Advant-e Corporation Announces Second Quarter 2012 Results
Quarterly Revenue Increased by 8% and Net Income Increased by 29% Compared to the Second Quarter of 2012
DAYTON, Ohio, Aug. 9, 2012 /PRNewswire/ -- Advant-e Corporation (OTCQB: ADVC) today announced financial and operating results for the second quarter of 2012. The Company provides Internet-based Electronic Data Interchange services through Edict Systems and sells electronic document management software and services through Merkur Group.
Revenue in the second quarter of 2012 of $2,546,251 increased by 8% over revenue of $2,359,624 in the second quarter of 2011. Revenue from Edict Systems increased by 9% and revenue from Merkur Group increased by 3% compared to the second quarter in 2011.
Net income in the second quarter of 2012 was $504,505, or $.008 per share, compared to net income of $392,460, or $.006 per share, in the same period in 2011. Net income for Edict Systems increased by 24% and net income for Merkur Group increased by 58%.
Jason K. Wadzinski, Chairman of the Board and Chief Executive Officer, stated, "I am pleased to announce a record quarter for revenue and net income. This quarter marks nine years of consecutive quarterly net income."
"Edict Systems continued to show steady growth in its targeted markets," continued Mr. Wadzinski. "Merkur Group reported improved net income due to our efforts at controlling costs as we continued to focus on growing revenue in this segment."
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 [email protected].
ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
| Three Months Ended |
Six Months Ended |
||||||
| 2012 |
2011 |
2012 |
2011 |
||||
| Revenue |
$ 2,546,251 |
2,359,624 |
5,011,689 |
4,660,044 |
|||
| Cost of revenue |
983,383 |
976,919 |
2,007,120 |
1,894,811 |
|||
| Gross margin |
1,562,868 |
1,382,705 |
3,004,569 |
2,765,233 |
|||
| Marketing, general and administrative expenses |
798,363 |
787,593 |
1,653,335 |
1,587,050 |
|||
| Operating income |
764,505 |
595,112 |
1,351,234 |
1,178,183 |
|||
| Other income, net |
630 |
914 |
1,440 |
2,041 |
|||
| Income before income taxes |
765,135 |
596,026 |
1,352,674 |
1,180,224 |
|||
| Income tax expense |
260,630 |
203,566 |
460,962 |
402,677 |
|||
| Net income |
$ 504,505 |
392,460 |
891,712 |
777,547 |
|||
| Earnings per share – basic and diluted |
$ .008 |
.006 |
.013 |
.012 |
|||
| Weighted average shares outstanding – basic and diluted |
66,722,590 |
66,722,590 |
66,722,590 |
66,722,590 |
|||
ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
| June 30, 2012(Unaudited) |
December 31, 2011 |
||
| Assets |
|||
| Current Assets: |
|||
| Cash and cash equivalents |
$ 4,577,425 |
3,459,402 |
|
| Accounts receivable, net |
759,465 |
784,239 |
|
| Prepaid software maintenance costs |
207,683 |
190,429 |
|
| Prepaid expenses and deposits |
87,582 |
107,871 |
|
| Prepaid income taxes |
— |
1,910 |
|
| Deferred income taxes |
228,565 |
207,336 |
|
| Total current assets |
5,860,720 |
4,751,187 |
|
| Software development costs, net |
203,857 |
262,102 |
|
| Property and equipment, net |
168,973 |
171,199 |
|
| Goodwill |
1,474,615 |
1,474,615 |
|
| Other intangible assets, net |
117,440 |
159,796 |
|
| Total assets |
$ 7,825,605 |
6,818,899 |
|
| Liabilities and Shareholders' Equity |
|||
| Current liabilities: |
|||
| Accounts payable |
$ 112,956 |
112,402 |
|
| Income taxes payable |
25,436 |
— |
|
| Accrued salaries and other expenses |
225,389 |
205,334 |
|
| Deferred revenue |
852,932 |
748,828 |
|
| Total current liabilities |
1,216,713 |
1,066,564 |
|
| Deferred income taxes |
163,301 |
198,456 |
|
| Total liabilities |
1,380,014 |
1,265,020 |
|
| Shareholders' equity: |
|||
| Common stock, $.001 par value; 100,000,000 shares authorized; |
66,723 |
66,723 |
|
| Paid-in capital |
1,936,257 |
1,936,257 |
|
| Retained earnings |
4,442,611 |
3,550,899 |
|
| Total shareholders' equity |
6,445,591 |
5,553,879 |
|
| Total liabilities and shareholders' equity |
$ 7,825,605 |
6,818,899 |
|
ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
| Six Months Ended |
|||
| 2012 |
2011 |
||
| Cash flows from operating activities: |
|||
| Net income |
$ 891,712 |
777,547 |
|
| Adjustments to reconcile net income to net cash flows from operating |
|||
| Depreciation |
56,515 |
79,875 |
|
| Amortization of software development costs |
58,245 |
29,122 |
|
| Amortization of other intangible assets |
42,356 |
42,357 |
|
| Deferred income taxes |
(56,384) |
(62,265) |
|
| Increase (decrease) in cash and cash equivalents arising from |
|||
| Accounts receivable |
24,774 |
26,564 |
|
| Prepaid software maintenance costs |
(17,254) |
(29,468) |
|
| Prepaid expenses and deposits |
20,289 |
(80,004) |
|
| Prepaid income taxes |
1,910 |
— |
|
| Accounts payable |
554 |
39,279 |
|
| Income taxes payable |
25,436 |
(25,058) |
|
| Accrued salaries and other expenses |
20,055 |
210,372 |
|
| Deferred revenue |
104,104 |
99,252 |
|
| Net cash flows from operating activities |
1,172,312 |
1,107,573 |
|
| Cash flows from investing activities: |
|||
| Purchases of property and equipment |
(54,289) |
(14,587) |
|
| Software development costs |
— |
(40,636) |
|
| Net cash flows from investing activities |
(54,289) |
(55,223) |
|
| Cash flows from financing activities: |
|||
| Dividends paid |
— |
(667,226) |
|
| Net increase in cash and cash equivalents |
1,118,023 |
385,124 |
|
| Cash and cash equivalents, beginning of period |
3,459,402 |
2,963,172 |
|
| Cash and cash equivalents, end of period |
$ 4,577,425 |
3,348,296 |
|
| Supplemental disclosures of cash flow items: |
|||
| Income taxes paid |
$ 490,000 |
490,000 |
|
| Non-cash transactions: |
|||
| Declared dividends payable no later than December 31, 2011 |
— |
667,226 |
|
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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