SOURCE: Accelerize New Media, Inc.

Accelerize New Media, Inc.

May 14, 2014 08:00 ET

Accelerize New Media, Inc. Reports First Quarter 2014 Financial Results

First Quarter Revenues Increased 58.4% Year Over Year to $3.43MM

NEWPORT BEACH, CA--(Marketwired - May 14, 2014) - New Media, Inc. (OTCQB: ACLZ), owner and operator of CAKE (www.getcake.com), a marketing technology SaaS company, today announced financial results for its fiscal first quarter ended March 31, 2014.

"Increased demand for the CAKE SaaS enterprise platform led to a strong performance and start to 2014. We expanded our real-time marketing intelligence product portfolio, welcomed a number of new customers worldwide and sustained our revenue growth," said Accelerize New Media, Inc. Chairman and CEO Brian Ross. "We will continue to focus on our vision to drive performance-based marketing innovation and extend our leadership position through sales, marketing and R&D investments."

Financial Highlights for Q1 2014

  • Revenues: Total revenues increased 58.4% from $2.16MM to $3.43MM year over year for the first quarter, driven by a 49% increase in the average number of clients and a 6% increase in the average usage fees earned per client. We expect future revenues to be driven by ongoing organic growth, international expansion and increased sales efforts.
  • Operating (Loss) Income: Operating loss was $364.3K, compared to an operating income of $180.2K year over year for the first quarter, due to growth investments in research and product development, as well as sales and marketing costs.
  • Cash Flow: Net cash used in continuing operations was $597.7K, compared to net cash provided by continuing operations of $58.8K during the prior year period. The Company invested $576.8K in ongoing research and development, and total operating expenses increased 91.2% to $3.79MM to support our growth. As a result, free cash flow, which amounts to cash flow from operations less capital expenditures, totaled $(405.8K).

About Accelerize New Media, Inc.
Accelerize New Media, Inc. owns and operates CAKE, a SaaS-based solution for advertisers, publishers and networks to track and manage their digital spend in real-time. With its marketing intelligence hub, CAKE is filling a crucial void for marketers at a time when the world of online advertising continues to grow more complex. The company's multi-channel, enterprise suite of tools makes it easy for marketers to collect vast volumes of rich click-forward data, such as conversion information, landing page data, and impression traffic for display campaigns. By providing one place to track, manage and optimize attribution data, CAKE empowers its users with fundamental new ways to maximize value from digital media campaigns while integrating with existing marketing technology investments. Only CAKE offers everything needed for a complete view of the digital customer journey, from acquisition to conversion. For more information visit http://www.accelerizenewmedia.com, the content of which is not a part of this press release.

Use of Forward-looking Statements

This press release may contain forward-looking statements from Accelerize New Media, Inc. within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and federal securities laws. For example, when we say that we will continue to focus on our vision to drive performance-based marketing innovation and extend our leadership position through sales, marketing and R&D investments, and that we expect future revenues to be driven by ongoing organic growth, international expansion and increased sales efforts, we are using forward-looking statements. These forward-looking statements are based on the current expectations of the management of Accelerize New Media only, and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: changes in technology and market requirements; our technology may not be validated as we progress further; we may be unable to retain or attract key employees whose knowledge is essential to the development of our products and services; unforeseen market and technological difficulties may develop with our products and services; inability to timely develop and introduce new technologies, products and applications; loss of market share and pressure on pricing resulting from competition, which could cause the actual results or performance of Accelerize New Media to differ materially from those contemplated in such forward-looking statements. Except as otherwise required by law, Accelerize New Media undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. For a more detailed description of the risk and uncertainties affecting Accelerize New Media, reference is made to Accelerize New Media's reports filed from time to time with the Securities and Exchange Commission.

 
ACCELERIZE NEW MEDIA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
             
    March 31,
2014
    December 31,
2013
 
    (Unaudited)        
ASSETS            
Current Assets:                
  Cash   $ 1,130,870     $ 1,157,315  
  Accounts receivable, net of allowance for bad debt of $23,121 and $59,072     1,414,404       1,041,671  
  Prepaid expenses and other assets     76,582       85,026  
  Total current assets     2,621,856       2,284,012  
                 
  Property and equipment, net of accumulated depreciation of $262,225 and $171,856     858,198       756,696  
  Customer relationships, net of accumulated amortization of $203,704 and $37,037     796,296       962,963  
  Deferred financing costs, net of accumulated amortization of $3,003     69,064       -  
  Other assets     37,148       -  
  Total assets   $ 4,382,562     $ 4,003,671  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
                 
