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CreditRiskMonitor Announces 2012 Operating Results

VALLEY COTTAGE, NY--(Marketwire - Mar 14, 2013) -  CreditRiskMonitor ( OTCQX : CRMZ ) reported that for the year ended December 31, 2012 revenues increased 9% to $11.06 million compared to fiscal 2011, while income from operations was $0.97 million versus $1.21 million in the prior year. Cash, cash equivalents and marketable securities at the end of 2012 decreased $0.14 million, after the payment of a cash dividend of $1.59 million in the fourth quarter of 2012, to $8.15 million from the 2011 year-end balance of $8.28 million.

Jerry Flum, CEO, said, "Our profits are down despite growing sales as the Company continues to invest in an enhanced infrastructure and additional content, which is in addition to strengthening our sales and customer service staffs. These strategic investments adversely impact our short-term results, but we strongly believe they will enhance our long-term prospects. We continue to be debt-free and our strong balance sheet provides us with financial flexibility to manage our company to achieve our long-term goals."

   
   
CREDITRISKMONITOR.COM, INC.  
STATEMENTS OF INCOME  
FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011  
   
    2012     2011  
                 
Operating revenues   $ 11,062,619     $ 10,154,200  
                 
Operating expenses:                
  Data and product costs     3,731,218       3,310,779  
  Selling, general and administrative expenses     6,206,917       5,468,802  
  Depreciation and amortization     150,069       162,482  
                   
    Total operating expenses     10,088,204       8,942,063  
                 
Income from operations     974,415       1,212,137  
Other income, net     21,945       98,592  
                 
Income before income taxes     996,360       1,310,729  
Provision for income taxes     (466,543 )     (402,140 )
                 
Net income   $ 529,817     $ 908,589  
                 
Net income per share of common stock:                
                 
  Basic   $ 0.07     $ 0.11  
                 
  Diluted   $ 0.06     $ 0.11  
                 
                 
                 
CREDITRISKMONITOR.COM, INC.  
BALANCE SHEETS  
DECEMBER 31, 2012 AND 2011  
   
    2012     2011  
ASSETS                
Current assets:                
  Cash and cash equivalents   $ 6,422,458     $ 6,531,204  
  Marketable securities     1,725,633       1,753,072  
  Accounts receivable, net of allowance of $30,000     1,776,151       1,551,213  
  Other current assets     548,838       451,143  
                   
    Total current assets     10,473,080       10,286,632  
                 
Property and equipment, net     260,438       306,810  
Goodwill     1,954,460       1,954,460  
Other assets     21,970       23,232  
                 
    Total assets   $ 12,709,948     $ 12,571,134  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
Current liabilities:                
  Deferred revenue   $ 6,978,797     $ 6,471,494  
  Accounts payable     44,097       60,941  
  Accrued expenses     1,161,498       1,087,163  
                 
    Total current liabilities     8,184,392       7,619,598  
                 
Deferred taxes on income     591,355       157,385  
Other liabilities     5,190       3,714  
                 
    Total liabilities     8,780,937       7,780,697  
                 
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 7,946,462 and 7,920,462 shares, respectively     79,464       79,204  
  Additional paid-in capital     28,795,496       28,597,679  
  Accumulated deficit     (24,945,949 )     (23,886,446 )
                 
    Total stockholders' equity     3,929,011       4,790,437  
                 
    Total liabilities and stockholders' equity   $ 12,709,948     $ 12,571,134  
                 

Overview

CreditRiskMonitor (http://www.crmz.com) is an Internet-based publisher of financial risk analysis and news, designed to save time for busy corporate credit and procurement/supply-chain professionals and competes with Dun & Bradstreet. The service offers comprehensive commercial credit reports covering over 40,000 public companies worldwide. Over 30% of the Fortune 1,000 already use CreditRiskMonitor's timely news alerts and reports that feature detailed analyses of financial statements, ratio analysis and trend reports, peer analyses, as well as the Company's proprietary FRISK® scores.

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.