Accelerize New Media Inc. Reports First Quarter 2013 Financial Results

First Quarter Revenues Jumped 106% Year Over Year to a Record $2,163,407, While Net Income From Continuing Operations Reached $175,218

Marketwired

NEWPORT BEACH, CA--(Marketwired - May 14, 2013) - Accelerize New Media Inc. (OTCBB: ACLZ), owner and operator of Cake Marketing (www.cakemarketing.com), a highly scalable SaaS (Software-as-a-Service) platform providing a comprehensive and complete online tracking solution for advertisers -- from acquisition through conversion, today announced financial results for its fiscal first quarter ended March 31, 2013.

"Robust demand for the Cake Marketing platform led to a strong performance and start to 2013," said Accelerize New Media Inc. Chairman & CEO Brian Ross. "We are well positioned to grow revenues as brand advertisers and performance based marketers continue to adopt our technology, while utilizing our improved cash flows from operations have enabled us to accelerate sales and marketing initiatives and invest in product innovation."

Financial Highlights for Q1 2013 vs Q1 2012

  • Revenues: Total revenues increased 106% from $1,048,365 to $2,163,407 year over year, driven by a 75% increase in the average number of clients and an 18% increase in the average usage fees earned per client. We expect future revenues to be driven by ongoing organic growth, international expansion, and increased sales efforts.
  • Operating Income: Operating income reached $180,177, compared to an operating loss of $(175,647) year over year, due to higher revenues and contained expenses. We plan to continue managing our costs and scaling revenues to improve operating margins.
  • Net Income from Continuing Operations: Net income from continuing operations increased to $175,218, compared to a net loss of $(229,027) during the prior year period, due to growing revenues from a greater number of clients and higher average usage fees earned per client, as well as controlled expenses.
  • Cash Flow: Cash provided by continuing operations increased to $58,847, compared to net cash used in continuing operations of $(49,622) during the prior year period. The company invested $313,623 in ongoing research and development, and total operating expenses increased 62% to $1,983,230 to support our growth. Free cash flow, which amounts to cash flow from operations less capital expenditures, totaled $72,791.

About Accelerize New Media Inc.

Accelerize New Media, Inc. owns and operates Cake Marketing, a highly scalable SaaS (Software-as-a-Service) platform providing a comprehensive and complete online tracking solution for advertisers -- from acquisition through conversion. Easy-to-use wizards and real-time reporting guide users through every step of managing and optimizing campaigns. From traffic providers to advertisers, tracking to data distribution, Cake Marketing offers the most robust platform to manage your business and analyze the performance of your marketing relationships. Seamless integration with other services through a developed API eliminates bottlenecks while increasing ROI for advertisers.

Use of Forward-looking Statements

This press release may contain forward-looking statements from Accelerize New Media, Inc. within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and federal securities laws. For example, when we describe industry demand for the Cake Marketing platform and expectations for our future revenues, we are using forward-looking statements. These forward-looking statements are based on the current expectations of the management of Accelerize New Media only, and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: changes in technology and market requirements; our technology may not be validated as we progress further; we may be unable to retain or attract key employees whose knowledge is essential to the development of our products and services; unforeseen market and technological difficulties may develop with our products and services; inability to timely develop and introduce new technologies, products and applications; loss of market share and pressure on pricing resulting from competition, which could cause the actual results or performance of Accelerize New Media to differ materially from those contemplated in such forward-looking statements. Except as otherwise required by law, Accelerize New Media undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. For a more detailed description of the risk and uncertainties affecting Accelerize New Media, reference is made to Accelerize New Media's reports filed from time to time with the Securities and Exchange Commission.

             
ACCELERIZE NEW MEDIA INC.            
CONSOLIDATED BALANCE SHEETS            
             
             
             
    March 31, 2013     December 31, 2012  
    (Unaudited)     (Audited)  
ASSETS                
Current Assets:                
Cash   $ 357,389     $ 231,926  
Accounts receivable, net of allowance for bad debt of $40,224 and $18,208     838,306       673,818  
Prepaid expenses and other assets     50,811       42,783  
Total current assets     1,246,506       948,527  
                 
Property and equipment, net of accumulated depreciation of $51,516 and $38,918     87,504       52,297  
Note receivable, net of original issuance discount of $50,111 and $62,000     81,889       88,000  
                 
Total assets   $ 1,415,899     $ 1,088,824  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
                 
Current Liabilities:                
Accounts payable and accrued expenses   $ 218,521     $ 284,526  
Deferred revenues     10,158       24,616  
Convertible notes payable and accrued interest     176,244       176,244  
Notes payable and accrued interest, net of debt discount of $10,647 and $21,293     88,149       123,081  
Total current liabilities     493,072       608,467  
                 
