Advant-e Corporation Announces Second Quarter 2004 Results Company
Reports 19% Increase in Revenue over Q2 2003; Net Income of
$107,343 compared to Net Loss of $5,979 in 2003 DAYTON, Ohio, Aug.
5 /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 quarter ending June 30,
2004. For the second quarter of 2004 the Company reported revenues
of $851,982, a 19% increase over revenues of $715,108 in the second
quarter of 2003. The increase in revenue was the result of
continued growth and market acceptance of the Company's
internet-based electronic commerce subscription services. Net
income for the quarter was $107,343, or $.02 per share, compared to
a net loss of $5,979, or ($.00) per share for the same period in
2003. Jason K. Wadzinski, President and CEO of Advant-e, stated, "I
am pleased to report that we have achieved our internal goal of 20%
pre-tax profitability for the third consecutive quarter. Our strong
cash flow has enabled us to build our cash balance to over $500,000
during the quarter, while at the same time investing in our
document processing infrastructure to support our future
anticipated growth. We have made significant progress over the last
twelve months in building a strong foundation to support our
strategy of extending our leadership in the grocery industry and
targeting other vertical markets for our Internet-based EDI
solutions." For the six months ending June 30, 2004 the Company
reported revenues of $1,690,617, a 24% increase over revenues of
$1,364,486 in the same period in 2003. Net income for the period in
2004 was $221,584, or $.04 per share ($0.03 per share on diluted
basis), compared to a net loss of $75,803, or ($.01) per share in
the 2003 period. The Securities and Exchange Commission informed
the Company that its registration statement for 1,603,915 common
shares became effective on July 23, 2004. The shares included
583,915 outstanding shares that were issued to former holders of
the Company's convertible subordinated notes and 1,020,000 shares
to be issued upon the exercise of warrants held principally by
former note holders. The outstanding warrants are for the issuance
of 750,000 shares of common stock at $1.205 per share, 250,000
shares at $1.25 per share, and 20,000 shares at $1.48 per share.
The warrants are exercisable as follows: 925,000 warrants between
September 27, 2005 and December 13, 2005, 20,000 through June 25,
2006, and 75,000 through December 5, 2006. 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 "vortals" including http://www.groceryec.com/ ,
http://www.retailec.com/ , http://www.cpgsupplier.com/ ,
http://www.logisticsec.com/ , and http://www.mfgec.com/ . In
addition to Internet and web-based e-commerce solutions, Edict
Systems also provides e-commerce integration and bar coding
applications via its FORMULA_ONE(R) translation software and Bar
Code Label Modules. 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 CONDENSED STATEMENTS OF OPERATIONS
(Unaudited) Three Months Ended Six Months Ended June 30, June 30,
2004 2003 2004 2003 ---- ---- ---- ---- Revenue $851,982 715,108
1,690,617 1,364,486 Cost of revenue 310,264 305,352 604,481 609,164
------- ------- --------- --------- Gross margin 541,718 409,756
1,086,136 755,322 Marketing, general and administrative expenses
361,375 358,707 713,972 732,818 ------- ------- --------- ---------
Operating income 180,343 51,049 372,164 22,504 Interest - 53,076
2,180 106,362 ------- ------ --------- --------- Income (loss)
before taxes 180,343 ( 2,027) 369,984 ( 83,858) Income taxes
(benefit) 73,000 3,952 148,400 ( 8,055) ------ ----- ---------
-------- Net income (loss) $ 107,343 ( 5,979) 221,584 ( 75,803)
======= ===== ========= ======== Basic earnings (loss) per common
share $ 0.02 (0.00) 0.04 (0.01) ==== ==== ==== ==== Diluted
earnings (loss) per common share $ 0.02 (0.00) 0.03 (0.01) ====
==== ==== ==== Weighted average common shares outstanding 6,244,917
5,661,002 6,244,917 5,661,002 ========= ========= =========
========= Weighted average common shares outstanding, assuming
dilution 6,722,654 5,661,002 6,627,694 5,661,002 =========
========= ========= ========= ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) June 30, December
31, 2004 2003 --------- ----------- Assets Current Assets Cash and
cash equivalents $ 529,578 $ 216,448 Accounts receivable, net
244,428 215,895 Prepaid expenses and deposit 9,362 16,187 Deferred
income taxes 157,000 266,400 --------- --------- Total current
assets 940,368 714,930 --------- --------- Software development
costs, net 401,909 481,678 Property and equipment, net 261,202
168,687 --------- --------- Total assets $ 1,603,479 $ 1,365,295
========= ========= Liabilities and Shareholders' Equity Current
liabilities Accounts payable $ 104,975 $ 72,172 Accrued salaries
and other expenses 88,226 71,867 Deferred revenue 122,279 90,931
Notes payable - 94,965 --------- --------- Total current
liabilities 315,480 329,935 --------- --------- Long-term
liabilities Deferred income taxes 195,000 156,000 ---------
--------- Total liabilities 510,480 485,935 --------- ---------
Shareholders' equity Common stock, $.001 par value; 20,000,000
shares authorized; 6,244,917 outstanding 6,245 6,245 Paid-in
capital 1,483,482 1,491,427 Accumulated deficit (396,728) (618,312)
--------- --------- Total shareholders' equity 1,092,999 879,360
--------- --------- Total liabilities and shareholders' equity $
1,603,479 $ 1,365,295 ========= ========= ADVANT-E CORPORATION AND
SUBSIDIARY CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited) Six Months Ended June 30, 2004 2003 ---- ---- Cash
flows from operating activities Net income (loss) $ 221,584 (
75,803) Adjustments to reconcile net income (loss) to net cash
provided by operating activities: Depreciation 34,099 22,846
Amortization of software development costs 164,014 139,881 Deferred
income taxes (benefit) 148,400 ( 8,055) Amortization of note
discount resulting from valuation of warrants and beneficial
conversion features - 43,586 Increase (decrease) in cash arising
from changes in assets and liabilities: Accounts receivable (
28,533) ( 17,612) Prepaid expenses 6,825 9,666 Accounts payable
32,803 ( 24,253) Accrued salaries, interest and other expenses
16,359 66,545 Deferred revenue 31,348 ( 16,538) ------- ------- Net
cash provided by operating activities 626,899 140,263 -------
------- Cash flows from investing activities Purchases of equipment
(126,614) ( 22,083) Software development costs ( 84,245) ( 83,166)
------- ------- Net cash used in investing activities (210,859)
(105,249) ------- ------- Cash flows from financing activities
Payments on bank notes ( 94,965) ( 6,867) Payments of direct costs
of securities offering ( 7,945) - ------- -------- Net cash used in
financing activities (102,910) ( 6,867) ------- ------- Net
increase in cash and cash equivalents 313,130 28,147 Cash and cash
equivalents, beginning of period 216,448 98,740 ------- --------
Cash and cash equivalents, end of period $ 529,578 126,887 =======
======== Supplemental disclosures of cash flow information Interest
paid $ 3,014 12,382 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.groceryec.com/
http://www.retailec.com/ http://www.cpgsupplier.com/
http://www.logisticsec.com/ http://www.mfgec.com/
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