in 2008)	---	72,917
Income from discontinued operations	---	72,917
Net Income	$85,609	$139,741
Basic and Diluted net income per common share outstanding:
Continuing operations		$ 0.02
Discontinued operations		$ 0.02
Net income per common share		$ 0.04
Weighted average number of common shares outstanding
--Basic and Diluted	3,325,760	3,236,460

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
   Three Months ended March 31,

	2009	2008
Cash flows from operating activities:
Net Income	$85, 609	$139,741
Adjustments to reconcile net income to net cash provided by operating activities:
Gain on the sale of the Directories business	----	(72,917)
Depreciation and amortization	1,222	13,507
Non cash compensation expense	14,983	21,916
Changes in operating assets and liabilities net of effects of disposition:
Interest receivable on short term and long term loans	12,304	410
Other current and non current assets	(17,165)	(20,615)
Accounts payable and accrued expenses	10,117	(4,535)
Deferred origination fees	(1,159)	(4,597)
Income tax payable	14,004	----
Net cash provided by operating activities	119,915	72,910
Cash flows from investing activities:
Investment in auction rate securities	----	(1,175,000)
Short term and long term loans made	(1,785,529)	(956,597)
Collections received from short term loans	1,298,709	1,330,000
Cash received on sale of the Directories business	----	72,917
Net cash used in investing activities	(486,820)	(728,680)
Cash flows from financing activities:
Use of lines of credit	----	314,488
Net cash provided by financing activities	----	314,488
Net decrease in cash and cash equivalents	(366,905)	(341,282)
Cash and cash equivalents, beginning of period	884,296	621,724
Cash and cash equivalents, end of period	$517,391	$280,442
Supplemental Cash Flow Information:
Taxes paid during the period	$8,325	$5,767
Interest Paid during the period	$ ----	$ 942