updated 5/13/2011 7:17:17 AM ET 2011-05-13T11:17:17

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: 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
     
Assets  March 31, 2011 December 31,2010
  (unaudited) (audited)
Current assets:    
Cash and cash equivalents  $232,908 $386,023
Total cash and cash equivalents 232,908 386,023
     
Short term loans 8,273,422 8,156,293
Interest receivable on short term loans 112,598 91,593
Other current assets 29,079 13,427
Total current assets 8,648,007 8,647,336
     
Investment in real estate 675,000 ------
Property and equipment, net  1,667 2,425
Security deposit 17,515 17,515
Investment in privately held company, at cost 100,000 100,000
Deferred financing costs 100,084 109,183
     
Total assets $9,542,273 $8,876,459
     
Liabilities and Shareholders' Equity    
Current liabilities:    
Short term loans and line of credit $903,845 $300,000
Accounts payable and accrued expenses 58,506 56,405
Deferred origination fees 82,229 76,428
Income taxes payable 142,512 180,513
Total liabilities, all current 1,187,092 613,346
Long term liabilities:    
Senior secured notes 500,000 500,000
Total liabilities 1,687,092 1,113,346
     
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 3,405 3,405
Additional paid-in capital 9,600,099 9,588,849
Treasury stock, at cost- 80,731 shares (241,400) (241,400)
Accumulated deficit (1,506,923) (1,587,741)
Total shareholders' equity 7,855,181 7,763,113
     
Total liabilities and shareholders' equity $9,542,273 $8,876,459

 

 
 
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
     
   Three Months Ended March 31,
  2011 2010
     
Interest income from short term loans $282,365 $236,203
Origination fees 56,436 54,971
Total revenue 338,801 291,174
     
Operating costs and expenses:    
Interest expense  16,676 5,134
General and administrative expenses 186,717 142,078
Total operating costs and expenses 203,393 147,212
     
Income from operations 135,408 143,962
     
Interest and dividend income ------ 3,344
Realized gain on marketable securities that were previously marked down  ------  55,286
Other income  7,410 ------
Total other income 7,410 58,630
     
Income from operations before income tax expense 142,818 202,592
Income tax expense (62,000) (62,000)
Net income  $80,818 $140,592
     
Basic and diluted net income per common share outstanding:    
---Basic $0.02 $0.04
---Diluted $0.02 $0.04
     
Weighted average number of common shares outstanding:    
---Basic 3,324,459 3,324,459
---Diluted 3,395,825 3,365,239

 

 
 
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
     
   Three Months ended March 31,
  2011 2010
     
Cash flows from operating activities:    
 Net income  $80,818 $140,592
Adjustments to reconcile net income to net cash provided by operating activities --
Amortization of deferred financing costs  9,099 ------
Depreciation  758 758
Non cash compensation expense 11,250 9,608
Realized gain on sale of marketable securities that were previously marked down ------ (55,286)
Changes in operating assets and liabilities:    
Interest receivable on short term commercial loans (21,005) 206
Other current assets (15,652) 9,800
Accounts payable and accrued expenses 2,101 32,241
Deferred origination fees 5,801 (12,217)
Income taxes payable (38,001) (38,440)
Net cash provided by operating activities 35,169 87,262
     
Cash flows from investing activities:    
Proceeds from sale of marketable securities ------ 263,442
Investment in real estate (675,000) ------
Short term commercial loans made (1,275,129) (2,149,000)
Collections received from short term commercial loans 1,158,000 743,921
Net cash used in investing activities (792,129) (1,141,637)
     
Cash flows from financing activities:    
Proceeds from loans and line of credit, net 603,845 458,434
Net cash provided by financing activities 603,845 458,434
     
Net decrease in cash and cash equivalents (153,115) (595,941)
Cash and cash equivalents, beginning of period 386,023 707,449
Cash and cash equivalents, end of period $232,908 $111,508
     
Supplemental Cash Flow Information:    
Taxes paid during the period $100,001 $100,440
Interest paid during the period $16,676 $5,134
CONTACT: Assaf Ran, CEO
         Inbar Evron-Yogev, CFO
         (212) 489-6800

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