CreditRiskMonitor Announces 3Q Results
VALLEY COTTAGE, N.Y., Nov. 12, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- CreditRiskMonitor (OTCQX: CRMZ) reported that revenues were $3.67 million and $10.74 million for the 3 and 9 months ended September 30, 2019, respectively, an increase of 5.5% and 3.9% over the comparable periods last year. For the same periods, the Company reported net income of approximately $203,600 and $55,600, respectively, versus a net loss of approximately ($11,100) and ($353,400) for the comparable 2018 periods. Cash and cash equivalents at the end of the nine-month period increased $501,500 to $8.57 million versus the 2018 year-end balance of $8.07 million.
Jerry Flum, CEO, said, “While our operating profitability improved we will continue to invest in our service and people to build a dynamic company even though the market for our services is impacted by a difficult environment for the sale of credit/debt/loan risk analysis. Our development plan is made possible in these difficult circumstances because we are debt-free and generate free cash flow. Assuming that business cycles have not been permanently banished from the earth, a simple return towards historical norms and the associated credit concerns should reward our investments. I believe that we are in those rarest of times where being a company with contra-cyclical products is viewed as a negative by some within the investment community.
“There is no line item on our balance sheet to reflect the value of our collecting and processing approximately $2 TRILLION of trade receivable data on an annualized basis on both public and private companies which allows us to extend our company coverage and maintain our commitment of having the most accurate risk scores available. Over 35% of the Fortune 1000 and over 1,000 other large companies worldwide depend on CreditRiskMonitor’s timely news alerts and reports featuring detailed analyses of financial statements, ratio analysis and trend reports, bond rating agencies, crowd sourcing in real-time of thousands of risk professionals as well as our proprietary FRISK® and PAYCE® scores.”
| CREDITRISKMONITOR.COM, INC. | ||||||||||||||||||
| STATEMENTS OF OPERATIONS | ||||||||||||||||||
| FOR THE 3 AND 9 MONTHS ENDED SEPTEMBER 30, 2019 AND 2018 | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| 3 Months Ended | 9 Months Ended | |||||||||||||||||
| September 30, | September 30, | |||||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||||
| Operating revenues | $ | 3,673,241 | $ | 3,481,359 | $ | 10,736,581 | $ | 10,331,106 | ||||||||||
| Operating expenses: | ||||||||||||||||||
| Data and product costs | 1,421,290 | 1,416,783 | 4,316,780 | 4,314,468 | ||||||||||||||
| Selling, general and administrative expenses | 1,962,150 | 2,060,322 | 6,277,294 | 6,398,936 | ||||||||||||||
| Depreciation and amortization | 52,667 | 49,583 | 153,701 | 138,670 | ||||||||||||||
| Total operating expenses | 3,436,107 | 3,526,688 | 10,747,775 | 10,852,074 | ||||||||||||||
| Income (loss) from operations | 237,134 | (45,329 | ) | (11,194 | ) | (520,968 | ) | |||||||||||
| Other income, net | 40,223 | 36,710 | 124,322 | 88,354 | ||||||||||||||
| Income (loss) before income taxes | 277,357 | (8,619 | ) | 113,128 | (432,614 | ) | ||||||||||||
| Benefit from (provision for) income taxes | (73,767 | ) | (2,527 | ) | (57,536 | ) | 79,195 | |||||||||||
| Net income (loss) | $ | 203,590 | $ | (11,146 | ) | $ | 55,592 | $ | (353,419 | ) | ||||||||
| Net income (loss) per share: | ||||||||||||||||||
| Basic and diluted | $ | 0.02 | $ | - | $ | 0.01 | $ | (0.03 | ) | |||||||||
| CREDITRISKMONITOR.COM, INC. | |||||||||
| BALANCE SHEETS | |||||||||
| SEPTEMBER 30, 2019 AND DECEMBER 31, 2018 | |||||||||
| September 30, | December 31, | ||||||||
| 2019 | 2018 | ||||||||
| (Unaudited) | |||||||||
| ASSETS | |||||||||
| Current assets: | |||||||||
| Cash and cash equivalents | $ | 8,568,350 | $ | 8,066,899 | |||||
| Accounts receivable, net of allowance | 1,845,325 | 2,454,585 | |||||||
| Other current assets | 522,645 | 561,861 | |||||||
| Total current assets | 10,936,320 | 11,083,345 | |||||||
| Property and equipment, net | 514,917 | 543,762 | |||||||
| Operating lease right-of-use asset | 2,425,195 | -- | |||||||
| Goodwill | 1,954,460 | 1,954,460 | |||||||
| Other assets | 48,654 | 35,613 | |||||||
| Total assets | $ | 15,879,546 | $ | 13,617,180 | |||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||
| Current liabilities: | |||||||||
| Unexpired subscription revenue | $ | 8,358,081 | $ | 8,560,316 | |||||
| Accounts payable | 25,970 | 94,767 | |||||||
| Current portion of operating lease liability | 143,694 | -- | |||||||
| Accrued expenses | 1,234,271 | 1,311,218 | |||||||
| Total current liabilities | 9,762,016 | 9,966,301 | |||||||
| Deferred taxes on income, net | 511,656 | 490,381 | |||||||
| Unexpired subscription revenue, less current portion | 213,955 | 178,129 | |||||||
| Operating lease liability, less current portion | 2,337,973 | -- | |||||||
| Other liabilities | -- | 24,537 | |||||||
| Total liabilities | 12,825,600 | 10,659,348 | |||||||
| Stockholders’ equity: | |||||||||
| Preferred stock, $.01 par value; authorized 5,000,000 | |||||||||
| shares; none issued | -- | -- | |||||||
| Common stock, $.01 par value; authorized 32,500,000 | |||||||||
| shares; issued and outstanding 10,722,401 shares | 107,224 | 107,224 | |||||||
| Additional paid-in capital | 29,691,282 | 29,650,760 | |||||||
| Accumulated deficit | (26,744,560 | ) | (26,800,152 | ) | |||||
| Total stockholders’ equity | 3,053,946 | 2,957,832 | |||||||
| Total liabilities and stockholders’ equity | $ | 15,879,546 | $ | 13,617,180 | |||||
Overview
CreditRiskMonitor () is a web-based publisher of financial information that helps corporate credit and procurement professionals stay ahead of business financial risk quickly, accurately and cost effectively. The service offers comprehensive commercial credit reports and financial risk analysis covering public companies worldwide. Unlike other commercial credit bureaus, such as Dun & Bradstreet, CreditRiskMonitor’s primary expertise and focus is on financial analysis of public debt and equity companies.
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.
Jerry Flum
845-230-3030
