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Advant-e Corporation Announces Second Quarter 2012 Results

2012-08-09 10:24 ET - News Release

Quarterly Revenue Increased by 8% and Net Income Increased by 29% Compared to the Second Quarter of 2012

DAYTON, Ohio, Aug. 9, 2012 /PRNewswire/ -- Advant-e Corporation (OTCQB: ADVC) today announced financial and operating results for the second 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 second quarter of 2012 of $2,546,251 increased by 8% over revenue of $2,359,624 in the second quarter of 2011. Revenue from Edict Systems increased by 9% and revenue from Merkur Group increased by 3% compared to the second quarter in 2011. 

Net income in the second quarter of 2012 was $504,505, or $.008 per share, compared to net income of $392,460, or $.006 per share, in the same period in 2011.  Net income for Edict Systems increased by 24% and net income for Merkur Group increased by 58%.

Jason K. Wadzinski, Chairman of the Board and Chief Executive Officer, stated, "I am pleased to announce a record quarter for revenue and net income.  This quarter marks nine years of consecutive quarterly net income."

"Edict Systems continued to show steady growth in its targeted markets," continued Mr. Wadzinski.  "Merkur Group reported improved net income due to our efforts at controlling costs as we continued to focus on growing revenue in this segment."

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)






Three Months Ended
June 30,


Six Months Ended
June 30,


2012


2011


2012


2011

Revenue               

$ 2,546,251


2,359,624


5,011,689


4,660,044

Cost of revenue  

983,383


976,919


2,007,120


1,894,811









Gross margin       

1,562,868


1,382,705


3,004,569


2,765,233

Marketing, general and administrative expenses         

798,363


787,593


1,653,335


1,587,050









Operating income               

764,505


595,112


1,351,234


1,178,183

Other income, net               

630


914


1,440


2,041









Income before income taxes           

765,135


596,026


1,352,674


1,180,224

Income tax expense          

260,630


203,566


460,962


402,677









Net income          

$   504,505


392,460


891,712


777,547









Earnings per share – basic and diluted           

$         .008


.006


.013


.012









Weighted average shares outstanding – basic and diluted         

66,722,590


66,722,590


66,722,590


66,722,590










 

ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS






June 30, 2012(Unaudited)


December 31, 

2011

Assets




Current Assets:




Cash and cash equivalents         

$ 4,577,425


3,459,402

Accounts receivable, net              

759,465


784,239

Prepaid software maintenance costs         

207,683


190,429

Prepaid expenses and deposits   

87,582


107,871

Prepaid income taxes   


1,910

Deferred income taxes 

228,565


207,336





Total current assets 

5,860,720


4,751,187

Software development costs, net    

203,857


262,102

Property and equipment, net            

168,973


171,199

Goodwill               

1,474,615


1,474,615

Other intangible assets, net               

117,440


159,796





Total assets          

$ 7,825,605


6,818,899





Liabilities and Shareholders' Equity




Current liabilities:




Accounts payable         

$   112,956


112,402

Income taxes payable 

25,436


Accrued salaries and other expenses         

225,389


205,334

Deferred revenue           

852,932


748,828





Total current liabilities            

1,216,713


1,066,564

Deferred income taxes      

163,301


198,456





Total liabilities     

1,380,014


1,265,020





Shareholders' equity:




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    

4,442,611


3,550,899





Total shareholders' equity

6,445,591


5,553,879





Total liabilities and shareholders' equity       

$ 7,825,605


6,818,899





ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)

 






Six Months Ended
June 30,


2012


2011

Cash flows from operating activities:




Net income

$   891,712


777,547

Adjustments to reconcile net income to net cash flows from operating
            activities:     




Depreciation   

56,515


79,875

Amortization of software development costs         

58,245


29,122

Amortization of other intangible assets    

42,356


42,357

Deferred income taxes 

(56,384)


(62,265)

Increase (decrease) in cash and cash equivalents arising from
                       changes in assets and liabilities:   




Accounts receivable           

24,774


26,564

Prepaid software maintenance costs              

(17,254)


(29,468)

Prepaid expenses and deposits        

20,289


(80,004)

Prepaid income taxes        

1,910


Accounts payable              

554


39,279

Income taxes payable       

25,436


(25,058)

Accrued salaries and other expenses              

20,055


210,372

Deferred revenue

104,104


99,252





Net cash flows from operating activities        

1,172,312


1,107,573





Cash flows from investing activities:




Purchases of property and equipment 

(54,289)


(14,587)

Software development costs


(40,636)





Net cash flows from investing activities

(54,289)


(55,223)





Cash flows from financing activities:




Dividends paid


(667,226)





Net increase in cash and cash equivalents    

1,118,023


385,124

Cash and cash equivalents, beginning of period          

3,459,402


2,963,172





Cash and cash equivalents, end of period     

$ 4,577,425


3,348,296





Supplemental disclosures of cash flow items:




Income taxes paid   

$   490,000


490,000

Non-cash transactions:           




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

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