Attached files

file filename
8-K - CREDITRISKMONITOR.COM, INC. 8-K 3-20-2017 - CREDITRISKMONITOR COM INCform8k.htm

Exhibit 99.1
 
NEWS RELEASE
CONTACT:
CreditRiskMonitor.com, Inc.
Jerry Flum, CEO
(845) 230-3030
ir@creditriskmonitor.com

FOR IMMEDIATE RELEASE

CreditRiskMonitor 2016 Operating Results

VALLEY COTTAGE, NY—March 20, 2017—CreditRiskMonitor (OTCQX: CRMZ) reported that revenues for the year ended December 31, 2016 increased 3% to $12.81 million compared to fiscal 2015. Net income for fiscal 2016 was approximately $52,400 compared to $513,200 in the prior year. Cash, cash equivalents and marketable securities at the end of 2016 increased to $9.22 million from the 2015 year-end balance of $8.96 million.

Jerry Flum, CEO, said, “2016’s reported earnings were negatively impacted by our decision to increase our investment in new marketing infrastructure and programs. The head of this marketing effort resigned mid-year, and this initiative fell short of our 2016 plans. We have hired a new marketing leader, and expect to see the positive impact of this investment in 2018. We’re still debt-free and our strong balance sheet provides us with financial flexibility to manage our company for long-term results.”
 
CREDITRISKMONITOR.COM, INC.
STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015
 
   
2016
   
2015
 
             
Operating revenues
 
$
12,814,390
   
$
12,486,316
 
                 
Operating expenses:
               
Data and product costs
   
4,944,053
     
4,665,360
 
Selling, general and administrative expenses
   
7,495,742
     
6,685,528
 
Depreciation and amortization
   
200,136
     
218,621
 
                 
Total operating expenses
   
12,639,931
     
11,569,509
 
                 
Income from operations
   
174,459
     
916,807
 
Other income, net
   
27,183
     
2,344
 
                 
Income before income taxes
   
201,642
     
919,151
 
Provision for income taxes
   
(149,199
)
   
(405,965
)
                 
Net income
 
$
52,443
   
$
513,186
 
                 
Net income per share of common stock:
               
Basic
 
$
0.00
   
$
0.05
 
Diluted
 
$
0.00
   
$
0.05
 
 

CREDITRISKMONITOR.COM, INC.
BALANCE SHEETS
DECEMBER 31, 2016 AND 2015


   
2016
   
2015
 
ASSETS
           
Current assets:
           
Cash and cash equivalents
 
$
9,222,343
   
$
8,717,899
 
Marketable securities
   
--
     
245,474
 
Accounts receivable, net of allowance of $30,000
   
2,090,676
     
1,927,428
 
Other current assets
   
487,257
     
555,871
 
                 
Total current assets
   
11,800,276
     
11,446,672
 
                 
Property and equipment, net
   
430,324
     
395,026
 
Goodwill
   
1,954,460
     
1,954,460
 
Other assets
   
23,763
     
33,999
 
                 
Total assets
 
$
14,208,823
   
$
13,830,157
 
                 
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
Current liabilities:
               
Deferred revenue
 
$
8,088,958
   
$
7,436,764
 
Accounts payable
   
96,725
     
78,267
 
Accrued expenses
   
1,282,126
     
1,241,317
 
                 
Total current liabilities
   
9,467,809
     
8,756,348
 
                 
Deferred taxes on income, net
   
762,403
     
759,454
 
Other liabilities
   
12,574
     
4,314
 
                 
Total liabilities
   
10,242,786
     
9,520,116
 
                 
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 and  10,722,321 shares, respectively
   
107,224
     
107,223
 
Additional paid-in capital
   
29,419,463
     
29,279,791
 
Accumulated deficit
   
(25,560,650
)
   
(25,076,973
)
                 
Total stockholders’ equity
   
3,966,037
     
4,310,041
 
                 
Total liabilities and stockholders’ equity
 
$
14,208,823
   
$
13,830,157
 

About CreditRiskMonitor

CreditRiskMonitor (http://www.crmz.com) 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 like Dun & Bradstreet, CreditRiskMonitor’s primary expertise and focus is on financial analysis of public debt and equity companies.
 
The Company also collects more than $100 billion of trade receivable data on both public and a select group of private companies every month, to help subscribers determine payment performance.
 

Over 35% of the Fortune 1000 depend on CreditRiskMonitor's timely news alerts and reports featuring detailed analyses of financial statements, ratio analysis and trend reports, peer analyses, bond agency ratings, as well as the company's proprietary FRISK® score.

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.