Company Reports 24% Increase in Revenue over Prior Year, Net Income
Exceeds $1 Million for 2nd Consecutive Year DAYTON, Ohio, March 4
/PRNewswire-FirstCall/ -- Advant-e Corporation (OTC Bulletin Board:
AVEE), a provider of Internet-based Electronic Data Interchange
services and electronic document management software and services
today announced financial and operating results for the year ending
December 31, 2008. The Company reported record revenues for 2008 of
$8,869,169, a 24% increase over revenues of $7,162,329 for 2007.
The increase is attributable to continued growth of the Company's
internet-based EDI services and the first full year of revenue from
products and services sold by Merkur Group, Inc., which was
acquired on July 2, 2007. The Company reported record net income
for 2008 of $1,063,790 or $.16 per share compared to $1,022,679 or
$.15 per share in 2007. Net income increased 4% in 2008 compared to
2007. Highlights of 2008 financial and operating results include:
-- Revenue Increased for the Eighth Consecutive Year - Revenue
increased across all significant product and service categories in
2008 compared to 2007, including Web EDI growth of 10% in grocery
and 23% in automotive. -- Net Income Exceeded $1 million for Second
Consecutive Year - The Company in 2008 reported net income for the
sixth consecutive year. -- Merkur Group Inc. Acquisition - On July
2, 2007, the Company acquired Merkur Group Inc. Merkur contributed
$2,137,152 to revenue in 2008 and net income of $121,048 before
deducting non-cash charges pertaining to amortization of intangible
assets of $54,216. -- Strong Cash Position at Year-end - Cash and
cash equivalents of almost $2.1 million provides a solid foundation
for meeting the economic challenges due to the credit crisis and
weakening economy in 2009. -- One Time Dividend - In 2008 the
Company paid a one-time cash dividend of $.14 per share totaling
$940,704 to shareholders of record as of October 24, 2008. -- The
Company has no Outstanding Bank or Other Long-Term Debt - The
Company continues to maintain an unused $1 million bank line of
credit. -- Share Repurchase Program - In 2008 the Company
repurchased 101,096 shares of common stock at an average price of
$1.49 per share. Mr. Jason K. Wadzinski, Chairman and CEO of
Advant-e stated, "2008 was a challenging year for Advant-e and
almost all other companies due to the credit crisis, weakening
economy, and other factors. I am pleased that even with all of the
issues that have negatively impacted businesses across the country,
we continued to grow top line revenue last year and that we
surpassed $1 million in net income for the second consecutive
year." "Many of our customers are facing significant challenges due
to the current recession. This is especially true in the automotive
and manufacturing sector which represented 9% of Edict System's
revenue last year. Merkur Group met our expectations in 2008, but
weakness occurred in the second half of 2008, which we believe is
directly attributable to the overall economy." "Due to the
recurring nature of much of our revenue, our strong balance sheet,
and the exceptional value proposition of our product and service
offerings, we believe we are well positioned to weather the current
economic challenges in 2009 and beyond." About Advant-e Corporation
Advant-e, via its wholly owned subsidiaries Edict Systems, Inc. and
Merkur Group, Inc., is a provider of internet-based 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 http://www.advant-e.com/,
http://www.edictsystems.com/, and http://www.merkurgroup.com/, or
by contacting investor relations at (937) 429-4288. The Company's
email is . ADVANT-E CORPORATION AND SUBSIDIARIES CONSOLIDATED
STATEMENTS OF INCOME For the years ended December 31, 2008 and 2007
2008 2007 Revenue $8,869,169 7,162,329 Cost of revenue 3,476,670
2,498,850 Gross margin 5,392,499 4,663,479 Marketing, general and
administrative expenses 3,705,542 3,147,344 Operating income
1,686,957 1,516,135 Other income (expense), net (30,701) 77,431
