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 |