Manhattan Bridge Capital, Inc. Reports Second Quarter Results

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| Source: Manhattan Bridge Capital, Inc.

LONG ISLAND, N.Y., Aug. 13, 2014 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq:LOAN) announced today that its total revenue for the three month period ended June 30, 2014 was approximately $630,000 compared to approximately $554,000 for the three month period ended June 30, 2013, an increase of $76,000 or 13.7%. For the three month period ended June 30, 2014, approximately $518,000 of the Company's revenue represents interest income on the secured, commercial loans that the Company offers to small businesses compared to approximately $448,000 for the same period in 2013, and approximately $112,000 represents origination fees on such loans compared to approximately $106,000 for the same period in 2013. The increase in revenue represents an increase in lending operations.

Income from operations for the three month period ended June 30, 2014 was approximately $331,000 compared to approximately $247,000 for the same period ended June 30, 2013, an increase of $84,000 or 34.0%. This increase in income from operations resulted mainly from an increase in revenue and a decrease in general and administrative expenses, offset by an increase in interest and amortization of debt service costs.

Net income for the three month period ended June 30, 2014 was $0.10 per basic and diluted share (based on 4.284 million shares and 4.323 million shares), or $421,000, versus net income of $0.04 per basic and diluted share (based on 4.275 million shares and 4.289 million shares) or $158,000 for the three month period ended June 30, 2013. This increase in net income is mainly due to an increase in income from operations and a decrease in income tax expense as the Company believes it currently satisfies all of the requirements to be taxed as a REIT.

Total revenue for the six month period ended June 30, 2014 was approximately $1,239,000 compared to approximately $1,088,000 for the six month period ended June 30, 2013, an increase of $151,000 or 13.9%. For the six month period ended June 30, 2014, approximately $1,025,000 of the Company's revenue represents interest income on the secured, commercial loans that the Company offers to small businesses compared to approximately $892,000 for the same period in 2013, and approximately $214,000 represents origination fees on such loans compared to approximately $196,000 for the same period in 2013. The increase in revenue represents an increase in lending operations.

Income from operations for the six month period ended June 30, 2014 was approximately $647,000 compared to approximately $505,000 for the same period ended June 30, 2013, an increase of $142,000 or 28.1%. This increase in income from operations resulted mainly from an increase in revenue and a decrease in general and administrative expenses, offset by an increase in interest and amortization of debt service costs.

Net income for the six month period ended June 30, 2014 was $0.15 per basic and diluted share (based on 4.270 million shares and 4.304 million shares), or $629,000, versus net income of $0.08 per basic and diluted share (based on 4.279 million shares and 4.290 million shares) or $331,000 for the same period in 2013, an increase of $298,000. This increase in net income is mainly due to an increase in income from operations and a decrease in income tax expense as the Company believes it currently satisfies all of the requirements to be taxed as a REIT.

As of June 30, 2014 total shareholders' equity was approximately $9,456,000 compared to approximately $8,893,000 as of December 31, 2013, an increase of $563,000.

The Company completed a public offering of 1,754,386 common shares at a price to the public of $2.85 per share on July 31, 2014. As a result of the offering, the Company believes it currently satisfies all of the requirements to be taxed as a Real Estate Investment Trust and intends to elect REIT status beginning with its 2014 tax year. As a REIT, the Company will generally not be subject to income taxes on its income, so long as it meets certain requirements, including distributing 90% of its taxable income to shareholders.

Assaf Ran, Chairman of the Board and CEO stated, "The second quarter results reflect a pattern of constant growth and increased net earnings while maintaining disciplined underwriting practices in order to continue to avoid defaults. As we have accomplished a successful stock offering in the beginning of the third quarter, I'm confident in our ability to sustain this record," added Mr. Ran.

Manhattan Bridge Capital, Inc. offers short-term secured, non–banking loans (sometimes referred to as ''hard money'' loans) to real estate investors to fund their acquisition, renovation, rehabilitation or improvement of properties located in the 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 condition 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 )we may not qualify as a REIT; (ii) we have a no operating history as a REIT;(iii) our loan origination activities, revenues and profits are limited by available funds (iv)we operate in a highly competitive market and competition may limit our ability to originate loans with favorable interest rates; (v) our chief executive officer is critical to our business and our future success may depend on our ability to retain him; (vi) if we overestimate the yields on our loans or incorrectly value the collateral securing the loan, we may experience losses; (vii) we may be subject to "lender liability" claims; (viii) our loan portfolio is illiquid; (ix) our due diligence may not uncover all of a borrower's liabilities or other risks to its business; (x) borrower concentration could lead to significant losses; (xi) our management has no experience managing a REIT; and (xii) we may choose to make distributions in our own stock, in which case you may be required to pay income taxes in excess of the cash dividends you receive. 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
     
