NEW YORK, March 21, 2012 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq:LOAN) announced today that total revenue for the year ended December 31, 2011 was $1,400,000 compared to $1,210,000 for the year ended December 31, 2010, an increase of $190,000 or 15.7%. The increase in revenue represents an increase in lending operations. In 2011, $1,142,000 of the Company's revenue represents interest income on secured, commercial loans that the Company offers to small businesses compared to $994,000 in 2010, and $259,000 represents origination fees on such loans compared to $216,000 in 2010.
Total operating costs and expenses for the year ended December 31, 2011 were $1,031,000 compared to $824,000 for the year ended December 31, 2010, an increase of $207,000 or 25.1%. This increase in operating costs and expenses is primarily attributable to an increase in interest and amortization of debt service costs of approximately $128,000, and to net increases in payroll expenses of approximately $54,000 primarily resulting from the restoration of our CEO's salary in June 2010 and an increase in legal fees of approximately $22,000, offset by the decrease in office rent of approximately $20,000.
Net income for the year ended December 31, 2011 was $0.07 per basic share and per diluted share (based on 3.634 million shares and 3.646 million shares, respectively), or $257,000, versus $0.10 per basic share and $0.09 per diluted share (based on 3.324 million shares and 3.372 million shares, respectively), or $319,000 for the year ended December 31, 2010. This decrease is primarily attributable to an increase in operating costs and expenses and a decrease in other income, offset by an increase in revenue and a decrease in income tax expense.
As of December 31, 2011 total shareholders' equity was $8,088,000 compared to $7,763,000 as of December 31, 2010, an increase of $325,000.
Assaf Ran, Chairman of the Board and CEO stated, "During 2011, the Company maintained its clean track record of having no defaults. While continually growing our portfolio and revenues, we have taken a number of measures in the second half of 2011 in order to reduce our operating costs and expenses, such as moving our headquarter outside of New York City, thus lowering our rent and local taxes, and exchanging my options for long-term restricted stock. These measures will have more of an impact on 2012 results."
"As we continue to grow, our key challenge is to arrange a significant line of credit from a conventional commercial bank. We are focused on achieving this goal," 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, 2011 and 2010 | ||
| 2011 | 2010 | |
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $ 221,905 | $ 386,023 |
| Short term loans receivable | 6,916,090 | 8,156,293 |
| Interest receivable on loans | 109,905 | 91,593 |
| Other current assets | 16,463 | 13,427 |
| Total current assets | 7,264,363 | 8,647,336 |
| Investment in real estate | 146,821 | -- |
| Long term loans receivable | 2,498,262 | -- |
| Property and equipment, net | 588 | 2,425 |
| Security deposit | 6,349 | 17,515 |
| Investment in privately held company, at cost | 100,000 | 100,000 |
| Deferred financing costs | 72,788 | 109,183 |
Total assets | $ 10,089,171 | $ 8,876,459 |
| Liabilities and Shareholders' Equity | ||
| Current liabilities: | ||
| Short term loans and line of credit | $ 1,159,465 | $ 300,000 |
| Accounts payable and accrued expenses | 60,072 | 56,405 |
| Deferred origination fees | 112,780 | 76,428 |
| Income taxes payable | 168,786 | 180,513 |
| Total current liabilities | 1,501,103 | 613,346 |
| Long term liabilities: | ||
| Senior secured notes | 500,000 | 500,000 |
| Total liabilities | 2,001,103 | 1,113,346 |
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 and 3,405,190 issued and 4,324,459 and 3,324,459 outstanding | 4,405 | 3,405 |
| Additional paid-in capital | 9,656,280 | 9,588,849 |
| Treasury stock, at cost- 80,731 shares | (241,400) | (241,400) |
| Accumulated deficit | (1,331,217) | (1,587,741) |
| Total shareholders' equity | 8,088,068 | 7,763,113 |
Total liabilities and shareholders' equity | $ 10,089,171 | $ 8,876,459 |
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010 | ||
