DAYTON, Ohio, February 5, 2004 -- Advant-e Corporation (OTC
Bulletin Board: ADVC),
a leading provider of Internet-based business-to-business
electronic commerce services, today announced financial and
operating results for the year ended December 31, 2003.
For the period the Company reported revenues of $2,942,992 compared to $2,008,389 for the fiscal year ended 2002. The 47% increase in revenues is attributed to the expansion and market acceptance of the Company's Internet-based electronic commerce subscription services. Internet-based revenue in 2003 increased 60% from $1,728,996 in 2002 to $2,760,200 in 2003.
Net income for 2003 was $215,175 or $.04 per share compared to a net loss in 2002 of $307,534 or ($.05) per share. These results are due to increased revenue and an active program of cost control and containment.
For the fourth quarter of 2003 the Company reported revenue of $818,641 and net income of $182,836 or $.03 per share compared to revenue of $567,292 and a net loss of $161,301 or ($.03) for the fourth quarter of 2002.
The Company reduced it's total liabilities to $485,935 from $1,213,353 as of December 31, 2003 in large part due to the conversion and payment of the majority of the Company's convertible notes that were issued in 2001 and 2002. Shareholders equity at year-end increased to $879,360 from $22,633 in 2002.
Commenting on the year-end results, Mr. Wadzinski, President
and CEO of Advant-e stated, "2003 was a great year for
us. With the increase in revenue from our core products and
services combined with our vigilance in monitoring expenses,
we are pleased to report a significant improvement over 2002.
Due to the reduction of the majority of our outstanding debt
in 2003 and our improved cash balance, we began 2004 in a
much better position as we strive to increase the market acceptance
of our existing products and services along with introducing
new solutions that help our customers connect, integrate,
manage, and expand their e-business trading communities."
ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
Year Ended December 31
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2003 2002
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REVENUES
Internet products and services $ 2,760,200 1,728,996
Software and license fees 182,792 279,393
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Total revenues 2,942,992 2,008,389
--------- ---------
OPERATING EXPENSES
Production 115,750 132,433
Salaries and benefits 1,457,817 1,151,413
General and administrative 614,233 526,510
Depreciation 51,517 36,081
Amortization of software development costs 290,852 184,289
Interest 188,402 311,463
--------- -------
Total operating expenses 2,718,571 2,342,189
--------- ---------
INCOME (LOSS) BEFORE TAXES 224,421 (333,800)
INCOME TAXES (BENEFIT) 9,246 ( 26,266)
---------- --------
NET INCOME (LOSS) $ 215,175 (307,534)
========= ========
EARNINGS (LOSS) PER SHARE
Basic $ 0.04 (0.05)
========= =========
Diluted $ 0.04 (0.05)
========= =========
AVERAGE SHARES OUTSTANDING
Basic 5,702,751 5,661,002
========= =========
Diluted 5,794,365 5,661,002
========= =========
ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Quarter Ended December 31
-------------------------
2003 2002
---- ----
REVENUES
Internet products and services $ 772,348 523,119
Software and license fees 46,293 44,173
--------- -------
Total revenues 818,641 567,292
--------- -------
OPERATING EXPENSES
Production 28,840 24,890
Salaries and benefits 349,144 394,356
General and administrative 128,201 200,977
Depreciation 14,857 15,390
Amortization of software development costs 75,910 72,695
Interest 49,037 55,161
--------- -------
Total operating expenses 645,989 763,469
--------- ---------
INCOME (LOSS) BEFORE TAXES 172,652 (196,177)
INCOME TAXES BENEFIT (10,184) ( 34,876)
---------- -------
NET INCOME (LOSS) $ 182,836 (161,301)
========= =========
EARNINGS (LOSS) PER SHARE
Basic $ 0.03 (0.03)
========= =========
Diluted $ 0.03 (0.03)
========= =========
AVERAGE SHARES OUTSTANDING
Basic 5,826,635 5,661,002
========= =========
Diluted 6,022,358 5,661,002
========= =========
ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
December 31
-----------------------
ASSETS 2003 2002
---- ----
CURRENT ASSETS
Cash and cash equivalents $ 216,448 98,740
Accounts receivable, net 215,895 157,655
Deferred income taxes 266,400 40,600
Prepaid expenses 9,604 46,817
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Total current assets 708,347 343,812
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SOFTWARE DEVELOPMENT COSTS, net of
accumulated amortization of $585,619 at
December 31, 2003 and $294,767 at
December 31, 2002 481,678 634,956
PROPERTY AND EQUIPMENT, net of accumulated
depreciation of $154,977 at December 31,
2003 and $103,460 at December 31, 2002 168,687 171,589
OTHER ASSETS
Deferred income taxes - 79,046
Deposits 6,583 6,583
------ ------
6,583 85,629
--------- ---------
Total assets $ 1,365,295 1,235,986
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 72,172 158,320
Accrued interest 833 118,025
Accrued salaries and other expenses 71,034 49,600
Deferred revenue 90,931 93,893
Bank notes payable 4,965 14,097
Convertible subordinated notes
payable, net 50,000 729,621
8% demand notes payable to shareholder 40,000 45,000
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Total current liabilities 329,935 1,208,556
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LONG-TERM LIABILITIES
Deferred income taxes 156,000 -
Bank notes payable, less current
maturities - 4,797
------- ---------
Total long-term liabilities 156,000 4,797
------- ---------
Total liabilities 485,935 1,213,353
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SHAREHOLDERS' EQUITY
Common stock, $.001 par value; 20,000,000
shares authorized; 6,244,917 outstanding
at December 31, 2003 and 5,661,002
outstanding at December 31, 2002 6,245 5,661
Paid-in capital 1,491,427 850,459
Retained earnings deficit (618,312) (833,487)
--------- ---------
Total shareholders' equity 879,360 22,633
--------- ---------
Total liabilities and shareholders'
equity $ 1,365,295 1,235,986
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.