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

Exhibit 99.1

         LOGO

Friday, August 6, 2010

Advant-e Corporation Announces Second Quarter 2010 Results

Company Reports Record Net Income for the Second Quarter of 2010; Revenue Growth of 6% over Q2 2009

DAYTON, Ohio, August 6, 2010 — Advant-e Corporation (OTC Bulletin Board: ADVC) today announced financial and operating results for the second quarter of 2010. 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 2010 the Company reported revenue of $2,343,816, a 6% increase compared to revenue of $2,200,958 in the second quarter of 2009. Revenue from Edict Systems increased by 8% and revenue from Merkur Group increased by 2%.

Net income for the second quarter of 2010 was $399,840, or $.006 per share, a 28% increase compared to net income of $311,263, or $.005 per share, for the same period in 2009.

Jason K. Wadzinski, Chairman of the Board and Chief Executive Officer, remarked, “I am pleased to announce that we reported a record quarterly net income, which is our 28th consecutive profitable quarter.”

“Both Edict Systems and Merkur Group performed well. Edict Systems showed year over year growth in the grocery and automotive industries and Merkur Group increased revenue by 54% over the first quarter of this year”, continued Mr. Wadzinski. “I remain cautiously optimistic about our performance for the remainder of 2010 because our pipeline of opportunities is strengthening and we will continue to focus on cost control.”

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,
     2010    2009    2010    2009

Revenue

   $ 2,343,816    2,200,958    4,537,637    4,356,250

Cost of revenue

     921,566    930,171    1,855,550    1,829,830
                     

Gross margin

     1,422,250    1,270,787    2,682,087    2,526,420

Marketing, general and administrative expenses

     815,838    837,504    1,674,941    1,724,789
                     

Operating income

     606,412    433,283    1,007,146    801,631

Other income, net

     1,205    25,484    2,004    5,834
                     

Income before income taxes

     607,617    458,767    1,009,150    807,465

Income tax expense

     207,777    147,504    345,034    261,526
                     

Net income

   $ 399,840    311,263    664,116    545,939
                     

Earnings per share – basic and diluted

   $ .006    .005    .010    .008
                     

Weighted average shares outstanding – basic and diluted

     66,722,590    66,890,260    66,722,590    67,006,980
                     


ADVANT-E CORPORATION AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

 

     June 30, 2010
(Unaudited)
   December 31, 2009  

Assets

     

Current Assets:

     

Cash and cash equivalents

   $ 2,959,670    2,713,996   

Accounts receivable, net

     795,345    634,055   

Prepaid software maintenance costs

     191,517    162,507   

Prepaid expenses and deposits

     47,165    75,519   

Prepaid income taxes

     —      39,798   

Deferred income taxes

     160,903    139,144   
             

Total current assets

     4,154,600    3,765,019   

Software development costs, net

     227,091    149,956   

Property and equipment, net

     271,132    312,821   

Goodwill

     1,474,615    1,474,615   

Other intangible assets, net

     286,864    329,220   
             

Total assets

   $ 6,414,302    6,031,631   
             

Liabilities and Shareholders’ Equity

     

Current liabilities:

     

Accounts payable

   $ 122,942    115,546   

Dividend payable

     667,226    1,334,452   

Accrued salaries and other expenses

     385,085    146,699   

Income taxes payable

     50,341    —     

Deferred revenue

     680,302    582,298   
             

Total current liabilities

     1,905,896    2,178,995   

Deferred income taxes

     252,678    261,024   
             

Total liabilities

     2,158,574    2,440,019   
             

Shareholders’ equity:

     

Common stock, $.001 par value; 100,000,000 shares authorized; 66,722,590 shares issued and outstanding at June 30, 2010; 66,951,010 shares issued and 66,722,590 shares outstanding at December 31, 2009

     66,723    66,951   

Paid-in capital

     1,936,257    1,964,221   

Retained earnings

     2,252,748    1,588,632   

Treasury stock at cost, 228,420 shares at December 31, 2009

     —      (28,192
             

Total shareholders’ equity

     4,255,728    3,591,612   
             

Total liabilities and shareholders’ equity

   $ 6,414,302    6,031,631   
             


ADVANT-E CORPORATION AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)

 

     Six Months Ended
June 30,
 
     2010     2009  

Cash flows from operating activities:

    

Net income

   $ 664,116      545,939   

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

    

Depreciation

     110,020      125,716   

Amortization of software development costs

     30,669      40,892   

Amortization of other intangible assets

     42,356      42,356   

Loss on disposal of property and equipment

     800      —     

Deferred income taxes

     (30,105   (74,778

Purchases of trading securities

     —        (87,591

Proceeds from sales of trading securities

     —        123,056   

Net unrealized gain on trading securities

     —        (24,158

Net realized loss on sales of securities

     —        24,082   

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

    

Accounts receivable

     (161,290   (111,470

Prepaid software maintenance costs

     (29,010   (20,210

Prepaid expenses and deposits

     28,354      15,258   

Prepaid income taxes

     39,798      (2,709

Accounts payable

     7,396      (49,749

Accrued salaries and other expenses

     238,386      64,163   

Income taxes payable

     50,341      —     

Deferred revenue

     98,004      30,153   
              

Net cash flows from operating activities

     1,089,835      640,950   
              

Cash flows from investing activities:

    

Purchases of property and equipment

     (69,131   (9,569

Software development costs

     (107,804   —     
              

Net cash flows from investing activities

     (176,935   (9,569
              

Cash flows from financing activities:

    

Purchase of treasury shares

     —        (42,190

Dividends paid

     (667,226   —     
              

Net cash flows from financing activities

     (667,226   (42,190
              

Net increase in cash and cash equivalents

     245,674      589,191   

Cash and cash equivalents, beginning of period

     2,713,996      2,090,005   
              

Cash and cash equivalents, end of period

   $ 2,959,670      2,679,196   
              

Supplemental disclosures of cash flow items:

    

Income taxes paid

   $ 285,000      339,013   

Non-cash transaction: retirement of shares

     28,192      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.