updated 3/16/2011 3:18:41 PM ET 2011-03-16T19:18:41

NEW YORK, March 16, 2011 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq:LOAN) announced today that total revenues for the year ended December 31, 2010 were approximately $1,210,000 compared to approximately $1,039,000 for the year ended December 31, 2009, an increase of $171,000 or 16.4%. The increase in revenue represents an increase in lending operations. For the year ended December 31, 2010, $994,000 of our revenue represents interest income on the short term secured commercial loans that we offer to small businesses compared to $840,000 in 2009 and $216,000 represents origination fees on such loans compared to $199,000 in 2009.

Total operating costs and expenses for the year ended December 31, 2010 were $824,000 compared to $673,000 for the year ended December 31, 2009, an increase of $151,000 or 22.4%. This increase in operating costs and expenses is primarily attributable to an increase in payroll expenses of approximately $88,000, an increase in interest expense of approximately $29,000 and an increase of $20,000 in legal expenses.

Net income for the year ended December 31, 2010 was $0.10 per basic share and $0.09 per diluted share (based on 3.324 million shares and 3.372 million shares, respectively), or $319,000, versus $0.07 per basic and diluted share (based on 3.326 million shares and 3.330 million shares, respectively) or $236,000 for the year ended December 31, 2009. This increase is primarily attributable to an increase in revenue and other income, offset by an increase in operating costs and expenses and an increase in income tax expense.

As of December 31, 2010 total shareholders' equity was $7,763,000 compared to $7,455,000 as of December 31, 2009, an increase of $308,000.

Assaf Ran, Chairman of the Board and CEO stated, "I am pleased with our achievements for the year 2010, although we experienced a temporary slow down in the fourth quarter due to a significant amount of payoffs. These proceeds were redeployed by the end of the quarter and the beginning of the first quarter of 2011, and therefore the Company is back on a growth track."

"We have recently made some more achievements in regards to leveraging and structuring more joint ventures," added Mr. Ran.

Manhattan Bridge Capital, Inc., offers short-term loans to real estate investors (also known as hard money) to fund their acquisition and construction of properties located in New York Metropolitan area. Currently, our customers' purchases are often from banks or distressed sellers. Substantially all of our loans are secured by first mortgages on the acquired real estate. In addition, the principals of our corporate borrowers personally guaranty the loans and, as additional collateral and protection, pledge the borrower's stock. 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, 2010 and 2009
     
  2010 2009
     
Assets    
Current assets:    
Cash and cash equivalents  $386,023 $707,449
Investment in marketable securities -- 404,268
Total cash and cash equivalents and investment in

marketable securities at fair value
386,023 1,111,717
     
Short term loans 8,156,293 6,476,621
Interest receivable on short term loans 91,593 60,207
Other current assets 13,427 26,568
Total current assets 8,647,336 7,675,113
     
Property and equipment, net  2,425 5,458
Security deposit 17,515 17,515
Investment in privately held company, at cost 100,000 100,000
Deferred financing costs 109,183 --
     
Total assets $8,876,459 $7,798,086
     
Liabilities and Shareholders' Equity  
Current liabilities:    
Line of credit $300,000 $ --
Accounts payable and accrued expenses 56,405 77,768
Deferred origination fees 76,428 102,751
Income taxes payable 180,513 162,182
Total current liabilities 613,346 342,701
Long term liabilities:    
Senior secured notes 500,000 --
Total liabilities 1,113,346 342,701
     
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 issued; 3,324,459 outstanding at December 31, 2010

and 2009
3,405 3,405
Additional paid-in capital 9,588,849 9,476,762
Treasury stock, at cost - 80,731 common shares at December 31,

2010 and 2009
(241,400) (241,400)
Accumulated other comprehensive income  -- 123,823
Accumulated deficit (1,587,741) (1,907,205)
Total shareholders' equity 7,763,113 7,455,385
     
Total liabilities and shareholders' equity $8,876,459 $7,798,086
 
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009
 
    2010    2009
Interest income from short term loans $993,601 $839,802
Origination fees 216,058 199,023
Total Revenue 1,209,659 1,038,825
Operating costs and expenses:    
Interest expense on lines of credit used 28,527 --
Referral fees 11,981 --
General and administrative expenses 783,231 673,221
Total operating costs and expenses 823,739 673,221
     
