LONG ISLAND, N.Y., May 8, 2012 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq:LOAN) announced today that total revenues for the three month period ended March 31, 2012 were approximately $392,000 compared to approximately $339,000 for the three month period ended March 31, 2011, an increase of $53,000 or 15.6%. The increase in revenue represents an increase in lending operations. In 2012, approximately $308,000 of our revenue represents interest income on secured, commercial loans that we offer to small businesses compared to approximately $282,000 for the same period in 2011, and approximately $84,000 represents origination fees on such loans compared to approximately $56,000 for the same period in 2011.
Income from operations for the period ended March 31, 2012 was approximately $181,000 compared to approximately $135,000 for the three month period ended March 31, 2011, an increase of $46,000 or 34%. This increase in income from operations is primarily attributable to an increase in revenue and decreases in operating expenses, offset by an increase in interest expense resulting from the Company's receipt of short term loans in order to increase our ability to make loans.
Net income for the three month period ended March 31, 2012 was $0.03 per basic and diluted share (based on 3.886 million shares and 3.894 million shares, respectively), or approximately $115,000 versus net income of $0.02 per basic and diluted share (based on 3.324 million shares and 3.396 million shares, respectively) or approximately $81,000 for the period ended March 31, 2011, an increase of approximately $34,000.
As of March 31, 2012 total shareholders' equity was approximately $8,206,000 compared to approximately $8,088,000 as of December 31, 2011, an increase of $118,000.
Assaf Ran, Chairman of the Board and CEO stated, "I'm pleased with our performance in the first quarter of 2012. The results represent continued modest but stable organic growth, as we have demonstrated in the past several years."
"I am confident that the $3.5 million line of credit transaction that we closed last week will allow us to expedite our growth even further," 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 | ||
| March 31, 2012 | December 31, 2011 | |
| Assets | (unaudited) | (audited) |
| Current assets: | ||
| Cash and cash equivalents | $ 41,633 | $ 221,905 |
| Short term loans receivable | 7,373,980 | 6,916,090 |
| Interest receivable on loans | 112,728 | 109,905 |
| Other current assets | 52,745 | 16,463 |
| Total current assets | 7,581,086 | 7,264,363 |
| Investment in real estate | 146,821 | 146,821 |
| Long term loans receivable | 2,556,591 | 2,498,262 |
| Property and equipment, net | 427 | 588 |
| Security deposit | 6,349 | 6,349 |
| Investment in privately held company, at cost | 100,000 | 100,000 |
| Deferred financing costs | 63,690 | 72,788 |
| Total assets | $ 10,454,964 | $ 10,089,171 |
| Liabilities and Shareholders' Equity | ||
| Current liabilities: | ||
| Short term loans | $ 1,159,465 | $ 1,159,465 |
| Short term loans (related party) | 265,000 | -- |
| Accounts payable and accrued expenses | 70,776 | 60,072 |
| Deferred origination fees | 107,035 | 112,780 |
| Income taxes payable | 146,236 | 168,786 |
| Total current liabilities | 1,748,512 | 1,501,103 |
| Long term liabilities: | ||
| Senior secured notes | 500,000 | 500,000 |
| Total liabilities | 2,248,512 | 2,001,103 |
| 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; 4,405,190 issued and 4,324,459 outstanding | 4,405 | 4,405 |
| Additional paid-in capital | 9,659,696 | 9,656,280 |
| Treasury stock, at cost- 80,731 shares | (241,400) | (241,400) |
| Accumulated deficit | (1,216,249) | (1,331,217) |
| Total shareholders' equity | 8,206,452 | 8,088,068 |
| Total liabilities and shareholders' equity | $ 10,454,964 | $ 10,089,171 |
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES | ||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||
| (unaudited) | ||
| Three Months Ended March 31, | ||
| 2012 | 2011 | |
| Interest income from loans | $ 307,602 | $ 282,365 |
| Origination fees | 84,224 | 56,436 |
| Total revenue | 391,826 | 338,801 |
| Operating costs and expenses: | ||
| Interest and amortization of debt service costs | 41,141 | 25,775 |
| Referral fees | 2,129 | 648 |
| General and administrative expenses | 167,976 | 176,970 |
| Total operating costs and expenses | 211,246 | 203,393 |
| Income from operations | 180,580 | 135,408 |
| Other income | 6,887 | 7,410 |
| Income from operations before income tax expense | 187,467 | 142,818 |
| Income tax expense | (72,500) | (62,000) |
| Net income | $ 114,967 | $ 80,818 |
| Basic and diluted net income per common share outstanding: | ||
| --Basic | $ 0.03 | $ 0.02 |
| --Diluted | $ 0.03 | $ 0.02 |
| Weighted average number of common shares outstanding: | ||
| --Basic | 3,886,103 | 3,324,459 |
| --Diluted | 3,893,642 | 3,395,825 |
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES | ||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| (unaudited) | ||
| Three Months ended March 31, | ||
| 2012 | 2011 | |
| Cash flows from operating activities: | ||
| Net income | $ 114,967 | $ 80,818 |
| Adjustments to reconcile net income to net cash provided by operating activities -- | ||
| Amortization of deferred financing costs | 9,099 | 9,099 |
| Depreciation | 161 | 758 |
| Non cash compensation expense | 3,416 | 11,250 |
| Changes in operating assets and liabilities: | ||
| Interest receivable on loans | (2,823) | (21,005) |
| Other current and non current assets | (36,281) | (15,652) |
| Accounts payable and accrued expenses | 10,704 | 2,101 |
| Deferred origination fees | (5,745) | 5,801 |
| Income taxes payable | (22,551) | (38,001) |
| Net cash provided by operating activities | 70,947 | 35,169 |
| Cash flows from investing activities: | ||
| Investment in real estate | -- | (675,000) |
| Issuance of short term loans | (2,776,500) | (1,275,129) |
| Collections received from loans | 2,260,281 | 1,158,000 |
| Net cash used in investing activities | (516,219) | (792,129) |
| Cash flows from financing activities: | ||
| Proceeds from loans and line of credit, net | 265,000 | 603,845 |
| Net cash provided by financing activities | 265,000 | 603,845 |
| Net decrease in cash and cash equivalents | (180,272) | (153,115) |
| Cash and cash equivalents, beginning of period | 221,905 | 386,023 |
| Cash and cash equivalents, end of period | $ 41,633 | $ 232,908 |
| Supplemental Cash Flow Information: | ||
| Taxes paid during the period | $ 95,050 | $ 100,001 |
| Interest paid during the period | $ 32,042 | $ 16,676 |