Exhibit 99.1
Thursday, March 22, 2012
Advant-e Corporation Announces Financial
Results for 2011
Company Reports Record Revenue and Net Income; Revenue increased 3%
and Net income increased 8% compared to 2010
Beavercreek, Ohio, March 22, 2012 — Advant-e Corporation (OTCBB: ADVC) today announced financial and operating results for the year ending December 31, 2011. 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.
The Company reported revenue in 2011 of $9,588,535 compared to revenue of $9,302,611 in 2010, and reported net income for 2011 of $1,711,380, or $.026 per share, compared to $1,585,339, or $.024 per share, in 2010.
Consolidated revenue set a record, and increased by 3% over 2010. Revenue for Edict Systems, which grew for the eleventh consecutive year, increased by 6% primarily from growth in Web EDI services in Grocery/Retail and Automotive, and in EnterpriseEC. Revenue from Merkur Group decreased by 12% as Merkur continues to face challenges in their targeted markets.
Consolidated net income set a record and increased by 8% over 2010. 2011 was the ninth consecutive year that the Company has reported a net profit. Net income from Edict Systems increased by 13%, and Merkur Group contributed net income of $170,392.
Mr. Jason K. Wadzinski, Chairman and CEO of Advant-e stated, “We had a successful 2011 as we reported record revenue and record net income. We paid a $.02 per share special cash dividend and ended the year with a strong cash position with no outstanding bank or other long-term debt. We substantially exceeded our goal of 20% pre-tax profitability by achieving 27%. The Company moved to a new facility which provides additional space and infrastructure improvements. Edict Systems continued to convert Web EDI customers to our new platform, for which we have received favorable customer feedback.”
“Our goal for 2012 is to increase top-line revenue growth while maintaining acceptable profitability,” continued Mr. Wadzinski. “We will continue our efforts to grow in the industries in which we have a presence as well as focus on new opportunities.”
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 BALANCE SHEETS
December 31, 2011 and 2010
| 2011 | 2010 | |||||||
| Assets |
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| Current assets: |
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| Cash and cash equivalents |
$ | 3,459,402 | 2,963,172 | |||||
| Accounts receivable, net |
784,239 | 743,020 | ||||||
| Prepaid software maintenance costs |
190,429 | 174,013 | ||||||
| Prepaid expenses and deposits |
107,871 | 99,234 | ||||||
| Prepaid income taxes |
1,910 | — | ||||||
| Deferred income taxes |
207,336 | 153,643 | ||||||
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| Total current assets |
4,751,187 | 4,133,082 | ||||||
| Software development costs, net |
262,102 | 308,832 | ||||||
| Property and equipment, net |
171,199 | 228,121 | ||||||
| Goodwill |
1,474,615 | 1,474,615 | ||||||
| Other intangible assets, net |
159,796 | 244,508 | ||||||
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| Total assets |
$ | 6,818,899 | 6,389,158 | |||||
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| Liabilities and Shareholders’ Equity |
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| Current liabilities: |
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| Accounts payable |
$ | 112,402 | 79,986 | |||||
| Income taxes payable |
— | 33,619 | ||||||
| Accrued salaries and other expenses |
205,334 | 180,311 | ||||||
| Deferred revenue |
748,828 | 673,810 | ||||||
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| Total current liabilities |
1,066,564 | 967,726 | ||||||
| Deferred income taxes |
198,456 | 244,481 | ||||||
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| Total liabilities |
1,265,020 | 1,212,207 | ||||||
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| Shareholders’ equity: |
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| Common stock, $.001 par value; 100,000,000 shares authorized; 66,722,590 shares issued and outstanding |
66,723 | 66,723 | ||||||
| Paid-in capital |
1,936,257 | 1,936,257 | ||||||
| Retained earnings |
3,550,899 | 3,173,971 | ||||||
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| Total shareholders’ equity |
5,553,879 | 5,176,951 | ||||||
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| Total liabilities and shareholders’ equity |
$ | 6,818,899 | 6,389,158 | |||||
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ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
For the years ended December 31, 2011 and 2010
| 2011 | 2010 | |||||||
| Revenue |
$ | 9,588,535 | 9,302,611 | |||||
