NEW YORK, August 3, 2009 / GLOBE Newswire / -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN - news)

 

Manhattan Bridge Capital, Inc. announced today that total revenue for the three month period ended June 30, 2009 was approximately $250,000 compared to approximately $179,000 for the three month period ended June 30, 2008 an increase of $71,000 or 40%. For the three month period ended June 30, 2009, $204,000 of the Company's revenue represented interest income on the short term secured commercial loans that the Company offers to small businesses compared to $164,000 for the same period in 2008, and $46,000 represents origination fees on such loans compared to $15,000 for the same period in 2008.

 

Income from operations for the three month period ended June 30, 2009 was approximately $78,000 compared to approximately $18,000 for the same period ended June 30, 2008, an increase of $60,000. This increase in income from operations resulted mainly from increased revenue from short term secured commercial loans and a decrease in general and administrative expense.

 

Net income for the three month period ended June 30, 2009 was $0.02 per basic and diluted share (based on 3.3 million shares), or $60,001, versus net income of $0.02 per basic and diluted share (based on 3.2 million shares) or $52,173 for the three month period ended June 30, 2008. This increase in net income was mainly due to an increase in income from operations, offset by an increase in income tax expense and a decrease in other income.

 

Total revenue for the six month period ended June 30, 2009 was approximately $482,000 compared to approximately $344,000 for the six month period ended June 30, 2008 an increase of $138,000 or 40%. For the six month period ended June 30, 2009, $398,000 of the Company's revenue represented interest income on the short term secured commercial loans that the Company offers to small businesses compared to $311,000 for the same period in 2008, and $84,000 represents origination fees on such loans compared to $33,000 for the same period in 2008.
    

Net income for the six month period ended June 30, 2009 was $0.04 per basic and diluted share (based on 3.3 million shares), or $145,610, versus net income of $0.06 per basic and diluted share (based on 3.2 million shares) or $191,914 for the same period in 2008, a decrease of approximately $46,000. This decrease in net income was mainly due to income from discontinued operations of approximately $73,000 that was recorded in the six month period ended June 30, 2008, an increase in income tax expense of approximately $69,000 and a decrease in other income of approximately $70,000, offset by an increase in income from operations of $166,000.

As of June 30, 2009, the Company reported approximately $6,896,000 of outstanding short term loans and $456,000 of cash and cash equivalents and marketable securities. 
As of June 30, 2009 total shareholders' equity was $7,217,000 compared to $6,990,000 as of December 31, 2008, an increase of $227,000.

 

Assaf Ran, Chairman of the Board and CEO stated, "The second quarter results represent a solid pattern of growth that has been taking place for more than two years." “With the recent board decision to allow management to increase the loans portfolio up to $14 million, I’m confident in our ability to maintain this trend,” added Mr. Ran

 

Manhattan Bridge Capital, Inc., provides short term, secured, non-banking, commercial loans to small businesses. 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 SHEET
Assets	June 30, 2009 (Unaudited)	December 31,2008 (Audited)
Current assets:
Cash and cash equivalents	$96,790	$884,296
Investment in marketable securities	359,251	499,207
Total cash and cash equivalents and investment in marketable securities at fair value	456,041	1,383,503
Short term loans	6,896,177	5,362,060
Interest receivable on short term loans	91,696	79,674
Due from purchaser	23,881	23,881
Other current assets	36,659	8,813
Total current assets	7,504,454	6,857,931
Long term loans	---	200,000
Property and equipment, net	6,976	9,421
Security deposit	17,515	17,515
Investment in privately held company, at cost	100,000	100,000
Total assets	$ 7,628,945	$ 7,184,867

 

Liabilities and Shareholders’ Equity

 

Current liabilities:
Line of Credit	$ 158,028	$ ---
Accounts payable and accrued expenses	94,058	130,375
Deferred origination fees	97,965	53,106
Income taxes payable	62,182	11,104
Total current liabilities	412,233	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	9,445,520	9,399,861
Treasury stock, at cost- 79,430 shares	(239,944)	(239,944)
Accumulated other comprehensive income (loss)	5,073	(30,088)
Accumulated deficit	(1,997,342)	(2,142,952)
Total shareholders’ equity	7,216,712	6,990,282
Total liabilities and shareholders’ equity	$ 7,628,945	$ 7,184,867

