1-10799
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73-1351610
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(Commission file Number)
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(IRS Employer Identification No.)
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1221 E. Houston, Broken Arrow Oklahoma
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74012
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(Address of Principal Executive Offices)
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(Zip Code)
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□
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Written Communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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□
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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□
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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□
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Pre-commencement communications pursuant to Rule 13e-4© under the Exchange Act (17 CFR 240.13e-4(c))
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Exhibit 99.1
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Press Release dated December 15, 2015 issued by the Company.
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SIGNATURES
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ADDvantage Technologies Group, Inc.
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Date: December 15, 2015
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By: /s/ Scott Francis
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Scott Francis
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Vice-President & Chief Financial Officer
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Exhibit Number
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Description
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99.1
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Press Release dated December 15, 2015 issued by the Company.
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For further information
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KCSA Strategic Communications
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Company Contact:
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Garth Russell
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Scott Francis (918) 251-9121
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(212) 896-1250
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grussell@kcsa.com
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Three Months Ended
September 30,
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Twelve Months Ended
September 30,
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2015
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2014
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2015
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2014
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Sales
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$ | 9,627,532 | $ | 12,131,986 | $ | 43,733,620 | $ | 35,888,692 | ||||||||
Cost of sales
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6,548,565 | 7,840,979 | 28,434,731 | 24,283,236 | ||||||||||||
Gross profit
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3,078,967 | 4,291,007 | 15,298,889 | 11,605,456 | ||||||||||||
Operating, selling, general and administrative expenses
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2,641,663 | 3,320,846 | 12,722,679 | 10,508,357 | ||||||||||||
Operating income
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437,304 | 970,161 | 2,576,210 | 1,097,099 | ||||||||||||
Interest expense
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69,716 | 86,803 | 305,310 | 217,910 | ||||||||||||
Income before income taxes
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367,588 | 883,358 | 2,270,900 | 879,189 | ||||||||||||
Provision for income taxes
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157,000 | 264,000 | 773,000 | 220,000 | ||||||||||||
Income from continuing operations
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210,588 | 619,358 | 1,497,900 | 659,189 | ||||||||||||
Discontinued operations:
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||||||||||||||||
Loss from discontinued operations, net of tax
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− | − | − | (36,211 | ) | |||||||||||
Loss on sale of discontinued operations, net of tax
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− | − | − | (629,835 | ) | |||||||||||
Discontinued operations, net of tax
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− | − | − | (666,046 | ) | |||||||||||
Net income (loss)
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$ | 210,588 | $ | 619,358 | $ | 1,497,900 | $ | (6,857 | ) | |||||||
Earnings (loss) per share:
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||||||||||||||||
Basic
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||||||||||||||||
Continuing operations
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$ | 0.02 | $ | 0.06 | $ | 0.15 | $ | 0.07 | ||||||||
Discontinued operations
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− | − | − | (0.07 | ) | |||||||||||
Net income (loss)
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$ | 0.02 | $ | 0.06 | $ | 0.15 | $ | (0.00 | ) | |||||||
Diluted
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||||||||||||||||
Continuing operations
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$ | 0.02 | $ | 0.06 | $ | 0.15 | $ | 0.07 | ||||||||
Discontinued operations
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− | − | − | (0.07 | ) | |||||||||||
Net income (loss)
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$ | 0.02 | $ | 0.06 | $ | 0.15 | $ | (0.00 | ) | |||||||
Shares used in per share calculation:
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||||||||||||||||
Basic
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10,063,563 | 10,041,206 | 10,055,552 | 10,021,431 | ||||||||||||
Diluted
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10,063,563 | 10,041,206 | 10,055,552 | 10,049,440 |
Three Months Ended September 30, 2015
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Three Months Ended September 30, 2014
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Cable TV
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Telco
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Total
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Cable TV
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Telco
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Total
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Operating income
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$ | 397,392 | $ | 39,912 | $ | 437,304 | $ | 624,338 | $ | 345,823 | $ | 970,161 | ||||||||||||
Depreciation
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82,254 | 26,858 | 109,112 | 73,546 | 27,937 | 101,483 | ||||||||||||||||||
Amortization
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− | 206,451 | 206,451 | − | 158,739 | 158,739 | ||||||||||||||||||
EBITDA
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$ | 479,646 | $ | 273,221 | $ | 752,867 | $ | 697,884 | $ | 532,499 | $ | 1,230,383 |
Year Ended September 30, 2015
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Year Ended September 30, 2014
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Cable TV
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Telco
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Total
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Cable TV
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Telco
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Total
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Operating income (loss)
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$ | 2,210,414 | $ | 365,796 | $ | 2,576,210 | $ | 1,492,100 | $ | (395,001 | ) | $ | 1,097,099 | |||||||||||
Depreciation
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296,876 | 111,827 | 408,703 | 293,353 | 66,926 | 360,279 | ||||||||||||||||||
Amortization
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− | 825,805 | 825,805 | − | 481,722 | 481,722 | ||||||||||||||||||
EBITDA (a)
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$ | 2,507,290 | $ | 1,303,428 | $ | 3,810,718 | $ | 1,785,453 | $ | 153,647 | $ | 1,939,100 |
(a)
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The Telco segment for the twelve months ended September 30, 2014 includes acquisition-related costs of $0.6 million related to the acquisition of Nave Communications.
