LONG ISLAND, NY--(Marketwired - Oct 26, 2016) - Manhattan Bridge Capital, Inc. (NASDAQ: LOAN) announced today that total revenue for the three month period ended September 30, 2016 was approximately $1,169,000 compared to approximately $1,032,000 for the three month period ended September 30, 2015, an increase of $137,000, or 13.3%. The increase in revenue represents an increase in lending operations. For the three month periods ended September 30, 2016 and 2015, approximately $960,000 and $871,000, respectively, of our revenues were attributable to interest income on the secured commercial loans that we offer to small businesses, and approximately $209,000 and $160,000, respectively, of our revenues were attributable to origination fees on such loans.

Net income for the three month period ended September 30, 2016 was approximately $725,000 or $0.10 per basic and diluted share, versus net income of approximately $639,000 or $0.09 per basic and diluted share for the three month period ended September 30, 2015, an increase of $86,000 or 13.5%. This increase in net income was mainly due to an increase in operating income as a result of increased lending activity.

Total revenue for the nine month period ended September 30, 2016 was approximately $3,440,000 compared to approximately $2,855,000 for the nine month period ended September 30, 2015, an increase of $585,000, or 20.5%. The increase in revenue represents an increase in lending operations. For the nine month periods ended September 30, 2016 and 2015, revenues of approximately $2,849,000 and $2,392,000, respectively, were attributable to interest income on the secured commercial loans that we offer to small businesses, and approximately $591,000 and $463,000, respectively, were attributable to origination fees on such loans.

Net income for the nine month period ended September 30, 2016 was approximately $2,130,000 or $0.29 per basic and diluted share, versus net income of approximately $1,645,000 or $0.25 per basic and diluted share for the same period in 2015, an increase of $485,000 or 29.5%. This increase in net income was mainly due to an increase in operating income as a result of increased lending activity.

As of September 30, 2016 total shareholders' equity was approximately $23,125,000 compared to approximately $18,638,000 as of June 30, 2016 and approximately $17,743,000 as of December 31, 2015.

On August 15, 2016, we completed another public offering of 672,269 common shares. In addition, the underwriter fully exercised its over-allotment option for an additional 100,840 common shares. The gross proceeds from the offering, including the exercise of the over-allotment option, were approximately $4.6 million and the net proceeds were approximately $4.2 million, after deducting our underwriting discounts and commissions and offering expenses.

Assaf Ran, Chairman of the Board and CEO stated, "I am pleased with the results that we have reported for the quarter. In light of what I believe is presently a relatively risky and unstable real estate market climate, our challenge, more than ever, is to cherry-pick the safest lending opportunities. We have successfully achieved another record quarter on both revenue and net earnings while continuing our no-default track record."

About Manhattan Bridge Capital, Inc.
 Manhattan Bridge Capital, Inc. offers short-term secured, non-banking loans (sometimes referred to as "hard money" loans) to real estate investors to fund their acquisition, renovation, rehabilitation or improvement of properties located in the 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 condition 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) we have limited operating history as a REIT; (ii) our loan origination activities, revenues and profits are limited by available funds (iii)we operate in a highly competitive market and competition may limit our ability to originate loans with favorable interest rates; (iv) our chief executive officer is critical to our business and our future success may depend on our ability to retain him; (v) if we overestimate the yields on our loans or incorrectly value the collateral securing the loan, we may experience losses; (vi) we may be subject to "lender liability" claims; (vii) our loan portfolio is illiquid; (viii) our due diligence may not uncover all of a borrower's liabilities or other risks to its business; (ix) borrower concentration could lead to significant losses; (x) our management has no experience managing a REIT; and (xi) we may choose to make distributions in our own stock, in which case you may be required to pay income taxes in excess of the cash dividends you receive. 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
 


Assets		  September 30, 2016
(unaudited)		  December 31, 2015
(audited)
Current assets:            
Cash and cash equivalents   $ 158,519   $ 106,836
Cash - restricted     919,352     ---
Short term loans receivable     23,314,500     20,199,000
Interest receivable on loans     304,338     382,572
Other current assets     49,673     32,865
    Total current assets     24,746,382     20,721,273
             
Long term loans receivable     8,217,320     10,705,040
Property and equipment, net     9,038     8,771
Security deposit     6,816     6,816
Investment in privately held company     40,000     50,000
Deferred financing costs     68,234     164,510
    Total assets   $ 33,087,790   $ 31,656,410
   
