NEW YORK, Oct. 27, 2010 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq:LOAN) announced today that total revenues for the three month period ended September 30, 2010 were approximately $306,000 compared to approximately $289,000 for the three month period ended September 30, 2009, an increase of $17,000 or 5.9%. The increase in revenue represents an increase in lending operations. For the three month period ended September 30, 2010, $256,000 of our revenue represents interest income on the short term secured commercial loans that we offer to small businesses compared to $235,000 for the same period in 2009, and $51,000 represents origination fees on such loans compared to $54,000 for the same period in 2009.

Net income for the three month period ended September 30, 2010 was $0.02 per basic and diluted share (based on 3.324 million shares and 3.380 million shares, respectively), or $56,854, versus net income of $0.03 per basic and diluted share (based on 3.326 million shares and 3.334 million shares, respectively) or $83,593 for the three month period ended September 30, 2009. This decrease in net income was mainly due to an increase in operating costs and expenses primarily due to increase in payroll expenses and an increase in income tax expense, offset by an increase in revenues.

As of September 30, 2010 total shareholders' equity was $7,771,000 compared to $7,701,000 as of June 30, 2010 and $7,455,000 as of December 31, 2009.

Total revenues for the nine month period ended September 30, 2010 were approximately $913,000 compared to approximately $770,000 for the nine month period ended September 30, 2009, an increase of $143,000, or 18.6%. The increase in revenue represents an increase in lending operations. Revenue of approximately $752,000 for the nine month period ended September 30, 2010, compared to approximately $633,000 for the same period in 2009, represents interest income on the short term secured commercial loans that we offer to small businesses, and $161,000 represents origination fees on such loans compared to $137,000 for the same period in 2009.

Net income for the nine month period ended September 30, 2010 was $0.11 per basic and $0.10 per diluted share (based on 3.324 million shares and 3.372 million shares, respectively), or $352,387, versus net income of $0.07 per basic and diluted share (based on 3.326 million shares and 3.327 million shares, respectively) or $229,203 for the same period in 2009, an increase of approximately $123,000. 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.

Assaf Ran, Chairman of the Board and CEO, stated, "During the third quarter, the company experienced an unusual rate of pay offs (principal returns). While this is a supportive sign that our loan approval system is working fine, it caused a temporary slow down in our growth pace. We have increased our sales and marketing efforts but never compromised our strict underwriting standards."

"In addition, the company is making preparations to relocate its headquarters outside of NYC to Great Neck, NY, in order to reduce its tax liability," added Mr. Ran.

Manhattan Bridge Capital, Inc. offers short-term loans to real estate investors (also known as hard money) to fund their acquisition of properties located in New York Metro area. Currently, our customers' purchases are often from banks or distressed sellers. Substantially all of our loans are secured by first mortgages on the acquired real estate. In addition, the principals of our corporate borrowers personally guaranty the loans and, as additional collateral and protection, pledge the borrower's stock. 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, 2010 December 31, 2009
   (Unaudited) (Audited)
Assets    
Current assets:    
Cash and cash equivalents  $ 959,918 $ 707,449
Investment in marketable securities --- 404,268
Total cash and cash equivalents and investment in marketable securities at fair value 959,918 1,111,717
     
Short term loans 7,066,200 6,476,621
Interest receivable on short term loans 69,314 60,207
Other current assets 73,328 26,568
Total current assets 8,168,760 7,675,113
     
Property and equipment, net  3,184 5,458
Security deposit 17,515 17,515
Investment in privately held company, at cost 100,000 100,000
Total assets $ 8,289,459 $ 7,798,086
     
Liabilities and Shareholders' Equity    
Current liabilities:    
Lines of credit $ 300,000 $ ---
Accounts payable and accrued expenses 32,310 77,768
Deferred origination fees 40,626 102,751
Income taxes payable 145,513 162,182
 Total current liabilities 518,449 342,701
     
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 9,563,823 9,476,762
Treasury stock, at cost - 80,731 shares (241,400) (241,400)
Accumulated other comprehensive income  --- 123,823
Accumulated deficit (1,554,818) (1,907,205)
Total shareholders' equity 7,771,010 7,455,385
 Total liabilities and shareholders' equity $ 8,289,459 $ 7,798,086
     

 

 

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES    
CONSOLIDATED STATEMENTS OF OPERATIONS    
(unaudited)    
     
  Three Months Nine Months
  Ended September 30, Ended September 30,
         
  2010 2009 2010 2009
         
Interest income from short term loans $ 255,869 $ 235,249 $ 751,733 $ 632,864
Origination fees 50,593 53,359 160,932 137,304
 Total Revenue 306,462 288,608 912,665 770,168
         
Operating costs and expenses:        
Interest expense on lines of credit used 6,900 --- 21,627 ---
General and administrative expenses 182,855 148,164 507,382 453,267
Total operating costs and expenses 189,755 148,164 529,009 453,267
Income from operations 116,707 140,444 383,656 316,901
         
Interest and dividend income 177 3,581 4,342 19,419
Realized loss on marketable securities --- --- --- -5,940
Realized gain (loss) on marketable securities that were previously marked down  --- (8,004) 151,419 10,654
 Total other income (expense) 177 (4,423) 155,761 24,133
Income from operations before income tax expense  116,884 136,021 539,417 341,034
Income tax expense (60,030) (52,428) (187,030) (111,831)
Net Income  $ 56,854 $ 83,593 $ 352,387 $ 229,203
         
Basic and diluted net income per common share outstanding:        
--Basic $ 0.02 $ 0.03 $ 0.11 $ 0.07
--Diluted $ 0.02 $ 0.03 $ 0.10 $ 0.07
         
Weighted average number of common shares outstanding        
--Basic  3,324,459 3,325,760 3,324,459 3,325,760
--Diluted 3,380,406 3,333,628 3,371,971 3,327,364

 

 

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
     
  Nine Months Ended September 30,
  2010 2009
Cash flows from operating activities:    
Net income  $ 352,387 $ 229,203
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 2,274 3,205
Non cash compensation expense 59,099 61,280
Realized loss on sale of marketable securities --- 5,940
Realized gain on marketable securities that were previously marked down (151,419) (10,654)
Changes in operating assets and liabilities:    
Interest receivable on short term loans (9,107) (39,523)
Due from purchaser --- 23,881
Other current and non current assets (46,760) (19,630)
Accounts payable and accrued expenses (17,496) (33,272)
Deferred origination fees (62,125) 46,530
Income taxes payable (16,669) 81,078
Net cash provided by operating activities 110,184 348,038
     
Cash flows from investing activities:    
Proceeds from sale of marketable securities, auction rate securities and annuity contract 431,864 253,525
Issuance of short term and long term loans (3,912,500) (4,988,030)
Collection received from short term loans 3,322,921 3,585,463
Net cash used in investing activities (157,715) (1,149,042)
     
Cash flows from financing activities:    
Use of line of credit 300,000 156,582
Net cash provided by financing activities 300,000 156,582
     
Net increase (decrease) in cash 252,469 (644,422)
Cash and cash equivalents, beginning of the year 707,449 884,296
Cash and cash equivalents, end of period $ 959,918 $ 239,874
     
Supplemental Cash Flow Information:    
Taxes paid during the period $ 203,669 $ 30,753
Interest paid during the period $ 21,627 $ 746
Non-cash  investing and financing activities:    
Forgiveness of debt $ 27,961 $ ---

 

 
CONTACT:  Manhattan Bridge Capital, Inc.           Assaf Ran, CEO          Inbar Evron-Yogev, CFO          (212) 489-6800

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