CreditRiskMonitor Announces Second Quarter Results

VALLEY COTTAGE, NY / ACCESSWIRE / August 10, 2022 / CreditRiskMonitor (OTCQX:CRMZ) reported operating revenues of $4.45 million, an increase of approximately $202 thousand or 5%, for the three months ended June 30, 2022, as compared to the second quarter of fiscal 2021. The Company reported pre-tax income of approximately $296 thousand, a decrease of approximately $122 thousand as compared to the second quarter of fiscal 2021. The decrease in pre-tax income was primarily driven by increased expenses related to employee salaries, employee benefits, commissions, and third-party content due to inflation.

Mike Flum, President & COO, said, "Since our last filing, we have launched our new supply chain risk platform, SupplyChainMonitor™, which is garnering interest from the market and progressing under our go-to-market strategy. Our next upcoming new product release is an update to the PAYCE® score that will expand its private company coverage by over 3x to more than 300 thousand businesses and improve its predictive accuracy by almost 10% to a bankruptcy capture rate of 80% or better. The new model architecture will also allow us to provide the PAYCE® Score Analysis section in our credit reports, which summarizes the factors driving the score for a covered company. The parallel FRISK® Score Analysis report section that launched back in 2018 received subscriber accolades for its utility and transparency, so we are very excited about bringing that same value enhancement to our PAYCE® scored company reports.

Macroeconomically, there continues to be mounting pressure on financially-distressed businesses due to rising interest rates, inflation, and lack of supplies. These effects are expected to endure in the second half of 2022 and should contribute to the upward trend in bankruptcies relative to 2021. Year-to-date as of August 1, 2022, we have recorded 47 public company bankruptcies as compared to 27 over the same period in 2021. Our recent research indicates that almost 31% of over 30 thousand public companies cannot cover their interest expenses with their earnings before interest and taxes ("EBIT") on a trailing twelve-month basis. Many of those businesses have short-term debt-to-total debt percentages of 40% or more. The confluence of these factors coupled with the record overall debt levels at non-financial corporates suggests the potential for a serious wave of public company bankruptcies in the future.

The mounting awareness of bankruptcy risk has traditionally benefited our business; however, the challenges associated with operating in high inflation and recessionary environments are always risk factors. Our commitment to reinvesting in the Company through new product development, data acquisition, and employee retention remains our top priority to support our mission of delivering subscription services whose value exceeds the cost to our clients."

A full copy of the financial statements can be found at https://crmz.ir.edgar-online.com/

Overview

CreditRiskMonitor® (creditriskmonitor.com) sells a suite of web-based, SaaS subscription products providing access to comprehensive commercial credit reports, bankruptcy risk analytics, financial and payment information, and curated news on public and private companies worldwide. The products help corporate credit and procurement professionals stay ahead of and manage financial risk more quickly, accurately, and cost-effectively.

Our subscribers, including more than 35% of the Fortune 1000 and well over a thousand other large corporations worldwide, use the Company's timely news alerts, research, and reports on public and private companies to make important risk decisions. The Company's comprehensive commercial credit reports covering both public and private companies worldwide are published through its web-based platform and feature detailed analyses of financial statements, including ratio analysis and trend reports, peer analysis, corporate issuer ratings from key Nationally Recognized Statistical Rating Organizations ("NRSROs"), as well as the Company's proprietary bankruptcy analytics: the FRISK® and PAYCE® scores. One of the FRISK® scoring model's exclusive input features is the aggregate risk sentiment of our subscribers based on their crowdsourced usage behaviors resulting in the improved classification of bankruptcy risk for the riskiest corporations and boosting overall accuracy.

The Company, through its Trade Contributor Program, receives confidential accounts receivables data from hundreds of subscribers and non-subscribers every month. This trade receivable data is parsed, processed, aggregated, and finally reported to summarize the invoice payment behavior of B2B counterparties, without disclosing the specific contributors of this information. The Trade Contributor Program's current trade credit file exceeds $2.5 trillion of transaction data annually.

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.

CONTACT:

CreditRiskMonitor.com, Inc.
Mike Flum, President & COO
(845) 230-3037
ir@creditriskmonitor.com

SOURCE: CreditRiskMonitor.com, Inc.