EX-99.1 2 dex991.htm COMPANY PRESS RELEASE Company Press Release

Exhibit 99.1

LOGO

Company Press Release

Wednesday March 4, 2009 4:00 p.m.

Advant-e Corporation Announces Financial Results for 2008

Company Reports 24% Increase in Revenue over Prior Year, Net Income Exceeds $1 Million for 2nd Consecutive Year

DAYTON, Ohio, Wednesday March 4, 2009 — Advant-e Corporation (OTC Bulletin Board: AVEE), a provider of Internet-based Electronic Data Interchange services and electronic document management software and services today announced financial and operating results for the year ending December 31, 2008.

The Company reported record revenues for 2008 of $8,869,169, a 24% increase over revenues of $7,162,329 for 2007. The increase is attributable to continued growth of the Company’s internet-based EDI services and the first full year of revenue from products and services sold by Merkur Group, Inc., which was acquired on July 2, 2007.

The Company reported record net income for 2008 of $1,063,790 or $.16 per share compared to $1,022,679 or $.15 per share in 2007. Net income increased 4% in 2008 compared to 2007.

Highlights of 2008 financial and operating results include:

 

   

Revenue Increased for the Eighth Consecutive Year – Revenue increased across all significant product and service categories in 2008 compared to 2007, including Web EDI growth of 10% in grocery and 23% in automotive.

 

   

Net Income Exceeded $1 million for Second Consecutive Year – The Company in 2008 reported net income for the sixth consecutive year.

 

   

Merkur Group Inc. Acquisition – On July 2, 2007, the Company acquired Merkur Group Inc. Merkur contributed $2,137,152 to revenue in 2008 and net income of $121,048 before deducting non-cash charges pertaining to amortization of intangible assets of $54,216.

 

   

Strong Cash Position at Year-end – Cash and cash equivalents of almost $2.1 million provides a solid foundation for meeting the economic challenges due to the credit crisis and weakening economy in 2009.

 

   

One Time Dividend – In 2008 the Company paid a one-time cash dividend of $.14 per share totaling $940,704 to shareholders of record as of October 24, 2008.

 

   

The Company has no Outstanding Bank or Other Long-Term Debt – The Company continues to maintain an unused $1 million bank line of credit.

 

   

Share Repurchase Program – In 2008 the Company repurchased 101,096 shares of common stock at an average price of $1.49 per share.

Mr. Jason K. Wadzinski, Chairman and CEO of Advant-e stated, “2008 was a challenging year for Advant-e and almost all other companies due to the credit crisis, weakening economy, and other factors. I am pleased that even with all of the issues that have negatively impacted businesses across the country, we continued to grow top line revenue last year and that we surpassed $1 million in net income for the second consecutive year.”


“Many of our customers are facing significant challenges due to the current recession. This is especially true in the automotive and manufacturing sector which represented 9% of Edict System’s revenue last year. Merkur Group met our expectations in 2008, but weakness occurred in the second half of 2008, which we believe is directly attributable to the overall economy.”

“Due to the recurring nature of much of our revenue, our strong balance sheet, and the exceptional value proposition of our product and service offerings, we believe we are well positioned to weather the current economic challenges in 2009 and beyond.”

About Advant-e Corporation

Advant-e, via its wholly owned subsidiaries Edict Systems, Inc. and Merkur Group, Inc., is a provider of internet-based Electronic Data Interchange (EDI) and electronic document management software and services. The Company helps businesses automate manual, paper-intensive processes via expanded use of EDI or by integrating directly with ERP/MRP systems.

Additional information about Advant-e Corporation can be found at www.Advant-e.com, www.EdictSystems.com, and www.MerkurGroup.com, or by contacting investor relations at (937) 429-4288. The Company’s email is info@edictsystems.com.


ADVANT-E CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

For the years ended December 31, 2008 and 2007

 

     2008     2007

Revenue

   $ 8,869,169     7,162,329

Cost of revenue

     3,476,670     2,498,850
            

Gross margin

     5,392,499     4,663,479

Marketing, general and administrative expenses

     3,705,542     3,147,344
            

Operating income

     1,686,957     1,516,135

Other income (expense), net

     (30,701 )   77,431
            

Income before income taxes

     1,656,256     1,593,566

Income tax expense

     592,466     570,887
            

Net income

   $ 1,063,790     1,022,679
            

Earnings per share – basic and diluted

   $ 0.16     0.15
            

Weighted average shares outstanding – basic and diluted

     6,785,794     6,655,808
            


ADVANT-E CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

December 31, 2008 and 2007

 