 

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
	Three Months Ended June 30,		Six Months  Ended June 30,
	2009	2008	2009	2008
Interest income from short term loans	$ 203,917	$ 163,924	$ 397,615	$ 311,385
Origination fees	45,666	14,808	83,945	32,633
Subscription revenues, net	----	43	----	100
Total Revenue	249,583	178,775	481,560	344,118
Operating costs and expenses:
Web development expenses	----	12,336	----	24,672
General and administrative expenses	171,840	148,759	305,103	309,182
Total operating costs and expenses	171,840	161,095	305,103	333,854
Income from operations	77,743	17,680	176,457	10,264
Interest and dividend income	6,614	16,371	15,838	41,122
Realized (loss) gain on marketable securities	(5,940)	18,122	(5,940)	18,122
Realized gain on marketable securities that were previously marked down	18,658	----	18,658	----
Other income	----	----	----	39,000
Total other income	19,332	34,493	28,556	98,244
Income from continuing operations before income tax (expense) benefit	97,075	52,173	205,013	108,508
Income tax (expense) benefit	(37,074)	----	(59,403)	10,489
Income from continuing operations	60,001	52,173	145,610	118,997
Discontinued Operations:
Gain on the sale of the Directories business (net of tax effect of 0 in 2008)	----	----	----	72,917
Income from discontinued operations	----	----	----	72,917
Net Income	$60,001	$52,173	$145,610	$191,914
Basic net income per common share outstanding:
Continuing operations	$0.02	$0.02	$0.04	$0.04
Discontinued operations	----	----	----	0.02
Net income per common share-Basic	$0.02	$0.02	$0.04	$0.06
Diluted net income per common share outstanding:
Continuing operations	$0.02	$0.02	$0.04	$0.04
Discontinued operations	----	----	----	0.02
Net income per common share- Diluted	$0.02	$0.02	$0.04	$0.06
Weighted average number of common shares outstanding
--Basic	3,325,760	3,236,460	3,325,760	3,236,460
--Diluted	3,328,942	3,237,406	3,325,980	3,238,215

 

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) Six Months Ended June 30,
	2009	2008
Cash flows from operating activities:
Net income	$145,610	$191,914
Adjustments to reconcile net income to net cash provided by operating activities:
Gain on the sale of  Jewish Directories	----	(72,917)
Depreciation and amortization	2,445	27,065
Non cash compensation expense	45,659	52,688
Realized loss (gain) on sale of marketable securities	5,940	(18,122)
Realized gain on marketable securities that were previously marked down	(18,658)	----
Changes in operating assets and liabilities:
Interest receivable on short term loans	(12,022)	(12,062)
Due from purchaser	----	20,000
Other current and non current assets	(27,846)	(21,990)
Accounts payable and accrued expenses	(36,316)	(40,918)
Deferred origination fees	44,859	15,299
Income tax payable	51,078	----
Net cash provided by operating activities	200,749	140,957
Cash flows from investing activities:
Proceeds from sale of marketable securities, auction rate securities and annuity contract	187,834	1,670,388
Investment in marketable securities, auction rate securities and annuity contract	----	(1,175,000)
Issuance of short term and long term loans	(4,058,604)	(2,221,123)
Collection received from short term loans	2,724,487	2,000,149
Cash received on sale of Jewish Directories	----	97,222
Net cash (used in) provided by investing activities	(1,146,283)	371,636
Cash flows from financing activities:
Use of line of credit	158,028	----
Net cash provided by financing activities	158,028	----
Net (decrease) increase in cash	(787,506)	512,593
Cash and cash equivalents, beginning of the year	884,296	621,724
Cash and cash equivalents, end of period	$96,790	$1,134,317
Supplemental Cash Flow Information:
Taxes paid during the period	$ 8,325	$5,766
Interest paid during the period	$ 72	$4,356