DAYTON, Ohio, Nov. 9 /PRNewswire-FirstCall/ -- Advant-e Corporation (OTC Bulletin Board: ADVC - News), a provider of Internet-based business-to-business electronic commerce services, today announced financial and operating results for the quarter ending September 30, 2005.
For the third quarter of 2005 the Company reported revenues of $1,143,058, a 24% increase over revenues of $920,038 in the third quarter of 2004. The increase in revenue demonstrates the growing support in the marketplace for the Company's principal products -- web-based electronic data interchange subscription services (Web EDI) and electronic business transaction network services (EnterpriseEC(TM)).
Net income for the quarter was $164,945, or $.02 per share, a 37% increase over net income of $120,628, or $.02 per share for the same period in 2004.
"We are pleased with our continued growth in both revenue and earnings," said Jason K. Wadzinski, Chairman and Chief Executive Officer. "Once again our revenue hit a new record and our net income for the third quarter increased by 37% over both the third quarter of last year and second quarter of 2005. Our history of revenue growth over several years and our profitability over the past nine consecutive quarters has resulted in a strong financial foundation which we intend to leverage to enhance growth in the coming years."
For the nine months ending September 30, 2005 the Company reported revenues of $3,258,931, a 25% increase over revenues of $2,610,655 in the same period in 2004. Net income for the period in 2005 was $390,324, or $.06 per share, compared to $342,212, or $.05 per share in the 2004 period.
ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2005 2004 2005 2004
Revenue $ 1,143,058 920,038 3,258,931 2,610,655
Cost of revenue 379,142 309,224 1,142,521 913,705
Gross margin 763,916 610,814 2,116,410 1,696,950
Marketing, general and
administrative expenses 494,103 408,186 1,471,118 1,122,158
Operating income 269,813 202,628 645,292 574,792
Other income (expense) 5,132 --- 5,132 (2,180)
Income before taxes 274,945 202,628 650,424 572,612
Income tax expense 110,000 82,000 260,100 230,400
Net income $ 164,945 120,628 390,324 342,212
Basic earnings per share $ 0.02 0.02 0.06 0.05
Diluted earnings per share $ 0.02 0.02 0.06 0.05
Weighted average shares
outstanding 6,332,423 6,244,917 6,298,765 6,244,917
Weighted average shares
outstanding, assuming
dilution 6,364,810 6,634,107 6,308,378 6,628,571
ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED CONDENSED BALANCE SHEETS
September 30, December 31,
2005 2004
(Unaudited)
Assets
Current Assets
Cash and cash equivalents $ 1,472,745 944,892
Short-term investments 220,750 ---
Accounts receivable, net 297,923 290,394
Prepaid expenses and deposit 43,055 26,420
Total current assets 2,034,473 1,261,706
Software development costs, net 178,048 298,809
Property and equipment, net 274,974 271,604
Total assets $ 2,487,495 1,832,119
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable $ 40,372 39,681
Accrued salaries and other expenses 107,325 99,810
Income taxes payable 268,100 26,000
Deferred income taxes 27,600 ---
Deferred revenue 87,194 142,788
Total current liabilities 530,591 308,279
Deferred income taxes 148,000 191,000
Total liabilities 678,591 499,279
Shareholders' equity
Common stock, $.001 par value; 20,000,000
shares authorized; 6,403,714 outstanding
at September 30, 2005 and 6,244,917
outstanding at December 31, 2004 6,403 6,245
Paid-in capital 1,560,185 1,475,584
Accumulated other comprehensive income 981 ---
Retained earnings (deficit) 241,335 (148,989)
Total shareholders' equity 1,808,904 1,332,840
Total liabilities and shareholders'
equity $ 2,487,495 1,832,119
ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
Nine Months Ended
September 30,
2005 2004
Cash flows from operating activities:
Net income $ 390,324 342,212
Adjustments to reconcile net income to net
cash flows from operating activities:
Depreciation 80,115 57,238
Amortization of software development costs 185,280 250,828
Deferred income taxes (16,000) 230,400
Increase (decrease) in cash arising from
changes in assets and liabilities:
Accounts receivable (7,529) (29,415)
Prepaid expenses (16,635) (6,839)
Accounts payable 691 (39,776)
Accrued salaries, interest and other
expenses 7,515 58,721
Income taxes payable 242,100 ---
Deferred revenue (55,594) 16,829
Net cash flows from operating activities 810,267 880,198
Cash flows from investing activities:
Purchases of available-for-sale investments (235,175) ---
Proceeds from sale of available-for-sale
investments 16,006 ---
Purchases of equipment (83,485) (171,197)
Software development costs (64,519) (116,589)
Net cash flows from investing activities (367,173) (287,786)
Cash flows from financing activities:
Issuance of common stock 91,500 ---
Payments on notes --- (94,965)
Payments of direct costs of securities
registration (6,741) (15,339)
Net cash flows from financing activities 84,759 (110,304)
Net increase in cash and cash equivalents 527,853 482,108
Cash and cash equivalents, beginning of period 944,892 216,448
Cash and cash equivalents, end of period $ 1,472,745 698,556
Supplemental disclosures of cash flow items:
Interest paid $ --- 3,014
Income taxes paid $ 34,000 ---
Additional information about Advant-e Corporation can be found at www.Advant-e.com and www.edictsystems.com or by contacting investor relations at (937) 429-4288. The company's email is info@edictsystems.com.