NEW YORK, Aug. 3, 2010 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq:LOAN) announced today that total revenue for the three month period ended June 30, 2010 was approximately $315,000 compared to approximately $250,000 for the three month period ended June 30, 2009 an increase of 26%. For the three month period ended June 30, 2010, $260,000 of the Company's revenue represented interest income on the short term secured commercial loans that the Company offers to small businesses compared to $204,000 for the same period in 2009, and $55,000 represents origination fees on such loans compared to $46,000 for the same period in 2009. The increase in revenue represents an increase in lending operations.

Income from operations for the three month period ended June 30, 2010 was approximately $123,000 compared to approximately $78,000 for the same period ended June 30, 2009, an increase of 58%. This increase in income from operations resulted mainly from an increase in revenue from short term secured commercial loans of $65,000, offset by an increase in operating costs and expenses of $20,000.

Net income for the three month period ended June 30, 2010 was $0.05 per basic and diluted share (based on 3.324 million shares and 3.370 million shares, respectively), or $154,941, versus net income of $0.02 per basic and diluted share (based on 3.3 million shares) or $60,001 for the three month period ended June 30, 2009. This increase in net income was mainly due to an increase in income from operations and other income, offset by an increase in income tax expense and in operating costs and expenses.

Total revenue for the six month period ended June 30, 2010 was approximately $606,000 compared to approximately $482,000 for the six month period ended June 30, 2009 an increase of 26%. For the six month period ended June 30, 2010, $496,000 of the Company's revenue represented interest income on the short term secured commercial loans that the Company offers to small businesses compared to $398,000 for the same period in 2009, and $110,000 represents origination fees on such loans compared to $84,000 for the same period in 2009.

Net income for the six month period ended June 30, 2010 was $0.09 per basic and diluted share (based on 3.324 million shares and 3.368 million shares, respectively), or $295,533, versus net income of $0.04 per basic and diluted share (based on 3.3 million shares) or $145,610 for the same period in 2009, an increase of approximately $150,000. This increase in net income is mainly due to increases in revenue and other income offset by increases in operating costs and expenses and income tax expense.

As of June 30, 2010 total shareholders' equity was $7,701,000 compared to $7,455,000 as of December 31, 2009, an increase of $246,000.

Assaf Ran, Chairman of the Board and CEO stated, "This quarter financials results reinforces our previous analysis and announcements that our business model works. As we have maintained growth and increased net earnings we have avoided problematic situations in our portfolio."

"During the second quarter we have achieved certain goals in relations to leveraging as well as to work with participators in order to secure continued growth in the future." added Mr. Ran.

Manhattan Bridge Capital, Inc., provides short term, secured, non-banking, commercial loans to small 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.
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET
     
  June 30, 2010 December 31, 2009
Assets (Unaudited)   (Audited)  
Current assets:    
Cash and cash equivalents  $ 278,415 $ 707,449 
Investment in marketable securities -- 404,268
Total cash and cash equivalents and investment in marketable securities 278,415 1,111,717
     
Short term loans 7,706,700 6,476,621
Interest receivable on short term loans 69,072 60,207
Other current assets 111,719 26,568
Total current assets 8,165,906 7,675,113
     
Property and equipment, net 3,942 5,458
Security deposit 17,515 17,515
Investment in privately held company, at cost 100,000 100,000
   Total assets   $ 8,287,363   $ 7,798,086
     
Liabilities and Shareholders' Equity    
Current liabilities:    
Lines of credit $ 300,000 $ --
Accounts payable and accrued expenses 40,919 77,768
Deferred origination fees 56,892 102,751
Income taxes payable 188,742 162,182
Total current liabilities 586,553 342,701
  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 3,324,459 outstanding   3,405   3,405
Additional paid-in capital 9,550,477 9,476,762
Treasury stock, at cost- 80,731 shares (241,400)  (241,400)
Accumulated other comprehensive income -- 123,823
Accumulated deficit (1,611,672) (1,907,205)
Total shareholders' equity 7,700,810 7,455,385
  Total liabilities and shareholders' equity   $ 8,287,363   $ 7,798,086
 
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
         
  Three Months Ended June 30, Six Months Ended June 30,
  2010 2009 2010 2009
  Interest income from short term loans   $ 259,661   $ 203,917    $ 495,864    $ 397,615
Origination fees   55,368  45,666 110,339 83,945
Total Revenue  315,029   249,583   606,203  481,560
         
Operating costs and expenses:        
Interest expense on lines of credit used 9,593 -- 14,727 --
General and administrative expenses   182,451 171,840 324,527 305,103
Total operating costs and expenses 192,044  171,840 339,254  305,103
Income from operations     122,985     77,743  266,947  176,457
         
Interest and dividend income  824 6,614 4,167 15,838
Realized (loss) gain on marketable securities -- (5,940) -- (5,940)
Realized gain on marketable securities that were previously marked down      96,132  18,658 151,419 18,658
Total other income   96,956   19,332   155,586   28,556
Income from operations before income tax expense  219,941 97,075 422,533 205,013
Income tax expense (65,000)  (37,074)  (127,000) (59,403)
Net Income   $ 154,941  $ 60,001  $ 295,533  $ 145,610
         
Basic and diluted net income per common share outstanding:        
--Basic  $ 0.05  $ 0.02  $ 0.09  $ 0.04
--Diluted  $ 0.05  $ 0.02  $ 0.09  $ 0.04
         
Weighted average number of common shares outstanding        
--Basic  3,324,459  3,325,760  3,324,459  3,325,760
--Diluted  3,370,329  3,328,942  3,368,096  3,325,980
 
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
   
  Six Months Ended June 30,
   2010  2009
Cash flows from operating activities:    
Net Income  $ 295,533  $ 145,610
Adjustments to reconcile net income to net cash provided by operating activities -    
Depreciation 1,516 2,445
Non cash compensation expense 45,754 45,659
Realized loss on sale of marketable securities -- 5,940
Realized gain on sale of marketable securities that were previously marked down (151,419) (18,658)
Changes in operating assets and liabilities:    
Interest receivable on short term loans (8,865) (12,022)
Other current and non current assets (85,151) (27,846)
Accounts payable and accrued expenses (8,888) (36,316)
Deferred origination fees (45,859) 44,859
Income tax payable 26,560 51,078
Net cash provided by operating activities 69,181 200,749
     
Cash flows from investing activities:    
Proceeds from sale of marketable securities, auction rate securities and annuity contract 431,864 187,834
Issuance of short term and long term loans (2,936,500) (4,058,604)
Collection received from short term loans 1,706,421 2,724,487
Net cash used in investing activities  (798,215) (1,146,283)
     
Cash flows from financing activities:    
Use of lines of credit 300,000 158,028
Net cash provided by financing activities 300,000 158,028
     
Net (decrease) increase in cash  (429,034)  (787,506)
Cash and cash equivalents, beginning of the year 707,449 884,296
Cash and cash equivalents, end of period  $ 278,415  $ 96,790
     
Supplemental Cash Flow Information:    
Forgiveness of debt $  27,961 $  --
Taxes paid during the period $  100,440 $  8,325
Non-cash  investing and financing activities    
Interest paid during the period $  14,727 $  72
CONTACT:  Manhattan Bridge Capital, Inc.          Assaf Ran, CEO          Inbar Evron-Yogev, CFO          (212) 489-6800

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