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Manhattan Bridge Capital, Inc. Reports Third Quarter Results, 39.9% Increase in Revenue

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NEW YORK, Oct. 29, 2012 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that total revenues for the three month period ended September 30, 2012 were approximately $491,000 compared to approximately $351,000 for the three month period ended September 30, 2011, an increase of $140,000 or 39.9%. The increase in revenue represents an increase in lending operations. For the three month period ended September 30, 2012, $402,000 of our revenue represents interest income on the secured commercial loans that we offer to small businesses compared to $284,000 for the same period in 2011, and $89,000 represents origination fees on such loans compared to $67,000 for the same period in 2011.

Net income for the three month period ended September 30, 2012 was $0.04 per basic and diluted share (based on 4.324 million shares and 4.327 million shares, respectively), or $161,600, versus net income of $0.03 per basic and diluted share (based on 3.553 million shares and 3.561 million shares, respectively) or $97,062 for the three month period ended September 30, 2011, an increase of approximately $65,000. This increase in net income was mainly due to an increase in revenue and a decrease in general and administrative expenses, offset by an increase in interest and amortization of debt service costs and a decrease in other income.

As of September 30, 2012 total shareholders' equity was $8,461,000 compared to $8,291,000 as of June 30, 2012 and $8,088,000 as of December 31, 2011.

Total revenues for the nine month period ended September 30, 2012 were approximately $1,298,000 compared to approximately $1,031,000 for the nine month period ended September 30, 2011, an increase of $267,000, or 25.9%. The increase in revenue represents an increase in lending operations. Revenue of approximately $1,042,000 for the nine month period ended September 30, 2012, compared to approximately $842,000 for the same period in 2011, represents interest income on the secured commercial loans that we offer to small businesses, and $256,000 represents origination fees on such loans compared to $189,000 for the same period in 2011.

Net income for the nine month period ended September 30, 2012 was $0.08 per basic and diluted share (based on 4.324 million shares and 4.330 million shares, respectively), or $356,647, versus net income of $0.08 per basic share and diluted share (based on 3.401 million shares and 3.416 million shares, respectively) or $264,979 for the same period in 2011, an increase of approximately $92,000. This increase in net income was mainly due to an increase in revenue and a decrease in general and administrative expenses, offset by an increase in interest and amortization of debt service costs and a decrease in other income.

Assaf Ran, Chairman of the Board and CEO stated, "Once again we have demonstrated that our model works. This time, with the support of the line of credit from Sterling National Bank, we presented a very impressive increase in revenue and net earnings. As reported in the 10Q, to date we have not experienced any defaults on our loan portfolio. We look forward to continuing improvement our performance."

Manhattan Bridge Capital, Inc., provides short-term secured non-banking commercial loans to real estate investors (also known as hard money) to fund their acquisition and construction of properties located in New York Metropolitan area. 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.

 

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
     
  September 30, 2012 December 31, 2011
Assets (Unaudited) (audited)
     
Current assets:    
Cash and cash equivalents  $ 208,360 $ 221,905
Short term loans receivable 9,607,294 6,916,090
Interest receivable on loans 144,746 109,905
Other current assets 54,092 16,463
Total current assets 10,014,492 7,264,363
     
Investment in real estate 146,821 146,821
Long term loans receivable 3,080,866 2,498,262
Property and equipment, net  106 588
Security deposit 6,491 6,349
Investment in privately held company, at cost 100,000 100,000
Deferred financing costs 54,840 72,788
Total assets $ 13,403,616 $ 10,089,171
     
Liabilities and Shareholders' Equity    
Current liabilities:    
Line of credit and short term loans $ 4,109,465 $ 1,159,465
Accounts payable and accrued expenses 13,710 60,072
Deferred revenues 128,772 112,780
Income taxes payable 190,256 168,786
Total current liabilities 4,442,203 1,501,103
Long term liabilities:    
Senior secured notes 500,000 500,000
Total liabilities 4,942,203 2,001,103
     
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; 4,405,190 issued; 4,321,959 and 4,324,459 outstanding 4,405 4,405
Additional paid-in capital 9,675,584 9,656,280
Treasury stock, at cost - 83,231 and 80,731 shares (244,007) (241,400)
Accumulated deficit (974,569) (1,331,217)
Total shareholders' equity 8,461,413 8,088,068
Total liabilities and shareholders' equity $ 13,403,616 $ 10,089,171
 
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
         
  Three Months
Ended September 30,
Nine Months
Ended September 30,
  2012 2011 2012 2011
         
Interest income from loans $ 402,119 $ 283,821 $ 1,042,183 $ 842,222
Origination fees 89,191 67,220 255,514 189,229
         
Total Revenue  491,310  351,041  1,297,697  1,031,451
         
Operating costs and expenses:        
Interest and amortization of debt service costs 86,779 48,580 186,851 111,742
Referral fees 1,232 763 4,891 2,174
General and administrative expenses 183,586 195,226 547,769 566,146
Total operating costs and expenses 271,597 244,569 739,511 680,062
         
Income from operations 219,713 106,472 558,186 351,389
         
Other income  6,887  31,590  20,661  70,590
       
Income from operations before income tax expense 226,600 138,062 578,847 421,979
Income tax expense (65,000) (41,000) (222,200) (157,000)
         
Net Income $ 161,600 $ 97,062 $ 356,647 $ 264,979
         
Basic and diluted net income per common share outstanding:        
--Basic $ 0.04 $ 0.03 $ 0.08 $ 0.08
--Diluted $ 0.04 $ 0.03 $ 0.08 $ 0.08
         
Weighted average number of common shares outstanding        
--Basic  4,324,258 3,552,720 4,324,392 3,401,382
--Diluted 4,327,305 3,561,386 4,330,435 3,416,189
 
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
     
  Nine Months Ended September 30,
  2012 2011
Cash flows from operating activities:    
Net Income  $ 356,647 $ 264,979
Adjustments to reconcile net income to net cash provided by operating activities -    
Amortization of deferred financing costs 17,948 27,296
Depreciation  482 1,677
Non cash compensation expense 19,304 47,862
Changes in operating assets and liabilities:    
Interest receivable on loans (34,841) 28,298
Other current and non current assets (37,770) (7,067)
Accounts payable and accrued expenses (46,362) (39,929)
Deferred revenues 15,993 27,587
Income taxes payable 21,470 (46,727)
Net cash provided by operating activities 312,871 303,976
     
Cash flows from investing activities:    
Investment in real estate --- (294,321)
Issuance of short term loans (11,148,500) (6,504,036)
Collections received from loans 7,874,691 6,212,018
Net cash used in investing activities (3,273,809) (586,339)
     
Cash flows from financing activities:    
Proceeds from loans and line of credit, net 2,950,000 1,159,465
Purchase of treasury shares (2,607) ---
Net cash provided by financing activities 2,947,393 1,159,465
     
Net (decrease) increase in cash and cash equivalents (13,545) 877,102
Cash and cash equivalents, beginning of the year 221,905 386,023
Cash and cash equivalents, end of period $ 208,360 $ 1,263,125
     
Supplemental Cash Flow Information:    
Taxes paid during the period $ 200,730 $ 203,727
Interest paid during the period $ 152,879 $ 84,446
CONTACT: Assaf Ran, CEO Vanessa Kao, CFO (516) 444-3400
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