NEW YORK, Aug. 6, 2008 (PRIME NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq:LOAN) announced today that net income for the three month period ended June 30, 2008 was $0.02 per basic and diluted share, versus net loss of (0.11) per basic and diluted share for the three month period ended June 30, 2007.
Total revenue for the three month period ended June 30, 2008 were approximately $179,000 versus total revenue of approximately $7,000 for the three month period ended June 30, 2007. For the three month period ended June 30, 2008 revenue of approximately $164,000 represents interest income on short term and long term loans made through DAG Funding and approximately $15,000 represents origination fees.
Net income for the six month period ended June 30, 2008 was $0.06 per basic and diluted share or $191,914, versus net loss of (0.16) per basic and diluted share or ($516,004) for the six month period ended June 30, 2007.
Total revenue for the six month period ended June 30, 2008 were approximately $344,000 versus total revenue of approximately $8,000 for the six month period ended June 30, 2007. For the six month period ended June 30, 2008 revenue of approximately $311,000 represents interest income on the short term and long term loans made through DAG Funding and approximately $33,000 represents origination fees.
Income from continuing operations for the six month period ended June 30, 2008 was approximately $119,000 compared to a loss from continuing operations of approximately ($265,000) for the six month period ended June 30, 2007, an increase of approximately $384,000. This increase in income from continuing operations resulted mainly from increase in revenue from short term and long term loans generated through DAG Funding of approximately $336,000 and a decrease of approximately $81,000 in general and administrative expense, offset by a decrease of approximately $44,000 in other income.
Assaf Ran, Chairman of the Board and CEO stated, "I'm pleased that we have managed to achieve our goal and stabilize profit as we reported a fourth consecutive profitable quarter. Our transition into profitability was made possible by our significant efforts to identify good short term commercial finance opportunities. Our next challenge is to arrange a leverage financing facility against our portfolio in order to expand the scale of our businesses."
Manhattan Bridge Capital, Inc., through our subsidiaries, provides short term, secured, non-banking, commercial loans to small businesses. In addition we developed innovative software and a related web site that allows retail businesses and other service providers to reach prospective customers and clients for their goods and services in a more effective way than traditional on-line and print yellow pages search. We operate several web sites: http://www.manhattanbridgecapital.com. http://www.dagfundingsolutions.com, and http://www.nextyellow.com.
Forward-looking statements in this release are made pursuant to the "safe harbor'' provisions of the Private Securities Litigation Reform Act of 1995 These forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements, including, without limitation, continued acceptance of the Company's products, increased levels of competition, new products introduced by competitors, changes in the rates of subscriber acquisition and retention, and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
Assets June 30, December 31,
2008 2007
(Unaudited) (Audited)
Current assets:
Cash and cash equivalents $ 1,134,317 $ 621,724
Marketable securities 732,636 802,811
Auction rate securities 450,000 --
Short term investment - insurance
annuity contract - at fair value -- 931,555
-----------------------------
Total cash and cash equivalents,
marketable securities and short
term investment 2,316,953 2,356,090
Short term loans 4,334,185 4,313,211
Interest receivable on short term loans 53,246 41,184
Due from purchaser 38,881 156,103
Other current assets 39,073 17,083
-----------------------------
Total current assets 6,782,338 6,883,671
Long term loans 200,000 --
Property and equipment, net 11,868 14,261
Capitalized web development costs, net 49,343 74,015
Security deposit 17,515 17,515
Investment in privately held company,
at cost 100,000 100,000
-----------------------------
Total assets $ 7,161,064 $ 7,089,462
=============================
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued expenses $ 82,968 $ 123,886
Deferred gain from the sale of Jewish
Directories -- 72,917
Deferred origination fee 19,896 4,597
-----------------------------
Total current liabilities 102,864 201,400
-----------------------------
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; 3,305,190
issued and 3,236,460 outstanding 3,305 3,305
Additional paid-in capital 9,232,923 9,180,235
Treasury stock, at cost- 68,730 shares (231,113) (231,113)
Accumulated other comprehensive loss (515,737) (441,272)
Accumulated deficit (1,431,178) (1,623,093)
-----------------------------
