Manhattan Bridge Capital, Inc. Reports Third Quarter Results

LONG ISLAND, N.Y., Oct. 30, 2013 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq:LOAN) announced today that total revenues for the three month period ended September 30, 2013 were approximately $585,000 compared to approximately $491,000 for the three month period ended September 30, 2012, an increase of $94,000 or 19.1%. The increase in revenue represents an increase in lending operations. For the three month periods ended September 30, 2013 and 2012, approximately $479,000 and $402,000, respectively, of our revenues were attributable to interest income on the secured commercial loans that we offer to small businesses, and approximately $106,000 and $89,000, respectively, of our revenues were attributable to origination fees on such loans.

Net income for the three month period ended September 30, 2013 was $0.05 per basic and diluted share (based on 4.263 million shares and 4.288 million shares, respectively), or $193,921, versus net income of $0.04 per basic and diluted share (based on 4.324 million shares and 4.327 million shares, respectively) or $161,600 for the three month period ended September 30, 2012, an increase of approximately $32,000. This increase in net income was mainly due to an increase in revenue and a decrease in general and administrative expenses, offset by an increase in interest and amortization of debt service costs.

As of September 30, 2013 total shareholders' equity was $8,864,000 compared to $8,722,000 as of June 30, 2013 and $8,479,000 as of December 31, 2012.

Total revenues for the nine month period ended September 30, 2013 were approximately $1,673,000 compared to approximately $1,298,000 for the nine month period ended September 30, 2012, an increase of $375,000, or 28.9%. The increase in revenue represents an increase in lending operations. For the nine month periods ended September 30, 2013 and 2012, revenues of approximately $1,371,000 and $1,042,000, respectively, were attributable to interest income on the secured commercial loans that we offer to small businesses, and approximately $302,000 and $256,000, respectively, were attributable to origination fees on such loans.

Net income for the nine month period ended September 30, 2013 was $0.12 per basic and diluted share (based on 4.274 million shares and 4.289 million shares, respectively), or $524,991, versus net income of $0.08 per basic share and diluted share (based on 4.324 million shares and 4.330 million shares, respectively) or $356,647 for the same period in 2012, an increase of approximately $168,000. This increase in net income was mainly due to an increase in revenue, offset by an increase in interest and amortization of debt service costs.

Assaf Ran, Chairman of the Board and CEO stated, "The results of the third quarter demonstrate an all-time record of revenue and net earnings for our lending operations, while we maintain a portfolio of performing loans which had never experienced a default."

"As the marketplace recovers and in some cases even exceeds the pre-2008 crisis levels, we enhance our risk control measures even more." added Mr. Ran.

Manhattan Bridge Capital, Inc., provides 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 New York Metropolitan area. 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
September 30, 2013 December 31, 2012
Assets (Unaudited) (audited)
Current assets:
Cash and cash equivalents $69,045 $240,693
Short term loans receivable 11,363,000 11,022,866
Interest receivable on loans 173,208 160,342
Other current assets 35,057 18,903
Total current assets 11,640,310 11,442,804
Investment in real estate 146,821 146,821
Long term loans receivable 4,037,000 2,601,500
Security deposit 6,637 6,491
Investment in privately held company, at cost 100,000 100,000
Deferred financing costs 9,099 41,735
Total assets $15,939,867 $14,339,351
Liabilities and Shareholders' Equity
Current liabilities:
Short term loans $1,319,465 $1,399,465
Line of credit 4,800,000 3,500,000
Senior secured notes 500,000 500,000
Accounts payable and accrued expenses 16,048 70,403
Deferred origination fees 160,392 122,242
Income taxes payable 280,219 268,256
Total liabilities, all current 7,076,124 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; 4,433,190 and 4,405,190 issued; 4,256,190 and 4,298,059 outstanding 4,433 4,405
Additional paid-in capital 9,731,718 9,687,159
Treasury stock, at cost – 177,000 and 107,131 shares (369,335) (269,972)
Accumulated deficit (503,073) (942,607)
Total stockholders' equity 8,863,743 8,478,985
Total liabilities and stockholders' equity $15,939,867 $14,339,351

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Nine Months
Ended September 30, Ended September 30,
2013 2012 2013 2012
Interest income from loans $479,118 $402,119 $1,371,420 $1,042,183
Origination fees 105,920 89,191 301,775 255,514
Total Revenue 585,038 491,310 1,673,195 1,297,697
Operating costs and expenses:
Interest and amortization of debt service costs 119,272 86,779 323,478 186,851
Referral fees 312 1,232 1,242 4,891
General and administrative expenses 172,420 183,586 550,145 547,769
Total operating costs and expenses 292,004 271,597 874,865 739,511
Income from operations 293,034 219,713 798,330 558,186
Other income 6,887 6,887 20,661 20,661
Income before income tax expense 299,921 226,600 818,991 578,847
Income tax expense (106,000) (65,000) (294,000) (222,200)
Net Income $193,921 $161,600 $524,991 $356,647
Basic and diluted net income per common share outstanding:
---Basic $0.05 $0.04 $0.12 $0.08
---Diluted $0.05 $0.04 $0.12 $0.08
Weighted average number of common shares outstanding
---Basic 4,263,194 4,324,258 4,273,544 4,324,392
---Diluted 4,287,698 4,327,305 4,289,225 4,330,435

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
Nine Months Ended September 30,
2013 2012
Cash flows from operating activities:
Net Income $524,991 $356,647
Adjustments to reconcile net income to net cash provided by operating activities --
Amortization of deferred financing costs 32,636 17,948
Depreciation --- 482
Non cash compensation expense 22,048 19,304
Changes in operating assets and liabilities:
Interest receivable on loans (12,866) (34,841)
Other current and non current assets (16,300) (37,770)
Accounts payable and accrued expenses (54,355) (46,362)
Deferred origination fees 38,150 15,993
Income taxes payable 11,963 21,470
Net cash provided by operating activities 546,267 312,871
Cash flows from investing activities:
Issuance of short term loans (12,020,500) (11,148,500)
Collections received from loans 10,244,866 7,874,691
Net cash used in investing activities (1,775,634) (3,273,809)
Cash flows from financing activities:
Proceeds from loans and line of credit, net 1,220,000 2,950,000
Purchase of treasury shares (99,363) (2,607)
Proceeds from exercise of stock options 22,540 ---
Dividend paid ($0.01 per share) (85,458) ---
Net cash provided by financing activities 1,057,719 2,947,393
Net decrease in cash and cash equivalents (171,648) (13,545)
Cash and cash equivalents, beginning of period 240,693 221,905
Cash and cash equivalents, end of period $69,045 $208,360
Supplemental Cash Flow Information:
Taxes paid during the period $282,037 $200,730
Interest paid during the period $290,840 $152,879

CONTACT: Assaf Ran, CEO Vanessa Kao, CFO (516) 444-3400Source:Manhattan Bridge Capital, Inc.