     2008     2007  

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 2,090,005     2,039,447  

Short-term investments

     232,721     292,151  

Accounts receivable, net

     699,095     805,241  

Prepaid software maintenance costs

     156,027     183,618  

Prepaid expenses and deposits

     74,361     68,930  

Prepaid income taxes

     16,837     —    

Deferred income taxes

     152,156     70,554  
              

Total current assets

     3,421,202     3,459,941  

Software development costs, net

     112,453     194,238  

Property and equipment, net

     434,645     433,658  

Goodwill

     1,474,615     1,450,368  

Other intangible assets, net

     413,932     498,644  
              

Total assets

   $ 5,856,847     6,036,849  
              

Liabilities and Shareholders’ Equity

    

Current liabilities:

    

Accounts payable

   $ 207,374     211,738  

Accrued salaries and other expenses

     283,360     273,210  

Income taxes payable

     —       112,700  

Deferred revenue

     583,677     645,093  
              

Total current liabilities

     1,074,411     1,242,741  

Deferred income taxes

     335,663     319,355  
              

Total liabilities

     1,410,074     1,562,096  
              

Shareholders’ equity:

    

Common stock, $.001 par value; 20,000,000 shares authorized; 6,738,261 shares issued and 6,713,919 shares outstanding at December 31, 2008; 6,875,015 shares issued and 6,815,015 shares outstanding at December 31, 2007

     6,738     6,875  

Paid-in capital

     2,020,206     2,210,200  

Retained earnings

     2,455,764     2,332,678  

Treasury stock, at cost, 24,342 and 60,000 shares at December 31, 2008 and 2007, respectively

     (35,935 )   (75,000 )
              

Total shareholders’ equity

     4,446,773     4,474,753  
              

Total liabilities and shareholders’ equity

   $ 5,856,847     6,036,849  
              


ADVANT-E CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the years ended December 31, 2008 and 2007

 

     2008     2007  

Cash flows from operating activities:

    

Net income

   $ 1,063,790     1,022,679  

Adjustments to reconcile net income to net cash flows from operating activities:

    

Depreciation

     284,097     228,614  

Amortization of software development costs

     81,785     68,746  

Amortization of other intangible assets

     84,712     42,356  

Deferred income taxes

     (65,294 )   (69,732 )

Purchases of trading securities

     (264,182 )   (187,218 )

Proceeds from sale of trading securities

     258,457     183,694  

Net realized (gain) loss on sales of securities

     952     (2,438 )

Net unrealized (gain) loss on trading securities

     64,203     (11,755 )

Increase (decrease) in cash arising from changes in assets and liabilities, net of effects of acquisition:

    

Accounts receivable

     106,146     (12,192 )

Prepaid software maintenance costs

     27,591     (11,306 )

Prepaid expenses and deposits

     (5,431 )   (2,182 )

Prepaid income taxes

     (16,837 )   —    

Accounts payable

     (4,364 )   (41,084 )

Accrued salaries and other expenses

     10,150     47,487  

Income taxes payable

     (136,947 )   3,058  

Deferred revenue

     (61,416 )   61,721  
              

Net cash flows from operating activities

     1,427,412     1,320,448  
              

Cash flows from investing activities:

    

Purchases of property and equipment

     (285,084 )   (242,125 )

Software development costs

     —       (15,363 )

Purchase of Merkur Group, Inc.

     —       (998,295 )
              

Net cash flows from investing activities

     (285,084 )   (1,255,783 )
              

Cash flows from financing activities:

    

Net payments on bank line of credit

     —       (160,000 )

Purchase of treasury shares

     (151,066 )   (75,000 )

Dividends paid

     (940,704 )   —    
              

Net cash flows from financing activities

     (1,091,770 )   (235,000 )
              

Net increase (decrease) in cash and cash equivalents

     50,558     (170,335 )

Cash and cash equivalents, beginning of year

     2,039,447     2,209,782  
              

Cash and cash equivalents, end of year

   $ 2,090,005     2,039,447  
              

Supplemental disclosures of cash flow items:

    

Income taxes paid

   $ 810,279     637,561  

Non cash transactions:

    

Retirement of shares

   $ 190,131     —    

Issuance of shares for purchase of Merkur Group, Inc.

   $ —       568,692  

The information in this news release includes certain forward looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements to the future financial performance of the company. Although the company believes that the expectations reflected on its forward looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development and acceptance, the impact of competitive services and pricing, or general economic risks and uncertainties.