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Trusted by 40% of Fortune 1000
VALLEY COTTAGE, N.Y. – November 14, 2023 – CreditRiskMonitor® (OTCQX: CRMZ) reported operating revenues of $4.8 million, an increase of approximately $245 thousand or 5%, for the third quarter of fiscal 2023 compared to the same period of fiscal 2022. The Company reported pre-tax income of approximately $494 thousand, a decrease of approximately $133 thousand, for the third quarter of fiscal 2023 compared to the same period of fiscal 2022. The decrease in pre-tax profitability was primarily driven by increased expenses related to employee salaries, employee benefits, commissions, and third-party content due to inflation.
Mike Flum, CEO, said, “Corporate bankruptcy filings continue to increase relative to last year, and within our coverage universe of FRISK® and PAYCE® scored businesses, bankruptcies are almost 2.5 times greater year-to-date in 2023 versus 2022. In the same year-to-date comparison between 2023 and 2020, bankruptcies are 1.7 times greater in 2023, without a pandemic shutdown or significant bear market stressors like what occurred in 2020. We continue to monitor the zombie company contagion in markets with massive corporate debt maturities starting to come due in 2024. With the ‘higher for longer’ rate environment taking root in society and increasing geopolitical tensions, a sustained increase in corporate bankruptcies of highly leveraged businesses seems more probable.
We encourage our subscribers and prospects to prepare now by using our bankruptcy risk analytics to screen for high financial risk counterparties followed by deeper dives on liquidity, leverage, and maturity to identify counterparties in the most immediate danger. Ensuring that credit and sourcing policies are set and ready to deal with financially distressed businesses is a near-term necessity. This model has proven to be an effective and efficient workflow optimization strategy for our subscribers on both the CreditRiskMonitor and SupplyChainMonitor platforms.”
A full copy of the financial statements can be found at https://crmz.ir.edgar-online.com/.
Overview
CreditRiskMonitor.com, Inc. (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. Our primary SaaS subscription products for analyzing commercial financial risk are CreditRiskMonitor® and SupplyChainMonitor™. These products help corporate credit and procurement professionals stay ahead of and manage financial risk more quickly, accurately, and cost-effectively. Our subscribers include nearly 40% of the Fortune 1000 and well over a thousand other large corporations worldwide.
To help subscribers prioritize and monitor counterparty financial risk, our SaaS platforms offer the proprietary FRISK® and PAYCE® Scores as well as the FAST Rating, the well-known Altman Z”-Score, agency ratings from key Nationally Recognized Statistical Rating Organizations (“NRSROs”), curated news, and detailed financial spreads & ratios. Our FRISK® and PAYCE® Scores are financial distress classification models that measure a business’s probability of bankruptcy within a year. The FRISK® score also includes a risk signal based on the aggregate research behaviors of our subscribers, who control counterparty access to trade credit at some of the most sophisticated companies in the world. The inclusion of this risk signal boosts the overall accuracy of this bankruptcy analytic by lowering the false positive rate for the riskiest corporations.
Through its Trade Contributor Program, the Company receives monthly confidential accounts receivables data from hundreds of subscribers and non-subscribers, which it parses, processes, aggregates, and reports to summarize the invoice payment behavior of B2B counterparties without disclosing the specific contributors of this information. The size of the Trade Contributor Program’s current annualized trade credit transaction data is approximately $3 trillion.
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. Forward-looking statements include details of the accounting restatement, the expected impact of the accounting restatement and the remediation of the related material weakness in internal control over financial reporting. 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. There can be no assurance that (i) the consequences of the Company’s restated results will be as anticipated above and (ii) the Company will be able to promptly and efficiently implement the appropriate remediation steps into its financial reporting. 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, Chief Executive Officer
(845) 230-3037
ir@creditriskmonitor.com
