Exhibit 99.1
NEWS RELEASE
CONTACT:
CreditRiskMonitor.com, Inc.
Jerry Flum, CEO
(845) 230-3030
info@creditriskmonitor.com
FOR IMMEDIATE RELEASE
CreditRiskMonitor Reports Record Sales for 2008
VALLEY COTTAGE, NY—March 17, 2009—CreditRiskMonitor (Symbol: CRMZ) announced that for the year ended December 31, 2008 revenues increased 18% to $5.87 million and net income was $372,000 versus $370,000 last year.
Jerry Flum, CEO, said, “2008 was another record sales year for our company in spite of the powerful economic contraction being experienced globally. Our belief that corporate credit analysis and monitoring has a counter-cyclical component has been borne out in our monthly sales results since September of 2008. Awareness of the need for these services grows during economic turbulence. Monthly bookings of new business subscriptions for the six months ended February 2009 were the highest for any comparable period in our history. We intend to continue to improve our service over the coming year, while keeping our prices low. Our cash and marketable securities of nearly $4 million, or approximately 50¢ per share, supports a debt free balance sheet and gives our Company stability in these turbulent times.”
CREDITRISKMONITOR.COM, INC.
STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007
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| 2008 |
| 2007 |
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Operating revenues |
| $ | 5,872,996 |
| $ | 4,989,177 |
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Operating expenses: |
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|
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|
|
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Data and product costs |
|
| 1,753,338 |
|
| 1,651,606 |
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Selling, general and administrative expenses |
|
| 3,795,232 |
|
| 2,953,648 |
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Depreciation and amortization |
|
| 81,531 |
|
| 65,895 |
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|
|
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Total operating expenses |
|
| 5,630,101 |
|
| 4,671,149 |
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Income from operations |
|
| 242,895 |
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| 318,028 |
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Other income |
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| 142,923 |
|
| 93,344 |
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Interest expense |
|
| (9,875 | ) |
| (37,535 | ) |
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|
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Income before income taxes |
|
| 375,943 |
|
| 373,837 |
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Provision for state and local income taxes |
|
| 4,117 |
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| 3,606 |
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Net income |
| $ | 371,826 |
| $ | 370,231 |
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Net income per share of common stock: |
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Basic and diluted |
| $ | 0.05 |
| $ | 0.05 |
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CREDITRISKMONITOR.COM, INC.
BALANCE SHEETS
DECEMBER 31, 2008 AND 2007
|
| 2008 |
| 2007 |
| ||
ASSETS |
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Current assets: |
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Cash and cash equivalents |
| $ | 912,591 |
| $ | 2,973,263 |
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Marketable securities |
|
| 2,958,996 |
|
| — |
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Accounts receivable, net of allowance of $30,000 |
|
| 1,146,066 |
|
| 737,436 |
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Other current assets |
|
| 237,883 |
|
| 260,657 |
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Total current assets |
|
| 5,255,536 |
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| 3,971,356 |
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Property and equipment, net |
|
| 213,142 |
|
| 149,773 |
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Goodwill |
|
| 1,954,460 |
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| 1,954,460 |
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Other assets |
|
| 28,109 |
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| 27,753 |
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Total assets |
| $ | 7,451,247 |
| $ | 6,103,342 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current liabilities: |
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Deferred revenue |
| $ | 4,394,803 |
| $ | 3,391,339 |
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Accounts payable |
|
| 52,758 |
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| 51,119 |
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Accrued expenses |
|
| 610,748 |
|
| 348,745 |
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Current portion of long-term debt |
|
| — |
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| 136,141 |
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Total current liabilities |
|
| 5,058,309 |
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| 3,927,344 |
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Long-term debt, net of current portion |
|
| — |
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| 150,799 |
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Other liabilities |
|
| 3,424 |
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| 66,422 |
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Total liabilities |
|
| 5,061,733 |
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| 4,144,565 |
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Stockholders’ equity: |
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Preferred stock, $.01 par value; authorized 5,000,000 |
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shares; none issued |
|
| — |
|
| — |
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Common stock, $.01 par value; authorized 25,000,000 |
|
|
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shares; issued and outstanding 7,849,462 and |
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7,694,462 shares, respectively |
|
| 78,494 |
|
| 76,944 |
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Additional paid-in capital |
|
| 28,279,268 |
|
| 28,221,907 |
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Accumulated deficit |
|
| (25,968,248 | ) |
| (26,340,074 | ) |
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Total stockholders’ equity |
|
| 2,389,514 |
|
| 1,958,777 |
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Total liabilities and stockholders’ equity |
| $ | 7,451,247 |
| $ | 6,103,342 |
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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.