Manhattan Bridge Capital, Inc. Reports Results for Fiscal Year 2013

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| Source: Manhattan Bridge Capital, Inc.

LONG ISLAND, N.Y., March 24, 2014 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq:LOAN) announced today that net income for the year ended December 31, 2013 was $0.14 per basic share and per diluted share (based on 4.269 million shares and 4.290 million shares, respectively), or approximately $583,000, versus $0.09 per basic share and per diluted share (based on 4.320 million shares and 4.326 million shares, respectively), or approximately $389,000 for the year ended December 31, 2012. This increase is primarily attributable to an increase in revenue, offset by increases in interest expense and in income tax expense.

Total revenue for the year ended December 31, 2013 was approximately $2,260,000 compared to approximately $1,816,000 for the year ended December 31, 2012, an increase of $444,000 or 24.4%. The increase in revenue represents an increase in lending operations. In 2013, approximately $1,858,000 of the Company's revenue represents interest income on secured, commercial loans that the Company offers to small businesses compared to approximately $1,476,000 in 2012, and approximately $402,000 represents origination fees on such loans compared to approximately $340,000 in 2012.

Total operating costs and expenses for the year ended December 31, 2013 were approximately $1,282,000 compared to approximately $1,151,000 for the year ended December 31, 2012, an increase of $131,000 or 11.4%. This increase in operating costs and expenses is primarily attributable to an increase in interest and amortization of debt service costs of approximately $162,000, which is primarily attributable to the Company's use of a line of credit in order to increase its ability to make loans.

As of December 31, 2013 total shareholders' equity was approximately $8,893,000 compared to approximately $8,479,000 as of December 31, 2012, an increase of $414,000.

Assaf Ran, Chairman of the Board and CEO, stated, "I'm pleased to report one more year of solid increase in revenue and net earning, simultaneously with no defaults. As the company's line of credit from Sterling National Bank was increased recently, I'm confident that we'll continue to grow in 2014 as well."

"During 2013 the company revived its cash dividend program, and later on doubled the dividend. As the company grows to the next level, it continues to explore the possibility of becoming a REIT, an entity which would not be subject to federal or state income taxes, although it does not currently meet all requirements for adopting REIT status," added Mr. Ran.

Manhattan Bridge Capital, Inc., offers 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 the New York Metropolitan area. The loans are principally secured by collateral consisting of real estate and, generally, accompanied by personal guarantees from the principals of the 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
December 31, 2013 and 2012
     
  2013 2012
     
Assets    
Current assets:    
Cash and cash equivalents  $ 1,021,023 $ 240,693
Short term loans receivable 10,697,950 11,022,866
Interest receivable on loans 171,483 160,342
Other current assets 18,540 18,903
Total current assets 11,908,996 11,442,804
     
Investment in real estate 146,821 146,821
Long term loans receivable 3,997,000 2,601,500
Security deposit 6,637 6,491
Investment in privately held company 65,000 100,000
Deferred financing costs --- 41,735
     
Total assets $ 16,124,454 $ 14,339,351
     
Liabilities and Stockholders' Equity    
Current liabilities:    
Short term loans $ 1,319,465 $ 1,399,465
Line of credit 5,350,000 3,500,000
Senior secured notes --- 500,000
Accounts payable and accrued expenses 57,066 70,403
Deferred origination fees 132,017 122,242
Income taxes payable 373,219 268,256
Total liabilities, all current 7,231,767 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 9,745,249 9,687,159
Treasury stock, at cost – 177,000 and 107,131 shares (369,335) (269,972)
Accumulated deficit (487,660) (942,607)
Total stockholders' equity 8,892,687 8,478,985
Total liabilities and stockholders' equity $ 16,124,454 $ 14,339,351
 
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED December 31, 2013 and 2012
     
  2013 2012
     
Interest income from loans $ 1,858,033 $ 1,475,800
Origination fees 401,514 339,767
Total Revenue 2,259,547 1,815,567
     
Operating costs and expenses:    
Interest and amortization of debt service costs 442,661 280,654
Referral fees 1,679 6,133
General and administrative expenses 837,788 864,398
Total operating costs and expenses 1,282,128 1,151,185
     
Income from operations 977,419 664,382
     
Other income 27,548 27,548
Loss on write-down of investment in privately held company (35,000) ---
Total other (loss) income, net (7,452) 27,548
     
Income before income tax expense 969,967 691,930
Income tax expense  (387,000) (303,320)
Net income $ 582,967 $ 388,610
     
Basic and diluted net income per common share outstanding:    
--Basic $0.14 $0.09
--Diluted $0.14 $0.09
Weighted average number of common shares outstanding     
--Basic  4,269,169 4,320,050
--Diluted 4,289,818 4,326,329
 
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE YEARS ENDED December 31, 2013 and 2012
           
  Common Stock Additional Paid-in
Capital
Treasury Stock Accumulated
Deficit
Totals
               
  Shares Amount   Shares Cost    
Balance, January 1, 2012 4,405,190 $4,405 $9,656,280 80,731 $(241,400) $(1,331,217) $8,088,068
Non cash compensation     30,879       30,879
Purchase of treasury shares       26,400 (28,572)   (28,572)
Net income for the year
ended December 31, 2012
          388,610 388,610
Balance, December 31, 2012 4,405,190 4,405 9,687,159 107,131 (269,972) (942,607) 8,478,985
Non cash compensation     35,578       35,578
Exercise of stock options 28,000 28 22,512       22,540
Purchase of treasury shares       69,869 (99,363)   (99,363)
Dividends paid            (128,020) (128,020)
Net income for the year
ended December 31, 2013
          582,967 582,967
Balance, December 31, 2013 4,433,190 $4,433 $9,745,249 177,000 $(369,335) $(487,660) $8,892,687
 
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED December 31, 2013 and 2012
     
  2013 2012
Cash flows from operating activities:    
Net income  $ 582,967 $ 388,610
Adjustments to reconcile net income to net cash provided by operating activities --    
Amortization of deferred financing costs 41,735 47,078
Depreciation  --- 588
Non cash compensation expense 35,578 30,879
Loss on write-down of investment in privately held company 35,000 ---
Changes in operating assets and liabilities     
Interest receivable on loans (11,141) (50,437)
Other current and non current assets 217 (2,582)
Accounts payable and accrued expenses (13,337) 10,331
Deferred origination fees 9,775 9,462
Income taxes payable 104,963 99,470
Net cash provided by operating activities 785,757 533,399
     
Cash flows from investing activities:    
Issuance of short term loans (15,159,450) (15,173,500)
Collections received from loans 14,088,866 10,963,486
Net cash used in investing activities (1,070,584) (4,210,014)
     
Cash flows from financing activities:    
Proceeds from loans and line of credit, net 1,770,000 3,740,000
Purchase of treasury shares (99,363) (28,572)
Repayment of senior secured notes (500,000) ---
Proceeds from exercise of stock options 22,540 ---
Dividends paid ($0.01 per share) (128,020) ---
Deferred financing costs incurred --- (16,025)
Net cash provided by financing activities 1,065,157 3,695,403
     
Net increase in cash and cash equivalents 780,330 18,788
     
Cash and cash equivalents, beginning of year 240,693 221,905
     
Cash and cash equivalents, end of year $ 1,021,023 $ 240,693
     
Supplemental Cash Flow Information:    
Taxes paid during the year $ 283,084 $ 203,850
Interest paid during the year $ 400,925 $ 234,835
Assaf Ran, CEO
Vanessa Kao, CFO
(516) 444-3400