| Exhibit 99.1 | |||
| NEWS RELEASE | |||
| CONTACT: | |||
CreditRiskMonitor.com, Inc. Jerry Flum, CEO (845) 230-3030 ir@crmz.com | |||
| FOR IMMEDIATE RELEASE | |||
CreditRiskMonitor’s Revenue Grows 37% for Second Quarter of 2009
VALLEY 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 | |||||||
| 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 | 6 Months Ended | |||||||||||||||
| June 30, | 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, | Dec. 31, | |||||||
| 2009 | 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.