Liabilities and Stockholders' Equity
 
Current liabilities:                
Line of credit   $ 4,263,055     $ 11,821,099  
Short term loans     ---       1,095,620  
Accounts payable and accrued expenses     71,940       99,643  
Deferred origination fees     344,561       279,682  
Dividends payable     ---       617,443  
  Total current liabilities     4,679,556       13,913,487  
Long term liabilities:                
Senior secured note (net of deferred financing costs of $716,441)    
 5,283,559		      
 ---		  
    Total liabilities     9,963,115       13,913,487  
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; 8,290,749 and 7,441,039 issued; 8,113,749 and 7,264,039 outstanding    
8,291		      
7,441		  
Additional paid-in capital     23,025,856       18,500,524  
Treasury stock, at cost - 177,000     (369,335 )     (369,335 )
Retained earnings (Accumulated deficit)     459,863       (395,707 )
  Total stockholders' equity     23,124,675       17,742,923  
Total liabilities and stockholders' equity   $ 33,087,790     $ 31,656,410  
   
   
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES  
CONSOLIDATED STATEMENTS OF OPERATIONS  
(unaudited)  
   
   Three Months
Ended September 30,		    Nine Months
Ended September 30,		  
   2016  2015    2016    2015  
Interest income from loans   $
960,274		   $
871,250		     $
2,848,516		     $
2,392,329		  
Origination fees     208,951     160,456       591,191       463,092  
  Total revenue     1,169,225     1,031,706       3,439,707       2,855,421  
                               
Operating costs and expenses:                              
Interest and amortization of debt service costs     205,449     159,875      
593,749		      
493,652		  
Referral fees     2,263     948       5,525       3,260  
General and administrative expenses    
236,972		    
229,873		      
698,356		      
696,464		  
  Total operating costs and expenses     444,684     390,696       1,297,630       1,193,376  
Income from operations     724,541     641,010       2,142,077       1,662,045  
Loss on write-down of investment in privately held company     ---     ---       (10,000 )     (15,000 )
Income before income tax expense     724,541     641,010       2,132,077       1,647,045  
Income tax expense     ---     (2,005 )     (2,146 )     (2,005 )
Net income   $ 724,541   $ 639,005     $ 2,129,931     $ 1,645,040  
                               
Basic and diluted net income per common share outstanding:                              
--Basic   $ 0.10   $ 0.09     $ 0.29     $ 0.25  
--Diluted   $ 0.10   $ 0.09     $ 0.29     $ 0.25  
                               
Weighted average number of common shares outstanding                              
--Basic     7,598,626     7,223,043       7,407,787       6,597,987  
--Diluted     7,623,635     7,263,017       7,426,165       6,637,755  
 
 
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
 
   Nine Months  
   Ended September 30,  
   2016    2015  
Cash flows from operating activities:                
  Net Income   $ 2,129,931     $ 1,645,040  
  Adjustments to reconcile net income to net cash provided by operating activities -                
  Amortization of deferred financing costs     51,474       27,501  
  Depreciation     2,752       4,926  
  Non cash compensation expense     10,192       10,248  
  Loss on write-down of investment in privately held company     10,000       15,000  
  Changes in operating assets and liabilities:                
    Interest receivable on loans     78,234       (108,815 )
    Other current and non current assets     (16,809 )     (27,377 )
    Accounts payable and accrued expenses     (27,702 )     (74,031 )
    Deferred origination fees     64,879       4,360  
      Net cash provided by operating activities     2,302,951       1,496,852  
                 
Cash flows from investing activities:                
  Issuance of short term loans     (24,299,500 )     (15,346,500 )
  Collections received from loans     23,671,720       10,234,936  
  Purchase of fixed assets     (3,019 )     (3,474 )
      Net cash used in investing activities     (630,799 )     (5,115,038 )
                 
Cash flows from financing activities:                
  (Repayments of) Proceeds from loans and line of credit, net     (8,653,664 )     1,024,238  
  Cash restricted for reduction of line of credit     (919,352 )     ---  
  Proceeds from public offerings, net     9,539,347       4,237,199  
  Deferred financing costs     ---       (111,400 )
  Proceeds from exercise of stock options and warrants     305,004       32,838  
  Dividends paid     (1,891,804 )     (1,551,221 )
      Net cash (used in) provided by financing activities     (1,620,469 )     3,631,654  
                 
Net increase in cash and cash equivalents     51,683       13,468  
Cash and cash equivalents, beginning of period     106,836       47,676  
Cash and cash equivalents, end of period   $ 158,519     $ 61,144  
                 
Supplemental Cash Flow Information:                
Taxes paid during the period   $ 1,948     $ 29  
Interest paid during the period   $ 546,015     $ 423,650