LONG ISLAND, N.Y., Aug. 6, 2012 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq:LOAN) announced today that its total revenue for the three month period ended June 30, 2012 was approximately $415,000 compared to approximately $342,000 for the three month period ended June 30, 2011, an increase of $73,000 or 21.3%. For the three month period ended June 30, 2012, approximately $332,000 of the Company's revenue represents interest income on the secured, commercial loans that the Company offers to small businesses compared to approximately $276,000 for the same period in 2011, and approximately $82,000 represents origination fees on such loans compared to approximately $66,000 for the same period in 2011. The increase in revenue represents an increase in lending operations.
Income from operations for the three month period ended June 30, 2012 was approximately $158,000 compared to approximately $110,000 for the same period ended June 30, 2011, an increase of $48,000 or 43.6%. This increase in income from operations resulted mainly from an increase in revenue, offset by an increase in interest and amortization of debt service costs.
Net income for the three month period ended June 30, 2012 was $0.02 per basic and diluted share (based on 4.324 million shares and 4.331 million shares), or $80,000, versus net income of $0.03 per basic and diluted share (based on 3.324 million shares and 3.398 million shares) or $87,000 for the three month period ended June 30, 2011. This decrease in net income is mainly due to an increase in legal fees and in income tax expense, and a decrease in other income, offset by the increase in revenue.
Total revenue for the six month period ended June 30, 2012 was approximately $806,000 compared to approximately $680,000 for the six month period ended June 30, 2011, an increase of $126,000 or 18.5%. For the six month period ended June 30, 2012, approximately $640,000 of the Company's revenue represents interest income on the secured, commercial loans that the Company offers to small businesses compared to approximately $558,000 for the same period in 2011, and approximately $166,000 represents origination fees on such loans compared to approximately $122,000 for the same period in 2011. The increase in revenue represents an increase in lending operations.
Income from operations for the six month period ended June 30, 2012 was approximately $338,000 compared to approximately $245,000 for the same period ended June 30, 2011, an increase of $93,000 or 38%. This increase in income from operations resulted mainly from an increase in revenue, offset by an increase in interest and amortization of debt service costs.
Net income for the six month period ended June 30, 2012 was $0.05 per basic and diluted share (based on 4.324 million shares and 4.332 million shares), or $195,000, versus net income of $0.05 per basic and diluted share (based on 3.324 million shares and 3.397 million shares) or $168,000 for the same period in 2011, an increase of $27,000. This increase in net income is mainly due to an increase in income from operations, offset by an increase in income tax expense and a decrease in other income.
As of June 30, 2012 total shareholders' equity was approximately $8,291,000 compared to approximately $8,088,000 as of December 31, 2011, an increase of $203,000.
Assaf Ran, Chairman of the Board and CEO stated, "During the second quarter, we executed an extremely significant transaction, our first major line of credit. This $3.5 million line will help us continue our growth, both in revenue and in net income and is expected to be reflected in our financial results as soon as the third quarter of 2012. During the second quarter, we have paid a significant amount of money for legal fees in relation to the derivative lawsuit that was filed, dismissed, and filed again by a minority shareholder, Mr. Alan R. Kahn. We are insured to cover the legal fees but are required to pay the initial $75,000. We are preparing a motion to dismiss this amended complaint, which, subject to discussions with the minority shareholder's counsel and approval of the court, we expect to file this month."
"In the second quarter, we also experienced a significant increase in pay-off activity on existing loans and the demand for new loans. This activity represents some recovery in the markets in which we operate. Therefore, I am confident that we are on track for continuing growth," added Mr. Ran.