Stockholders' Equity                
Common stock; $.001 par value; 100,000,000 shares authorized; 56,195,105 and 55,992,605 issued and outstanding     56,195       55,991  
Additional paid-in capital     16,474,040       16,267,461  
Accumulated deficit     (15,606,127 )     (15,843,095 )
Accumulated other comprehensive loss     (1,281 )     0  
                 
Total stockholders equity     922,827       480,357  
                 
Total liabilities and stockholders equity   $ 1,415,899     $ 1,088,824  
                 
                 
                 
ACCELERIZE NEW MEDIA INC.            
CONSOLIDATED STATEMENTS OF OPERATIONS            
             
             
             
             
    Three-month periods ended March 31,  
    2013     2012  
    (Unaudited)     (Unaudited)  
                 
Revenue:   $ 2,163,407     $ 1,048,365  
                 
Operating expenses:                
Cost of revenue     306,984       133,402  
Research and development     313,623       220,904  
Selling, general and administrative     1,362,623       869,706  
Total operating expenses     1,983,230       1,224,012  
                 
Operating income (loss)     180,177       (175,647 )
                 
Other income (expense):                
Interest income     13,667       0  
Interest expense     (18,626 )     (53,380 )
      (4,959 )     (53,380 )
                 
Net income (loss) from continuing operations     175,218       (229,027 )
                 
Discontinued operations                
Loss from discontinued operations     0       (55,962 )
Gain from the disposal of discontinued operations     61,750       0  
Net income (loss) from discontinued operations     61,750       (55,962 )
                 
Net income (loss)     236,968       (284,989 )
                 
Less dividends series A and B preferred stock     0       83,232  
                 
Net income (loss) attributable to common stock   $ 236,968     $ (368,221 )
                 
Earnings per share:                
Basic                
Continuing operations   $ 0.00     $ (0.01 )
Discontinued operations     0.00       0.00  
Net per share   $ 0.00     $ (0.01 )
                 
Diluted                
Continuing operations   $ 0.00     $ (0.01 )
Discontinued operations     0.00       0.00  
Net per share   $ 0.00     $ (0.01 )
                 
                 
Basic weighted average common shares outstanding     56,158,216       42,139,371  
Diluted weighted average common shares outstanding     69,394,505       42,139,371  
                 
                 
                 
ACCELERIZE NEW MEDIA INC.            
CONSOLIDATED STATEMENTS OF CASH FLOWS            
             
             
             
    Three-month periods ended March 31,  
    2013     2012  
Cash flows from operating activities:   (Unaudited)     (Unaudited)  
             
Net income (loss) from continuing operations   $ 175,218     $ (229,027 )
Adjustments to reconcile net loss to net cash used in operating activities:                
Depreciation and amortization     12,598       5,933  
Amortization of debt discount     10,646       50,777  
Amortization of original issuance discount     (11,889 )     0  
Fair value of options     125,781       55,840  
Changes in operating assets and liabilities:                
Accounts receivable     (164,488 )     (34,130 )
Prepaid expenses     22       (15,745 )
Other assets     (8,315 )     (7,000 )
Accrued interest     (578 )     196  
Accounts payable and accrued expenses     (65,690 )     159,617  
Deferred revenues     (14,458 )     (36,083 )
Net cash provided by (used in) continuing operations     58,847       (49,622 )
Net cash provided by (used in) discontinued operations     61,750       (9,850 )
Net cash provided by (used in) operating activities     120,597       (59,472 )
                 
Cash flows used in investing activities:                
Capital expenditures     (47,806 )     (5,084 )
Proceeds from sale of online marketing services business     18,000       0  
                 
Net cash used in investing activities     (29,806 )     (5,084 )
                 
Cash flows from financing activities:                
Principal repayments on notes payable     (45,000 )     (90,000 )
Net proceeds from exercise of warrants     81,000       115,538  
                 
Net cash provided by financing activities     36,000       25,538  
                 
Effect of exchange rate changes on cash     (1,328 )     0  
                 
Net increase (decrease) in cash     125,463       (39,018 )
                 
Cash, beginning of period     231,926       104,750  
                 
Cash, end of period   $ 357,389     $ 65,732  
                 
Supplemental disclosures of cash flow information:                
Cash paid for interest   $ 5,235     $ 17,912  
Cash paid for income taxes   $ -     $ -  
                 
Non-cash investing and financing activities:                
Conversion of preferred stock Series A to common stock   $ -     $ 322,339  
Conversion of preferred stock Series B to common stock   $ -     $ 3,565,813  
Conversion of note payable to common stock   $ -     $ 452,500  
Preferred stock dividends   $ -     $ 83,232  
                 
Contact:
Contact Information

Brian Ross
Chairman & CEO
(310) 710-0578
Email Contact
www.accelerizenewmedia.com
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