NEWPORT BEACH, CA -- (Marketwired) -- 05/14/13 -- Accelerize New Media Inc. (OTCBB: ACLZ), owner and operator of Cake Marketing (www.cakemarketing.com), a highly scalable SaaS (Software-as-a-Service) platform providing a comprehensive and complete online tracking solution for advertisers -- from acquisition through conversion, today announced financial results for its fiscal first quarter ended March 31, 2013.
"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, December 31,
2013 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 (15,606,12
7) (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
