Advant-e Corporation Announces Financial Results for 2012 Company Reports Record Revenue and Net Income; Revenue Increased 5% and Net Income Increased 17% Compared to 2011

BEAVERCREEK, Ohio, March 26, 2013 /PRNewswire/ -- Advant-e Corporation (OTCQB: ADVC) today announced financial and operating results for the year ending December 31, 2012.  The Company provides Internet-based Electronic Data Interchange services through Edict Systems, Inc. and sells electronic document management software and services through Merkur Group, Inc. 

The Company reported revenue in 2012 of $10,106,048 compared to revenue of $9,588,535 in 2011, and reported net income for 2012 of $2,000,842, or $.030 per share, compared to $1,711,380, or $.026 per share, in 2011.

Consolidated revenue set a record, and increased by 5% over 2011.  Revenue for Edict Systems, which grew for the twelfth consecutive year, increased by 6% primarily from growth in Web EDI services in Grocery/Retail and Automotive, and in EnterpriseEC.  Revenue from Merkur Group decreased by 1% as Merkur continues to confront challenges in its targeted markets.

Consolidated net income set a record and increased by 17% over 2011.  2012 was the tenth consecutive year that the Company has reported a net profit. Net income increased from Edict Systems by 14% and from Merkur Group by 29%. 

Mr. Jason K. Wadzinski, Chairman and CEO of Advant-e stated, "2012 was a good year for Advant-e Corporation.  Although Merkur Group did not show revenue growth, Merkur did increase its contribution to net income.  Edict continued to grow in its targeted markets, and contributed significantly to our profitability."

"Our previously stated goal has been to achieve a minimum 20% pre-tax income.  In 2012 and 2011 we reported pre-tax income of 30% and 27%. In 2013 we will be investing significantly in our infrastructure and our services. We expect to reach our 20% goal in 2013, but not to exceed it by as much as we did in the prior two years."

"In a press release dated December 13, 2012, we stated that we are committed to the previously announced voluntary suspension of our public reporting obligations," continued Mr. Wadzinski.  "Since that time there have been no changes in the determining factors that this action would be in the best interests of the Company and our shareholders."

About Advant-e Corporation
Advant-e, via its wholly owned subsidiaries Edict Systems, Inc. and Merkur Group, Inc. is a provider of internet-based hosted 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 www.Advant-e.com, www.EdictSystems.com, and www.MerkurGroup.com, or by contacting investor relations at (937) 429-4288. The company's email is advant-e@edictsystems.com.

 


ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31, 2012 and 2011














2012


2011

Assets




Current assets:




Cash and cash equivalents          

$  2,709,857


3,459,402

Accounts receivable, net             

890,704


784,239

Prepaid software maintenance costs          

228,500


190,429

Prepaid expenses and deposits   

80,283


107,871

Prepaid income taxes

13,826


1,910

Deferred income taxes   

235,954


207,336





Total current assets 

4,159,124


4,751,187

Software development costs, net     

145,611


262,102

Property and equipment, net             

310,026


171,199

Goodwill               

1,474,615


1,474,615

Other intangible assets, net              

88,082


159,796





Total assets         

$  6,177,458


6,818,899





Liabilities and Shareholders' Equity




Current liabilities:




Accounts payable         

$     298,952


112,402

Accrued salaries and other expenses         

168,556


205,334

Deferred revenue           

892,482


748,828





Total current liabilities             

1,359,990


1,066,564

Deferred income taxes        

181,800


198,456





Total liabilities     

1,541,790


1,265,020





Shareholders' equity:




Common stock, $.001 par value; 100,000,000 shares authorized; 66,722,590 shares issued;
              60,073,640 shares outstanding at December 31, 2012 and 66,722,590 shares outstanding at
               December 31, 2011

66,723


66,723

Paid-in capital           

1,936,257


1,936,257

Retained earnings    

4,316,336


3,550,899

Treasury shares, at cost, 6,648,950 shares at December 31, 2012

(1,683,648)






Total shareholders' equity

4,635,668


5,553,879





Total liabilities and shareholders' equity        

$  6,177,458


6,818,899





 


ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
For the years ended December 31, 2012 and 2011










2012


2011

Revenue               

$     10,106,048


9,588,535

Cost of revenue   

3,960,341


3,778,885





Gross margin        

6,145,707


5,809,650

Marketing, general and administrative expenses           

3,114,288


3,216,048





Operating income

3,031,419


2,593,602

Other income, net

2,233


2,530





Income before income taxes              

3,033,652


2,596,132

Income tax expense             

1,032,810


884,752





Net income           

$       2,000,842


1,711,380





Earnings per share – basic and diluted           

$              0.030


0.026





Weighted average shares outstanding – basic and diluted        

66,287,278


66,722,590





 

ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the years ended December 31, 2012 and 2011














2012


2011

Cash flows from operating activities:




Net income

$   2,000,842


1,711,380

Adjustments to reconcile net income to net cash flows from operating activities:       




Depreciation   

114,618


146,036

Amortization of software development costs           

116,491


87,366

Amortization of other intangible assets     

71,714


84,712

Loss on disposal of assets          

195


1,003

Deferred income taxes   

(45,274 )


(99,718 )

Increase (decrease) in cash arising from changes in assets and liabilities:          




Accounts receivable          

(106,465 )


(41,219)

Prepaid software maintenance costs               

(38,071 )


(16,416 )

Prepaid expenses and deposits        

27,588


(8,637 )

Prepaid income taxes          

(11,916)


(1,910)

Accounts payable              

45,979


32,416

Income taxes payable         


(33,619)

Accrued salaries and other expenses              

(36,778)


25,023

Deferred revenue

143,654


75,018





Net cash flows from operating activities         

2,282,577


1,961,435





Cash flows from investing activities:




Purchases of property and equipment  

(113,069 )


(90,117 )

Software development costs  


(40,636 )





Net cash flows from investing activities         

(113,069 )


(130,753 )





Cash flows from financing activities:




Purchase of treasury shares

(1,683,648)


Dividends paid         

(1,235,405 )


(1,334,452 )





Net cash flows from financing activities         

(2,919,053 )


(1,334,452 )





Net increase (decrease) in cash and cash equivalents 

(749,545)


496,230

Cash and cash equivalents, beginning of year              

3,459,402


2,963,172





Cash and cash equivalents, end of year         

$   2,709,857


3,459,402





Supplemental disclosures of cash flow items:




Income taxes paid     

$   1,090,000


1,020,000

Non-cash item: Purchases of property and equipment on account                                                     

$      140,571


 

 

 

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.

 


SOURCE Advant-e Corporation



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