Income from operations 385,920 365,604
     
Interest and dividend income 4,972 24,210
Realized net loss on marketable securities -- (5,940)
Realized gain on marketable securities that were previously

marked down
 

151,419
 

10,653
Other income -- 15,000
Total other income 156,391 43,923
Income from operations before income tax expense  542,311  409,527
Income tax expense (222,847) (173,780)
Net income  $319,464  $235,747
     
Basic and diluted net income per common share outstanding:    
--Basic $0.10 $0.07
--Diluted $0.09 $0.07
Weighted average number of common shares outstanding    
--Basic 3,324,459 3,325,566
--Diluted 3,372,289 3,330,315
 
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009
 
   Common Stock





 
 Additional 

Paid-in

 Capital
   Treasury Stock





 
 Accumulated

Other

Comprehensive

Income (Loss)
 Accumulated

Deficit
Totals





 
             
  Shares Amount   Shares Cost      
Balance, January 1, 2009 3,405,190 $3,405 $9,399,861 79,430  $(239,944) $(30,088)  $(2,142,952) $6,990,282
Non cash compensation     76,901         76,901
Treasury Shares       1,301 (1,456)     (1,456)
Unrealized gain on preferred

stocks and other marketable

securities
           

 

153,911
   

 

153,911
Net income for the year

ended December 31, 2009
             

235,747
 

235,747
Total comprehensive income                389,658
Balance, December 31, 2009 3,405,190 3,405 9,476,762 80,731  (241,400) 123,823  (1,907,205) 7,455,385
Non cash compensation     72,443         72,443
Warrants granted     11,683         11,683
Forgiveness of debt     27,961         27,961
Effect of sale of remaining

marketable securities
         

(123,823)
 

(123,823)
Net income for the year

ended December 31, 2010
             

319,464
 

319,464
Total comprehensive income                195,641
Balance, December 31, 2010 3,405,190 $3,405 $9,588,849 80,731 $(241,400) $ -- $(1,587,741) $7,763,113
 
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009
 
  2010 2009
Cash flows from operating activities:    
Net income  $319,464  $235,747
Adjustments to reconcile net income to net cash provided by operating

activities -
   
Depreciation 3,033 3,963
Non cash compensation expense 72,443 76,901
Realized gain on marketable securities that were previously marked

down
 

(151,419)
 

(10,653)
Realized loss on sale of marketable securities, net -- 5,940
Changes in operating assets and liabilities    
Interest receivable on short term commercial loans (31,386) 19,467
Other current assets 13,141 (17,755)
Accounts payable and accrued expenses 6,598 (52,607)
Deferred origination fees (26,323) 49,645
Due from purchasers -- 23,881
Income taxes payable 18,331 151,078
Net cash provided by operating activities 223,882 485,607
     
Cash flows from investing activities:    
Proceeds from sale of marketable securities 431,864 253,563
Short term commercial loans made (6,141,593) (7,204,229)
Collections received from short term commercial loans 4,461,921 6,289,668
Net cash used in investing activities (1,247,808) (660,998)
 

Cash flows from financing activities:
   
Purchase of treasury stock -- (1,456)
Credit line used, net 300,000 --
Proceeds from issuance of senior secured notes 500,000 --
Deferred financing costs on senior secured notes (97,500) --
Net cash provided by (used in) financing activities 702,500 (1,456)
     
Net decrease in cash and cash equivalents (321,426) (176,847)
     
Cash and cash equivalents, beginning of year 707,449 884,296
     
Cash and cash equivalents, end of year $386,023 $707,449
     
Supplemental Cash Flow Information:    
Taxes paid during the year $203,669 $30,753
Interest paid during the year $28,527 $1,234
 

Non-cash investing and financing activities:
   
Forgiveness of debt by related party $27,961 $ --
Warrants issued in connection with issuance of senior secured notes $11,683 $ --
CONTACT: Assaf Ran, CEO
         Inbar Evron-Yogev, CFO
         inbar@manhattanbridgecapital.com
         (212) 489-6800

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