DAYTON, Ohio, Thursday March 6, 2008 -- Advant-e Corporation (OTC Bulletin Board: AVEE), a provider of Internet-based Electronic Data Interchange services and electronic document management software and services today announced financial and operating results for the year ending December 31, 2007.
The Company reported record revenues for 2007 of $7,162,329, a 33% increase over revenues of $5,403,632 for 2006. The increase is attributable to continued growth of the Company’s internet-based EDI services and revenue from products and services sold by Merkur Group, Inc. which was acquired on July 2, 2007. Net income for 2007 was a record $1,022,679 or $.15 per share compared to $858,670 or $.13 per share in 2006.
Highlights of 2007 financial and operating results include:
ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
At December 31, 2007 and 2006
2007 2006
Assets
Current Assets:
Cash and cash equivalents $2,039,447 2,209,782
Short-term investments 292,151 274,434
Accounts receivable, net 805,241 477,639
Prepaid software maintenance costs 183,618 ---
Prepaid expenses and deposits 68,930 28,339
Deferred income taxes 40,057 ---
Total current assets 3,429,444 2,990,194
Software development costs, net 194,238 247,621
Property and equipment, net 433,658 386,697
Goodwill 1,450,368 ---
Other intangible assets, net 498,644 ---
Total assets $6,006,352 3,624,512
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable 211,738 66,936
Accrued salaries and other expenses 273,210 157,802
Income taxes payable 112,700 109,642
Deferred revenue 645,093 112,846
Deffered income taxes --- 53,119
Total current liabilities 1,242,741 500,345
Deferred income taxes 288,858 165,784
Total liabilities 1,531,599 666,129
Shareholders' equity:
Common stock, $.001 par value; 20,000,000 shares authorized; 6,875,015 shares issued
and 6,815,015 shares outstanding at December 31, 2007 and 6,478,714 outstanding at
December 31, 2006 6,875 6,478
Paid in capital 2,210,200 1,641,906
Retained earnings 2,332,678 1,309,999
Treasury stock at cost, 60,000 shares at December 31, 2007 75,000 ---
Total shareholders' equity 4,474,753 2,958,383
Total liabilities and shareholders' equity 6,006,352 3,624,512
ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the years ended December 31, 2007 and 2006
2007 2006
Cash flows from operating activities:
Net income $1,022,679 858,670
Adjustments to reconsile net income to
net cash flows from operating activities:
Depreciation 228,614 153,113
Amortization of software development costs 68,746 124,498
Amortization of other intangible assets 42,356 ---
Loss on disposal of assets --- 41,922
Deferred income taxes (69,732) 60,703
Purchases of trading securities (187,218) (31,541)
Proceeds from sale of trading securities 183,694 28,393
Net realized gain on sales of securities (2,438) (9,701)
Net unrealized gain on trading securities (11,755) (27,218)
Increase (decrease) in cash arising from changes in assets and liabilities:
Accounts receivable (12,192) (126,157)
Prepaid software maintenance costs (11,306) ---
Prepaid expenses and deposits (2,182) (3,211)
Accounts payable (41,084) 22,098
Accrued salaries adn other expenses 49,712 42,292
Income taxes payable 833 (266,010)
Deferred revenue 61,721 36,673
Net cash flows from operating activities 1,320,448 904,524
Cash flows from investing activities:
Purchases of available-for-sale securities --- (107,966)
Proceeds from sale of available-for-sale securities --- 90,086
Purchases of property and equipment (242,125) (311,654)
Software development costs (15,363) (219,018)
Purchase of Merkur Group, Inc. (998,295) ---
Net cash flows from investing activities (1,255,783) (548,552)
Cash flows from financing activities:
Net payments on bank line of credit (160,000) ---
Issuance of common stock --- 90,375
Purchase of treasury shares (75,000) ---
Net cash flows from financing activities (235,000) 90,375
Net increase (decrease) in cash and cash equivalents (170,335) 446,347
Cash and cash equivalents, beginning of year 2,209,782 1,763,435
Cash and cash equivalents, end of year 2,039,447 2,209,782
Supplemental disclosures of cash flow items:
Income taxes paid $ 637,561 706,311
Non cash transactions
Issuance of common shares in connection with purchase
of Merkur Group, Inc. 568,692 ---
ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
For the years ended December 31, 2007 and 2006
2007 2006
Revenue $7,162,329 398,561
Cost of revenue 2,498,850 1,677,937
Gross margin 4,663,479 3,725,695
Marketing, general and administrative expenses 3,147,344 2,453,883
Operating income 1,516,135 1,271,812
Other income, net 77,431 87,862
Income before taxes 1,593,566 1,359,674
Income tax expense 570,887 501,004
Net income 1,022,679 858,670
Basic earnings per share 0.15 0.13
Diluted earnings per share 0.15 0.13
Weighted average shares outstanding 6,655,808 6,408,516
Weighted average shares outstanding, assuming dilution 6,655,808 6,434,615
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 uncertaintie