  June 30, 2014 December 31, 2013
Assets (unaudited) (audited)
Current assets:    
     
Cash and cash equivalents $135,495 $1,021,023
     
Short term loans receivable 11,415,967 10,697,950
Interest receivable on loans 200,245 171,483
Other current assets 50,428 18,540
Total current assets 11,802,135 11,908,996
     
Investment in real estate 146,821 146,821
Long term loans receivable 5,505,000 3,997,000
Other assets 204,429 ---
Security deposit 6,637 6,637
Investment in privately held company 65,000 65,000
     
Total assets $17,730,022 $16,124,454
     
Liabilities and Stockholders' Equity    
Current liabilities:    
Short term loans $1,319,465 $1,319,465
Line of credit 6,600,000 5,350,000
Accounts payable and accrued expenses 49,416 57,066
Deferred origination fees 174,889 132,017
Income taxes payable 130,224 373,219
Total liabilities, all current 8,273,994 7,231,767
     
Commitments    
Stockholders' equity:    
Preferred shares -- $.01 par value; 5,000,000 shares authorized; no shares issued --- ---
Common shares -- $.001 par value; 25,000,000 authorized; 4,482,190 and 4,433,190 issued; 4,305,190 and 4,256,190 outstanding 4,482 4,433
Additional paid-in capital 9,807,261 9,745,249
Treasury stock, at cost – 177,000 shares (369,335) (369,335)
Retained earnings (accumulated deficit) 13,620 (487,660)
Total stockholders' equity 9,456,028 8,892,687
     
Total liabilities and stockholders' equity $17,730,022 $16,124,454
 
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
         
  Three Months Six Months
  Ended June 30, Ended June 30,
  2014 2013 2014 2013
         
Interest income from loans $518,065 $447,522 $1,025,436 $892,301
Origination fees 112,017 106,273 213,556 195,855
Total Revenue 630,082 553,795 1,238,992 1,088,156
         
Operating costs and expenses:        
Interest and amortization of debt service costs        
  122,906 101,560 239,329 204,206
Referral fees 275 334 384 929
General and administrative expenses 175,812 204,857  351,808  377,725
Total operating costs and expenses  298,993 306,751 591,521 582,860
         
Income from operations 331,089 247,044 647,471 505,296
Other income 6,887 6,887 13,774 13,774
Income before income tax benefit (expense) 337,976 253,931 661,245 519,070
Income tax benefit (expense) 83,000 (96,000) (32,000) (188,000)
Net Income $420,976 $157,931 $629,245 $331,070
         
Basic and diluted net income per common share outstanding:        
--Basic $0.10 $0.04 $0.15 $0.08
--Diluted $0.10 $0.04 $0.15 $0.08
         
Weighted average number of common shares outstanding        
--Basic 4,283,805 4,274,562 4,270,074 4,278,868
--Diluted 4,323,026 4,289,134 4,303,742 4,289,988
 
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
     
  Six Months
  Ended June 30,
  2014 2013
Cash flows from operating activities:    
Net Income $629,245 $331,070
Adjustments to reconcile net income to net cash provided by operating activities -    
Amortization of deferred financing costs --- 23,538
Non cash compensation expense 6,832 8,518
Changes in operating assets and liabilities:    
Interest receivable on loans (28,762) (76)
Other current and non current assets (31,888) (32,202)
Accounts payable and accrued expenses (7,651) (50,638)
Deferred origination fees 42,873 54,523
Income taxes payable (242,995) (86,120)
Net cash provided by operating activities 367,654 248,613
     
Cash flows from investing activities:    
Issuance of short term loans (9,764,000) (8,430,500)
Collections received from loans 7,537,983 7,871,866
Net cash used in investing activities (2,226,017) (558,634)
     
Cash flows from financing activities:    
Proceeds from loans and line of credit, net 1,250,000 1,260,000
Purchase of treasury shares --- (76,053)
Capital raising costs (204,429) ---
Proceeds from exercise of stock options 55,230 22,540
Dividend paid (127,966) (42,786)
Net cash provided by financing activities 972,835 1,163,701
     
Net (decrease) increase in cash and cash equivalents (885,528) 853,680
Cash and cash equivalents, beginning of period 1,021,023 240,693
Cash and cash equivalents, end of period $135,495 $1,094,373
     
Supplemental Cash Flow Information:    
Taxes paid during the period $274,995 $274,120
Interest paid during the period $239,329 $180,667
Assaf Ran, CEO
Vanessa Kao, CFO
(516) 444-3400