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Advant-e Corporation Announces 2004 Financial Results, Record
Revenue and Earnings
Company Reports 22% Increase in Revenue, 118% Increase in Net Income over Prior
Year
DAYTON, Ohio, Feb. 15 /PRNewswire-FirstCall/ -- Advant-e Corporation
(OTC:AVEE) (BULLETIN BOARD: AVEE) , a provider of Internet-based
business-to-business electronic commerce services, today announced financial
and operating results for the year ending December 31, 2004.
For the period the Company reported revenues of $3,600,732 compared to
$2,942,992 for the fiscal year ended 2003. The 22% increase in revenue is
attributed to the continued expansion and market acceptance of the Company's
Internet-based electronic commerce subscription services. Net income for 2004
was $469,323 or $.08 per share ($.07 per share fully diluted) compared to
$215,175, or $.04 per share in 2003.
For the fourth quarter of 2004 the Company reported revenue of $990,077 and net
income of $127,111, or $.02 per share ($.01 per share fully diluted), compared
to revenue of $818,641 and net income of $182,836, or $.03 per share, in the
fourth quarter of 2003. The reduction in net income for the quarter is
attributable to an income tax benefit in the fourth quarter of 2003 of $10,184,
compared to an income tax expense of $97,000 for the fourth quarter of 2004.
Income before taxes in the fourth quarter of 2004 increased by 30% over the
same period in 2003.
Commenting on the year-end results, Mr. Wadzinski, CEO of Advant-e stated,
"2004 was another great year for us. We exceeded our goal of 20% pretax
profitability and significantly improved our overall financial condition. While
software revenue continued its expected decline, our internet-based revenue
continued its growth by increasing 27% in 2004 and accounted for 97% of
revenue. Our strategy of expanding the use of our solutions to markets outside
of the grocery industry has shown early success with our recent win in the
automotive manufacturing sector. I would like to thank the dedicated team at
Edict Systems for their outstanding effort and delivering a record year."
About Advant-e Corporation
Advant-e, via its wholly owned and sole operating subsidiary Edict Systems,
Inc., is a provider of Business-to-Business electronic commerce software and
Internet-based applications specializing in Electronic Data Interchange (EDI)
and XML-based solutions for recurring transactions. Advant-e specializes in
horizontal transaction services via EnterpriseEC(R), an Internet-based
Electronic Business Transaction Network, and within specific vertical
industries via web-based solutions including http://www.groceryec.com/ ,
http://www.retailec.com/ , http://www.cpgsupplier.com/ , http://www.mfgec.com/
, and http://www.webedi.com/ . Additional information about Advant-e
Corporation can be found at http://www.advant-e.com/ and
http://www.edictsystems.com/ or by contacting investor relations at (937)
429-4288. The company's email is .
ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
Year Ended
December 31,
2004 2003
Revenue $ 3,600,732 2,942,992
Cost of revenue 1,239,179 1,146,680
Gross Margin 2,361,553 1,796,312
Marketing, general and administrative
expenses 1,562,621 1,383,489
Operating income 798,932 412,823
Interest 2,209 188,402
Income before taxes 796,723 224,421
Income taxes 327,400 9,246
Net income $ 469,323 215,175
Basic earnings per common share $ 0.08 0.04
Diluted earnings per common share $ 0.07 0.04
Weighted average common shares outstanding 6,244,917 5,702,751
Weighted average common shares outstanding,
assuming dilution 6,587,285 5,794,365
ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
Three Months Ended
December 31,
2004 2003
Revenue $ 990,077 818,641
Cost of revenue 325,474 269,174
Gross margin 664,603 549,467
Marketing, general and administrative
expenses 440,492 327,778
Operating income 224,111 221,689
Interest -- 49,037
Income before taxes 224,111 172,652
Income taxes (benefit) 97,000 (10,184)
Net income $ 127,111 182,836
Basic earnings per common share $ 0.02 0.03
Diluted earnings per common share $ 0.01 0.03
Weighted average common shares outstanding 6,244,917 5,826,635
Weighted average common shares outstanding,
assuming dilution 6,461,143 6,022,358
ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
December 31,
2004 2003
Assets
Current Assets
Cash and cash equivalents $ 944,892 216,448
Accounts receivable, net 290,394 215,895
Prepaid expenses and deposit 26,420 16,187
Deferred income taxes -- 266,400
Total current assets 1,261,706 714,930
Software development costs, net 298,809 481,678
Property and equipment, net 271,604 168,687
Total assets $ 1,832,119 $ 1,365,295
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable $ 39,681 72,172
Accrued salaries and other expenses 99,810 71,867
Income taxes payable 26,000 --
Deferred revenue 142,788 90,931
Notes payable -- 94,965
Total current liabilities 308,279 329,935
Long-term liabilities
Deferred income taxes 191,000 156,000
Total liabilities 499,279 485,935
Shareholders' equity
Common stock, $.001 par value;
20,000,000 shares authorized;
6,244,917 outstanding 6,245 6,245
Paid-in capital 1,475,584 1,491,427
Accumulated deficit (148,989) (618,312)
Total shareholders' equity 1,332,840 879,360
Total liabilities and
shareholders' equity $ 1,832,119 1,365,295
ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMETS OF CASH FLOWS
Year Ended
December 31,
2004 2003
Cash flows from operating activities
Net income $469,323 215,175
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 80,637 51,517
Amortization of software
development costs 332,430 290,852
Deferred income taxes 301,400 9,246
Amortization of note discount
resulting from valuation of
warrants and beneficial
conversion features -- 70,129
Increase (decrease) in cash arising
from changes in assets and liabilities:
Accounts receivable (74,499) (58,240)
Prepaid expenses (10,233) 37,213
Accounts payable (32,491) (86,148)
Income taxes payable 26,000 --
Accrued salaries, interest
and other expenses 28,776 21,433
Accrued interest (833) (94,151)
Deferred revenue 51,857 (2,962)
Net cash provided by operating activities 1,172,367 454,064
Cash flows from investing activities
Purchases of equipment (183,554) (48,615)
Software development costs (149,561) (137,574)
Net cash used in investing activities (333,115) (186,189)
Cash flows from financing activities
Payments on notes (94,965) (138,929)
Payments of direct costs of
securities registration (15,843) (11,238)
Net cash used in financing activities (110,808) (150,167)
Net increase in cash and cash equivalents 728,444 117,708
Cash and cash equivalents,
beginning of period 216,448 98,740
Cash and cash equivalents, end of period $944,892 216,448
Supplemental disclosures of
cash flow information
Interest paid $3,043 212,424
Non-cash transactions
Conversion to common stock of
convertible subordinated notes
and related accrued interest -- 628,040
Fair value of warrants issued
with convertible subordinated notes -- 24,750
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 or 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.
DATASOURCE: Advant-e Corporation
CONTACT: Investor Relations of Advant-e Corporation , +1-937-429-4288,
or
Web site: http://www.advant-e.com/
http://www.edictsystems.com/
http://www.groceryec.com/
http://www.retailec.com/
http://www.cpgsupplier.com/
http://www.mfgec.com/
http://www.webedi.com/