Press Releases
Manhattan Bridge Capital, Inc. Reports Results for Fiscal Year 2012
NEW YORK, N.Y. March 22, 2013 / GLOBE Newswire / -- Manhattan Bridge Capital, Inc. (NASDAQ: LOAN)
Manhattan Bridge Capital, Inc. announced today that total revenue for the year ended December 31, 2012 was $1,816,000 compared to $1,400,000 for the year ended December 31, 2011, an increase of $416,000 or 29.7%. The increase in revenue represents an increase in lending operations. In 2012, $1,476,000 of the Company’s revenue represents interest income on secured, commercial loans that the Company offers to small businesses compared to $1,142,000 in 2011, and $340,000 represents origination fees on such loans compared to $259,000 in 2011.
Total operating costs and expenses for the year ended December 31, 2012 were $1,151,000 compared to $1,031,000 for the year ended December 31, 2011, an increase of $120,000 or 11.6%. This increase in operating costs and expenses is primarily attributable to an increase in interest and amortization of debt service costs of approximately $124,000, which is primarily attributable to the Company’s receipt of short term loans and a line of credit in order to increase its ability to make loans.
Net income for the year ended December 31, 2012 was $0.09 per basic share and per diluted share (based on 4.320 million shares and 4.326 million shares, respectively), or $389,000, versus $0.07 per basic share and per diluted share (based on 3.634 million shares and 3.646 million shares, respectively), or $257,000 for the year ended December 31, 2011. This increase is primarily attributable to an increase in revenue, offset by increases in interest and amortization of debt service costs and in income tax expense.
As of December 31, 2012 total shareholders' equity was $8,479,000 compared to $8,088,000 as of December 31, 2011, an increase of $391,000.
Assaf Ran, Chairman of the Board and CEO, stated, “Our performance during the year 2012 reflects consistency of responsible growth in revenue as we are firmly keeping costs low in order to enhance net earnings. Once again, we have successfully avoided defaults.”
“In 2012 we also became bankable, and established a line of credit with Sterling National Bank. This is an outstanding achievement, in times when lenders are usually not able to receive conventional bank financing.” added Mr. Ran.
Manhattan Bridge Capital, Inc., offers short-term, secured, non-banking loans to real estate investors (also known as hard money) to fund their acquisition and construction of properties located in the New York Metropolitan area. The loans are principally secured by collateral consisting of real estate and, generally, accompanied by personal guarantees from the principals of the 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.
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MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
December 31, 2012 and 2011
Assets |
2012 |
2011 |
Current assets: |
|
|
Cash and cash equivalents |
$240,693 |
$221,905 |
Short term loans receivable |
11,022,866 |
6,916,090 |
Interest receivable on loans |
160,342 |
109,905 |
Other current assets |
18,903 |
16,463 |
Total current assets |
11,442,804 |
7,264,363 |
|
|
|
Investment in real estate |
146,821 |
146,821 |
Long term loans receivable |
2,601,500 |
2,498,262 |
Property and equipment, net |
0 |
588 |
Security deposit |
6,491 |
6,349 |
Investment in privately held company, at cost |
100,000 |
100,000 |
Deferred financing costs |
41,735 |
72,788 |
Total assets |
$14,339,351 |
$10,089,171 |
Liabilities and Stockholders’ Equity
Current liabilities: |
|
|
Short term loans |
$1,399,465 |
$1,159,465 |
Line of credit |
3,500,000 |
--- |
Senior secured notes |
500,000 |
--- |
Accounts payable and accrued expenses |
70,403 |
60,072 |
Deferred origination fees |
122,242 |
112,780 |
Income taxes payable |
268,256 |
168,786 |
Total current liabilities |
5,860,366 |
1,501,103 |
Long term liabilities: |
|
|
Senior secured notes |
--- |
500,000 |
Total liabilities |
5,860,366 |
2,001,103 |
Commitments and contingencies |
