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
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 [email protected].
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 |
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
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