Advant-e Corporation Announces First Quarter 2011 Results; $.02 Per Share Special Cash Dividend |
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Company Reports 5% Revenue Increase and 46% Net Income Increase over First Quarter of 2010; Declares Special Cash Dividend of $.02 per share, payable in Installments of $.01 per share no later than June 30, 2011 and December 31, 2011
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DAYTON, Ohio, May 12, 2011 -- Advant-e Corporation (OTC Bulletin Board: ADVC) today announced financial and operating results for the first quarter of 2011. 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. Edict Systems and Merkur Group are wholly owned subsidiaries of Advant-e Corporation.
Revenue in the first quarter of 2011 was $2,300,420, a 5% increase, compared to revenue of $2,193,821 in the first quarter of 2010. Revenue from Edict Systems increased 2% and revenue from Merkur Group increased 22%.
Net income in the first quarter of 2011 was $385,087, or $.006 per share, compared to net income of $264,279, or $.004 per share, in the same period in 2010. Both Edict Systems and Merkur Group contributed to the increase in net income.
The Company announced a special cash dividend of $.02 per share, payable in two installments of $.01 each no later than June 30, 2011 and December 31, 2011.
Jason K. Wadzinski, Chairman of the Board and Chief Executive Officer, remarked, “This quarter marks our 31st consecutive profitable quarter. Our net income increased by 46% despite a nominal increase in revenue. We will continue to direct our efforts toward increasing revenue in our core grocery and automotive industries, where we have a considerable presence, and to develop business opportunities in the health care and manufacturing sectors.”
“I am pleased to announce that the Company’s Board of Directors has declared a $.02 per share special cash dividend,” continued Mr. Wadzinski. “We are in a position to pay this dividend based on the Company’s earnings, cash flow and solid cash position. This dividend rewards our shareholders, many of whom are long-term investors in the Company, and enables them to utilize current favorable Federal income tax rates.”
ADVANT-E CORPORATION AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS |
March 31, 2011
(Unaudited) |
December 31,
2010 |
Assets |
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Current Assets: |
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Cash and cash equivalents |
$3,657,598 |
2,963,172 |
Accounts receivable, net |
789,026 |
743,020 |
Prepaid software maintenance costs |
201,740 |
174,013 |
Prepaid expenses and deposits |
90,534 |
99,234 |
Deferred income taxes |
170,608 |
153,643 |
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Total current assets |
4,909,506 |
4,133,082 |
Software development costs, net |
349,468 |
308,832 |
Property and equipment, net |
192,279 |
228,121 |
Goodwill |
1,474,615 |
1,474,615 |
Other intangible assets, net |
223,330 |
244,508 |
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Total assets |
$7,149,198 |
6,389,158 |
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Liabilities and Shareholders’ Equity |
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Current liabilities: |
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Accounts payable |
$135,636 |
79,986 |
Accrued salaries and other expenses |
273,643 |
180,311 |
Income taxes payable |
203,116 |
33,619 |
Deferred revenue |
733,705 |
673,810 |
Total current liabilities |
1,346,100 |
967,726 |
Deferred income taxes |
241,060 |
244,481 |
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Total liabilities |
1,587,160 |
1,212,207 |
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Shareholders’ equity: |
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Common stock, $.001 par value; 100,000,000 shares authorized; 66,951,010 shares issued and 66,722,590 shares outstanding |
66,723 |
66,723 |
Paid-in capital |
1,936,257 |
1,936,257 |
Retained earnings |
3,559,058 |
3,173,971 |
Total shareholders’ equity |
5,562,038 |
5,176,951 |
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Total liabilities and shareholders’ equity |
$7,149,198 |
6,389,158 |
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ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited) |
Three Months Ended
March 31,
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2011 |
2010 |
Revenue |
$2,300,420 |
$2,193,821 |
Cost of revenue |
917,892 |
933,984 |
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Gross margin |
1,382,528 |
1,259,837 |
Marketing, general and administrative expenses |
799457 |
859,101 |
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Operating income |
583,198 |
400,736 |
Other income (expense), net |
1,127 |
800 |
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Income before income taxes |
584,198 |
401,536 |
Income tax expense |
199,111 |
137,257 |
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Net income |
385,087 |
264,279 |
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Earnings per share – basic and diluted |
0.006 |
0.004 |
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Weighted average shares outstanding – basic and diluted |
66,722,590 |
66,722,590 |
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ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) |
Three Months Ended
March 31, |
2011 |
2010 |
Cash flows from operating activities: |
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Net income |
$385,087 |
264,279 |
Adjustments to reconcile net income to net cash flows from operating activities: |
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Depreciation |
42,078 |
55,480 |
Amortization of software development costs |
--- |
20,446 |
Amortization of other intangible assets |
21,178 |
21,178 |
Loss on disposal of property and equipment |
--- |
800 |
Deferred income taxes |
(20,386) |
(23,381) |
Purchases of trading securities |
--- |
(43,949) |
Proceeds from sales of trading securities |
--- |
49,828 |
Net unrealized loss on trading securities |
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4,667 |
Net realized loss on sale of trading securities |
--- |
18,401 |
Increase (decrease) in cash arising from changes in assets and liabilities, net of effects of acquisition: |
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Accounts receivable |
(46,006) |
(138,769) |
Prepaid software maintenance costs |
(27,727) |
(35,128) |
Prepaid expenses and deposits |
8,700 |
(3,469) |
Prepaid income taxes |
--- |
39,798 |
Accounts payable |
55,650 |
38,541 |
Accrued salaries and other expenses |
93,332 |
158,243 |
Income taxes payable |
169,497 |
120,840 |
Deferred revenue |
59,895 |
115,458 |
Net cash flows from operating activities |
741,298 |
634,316 |
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Cash flows from investing activities: |
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Purchases of property and equipment |
(6,236) |
(49,053) |
Software Development Cost |
(40,636) |
(58,609) |
Net cash flows from investing activities |
(46,872) |
(107,662) |
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Cash flows from financing activities: |
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Net increase in cash and cash equivalents |
694,426 |
526,654 |
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Cash and cash equivalents, beginning of period |
2,963,172 |
2,713,996 |
Cash and cash equivalents, end of period |
3,657,598 |
3,240,650 |
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Supplemental disclosures of cash flow items: |
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Income taxes paid |
50,000 |
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