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

Exhibit 99.1

LOGO

Company Press Release

Thursday March 11, 2010 8:00 a.m.

Advant-e Corporation Announces Financial Results for 2009

Company Reports Record Net Income in 2009

Net Income in 2009 Increased by 12% Despite 2% Decrease in Revenue Compared to Prior Year

Revenue in 2009 for Internet-based EDI Services Increased; Software Revenue Decreased

DAYTON, Ohio, Thursday March 11, 2010 — Advant-e Corporation (OTC Bulletin Board: ADVC), today announced financial and operating results for 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.

The Company reported revenue in 2009 of $8,649,199, a 2% decrease compared to revenue of $8,869,169 in 2008. The decrease is attributable to a significant decline in revenue from our Merkur Group subsidiary from $2,134,193 in 2008 to $1,505,974 in 2009. This decline was partially offset by the increase in revenue for Edict Systems from $6,734,976 in 2008 to $7,143,225 in 2009. Revenue for Edict Systems increased by $408,249, or 6%, while revenue from Merkur Group decreased by $628,219, or 29%.

The Company reported record net income for 2009 of $1,194,802, or $.018 per share, compared to $1,063,790, or $.016 per share, in 2008. Net income in 2009 increased 12% compared to 2008. Earnings per share for 2009 and 2008 reflect the increased number of outstanding shares that resulted from the ten for one stock split in the fourth quarter of 2009.

Highlights of 2009 financial and operating results include:

 

   

Edict Systems Revenue Increased for the Ninth Consecutive Year – Revenue for Edict Systems increased across all major product and service categories in 2009 compared to 2008 with the exception of AutomotiveEC, which declined due to the overall weakness in the automotive sector. Revenue from EnterpriseEC®, a hosted integration service, increased by 15%, from $1,175,178 in 2008 to $1,351,233 in 2009.

 

   

Net Income Exceeded $1 million for Third Consecutive Year – The Company in 2009 reported a net profit for the seventh consecutive year.

 

   

Merkur Group Net Income increased by 47% – Despite a significant decline in revenue for Merkur Group, net Income increased by 47% to $177,459 in 2009 from $121,048 in 2008. The increase was due to the Company’s efforts to control costs and operating expenses.

 

   

Special Cash Dividend – In 2009 the Company announced a special cash dividend of $0.03 per share totaling $2,001,678, to be paid in three installments of $.01 per share. The first installment was paid in December of 2009. Two additional installments of $.01 per share each are scheduled to be paid in June of 2010 and December of 2010.

 

   

Strong Cash Position at Year-end – Cash and cash equivalents of $2,713,996 provide a solid foundation for growth and meeting financial obligations in 2010 and beyond.

 

   

No Outstanding Bank or Other Long-Term Debt – The Company continues to maintain an unused $1.5 million bank line of credit.


Mr. Jason K. Wadzinski, Chairman and CEO of Advant-e stated, “2009 was another challenging year for Advant-e with a significant reduction in software revenue from Merkur Group. Customers in the automotive industry were hit very hard by the economic downturn, and accordingly, revenue from our automotive sector declined for the first year since we entered the industry in 2004. We were successful, however, in planning for the slow economy in 2009 as we reduced our selling, general and administrative expenses sufficiently to report a record net income.”

“I continue to be positive about our prospects going forward and our ability to produce acceptable financial results under the current adverse economic conditions. We continue to pursue new industries that would benefit from our services and have been making inroads into the health care market. Merkur Group is expanding product offerings and recently introduced an automated remittance advice solution for its PeopleSoft integration. Edict and Merkur personnel have been working together to combine product offerings into a certified SaaS EDI solution for the PeopleSoft market.”