Income before income taxes 1,656,256 1,593,566 Income tax expense
592,466 570,887 Net income $1,063,790 1,022,679 Earnings per share
- basic and diluted $0.16 0.15 Weighted average shares outstanding
- basic and diluted 6,785,794 6,655,808 ADVANT-E CORPORATION AND
SUBSIDIARIES CONSOLIDATED BALANCE SHEETS December 31, 2008 and 2007
2008 2007 Assets Current assets: Cash and cash equivalents
$2,090,005 2,039,447 Short-term investments 232,721 292,151
Accounts receivable, net 699,095 805,241 Prepaid software
maintenance costs 156,027 183,618 Prepaid expenses and deposits
74,361 68,930 Prepaid income taxes 16,837 - Deferred income taxes
152,156 70,554 Total current assets 3,421,202 3,459,941 Software
development costs, net 112,453 194,238 Property and equipment, net
434,645 433,658 Goodwill 1,474,615 1,450,368 Other intangible
assets, net 413,932 498,644 Total assets $5,856,847 6,036,849
Liabilities and Shareholders' Equity Current liabilities: Accounts
payable $207,374 211,738 Accrued salaries and other expenses
283,360 273,210 Income taxes payable - 112,700 Deferred revenue
583,677 645,093 Total current liabilities 1,074,411 1,242,741
Deferred income taxes 335,663 319,355 Total liabilities 1,410,074
1,562,096 Shareholders' equity: Common stock, $.001 par value;
20,000,000 shares authorized; 6,738,261 shares issued and 6,713,919
shares outstanding at December 31, 2008; 6,875,015 shares issued
and 6,815,015 shares outstanding at December 31, 2007 6,738 6,875
Paid-in capital 2,020,206 2,210,200 Retained earnings 2,455,764
2,332,678 Treasury stock, at cost, 24,342 and 60,000 shares at
December 31, 2008 and 2007, respectively (35,935) (75,000) Total
shareholders' equity 4,446,773 4,474,753 Total liabilities and
shareholders' equity $5,856,847 6,036,849 ADVANT-E CORPORATION AND
SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS For the years
ended December 31, 2008 and 2007 2008 2007 Cash flows from
operating activities: Net income $1,063,790 1,022,679 Adjustments
to reconcile net income to net cash flows from operating
activities: Depreciation 284,097 228,614 Amortization of software
development costs 81,785 68,746 Amortization of other intangible
assets 84,712 42,356 Deferred income taxes (65,294) (69,732)
Purchases of trading securities (264,182) (187,218) Proceeds from
sale of trading securities 258,457 183,694 Net realized (gain) loss
on sales of securities 952 (2,438) Net unrealized (gain) loss on
trading securities 64,203 (11,755) Increase (decrease) in cash
arising from changes in assets and liabilities, net of effects of
acquisition: Accounts receivable 106,146 (12,192) Prepaid software
maintenance costs 27,591 (11,306) Prepaid expenses and deposits
(5,431) (2,182) Prepaid income taxes (16,837) - Accounts payable
(4,364) (41,084) Accrued salaries and other expenses 10,150 47,487
Income taxes payable (136,947) 3,058 Deferred revenue (61,416)
61,721 Net cash flows from operating activities 1,427,412 1,320,448
Cash flows from investing activities: Purchases of property and
equipment (285,084) (242,125) Software development costs - (15,363)
Purchase of Merkur Group, Inc. - (998,295) Net cash flows from
investing activities (285,084) (1,255,783) Cash flows from
financing activities: Net payments on bank line of credit -
(160,000) Purchase of treasury shares (151,066) (75,000) Dividends
paid (940,704) - Net cash flows from financing activities
(1,091,770) (235,000) Net increase (decrease) in cash and cash
equivalents 50,558 (170,335) Cash and cash equivalents, beginning
of year 2,039,447 2,209,782 Cash and cash equivalents, end of year
$2,090,005 2,039,447 Supplemental disclosures of cash flow items:
Income taxes paid $810,279 637,561 Non cash transactions:
Retirement of shares $190,131 - Issuance of shares for purchase of
Merkur Group, Inc. $- 568,692 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. http://www.advant-e.com/index.html
DATASOURCE: Advant-e Corporation CONTACT: Investor Relations of
Advant-e Corporation, +1-937-429-4288, or Web Site:
http://www.advant-e.com/index.html
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