NEWS RELEASECONTACT:CreditRiskMonitor.com, Inc.Larry Fensterstock CFO (516) 620-5400, ext. 324 larryf@crmz.com FOR IMMEDIATE RELEASECreditRiskMonitor.com Announces 1st Quarter Pro Forma Operating ProfitFLORAL PARK, N.Y.--(BUSINESS WIRE)--May 17, 2004--CreditRiskMonitor.com, Inc. (Symbol: CRMZ) today announced operating results for the 3 months ended March 31, 2004. Jerry Flum, CEO, said "Below the surface of our financials the real story may be emerging. After subtracting out the large legal fees incurred in connection with our ongoing litigation, CRM achieved operating profit for the 1st quarter of 2004. In addition, over the last 12 months, using the same methodology, we are operating at positive cash flow. Readers should review the Management's Discussion and Analysis sections of our 1st quarter Form 10-QSB and our most recent Form 10-KSB for additional details." CreditRiskMonitor.com is an Internet-based financial information analysis and news service that competes with Dun & Bradstreet, and its web site is www.crmz.com. 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. The following presents the operating results for the three months ended March 31, 2004 and 2003, respectively, on an as reported and a pro forma basis that eliminates the litigation expenses:
3 Months Ended March 31, ---------------------------------------- 2004 2003 ------------------ -------------------- As Pro As Pro Reported Forma Reported Forma -------- -------- --------- --------- Operating revenues $827,197 $827,197 $ 690,178 $ 690,178 Operating expenses: Data and product costs 270,500 270,500 331,455 331,455 Selling, general & administrative 598,148 531,921 536,202 455,768 Depreciation and amortization 17,984 17,984 23,866 23,866 --------- --------- --------- --------- Total operating expenses 886,632 820,405 891,523 811,089 --------- --------- --------- --------- Income (loss) from operations (59,435) 6,792 (201,345) (120,911) Other income 2,064 2,064 3,013 3,013 Interest expense (18,848) (18,848) (21,041) (21,041) --------- --------- --------- --------- Loss before income taxes (76,219) (9,992) (219,373) (138,939) Income taxes 709 709 310 310 --------- --------- --------- --------- Net loss $(76,928) $(10,701) $(219,683) $(139,249) ========= ========= ========== ========== Net loss per share common share: Basic and diluted $ (0.01) $ (0.00) $ (0.04) $ (0.03) ========= ========= ========== ========== The following is a reconciliation of the GAAP to non-GAAP information for the operating results for the three months ended March 31, 2004 and 2003, respectively, that eliminates the litigation expenses:
3 Months ended March 31, ---------------------------- 2004 2003 ------ ------ Net loss ($76,928) ($219,683) Litigation expenses 66,227 80,434 ----------- ------------ Pro forma net loss ($10,701) ($139,249) |