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September 30,
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2015
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2014
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Assets
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Current assets:
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Cash and cash equivalents
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$ | 6,110,986 | $ | 5,286,097 | ||||
Accounts receivable, net of allowance of $250,000 and
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$200,000, respectively
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4,286,377 | 6,393,580 | ||||||
Income tax receivable
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− | 220,104 | ||||||
Inventories, net of allowance for excess and obsolete
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inventory of $2,756,628 and $2,156,628, respectively
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23,600,996 | 22,780,523 | ||||||
Prepaid expenses
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153,454 | 174,873 | ||||||
Deferred income taxes
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1,776,000 | 1,416,000 | ||||||
Total current assets
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35,927,813 | 36,271,177 | ||||||
Property and equipment, at cost:
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Land and buildings
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7,218,678 | 7,208,679 | ||||||
Machinery and equipment
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3,415,164 | 3,244,153 | ||||||
Leasehold improvements
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151,957 | 206,393 | ||||||
Total property and equipment, at cost
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10,785,799 | 10,659,225 | ||||||
Less: Accumulated depreciation
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(4,584,796 | ) | (4,191,516 | ) | ||||
Net property and equipment
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6,201,003 | 6,467,709 | ||||||
Intangibles, net of accumulated amortization
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5,799,473 | 6,625,278 | ||||||
Goodwill
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3,910,089 | 3,910,089 | ||||||
Other assets
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134,678 | 131,428 | ||||||
Total assets
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$ | 51,973,056 | $ | 53,405,681 | ||||
Liabilities and Shareholders’ Equity
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Current liabilities:
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Accounts payable
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$ | 1,784,482 | $ | 2,880,761 | ||||
Accrued expenses
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1,358,681 | 1,809,878 | ||||||
Income tax payable
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122,492 | − | ||||||
Notes payable – current portion
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873,752 | 845,845 | ||||||
Other current liabilities
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982,094 | 983,269 | ||||||
Total current liabilities
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5,121,501 | 6,519,753 | ||||||
Notes payable, less current portion
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4,366,130 | 5,240,066 | ||||||
Deferred income taxes
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286,000 | 267,000 | ||||||
Other liabilities
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1,064,717 | 1,942,889 | ||||||
Total liabilities
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10,838,348 | 13,969,708 | ||||||
Shareholders’ equity:
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Common stock, $.01 par value; 30,000,000 shares authorized;
10,564,221 and 10,541,864 shares issued, respectively;
10,063,563 and 10,041,206 shares outstanding, respectively
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105,642 | 105,419 | ||||||
Paid in capital
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(5,112,269 | ) | (5,312,881 | ) | ||||
Retained earnings
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47,141,349 | 45,643,449 | ||||||
Total shareholders’ equity before treasury stock
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42,134,722 | 40,435,987 | ||||||
Less: Treasury stock, 500,658 shares, at cost
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(1,000,014 | ) | (1,000,014 | ) | ||||
Total shareholders’ equity
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41,134,708 | 39,435,973 | ||||||
Total liabilities and shareholders’ equity
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$ | 51,973,056 | $ | 53,405,681 |