March 22, 2013 at 16:30 PM EDT
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
 
Assets20122011
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 4,324,459 outstanding 4,405 4,405
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
Common StockAdditional Paid-in
Capital
Treasury StockAccumulated
Deficit
Totals
 
SharesAmountSharesCost
Balance, January 1, 20113,405,190$3,405$9,588,84980,731$(241,400)$(1,587,741)$7,763,113
Non cash compensation   68,431    68,431
Grant of restricted shares 1,000,000 1,000 (1,000)  
Net income for the year
ended December 31, 2011
     
 256,524

256,524
Balance, December 31, 20114,405,1904,4059,656,28080,731(241,400)(1,331,217)8,088,068
Non cash compensation   30,879    30,879
Purchase of treasury shares 26,400 (28,572) (28,572)
Net income for the year
ended December 31, 2012
     
 388,610

388,610
Balance, December 31, 20124,405,190$4,405$9,687,159107,131$(269,972)$(942,607)$8,478,985

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2012 and 2011
 
 20122011
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 $528,179 from partial exercises of options) -- (146,821)
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
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