Total shareholders' equity 7,058,200 6,888,062
-----------------------------
Total liabilities and shareholders'
equity $ 7,161,064 $ 7,089,462
=============================
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Six Months
-------------- --------------
Ended June 30, Ended June 30,
-------------- --------------
2008 2007 2008 2007
Interest income
from short term
loans $ 163,924 $ 4,967 $ 311,385 $ 4,967
Origination fees 14,808 -- 32,633 --
Subscription
revenues, net 43 1,619 100 2,981
--------------------------------------------------
Total Revenue 178,775 6,586 344,118 7,948
--------------------------------------------------
Operating costs
and expenses:
Web development
expenses 12,336 12,336 24,672 24,672
General and
administrative
expenses 148,759 188,391 309,182 390,038
--------------------------------------------------
Total operating
costs and
expenses
161,095 200,727 333,854 414,710
--------------------------------------------------
Income (Loss)
from operations 17,680 (194,141) 10,264 (406,762)
--------------------------------------------------
Interest and
dividend income 16,371 98,040 41,122 152,803
Realized gain
(loss) on
marketable
securities 18,122 16,257 18,122 (10,569)
Other income -- -- 39,000 --
--------------------------------------------------
Total other
income 34,493 114,297 98,244 142,234
--------------------------------------------------
Income (loss)
from continuing
operations
before income
tax benefit 52,173 (79,844) 108,508 (264,528)
Income tax
benefit -- -- 10,489 --
--------------------------------------------------
Income (loss)
from continuing
operations 52,173 (79,844) 118,997 (264,528)
--------------------------------------------------
Discontinued
Operations:
Gain on the sale
of the Jewish
Directories (net
of tax effect of
0 in 2008 and
2007) -- 72,916 72,917 121,527
Loss from
operations of
Shopila (net
of tax effect
of 0) -- (353,011) -- (373,003)
--------------------------------------------------
Income from
discontinued
operations -- (280,095) 72,917 (251,476)
--------------------------------------------------
Net Income (loss) $ 52,173 $ (359,939) $ 191,914 $ (516,004)
==================================================
Basic net income
(loss) per common
share outstanding:
Continuing
operations $ 0.02 $ (0.02) $ 0.04 $ (0.08)
Discontinued
operations (0.09) 0.02 (0.08)
--------------------------------------------------
Net income (loss)
per common
share- Basic $ 0.02 $ (0.11) $ 0.06 $ (0.16)
==================================================
Diluted net income
(loss) per common
share outstanding:
Continuing
operations $ 0.02 $ (0.02) $ 0.04 $ (0.08)
Discontinued
operations (0.09) 0.02 (0.08)
--------------------------------------------------
Net income (loss)
per common
share- Diluted $ 0.02 $ (0.11) $ 0.06 $ (0.16)
==================================================
Weighted average
number of common
shares outstanding
--Basic 3,236,460 3,236,460 3,236,460 3,236,460
--Diluted 3,237,406 3,236,460 3,238,215 3,236,460
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
Six Months Ended June 30,
2008 2007
---------- ----------
Cash flows from operating activities:
Net income (loss) $ 191,914 $ (516,004)
Adjustments to reconcile net income
(loss) to net cash provided by (used in)
operating activities:
Gain on the sale of Jewish Directories (72,917) (121,527)
Loss from discontinued operations
of Shopila -- 373,003
Depreciation and amortization 27,065 26,917
Non cash compensation expense 52,688 86,408
Realized (gain) loss on sale of
marketable securities (18,122) 10,569
Changes in operating assets and
liabilities:
Interest receivable on short term loans (12,062) (4,966)
Due from purchaser 20,000 --
Other current and non current assets (21,990) (14,263)
Accounts payable and accrued expenses (40,918) (87,105)
Deferred origination fees 15,299 --
Income tax payable -- (4,764)
Assets and Liabilities of
discontinued operations -- (101,118)
---------- ----------
Net cash provided by (used in)
operating activities 140,957 (352,850)
---------- ----------
Cash flows from investing activities:
Proceeds from sale of marketable
securities, auction rate securities and
annuity contract 1,670,388 480,439
Investment in marketable securities,
auction rate securities and annuity
contract (1,175,000) (806,391)
Issuance of short term and long
term loans (2,221,123) (795,000)
Collection received from short term loans 2,000,149 --
Cash received on sale of Jewish
Directories 97,222 173,389
---------- ----------
Net cash provided by (used in)
investing activities 371,636 (947,563)
---------- ----------
---------- ----------
Net increase (decrease) in cash 512,593 (1,300,413)
Cash and cash equivalents,
beginning of the year 621,724 3,630,937
---------- ----------
Cash and cash equivalents, end of period $1,134,317 $2,330,524
========== ==========
Supplemental Cash Flow Information:
Taxes paid during the period $ 5,766 $ 4,764
========== ==========
Interest Paid during the period $ 4,356 --
========== ==========