NEW YORK, Aug. 10, 2011 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq:LOAN) announced today that its total revenue for the three month period ended June 30, 2011 was approximately $342,000 compared to approximately $315,000 for the three month period ended June 30, 2010, an increase of 9%. For the three month period ended June 30, 2011, $276,000 of the Company's revenue represented interest income on the short term secured commercial loans that the Company offers to small businesses compared to $260,000 for the same period in 2010, and $66,000 represents origination fees on such loans compared to $55,000 for the same period in 2010. The increase in revenue represents an increase in lending operations.
Income from operations for the three month period ended June 30, 2011 was approximately $110,000 compared to approximately $123,000 for the same period ended June 30, 2010, a decrease of 11%. This decrease in income from operations resulted mainly from an increase in operating costs and expenses of $40,000, primarily attributable to an increase in payroll expenses due to restoration of our CEO's salary in June 2010 and an increase in interest expense on loans and line of credit, offset by a decrease in equity-based compensation expense.
Net income for the three month period ended June 30, 2011 was $0.03 per basic and diluted share (based on 3.324 million shares and 3.398 million shares), or $87,000, versus net income of $0.05 per basic and diluted share (based on 3.324 million shares and 3.370 million shares) or $155,000 for the three month period ended June 30, 2010. This decrease in net income is mainly due to a decrease in other income due to the realized gains on the sale of marketable securities that were previously marked down which were recorded in the period ended June 30, 2010, in the amount of $96,000 and increases in operating costs and expenses, offset by the increase in revenue.
Total revenue for the six month period ended June 30, 2011 was approximately $680,000 compared to approximately $606,000 for the six month period ended June 30, 2010, an increase of 12%. For the six month period ended June 30, 2011, $558,000 of the Company's revenue represented interest income on the short term secured commercial loans that the Company offers to small businesses compared to $496,000 for the same period in 2010, and $122,000 represents origination fees on such loans compared to $110,000 for the same period in 2010.
Net income for the six month period ended June 30, 2011 was $0.05 per basic and diluted share (based on 3.324 million shares and 3.397 million shares,), or $168,000, versus net income of $0.09 per basic and diluted share (based on 3.324 million shares and 3.368 million shares,) or $296,000 for the same period in 2010, a decrease of approximately $128,000. This decrease in net income is mainly due to a decrease in other income due to the realized gains on the sale of marketable securities that were previously marked down which were recorded in the period ended June 30, 2010, in the amount of $151,000 and increases in operating costs and expenses, offset by the increase in revenue.
As of June 30, 2011 total shareholders' equity was $7,962,000 compared to $7,763,000 as of December 31, 2010, an increase of $199,000.
Assaf Ran, Chairman of the Board and CEO stated, "During the second quarter we increased our leverage position and revenue and steadily kept the growth of our shareholders' equity. Our recent relocation to an office outside of NYC and additional saving measures will help reduce operating expenses.
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 | ||
| Assets | June 30, 2011 | December 31,2010 |
| (Unaudited) | (Audited) | |
| Current assets: | ||
| Cash and cash equivalents | $8,446 | $386,023 |
| Short term loans | 9,040,839 | 8,156,293 |
| Interest receivable on short term loans | 117,028 | 91,593 |
| Other current assets | 45,912 | 13,427 |
| Total current assets | 9,212,225 | 8,647,336 |
| Investment in real estate | 675,000 | ------ |
| Long term loan receivable | 73,391 | ------ |
| Property and equipment, net | 909 | 2,425 |
| Security deposit | 23,864 | 17,515 |
| Investment in privately held company, at cost | 100,000 | 100,000 |
| Deferred financing costs | 90,986 | 109,183 |
| Total assets | $10,176,375 | $8,876,459 |
| Liabilities and Shareholders' Equity | ||
