NEWS RELEASECONTACT:CreditRiskMonitor.com, Inc. Jerry Flum, CEO (845) 230-3030 ir@crmz.com
FOR IMMEDIATE RELEASE
CreditRiskMonitor's Revenue Grows 37% for Second Quarter of 2009VALLEY COTTAGE, NY-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
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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
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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,
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. |