Advant-e Corporation Announces Financial Results for 2011
Company Reports Record Revenue and Net Income; Revenue increased 3% and Net income increased 8% compared to 2010
BEAVERCREEK, Ohio, March 22, 2012 /PRNewswire via COMTEX/ -- Advant-e Corporation (OTCBB: ADVC) today announced financial and operating results for the year ending December 31, 2011. 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 2011 of $9,588,535 compared to revenue of $9,302,611 in 2010, and reported net income for 2011 of $1,711,380, or $.026 per share, compared to $1,585,339, or $.024 per share, in 2010.
Consolidated revenue set a record, and increased by 3% over 2010. Revenue for Edict Systems, which grew for the eleventh 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 12% as Merkur continues to face challenges in their targeted markets.
Consolidated net income set a record and increased by 8% over 2010. 2011 was the ninth consecutive year that the Company has reported a net profit. Net income from Edict Systems increased by 13%, and Merkur Group contributed net income of $170,392.
Mr. Jason K. Wadzinski, Chairman and CEO of Advant-e stated, "We had a successful 2011 as we reported record revenue and record net income. We paid a $.02 per share special cash dividend and ended the year with a strong cash position with no outstanding bank or other long-term debt. We substantially exceeded our goal of 20% pre-tax profitability by achieving 27%. The Company moved to a new facility which provides additional space and infrastructure improvements. Edict Systems continued to convert Web EDI customers to our new platform, for which we have received favorable customer feedback."
"Our goal for 2012 is to increase top-line revenue growth while maintaining acceptable profitability," continued Mr. Wadzinski. "We will continue our efforts to grow in the industries in which we have a presence as well as focus on new opportunities."
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, 2011 and 2010
2011 2010
------------ ---------
Assets
Current assets:
Cash and cash equivalents $ 3,459,402 2,963,172
Accounts receivable, net 784,239 743,020
Prepaid software maintenance costs 190,429 174,013
Prepaid expenses and deposits 107,871 99,234
Prepaid income taxes 1,910 --
Deferred income taxes 207,336 153,643
------------ ---------
Total current assets 4,751,187 4,133,082
Software development costs, net 262,102 308,832
Property and equipment, net 171,199 228,121
Goodwill 1,474,615 1,474,615
Other intangible assets, net 159,796 244,508
------------ ---------
Total assets $ 6,818,899 6,389,158
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 112,402 79,986
Income taxes payable -- 33,619
Accrued salaries and other expenses 205,334 180,311
Deferred revenue 748,828 673,810
------------ ---------
Total current liabilities 1,066,564 967,726
Deferred income taxes 198,456 244,481
------------ ---------
Total liabilities 1,265,020 1,212,207
------------ ---------
Shareholders' equity:
Common stock, $.001 par value; 100,000,000 shares authorized; 66,722,590 shares issued and 66,723 66,723
outstanding
Paid-in capital 1,936,257 1,936,257
Retained earnings 3,550,899 3,173,971
------------ ---------
Total shareholders' equity 5,553,879 5,176,951
------------ ---------
Total liabilities and shareholders' equity $ 6,818,899 6,389,158
ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
For the years ended December 31, 2011 and 2010
2011 2010
------------ -----------
Revenue $ 9,588,535 9,302,611
Cost of revenue 3,778,885 3,660,685
------------ -----------
Gross margin 5,809,650 5,641,926
Marketing, general and administrative expenses 3,216,048 3,237,337
------------ -----------
Operating income 2,593,602 2,404,589
Other income, net 2,530 1,582
------------ -----------
Income before income taxes 2,596,132 2,406,171
Income tax expense 884,752 820,832
------------ -----------
Net income $ 1,711,380 1,585,339
Earnings per share - basic and diluted $ 0.026 0.024
Weighted average shares outstanding - basic and diluted 66,722,590 66,722,590
ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
For the years ended December 31, 2011 and 2010
Common Stock Paid-in Retained Treasury Total
Capital Earnings Stock
------------ --------- ----------- -------- -----------
Balance January 1, 2010 $ 66,951 1,964,221 1,588,632 (28,192) 3,591,612
Net income 1,585,339 1,585,339
Retirement of shares (228) (27,964) 28,192 --
------------ --------- -------- -----------
Balance December 31, 2010 66,723 1,936,257 3,173,971 -- 5,176,951
Net income 1,711,380 1,711,380
Dividends ($0.02 per share) (1,334,452) (1,334,452)
----------- -----------
Balance December 31, 2011 $ 66,723 1,936,257 3,550,899 -- 5,553,879
ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the years ended December 31, 2011 and 2010
2011 2010
------------ -----------
Cash flows from operating activities:
Net income $ 1,711,380 1,585,339
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation 146,036 203,552
Amortization of software development costs 87,366 30,669
Amortization of other intangible assets 84,712 84,712
Loss on disposal of assets 1,003 4,688
Deferred income taxes (99,718) (31,042)
Increase (decrease) in cash arising from changes in assets and liabilities:
Accounts receivable (41,219) (108,965)
Prepaid software maintenance costs (16,416) (11,506)
Prepaid expenses and deposits (8,637) (23,715)
Prepaid income taxes (1,910) 39,798
Accounts payable 32,416 (35,560)
Income taxes payable (33,619) 33,619
Accrued salaries and other expenses 25,023 33,612
Deferred revenue 75,018 91,512
------------ -----------
Net cash flows from operating activities 1,961,435 1,896,713
------------ -----------
Cash flows from investing activities:
Purchases of property and equipment (90,117) (123,540)
Software development costs (40,636) (189,545)
------------ -----------
Net cash flows from investing activities (130,753) (313,085)
------------ -----------
Cash flows from financing activities:
Dividends paid (1,334,452) (1,334,452)
------------ -----------
Net increase in cash and cash equivalents 496,230 249,176
Cash and cash equivalents, beginning of year 2,963,172 2,713,996
------------ -----------
Cash and cash equivalents, end of year $ 3,459,402 2,963,172
Supplemental disclosures of cash flow items:
Income taxes paid $ 1,020,000 778,417
Non cash transactions:
Retirement of shares $ -- 28,192
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
