Manhattan Bridge Capital (LOAN) Reports Q1 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; 4,275,459 and 4,298,059 outstanding	4,412	4,405
Additional paid-in capital	9,695,257	9,687,159
Treasury stock, at cost – 136,731 and 107,131 shares	(307,796)	(269,972)
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 by operating 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 activities	(21,412)	70,947
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 activities	1,090,366	(516,219)
Cash flows from financing activities:
(Repayments of) proceeds from loans and line of credit, net	(1,040,000)	265,000
Purchase of treasury shares	(37,824)	—
Proceeds from exercise of stock options	4,690	—
Net cash (used in) provided by financing activities	(1,073,134)	265,000
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