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

 

Exhibit 99.1

LOGO

Thursday, November 11, 2010

Advant-e Corporation Announces Third Quarter 2010 Results

Company Reports Record Revenue and Net Income; Net Income Increase

of 37% and Revenue Increase of 10% over Third Quarter of 2009

DAYTON, Ohio, November 11, 2010 — Advant-e Corporation (OTC Bulletin Board: ADVC) today announced financial and operating results for the third 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 third quarter of 2010 the Company reported revenue of $2,380,510, a 10% increase, compared to revenue of $2,158,016 in the third quarter of 2009. Revenue from Edict Systems increased by $204,554, and revenue from Merkur Group increased by $17,940.

Net income for the third quarter of 2010 was $434,231, or $.006 per share, a 37% increase compared to net income of $316,678, or $.005 per share, for the same period in 2009.

Jason K. Wadzinski, Chairman of the Board and Chief Executive Officer, remarked, “We achieved record revenue and record net income in the third quarter of 2010 on the strength of double-digit revenue growth from our Internet-based EDI services in the grocery and automotive sectors. This quarter marks our 29th consecutive profitable quarter. Merkur Group contributed to our profitability despite operating in a difficult sales environment.”

“We are continuing to direct much of our energy to growth opportunities in the health care and manufacturing industries, where potential customers have shown interest in our service offerings,” continued Mr. Wadzinski. “At the same time, we expect continued growth in our core grocery and automotive markets.”

“I want to extend my thanks to all of our employees and business partners for their continuing efforts in helping us achieve this record-setting quarter.”

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
September 30,
    Nine Months Ended
June 30,
 
     2010     2009     2010     2009  

Revenue

   $ 2,380,510        2,158,016        6,918,147        6,514,265   

Cost of revenue

     913,522        858,522        2,769,072        2,688,352   
                                

Gross margin

     1,466,988        1,299,494        4,149,075        3,825,913   

Marketing, general and administrative expenses

     803,341        801,355        2,478,280        2,526,143   
                                

Operating income

     663,647        498,139        1,670,795        1,299,770   

Other income (expense), net

     (2,964     (3,376     (959     2,459   
                                

Income before income taxes

     660,683        494,763        1,669,836        1,302,229   

Income tax expense

     226,452        178,085        571,486        439,611   
                                

Net income

   $ 434,231        316,678        1,098,350        862,618   
                                

Earnings per share – basic and diluted

   $ .006        .005        .016        .013   
                                

Weighted average shares outstanding – basic and diluted

     66,722,590        66,746,560        66,722,590        66,919,220   
                                


 

ADVANT-E CORPORATION AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

 

     September 30,  2010
(Unaudited)
     December 31,
2009
 

Assets

     

Current Assets:

     

Cash and cash equivalents

   $ 3,353,328         2,713,996   

Accounts receivable, net

     746,909         634,055   

Prepaid software maintenance costs

     194,241         162,507   

Prepaid expenses and deposits

     56,178         75,519   

Prepaid income taxes

     —           39,798   

Deferred income taxes

     167,588         139,144   
                 

Total current assets

     4,518,244         3,765,019   

Software development costs, net

     267,937         149,956   

Property and equipment, net

     250,970         312,821   

Goodwill

     1,474,615         1,474,615   

Other intangible assets, net

     265,686         329,220   
                 

Total assets

   $ 6,777,452         6,031,631   
                 

Liabilities and Shareholders’ Equity

     

Current liabilities:

     

Accounts payable

   $ 103,845         115,546   

Dividend payable

     667,226         1,334,452   

Accrued salaries and other expenses

     322,612         146,699   

Income taxes payable

     35,901         —     

Deferred revenue

     707,691         582,298   
                 

Total current liabilities

     1,837,275         2,178,995   

Deferred income taxes

     250,215         261,024   
                 

Total liabilities

     2,087,490         2,440,019   
                 

Shareholders’ equity:

     

Common stock, $.001 par value; 100,000,000 shares authorized; 66,722,590 shares issued and outstanding at September 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

     2,686,982         1,588,632   

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

     —           (28,192
                 

Total shareholders’ equity

     4,689,962         3,591,612   
                 

Total liabilities and shareholders’ equity

   $ 6,777,452         6,031,631   
                 


 

ADVANT-E CORPORATION AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)

 

     Nine Months Ended
September 30,
 
     2010     2009  

Cash flows from operating activities:

    

Net income

   $ 1,098,350        862,618   

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

    

Depreciation

     158,995        190,127   

Amortization of software development costs

     30,669        61,338   

Amortization of other intangible assets

     63,534        63,534   

Loss on disposal of property and equipment

     4,688        —     

Deferred income taxes

     (39,253     (78,107

Purchases of trading securities

     —          (99,922

Proceeds from sales of trading securities

     —          327,193   

Net unrealized gain on trading securities

     —          (34,546

Net realized loss on sales of securities

     —          39,996   

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

    

Accounts receivable

     (112,854     (13,448

Prepaid software maintenance costs

     (31,734     (9,468

Prepaid expenses and deposits

     19,341        (19,308

Prepaid income taxes

     39,798        (21,295

Accounts payable

     (11,701     (63,356

Accrued salaries and other expenses

     175,913        16,868   

Income taxes payable

     35,901        —     

Deferred revenue

     125,393        6,637   
                

Net cash flows from operating activities

     1,557,040        1,228,861   
                

Cash flows from investing activities:

    

Purchases of property and equipment

     (101,832     (88,550

Software development costs

     (148,650     (60,705
                

Net cash flows from investing activities

     (250,482     (149,255
                

Cash flows from financing activities:

    

Purchase of treasury shares

     —          (48,273

Dividends paid

     (667,226     —     
                

Net cash flows from financing activities

     (667,226     (48,273
                

Net increase in cash and cash equivalents

     639,332        1,031,333   

Cash and cash equivalents, beginning of period

     2,713,996        2,090,005   
                

Cash and cash equivalents, end of period

   $ 3,353,328        3,121,338   
                

Supplemental disclosures of cash flow items:

    

Income taxes paid

   $ 535,000        539,013   

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.