NEW YORK, May 12, 2011 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq:LOAN) announced today that total revenues for the three month period ended March 31, 2011 were approximately $339,000 compared to approximately $291,000 for the three month period ended March 31, 2010, an increase of $48,000 or 16%. In 2011, $282,000 of the Company's revenue represented interest income on the short-term, secured, non-banking loans that the Company offers to real estate investors, compared to $236,000 for the same period in 2010, and $56,000 represents origination fees on such loans, compared to $55,000 for the same period in 2010. The increase in revenue represents an increase in lending operations.
Income from operations for the period ended March 31, 2011 was approximately $135,000 compared to approximately $144,000 for the three month period ended March 31, 2010, a decrease of $9,000 or 6%. This decrease in income from operations resulted mainly from an increase in operating costs and expenses of $56,000, primarily attributable to an increase in payroll expenses due to restoration of our CEO's salary in June 2010, offset by an increase in revenue from short-term secured commercial loans of $48,000.
Net income for the three month period ended March 31, 2011 was $0.02 per basic and diluted share (based on 3.324 million shares and 3.396 million shares, respectively), or $80,818 versus net income of $0.04 per basic and diluted share (based on 3.324 million shares and 3.365 million shares, respectively) or $140,592 for the period ended March 31, 2010, a decrease of approximately $60,000. This decrease in net income is mainly due to decrease in other income due to the realized gains on the sale of marketable securities that were previously marked down, which were recorded in the period ended March 31, 2010, in the amount of $55,000 and increases in operating costs and expenses, offset by increase in revenue.
As of March 31, 2011 total shareholders' equity was $7,855,000 compared to $7,763,000 as of December 31, 2010, an increase of $92,000.
Assaf Ran, Chairman of the Board and CEO, stated, "I'm pleased with our consistent growth in revenues, with our achievement in regards to increase in our lines of credit and with the further increase of our book value."
"I am confident in our ability to maintain the path of growth as we are stabilizing our position as a leading short-term lender to small real estate investors in the New York Metropolitan area," 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 the 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:
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.
CONTACT: Assaf Ran, CEO Inbar Evron-Yogev, CFO (212) 489-6800