Mr. Mukesh Sabharwal reports

ADVANTEX ANNOUNCES FISCAL 2023 RESULTS

Advantex Marketing International Inc. has released its results for the fiscal year ended June 30, 2023.

Improvements in financial performance reflected execution of strategies identified and implemented during the year ended June 30, 2022. The goal was to rebuild Advantex business levels, initially to prepandemic levels, and then to capitalize on a strengthening economy to achieve double-digit growth. Advantex raised $1.0-million capital during fiscal 2023. This enabled funds to be put toward accelerating the rebuild of the MCA portfolio. The loyalty marketing program benefited from an increase in spending on marketing activities by businesses and a rebound in travel postpandemic. The outcome was evident in a double-digit increase in revenues of 21.3 per cent and gross profit, prior to one-time writeback of direct costs, of 50.8 per cent in fiscal 2023.

Impressively, save for one-off selling, general and administrative expense, SG&A in fiscal 2023 was reduced because of key initiatives, including closure of the corporate office. As a result, loss from operations before depreciation, amortization and interest, and one-off direct costs and SG&A was sharply down (79.0 per cent).

In fiscal 2023, Advantex carried higher debt to support rebuild of its business level and for general corporate purposes. Furthermore, there was an increase in the interest rate on the loan payable consequent to the increase in prime rate. The impact of the foregoing two factors was reflected in higher cash interest cost. Despite an increase in cash interest costs, there was a commendable decrease in loss from operations before one-off direct costs & SG&A, and non-cash expenses of 20.1 per cent.

The above improvement in loss from operations before one-off direct costs and SG&A, and non-cash expenses (20.1 per cent) was masked by an increase during fiscal 2023 in non-cash expenses and one-off SG&A. The increase in non-cash expenses is primarily on account of accretion charges, which reflect an outcome of prescribed accounting connected to the non-convertible debentures. The impact of one-off direct costs and SG&A on fiscal 2023 compared with fiscal 2022 is set out herein.

About Advantex Marketing International Inc.

Advantex provides working capital to merchants. Advantex also provides specialized marketing programs that enable members of Aeroplan to earn Aeroplan points at participating merchants.

Advantex shares trade on the Canadian Securities Exchange under the symbol ADX.

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