DAYTON, Ohio, May 15, 2008 -- Advant-e Corporation (OTC Bulletin Board: AVEE), a provider of Internet-based Electronic Data Interchange and electronic document management software and services today announced financial and operating results for the quarter ending March 31, 2008.
For the first quarter of 2008 the Company reported revenues of $2,345,234, an 66% increase over revenues of $1,416,323 in the first quarter of 2007. The increase is attributable primarily to revenue from products and services sold by Merkur Group, Inc. which was acquired on July 2, 2007, and continued growth of the Company's internet-based EDI services.
Net income for the first quarter of 2008 was $264,910, or $.04 per share, a 102% increase over net income of $131,145, or $.02 per share for the same period in 2007.
First Quarter Highlights
Jason K. Wadzinski, Chairman and Chief Executive Officer, remarked, “While our first quarter results showed some weakness last year, our first quarter results this year have been helped by Merkur having an excellent quarter, and an increase in automotive-related activity and continued growth with GroceryEC.com by Edict Systems. During the remainder of this year we will be increasing our expenditures throughout the company in support of our revenue growth initiatives. Our financial position is strong and we are very excited about our opportunities going forward for both operating entities.”
The Company also announced that its Board of Directors has authorized a share repurchase program for up to $750,000 in fair market value of Advant-e common stock. The shares may be purchased from time to time through June 30, 2008 on the open market or in privately negotiated transactions.
ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
Three Months Ended
March 31,
2008 2007
Revenue $ 2,345,234 1,416,323
Cost of revenue 920,846 508,568
Gross margin 1,424,388 907,755
Marketing, general and
administrative expenses 1,006,002 713,478
Operating income 418,386 194,277
Other income (net) 5,204 22,668
Income before income taxes 423,590 216,945
Income tax expense 158,680 85,800
Net income $ 264,910 131,145
Basic and diluted earnings per share $ 0.04 0.02
Weighted average shares
outstanding 6,815,015 6,478,714
ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED CONDENSED BALANCE SHEETS
March 31, December 31,
2008 2007
(Unaudited)
Assets
Current Assets
Cash and cash equivalents $ 2,661,648 2,039,447
Short-term investments 285,882 292,151
Accounts receivable, net 936,604 805,241
Prepaid software maintenance costs 209,529 183,618
Deferred income taxes 161,136 40,057
Total current assets 4,375,462 3,429,444
Software development costs, net 173,792 194,238
Property and equipment, net 468,445 433,658
Goodwill 1,474,615 1,450,368
Other intangible assets, net 477,466 498,644
Total assets $ 6,969,780 6,006,352
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable $536,305 211,738
Accrued salaries and other expenses 325,245 273,210
Income taxes payable 197,283 112,700
Deferred revenue 802,367 645,093
Total current liabilities 1,861,200 1,242,741
Deferred income taxes 368,917 288,858
Total liabilities 2,230,117 1,531,599
Shareholders' equity
Common stock, $.001 par value; 20,000,000
shares authorized; 6,815,015 issued and
outstanding 6,875 6,875
Paid-in capital 2,210,200 2,210,200
Retained earnings 2,597,588 2,332,678
Treasury stock at cost, 60,000 shares (75,000) (75,000)
Total shareholders' equity 4,739,663 4,474,753
Total liabilities and shareholders'
equity $ 6,969,780 6,006,352
ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
Three Months Ended
March 31,
2008 2007
Cash flows from operating activities:
Net income $ 264,910 131,145
Adjustments to reconcile net income to net
cash flows from operating activities:
Depreciation 63,399 48,487
Amortization of software development costs 20,446 18,088
Amortization of other intangible assets 21,178 ---
Deferred income taxes (41,020) 21,033
Purchases of trading securities (80,477) (74,483)
Proceeds from sales of trading securities 78,007 79,679
Net unrealized gain on sale of securities 14,078 ---
Net realized gain on sale of securities (5,339) (6,608)
Icrease(decrease) in cash arising from
changes in assets and liabilites
Accounts receivable 131,363 28,691
Prepaid software maintenance costs (25,911) ---
Prepaid expenses and deposits (51,733) (28,131)
Accounts payable 324,567 12,513
Accrued salaries, interest and other
expenses 52,035 32,011
Income taxes payable 60,336 40,233
Deferred revenue 157,274 3,498
Net cash flows from operating activities 720,387 161,668
Cash flows from investing activities:
Purchases of property and equipment 98,186 (42,800)
Software development costs --- (15,363)
Net cash flows from investing activities (98,186) (58,163)
Net increase (decrease) in cash and cash
equivalents 622,201 103,505
Cash and cash equivalents, beginning of period 2,039,447 2,209,782
Cash and cash equivalentes, end of period 2,661,648 2,313,287
Supplemental disclosures of cash flow items:
Income taxes paid 138,100 105,000
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
Advant-e, via its wholly owned and sole operating subsidiary Edict Systems, Inc., is a provider of Business-to-Business electronic commerce software and Internet-based applications specializing in Electronic Data Interchange (EDI) and XML-based solutions for recurring transactions. Advant-e specializes in horizontal transaction services via EnterpriseEC®, an Internet-based Electronic Business Transaction Network, and within specific vertical industries via web-based "vortals" including www.GroceryEC.com , www.RetailEC.com , www.CPGSupplier.com , www.LogisticsEC.com , and www.MfgEC.com .