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

Exhibit 99.1

LOGO

Company Press Release

Friday, May 15, 2009

Advant-e Corporation Announces First Quarter 2009 Results

Company Reports Net Income for 23rd Consecutive Quarter; Revenue for Internet-based EDI

Services Increased; Software Revenue Decreased

DAYTON, Ohio, May 15, 2009 — Advant-e Corporation (OTC Bulletin Board: AVEE) today announced financial and operating results for the first quarter of 2009. The Company provides Internet-based Electronic Data Interchange services through Edict Systems, Inc. and sells electronic document management software and services through Merkur Group, Inc. Edict Systems and Merkur Group are wholly owned subsidiaries of Advant-e Corporation.

For the first quarter of 2009 the Company reported revenue of $2,155,291, an 8% decrease compared to revenue of $2,345,234 in the first quarter of 2008. Revenue from Edict Systems increased by $111,752, but revenue from Merkur Group fell by $301,695.

Net income for the first quarter of 2009 was $234,677, or $.03 per share, an 11% decrease compared to net income of $264,910, or $.04 per share, for the same period in 2008.

Jason K. Wadzinski, Chairman of the Board and Chief Executive Officer, remarked, “As stated in previous earnings releases, current economic weakness is having a more pronounced impact on software sales by Merkur Group than internet-based EDI services provided by Edict Systems. Although Merkur’s results are below our internal targets, the steep decline in Merkur’s revenue year-over-year is mainly due to the strong sales Merkur reported in the first quarter of 2008.”

“I believe that given the current economic conditions, our overall performance and level of profitability are satisfactory. We are continuing to focus on our core markets as well as expanding into new industries and we are investing in the people and resources deemed appropriate to position the company for increased activity going forward.”

About Advant-e Corporation

Advant-e, via its wholly owned subsidiaries Edict Systems, Inc. and Merkur Group, Inc. is a provider of internet-based hosted 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.

 

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ADVANT-E CORPORATION AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)

 

     Three Months Ended
March 31,
     2009     2008

Revenue

   $ 2,155,291     2,345,234

Cost of revenue

     899,659     920,846
            

Gross margin

     1,255,632     1,424,388

Marketing, general and administrative expenses

     887,285     1,006,002
            

Operating income

     368,347     418,386

Other income (expense), net

     (19,649 )   5,204
            

Income before income taxes

     348,698     423,590

Income tax expense

     114,021     158,680
            

Net income

   $ 234,677     264,910
            

Earnings per share – basic and diluted

   $ 0.03     0.04
            

Weighted average shares outstanding – basic and diluted

     6,711,699     6,815,015
            

 

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ADVANT-E CORPORATION AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

 

     March 31,
2009
    December 31,
2008
 
     (Unaudited)        

Assets

    

Current Assets:

    

Cash and cash equivalents

   $ 2,378,330     2,090,005  

Short-term investments

     203,774     232,721  

Accounts receivable, net

     828,295     699,095  

Prepaid software maintenance costs

     172,856     156,027  

Prepaid expenses and deposits

     79,601     74,361  

Prepaid income taxes

     —       16,837  

Deferred income taxes

     153,700     152,156  
              

Total current assets

     3,816,556     3,421,202  

Software development costs, net

     92,008     112,453  

Property and equipment, net

     379,268     434,645  

Goodwill

     1,474,615     1,474,615  

Other intangible assets, net

     392,754     413,932  
              

Total assets

   $ 6,155,201     5,856,847  
              

Liabilities and Shareholders’ Equity

    

Current liabilities:

    

Accounts payable

   $ 209,176     207,374  

Accrued salaries and other expenses

     245,469     283,360  

Income taxes payable

     116,223     —    

Deferred revenue

     614,635     583,677  
              

Total current liabilities

     1,185,503     1,074,411  

Deferred income taxes

     292,168     335,663  
              

Total liabilities

     1,477,671     1,410,074  
              

Shareholders’ equity:

    

Common stock, $.001 par value; 20,000,000 shares authorized; 6,737,741 shares issued and 6,710,399 shares outstanding at March 31, 2009; 6,738,261 shares issued and 6,713,919 shares outstanding at December 31, 2008

     6,738     6,738  

Paid-in capital

     2,019,583     2,020,206  

Retained earnings

     2,690,441     2,455,764  

Treasury stock at cost, 27,342 and 24,342 shares at March 31, 2009 and December 31, 2008, respectively

     (39,232 )   (35,935 )
              

Total shareholders’ equity

     4,677,530     4,446,773  
              

Total liabilities and shareholders’ equity

   $ 6,155,201     5,856,847  
              

 

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ADVANT-E CORPORATION AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)

 

     Three Months Ended
March 31,
 
     2009     2008  

Cash flows from operating activities:

    

Net income

   $ 234,677       264,910  

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

    

Depreciation

     62,767       63,399  

Amortization of software development costs

     20,445       20,446  

Amortization of other intangible assets

     21,178       21,178  

Deferred income taxes

     (45,039 )     (41,020 )

Purchases of trading securities

     (43,949 )     (80,477 )

Proceeds from sales of trading securities

     49,828       78,007  

Net unrealized losses on trading securities

     4,667       14,078  

Net realized (gains) losses on sales of securities

     18,401       (5,339 )

Increase (decrease) in cash arising from changes in assets and liabilities:

    

Accounts receivable

     (129,200 )     (131,363 )

Prepaid software maintenance costs

     (16,829 )     (25,911 )

Prepaid expenses and deposits

     (5,240 )     (51,733 )

Prepaid income taxes

     16,837       —    

Accounts payable

     1,802       324,567  

Accrued salaries and other expenses

     (37,891 )     52,035  

Income taxes payable

     116,223       60,336  

Deferred revenue

     30,958       157,274  
                

Net cash flows from operating activities

     299,635       720,387  
                

Cash flows from investing activities:

    

Purchases of property and equipment

     (7,390 )     (98,186 )
                

Cash flows from financing activities:

    

Purchase of treasury shares

     (3,920 )     —    
                

Net increase in cash and cash equivalents

     288,325       622,201  

Cash and cash equivalents, beginning of period

     2,090,005       2,039,447  
                

Cash and cash equivalents, end of period

   $ 2,378,330     $ 2,661,648  
                

Supplemental disclosures of cash flow items:

    

Income taxes paid

   $ 26,000     $ 138,100  

Non-cash transaction: retirement of 520 treasury shares

     623       —    

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.

 

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