Mr. Mukesh Sabharwal reports

ADVANTEX ANNOUNCES FISCAL 2024 FIRST QUARTER RESULTS

Advantex Marketing International Inc. has released its results for the three months ended Sept. 30, 2023.

Improvements continue the trend from fiscal year ended June 30, 2023, and reflect execution of strategies identified and implemented during the previous fiscal year. The goal is to rebuild Advantex business levels, initially to prepandemic levels, and then to capitalize on a strengthening economy to achieve growth.

The results of the progress, to date, to rebuild the business are evident in double-digit increases in revenues and gross profit. Earnings from operations before depreciation, amortization and interest are a reversal of the loss in the same period previous year. Improvements were achieved while keeping selling, general and administrative expenses in check.

Advantex carries a higher debt load to support rebuild of its business and for general corporate purposes. Furthermore, there was an increase in the interest rate on a loan payable consequent to an increase in prime rate. The impact of the foregoing two factors is reflected in higher cash interest cost. Despite an increase in cash interest costs, there is a commendable decrease in loss from operations before non-cash expenses of 10.1 per cent.

The above improvement in loss from operations before non-cash expenses (10.1 per cent) is masked by an increase in non-cash expenses. The increase in non-cash expenses is primarily on account of accretion charges, which reflect the outcome of prescribed accounting connected to the non-convertible debentures.

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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