Advant-e Corporation Announces First Quarter 2012 Results Quarterly Revenue Increased by 7% and Net Income Increased by 1% Compared to the First Quarter of 2011 PR Newswire DAYTON, Ohio, May 14, 2012 DAYTON, Ohio, May 14, 2012 /PRNewswire/ --Advant-e Corporation (OTC Bulletin Board: ADVC) today announced financial and operating results for the first quarter of 2012. The Company provides Internet-based Electronic Data Interchange services through Edict Systems and sells electronic document management software and services through Merkur Group. Revenue in the first quarter of 2012 of $2,465,438 increased by 7% over revenue of $2,300,420 in the first quarter of 2011. Revenue from Edict Systems increased by 8% and revenue from Merkur Group was approximately the same, compared to the first quarter in 2011. Net income in the first quarter of 2012 was $387,207, or $.006 per share, compared to net income of $385,087, or $.006 per share, in the same period in 2011. Net income for Edict Systems decreased 2% while net income for Merkur Group increased by 20%. Jason K. Wadzinski, Chairman of the Board and Chief Executive Officer, stated, "We again exceeded our 20% pre-tax profitability goal this quarter, although the higher cost of our new headquarters had an impact on net income. Pre-tax profitability was 24% and our cash position remains strong." "We continued rolling out our updated Web EDI service to existing customers this quarter and plan on accelerating conversions over the remainder of this year," continued Mr. Wadzinski. "This new platform will enable us to offer additional services to our customers as well as attract new customers who want to utilize their EDI data in analyzing their business activities and optimizing performance." 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 firstname.lastname@example.org. ADVANT-E CORPORATION AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited) Three Months Ended March 31, 2012 2011 Revenue $ 2,465,438 2,300,420 Cost of revenue 1,023,737 917,892 Gross margin 1,441,701 1,382,528 Marketing, general and administrative expenses 854,972 799,457 Operating income 586,729 583,071 Other income, net 810 1,127 Income before income taxes 587,539 584,198 Income tax expense 200,332 199,111 Net income $ 387,207 385,087 Earnings per share – basic and diluted $ 0.006 0.006 Weighted average shares outstanding – basic and diluted 66,722,590 66,722,590 ADVANT-E CORPORATION AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS March 31, 2012 December 31, 2011 (Unaudited) Assets Current Assets: Cash and cash equivalents $ 4,230,826 3,459,402 Accounts receivable, net 828,102 784,239 Prepaid software maintenance costs 209,462 190,429 Prepaid expenses and deposits 104,094 107,871 Prepaid income taxes — 1,910 Deferred income taxes 222,265 207,336 Total current assets 5,594,749 4,751,187 Software development costs, net 232,979 262,102 Property and equipment, net 155,498 171,199 Goodwill 1,474,615 1,474,615 Other intangible assets, net 138,618 159,796 Total assets $ 7,596,459 6,818,899 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 121,135 112,402 Income taxes payable 224,959 — Accrued salaries and other expenses 294,250 205,334 Deferred revenue 838,181 748,828 Total current liabilities 1,478,525 1,066,564 Deferred income taxes 176,848 198,456 Total liabilities 1,655,373 1,265,020 Shareholders' equity: Common stock, $.001 par value; 100,000,000 shares authorized; 66,722,590 66,723 66,723 shares issued and outstanding Paid-in capital 1,936,257 1,936,257 Retained earnings 3,938,106 3,550,899 Total shareholders' equity 5,941,086 5,553,879 Total liabilities and shareholders' equity $ 7,596,459 6,818,899 ADVANT-E CORPORATION AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) Three Months Ended March 31, 2012 2011 Cash flows from operating activities: Net income $ 387,207 385,087 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation 27,274 42,078 Amortization of software development costs 29,123 — Amortization of other intangible assets 21,178 21,178 Deferred income taxes (36,537) (20,386) Increase (decrease) in cash and cash equivalents arising from changes in assets and liabilities: Accounts receivable (43,863) (46,006) Prepaid software maintenance costs (19,033) (27,727) Prepaid expenses and deposits 3,777 8,700 Prepaid income taxes 1,910 — Accounts payable 8,733 55,650 Income taxes payable 224,959 169,497 Accrued salaries and other expenses 88,916 93,332 Deferred revenue 89,353 59,895 Net cash flows from operating activities 782,997 741,298 Cash flows from investing activities: Purchases of property and equipment (11,573) (6,236) Software development costs — (40,636) Net cash flows from investing activities (11,573) (46,872) Net increase in cash and cash equivalents 771,424 694,426 Cash and cash equivalents, beginning of period 3,459,402 2,963,172 Cash and cash equivalents, end of period $ 4,230,826 3,657,598 Supplemental disclosures of cash flow items: Income taxes paid $ 10,000 50,000 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
Advant-e Corporation Announces First Quarter 2012 Results
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