Press Releases

Manhattan Bridge Capital, Inc. Reports First Quarter Results

Date: May 1, 2014Â Source: Manhattan Bridge Capital, Inc.Â Contact: Assaf Ran, CEOÂ Vanessa Kao, CFOÂ (516) 444-3400

LONG ISLAND, N.Y. May 1, 2014 / GLOBE Newswire / -- Manhattan Bridge Capital, Inc. (NASDAQ: LOAN)

Total revenues for the three month period ended March 31, 2014 were approximately $609,000 compared to approximately $534,000 for the three month period ended March 31, 2013, an increase of $75,000 or 14%. The increase in revenue represents an increase in lending operations. In 2014, approximately $507,000 of our revenue represents interest income on secured, commercial loans that we offer to small businesses compared to approximately $445,000 for the same period in 2013, and approximately $102,000 represents origination fees on such loans compared to approximately $90,000 for the same period in 2013. The loans are principally secured by collateral consisting of real estate and, generally, accompanied by personal guarantees from the principals of the businesses.

Income from operations for the three month period ended March 31, 2014 was approximately $316,000 compared to approximately $258,000 for the three month period ended March 31, 2013, an increase of $58,000 or 22.5%. This increase in income from operations is primarily attributable to an increase in revenue, offset by an increase in interest expense resulting from the Company’s use of a line of credit in order to increase its ability to make loans.

Net income for the three month period ended March 31, 2014 was $0.05 per basic and diluted share (based on 4.256 million shares and 4.287 million shares, respectively), or approximately $208,000 versus net income of $0.04 per basic and diluted share (based on 4.283 million shares and 4.296 million shares, respectively), or approximately $173,000 for the three month period ended March 31, 2013, an increase of approximately $35,000.

As of March 31, 2014 total stockholders' equity was approximately $9,062,000 compared to approximately $8,893,000 as of December 31, 2013, an increase of $169,000.

Assaf Ran, Chairman of the Board and CEO stated, “During the first quarter of 2014 we established that even in a strengthening economy with improved liquidity and available credit from banks – we can still grow our business responsibly and continue to enhance shareholders’ value and increase cash dividends.”

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

Assets	March 31, 2014 (unaudited)	December 31,2013 (audited)
Current assets:
Cash and cash equivalents	$931	$1,021,023
Short term loans receivable	12,517,000	10,697,950
Interest receivable on loans	188,348	171,483
Other current assets	34,292	18,540
Total current assets	12,740,571	11,908,996

Investment in real estate	146,821	146,821
Long term loans receivable	3,058,950	3,997,000
Other assets	17,500	---
Security deposit	6,637	6,637
Investment in privately held company	65,000	65,000
Total assets	$ 16,035,479	$ 16,124,454

Liabilities and Stockholders’ Equity

Current liabilities:
Short term loans	$1,319,465	$1,319,465
Line of credit	5,300,000	5,350,000
Accounts payable and accrued expenses	17,468	57,066
Deferred origination fees	123,512	132,017
Income taxes payable	213,224	373,219
Total liabilities, all current	6,973,669	7,231,767
Commitments
Stockholders’ equity:
Preferred shares - $.01 par value; 5,000,000 shares authorized; no shares issued	---	---
Common shares - $.001 par value; 25,000,000 authorized; 4,433,190 issued; 4,256,190 outstanding	4,433	4,433
Additional paid-in capital	9,748,664	9,745,249
Treasury stock, at cost – 177,000 shares	(369,335)	(369,335)
Accumulated deficit	(321,952)	(487,660)
Total stockholders’ equity	9,061,810	8,892,687
Total liabilities and stockholders’ equity	$16,035,479	$16,124,454

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

Three Months Ended March 31,
	2014	2013
Interest income from loans	$ 507,371	$ 444,779
Origination fees	101,539	89,582
Total revenue	608,910	534,361
Operating costs and expenses:
Interest and amortization of debt service costs	116,423	102,646
Referral fees	109	596
General and administrative expenses	175,996	172,867
Total operating costs and expenses	292,528	276,109

Income from operations	316,382	258,252

Other income	6,887	6,887

Income before income tax expense	323,269	265,139
Income tax expense	(115,000)	(92,000)
Net income	$ 208,269	$ 173,139

Basic and diluted net income per common share outstanding:
--Basic	$0.05	$0.04
--Diluted	$0.05	$0.04

Weighted average number of common shares outstanding:
--Basic	4,256,190	4,283,218
--Diluted	4,286,673	4,295,658

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

Three Months ended March 31,
	2014	2013
Cash flows from operating activities:
Net income	$208,269	$173,139
Adjustments to reconcile net income to net cash used in operating activities -
Amortization of deferred financing costs	---	13,104
Non cash compensation expense	3,416	3,416
Changes in operating assets and liabilities:
Interest receivable on loans	(16,865)	12,689
Other current and non current assets	(15,752)	(22,658)
Accounts payable and accrued expenses	(39,599)	(12,773)
Deferred origination fees	(8,504)	(6,209)
Income taxes payable	(159,995)	(182,120)
Net cash used in operating activities	(29,030)	(21,412)

Cash flows from investing activities:
Issuance of short term loans	(4,774,000)	(2,853,500)
Collections received from loans	3,893,000	3,943,866
Net cash (used in) provided by investing activities	(881,000)	1,090,366

Cash flows from financing activities:
Repayments of loans and line of credit, net	(50,000)	(1,040,000)
Purchase of treasury shares	---	(37,824)
Capital raising costs	(17,500)	---
Dividend paid	(42,562)	---
Proceeds from exercise of stock options	---	4,690
Net cash used in financing activities	(110,062)	(1,073,134)

Net decrease in cash and cash equivalents	(1,020,092)	(4,180)
Cash and cash equivalents, beginning of period	1,021,023	240,693
Cash and cash equivalents, end of period	$931	$236,513

Supplemental Cash Flow Information:
Taxes paid during the period	$274,995	$274,120
Interest paid during the period	$116,423	$89,541