Thursday, April 29, 2004
Advant-e Corporation Announces First Quarter 2004 Results
Company Reports 29% Increase in Revenue over Q1 2003; Net
Income of $.02 per share vs. ($.01)
DAYTON, Ohio, April 29, 2004 -- Advant-e Corporation (OTC
Bulletin Board: AVEE),
a provider of Internet-based business-to-business electronic
commerce services, today announced financial and operating
results for the quarter ending March 31, 2004.
For the first quarter of 2004 the Company reported revenues
of $838,635, a 29% increase over revenues of $649,378 in the
first 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 $114,241, or $.02 per share,
compared to a net loss of $69,824, or ($.01) per share for
the same period in 2003.
Jason K. Wadzinski, President and CEO of Advant-e, stated,
"We set a goal last year of achieving 20% pre-tax profitability.
We first achieved this goal in the fourth quarter of 2003
and I am pleased that we exceeded this goal again in the first
quarter of 2004. In addition, over the past three quarters
we eliminated our notes payable and significantly improved
our balance sheet. I believe we are building a strong foundation
allowing us to invest in enhancing our current offerings as
well as focus on new industry initiatives."
During the nine-month period ended on March 31, 2004 the Company
eliminated all of its outstanding notes payable. Most of the
holders of the Company's convertible subordinated notes converted
principal and interest of $628,040 into 583,915 shares of
the Company's common stock, and the Company paid in full the
remaining notes payable and accrued interest totaling $424,609.
Also during the nine-month period ended on March 31, 2004,
the Company reported net income totaling $405,219 and net
cash flows from operating activities totaling $579,983. As
a result, at March 31, 2004 the Company's balance sheet reflects
substantial improvement, most notably cash of $336,934, net
working capital of $591,033, total shareholders' equity of
$991,561, and notes payable of zero.
ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended
March 31,
2004 2003
---- ----
Revenue $ 838,635 649,378
Cost of revenue 294,217 303,812
--------- ---------
Gross margin 544,418 345,566
Marketing, general and administrative expenses 352,597 374,111
--------- ---------
Operating income (loss) 191,821 ( 28,545)
Interest 2,180 53,286
--------- ---------
Income (loss) before taxes 189,641 ( 81,831)
Income taxes (benefit) 75,400 ( 12,007)
--------- --------
Net income (loss) $ 114,241 ( 69,824)
========= ========
Basic earnings (loss) per common share $ 0.02 (0.01)
==== ====
Diluted earnings (loss) per common share $ 0.02 (0.01)
==== ====
Weighted average common shares outstanding 6,244,917 5,661,002
========= =========
Weighted average common shares outstanding, assuming
dilution 6,542,186 5,661,002
========= =========
ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited)
March 31, December 31,
2004 2003
---- ----
Assets
Current Assets
Cash and cash equivalents $ 336,394 216,448
Accounts receivable, net 219,303 215,895
Prepaid expenses and deposit 14,141 16,187
Deferred income taxes 241,000 266,400
--------- ---------
Total current assets 810,838 714,930
--------- ---------
Software development costs, net 444,785 481,678
Property and equipment, net 161,743 168,687
--------- ---------
Total assets $ 1,417,366 1,365,295
========= =========
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable $ 35,641 72,172
Accrued salaries and other expenses 120,123 71,867
Deferred revenue 64,041 90,931
Notes payable - 94,965
--------- ---------
Total current liabilities 219,805 329,935
--------- ---------
Long-term liabilities
Deferred income taxes 206,000 156,000
--------- ---------
Total liabilities 425,805 485,935
--------- ---------
Shareholders' equity
Common stock, $.001 par value; 20,000,000
shares authorized; 6,244,917 outstanding 6,245 6,245
Paid-in capital 1,489,387 1,491,427
Accumulated deficit (504,071) (618,312)
--------- ---------
Total shareholders' equity 991,561 879,360
--------- ---------
Total liabilities and shareholders' equity $ 1,417,366 1,365,295
========= =========
ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
Three Months Ended
March 31,
2004 2003
---- ----
Cash flows from operating activities
Net income (loss) $ 114,241 ( 69,824)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation 12,816 9,336
Amortization of software development costs 80,252 68,264
Deferred income taxes (benefit) 75,400 ( 12,007)
Amortization of note discount resulting
from valuation of warrants and beneficial
conversion features - 21,793
Increase (decrease) in cash arising from
changes in assets and liabilities:
Accounts receivable ( 3,408) 8,327
Prepaid expenses 2,046 ( 14,558)
Accounts payable ( 36,531) 56,504
Accrued salaries, interest and other expenses 48,256 58,657
Deferred revenue ( 26,890) ( 17,983)
------- -------
Net cash provided by operating activities 266,182 108,509
------- -------
Cash flows from investing activities
Purchases of equipment ( 5,872) ( 13,940)
Software development costs ( 43,359) ( 41,900)
------- -------
Net cash used in investing activities ( 49,231) ( 55,840)
------- -------
Cash flows from financing activities
Payments on notes payable ( 94,965) ( 3,412)
Payments of direct costs of securities offering ( 2,040) -
------- --------
Net cash used in financing activities ( 97,005) ( 3,412)
------- -------
Net increase in cash and cash equivalents 119,946 49,257
Cash and cash equivalents, beginning of period 216,448 98,740
------- --------
Cash and cash equivalents, end of period $ 336,394 147,997
======= ========
Supplemental disclosures of cash flow information
Interest paid $ 3,014 4,115
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.
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