Quarterly Revenue Increased by 5% and Net Income Increased by 22% Compared to the Third Quarter of 2011
DAYTON, Ohio, Nov. 8, 2012 /PRNewswire/ -- Advant-e Corporation (OTCQB: ADVC) today announced financial and operating results for the third quarter of 2012. The Company provides Internet-based Electronic Data Interchange services through Edict Systems and sells electronic document management software and services through Merkur Group.
Revenue in the third quarter of 2012 of $2,576,729 increased by 5% over revenue of $2,447,674 in the third quarter of 2011. Revenue from Edict Systems increased by 7% and revenue from Merkur Group decreased by 3% compared to the third quarter in 2011.
Net income in the third quarter of 2012 increased by 22% and was $556,737, or $.008 per share, compared to net income of $455,542, or $.007 per share, in the same period in 2011.
About Advant-e Corporation
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 advant-e@edictsystems.com.
ADVANT-E CORPORATION AND SUBSIDIARIES |
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited) |
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| Three Months Ended
September 30, | Nine Months Ended
September 30, |
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| 2012 | 2011 | 2012 | 2011 |
Revenue | $ 2,576,729 | 2,447,674 | 7,588,418 | 7,107,718 |
Cost of revenue | 999,386 | 955,698 | 3,006,506 | 2,850,509 |
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Gross margin | 1,577,343 | 1,491,976 | 4,581,912 | 4,257,209 |
Marketing, general and administrative expenses | 733,810 | 802,075 | 2,387,145 | 2,389,125 |
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Operating income | 843,533 | 689,901 | 2,194,767 | 1,868,084 |
Other income, net | 264 | 892 | 1,704 | 2,933 |
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Income before income taxes | 843,797 | 690,793 | 2,196,471 | 1,871,017 |
Income tax expense | 287,060 | 235,251 | 748,022 | 637,928 |
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Net income | $ 556,737 | 455,542 | 1,448,449 | 1,233,089 |
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Earnings per share – basic and diluted | $ .008 | .007 | .022 | .018 |
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Weighted average shares outstanding – basic and diluted | 66,722,590 | 66,722,590 | 66,722,590 | 66,722,590 |
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ADVANT-E CORPORATION AND SUBSIDIARIES |
CONSOLIDATED CONDENSED BALANCE SHEETS |
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| September 30,
2012
(Unaudited) | December 31, 2011 |
Assets |
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Current Assets: |
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Cash and cash equivalents | $5,113,837 | 3,459,402 |
Accounts receivable, net | 926,791 | 784,239 |
Prepaid software maintenance costs | 222,362 | 190,429 |
Prepaid expenses and deposits | 85,369 | 107,871 |
Prepaid income taxes | — | 1,910 |
Deferred income taxes | 231,887 | 207,336 |
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Total current assets | 6,580,246 | 4,751,187 |
Software development costs, net | 174,734 | 262,102 |
Property and equipment, net | 191,657 | 171,199 |
Goodwill | 1,474,615 | 1,474,615 |
Other intangible assets, net | 102,761 | 159,796 |
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Total assets | $ 8,524,013 | 6,818,899 |
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Liabilities and Shareholders' Equity |
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Current liabilities: |
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Accounts payable | $ 183,157 | 112,402 |
Income taxes payable | 27,934 | — |
Accrued salaries and other expenses | 286,027 | 205,334 |
Deferred revenue | 868,382 | 748,828 |
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Total current liabilities | 1,365,500 | 1,066,564 |
Deferred income taxes | 156,185 | 198,456 |
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Total liabilities | 1,521,685 | 1,265,020 |
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Shareholders' equity: |
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Common stock, $.001 par value; 100,000,000 shares authorized; 66,722,590 shares issued
and outstanding | 66,723 | 66,723 |
Paid-in capital | 1,936,257 | 1,936,257 |
Retained earnings | 4,999,348 | 3,550,899 |
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Total shareholders' equity | 7,002,328 | 5,553,879 |
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Total liabilities and shareholders' equity | $ 8,524,013 | 6,818,899 |
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ADVANT-E CORPORATION AND SUBSIDIARIES |
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) |
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| Nine Months Ended
September 30, |
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| 2012 | 2011 |
Cash flows from operating activities: |
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Net income | $ 1,448,449 | 1,233,089 |
Adjustments to reconcile net income to net cash flows from operating activities: |
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Depreciation | 85,998 | 114,861 |
Amortization of software development costs | 87,368 | 58,244 |
Amortization of other intangible assets | 57,035 | 63,534 |
Loss on disposal of assets | 195 | — |
Deferred income taxes | (66,822 ) | (96,849 ) |
Increase (decrease) in cash and cash equivalents arising from changes in assets and
liabilities: |
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Accounts receivable | (142,552) | (9,384) |
Prepaid software maintenance costs | (31,933 ) | (34,541 ) |
Prepaid expenses and deposits | 22,502 | 29,967 |
Prepaid income taxes | 1,910 | — |
Accounts payable | 70,755 | 77,195 |
Income taxes payable | 27,934 | (223) |
Accrued salaries and other expenses | 80,693 | 160,395 |
Deferred revenue | 119,554 | 136,520 |
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Net cash flows from operating activities | 1,761,086 | 1,732,808 |
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Cash flows from investing activities: |
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Purchases of property and equipment | (106,651 ) | (34,691 ) |
Software development costs | — | (40,636) |
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Net cash flows from investing activities | (106,651) | (75,327) |
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Cash flows from financing activities: |
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Dividends paid | — | (667,226) |
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Net increase in cash and cash equivalents | 1,654,435 | 990,255 |
Cash and cash equivalents, beginning of period | 3,459,402 | 2,963,172 |
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Cash and cash equivalents, end of period | $ 5,113,837 | 3,953,427 |
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Supplemental disclosures of cash flow items: |
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Income taxes paid | $ 785,000 | 735,000 |
Non-cash transactions: |
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Declared dividends payable no later than December 31, 2011 | — | 667,226 |
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.
SOURCE Advant-e Corporation