DAYTON, Ohio, August 3 2006 -- 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, 2006.
For the third quarter of 2006 the Company reported revenues of $1,368,582, a 20% increase over revenues of $1,143,058 in the third quarter of 2005. The increase in revenue is attributed to continued strong demand in grocery and retail as well as growth in the automotive supply chain sector for the company's web EDI services.
Net income for the quarter was a record $232,375, or $.04 per share, a 41% increase over net income of $164,945, or $.02 per share for the same period in 2005.
Jason K. Wadzinski, Chairman and Chief Executive Officer, remarked, "I am pleased to announce that our third quarter was another record for Advant-e in both revenue and net income. Even though our investments in improved infastructure, product development, and sales and marketing efforts have not as yet resulted in the revenue growth we expected, we remain committed to our strategy of prudent investment in those areas that provide the best opportunity to accelerate our top-line sales."
For the nine months ending September 30, 2006 the Company reported revenues of $3,964,509, a 22% increase over revenues of $3,258,931 in the same period in 2005. Net income for the period in 2006 was $630,936, or $.10 per share, compared to net income of $390,324, or $.06 per share in the 2005 period.
ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2006 2005 2005 2004
Revenue $ 1,368,582 1,143,058 3,964,509 3,258,931
Cost of revenue 422,394 379,142 1,199,923 1,142,521
Gross margin 964,188 763,916 2,764,586 2,116,410
Marketing, general and
administrative expenses 589,891 494,103 1,799,812 1,471,118
Operating income 356,297 269,813 964,774 645,292
Other income (expense) 14,142 5,132 46,531 5,132
Income before taxes 370,439 274,945 1,011,305 650,424
Income tax expense 138,064 110,000 380,369 260,100
Net income $ 232,375 164,945 630,936 390,324
Basic earnings per share $ 0.04 0.02 0.10 0.06
Diluted earnings per share $ 0.04 0.02 0.10 0.06
Weighted average shares
outstanding 6,403,174 6,332,423 6,403,174 6,298,765
Weighted average shares
outstanding, assuming
dilution 6,432,246 6,364,810 6,429,770 6,308,378
ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED CONDENSED BALANCE SHEETS
September 30, December 31,
2006 2005
(Unaudited)
Assets
Current Assets
Cash and cash equivalents $ 1,850,956 1,763,435
Short-term investments 264,503 255,902
Accounts receivable, net 446,581 351,482
Prepaid expenses and deposit 46,143 25,128
Total current assets 2,608,183 2,365,947
Software development costs, net 258,365 160,656
Property and equipment, net 361,012 262,563
Total assets $ 3,227,560 2,789,126
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable $ 56,376 44,838
Accrued salaries and other expenses 126,825 115,510
Income taxes payable 26,305 375,652
Deferred income taxes 70,966 26,000
Deferred revenue 81,250 76,173
Total current liabilities 361,722 638,173
Deferred income taxes 212,530 136,000
Total liabilities 574,252 774,173
Shareholders' equity
Common stock, $.001 par value; 20,000,000
shares authorized; 6,403,714 outstanding
6,403 6,403
Paid-in capital 1,551,606 1,551,606
Accumulated other comprehensive income 13,034 5,615
Retained earnings (deficit) 849,890 451,329
Total shareholders' equity 1,082,265 2,014,953
Total liabilities and shareholders'
equity $ 3,227,560 2,789,126
ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
Nine Months Ended
September 30,
2006 2005
Cash flows from operating activities:
Net income $ 630,936 390,324
Adjustments to reconcile net income to net
cash flows from operating activities:
Depreciation 105,624 80,115
Amortization of software development costs 93,793 185,280
Loss on disposal of assests 41,921 ---
Net realized gains on
available-for-sale investments (8,768) ---
Deferred income taxes 116,963 (16,000)
Icrease(decrease) in cash arising from
changes in assets and liabilites
Accounts receivable (95,099) (7,529)
Prepaid expenses (21,015) (16,635)
Accounts payable 11,538 691
Accrued salaries, interest and other
expenses 11,315 7,515
Income taxes payable (349,347) 242,100
Deferred revenue 5,077 (55,594)
Net cash flows from operating activities 542,938 810,267
Cash flows from investing activities:
Purchases of available-for-sale investments (107,966) (235,175)
Proceeds from sale of available-for-sale
investments 90,085 16,006
Purchases of equipment (238,480) (83,485)
Software development costs (199,056) (64,519)
Net cash flows from investing activities (455,417) (367,173)
Cash flows from financing activities:
Issuance of common stock --- 91,500
Payments of direct costs of securities --- (6,741)
registration
Net cash flows from financing activities --- 84,759
Net increase in cash and cash equivalents 87,521 527,853
Cash and cash equivalents, beginning of period $ 1,763,435 944,892
Cash and cash equivalents, end of period $ 1,850,956 1,472,745
Supplemental disclosures of cash flow items:
Income taxes paid $ 641,000 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.