Advant-e Corporation Announces Financial Results for 2010

Company Reports Record Revenue and Net Income; Revenue increased 8% and Net income increased 33% compared to 2009

Mar 18, 2011, 08:00 ET from Advant-e Corporation

DAYTON, Ohio, March 18, 2011 /PRNewswire/ -- Advant-e Corporation (OTCQB: ADVC) today announced financial and operating results for the fiscal year ending December 31, 2010.  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.  Edict Systems and Merkur Group are wholly owned subsidiaries of Advant-e Corporation.

The Company reported record revenue in 2010 of $9,302,611, an 8% increase compared to revenue of $8,649,199 in 2009.  Revenue for Edict Systems increased 9% and revenue from Merkur Group increased 2%.

The Company reported record net income for 2010 of $1,585,339, or $.024 per share, compared to $1,194,802, or $.018 per share, in 2009.  Net income in 2010 increased 33% compared to 2009.  

Highlights of 2010 financial and operating results include:

  • Edict Systems Revenue Increased for the Tenth Consecutive Year – Revenue for Web EDI in the Grocery/Retail and Automotive sectors increased 11%.  
  • Net Income Exceeded $1 million for Fourth Consecutive Year – 2010 marks the eighth consecutive year the company has reported a net profit.  The Company exceeded its goal of 20% pre-tax profitability 6 out of last 7 years.
  • Special Cash Dividend – The Company paid the final two installments of the special cash dividend declared in 2009 totaling $1,334,452, or $.02 per share.
  • Strong Cash Position at Year-end – Cash and cash equivalents of $2,963,172 provide sufficient liquidity for funding growth and other business and financial initiatives.
  • The Company had no Outstanding Bank or Other Long-Term Debt during 2010.

Mr. Jason K. Wadzinski, Chairman and CEO of Advant-e stated, "I am pleased to announce that Advant-e reported both top line revenue growth and net income growth in 2010, with contributions coming from both Edict Systems and Merkur Group.  Revenue growth from the Grocery/Retail and Automotive sectors, helped by a price increase, was particularly notable. Our net income growth was boosted by our continued emphasis on cost controls that we implemented during the economic downturn."

"In 2011, we will be converting our Web EDI service to a new and superior platform that will allow us to add more functionality and greater value to our customers and their trading partners," continued Mr. Wadzinski.  "This migration will take considerable time and resources and may temporarily increase our cost structure during the conversion."

"I am pleased with our 2010 results and would like to thank everyone at Edict and Merkur for their hard work and focus on our continued success."

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, 2010 and 2009






2010

2009

Assets



Current assets:



Cash and cash equivalents

$  2,963,172

2,713,996

Accounts receivable, net

743,020

634,055

Prepaid software maintenance costs

174,013

162,507

Prepaid expenses and deposits

99,234

75,519

Prepaid income taxes

-

39,798

Deferred income taxes

153,643

139,144




Total current assets  

4,133,082

3,765,019

Software development costs, net     

308,832

149,956

Property and equipment, net 

228,121

312,821

Goodwill 

1,474,615

1,474,615

Other intangible assets, net 

244,508

329,220




Total assets     

$  6,389,158

6,031,631




Liabilities and Shareholders' Equity



Current liabilities:



Accounts payable      

$  79,986

115,546

Income taxes payable

33,619

-

Dividends payable      

-

1,334,452

Accrued salaries and other expenses       

180,311

146,699

Deferred revenue       

673,810

582,298




Total current liabilities 

967,726

2,178,995

Deferred income taxes     

244,481

261,024




Total liabilities

1,212,207

2,440,019




Shareholders' equity:



Common stock, $.001 par value; 100,000,000 shares authorized, 66,722,590 shares issued and
outstanding at December 31, 2010; 100,000,000 shares authorized, 66,951,010 shares issued,
and 66,722,590 shares outstanding at December 31, 2009

66,723

66,951

Paid-in capital

1,936,257

1,964,221

Retained earnings

3,173,971

1,588,632

Treasury stock, at cost, 228,420 shares at December 31, 2009

-

(28,192)




Total shareholders' equity

5,176,951

3,591,612




Total liabilities and shareholders' equity 

$  6,389,158

6,031,631







ADVANT-E CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

For the years ended December 31, 2010 and 2009






2010

2009

Revenue 

$  9,302,611

8,649,199

Cost of revenue   

3,660,685

3,561,780




Gross margin     

5,641,926

5,087,419

Marketing, general and administrative expenses 

3,237,337

3,294,187




Operating income 

2,404,589

1,793,232

Other income, net 

1,582

5,007




Income before income taxes 

2,406,171

1,798,239

Income tax expense       

820,832

603,437




Net income       

$  1,585,339

1,194,802




Earnings per share – basic and diluted 

$  0.024

0.018




Weighted average shares outstanding – basic and diluted 

66,722,590

66,869,669







ADVANT-E CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the years ended December 31, 2010 and 2009





2010

2009

Cash flows from operating activities:



Net income 

$  1,585,339

1,194,802

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



Depreciation

203,552

257,340

Amortization of software development costs

30,669

81,784

Amortization of other intangible assets

84,712

84,712

Loss on disposal of assets

4,688

Deferred income taxes

(31,042  )

(61,627  )

Purchases of trading securities

(99,922  )

Proceeds from sale of trading securities

327,193

Net realized gain on sales of securities

(34,546)

Net unrealized loss on trading securities

39,996

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



Accounts receivable

(108,965)

65,040

Prepaid software maintenance costs

(11,506  )

(6,480)

Prepaid expenses and deposits

(23,715  )

(1,158  )

Prepaid income taxes

39,798

(22,961  )

Accounts payable

(35,560  )

(91,828  )

Income taxes payable

33,619

Accrued salaries and other expenses

33,612

(136,661)

Deferred revenue

91,512

(1,379  )




Net cash flows from operating activities

1,896,713

1,594,305




Cash flows from investing activities:



Purchases of property and equipment

(123,540  )

(135,516  )

Software development costs

(189,545  )

(119,287)




Net cash flows from investing activities

(313,085  )

(254,803  )




Cash flows from financing activities:



Purchase of treasury shares

(48,285  )

Dividends paid

(1,334,452  )

(667,226  )




Net cash flows from financing activities

(1,334,452  )

(715,511  )




Net increase in cash and cash equivalents

249,176

623,991

Cash and cash equivalents, beginning of year

2,713,996

2,090,005




Cash and cash equivalents, end of year

$  2,963,172

$  2,713,996




Supplemental disclosures of cash flow items:



Income taxes paid

$  778,417

688,024

Non cash transactions:



Retirement of shares

$  28,192

56,028

Declared dividends payable in 2010

$  —

1,334,452

Capitalized retained earnings resulting from stock split

$  —

60,256




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



RELATED LINKS

http://www.advant-e.com