Current Liabilities:                
  Accounts payable and accrued expenses   $ 1,495,774     $ 1,703,007  
  Deferred revenues     58,000       83,311  
  Line of credit     500,000       -  
  Total current liabilities     2,053,774       1,786,318  
                 
Stockholders' Equity                
Common stock; $.001 par value; 100,000,000 shares authorized; 59,818,917 and 58,394,975 shares issued and outstanding     59,818       58,394  
  Additional paid-in capital     18,384,573       17,908,278  
  Accumulated deficit     (16,116,933 )     (15,749,319 )
    Accumulated other comprehensive income     1,330       -  
                 
  Total stockholders' equity     2,328,788       2,217,353  
                   
  Total liabilities and stockholders' equity   $ 4,382,562     $ 4,003,671  
                   
                   
 
ACCELERIZE NEW MEDIA, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
       
    Three-month periods ended
March 31,
 
    2014     2013  
             
             
Revenues:   $ 3,427,197     $ 2,163,407  
                 
Operating expenses:                
  Cost of revenue     789,099       470,483  
  Research and development     576,786       380,617  
  Sales and marketing     1,622,449       615,847  
  General and administrative     803,168       516,283  
  Total operating expenses     3,791,502       1,983,230  
                 
Operating (loss) income     (364,305 )     180,177  
                 
Other income (expense):                
  Interest income     -       13,667  
  Interest expense     (3,309 )     (18,626 )
      (3,309 )     (4,959 )
                 
(Loss) income from continuing operations     (367,614 )     175,218  
                 
Discontinued operations                
  Gain from the disposal of discontinued operations     -       61,750  
    Income from discontinued operations, net     -       61,750  
                 
Net (loss) income   $ (367,614 )   $ 236,968  
                 
                 
Earnings per share:                
Basic                
  Continuing operations   $ (0.01 )   $ -  
  Discontinued operations   $ -     $ -  
  Net (loss) income per share   $ (0.01 )   $ -  
                 
Diluted                
  Continuing operations   $ (0.01 )   $ -  
  Discontinued operations   $ -     $ -  
  Net (loss) income per share   $ (0.01 )   $ -  
                 
                 
Basic weighted average common shares outstanding     58,770,491       56,158,216  
Diluted weighted average common shares outstanding     58,770,491       69,394,505  
                 
                 
ACCELERIZE NEW MEDIA, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
       
    Three-month periods ended
March 31,
 
    2014     2013  
Cash flows from operating activities:            
Net (loss) income from continuing operations   $ (367,614 )   $ 175,218  
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:                
  Depreciation and amortization     257,036       12,598  
  Amortization of debt discount     3,003       10,646  
  Amortization of original issuance discount     -       (11,889 )
    Provision for bad debt     (35,951 )     -  
                 
  Fair value of options     143,777       125,781  
Changes in operating assets and liabilities:                
  Accounts receivable     (336,782 )     (164,488 )
  Prepaid expenses     8,143       22  
  Other assets     (37,148 )     (8,315 )
  Accounts payable and accrued expenses     (206,803 )     (66,268 )
  Deferred revenues     (25,311 )     (14,458 )
Net cash (used in) provided by continuing operations     (597,650 )     58,847  
Net cash provided by discontinued operations     -       61,750  
Net cash (used in) provided by operating activities     (597,650 )     120,597  
                 
Cash flows from investing activities:                
  Capitalized software for internal use     (153,996 )     -  
  Capital expenditures     (37,875 )     (47,806 )
  Proceeds from sale of online marketing services business     -       18,000  
                 
Net cash used in investing activities     (191,871 )     (29,806 )
                 
Cash flows from financing activities:                
  Principal repayments on notes payable     -       (45,000 )
  Proceeds from line of credit     500,000       -  
  Payment of financing costs     (40,000 )     -  
  Net proceeds from exercise of warrants     301,876       81,000  
                 
Net cash provided by financing activities     761,876       36,000  
                 
Effect of exchange rate changes on cash     1,200       (1,328 )
                 
Net (decrease) increase in cash     (26,445 )     125,463  
                 
Cash, beginning of period     1,157,315       231,926  
                 
Cash, end of period   $ 1,130,870     $ 357,389  
                 
                 

Contact Information

  • Contact Information

    Brian Ross
    Chairman & CEO
    Email Contact
    (949) 548-2253