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 BALANCE SHEETS

December 31, 2009 and 2008

 

     2009     2008  

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 2,713,996      2,090,005   

Short-term investments

     —        232,721   

Accounts receivable, net

     634,055      699,095   

Prepaid software maintenance costs

     162,507      156,027   

Prepaid expenses and deposits

     75,519      74,361   

Prepaid income taxes

     39,798      16,837   

Deferred income taxes

     139,144      152,156   
              

Total current assets

     3,765,019      3,421,202   

Software development costs, net

     149,956      112,453   

Property and equipment, net

     312,821      434,645   

Goodwill

     1,474,615      1,474,615   

Other intangible assets, net

     329,220      413,932   
              

Total assets

   $ 6,031,631      5,856,847   
              

Liabilities and Shareholders’ Equity

    

Current liabilities:

    

Accounts payable

   $ 115,546      207,374   

Dividends payable

     1,334,452      —     

Accrued salaries and other expenses

     146,699      283,360   

Deferred revenue

     582,298      583,677   
              

Total current liabilities

     2,178,995      1,074,411   

Deferred income taxes

     261,024      335,663   
              

Total liabilities

     2,440,019      1,410,074   
              

Shareholders’ equity:

    

Common stock, $.001 par value; 100,000,000 shares authorized, 66,951,010 shares issued, and 66,722,590 shares outstanding at December 31, 2009; 20,000,000 shares authorized, 6,738,261 shares issued and 6,713,919 shares outstanding at December 31, 2008

     66,951      6,738   

Paid-in capital

     1,964,221      2,020,206   

Retained earnings

     1,588,632      2,455,764   

Treasury stock, at cost, 228,420 shares at December 31, 2009 and 24,342 at December 31, 2008

     (28,192   (35,935
              

Total shareholders’ equity

     3,591,612      4,446,773   
              

Total liabilities and shareholders’ equity

   $ 6,031,631      5,856,847   
              


ADVANT-E CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

For the years ended December 31, 2009 and 2008

 

     2009    2008  

Revenue

   $ 8,649,199    8,869,169   

Cost of revenue

     3,561,780    3,476,670   
             

Gross margin

     5,087,419    5,392,499   

Marketing, general and administrative expenses

     3,294,187    3,705,542   
             

Operating income

     1,793,232    1,686,957   

Other income (expense), net

     5,007    (30,701
             

Income before income taxes

     1,798,239    1,656,256   

Income tax expense

     603,437    592,466   
             

Net income

   $ 1,194,802    1,063,790   
             

Earnings per share – basic and diluted

   $ 0.018    0.016   
             

Weighted average shares outstanding – basic and diluted

     66,869,669    67,857,940   
             


ADVANT-E CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the years ended December 31, 2009 and 2008

 

     2009     2008  

Cash flows from operating activities:

    

Net income

   $ 1,194,802        1,063,790   

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

    

Depreciation

     257,340        284,097   

Amortization of software development costs

     81,784        81,785   

Amortization of other intangible assets

     84,712        84,712   

Deferred income taxes

     (61,627     (65,294

Purchases of trading securities

     (99,922     (264,182

Proceeds from sale of trading securities

     327,193        258,457   

Net realized (gain) loss on sales of securities

     (34,546     952   

Net unrealized loss on trading securities

     39,996        64,203   

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

    

Accounts receivable

     65,040        106,146   

Prepaid software maintenance costs

     (6,480     27,591   

Prepaid expenses and deposits

     (1,158     (5,431

Prepaid income taxes

     (22,961     (16,837

Accounts payable

     (91,828     (4,364

Accrued salaries and other expenses

     (136,661     10,150   

Income taxes payable

     —          (136,947

Deferred revenue

     (1,379     (61,416
                

Net cash flows from operating activities

     1,594,305        1,427,412   
                

Cash flows from investing activities:

    

Purchases of property and equipment

     (135,516     (285,084

Software development costs

     (119,287     —     
                

Net cash flows from investing activities

     (254,803     (285,084
                

Cash flows from financing activities:

    

Purchase of treasury shares

     (48,285     (151,066

Dividends paid

     (667,226     (940,704
                

Net cash flows from financing activities

     (715,511     (1,091,770
                

Net increase in cash and cash equivalents

     623,991        50,558   

Cash and cash equivalents, beginning of year

     2,090,005        2,039,447   
                

Cash and cash equivalents, end of year

   $ 2,713,996      $ 2,090,005   
                

Supplemental disclosures of cash flow items:

    

Income taxes paid

   $ 688,024        810,279   

Non cash transactions:

    

Retirement of shares

   $ 56,028        190,131   

Dividends declared in 2009 and payable in 2010

   $ 1,334,452        —     

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.