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Manhattan Bridge Capital, Inc. Doubles Net Earnings

LONG ISLAND, N.Y., July 31, 2013 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq:LOAN)

Manhattan Bridge Capital, Inc. announced today that its total revenue for the three month period ended June 30, 2013 was approximately $554,000 compared to approximately $415,000 for the three month period ended June 30, 2012, an increase of $139,000 or 33.5%. For the three month period ended June 30, 2013, approximately $448,000 of the Company's revenue represents interest income on the secured, commercial loans that the Company offers to small businesses compared to approximately $332,000 for the same period in 2012, and approximately $106,000 represents origination fees on such loans compared to approximately $82,000 for the same period in 2012. The increase in revenue represents an increase in lending operations.

Income from operations for the three month period ended June 30, 2013 was approximately $247,000 compared to approximately $158,000 for the same period ended June 30, 2012, an increase of $89,000 or 56.3%. This increase in income from operations resulted mainly from an increase in revenue, offset by an increase in interest and amortization of debt service costs.

Net income for the three month period ended June 30, 2013 was $0.04 per basic and diluted share (based on 4.275 million shares and 4.289 million shares), or $158,000, versus net income of $0.02 per basic and diluted share (based on 4.324 million shares and 4.331 million shares) or $80,000 for the three month period ended June 30, 2012. This increase in net income is mainly due to an increase in income from operations, offset by an increase in income tax expense.

Total revenue for the six month period ended June 30, 2013 was approximately $1,088,000 compared to approximately $806,000 for the six month period ended June 30, 2012, an increase of $282,000 or 35%. For the six month period ended June 30, 2013, approximately $892,000 of the Company's revenue represents interest income on the secured, commercial loans that the Company offers to small businesses compared to approximately $640,000 for the same period in 2012, and approximately $196,000 represents origination fees on such loans compared to approximately $166,000 for the same period in 2012. The increase in revenue represents an increase in lending operations.

Income from operations for the six month period ended June 30, 2013 was approximately $505,000 compared to approximately $338,000 for the same period ended June 30, 2012, an increase of $167,000 or 49.4%. This increase in income from operations resulted mainly from an increase in revenue, offset by an increase in interest and amortization of debt service costs.

Net income for the six month period ended June 30, 2013 was $0.08 per basic and diluted share (based on 4.279 million shares and 4.290 million shares), or $331,000, versus net income of $0.05 per basic and diluted share (based on 4.324 million shares and 4.332 million shares) or $195,000 for the same period in 2012, an increase of $136,000. This increase in net income is mainly due to an increase in income from operations, offset by an increase in income tax expense.

As of June 30, 2013 total shareholders' equity was approximately $8,722,000 compared to approximately $8,479,000 as of December 31, 2012, an increase of $243,000.

Assaf Ran, Chairman of the Board and CEO stated, "I'm pleased with the second quarter results. We continue to consistently increase revenue and net earnings, while maintaining our high quality standards."

Manhattan Bridge Capital, Inc. provides short term, secured, non-banking, commercial loans to small 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
June 30, 2013 December 31,2012
Assets (unaudited) (audited)
Current assets:
Cash and cash equivalents $ 1,094,373 $ 240,693
Short term loans receivable 10,790,000 11,022,866
Interest receivable on loans 160,418 160,342
Other current assets 51,105 18,903
Total current assets 12,095,896 11,442,804
Investment in real estate 146,821 146,821
Long term loans receivable 3,393,000 2,601,500
Security deposit 6,491 6,491
Investment in privately held company, at cost 100,000 100,000
Deferred financing costs 18,197 41,735
Total assets $ 15,760,405 $ 14,339,351
Liabilities and Stockholders' Equity
Current liabilities:
Short term loans $1,159,465 $1,399,465
Line of credit 5,000,000 3,500,000
Senior secured notes 500,000 500,000
Accounts payable and accrued expenses 19,766 70,403
Deferred origination fees 176,765 122,242
Income taxes payable 182,136 268,256
Total liabilities, all current 7,038,132 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; 4,270,190 and 4,298,059 outstanding 4,433 4,405
Additional paid-in capital 9,718,188 9,687,159
Treasury stock, at cost – 163,000 and 107,131 shares (346,025) (269,972)
Accumulated deficit (654,323) (942,607)
Total stockholders' equity 8,722,273 8,478,985
Total liabilities and stockholders' equity $ 15,760,405 $ 14,339,351

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Six Months
Ended June 30, Ended June 30,
2013 2012 2013 2012

Interest income from loans

$ 447,522

$ 332,462

$ 892,301

$ 640,064
Origination fees 106,273 82,099 195,855 166,323
Total Revenue 553,795 414,561 1,088,156 806,387
Operating costs and expenses:
Interest and amortization of debt service costs 101,560 58,932 204,206 100,074
Referral fees 334 1,530 929 3,659
General and administrative expenses 204,857 196,206 377,725 364,182
Total operating costs and expenses 306,751 256,668 582,860 467,915
Income from operations 247,044 157,893 505,296 338,472
Other income 6,887 6,887 13,774 13,774

Income before income tax expense
253,931 164,780 519,070 352,246
Income tax expense (96,000) (84,700) (188,000) (157,200)

Net Income
$ 157,931 $ 80,080 $ 331,070 $ 195,046
Basic and diluted net income per common share outstanding:
--Basic $ 0.04 $ 0.02 $ 0.08 $ 0.05
--Diluted $ 0.04 $ 0.02 $ 0.08 $ 0.05
Weighted average number of common shares outstanding
--Basic 4,274,562 4,324,459 4,278,868 4,324,459
--Diluted 4,289,134 4,331,140 4,289,988 4,332,322
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
Six Months
Ended June 30,
2013 2012
Cash flows from operating activities:
Net Income $ 331,070 $ 195,046
Adjustments to reconcile net income to net cash provided by operating activities --
Amortization of deferred financing costs 23,538 4,843
Depreciation --- 322
Non cash compensation expense 8,518 7,730
Changes in operating assets and liabilities:
Interest receivable on loans (76) (9,574)
Other current and non current assets (32,202) (33,376)
Accounts payable and accrued expenses (50,638) (35,441)
Deferred origination fees 54,523 29,940
Income taxes payable (86,120) (43,530)
Net cash provided by operating activities 248,613 115,960
Cash flows from investing activities:
Issuance of short term loans (8,430,500) (5,896,000)
Collections received from loans 7,871,866 4,244,641
Net cash used in investing activities (558,634) (1,651,359)
Cash flows from financing activities:
Proceeds from loans and line of credit, net 1,260,000 1,480,000
Purchase of treasury shares (76,053) ---
Proceeds from exercise of stock options 22,540 ---
Dividend paid ($0.01 per share) (42,786) ---
Net cash provided by financing activities 1,163,701 1,480,000
Net increase (decrease) in cash and cash equivalents 853,680 (55,399)
Cash and cash equivalents, beginning of period 240,693 221,905
Cash and cash equivalents, end of period $ 1,094,373 $ 166,506
Supplemental Cash Flow Information:
Taxes paid during the period $ 274,120 $ 200,730
Interest paid during the period $ 180,667 $ 79,206

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