LONG ISLAND, N.Y., Oct. 30, 2013 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq:LOAN) announced today that total revenues for the three month period ended September 30, 2013 were approximately $585,000 compared to approximately $491,000 for the three month period ended September 30, 2012, an increase of $94,000 or 19.1%. The increase in revenue represents an increase in lending operations. For the three month periods ended September 30, 2013 and 2012, approximately $479,000 and $402,000, respectively, of our revenues were attributable to interest income on the secured commercial loans that we offer to small businesses, and approximately $106,000 and $89,000, respectively, of our revenues were attributable to origination fees on such loans.
Net income for the three month period ended September 30, 2013 was $0.05 per basic and diluted share (based on 4.263 million shares and 4.288 million shares, respectively), or $193,921, versus net income of $0.04 per basic and diluted share (based on 4.324 million shares and 4.327 million shares, respectively) or $161,600 for the three month period ended September 30, 2012, an increase of approximately $32,000. 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.
As of September 30, 2013 total shareholders' equity was $8,864,000 compared to $8,722,000 as of June 30, 2013 and $8,479,000 as of December 31, 2012.
Total revenues for the nine month period ended September 30, 2013 were approximately $1,673,000 compared to approximately $1,298,000 for the nine month period ended September 30, 2012, an increase of $375,000, or 28.9%. The increase in revenue represents an increase in lending operations. For the nine month periods ended September 30, 2013 and 2012, revenues of approximately $1,371,000 and $1,042,000, respectively, were attributable to interest income on the secured commercial loans that we offer to small businesses, and approximately $302,000 and $256,000, respectively, were attributable to origination fees on such loans.
Net income for the nine month period ended September 30, 2013 was $0.12 per basic and diluted share (based on 4.274 million shares and 4.289 million shares, respectively), or $524,991, versus net income of $0.08 per basic share and diluted share (based on 4.324 million shares and 4.330 million shares, respectively) or $356,647 for the same period in 2012, an increase of approximately $168,000. This increase in net income was mainly due to an increase in revenue, offset by an increase in interest and amortization of debt service costs.
Assaf Ran, Chairman of the Board and CEO stated, "The results of the third quarter demonstrate an all-time record of revenue and net earnings for our lending operations, while we maintain a portfolio of performing loans which had never experienced a default."
"As the marketplace recovers and in some cases even exceeds the pre-2008 crisis levels, we enhance our risk control measures even more." added Mr. Ran.
Manhattan Bridge Capital, Inc., provides short-term secured non-banking 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, 2013 | December 31, 2012 | |
| Assets | (Unaudited) | (audited) |
| Current assets: | ||
| Cash and cash equivalents | $69,045 | $240,693 |
| Short term loans receivable | 11,363,000 | 11,022,866 |
| Interest receivable on loans | 173,208 | 160,342 |
| Other current assets | 35,057 | 18,903 |
| Total current assets | 11,640,310 | 11,442,804 |
| Investment in real estate | 146,821 | 146,821 |
| Long term loans receivable | 4,037,000 | 2,601,500 |
| Security deposit | 6,637 | 6,491 |
| Investment in privately held company, at cost | 100,000 | 100,000 |
| Deferred financing costs | 9,099 | 41,735 |
| Total assets | $15,939,867 | $14,339,351 |
| Liabilities and Shareholders' Equity | ||
| Current liabilities: | ||
| Short term loans | $1,319,465 | $1,399,465 |
| Line of credit | 4,800,000 | 3,500,000 |
| Senior secured notes | 500,000 | 500,000 |
| Accounts payable and accrued expenses | 16,048 | 70,403 |
| Deferred origination fees | 160,392 | 122,242 |
