SOURCE: CreditRiskMonitor.com, Inc.

August 09, 2012 17:16 ET

CreditRiskMonitor Announces 2Q Results and New Service Options

VALLEY COTTAGE, NY--(Marketwire - Aug 9, 2012) - CreditRiskMonitor (OTCQX: CRMZ) (PINKSHEETS: CRMZ) reported that revenues increased 8% for both the 3 and 6 months ended June 30, 2012, to $2.74 million and $5.39 million, respectively. For the same periods, income from operations was $199,000 and $282,000, respectively, compared to $267,000 and $487,000 for the comparable 2011 periods. Cash, cash equivalents and marketable securities at the end of the six-month period, however, increased $1.13 million to $9.41 million from the 2011 year-end balance of $8.28 million.

Jerry Flum, CEO, said, "Our short-term income from operations continues to be adversely impacted by the cost of building our sales and service staff, adding new data elements, and creating new tools for subscribers. We continue to be debt free, generating strong free cash flow after dividends. Both of these conditions provide us with financial flexibility in case new opportunities arise.

"We recently launched a new set of tools that subscribers can use to analyze their trade accounts receivable data on both public and private companies, if they contribute this data to our service. We are seeing a very positive reaction to these new tools, and an increasing number of subscribers are contributing their data."

CREDITRISKMONITOR.COM, INC.  
STATEMENTS OF OPERATIONS  
FOR THE 3 AND 6 MONTHS ENDED JUNE 30, 2012 AND 2011  
(Unaudited)  
   
    3 Months Ended     6 Months Ended  
    June 30,     June 30,  
    2012     2011     2012     2011  
                                 
Operating revenues   $ 2,740,227     $ 2,539,350     $ 5,385,482     $ 4,979,311  
                                 
Operating expenses:                                
  Data and product costs     936,411       734,890       1,863,156       1,480,237  
  Selling, general and administrative expenses     1,566,213       1,495,659       3,163,572       2,929,752  
  Depreciation and amortization     38,415       41,507       76,556       82,729  
                                 
    Total operating expenses     2,541,039       2,272,056       5,103,284       4,492,718  
                                 
Income from operations     199,188       267,294       282,198       486,593  
Other income, net     15,428       33,367       12,616       34,918  
                                 
Income before income taxes     214,616       300,661       294,814       521,511  
Provision for income taxes     (97,735 )     (91,012 )     (129,879 )     (182,451 )
                                 
Net income   $ 116,881     $ 209,649     $ 164,935     $ 339,060  
                                 
Net income per share:                                
  Basic and diluted   $ 0.01     $ 0.03     $ 0.02     $ 0.04  
                                   
                                   
                                   
CREDITRISKMONITOR.COM, INC.
BALANCE SHEETS
JUNE 30, 2012 AND DECEMBER 31, 2011
 
    June 30,     Dec. 31,  
    2012     2011  
    (Unaudited)        
             
ASSETS                
Current assets:                
  Cash and cash equivalents   $ 7,673,989     $ 6,531,204  
  Marketable securities     1,740,978       1,753,072  
  Accounts receivable, net of allowance     1,012,168       1,551,213  
  Other current assets     269,519       451,143  
                 
    Total current assets     10,696,654       10,286,632  
                 
Property and equipment, net     296,382       306,810  
Goodwill     1,954,460       1,954,460  
Prepaid and other assets     38,269       23,232  
                 
    Total assets   $ 12,985,765     $ 12,571,134  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
Current liabilities:                
  Deferred revenue   $ 6,937,675     $ 6,471,494  
  Accounts payable     75,346       60,941  
  Accrued expenses     662,804       1,087,163  
  Deferred taxes on income     255,142       157,385  
                 
    Total current liabilities     7,930,967       7,776,983  
                 
Other liabilities     4,862       3,714  
                 
    Total liabilities     7,935,829       7,780,697  
                 
Stockholders' equity:                
  Preferred stock, $.01 par value; authorized 5,000,000 shares; none issued     --       --  
  Common stock, $.01 par value; authorized 25,000,000 shares; issued and outstanding 7,943,462 and 7,920,462 shares, respectively     79,434       79,204  
  Additional paid-in capital     28,692,013       28,597,679  
  Accumulated deficit     (23,721,511 )     (23,886,446 )
                 
    Total stockholders' equity     5,049,936       4,790,437  
                     
    Total liabilities and stockholders' equity   $ 12,985,765     $ 12,571,134  

Overview

CreditRiskMonitor (http://www.crmz.com) is an Internet-based publisher of financial risk analysis and news, designed to save time for busy corporate credit and procurement/supply-chain professionals. The service offers comprehensive commercial credit reports covering over 40,000 public companies worldwide. Over 30% of the Fortune 1,000 already use CreditRiskMonitor's timely news alerts and reports that feature detailed analyses of financial statements, ratio analysis and trend reports, peer analyses, as well as the Company's proprietary FRISK® scores.

Safe Harbor Statement

Certain statements in this press release, including statements prefaced by the words "anticipates", "estimates", "believes", "expects" or words of similar meaning, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, expectations or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, including, among others, those risks, uncertainties and factors referenced from time to time as "risk factors" or otherwise in the Company's Registration Statements or Securities and Exchange Commission Reports. We disclaim any intention or obligation to revise any forward-looking statements, whether as a result of new information, a future event, or otherwise.

Contact Information

  • CONTACT:
    CreditRiskMonitor.com, Inc.
    Jerry Flum
    CEO
    (845) 230-3030
    ir@crmz.com