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Advant-e Corporation Announces Financial Results for 2012

March 26, 2013

Company Reports Record Revenue and Net Income; Revenue Increased 5% and Net Income Increased 17% Compared to 2011

BEAVERCREEK, Ohio, March 26, 2013 /PRNewswire/ — Advant-e Corporation (OTCQB: ADVC) today announced financial and operating results for the year ending December 31, 2012. 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 2012 of $10,106,048 compared to revenue of $9,588,535 in 2011, and reported net income for 2012 of $2,000,842, or $.030 per share, compared to $1,711,380, or $.026 per share, in 2011.

Consolidated revenue set a record, and increased by 5% over 2011. Revenue for Edict Systems, which grew for the twelfth 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 1% as Merkur continues to confront challenges in its targeted markets.

Consolidated net income set a record and increased by 17% over 2011. 2012 was the tenth consecutive year that the Company has reported a net profit. Net income increased from Edict Systems by 14% and from Merkur Group by 29%.

Mr. Jason K. Wadzinski, Chairman and CEO of Advant-e stated, “2012 was a good year for Advant-e Corporation. Although Merkur Group did not show revenue growth, Merkur did increase its contribution to net income. Edict continued to grow in its targeted markets, and contributed significantly to our profitability.”

“Our previously stated goal has been to achieve a minimum 20% pre-tax income. In 2012 and 2011 we reported pre-tax income of 30% and 27%. In 2013 we will be investing significantly in our infrastructure and our services. We expect to reach our 20% goal in 2013, but not to exceed it by as much as we did in the prior two years.”

“In a press release dated December 13, 2012, we stated that we are committed to the previously announced voluntary suspension of our public reporting obligations,” continued Mr. Wadzinski. “Since that time there have been no changes in the determining factors that this action would be in the best interests of the Company and our shareholders.”

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, 2012 and 2011

                                                                                                                                                      2012       2011
                                                                                                                                                      ----       ----

    Assets

    Current assets:

    Cash and cash equivalents                                                                                                                   $2,709,857  3,459,402

    Accounts receivable, net                                                                                                                       890,704    784,239

    Prepaid software maintenance costs                                                                                                             228,500    190,429

    Prepaid expenses and deposits                                                                                                                   80,283    107,871

    Prepaid income taxes                                                                                                                            13,826      1,910

    Deferred income taxes                                                                                                                          235,954    207,336
                                                                                                                                                   -------    -------

    Total current assets                                                                                                                         4,159,124  4,751,187

    Software development costs, net                                                                                                                145,611    262,102

    Property and equipment, net                                                                                                                    310,026    171,199

    Goodwill                                                                                                                                     1,474,615  1,474,615

    Other intangible assets, net                                                                                                                    88,082    159,796
                                                                                                                                                    ------    -------

    Total assets                                                                                                                                $6,177,458  6,818,899
                                                                                                                                                ==========  =========

    Liabilities and Shareholders' Equity

    Current liabilities:

    Accounts payable                                                                                                                              $298,952    112,402

    Accrued salaries and other expenses                                                                                                            168,556    205,334

    Deferred revenue                                                                                                                               892,482    748,828
                                                                                                                                                   -------    -------

    Total current liabilities                                                                                                                    1,359,990  1,066,564
                                                                                                                                                            ---------

    Deferred income taxes                                                                                                                          181,800    198,456
                                                                                                                                                   -------    -------

    Total liabilities                                                                                                                            1,541,790  1,265,020
                                                                                                                                                 ---------  ---------

    Shareholders' equity:

    Common stock, $.001 par value; 100,000,000 shares authorized; 66,722,590 shares issued;                                                         66,723     66,723
                  60,073,640 shares outstanding at December 31, 2012 and 66,722,590 shares outstanding at
                   December 31, 2011

    Paid-in capital                                                                                                                              1,936,257  1,936,257

    Retained earnings                                                                                                                            4,316,336  3,550,899

    Treasury shares, at cost, 6,648,950 shares at December 31, 2012                                                                             (1,683,648)         -
                                                                                                                                                ----------        ---