| Income taxes payable | 280,219 | 268,256 |
| Total liabilities, all current | 7,076,124 | 5,860,366 |
| Commitments and contingencies | ||
| Stockholders' equity: | ||
| Preferred shares -- $.01 par value; 5,000,000 shares authorized; no shares issued | --- | --- |
| Common shares -- $.001 par value; 25,000,000 authorized; 4,433,190 and 4,405,190 issued; 4,256,190 and 4,298,059 outstanding | 4,433 | 4,405 |
| Additional paid-in capital | 9,731,718 | 9,687,159 |
| Treasury stock, at cost – 177,000 and 107,131 shares | (369,335) | (269,972) |
| Accumulated deficit | (503,073) | (942,607) |
| Total stockholders' equity | 8,863,743 | 8,478,985 |
| Total liabilities and stockholders' equity | $15,939,867 | $14,339,351 |
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES | ||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
| (unaudited) | ||||
| Three Months | Nine Months | |||
| Ended September 30, | Ended September 30, | |||
| 2013 | 2012 | 2013 | 2012 | |
| Interest income from loans | $479,118 | $402,119 | $1,371,420 | $1,042,183 |
| Origination fees | 105,920 | 89,191 | 301,775 | 255,514 |
| Total Revenue | 585,038 | 491,310 | 1,673,195 | 1,297,697 |
| Operating costs and expenses: | ||||
| Interest and amortization of debt service costs | 119,272 | 86,779 | 323,478 | 186,851 |
| Referral fees | 312 | 1,232 | 1,242 | 4,891 |
| General and administrative expenses | 172,420 | 183,586 | 550,145 | 547,769 |
| Total operating costs and expenses | 292,004 | 271,597 | 874,865 | 739,511 |
| Income from operations | 293,034 | 219,713 | 798,330 | 558,186 |
| Other income | 6,887 | 6,887 | 20,661 | 20,661 |
| Income before income tax expense | 299,921 | 226,600 | 818,991 | 578,847 |
| Income tax expense | (106,000) | (65,000) | (294,000) | (222,200) |
| Net Income | $193,921 | $161,600 | $524,991 | $356,647 |
| Basic and diluted net income per common share outstanding: | ||||
| ---Basic | $0.05 | $0.04 | $0.12 | $0.08 |
| ---Diluted | $0.05 | $0.04 | $0.12 | $0.08 |
| Weighted average number of common shares outstanding | ||||
| ---Basic | 4,263,194 | 4,324,258 | 4,273,544 | 4,324,392 |
| ---Diluted | 4,287,698 | 4,327,305 | 4,289,225 | 4,330,435 |
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES | ||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| (unaudited) | ||
| Nine Months Ended September 30, | ||
| 2013 | 2012 | |
| Cash flows from operating activities: | ||
| Net Income | $524,991 | $356,647 |
| Adjustments to reconcile net income to net cash provided by operating activities -- | ||
| Amortization of deferred financing costs | 32,636 | 17,948 |
| Depreciation | --- | 482 |
| Non cash compensation expense | 22,048 | 19,304 |
| Changes in operating assets and liabilities: | ||
| Interest receivable on loans | (12,866) | (34,841) |
| Other current and non current assets | (16,300) | (37,770) |
| Accounts payable and accrued expenses | (54,355) | (46,362) |
| Deferred origination fees | 38,150 | 15,993 |
| Income taxes payable | 11,963 | 21,470 |
| Net cash provided by operating activities | 546,267 | 312,871 |
| Cash flows from investing activities: | ||
| Issuance of short term loans | (12,020,500) | (11,148,500) |
| Collections received from loans | 10,244,866 | 7,874,691 |
| Net cash used in investing activities | (1,775,634) | (3,273,809) |
| Cash flows from financing activities: | ||
| Proceeds from loans and line of credit, net | 1,220,000 | 2,950,000 |
| Purchase of treasury shares | (99,363) | (2,607) |
| Proceeds from exercise of stock options | 22,540 | --- |
| Dividend paid ($0.01 per share) | (85,458) | --- |
| Net cash provided by financing activities | 1,057,719 | 2,947,393 |
| Net decrease in cash and cash equivalents | (171,648) | (13,545) |
| Cash and cash equivalents, beginning of period | 240,693 | 221,905 |
| Cash and cash equivalents, end of period | $69,045 | $208,360 |
| Supplemental Cash Flow Information: | ||
| Taxes paid during the period | $282,037 | $200,730 |
| Interest paid during the period | $290,840 | $152,879 |