| Current liabilities: | ||
| Short term loans and line of credit | $1,359,465 | $300,000 |
| Accounts payable and accrued expenses | 53,761 | 56,405 |
| Deferred origination fees | 104,850 | 76,428 |
| Income taxes payable | 196,512 | 180,513 |
| Total current liabilities | 1,714,588 | 613,346 |
| Long term liabilities: | ||
| Senior secured notes | 500,000 | 500,000 |
| Total liabilities | 2,214,588 | 1,113,346 |
| 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 | 9,619,604 | 9,588,849 |
| Treasury stock, at cost- 80,731 shares | (241,400) | (241,400) |
| Accumulated deficit | (1,419,822) | (1,587,741) |
| Total shareholders' equity | 7,961,787 | 7,763,113 |
| Total liabilities and shareholders' equity | $10,176,375 | $8,876,459 |
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES | ||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
| (unaudited) | ||||
| Three Months | Six Months | |||
| Ended June 30, | Ended June 30, | |||
| 2011 | 2010 | 2011 | 2010 | |
| Interest income from short term loans | $276,037 | $259,661 | $558,402 | $495,864 |
| Origination fees | 65,572 | 55,368 | 122,009 | 110,339 |
| Total Revenue | 341,609 | 315,029 | 680,411 | 606,203 |
| Operating costs and expenses: | ||||
| Interest expense on loans and line of credit | 28,289 | 9,593 | 44,965 | 14,727 |
| General and administrative expenses | 203,809 | 182,451 | 390,529 | 324,527 |
| Total operating costs and expenses | 232,098 | 192,044 | 435,494 | 339,254 |
| Income from operations | 109,511 | 122,985 | 244,917 | 266,947 |
| Interest and dividend income | ------ | 824 | ------ | 4,167 |
| Realized gain on marketable securities that were previously marked down | ------ | 96,132 | ------ | 151,419 |
| Other income | 31,590 | ------ | 39,000 | ------ |
| Total other income | 31,590 | 96,956 | 39,000 | 155,586 |
| Income from operations before income tax expense | 141,101 | 219,941 | 283,917 | 422,533 |
| Income tax expense | (54,000) | (65,000) | (116,000) | (127,000) |
| Net Income | $87,101 | $154,941 | $167,917 | $295,533 |
| Basic and diluted net income per common share outstanding: | ||||
| ---Basic | $0.03 | $0.05 | $0.05 | $0.09 |
| ---Diluted | $0.03 | $0.05 | $0.05 | $0.09 |
| Weighted average number of common shares outstanding | ||||
| ---Basic | 3,324,459 | 3,324,459 | 3,324,459 | 3,324,459 |
| ---Diluted | 3,397,597 | 3,370,329 | 3,396,873 | 3,368,096 |
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES | ||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| (unaudited) | ||
| Six Months | ||
| Ended June 30, | ||
| 2011 | 2010 | |
| Cash flows from operating activities: | ||
| Net Income | $167,917 | $295,533 |
| Adjustments to reconcile net income to net cash provided by operating activities -- | ||
| Amortization of deferred financing costs | 18,197 | -------- |
| Depreciation | 1,516 | 1,516 |
| Non cash compensation expense | 30,755 | 45,754 |
| Realized gain on sale of marketable securities that were previously marked down | ------ | (151,419) |
| Changes in operating assets and liabilities: | ||
| Interest receivable on short term loans | (25,435) | (8,865) |
| Other current and non current assets | (38,833) | (85,151) |
| Accounts payable and accrued expenses | (2,643) | (8,888) |
| Deferred origination fees | 28,422 | (45,859) |
| Income taxes payable | 15,999 | 26,560 |
| Net cash provided by operating activities | 195,895 | 69,181 |
| Cash flows from investing activities: | ||
| Proceeds from sale of marketable securities | ------ | 431,864 |
| Investment in real estate | (675,000) | -------- |
| Issuance of short term loans | (3,270,800) | (2,936,500) |
| Collections received from loans | 2,312,863 | 1,706,421 |
| Net cash used in investing activities | (1,632,937) | (798,215) |
| Cash flows from financing activities: | ||
| Proceeds from loans and line of credit | 1,059,465 | 300,000 |
| Net cash provided by financing activities | 1,059,465 | 300,000 |
| Net decrease in cash | (377,577) | (429,034) |
| Cash and cash equivalents, beginning of the year | 386,023 | 707,449 |
| Cash and cash equivalents, end of period | $8,446 | $278,415 |
| Supplemental Cash Flow Information: | ||
| Taxes paid during the period | $100,001 | $100,440 |
| Interest paid during the period | $44,965 | $14,727 |
| Non-Cash Investing and Financing Activities: | ||
| Forgiveness of debt | ------ | $27,961 |