Tuesday, March 26, 2013
Advant-e Corporation Announces
Financial Results for 2012
Company Reports Record Revenue and Net Income; Revenue Increased 5%
and Net Income Increased 17% Compared to 2011

Beavercreek, Ohio, March 26, 2013 -- Advant-e Corporation (OTCQB: ADVC) today announced financial and operating results for the year ending December 31, 2012.  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.

The Company reported revenue in 2012 of $10,106,048 compared to revenue of $9,588,535 in 2011, and reported net income for 2012 of $2,000,842, or $.030 per share, compared to $1,711,380, or $.026 per share, in 2011.

Consolidated revenue set a record, and increased by 5% over 2011.  Revenue for Edict Systems, which grew for the twelfth consecutive year, increased by 6% primarily from growth in Web EDI services in Grocery/Retail and Automotive, and in EnterpriseEC.  Revenue from Merkur Group decreased by 1% as Merkur continues to confront challenges in its targeted markets.

Consolidated net income set a record and increased by 17% over 2011.  2012 was the tenth consecutive year that the Company has reported a net profit. Net income increased from Edict Systems by 14% and from Merkur Group by 29%.

Mr. Jason K. Wadzinski, Chairman and CEO of Advant-e stated, “2012 was a good year for Advant-e Corporation.  Although Merkur Group did not show revenue growth, Merkur did increase its contribution to net income.  Edict continued to grow in its targeted markets, and contributed significantly to our profitability.”

“Our previously stated goal has been to achieve a minimum 20% pre-tax income.  In 2012 and 2011 we reported pre-tax income of 30% and 27%. In 2013 we will be investing significantly in our infrastructure and our services. We expect to reach our 20% goal in 2013, but not to exceed it by as much as we did in the prior two years.”

”In a press release dated December 13, 2012, we stated that we are committed to the previously announced voluntary suspension of our public reporting obligations,” continued Mr. Wadzinski.  “Since that time there have been no changes in the determining factors that this action would be in the best interests of the Company and our shareholders.”
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ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
For the years ended December 31, 2012 and 2011
2012 2011
Revenue $10,106,048 9,588,535
Cost of revenue 3,960,341 3,778,885
Gross Margin 6,145,707 5,809,650
Marketing, general and administrative expenses 3,114,288 3,216,048
Operating income 3,031,419 2,593,602
Other income, net 2,233 2,530
Income before income taxes 3,033,652 2,596,132
Income tax expense 1,032,810 884,752
Net income 2,000,842 1,711,380
Earnings per share - basic and diluted $0.030 $0.026
Weighted average shares outstanding
basic and diluted
66,287,278 66,722,590
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ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS

December 31, 2012 and 2011
2012 2011
Assets
Current assets
      Cash and equivalent assets $2,709,857 3,459,402
       Accounts receivable, net 890,704 784,239
       Prepaid software maintenance costs 228,500 190,429
       Prepaid expenses and deposits 80,283 107,871
       Prepaid income taxes 13,826 1,910
       Deferred income taxes 235,954 207,336
       Total current assets 4,159,124 4,751,187
Software development costs, net 145,611 262,102
Property and equipment, net 310,026 171,199
Goodwill 1,474,615 1,474,615
Other tangible assets, net 88,082 159,796
Total Assets $6,177,458 6,818,899
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Liabilities and Shareholders' Equity 2012 2011
Current liabilities
       Accounts payable $298,952 112,402
       Accrued salaries and other expenses 165,556 205,334
       Deferred revenue 892,482 748,828
       Total current liabilities 1,359,990 1,066,564
Deferred income taxes 181,800 198,456
Total Liabilities 1,541,790 1,265,020
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Shareholders' Equity 2012 2011
Common stock, $.001 par value; 100,000,000 shares authorized; 66,722,590 shares issued; 60,073,640 shares outstanding at December 31, 2012 and 66,722,590 shares outstanding at December 31, 2011 66,723 66,723
       Paid-in capital 1,936,257 1,936,257
       Retained Earnings 4,316,336 3,550,899
     Treasury shares, at cost, 6,648,950 shares at
     December 31, 2012
(1,683,648) -----
         Total Shareholders' equity 4,635,668 5,553,879
Total liabilities and Shareholders' equity $6,177,458 6,818,899
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ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS

For the years ended December 31, 2012 and 2011
2012 2011
Cash flows from operating activities:
       Net Income $2,000,842 1,711,380
       Adjustments to reconcile net income to net           cash flows from operating activities:    
       Depreciation 114,618 146,036
       Amortization of software development costs 116,491 87,366
       Amortization of other intangible assets 71,714 84,712
       Deferred income taxes (45,274) (99,718)
       Increase (decrease) in cash arising from          changes in assets and liabilities    
              Accounts receivable (106,465) (41,219)
              Prepaid software maintenance costs (38,071) (16,416)
              Prepaid expenses and deposits 27,588 (8,637)
              Prepaid income taxes (11,916) (1,910)
              Accounts payable 45,979 32,416
              Income taxes payable ----- (33,619)
              Accrued salaries and other expenses (36,778) 25,023
              Deferred revenue 143,654 75,018
              Net cash flows from operating activities 2,282,577 1,961,435
Cash flows from investing activities:    
       Purchases of property and equipment (113,069) (90,117)
       Software development costs ----- (40,636)
              Net cash flows from investing activities (113,069) (90,117)
Cash flows from financing activities:    
       Purchase of treasury shares (1,683,648) -----
       Dividends paid (1,235,405) (1,334,452)
              Net cash flows from financing activities (2,919,053) (1,334,452)
       Net increase (decrease) in cash and cash        equivalents (749,545) 496,230
Cash and cash equivalents, beginning of year 3,459,402 2,963,172
Cash and cash equivalents, end of year 2,709,857 3,459,402
Supplemental disclosures of cash flow items:    
       Income taxes paid 1,090,000 1,020,000
       Non-cash item: Purchases of property and        equipment on account 140,571 -----
 

About Advant-e
Advant-e, via its wholly owned subsidiaries Edict Systems, Inc. and Merkur Group, Inc. is a provider of internet-based hosted Electronic Data Interchange (EDI) and electronic document management software and services. The Company helps businesses automate manual, paper-intensive processes via expanded use of EDI or by integrating directly with ERP/MRP systems.

Additional information about Advant-e Corporation can be found at www.Advant-e.com, www.EdictSystems.com, and www.MerkurGroup.com, or by contacting investor relations at (937) 429-4288. The company's email is [email protected].

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 of 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 uncertainties.