Accelerize New Media, Inc. Reports Third Quarter 2013 Financial Results

Third Quarter Revenues Increased 61% Year Over Year to a Record $2.53 MM, While Year-to-Date Revenues Increased 78% to $6.95 MM

Marketwired

NEWPORT BEACH, CA--(Marketwired - Nov 14, 2013) - Accelerize New Media, Inc. (OTCBB: ACLZ), owner and operator of CAKE, a highly-scalable enterprise Software-as-a-Service (SaaS) platform providing business intelligence to performance-based marketers -- from acquisition to conversion, today announced financial results for its fiscal third quarter ended September 30, 2013.

"Continued growth in net customer acquisitions contributed to record third quarter revenues," said Brian Ross, Accelerize New Media, Inc. Chairman and CEO. "Our investments in sales and marketing has helped drive these top-line results, while we continue to innovate on the product-side with an ongoing investments in R&D. As advertisers look for a higher return on investment, marketing budgets are increasingly shifting towards performance-based campaigns, and we are well positioned to benefit from these market dynamics."

Financial Highlights for Q3 2013 vs. Q3 2012

  • Revenues: Total revenues for the quarter increased 61% from $1.57 MM to $2.53 MM year over year, driven by a 58% increase in the average number of clients. Year to date revenues increased 78% from $3.9MM to $6.95 MM. International revenues also grew from 4% to 10% of revenues over the nine-month period year over year. We expect future revenues to be driven by organic growth, international expansion, and increased sales efforts.
  • Income from Continuing Operations: Operating income from continuing operations remained positive at $92,681, as management continued to invest in both marketing efforts and R&D initiatives. Up-front expenses related to developing and integrating European operations also impacted operating income. We plan on spending in a way that accelerates revenue growth and builds long-term shareholder value.
  • Balance Sheet: We ended the quarter with no long-term debt and cash and cash equivalents of $1,030,099 as of September 30, 2013, an increase from $231,926 during 2012. The increase in cash and cash equivalents provides us with greater flexibility to invest in growth initiatives, and adds to our shareholders' equity of $2,185,955. We strive to maintain a balanced capital structure to support consistent long-term growth.

About Accelerize New Media, Inc.

Accelerize New Media, Inc. (OTCBB: ACLZ) owns and operates CAKE, an enterprise SaaS (Software-as-a-Service) platform providing business intelligence to performance-based marketers from acquisition to conversion. With an easy-to-use interface and real-time reporting, performance-based marketers can quickly setup, manage, and optimize their campaigns. Seamless integration with external services through a robust API provides clients with a single dashboard that helps increase revenues, lower operational costs, and improve the ROIs of their campaigns. To learn more, visit www.accelerizenewmedia.com.

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 say that we are well positioned to benefit from market dynamics and when we describe our expectations for our future growth, revenues, and shareholder value, 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.
CONDENSED CONSOLIDATED BALANCE SHEETS
 
    September 30,   December 31,
ASSETS   2013   2012
    (Unaudited)   (1)
Current Assets:            
  Cash   $ 1,030,099   $ 231,926
  Accounts receivable, net     1,051,959     673,818
  Other assets     101,673     42,783
    Total current assets     2,183,731     948,527
               
  Property and equipment, net     492,061     52,297
               
  Note receivable, net     -     88,000
    Total assets   $ 2,675,792   $ 1,088,824
             
LIABILITIES AND STOCKHOLDERS' EQUITY            
             
Current Liabilities:            
  Accounts payable and accrued expenses   $ 466,037   $ 284,526
  Deferred revenues     23,800     24,616
  Convertible notes payable and notes payable     -     299,325
    Total current liabilities     489,837     608,467
                 
    Total stockholders' equity     2,185,955     480,357
                 
    Total liabilities and stockholders' equity   $ 2,675,792   $ 1,088,824
             
(1) Derived from audited financial statements            
             
             
   
   
ACCELERIZE NEW MEDIA, INC.  
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS  
                         
    Three-month periods ended     Nine-month periods ended  
    September 30,     September 30,  
    2013     2012     2013     2012  
    (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  
                                 
Revenues:   $ 2,531,479     $ 1,570,948     $ 6,954,281     $ 3,914,033  
                                 
Operating expenses:                                
  Cost of revenue     350,028       251,219       985,308       619,745  
  Research and development     330,162       370,269       1,008,860       724,065  
  Sales and Marketing     513,511       168,106       1,074,247       445,328  
  General and administrative     1,245,097       574,314       3,579,414       2,026,041  
    Total operating expenses     2,438,798       1,363,908       6,647,829       3,815,179  
                                   
  Operating income     92,681       207,040       306,452       98,854  
                                 
Other expenses     (6,748 )     (40,908 )     (25,124 )     (139,996 )
                                 
Income (loss) from continuing operations     85,933       166,132       281,328       (41,142 )
                                 
Income from discontinued operations, net     65,250       276,834       165,611       248,316  
                                 
Net income     151,183       442,966       446,939       207,174  
                                 
Less dividends series A and B preferred stock     -       -       -       83,232  
                                 
Net income (loss) attributable to common stock   $ 151,183     $ 442,966     $ 446,939     $ 123,942  
                                 
Earnings per share:                                
Basic                                
  Continuing operations   $ 0.00     $ 0.00     $ 0.00     $ (0.00 )
  Discontinued operations   $ 0.00     $ 0.00     $ 0.00     $ 0.00  
  Net income (loss) per share   $ 0.00     $ 0.01     $ 0.01     $ 0.00  
                                 
Diluted                                
  Continuing operations   $ 0.00     $ 0.00     $ 0.00     $ (0.00 )
  Discontinued operations   $ 0.00     $ 0.00     $ 0.00     $ 0.00  
  Net income (loss) per share   $ 0.00     $ 0.01     $ 0.01     $ 0.00  
                                 
                                 
Basic weighted average common shares outstanding     57,287,742       55,745,059       56,655,376       51,219,378  
Diluted weighted average common shares outstanding     74,901,617       59,997,047       72,127,659       57,585,551  
                                 
                                 
   
   
ACCELERIZE NEW MEDIA, INC.  
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS  
             
    Nine-month periods ended  
    September 30,  
    2013     2012  
    (Unaudited)     (Unaudited)  
Cash flows from operating activities:                
Net income   $ 446,939     $ 207,174  
Non-cash Discontinued operations     (145,722 )     (248,316 )
Cash Discontinued Operations     -       8,455  
  Adjustments to reconcile net loss from continuing operations to net cash provided by operating activities:    
608,699
     
283,167
 
  Changes in operating assets and liabilities:     (270,215 )     (145,836 )
Net cash provided by operating activities     639,701       104,644  
                 
Net cash provided by (used in) investing activities     (403,553 )     172,472  
                 
Cash flows provided by (used in) financing activities:                
  Principal repayments on notes payable     (266,180 )     (320,000 )
  Proceeds from exercise of warrants and options     829,371       125,887  
                 
Net cash provided by (used in) financing activities     563,191       (194,113 )
                 
Effect of exchange rate changes on cash     (1,166 )     -  
                 
  Net increase (decrease) in cash     798,173       83,003  
                 
Cash, beginning of period     231,926       104,750  
                 
Cash, end of period   $ 1,030,099     $ 187,753  
                 
                 
Contact:

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

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