| 2011 | 2010 | |
| Interest income from loans | $ 1,141,531 | $ 993,601 |
| Origination fees | 258,917 | 216,058 |
| Total Revenue | 1,400,448 | 1,209,659 |
| Operating costs and expenses: | ||
| Interest and amortization of debt service costs | 156,769 | 28,527 |
| Referral fees | 7,897 | 11,981 |
| General and administrative expenses | 866,705 | 783,231 |
| Total operating costs and expenses | 1,031,371 | 823,739 |
| Income from operations | 369,077 | 385,920 |
| Interest and dividend income | -- | 4,972 |
| Realized gain on marketable securities that were previously marked down | -- | 151,419 |
| Other income | 79,329 | -- |
| Total other income | 79,329 | 156,391 |
| Income from operations before income tax expense | 448,406 | 542,311 |
| Income tax expense | (191,882) | (222,847) |
| Net income | $ 256,524 | $ 319,464 |
| Basic and diluted net income per common share outstanding: | ||
| --Basic | $0.07 | $0.10 |
| --Diluted | $0.07 | $0.09 |
| Weighted average number of common shares outstanding | ||
| --Basic | 3,634,048 | 3,324,459 |
| --Diluted | 3,646,074 | 3,372,289 |
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010 | ||||||||
| Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Totals | |||
| Shares | Amount | Shares | Cost | |||||
| Balance, January 1, 2010 | 3,405,190 | $3,405 | $9,476,762 | 80,731 | $(241,400) | $123,823 | $(1,907,205) | $7,455,385 |
| Non cash compensation | 72,443 | 72,443 | ||||||
| Warrants granted | 11,683 | 11,683 | ||||||
| Forgiveness of debt | 27,961 | 27,961 | ||||||
| Effect of sale of remaining marketable securities | (123,823) | (123,823) | ||||||
| Net income for the year ended December 31, 2010 | 319,464 | 319,464 | ||||||
| Total comprehensive income | 195,641 | |||||||
| Balance, December 31, 2010 | 3,405,190 | 3,405 | 9,588,849 | 80,731 | (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, 2011 | 4,405,190 | $4,405 | $9,656,280 | 80,731 | $(241,400) | $-- | $(1,331,217) | $8,088,068 |
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010 | ||
| 2011 | 2010 | |
| Cash flows from operating activities: | ||
| Net income | $ 256,524 | $ 319,464 |
| Adjustments to reconcile net income to net cash provided by operating activities -- | ||
| Amortization of deferred financing costs | 36,395 | -- |
| Depreciation | 1,837 | 3,033 |
| Non cash compensation expense | 68,431 | 72,443 |
| Realized gain on marketable securities that were previously marked down | -- | (151,419) |
| Changes in operating assets and liabilities | ||
| Interest receivable on loans | (18,312) | (31,386) |
| Other current and non current assets | 8,130 | 13,141 |
| Accounts payable and accrued expenses | 3,667 | 6,598 |
| Deferred origination fees | 36,352 | (26,323) |
| Income taxes payable | (11,727) | 18,331 |
| Net cash provided by operating activities | 381,297 | 223,882 |
| Cash flows from investing activities: | ||
| Proceeds from sale of marketable securities | -- | 431,864 |
| Investment in real estate (net of proceeds of $528,179 from partial exercises of options) | (146,821) | -- |
| Issuance of short term loans | (8,512,537) | (6,141,593) |
| Collections received from loans | 7,254,478 | 4,461,921 |
| Net cash used in investing activities | (1,404,880) | (1,247,808) |
Cash flows from financing activities: | ||
| Proceeds from loans and line of credit, net | 859,465 | 300,000 |
| Proceeds from issuance of senior secured notes | -- | 500,000 |
| Deferred financing costs on senior secured notes | -- | (97,500) |
| Net cash provided by financing activities | 859,465 | 702,500 |
| Net decrease in cash and cash equivalents | (164,118) | (321,426) |
| Cash and cash equivalents, beginning of year | 386,023 | 707,449 |
| Cash and cash equivalents, end of year | $ 221,905 | $ 386,023 |
| Supplemental Cash Flow Information: | ||
| Taxes paid during the year | $203,727 | $203,669 |
| Interest paid during the year | $120,375 | $28,527 |
Non-cash investing and financing activities: | ||
| Forgiveness of debt by related party | -- | $27,961 |
| Warrants issued in connection with issuance of senior secured notes | -- | $11,683 |
CONTACT: Assaf Ran, CEO
Vanessa Kao, CFO
(516) 444-3400