|
|
Stockholders’ 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; 4,298,059 and 4,324,459 outstanding |
4,405 |
4,405 |
Additional paid-in capital |
9,687,159 |
9,656,280 |
Treasury stock, at cost - 107,131 and 80,731 shares |
(269,972) |
(241,400) |
Accumulated deficit |
(942,607) |
(1,331,217) |
Total stockholders’ equity |
8,478,985 |
8,088,068 |
Total liabilities and stockholders’ equity |
$14,339,351 |
$10,089,171 |
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2012 and 2011
|
2012 |
2011 |
Interest income from loans |
$1,475,800 |
$1,141,531 |
Origination fees |
339,767 |
258,917 |
Total Revenue |
1,815,567 |
1,400,448 |
Operating costs and expenses: |
|
|
Interest and amortization of debt service costs |
280,654 |
156,769 |
Referral fees |
6,133 |
7,897 |
General and administrative expenses |
864,398 |
866,705 |
Total operating costs and expenses |
1,151,185 |
1,031,371 |
|
|
|
Income from operations |
664,382 |
369,077 |
|
|
|
Other income |
27,548 |
79,329 |
Income before income tax expense |
691,930 |
448,406 |
Income tax expense |
(303,320) |
(191,882) |
Net income |
$388,610 |
$256,524 |
|
|
|
Basic and diluted net income per common share outstanding: |
|
|
--Basic |
$0.09 |
$0.07 |
--Diluted |
$0.09 |
$0.07 |
Weighted average number of common shares outstanding |
|
|
--Basic |
4,320,050 |
3,634,048 |
--Diluted |
4,326,329 |
3,646,074 |
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2012 and 2011
|
Common Stock | Additional Paid-in
Capital |
Treasury Stock |
Accumulated Deficit |
Totals |
||
|
|
|
|
|
|
||
|
Shares |
Amount |
|
Shares |
Cost |
|
|
Balance, January 1, 2011 |
3,405,190 |
$3,405 |
$9,588,849 |
80,731 |
$(241,400) |
$(1,587,741) |
$7,763,113 |
Non cash compensation |
|
|
68,431 |
|
|
|
68,431 |
Grant of restricted shares |
1,000,000 |
1,000 |
(1,000) |
|
|
|
|
Net income for the year ended December 31, 2011 |
|
|
|
|
|
256,524 |
256,524 |
Balance, December 31, 2011 |
4,405,190 |
4,405 |
9,656,280 |
80,731 |
(241,400) |
(1,331,217) |
8,088,068 |
Non cash compensation |
|
|
30,879 |
|
|
|
30,879 |
Purchase of treasury shares |
|
|
|
26,400 |
(28,572) |
|
(28,572) |
Net income for the year ended December 31, 2012 |
|
|
|
|
|
388,610 |
388,610 |
Balance, December 31, 2012 |
4,405,190 |
$4,405 |
$9,687,159 |
107,131 |
$(269,972) |
$(942,607) |
$8,478,985 |
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2012 and 2011
|
2012 |
2011 |
Cash flows from operating activities: Net income |
$388,610 |
$256,524 |
Adjustments to reconcile net income to net cash provided by operating activities - |
|
|
Amortization of deferred financing costs |
47,078 |
36,395 |
Depreciation |
588 |
1,837 |
Non cash compensation expense |
30,879 |
68,431 |
Changes in operating assets and liabilities |
|
|
Interest receivable on loans |
(50,437) |
(18,312) |
Other current and non current assets |
(2,582) |
8,130 |
Accounts payable and accrued expenses |
10,331 |
3,667 |
Deferred origination fees |
9,462 |
36,352 |
Income taxes payable |
99,470 |
(11,727) |
Net cash provided by operating activities |
533,399 |
381,297 |
|
|
|
Cash flows from investing activities: |
|
|
Investment in real estate (net of proceeds of $528,179 from partial exercises of options) |
--- |
(146,821) |
Issuance of short term loans |
(15,173,500) |
(8,512,537) |
Collections received from loans |
10,963,486 |
7,254,478 |
Net cash used in investing activities |
(4,210,014) |
(1,404,880) |
Cash flows from financing activities: |
|
|
Proceeds from loans and line of credit, net |
3,740,000 |
859,465 |
Purchase of treasury shares |
(28,572) |
--- |
Deferred financing costs incurred |
(16,025) |
--- |
Net cash provided by financing activities |
3,695,403 |
859,465 |
|
|
|
Net increase (decrease) in cash and cash equivalents |
18,788 |
(164,118) |
|
|
|
Cash and cash equivalents, beginning of year |
221,905 |
386,023 |
|
|
|
Cash and cash equivalents, end of year |
$240,693 |
$221,905 |
|
|
|
Supplemental Cash Flow Information: |
|
|
Taxes paid during the year |
$203,850 |
$203,727 |
Interest paid during the year |
$234,835 |
$120,375 |