Advant-e Corporation Announces 2004 Financial Results, Record
Revenue and Earnings Company Reports 22% Increase in Revenue, 118%
Increase in Net Income over Prior Year DAYTON, Ohio, Feb. 15
/PRNewswire-FirstCall/ -- Advant-e Corporation (OTC:AVEE) (BULLETIN
BOARD: AVEE) , a provider of Internet-based business-to-business
electronic commerce services, today announced financial and
operating results for the year ending December 31, 2004. For the
period the Company reported revenues of $3,600,732 compared to
$2,942,992 for the fiscal year ended 2003. The 22% increase in
revenue is attributed to the continued expansion and market
acceptance of the Company's Internet-based electronic commerce
subscription services. Net income for 2004 was $469,323 or $.08 per
share ($.07 per share fully diluted) compared to $215,175, or $.04
per share in 2003. For the fourth quarter of 2004 the Company
reported revenue of $990,077 and net income of $127,111, or $.02
per share ($.01 per share fully diluted), compared to revenue of
$818,641 and net income of $182,836, or $.03 per share, in the
fourth quarter of 2003. The reduction in net income for the quarter
is attributable to an income tax benefit in the fourth quarter of
2003 of $10,184, compared to an income tax expense of $97,000 for
the fourth quarter of 2004. Income before taxes in the fourth
quarter of 2004 increased by 30% over the same period in 2003.
Commenting on the year-end results, Mr. Wadzinski, CEO of Advant-e
stated, "2004 was another great year for us. We exceeded our goal
of 20% pretax profitability and significantly improved our overall
financial condition. While software revenue continued its expected
decline, our internet-based revenue continued its growth by
increasing 27% in 2004 and accounted for 97% of revenue. Our
strategy of expanding the use of our solutions to markets outside
of the grocery industry has shown early success with our recent win
in the automotive manufacturing sector. I would like to thank the
dedicated team at Edict Systems for their outstanding effort and
delivering a record year." About Advant-e Corporation Advant-e, via
its wholly owned and sole operating subsidiary Edict Systems, Inc.,
is a provider of Business-to-Business electronic commerce software
and Internet-based applications specializing in Electronic Data
Interchange (EDI) and XML-based solutions for recurring
transactions. Advant-e specializes in horizontal transaction
services via EnterpriseEC(R), an Internet-based Electronic Business
Transaction Network, and within specific vertical industries via
web-based solutions including http://www.groceryec.com/ ,
http://www.retailec.com/ , http://www.cpgsupplier.com/ ,
http://www.mfgec.com/ , and http://www.webedi.com/ . Additional
information about Advant-e Corporation can be found at
http://www.advant-e.com/ and http://www.edictsystems.com/ or by
contacting investor relations at (937) 429-4288. The company's
email is . ADVANT-E CORPORATION AND SUBSIDIARY CONSOLIDATED
STATEMENTS OF INCOME Year Ended December 31, 2004 2003 Revenue $
3,600,732 2,942,992 Cost of revenue 1,239,179 1,146,680 Gross
Margin 2,361,553 1,796,312 Marketing, general and administrative
expenses 1,562,621 1,383,489 Operating income 798,932 412,823
Interest 2,209 188,402 Income before taxes 796,723 224,421 Income
taxes 327,400 9,246 Net income $ 469,323 215,175 Basic earnings per
common share $ 0.08 0.04 Diluted earnings per common share $ 0.07
0.04 Weighted average common shares outstanding 6,244,917 5,702,751
Weighted average common shares outstanding, assuming dilution
6,587,285 5,794,365 ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) Three Months Ended
December 31, 2004 2003 Revenue $ 990,077 818,641 Cost of revenue
325,474 269,174 Gross margin 664,603 549,467 Marketing, general and
administrative expenses 440,492 327,778 Operating income 224,111
221,689 Interest -- 49,037 Income before taxes 224,111 172,652
Income taxes (benefit) 97,000 (10,184) Net income $ 127,111 182,836
Basic earnings per common share $ 0.02 0.03 Diluted earnings per
common share $ 0.01 0.03 Weighted average common shares outstanding
6,244,917 5,826,635 Weighted average common shares outstanding,
assuming dilution 6,461,143 6,022,358 ADVANT-E CORPORATION AND
SUBSIDIARY CONSOLIDATED BALANCE SHEETS December 31, 2004 2003
Assets Current Assets Cash and cash equivalents $ 944,892 216,448
Accounts receivable, net 290,394 215,895 Prepaid expenses and
deposit 26,420 16,187 Deferred income taxes -- 266,400 Total
current assets 1,261,706 714,930 Software development costs, net
298,809 481,678 Property and equipment, net 271,604 168,687 Total
assets $ 1,832,119 $ 1,365,295 Liabilities and Shareholders' Equity
Current liabilities Accounts payable $ 39,681 72,172 Accrued
salaries and other expenses 99,810 71,867 Income taxes payable
26,000 -- Deferred revenue 142,788 90,931 Notes payable -- 94,965
Total current liabilities 308,279 329,935 Long-term liabilities
Deferred income taxes 191,000 156,000 Total liabilities 499,279
485,935 Shareholders' equity Common stock, $.001 par value;
20,000,000 shares authorized; 6,244,917 outstanding 6,245 6,245
Paid-in capital 1,475,584 1,491,427 Accumulated deficit (148,989)
(618,312) Total shareholders' equity 1,332,840 879,360 Total
liabilities and shareholders' equity $ 1,832,119 1,365,295 ADVANT-E
CORPORATION AND SUBSIDIARY CONSOLIDATED STATEMETS OF CASH FLOWS
Year Ended December 31, 2004 2003 Cash flows from operating
activities Net income $469,323 215,175 Adjustments to reconcile net
income to net cash provided by operating activities: Depreciation
80,637 51,517 Amortization of software development costs 332,430
290,852 Deferred income taxes 301,400 9,246 Amortization of note
discount resulting from valuation of warrants and beneficial
conversion features -- 70,129 Increase (decrease) in cash arising
from changes in assets and liabilities: Accounts receivable
(74,499) (58,240) Prepaid expenses (10,233) 37,213 Accounts payable
(32,491) (86,148) Income taxes payable 26,000 -- Accrued salaries,
interest and other expenses 28,776 21,433 Accrued interest (833)
(94,151) Deferred revenue 51,857 (2,962) Net cash provided by
operating activities 1,172,367 454,064 Cash flows from investing
activities Purchases of equipment (183,554) (48,615) Software
development costs (149,561) (137,574) Net cash used in investing
activities (333,115) (186,189) Cash flows from financing activities
Payments on notes (94,965) (138,929) Payments of direct costs of
securities registration (15,843) (11,238) Net cash used in
financing activities (110,808) (150,167) Net increase in cash and
cash equivalents 728,444 117,708 Cash and cash equivalents,
beginning of period 216,448 98,740 Cash and cash equivalents, end
of period $944,892 216,448 Supplemental disclosures of cash flow
information Interest paid $3,043 212,424 Non-cash transactions
Conversion to common stock of convertible subordinated notes and
related accrued interest -- 628,040 Fair value of warrants issued
with convertible subordinated notes -- 24,750 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
or 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. DATASOURCE: Advant-e
Corporation CONTACT: Investor Relations of Advant-e Corporation ,
+1-937-429-4288, or Web site: http://www.advant-e.com/
http://www.edictsystems.com/ http://www.groceryec.com/
http://www.retailec.com/ http://www.cpgsupplier.com/
http://www.mfgec.com/ http://www.webedi.com/
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