NEW YORK, Oct. 27, 2010 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq:LOAN) announced today that total revenues for the three month period ended September 30, 2010 were approximately $306,000 compared to approximately $289,000 for the three month period ended September 30, 2009, an increase of $17,000 or 5.9%. The increase in revenue represents an increase in lending operations. For the three month period ended September 30, 2010, $256,000 of our revenue represents interest income on the short term secured commercial loans that we offer to small businesses compared to $235,000 for the same period in 2009, and $51,000 represents origination fees on such loans compared to $54,000 for the same period in 2009.
Net income for the three month period ended September 30, 2010 was $0.02 per basic and diluted share (based on 3.324 million shares and 3.380 million shares, respectively), or $56,854, versus net income of $0.03 per basic and diluted share (based on 3.326 million shares and 3.334 million shares, respectively) or $83,593 for the three month period ended September 30, 2009. This decrease in net income was mainly due to an increase in operating costs and expenses primarily due to increase in payroll expenses and an increase in income tax expense, offset by an increase in revenues.
As of September 30, 2010 total shareholders' equity was $7,771,000 compared to $7,701,000 as of June 30, 2010 and $7,455,000 as of December 31, 2009.
Total revenues for the nine month period ended September 30, 2010 were approximately $913,000 compared to approximately $770,000 for the nine month period ended September 30, 2009, an increase of $143,000, or 18.6%. The increase in revenue represents an increase in lending operations. Revenue of approximately $752,000 for the nine month period ended September 30, 2010, compared to approximately $633,000 for the same period in 2009, represents interest income on the short term secured commercial loans that we offer to small businesses, and $161,000 represents origination fees on such loans compared to $137,000 for the same period in 2009.
Net income for the nine month period ended September 30, 2010 was $0.11 per basic and $0.10 per diluted share (based on 3.324 million shares and 3.372 million shares, respectively), or $352,387, versus net income of $0.07 per basic and diluted share (based on 3.326 million shares and 3.327 million shares, respectively) or $229,203 for the same period in 2009, an increase of approximately $123,000. This increase in net income is mainly due to increases in revenue and other income, offset by increases in operating costs and expenses and income tax expense.
Assaf Ran, Chairman of the Board and CEO, stated, "During the third quarter, the company experienced an unusual rate of pay offs (principal returns). While this is a supportive sign that our loan approval system is working fine, it caused a temporary slow down in our growth pace. We have increased our sales and marketing efforts but never compromised our strict underwriting standards."
"In addition, the company is making preparations to relocate its headquarters outside of NYC to Great Neck, NY, in order to reduce its tax liability," added Mr. Ran.
Manhattan Bridge Capital, Inc. offers short-term loans to real estate investors (also known as hard money) to fund their acquisition of properties located in New York Metro 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: Manhattan Bridge Capital, Inc. Assaf Ran, CEO Inbar Evron-Yogev, CFO (212) 489-6800