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Advant-e Corporation Announces Second Quarter 2004 Results
Company Reports 19% Increase in Revenue over Q2 2003; Net Income of $107,343
compared to Net Loss of $5,979 in 2003
DAYTON, Ohio, Aug. 5 /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 quarter ending June 30, 2004.
For the second quarter of 2004 the Company reported revenues of $851,982, a 19%
increase over revenues of $715,108 in the second quarter of 2003. The increase
in revenue was the result of continued growth and market acceptance of the
Company's internet-based electronic commerce subscription services.
Net income for the quarter was $107,343, or $.02 per share, compared to a net
loss of $5,979, or ($.00) per share for the same period in 2003.
Jason K. Wadzinski, President and CEO of Advant-e, stated, "I am pleased to
report that we have achieved our internal goal of 20% pre-tax profitability for
the third consecutive quarter. Our strong cash flow has enabled us to build
our cash balance to over $500,000 during the quarter, while at the same time
investing in our document processing infrastructure to support our future
anticipated growth. We have made significant progress over the last twelve
months in building a strong foundation to support our strategy of extending our
leadership in the grocery industry and targeting other vertical markets for our
Internet-based EDI solutions."
For the six months ending June 30, 2004 the Company reported revenues of
$1,690,617, a 24% increase over revenues of $1,364,486 in the same period in
2003. Net income for the period in 2004 was $221,584, or $.04 per share ($0.03
per share on diluted basis), compared to a net loss of $75,803, or ($.01) per
share in the 2003 period.
The Securities and Exchange Commission informed the Company that its
registration statement for 1,603,915 common shares became effective on July 23,
2004. The shares included 583,915 outstanding shares that were issued to
former holders of the Company's convertible subordinated notes and 1,020,000
shares to be issued upon the exercise of warrants held principally by former
note holders.
The outstanding warrants are for the issuance of 750,000 shares of common stock
at $1.205 per share, 250,000 shares at $1.25 per share, and 20,000 shares at
$1.48 per share. The warrants are exercisable as follows: 925,000 warrants
between September 27, 2005 and December 13, 2005, 20,000 through June 25, 2006,
and 75,000 through December 5, 2006.
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 "vortals" including http://www.groceryec.com/ ,
http://www.retailec.com/ , http://www.cpgsupplier.com/ ,
http://www.logisticsec.com/ , and http://www.mfgec.com/ .
In addition to Internet and web-based e-commerce solutions, Edict Systems also
provides e-commerce integration and bar coding applications via its
FORMULA_ONE(R) translation software and Bar Code Label Modules. 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 CONDENSED STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2004 2003 2004 2003
---- ---- ---- ----
Revenue $851,982 715,108 1,690,617 1,364,486
Cost of revenue 310,264 305,352 604,481 609,164
------- ------- --------- ---------
Gross margin 541,718 409,756 1,086,136 755,322
Marketing, general and
administrative expenses 361,375 358,707 713,972 732,818
------- ------- --------- ---------
Operating income 180,343 51,049 372,164 22,504
Interest - 53,076 2,180 106,362
------- ------ --------- ---------
Income (loss) before taxes 180,343 ( 2,027) 369,984 ( 83,858)
Income taxes (benefit) 73,000 3,952 148,400 ( 8,055)
------ ----- --------- --------
Net income (loss) $ 107,343 ( 5,979) 221,584 ( 75,803)
======= ===== ========= ========
Basic earnings (loss) per
common share $ 0.02 (0.00) 0.04 (0.01)
==== ==== ==== ====
Diluted earnings (loss) per
common share $ 0.02 (0.00) 0.03 (0.01)
==== ==== ==== ====
Weighted average common
shares outstanding 6,244,917 5,661,002 6,244,917 5,661,002
========= ========= ========= =========
Weighted average common shares
outstanding, assuming
dilution 6,722,654 5,661,002 6,627,694 5,661,002
========= ========= ========= =========
ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited)
June 30, December 31,
2004 2003
--------- -----------
Assets
Current Assets
Cash and cash equivalents $ 529,578 $ 216,448
Accounts receivable, net 244,428 215,895
Prepaid expenses and deposit 9,362 16,187
Deferred income taxes 157,000 266,400
--------- ---------
Total current assets 940,368 714,930
--------- ---------
Software development costs, net 401,909 481,678
Property and equipment, net 261,202 168,687
--------- ---------
Total assets $ 1,603,479 $ 1,365,295
========= =========
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable $ 104,975 $ 72,172
Accrued salaries and other expenses 88,226 71,867
Deferred revenue 122,279 90,931
Notes payable - 94,965
--------- ---------
Total current liabilities 315,480 329,935
--------- ---------
Long-term liabilities
Deferred income taxes 195,000 156,000
--------- ---------
Total liabilities 510,480 485,935
--------- ---------
Shareholders' equity
Common stock, $.001 par value; 20,000,000
shares authorized; 6,244,917 outstanding 6,245 6,245
Paid-in capital 1,483,482 1,491,427
Accumulated deficit (396,728) (618,312)
--------- ---------
Total shareholders' equity 1,092,999 879,360
--------- ---------
Total liabilities and
shareholders' equity $ 1,603,479 $ 1,365,295
========= =========
ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
Six Months Ended
June 30,
2004 2003
---- ----
Cash flows from operating activities
Net income (loss) $ 221,584 ( 75,803)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation 34,099 22,846
Amortization of software development costs 164,014 139,881
Deferred income taxes (benefit) 148,400 ( 8,055)
Amortization of note discount resulting
from valuation of warrants and beneficial
conversion features - 43,586
Increase (decrease) in cash arising from
changes in assets and liabilities:
Accounts receivable ( 28,533) ( 17,612)
Prepaid expenses 6,825 9,666
Accounts payable 32,803 ( 24,253)
Accrued salaries, interest and other expenses 16,359 66,545
Deferred revenue 31,348 ( 16,538)
------- -------
Net cash provided by operating activities 626,899 140,263
------- -------
Cash flows from investing activities
Purchases of equipment (126,614) ( 22,083)
Software development costs ( 84,245) ( 83,166)
------- -------
Net cash used in investing activities (210,859) (105,249)
------- -------
Cash flows from financing activities
Payments on bank notes ( 94,965) ( 6,867)
Payments of direct costs of securities offering ( 7,945) -
------- --------
Net cash used in financing activities (102,910) ( 6,867)
------- -------
Net increase in cash and cash equivalents 313,130 28,147
Cash and cash equivalents, beginning of period 216,448 98,740
------- --------
Cash and cash equivalents, end of period $ 529,578 126,887
======= ========
Supplemental disclosures of cash flow information
Interest paid $ 3,014 12,382
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.groceryec.com/
http://www.retailec.com/
http://www.cpgsupplier.com/
http://www.logisticsec.com/
http://www.mfgec.com/