Manhattan Bridge Capital, Inc. Reports First Quarter Results: 36.2% Increase in Revenue LONG ISLAND, N.Y., May 3, 2013 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq:LOAN) Total revenues for the three month period ended March 31, 2013 were approximately $534,000 compared to approximately $392,000 for the three month period ended March 31, 2012, an increase of $142,000 or 36.2%. The increase in revenue represents an increase in lending operations. In 2013, approximately $445,000 of our revenue represents interest income on secured, commercial loans that we offer to small businesses compared to approximately $308,000 for the same period in 2012, and approximately $90,000 represents origination fees on such loans compared to approximately $84,000 for the same period in 2012. Income from operations for the three month period ended March 31, 2013 was approximately $258,000 compared to approximately $181,000 for the three month period ended March 31, 2012, an increase of $77,000 or 42.5%. This increase in income from operations is primarily attributable to an increase in revenue, offset by an increase in interest and amortization of debt service costs resulting from the Company's use of a line of credit in order to increase its ability to make loans. Net income for the three month period ended March 31, 2013 was $0.04 per basic and diluted share (based on 4.283 million shares and 4.296 million shares, respectively), or approximately $173,000 versus net income of $0.03 per basic and diluted share (based on 4.324 million shares and 4.332 million shares, respectively) or approximately $115,000 for the three month period ended March 31, 2012, an increase of approximately $58,000. As of March 31, 2013 total stockholders' equity was approximately $8,622,000 compared to approximately $8,479,000 as of December 31, 2012, an increase of $143,000. Assaf Ran, Chairman of the Board and CEO, stated, "The first quarter results represent once again our constant and safe pattern of growth. During that period our line of credit increased to $5,000,000, an increase that will secure further growth." 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 March 31,2013 December 31,2012 Assets (unaudited) (audited) Current assets: Cash and cash equivalents $236,513 $ 240,693 Short term loans receivable 9,198,000 11,022,866 Interest receivable on loans 147,653 160,342 Other current assets 41,560 18,903 Total current assets 9,623,726 11,442,804 Investment in real estate 146,821 146,821 Long term loans receivable 3,336,000 2,601,500 Security deposit 6,491 6,491 Investment in privately held company, at cost 100,000 100,000 Deferred financing costs 28,631 41,735 Total assets $ 13,241,669 $ 14,339,351 Liabilities and Stockholders' Equity Current liabilities: Short term loans $1,159,465 $1,399,465 Line of credit 2,700,000 3,500,000 Senior secured notes 500,000 500,000 Accounts payable and accrued expenses 57,630 70,403 Deferred origination fees 116,033 122,242 Income taxes payable 86,136 268,256 Total liabilities, all current 4,619,264 5,860,366 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; 4,412,190 and 4,405,190 issued; 4,412 4,405 4,275,459 and 4,298,059 outstanding Additional paid-in capital 9,695,257 9,687,159 Treasury stock, at cost - 136,731 and 107,131 (307,796) (269,972) shares Accumulated deficit (769,468) (942,607) Total stockholders' equity 8,622,405 8,478,985 Total liabilities and stockholders' equity $ 13,241,669 $ 14,339,351 MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) Three Months Ended March 31, 2013 2012 Interest income from loans $ 444,779 $ 307,602 Origination fees 89,582 84,224 Total revenue 534,361 391,826 Operating costs and expenses: Interest and amortization of debt service costs 102,646 41,141 Referral fees 596 2,129 General and administrative expenses 172,867 167,976 Total operating costs and expenses 276,109 211,246 Income from operations 258,252 180,580 Other income 6,887 6,887 Income before income tax expense 265,139 187,467 Income tax expense (92,000) (72,500) Net income $ 173,139 $ 114,967 Basic and diluted net income per common share outstanding: --Basic $ 0.04 $ 0.03 --Diluted $ 0.04 $ 0.03 Weighted average number of common shares outstanding: --Basic 4,283,218 4,324,459 --Diluted 4,295,658 4,331,998 MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) Three Months ended March 31, 2013 2012 Cash flows from operating activities: Net income $ 173,139 $ 114,967 Adjustments to reconcile net income to net cash (used in) provided byoperating activities -- Amortization of deferred financing costs 13,104 9,099 Depreciation 0 161 Non cash compensation expense 3,416 3,416 Changes in operating assets and liabilities: Interest receivable on loans 12,689 (2,823) Other current and non current assets (22,658) (36,281) Accounts payable and accrued expenses (12,773) 10,704 Deferred origination fees (6,209) (5,745) Income taxes payable (182,120) (22,551) Net cash (used in) provided by operating (21,412) 70,947 activities Cash flows from investing activities: Issuance of short term loans (2,853,500) (2,776,500) Collections received from loans 3,943,866 2,260,281 Net cash provided by (used in) investing 1,090,366 (516,219) activities Cash flows from financing activities: (Repayments of) proceeds from loans and line of (1,040,000) 265,000 credit, net Purchase of treasury shares (37,824) -- Proceeds from exercise of stock options 4,690 -- Net cash (used in) provided by financing (1,073,134) 265,000 activities Net decrease in cash and cash equivalents (4,180) (180,272) Cash and cash equivalents, beginning of period 240,693 221,905 Cash and cash equivalents, end of period $ 236,513 $41,633 Supplemental Cash Flow Information: Taxes paid during the period $ 274,120 $ 95,050 Interest paid during the period $89,541 $ 32,042 CONTACT: Assaf Ran, CEO Vanessa Kao, CFO (516) 444-3400
Manhattan Bridge Capital, Inc. Reports First Quarter Results: 36.2% Increase in Revenue
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