SOURCE: CreditRiskMonitor.com, Inc.

August 06, 2009 12:00 ET

CreditRiskMonitor's Revenue Grows 37% for Second Quarter of 2009

VALLEY COTTAGE, NY--(Marketwire - August 6, 2009) - CreditRiskMonitor (OTCBB: CRMZ) reported that revenues increased 37% and 32% to $1.92 million and $3.67 million for the 3 and 6 months ended June 30, 2009, respectively. Cash, cash equivalents and marketable securities at the end of the six-month period increased $870,000 from the 2008 year-end balance to a total of $4.74 million.

Jerry Flum, CEO said, "Our revenue during the economic turbulence of the 1st half of 2009 confirms that the demand for corporate credit analysis and monitoring has a counter-cyclical component.

"Because we expense the entire sales commission when we are paid for a subscription, and recognize the revenue ratably over the entire subscription period, the current high revenue growth creates a timing mis-match that negatively affects our operating profit. Additional ways to evaluate our performance include looking at the cash return on net worth or the cash return on tangible net worth, as shown in the table below. We are generating significant cash returns, and continue to have no debt on our balance sheet."

                                                  6 Months Ended June 30,
                                                     2009        2008
                                                  ----------   ----------
Net increase in cash, cash equivalents
 & marketable securities                          $  869,996   $  263,349
Net worth at beginning of period                  $2,389,514   $1,958,777
Return on net worth                                       36%          13%
Tangible net worth at beginning of period         $  435,054   $    4,317
Return on tangible net worth                             200%       --N/M--



                       CREDITRISKMONITOR.COM, INC.
                        STATEMENTS OF OPERATIONS
           FOR THE 3 AND 6 MONTHS ENDED JUNE 30, 2009 AND 2008

                            3 Months Ended June 30, 6 Months Ended June 30,
                            ----------------------  ----------------------
                               2009        2008        2009        2008
                            ----------  ----------  ----------  ----------
Operating revenues          $1,922,437  $1,404,450  $3,665,563  $2,769,640

Operating expenses:
    Data and product costs     565,056     447,743   1,065,498     878,971
    Selling, general and
     administrative
     expenses                1,304,604     921,497   2,539,495   1,813,743
    Depreciation and
     amortization               25,337      20,471      48,992      38,010
                            ----------  ----------  ----------  ----------

      Total operating
       expenses              1,894,997   1,389,711   3,653,985   2,730,724
                            ----------  ----------  ----------  ----------

Income from operations          27,440      14,739      11,578      38,916
Other income (expense)         (12,199)      8,738      10,350      33,464
Interest expense                    (7)     (2,528)         (7)     (9,773)
                            ----------  ----------  ----------  ----------

Income before income taxes      15,234      20,949      21,921      62,607
Provision for income taxes       1,030         467       2,493       2,357
                            ----------  ----------  ----------  ----------

Net income                  $   14,204  $   20,482  $   19,428  $   60,250
                            ==========  ==========  ==========  ==========

Net income per share:
        Basic and diluted   $     0.00  $     0.00  $     0.00  $     0.01
                            ==========  ==========  ==========  ==========



                       CREDITRISKMONITOR.COM, INC.
                             BALANCE SHEETS
                   JUNE 30, 2009 AND DECEMBER 31, 2008

                                               June 30, 2009  Dec. 31, 2008
                                                ------------  ------------
                                                 (Unaudited)
ASSETS
Current assets:
        Cash and cash equivalents               $  4,741,583  $    912,591
        Marketable securities                             --     2,958,996
        Accounts receivable, net of allowance        881,222     1,146,066
        Other current assets                         160,339       237,883
                                                ------------  ------------

                Total current assets               5,783,144     5,255,536

Property and equipment, net                          245,110       213,142
Goodwill                                           1,954,460     1,954,460
Prepaid and other assets                              36,057        28,109
                                                ------------  ------------

                Total assets                    $  8,018,771  $  7,451,247
                                                ============  ============


LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
        Deferred revenue                        $  5,046,658  $  4,394,803
        Accounts payable                              26,625        52,758
        Accrued expenses                             509,108       610,748
                                                ------------  ------------

                Total current liabilities          5,582,391     5,058,309

Other liabilities                                        489         3,424
                                                ------------  ------------

                Total liabilities                  5,582,880     5,061,733

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 7,849,462 shares                 78,494        78,494
        Additional paid-in capital                28,306,217    28,279,268
        Accumulated deficit                      (25,948,820)  (25,968,248)
                                                ------------  ------------

                Total stockholders' equity         2,435,891     2,389,514
                                                ------------  ------------

                Total liabilities and
                 stockholders' equity           $  8,018,771  $  7,451,247
                                                ============  ============

CreditRiskMonitor (http://www.crmz.com) is an Internet-based publisher of financial information, designed to save time for busy corporate credit professionals that competes with Dun & Bradstreet, Equifax and Experian.

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.

Contact Information

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