NEW YORK, March 18, 2009 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq:LOAN) announced today that total revenue for the year ended December 31, 2008 was $758,000 compared to $221,000 for the year ended December 31, 2007, an increase of $537,000 or 243%. This increase in revenue represents an increase in lending operations. $684,000 of 2008 revenue represents interest income, and $74,000 of revenue represents origination fees on loans made. As of December 31, 2008 the aggregate amount of loans made since inception was $10,267,000, of which $4,705,000 has been collected.
General and administrative expenses for the year ended December 31, 2008 were $682,000 (including non-cash compensation expense on grant of options of $141,000) compared to $766,000 for the year ended December 31, 2007, a decrease of $84,000, or 10.9%. This decrease in general and administrative expenses is mainly due to a decrease in professional fees, a decrease in compensation expenses and a decrease in hosting and maintenance expenses of Nextyellow's website.
For the year ended December 31, 2008, the company reported a positive cash flow from operations of $401,000 compared to a negative cash flow from operations of ($487,000) for the year ended December 31, 2007.
Total shareholders equity for the year ended December 31, 2008 was $6,990,000 compared to $6,888,000 for the year ended December 31, 2007, an increase of $102,000.
Due to the market conditions, the company wrote-off and marked down an aggregate amount of $720,000 of the value of its marketable securities portfolio.
Net loss for the year ended December 31, 2008 was $520,000, or ($0.16) per basic and diluted share (based on 3.247 million shares). This loss mainly represents the non-cash write-off of investments in marketable securities in the amount of $93,000 and other-than-temporary declines in the market value of investments in marketable securities in the amount of $628,000.
Assaf Ran, Chairman of the Board and CEO, stated, "I am pleased with the growth and the development of our lending operations; we have succeeded in overcoming challenges and penetrating the financing industry safely and smoothly. We now feel comfortable expanding into the next stage of our plan."
"Although we have decided to significantly mark down the value of our marketable securities portfolio, I found comfort in the fact that we managed to increase the net equity of the company," added Mr. Ran.
Manhattan Bridge Capital, Inc., provides short term, secured, non-banking, commercial loans to small businesses. In addition, we developed innovative software and a related web site that allows retail businesses and other service providers to reach prospective customers and clients for their goods and services in a more effective way than traditional on-line and print yellow pages searches. We operate several web sites, including: http://www.manhattanbridgecapital.com and http://www.nextyellow.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, 2008 and 2007 2008 2007 ---- ---- Assets Current assets: Cash and cash equivalents $ 884,296 $ 621,724 Investment in marketable securities 499,207 802,811 Short term investment - insurance annuity contract - at fair value -- 931,555 --------------------------- Total cash and cash equivalents, marketable securities and short term investment 1,383,503 2,356,090 Short term loans 5,362,060 4,313,211 Interest receivable on short term loans 79,674 41,184 Due from purchaser 23,881 156,103 Other current assets 8,813 17,083 --------------------------- Total current assets 6,857,931 6,883,671 Long term loans 200,000 -- Property and equipment, net 9,421 14,261 Capitalized web development costs, net -- 74,015 Security deposit 17,515 17,515 Investment in privately held company, at cost 100,000 100,000 --------------------------- Total assets $ 7,184,867 $ 7,089,462 =========================== Liabilities and Shareholders' Equity Current liabilities: Accounts payable and accrued expenses $ 130,375 $ 123,886 Deferred gain from the sale of Jewish Directories -- 72,917 Deferred origination fees 53,106 4,597 Income taxes payable 11,104 -- --------------------------- Total current liabilities 194,585 201,400 --------------------------- 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 and 3,305,190 issued at December 31, 2008 and 2007, respectively; 3,325,760 and 3,236,460 outstanding at December 31, 2008 and 2007, respectively 3,405 3,305 Additional paid-in capital 9,399,861 9,180,235 Treasury stock, at cost- 79,430 and 68,730 common shares at December 31, 2008 and 2007, respectively (239,944) (231,113) Accumulated other comprehensive loss (30,088) (441,272) Accumulated deficit (2,142,952) (1,623,093) --------------------------- Total shareholders' equity 6,990,282 6,888,062 --------------------------- Total liabilities and shareholders' equity $ 7,184,867 $ 7,089,462 =========================== MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007 2008 2007 ---- ---- Interest income from short and long term loans $ 684,012 $ 209,898 Origination fees 73,517 6,913 Subscription revenues, net 137 4,351 ---------- ---------- Total Revenue 757,666 221,162 ---------- ---------- Operating costs and expenses: Web development expenses 74,015 49,344 Selling, general and administrative expenses 682,455 765,541 ---------- ---------- Total operating costs and expenses 756,470 814,885 ---------- ---------- ---------- ---------- Income (loss) from operations 1,196 (593,723) ---------- ---------- Interest and dividend income 73,976 249,053 Realized net gain (loss) on marketable securities 18,122 148,777 Write-off of investment in convertible loan -- (25,000) Write-off of investment in marketable securities (92,619) -- Other than temporary decline in the market value of marketable securities (627,777) -- Other income (loss) 39,000 (400) ---------- ---------- Total other (loss) income (589,298) 372,430 ---------- ---------- Loss from continuing operations before income tax (expense) benefit (588,102) (221,293) Income tax (expense) benefit (4,674) 182,469 ---------- ---------- Loss from continuing operations (592,776) (38,824) ---------- ---------- Discontinued Operations: Gain on the sale of the Directories business (net of tax effect of 0 in 2008 and 2007) 72,917 267,360 Loss from operations of Shopila (net of tax effect of 0 in 2008 and 2007) -- (260,240) ---------- ---------- Income from discontinued operations 72,917 7,120 ---------- ---------- Net loss $(519,859) $ (31,704) ========== ========== Basic and diluted income (loss) per common share Continuing operations $ (0.18) $ (0.01) Discontinued operations 0.02 * ---------- ---------- Net loss per common share $ (0.16) $ (0.01) ========================= Weighted average number of common shares outstanding - Basic and diluted 3,247,409 3,236,460 * Less than $0.01 per share MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007 -------------------------------------------------------------------- Common Stock Additional Treasury Stock ------------ ---------- -------------- Paid-in ------- Capital ------- -------------------------------------------------- Shares Amount Shares Cost --------- ------ ------ ---------- --------------------------------------------------------------------- Balance, January 1, 2007 3,305,190 $3,305 $9,023,309 68,730 $(231,113) --------------------------------------------------------------------- Non-cash compensation 156,926 --------------------------------------------------------------------- Unrealized loss on preferred stocks and other marketable securities --------------------------------------------------------------------- Net loss for the year ended December 31, 2007 --------------------------------------------------------------------- Total comprehensive loss --------------------------------------------------------------------- Balance, December 31, 2007 3,305,190 3,305 9,180,235 68,730 (231,113) --------------------------------------------------------------------- Issuance of common stock from exercise of options 100,000 100 77,900 --------------------------------------------------------------------- Non-cash compensation 141,726 --------------------------------------------------------------------- Treasury Shares 10,700 (8,831) --------------------------------------------------------------------- Unrealized loss on preferred stocks and other marketable securities --------------------------------------------------------------------- Other than temporary decline in the market value of other marketable securities --------------------------------------------------------------------- Net loss for the year ended December 31, 2008 --------------------------------------------------------------------- Total comprehensive loss --------------------------------------------------------------------- Balance, December 31, 2008 3,405,190 $3,405 $9,399,861 79,430 $(239,944) --------- ------ ---------- ------ ---------- --------------------------------------------------------------------- --------------------------------------------------------------------- Unrealized loss Accumulated Totals --------------- ----------- ------ on preferred Deficit ------------ ------- stocks and other ---------------- marketable ---------- securities ---------- --------------------------------------------------------------------- Balance, January 1, 2007 $(127,595) $(1,591,389) $7,076,517 --------------------------------------------------------------------- Non-cash compensation 156,926 ------- --------------------------------------------------------------------- Unrealized loss on preferred stocks and other marketable securities (313,677) (313,677) --------- --------------------------------------------------------------------- Net loss for the year ended December 31, 2007 (31,704) (31,704) -------- --------------------------------------------------------------------- Total comprehensive loss (345,381) ========= --------------------------------------------------------------------- Balance, December 31, 2007 (441,272) (1,623,093) 6,888,062 --------------------------------------------------------------------- Issuance of common stock from exercise of options 78,000 ------ --------------------------------------------------------------------- Non-cash compensation 141,726 ------- --------------------------------------------------------------------- Treasury Shares (8,831) ------- --------------------------------------------------------------------- Unrealized loss on preferred stocks and other marketable securities (216,593) (216,593) --------- --------------------------------------------------------------------- Other than temporary decline in the market value of other marketable securities 627,777 627,777 ------- --------------------------------------------------------------------- Net loss for the year ended December 31, 2008 (519,859) (519,859) --------- --------------------------------------------------------------------- Total comprehensive loss (108,675) ========= --------------------------------------------------------------------- Balance, December 31, 2008 $(30,088) $(2,142,952) $6,990,282 --------- ------------ ---------- --------------------------------------------------------------------- MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007 2008 2007 ---- ---- Cash flows from operating activities: Net loss $ (519,859) $ (31,704) Adjustments to reconcile net loss to net cash provided by (used in) operating activities - Gain on sale of Directories business (72,917) (267,360) Loss from discontinued operations of Shopila -- 260,240 Depreciation 4,840 4,537 Amortization of web development costs 74,015 49,344 Non cash compensation expense 141,726 156,926 Write-off of investment in convertible loan -- 25,000 Write-off of investment in marketable securities 92,619 -- Other than temporary decline in the market value of marketable securities 627,777 -- Realized gain on sale of marketable securities and insurance annuity contract, net (18,122) (148,777) Loss on the sale of fixed assets -- 400 Changes in operating assets and liabilities net of effects of disposition - Interest receivable on short and long term commercial loans (38,490) (41,184) Other current and non current assets 8,270 21,507 Accounts payable and accrued expenses 6,489 (65,818) Deferred origination fees 48,509 4,597 Due from purchasers 35,000 -- Income taxes payable 11,104 (341,681) Assets and liabilities from discontinued operations -- (112,755) ------------ ------------ Net cash provided by (used in) operating activities 400,961 (486,728) ------------ ------------ Cash flows from investing activities: Investment in marketable securities -- (1,544,637) Proceeds from sale of marketable securities -- 2,814,495 Redemption of insurance annuity contract 944,069 214,360 Investment in auction rate securities (1,175,000) -- Proceeds from sale of auction rate securities 1,175,000 -- Short term and long term commercial loans made (5,339,756) (4,927,250) Collections received from short term commercial loans 4,090,907 614,039 Purchase of fixed assets -- (3,215) Proceeds from sale of fixed assets -- 500 Cash received on sale of the Directories business 97,222 309,223 ------------ ------------ Net cash used in investing activities (207,558) (2,522,485) ------------ ------------ Cash flows from financing activities: Proceeds from exercise of options 78,000 -- Purchase of treasury stock (8,831) -- ------------ ------------ Net cash provided by financing activities 69,169 -- ------------ ------------ Net increase (decrease) in cash and cash equivalents 262,572 (3,009,213) Cash and cash equivalents, beginning of year 621,724 3,630,937 ------------ ------------ Cash and cash equivalents, end of year $ 884,296 $ 621,724 ============ ============ Supplemental Cash Flow Information: Taxes paid during the year $ 11,599 $ 212,430 ============ ============ Interest paid during the year $ 4,692 $ -- ============ ============