NEW YORK, May 6, 2010 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq:LOAN) announced today that total revenues for the three month period ended March 31, 2010 were approximately $291,000 compared to approximately $232,000 for the three month period ended March 31, 2009 an increase of $59,000 or 25%. In 2010, $236,000 of the Company's revenue represented interest income on the short term secured commercial loans that the Company offers to small businesses compared to $194,000 for the same period in 2009, and $55,000 represents origination fees on such loans compared to $38,000 for the same period in 2009. The increase in revenue represents an increase in lending operations.
Income from operations for the period ended March 31, 2010 was approximately $144,000 compared to approximately $99,000 for the three month period ended March 31, 2009, an increase of $45,000 or 45%. This increase in income from operations resulted mainly from an increase in revenue from short term secured commercial loans of $59,000, offset by an increase in operating costs and expenses of $14,000.
Net income for the three month period ended March 31, 2010 was $0.04 per basic and diluted share (based on 3.324 million shares and 3,365 million shares, respectively ), or $140,592 versus net income of 0.03 per basic and diluted share (based on 3.326 million shares) or $85,609 for the period ended March 31, 2009, an increase of approximately $55,000. 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 March 31, 2010 total shareholders' equity was $7,582,000 compared to $7,455,000 as of December 31, 2009, an increase of $127,000.
Assaf Ran, Chairman of the Board and CEO stated, "I am pleased with the continued growth pattern that started three years ago. It seems that our model and disciplined expectations are passing the reality test. I am optimistic about our future growth as I feel that our market is reviving."
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 SHEETS | ||
| March 31, 2010 | December 31, 2009 | |
| Assets | (unaudited) | (audited) |
| Current assets: | ||
| Cash and cash equivalents | $ 111,508 | $ 707,449 |
| Investment in marketable securities | 172,803 | 404,268 |
|
Total cash and cash equivalents and investment in marketable securities |
284,311 |
1,111,717 |
| Short term loans | 7,881,700 | 6,476,621 |
| Interest receivable on short term loans | 60,001 | 60,207 |
| Other current assets | 16,768 | 26,568 |
| Total current assets | 8,242,780 | 7,675,113 |
| Property and equipment, net | 4,700 | 5,458 |
| Security deposit | 17,515 | 17,515 |
| Investment in privately held company, at cost | 100,000 | 100,000 |
| Total assets | $ 8,364,995 | $ 7,798,086 |
| Liabilities and Shareholders' Equity | ||
| Current liabilities: | ||
| Lines of credit | $ 458,434 | $ -- |
| Accounts payable and accrued expenses | 110,009 | $ 77,768 |
| Deferred origination fees | 90,534 | 102,751 |
| Income taxes payable | 123,742 | 162,182 |
| Total liabilities, all current | 782,719 | 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 | 9,486,370 | 9,476,762 |
| Treasury stock, at cost- 80,731 shares | (241,400) | (241,400) |
| Accumulated other comprehensive income | 100,514 | 123,823 |
| Accumulated deficit | (1,766,613) | (1,907,205) |
| Total shareholders' equity | 7,582,276 | 7,455,385 |
| Total liabilities and shareholders' equity | $ 8,364,995 | $ 7,798,086 |
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES | ||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||
| (unaudited) | ||
| Three Months Ended March 31, | ||
| 2010 | 2009 | |
| Interest income from short term loans | $236,203 | $193,698 |
| Origination fees | 54,971 | 38,279 |
| Total Revenue | 291,174 | 231,977 |
| Operating costs and expenses: | ||
| Interest expense on lines of credit used | 5,134 | -- |
| General and administrative expenses | 142,078 | 133,263 |
| Total operating costs and expenses | 147,212 | 133,263 |
| Income from operations | 143,962 | 98,714 |
| Interest and dividend income | 3,344 | 9,224 |
|
Realized gain on marketable securities that were previously marked down |
55,286 | -- |
| Total other income | 58,630 | 9,224 |
| Income from operations before income tax expense | 202,592 | 107,938 |
| Income tax expense | (62,000) | (22,329) |
| Net Income | $140,592 | $85,609 |
|
Basic and diluted net income per common share outstanding: |
||
| --Basic | $0.04 | $0.03 |
| --Diluted | $0.04 | $0.03 |
|
Weighted average number of common shares outstanding: |
||
| --Basic | 3,324,459 | 3,325,760 |
| --Diluted | 3,365,239 | 3,325,760 |
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES | ||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| (unaudited) | ||
| Three Months ended March 31, | ||
| 2010 | 2009 | |
| Cash flows from operating activities: | ||
| Net Income | $ 140,592 | $ 85, 609 |
|
Adjustments to reconcile net income to net cash provided by operating activities -- |
||
| Depreciation | 758 | 1,222 |
| Non cash compensation expense | 9,608 | 14,983 |
|
Realized gain on sale of marketable securities that were previously marked down |
(55,286) | -- |
| Changes in operating assets and liabilities: | ||
| Interest receivable on short and long term commercial loans | 206 | 12,304 |
| Other current and non current assets | 9,800 | (17,165) |
| Accounts payable and accrued expenses | 32,241 | 10,117 |
| Deferred origination fees | (12,217) | (1,159) |
| Income tax payable | (38,440) | 14,004 |
| Net cash provided by operating activities | 87,262 | 119,915 |
| Cash flows from investing activities: | ||
| Proceeds from sale of marketable securities | 263,442 | -- |
| Short term commercial loans made | (2,149,000) | (1,785,529) |
| Collections received from short term commercial loans | 743,921 | 1,298,709 |
| Net cash used in investing activities | (1,141,637) | (486,820) |
| Cash flows from financing activities: | ||
| Proceeds from lines of credit, net | 458,434 | -- |
| Net cash provided by financing activities | 458,434 | -- |
| Net decrease in cash and cash equivalents | (595,941) | (366,905) |
| Cash and cash equivalents, beginning of period | 707,449 | 884,296 |
| Cash and cash equivalents, end of period | $ 111,508 | $ 517,391 |
| Supplemental Cash Flow Information: | ||
| Taxes paid during the period | $100,440 | $ 8,325 |
| Interest Paid during the period | $ 5,134 | $ -- |