Advant-e Corporation Announces Second Quarter 2010 Results
Company Reports Record Net Income for the Second Quarter of 2010; Revenue Growth of 6% over Q2 2009
DAYTON, Ohio, Aug. 6 /PRNewswire-FirstCall/ -- Advant-e Corporation (OTC Bulletin Board: ADVC) today announced financial and operating results for the second quarter of 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.
For the second quarter of 2010 the Company reported revenue of $2,343,816, a 6% increase compared to revenue of $2,200,958 in the second quarter of 2009. Revenue from Edict Systems increased by 8% and revenue from Merkur Group increased by 2%.
Net income for the second quarter of 2010 was $399,840, or $.006 per share, a 28% increase compared to net income of $311,263, or $.005 per share, for the same period in 2009.
Jason K. Wadzinski, Chairman of the Board and Chief Executive Officer, remarked, "I am pleased to announce that we reported a record quarterly net income, which is our 28th consecutive profitable quarter."
"Both Edict Systems and Merkur Group performed well. Edict Systems showed year over year growth in the grocery and automotive industries and Merkur Group increased revenue by 54% over the first quarter of this year," continued Mr. Wadzinski. "I remain cautiously optimistic about our performance for the remainder of 2010 because our pipeline of opportunities is strengthening and we will continue to focus on cost control."
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 |
|||||||||
2010 |
2009 |
2010 |
2009 |
|||||||
Revenue |
$ 2,343,816 |
2,200,958 |
4,537,637 |
4,356,250 |
||||||
Cost of revenue |
921,566 |
930,171 |
1,855,550 |
1,829,830 |
||||||
Gross margin |
1,422,250 |
1,270,787 |
2,682,087 |
2,526,420 |
||||||
Marketing, general and administrative expenses |
815,838 |
837,504 |
1,674,941 |
1,724,789 |
||||||
Operating income |
606,412 |
433,283 |
1,007,146 |
801,631 |
||||||
Other income, net |
1,205 |
25,484 |
2,004 |
5,834 |
||||||
Income before income taxes |
607,617 |
458,767 |
1,009,150 |
807,465 |
||||||
Income tax expense |
207,777 |
147,504 |
345,034 |
261,526 |
||||||
Net income |
$ 399,840 |
311,263 |
664,116 |
545,939 |
||||||
Earnings per share – basic and diluted |
$ .006 |
.005 |
.010 |
.008 |
||||||
Weighted average shares outstanding – basic and diluted |
66,722,590 |
66,890,260 |
66,722,590 |
67,006,980 |
||||||
ADVANT-E CORPORATION AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS |
||||
June 30, 2010 |
December 31, 2009 |
|||
Assets |
||||
Current Assets: |
||||
Cash and cash equivalents |
$ 2,959,670 |
2,713,996 |
||
Accounts receivable, net |
795,345 |
634,055 |
||
Prepaid software maintenance costs |
191,517 |
162,507 |
||
Prepaid expenses and deposits |
47,165 |
75,519 |
||
Prepaid income taxes |
— |
39,798 |
||
Deferred income taxes |
160,903 |
139,144 |
||
Total current assets |
4,154,600 |
3,765,019 |
||
Software development costs, net |
227,091 |
149,956 |
||
Property and equipment, net |
271,132 |
312,821 |
||
Goodwill |
1,474,615 |
1,474,615 |
||
Other intangible assets, net |
286,864 |
329,220 |
||
Total assets |
$ 6,414,302 |
6,031,631 |
||
Liabilities and Shareholders' Equity |
||||
Current liabilities: |
||||
Accounts payable |
$ 122,942 |
115,546 |
||
Dividend payable |
667,226 |
1,334,452 |
||
Accrued salaries and other expenses |
385,085 |
146,699 |
||
Income taxes payable |
50,341 |
— |
||
Deferred revenue |
680,302 |
582,298 |
||
Total current liabilities |
1,905,896 |
2,178,995 |
||
Deferred income taxes |
252,678 |
261,024 |
||
Total liabilities |
2,158,574 |
2,440,019 |
||
Shareholders' equity: |
||||
Common stock, $.001 par value; 100,000,000 shares authorized; 66,722,590 shares issued |
66,723 |
66,951 |
||
Paid-in capital |
1,936,257 |
1,964,221 |
||
Retained earnings |
2,252,748 |
1,588,632 |
||
Treasury stock at cost, 228,420 shares at December 31, 2009 |
— |
(28,192) |
||
Total shareholders' equity |
4,255,728 |
3,591,612 |
||
Total liabilities and shareholders' equity |
$ 6,414,302 |
6,031,631 |
||
ADVANT-E CORPORATION AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) |
||||
Six Months Ended |
||||
2010 |
2009 |
|||
Cash flows from operating activities: |
||||
Net income |
$ 664,116 |
545,939 |
||
Adjustments to reconcile net income to net cash flows from operating activities: |
||||
Depreciation |
110,020 |
125,716 |
||
Amortization of software development costs |
30,669 |
40,892 |
||
Amortization of other intangible assets |
42,356 |
42,356 |
||
Loss on disposal of property and equipment |
800 |
— |
||
Deferred income taxes |
(30,105) |
(74,778) |
||
Purchases of trading securities |
— |
(87,591) |
||
Proceeds from sales of trading securities |
— |
123,056 |
||
Net unrealized gain on trading securities |
— |
(24,158) |
||
Net realized loss on sales of securities |
— |
24,082 |
||
Increase (decrease) in cash arising from changes in assets and liabilities: |
||||
Accounts receivable |
(161,290) |
(111,470) |
||
Prepaid software maintenance costs |
(29,010) |
(20,210) |
||
Prepaid expenses and deposits |
28,354 |
15,258 |
||
Prepaid income taxes |
39,798 |
(2,709) |
||
Accounts payable |
7,396 |
(49,749) |
||
Accrued salaries and other expenses |
238,386 |
64,163 |
||
Income taxes payable |
50,341 |
— |
||
Deferred revenue |
98,004 |
30,153 |
||
Net cash flows from operating activities |
1,089,835 |
640,950 |
||
Cash flows from investing activities: |
||||
Purchases of property and equipment |
(69,131) |
(9,569) |
||
Software development costs |
(107,804) |
— |
||
Net cash flows from investing activities |
(176,935) |
(9,569) |
||
Cash flows from financing activities: |
||||
Purchase of treasury shares |
— |
(42,190) |
||
Dividends paid |
(667,226) |
— |
||
Net cash flows from financing activities |
(667,226) |
(42,190) |
||
Net increase in cash and cash equivalents |
245,674 |
589,191 |
||
Cash and cash equivalents, beginning of period |
2,713,996 |
2,090,005 |
||
Cash and cash equivalents, end of period |
$ 2,959,670 |
2,679,196 |
||
Supplemental disclosures of cash flow items: |
||||
Income taxes paid |
$ 285,000 |
339,013 |
||
Non-cash transaction: retirement of shares |
28,192 |
623 |
||
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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