NEWPORT BEACH, CA--(Marketwired - May 14, 2013) - Accelerize New Media Inc. (
"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 Information Brian Ross Chairman & CEO (310) 710-0578 Email Contact www.accelerizenewmedia.com
