Accelerize New Media, Inc. Reports Second Quarter 2013 Financial Results
Marketwired
NEWPORT BEACH, CA--(Marketwired - Aug 13, 2013) - Accelerize New Media, Inc. (OTCBB: ACLZ), owner and operator of CAKE, a highly-scalable enterprise Software-as-a-Service (SaaS) platform providing business intelligence to performance-based marketers -- from acquisition to conversion, today announced financial results for its fiscal second quarter ended June 30, 2013.
"New client additions and increased usage by existing clients led to another record quarter of revenue growth," said Brian Ross, Accelerize New Media, Inc. Chairman and CEO. "Our strong reputation and commitment to R&D excellence has enabled us to attract and hire top industry talent, while we continue to evaluate strategic alternatives to maximize shareholder value. We are confident that these R&D investments and sales force additions will result in ongoing market share gains, as the advertising industry embraces online performance-based marketing."
Financial Highlights for Q2 2013 vs. Q2 2012
Revenues: Total revenues for the quarter increased 75% from $1,294,720 to $2,259,395 year over year, driven by a 65% increase in the average number of clients and a 6% increase in the average monthly fee per client. We expect future revenues to be driven by organic growth, international expansion, and increased sales efforts.
Income from Continuing Operations: Despite a 33% quarterly increase in research and development and a 114% quarterly increase in SG&A expenses due to new sales hires to support our anticipated growth, we realized a positive income from continuing operations for the period of $20,177, compared to $21,752 a year ago. We anticipate income from continuing operations to improve as these R&D and SG&A investments begin to pay off later this year.
Balance Sheet: Cash and cash equivalents for the quarter increased from $45,040 to $906,640 year over year, and our working capital, which is $1,357,275 as of June 30, 2013, provides us with greater flexibility to invest in research and development and expand our sales force both domestically and internationally. We strive to maintain a balanced capital structure to support consistent long-term growth.
About Accelerize New Media, Inc.
Accelerize New Media, Inc. owns and operates CAKE, an enterprise SaaS (Software-as-a-Service) platform providing business intelligence to performance-based marketers from acquisition to conversion. With an easy-to-use interface and real-time reporting, performance-based marketers can quickly setup, manage, and optimize their campaigns. Seamless integration with external services through a robust API provides clients with a single dashboard that helps increase revenues, lower operational costs, and improve the ROIs of their campaigns.
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 say that we are evaluating strategic alternatives to maximize shareholder value and that we are confident that R&D investments and staff additions will result in ongoing market share gains and when we describe our expectations for our future growth and 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.
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30,
December 31,
ASSETS
2013
2012
(Unaudited)
(1)
Current Assets:
Cash
$
906,640
$
231,926
Accounts receivable, net
869,140
673,818
Other assets
100,517
42,783
Total current assets
1,876,297
948,527
Property and equipment, net
90,876
52,297
Note receivable, net
-
88,000
Total assets
$
1,967,173
$
1,088,824
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses
$
241,704
$
284,526
Deferred revenues
51,255
24,616
Convertible notes payable and notes payable
226,063
299,325
Total current liabilities
519,022
608,467
Total stockholders' equity
1,448,151
480,357
Total liabilities and stockholders' equity
$
1,967,173
$
1,088,824
(1) Derived from audited financial statements
ACCELERIZE NEW MEDIA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three-month periods ended
Six-month periods ended
June 30,
June 30,
2013
2012
2013
2012
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Revenues:
$
2,259,395
$
1,294,720
$
4,422,802
$
2,343,085
Operating expenses:
Cost of revenue
328,296
235,124
635,280
368,526
Research and development
365,075
274,975
678,698
495,879
Selling, general and administrative
1,532,430
717,161
2,895,053
1,586,867
Total operating expenses
2,225,801
1,227,260
4,209,031
2,451,272
Operating income (loss)
33,594
67,460
213,771
(108,187
)
Other expenses
(13,417
)
(45,708
)
(18,376
)
(99,088
)
Income (loss) from continuing operations
20,177
21,752
195,395
(207,275
)
Income (loss) from discontinued operations, net
38,611
27,444
100,361
(28,518
)
Net income (loss)
58,788
49,196
295,756
(235,793
)
Less dividends series A and B preferred stock
-
-
-
83,232
Net income (loss) attributable to common stock
$
58,788
$
49,196
$
295,756
$
(152,561
)
Earnings per share:
Basic
Continuing operations
$
0.00
$
0.00
$
0.00
$
(0.00
)
Discontinued operations
$
0.00
$
0.00
$
0.00
$
(0.00
)
Net income (loss) per share
$
0.00
$
0.00
$
0.01
$
(0.00
)
Diluted
Continuing operations
$
0.00
$
0.00
$
0.00
$
(0.00
)
Discontinued operations
$
0.00
$
0.00
$
0.00
$
(0.00
)
Net income (loss) per share
$
0.00
$
0.00
$
0.00
$
(0.00
)
Basic weighted average common shares outstanding
56,644,643
55,719,575
56,337,069
48,923,639
Diluted weighted average common shares outstanding
75,346,900
61,587,751
72,369,773
48,923,639
ACCELERIZE NEW MEDIA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Six-month periods ended
June 30,
2013
2012
(Unaudited)
(Unaudited)
Cash flows from operating activities:
Net income (loss) from continuing operations
$
195,395
$
(207,275
)
Adjustments to reconcile net loss from continuing operations to net cash provided by operating activities:
412,477
132,539
Changes in operating assets and liabilities:
(277,344
)
64,778
Net cash provided by (used in) continuing operations
330,528
(9,958
)
Net cash provided by discontinued operations
-
15,383
Net cash provided by operating activities
330,528
5,425
Net cash provided by (used in) investing activities
13,584
(11,022
)
Cash flows provided by (used in) financing activities:
Principal repayments on notes payable
(90,000
)
(180,000
)
Proceeds from exercise of warrants and options
421,996
125,887
Net cash provided by (used in) financing activities