Manhattan Bridge Capital, Inc. provides short term, secured, non-banking, commercial loans to small 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 SHEET | ||
|
Assets |
June 30, 2012 (unaudited) |
December 31,2011 (audited) |
| Current assets: | ||
| Cash and cash equivalents | $166,506 | $221,905 |
| Short term loans receivable | 6,535,844 | 6,916,090 |
| Interest receivable on loans | 119,479 | 109,905 |
| Other current assets | 49,840 | 16,463 |
| Total current assets | 6,871,669 | 7,264,363 |
| Investment in real estate | 146,821 | 146,821 |
| Long term loans receivable | 4,529,866 | 2,498,262 |
| Property and equipment, net | 266 | 588 |
| Security deposit | 6,349 | 6,349 |
| Investment in privately held company, at cost | 100,000 | 100,000 |
| Deferred financing costs | 67,945 | 72,788 |
|
Total assets |
$ 11,722,916 |
$ 10,089,171 |
| Liabilities and Shareholders' Equity | ||
| Current liabilities: | ||
| Line of credit and short term loans | $ 2,639,465 | $ 1,159,465 |
| Accounts payable and accrued expenses | 24,631 | 60,072 |
| Deferred origination fees | 142,720 | 112,780 |
| Income taxes payable | 125,256 | 168,786 |
| Total current liabilities | 2,932,072 | 1,501,103 |
| Long term liabilities: | ||
| Senior secured notes | 500,000 | 500,000 |
| Total liabilities | 3,432,072 | 2,001,103 |
|
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; 4,405,190 issued and 4,324,459 outstanding |
4,405 |
4,405 |
| Additional paid-in capital | 9,664,009 | 9,656,280 |
| Treasury stock, at cost- 80,731 shares | (241,400) | (241,400) |
| Accumulated deficit | (1,136,170) | (1,331,217) |
| Total shareholders' equity | 8,290,844 | 8,088,068 |
|
Total liabilities and shareholders' equity |
$ 11,722,916 |
$ 10,089,171 |
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES | ||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||
|
(unaudited) |
||||
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||
| 2012 | 2011 | 2012 | 2011 | |
|
Interest income from loans |
$ 332,462 |
$ 276,037 |
$ 640,064 |
$ 558,402 |
| Origination fees | 82,099 | 65,572 | 166,323 | 122,009 |
| Total Revenue | 414,561 | 341,609 | 806,387 | 680,411 |
| Operating costs and expenses: | ||||
| Interest and amortization of debt service costs |
58,932 |
37,388 |
100,074 |
63,162 |
| Referral fees | 1,530 | 763 | 3,659 | 1,411 |
| General and administrative expenses | 196,206 |
193,947 |
364,182 |
370,921 |
| Total operating costs and expenses |
256,668 |
232,098 |
467,915 |
435,494 |
| Income from operations | 157,893 | 109,511 | 338,472 | 244,917 |
|
Other income |
6,887 | 31,590 | 13,774 | 39,000 |
|
Income from operations before income tax expense |
164,780 |
141,101 |
352,246 | 283,917 |
| Income tax expense | (84,700) | (54,000) | (157,200) | (116,000) |
|
Net Income |
$ 80,080 |
$ 87,101 |
$ 195,046 | $ 167,917 |
| Basic and diluted net income per common share outstanding: | ||||
| ---Basic | $ 0.02 | $ 0.03 | $ 0.05 | $ 0.05 |
| ---Diluted | $ 0.02 | $ 0.03 | $ 0.05 | $ 0.05 |
| Weighted average number of common shares outstanding | ||||
| ---Basic | 4,324,459 | 3,324,459 | 4,324,459 | 3,324,459 |
| ---Diluted | 4,331,140 | 3,397,597 | 4,332,322 | 3,396,873 |
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES | ||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||
| (unaudited) | ||
| Six Months | ||
| Ended June 30, | ||
| 2012 | 2011 | |
| Cash flows from operating activities: | ||
| Net Income | $ 195,046 | $ 167,917 |
|
Adjustments to reconcile net income to net cash provided by operating activities -- |
||
| Amortization of deferred financing costs | 4,843 | 18,197 |
| Depreciation | 322 | 1,516 |
| Non cash compensation expense | 7,730 | 30,755 |
| Changes in operating assets and liabilities: | ||
| Interest receivable on loans | (9,574) | (25,435) |
| Other current and non current assets | (33,376) | (38,833) |
| Accounts payable and accrued expenses | (35,441) | (2,643) |
| Deferred origination fees | 29,940 | 28,422 |
| Income taxes payable | (43,530) | 15,999 |
| Net cash provided by operating activities | 115,960 | 195,895 |
| Cash flows from investing activities: | ||
| Investment in real estate | -- | (675,000) |
| Issuance of short term loans | (5,896,000) | (3,270,800) |
| Collections received from loans | 4,244,641 | 2,312,863 |
| Net cash used in investing activities | (1,651,359) | (1,632,937) |
| Cash flows from financing activities: | ||
| Proceeds from loans and line of credit, net | 1,480,000 | 1,059,465 |
| Net cash provided by financing activities | 1,480,000 | 1,059,465 |
| Net decrease in cash and cash equivalents | (55,399) | (377,577) |
| Cash and cash equivalents, beginning of the year | 221,905 | 386,023 |
| Cash and cash equivalents, end of period | $ 166,506 | $ 8,446 |
| Supplemental Cash Flow Information: | ||
| Taxes paid during the period | $ 200,730 | $ 100,001 |
| Interest paid during the period | $ 79,206 | $ 44,965 |