    Total shareholders' equity                                                                                                                   4,635,668  5,553,879
                                                                                                                                                 ---------  ---------

    Total liabilities and shareholders' equity                                                                                                  $6,177,458  6,818,899
                                                                                                                                                ==========  =========

                        ADVANT-E CORPORATION AND SUBSIDIARIES
                          CONSOLIDATED STATEMENTS OF INCOME
                    For the years ended December 31, 2012 and 2011

                                                           2012          2011
                                                           ----          ----

    Revenue                                         $10,106,048     9,588,535

    Cost of
     revenue                                          3,960,341     3,778,885
                                                      ---------     ---------

    Gross
     margin                                           6,145,707     5,809,650

    Marketing,
     general
     and
     administrative
     expenses                                         3,114,288     3,216,048
                                                      ---------     ---------

    Operating
     income                                           3,031,419     2,593,602

    Other
     income,
     net                                                  2,233         2,530
                                                          -----         -----

    Income
     before
     income
     taxes                                            3,033,652     2,596,132

    Income tax
     expense                                          1,032,810       884,752
                                                      ---------       -------

    Net income                                       $2,000,842     1,711,380
                                                     ==========     =========

    Earnings
     per share
     - basic
     and
     diluted                                             $0.030         0.026
                                                         ======         =====

    Weighted
     average
     shares
     outstanding
     - basic
     and
     diluted                                         66,287,278    66,722,590
                                                     ==========    ==========
                                                                                          ADVANT-E CORPORATION AND SUBSIDIARIES
                                                                                          CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                                     For the years ended December 31, 2012 and 2011

                                                                                                                                           2012         2011
                                                                                                                                           ----         ----

    Cash flows from operating activities:

    Net income                                                                                                                       $2,000,842    1,711,380

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

    Depreciation                                                                                                                        114,618      146,036

    Amortization of software development costs                                                                                          116,491       87,366

    Amortization of other intangible assets                                                                                              71,714       84,712

    Loss on disposal of assets                                                                                                              195        1,003

    Deferred income taxes                                                                                                              (45,274 )    (99,718 )

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

    Accounts receivable                                                                                                               (106,465 )     (41,219)

    Prepaid software maintenance costs                                                                                                 (38,071 )    (16,416 )

    Prepaid expenses and deposits                                                                                                        27,588      (8,637 )

    Prepaid income taxes                                                                                                                (11,916)      (1,910)

    Accounts payable                                                                                                                     45,979       32,416

    Income taxes payable                                                                                                                      -      (33,619)

    Accrued salaries and other expenses                                                                                                 (36,778)      25,023

    Deferred revenue                                                                                                                    143,654       75,018
                                                                                                                                        -------       ------

    Net cash flows from operating activities                                                                                          2,282,577    1,961,435
                                                                                                                                      ---------    ---------

    Cash flows from investing activities:

    Purchases of property and equipment                                                                                               (113,069 )    (90,117 )

    Software development costs                                                                                                                -     (40,636 )
                                                                                                                                            ---     --------

    Net cash flows from investing activities                                                                                          (113,069 )   (130,753 )
                                                                                                                                      ---------    ---------

    Cash flows from financing activities:

    Purchase of treasury shares                                                                                                      (1,683,648)           -

    Dividends paid                                                                                                                  (1,235,405 ) (1,334,452 )
                                                                                                                                    -----------  -----------

    Net cash flows from financing activities                                                                                        (2,919,053 ) (1,334,452 )
                                                                                                                                    -----------  -----------

    Net increase (decrease) in cash and cash equivalents                                                                               (749,545)     496,230

    Cash and cash equivalents, beginning of year                                                                                      3,459,402    2,963,172
                                                                                                                                      ---------    ---------

    Cash and cash equivalents, end of year                                                                                           $2,709,857    3,459,402
                                                                                                                                     ==========    =========

    Supplemental disclosures of cash flow items:

    Income taxes paid                                                                                                                $1,090,000    1,020,000

    Non-cash item: Purchases of property and equipment on account                                                                      $140,571            -

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.

SOURCE Advant-e Corporation


Source: PR Newswire