| Cost of revenue |
3,778,885 | 3,660,685 | ||||||
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| Gross margin |
5,809,650 | 5,641,926 | ||||||
| Marketing, general and administrative expenses |
3,216,048 | 3,237,337 | ||||||
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| Operating income |
2,593,602 | 2,404,589 | ||||||
| Other income, net |
2,530 | 1,582 | ||||||
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| Income before income taxes |
2,596,132 | 2,406,171 | ||||||
| Income tax expense |
884,752 | 820,832 | ||||||
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| Net income |
$ | 1,711,380 | 1,585,339 | |||||
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| Earnings per share – basic and diluted |
$ | 0.026 | 0.024 | |||||
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| Weighted average shares outstanding – basic and diluted |
66,722,590 | 66,722,590 | ||||||
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ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
For the years ended December 31, 2011 and 2010
| Common Stock | Paid-in Capital |
Retained Earnings |
Treasury Stock |
Total | ||||||||||||||||
| Balance January 1, 2010 |
$ | 66,951 | 1,964,221 | 1,588,632 | (28,192 | ) | 3,591,612 | |||||||||||||
| Net income |
1,585,339 | 1,585,339 | ||||||||||||||||||
| Retirement of shares |
(228 | ) | (27,964 | ) | 28,192 | — | ||||||||||||||
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| Balance December 31, 2010 |
66,723 | 1,936,257 | 3,173,971 | — | 5,176,951 | |||||||||||||||
| Net income |
1,711,380 | 1,711,380 | ||||||||||||||||||
| Dividends ($0.02 per share) |
(1,334,452 | ) | (1,334,452 | ) | ||||||||||||||||
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| Balance December 31, 2011 |
$ | 66,723 | 1,936,257 | 3,550,899 | — | 5,553,879 | ||||||||||||||
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ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the years ended December 31, 2011and 2010
| 2011 | 2010 | |||||||
| Cash flows from operating activities: |
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| Net income |
$ | 1,711,380 | 1,585,339 | |||||
| Adjustments to reconcile net income to net cash flows from operating activities: |
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| Depreciation |
146,036 | 203,552 | ||||||
| Amortization of software development costs |
87,366 | 30,669 | ||||||
| Amortization of other intangible assets |
84,712 | 84,712 | ||||||
| Loss on disposal of assets |
1,003 | 4,688 | ||||||
| Deferred income taxes |
(99,718 | ) | (31,042 | ) | ||||
| Increase (decrease) in cash arising from changes in assets and liabilities: |
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| Accounts receivable |
(41,219 | ) | (108,965 | ) | ||||
| Prepaid software maintenance costs |
(16,416 | ) | (11,506 | ) | ||||
| Prepaid expenses and deposits |
(8,637 | ) | (23,715 | ) | ||||
| Prepaid income taxes |
(1,910 | ) | 39,798 | |||||
| Accounts payable |
32,416 | (35,560 | ) | |||||
| Income taxes payable |
(33,619 | ) | 33,619 | |||||
| Accrued salaries and other expenses |
25,023 | 33,612 | ||||||
| Deferred revenue |
75,018 | 91,512 | ||||||
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| Net cash flows from operating activities |
1,961,435 | 1,896,713 | ||||||
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| Cash flows from investing activities: |
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| Purchases of property and equipment |
(90,117 | ) | (123,540 | ) | ||||
| Software development costs |
(40,636 | ) | (189,545 | ) | ||||
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| Net cash flows from investing activities |
(130,753 | ) | (313,085 | ) | ||||
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| Cash flows from financing activities: |
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| Dividends paid |
(1,334,452 | ) | (1,334,452 | ) | ||||
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| Net increase in cash and cash equivalents |
496,230 | 249,176 | ||||||
| Cash and cash equivalents, beginning of year |
2,963,172 | 2,713,996 | ||||||
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| Cash and cash equivalents, end of year |
$ | 3,459,402 | 2,963,172 | |||||
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| Supplemental disclosures of cash flow items: |
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| Income taxes paid |
$ | 1,020,000 | 778,417 | |||||
| Non cash transactions: |
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| Retirement of shares |
$ | — | 28,192 | |||||
| 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. |