Manhattan Bridge Capital, Inc. Reports Results for Fiscal Year 2012 NEW YORK, March 22, 2013 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq:LOAN) Manhattan Bridge Capital, Inc. announced today that total revenue for the year ended December 31, 2012 was $1,816,000 compared to $1,400,000 for the year ended December 31, 2011, an increase of $416,000 or 29.7%. The increase in revenue represents an increase in lending operations. In 2012, $1,476,000 of the Company's revenue represents interest income on secured, commercial loans that the Company offers to small businesses compared to $1,142,000 in 2011, and $340,000 represents origination fees on such loans compared to $259,000 in 2011. Total operating costs and expenses for the year ended December 31, 2012 were $1,151,000 compared to $1,031,000 for the year ended December 31, 2011, an increase of $120,000 or 11.6%. This increase in operating costs and expenses is primarily attributable to an increase in interest and amortization of debt service costs of approximately $124,000, which is primarily attributable to the Company's receipt of short term loans and a line of credit in order to increase its ability to make loans. Net income for the year ended December 31, 2012 was $0.09 per basic share and per diluted share (based on 4.320 million shares and 4.326 million shares, respectively), or $389,000, versus $0.07 per basic share and per diluted share (based on 3.634 million shares and 3.646 million shares, respectively), or $257,000 for the year ended December 31, 2011. This increase is primarily attributable to an increase in revenue, offset by increases in interest and amortization of debt service costs and in income tax expense. As of December 31, 2012 total shareholders' equity was $8,479,000 compared to $8,088,000 as of December 31, 2011, an increase of $391,000. Assaf Ran, Chairman of the Board and CEO, stated, "Our performance during the year 2012 reflects consistency of responsible growth in revenue as we are firmly keeping costs low in order to enhance net earnings. Once again, we have successfully avoided defaults." "In 2012 we also became bankable, and established a line of credit with Sterling National Bank. This is an outstanding achievement, in times when lenders are usually not able to receive conventional bank financing," added Mr. Ran. Manhattan Bridge Capital, Inc., offers short-term, secured, non-banking 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. The loans are principally secured by collateral consisting of real estate and, generally, accompanied by personal guarantees from the principals of the 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 SHEETS December 31, 2012 and 2011 Assets 2012 2011 Current assets: Cash and cash equivalents $ 240,693 $ 221,905 Short term loans receivable 11,022,866 6,916,090 Interest receivable on loans 160,342 109,905 Other current assets 18,903 16,463 Total current assets 11,442,804 7,264,363 Investment in real estate 146,821 146,821 Long term loans receivable 2,601,500 2,498,262 Property and equipment, net 0 588 Security deposit 6,491 6,349 Investment in privately held company, at cost 100,000 100,000 Deferred financing costs 41,735 72,788 Total assets $ 14,339,351 $ 10,089,171 Liabilities and Stockholders' Equity Current liabilities: Short term loans $1,399,465 $1,159,465 Line of credit 3,500,000 -- Senior secured notes 500,000 -- Accounts payable and accrued expenses 70,403 60,072 Deferred origination fees 122,242 112,780 Income taxes payable 268,256 168,786 Total current liabilities 5,860,366 1,501,103 Long term liabilities: Senior secured notes -- 500,000 Total liabilities 5,860,366 2,001,103 Commitments and contingencies Stockholders' 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; 4,298,059 and 4,405 4,405 4,324,459 outstanding Additional paid-in capital 9,687,159 9,656,280 Treasury stock, at cost - 107,131 and 80,731 shares (269,972) (241,400) Accumulated deficit (942,607) (1,331,217) Total stockholders' equity 8,478,985 8,088,068 Total liabilities and stockholders' equity $ 14,339,351 $ 10,089,171 MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 2012 and 2011 2012 2011 Interest income from loans $ 1,475,800 $ 1,141,531 Origination fees 339,767 258,917 Total Revenue 1,815,567 1,400,448 Operating costs and expenses: Interest and amortization of debt service costs 280,654 156,769 Referral fees 6,133 7,897 General and administrative expenses 864,398 866,705 Total operating costs and expenses 1,151,185 1,031,371 Income from operations 664,382 369,077 Other income 27,548 79,329 Income before income tax expense 691,930 448,406 Income tax expense (303,320) (191,882) Net income $388,610 $256,524 Basic and diluted net income per common share outstanding: --Basic $0.09 $0.07 --Diluted $0.09 $0.07 Weighted average number of common shares outstanding --Basic 4,320,050 3,634,048 --Diluted 4,326,329 3,646,074 MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY FOR THE YEARS ENDED DECEMBER 31, 2012 and 2011 Additional Accumulated Common Stock Paid-in Treasury Stock Deficit Totals Capital Shares Amount Shares Cost Balance, January 1, 3,405,190 $3,405 $9,588,849 80,731 $(241,400) $(1,587,741) $7,763,113 2011 Non cash 68,431 68,431 compensation Grant of restricted 1,000,000 1,000 (1,000) shares Net incomefor the year ended 256,524 256,524 December 31, 2011 Balance, December 31, 4,405,190 4,405 9,656,280 80,731 (241,400) (1,331,217) 8,088,068 2011 Non cash 30,879 30,879 compensation Purchase of treasury 26,400 (28,572) (28,572) shares Net incomefor the year ended 388,610 388,610 December 31, 2012 Balance, December 31, 4,405,190 $4,405 $9,687,159 107,131 $(269,972) $(942,607) $8,478,985 2012 MANHATTAN BRIDGE CAPITAL, INC.AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2012 and 2011 2012 2011 Cash flows from operating activities: Net income $ 388,610 $ 256,524 Adjustments to reconcile net income to net cash provided by operating activities -- Amortization of deferred financing costs 47,078 36,395 Depreciation 588 1,837 Non cash compensation expense 30,879 68,431 Changes in operating assets and liabilities Interest receivable on loans (50,437) (18,312) Other current and non current assets (2,582) 8,130 Accounts payable and accrued expenses 10,331 3,667 Deferred origination fees 9,462 36,352 Income taxes payable 99,470 (11,727) Net cash provided by operating activities 533,399 381,297 Cash flows from investing activities: Investment in real estate (net of proceeds of -- (146,821) $528,179 from partial exercises of options) Issuance of short term loans (15,173,500) (8,512,537) Collections received from loans 10,963,486 7,254,478 Net cash used in investing activities (4,210,014) (1,404,880) Cash flows from financing activities: Proceeds from loans and line of credit, net 3,740,000 859,465 Purchase of treasury shares (28,572) -- Deferred financing costs incurred (16,025) -- Net cash provided by financing activities 3,695,403 859,465 Net increase (decrease) in cash and cash equivalents 18,788 (164,118) Cash and cash equivalents, beginning of year 221,905 386,023 Cash and cash equivalents, end of year $ 240,693 $ 221,905 Supplemental Cash Flow Information: Taxes paid during the year $203,850 $203,727 Interest paid during the year $234,835 $120,375 CONTACT: Assaf Ran, CEO Vanessa Kao, CFO (516) 444-3400
Manhattan Bridge Capital, Inc. Reports Results for Fiscal Year 2012
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