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

Exhibit 99.1

Thursday, August 13, 2009

Advant-e Corporation Announces Second Quarter

2009 Results

Company Reports Net Income Increased by 11% over Second Quarter of

2008 Despite 4% Revenue Decline

DAYTON, Ohio, August 13, 2009 — Advant-e Corporation (OTC Bulletin Board: AVEE) today announced financial and operating results for the second 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 second quarter of 2009 the Company reported revenue of $2,200,958, a 4% decrease compared to revenue of $2,300,267 in the second quarter of 2008. Revenue from Edict Systems increased by $65,555, but revenue from Merkur Group fell by $164,864.

Net income for the second quarter of 2009 was $311,263, or $.05 per share, an 11% increase compared to net income of $279,625, or $.04 per share, for the same period in 2008.

Jason K. Wadzinski, Chairman of the Board and Chief Executive Officer, remarked, “Given the economic realities during the quarter, I am pleased that we were able to increase net income despite the drop in software-related revenue. While Merkur’s revenue is down over last year, Merkur has contributed significantly to our increased net income in the quarter.”

“Our focus for the remainder of 2009 will be to continue our push into additional industries and increase our investment in upgrades and enhancements, primarily in our Web EDI offerings and integration solutions.”

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 advant-e@edictsystems.com.


ADVANT-E CORPORATION AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)

 

     Three Months Ended
June 30,
   Six Months Ended
June 30,
     2009    2008    2009    2008

Revenue

   $ 2,200,958    2,300,267    4,356,250    4,645,501

Cost of revenue

     930,171    902,780    1,829,830    1,823,626
                     

Gross margin

     1,270,787    1,397,487    2,526,420    2,821,875

Marketing, general and administrative expenses

     837,504    979,392    1,724,789    1,985,394
                     

Operating income

     433,283    418,095    801,631    836,481

Other income (expense), net

     25,484    18,407    5,834    23,611
                     

Income before income taxes

     458,767    436,502    807,465    860,092

Income tax expense

     147,504    156,877    261,526    315,557
                     

Net income

   $ 311,263    279,625    545,939    544,535
                     

Earnings per share - basic and diluted

   $ .05    .04    .08    .08
                     

Weighted average shares outstanding - basic and diluted

     6,689,026    6,815,015    6,700,698    6,815,015
                     


ADVANT-E CORPORATION AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

 

     June 30, 2009
(Unaudited)
    December 31,
2008
 

Assets

    

Current Assets:

    

Cash and cash equivalents

   $ 2,679,196      2,090,005   

Short-term investments

     197,332      232,721   

Accounts receivable, net

     810,565      699,095   

Prepaid software maintenance costs

     176,237      156,027   

Prepaid expenses and deposits

     59,103      74,361   

Prepaid income taxes

     19,546      16,837   

Deferred income taxes

     143,559      152,156   
              

Total current assets

     4,085,538      3,421,202   

Software development costs, net

     71,561      112,453   

Property and equipment, net

     318,498      434,645   

Goodwill

     1,474,615      1,474,615   

Other intangible assets, net

     371,576      413,932   
              

Total assets

   $ 6,321,788      5,856,847   
              

Liabilities and Shareholders’ Equity

    

Current liabilities:

    

Accounts payable

   $ 157,625      207,374   

Accrued salaries and other expenses

     347,523      283,360   

Deferred revenue

     613,830      583,677   
              

Total current liabilities

     1,118,978      1,074,411   

Deferred income taxes

     252,288      335,663   
              

Total liabilities

     1,371,266      1,410,074   
              

Shareholders’ equity:

    

Common stock, $.001 par value; 20,000,000 shares authorized; 6,737,741 shares issued and 6,677,799 outstanding at June 30, 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

     3,001,703      2,455,764   

Treasury stock at cost, 60,842 and 24,342 shares at June 30, 2009 and December 31, 2008, respectively

     (77,502   (35,935
              

Total shareholders’ equity

     4,950,522      4,446,773   
              

Total liabilities and shareholders’ equity

   $ 6,321,788      5,856,847   
              


ADVANT-E CORPORATION AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)

 

     Six Months Ended
June 30,
 
     2009     2008  

Cash flows from operating activities:

    

Net income

   $ 545,939      544,535   

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

    

Depreciation

     125,716      133,158   

Amortization of software development costs

     40,892      40,892   

Amortization of other intangible assets

     42,356      42,356   

Deferred income taxes

     (74,778   (80,120

Purchases of trading securities

     (87,591   (146,993

Proceeds from sales of trading securities

     123,056      162,965   

Net unrealized (gains) losses on trading securities

     (24,158   13,016   

Net realized (gains) losses on sales of securities

     24,082      (10,564

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

    

Accounts receivable

     (111,470   (175,200

Prepaid software maintenance costs

     (20,210   (28,470

Prepaid expenses and deposits

     15,258      24,225   

Prepaid income taxes

     (2,709   —     

Accounts payable

     (49,749   109,659   

Accrued salaries and other expenses

     64,163      21,142   

Income taxes payable

     —        (123,687

Deferred revenue

     30,153      90,137   
              

Net cash flows from operating activities

     640,950      617,051   
              

Cash flows from investing activities:

    

Purchases of property and equipment

     (9,569   (120,258
              

Cash flows from financing activities:

    

Purchase of treasury shares

     (42,190   —     
              

Net increase in cash and cash equivalents

     589,191      496,793   

Cash and cash equivalents, beginning of period

     2,090,005      2,039,447   
              

Cash and cash equivalents, end of period

   $ 2,679,196      2,536,240   
              

Supplemental disclosures of cash flow items:

    

Income taxes paid

   $ 339,013      518,100   

Non-cash transaction

    

Retirement of 520 and 60,000 treasury shares during the six months ended June 30, 2009 and 2008, respectively

     623      75,000   

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.