Advant-e Corporation Announces
Second Quarter 2008 Results |
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Company Reports 55% Increase in Revenue and
16% Net Income Growth over Q2 2007 |
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DAYTON, Ohio, August 14, 2008 -- Advant-e Corporation (OTC Bulletin Board: ADVC), a provider of Internet-based Electronic Data Interchange and electronic document management software and services today announced financial and operating results for the quarter ending June 30, 2008.
For the second quarter of 2008 the Company reported revenues of $2,300,267, a 55% increase over revenues of $1,481,150 in the second quarter of 2007. The increase is attributable primarily to revenue from products and services sold by Merkur Group, Inc. which was acquired on July 2, 2007, and continued growth of the Company’s internet-based EDI services.
Net income for the second quarter of 2008 was $279,625, or $.04 per share, a 16% increase over net income of $241,573, or $.04 per share, for the same period in 2007.
Jason K. Wadzinski, Chairman, Chief Executive Officer, and President, remarked, “We continue to make progress in our strategy of targeting additional vertical markets for our high value solutions and services. The Merkur Group acquisition continues to contribute to revenue accounting for 29% of our total revenue so far this year.”
“In the near future we will be announcing several new and updated products and services that we believe will be well received by our targeted markets,” continued Mr. Wadzinski. “However in the short-term, we believe our results for the remainder of 2008 may fall short of our internal goals due to general economic issues as well as delayed decisions by our targeted customers.
ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Unaudited) |
Three Months Ended
June 30 |
Six Months Ended
June 30 |
|
2008 |
2007 |
2008 |
2007 |
Revenue |
$2,300,267 |
$1,481,150 |
$4,645,501 |
$2,897,473 |
Cost of revenue |
902,780 |
482,776 |
1,823,626 |
991,344 |
Gross margin |
1,397,487 |
998,374 |
2,821,875 |
1,906,129 |
Marketing, general and administrative expenses |
979,392 |
641,471 |
1,985,394 |
1,354,949 |
Operating income |
418,095 |
356,903 |
836,481 |
551,180 |
Other income, net |
18,407 |
32,587 |
23,611 |
55,255 |
Income before income taxes |
436,502 |
389,490 |
860,092 |
606,435 |
Income tax expense |
156,877 |
147,917 |
315,557 |
233,717 |
Net income |
$ 279,625 |
241,573 |
544,535 |
372,718 |
Basic and diluted earnings per share |
$ .04 |
.04 |
.08 |
.06 |
Weighted average shares outstanding |
6,815,015 |
6,478,714 |
6,815,015 |
6,478,714 |
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ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS |
June 30, 2008
(Unaudited) |
Dec. 31, 2007 |
Assets |
|
|
Current Assets: |
|
|
Cash and cash equivalents |
$ 2,536,240 |
2,039,447 |
Short-term investments |
273,727 |
292,151 |
Accounts receivable, net |
980,441 |
805,241 |
Prepaid software maintenance costs |
212,088 |
183,618 |
Prepaid expenses and deposits |
44,705 |
68,930 |
Deferred income taxes |
168,804 |
40,057 |
Total current assets |
4,216,005 |
3,429,444 |
Software development costs, net |
153,346 |
194,238 |
Property and equipment, net |
420,758 |
433,658 |
Goodwill |
1,474,615 |
1,450,368 |
Other intangible assets, net |
456,288 |
498,644 |
Total assets |
$ 6,721,012 |
6,006,352 |
Liabilities and Shareholders’ Equity |
|
|
Current liabilities: |
|
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Accounts payable |
$ 321,397 |
211,738 |
Accrued salaries and other expenses |
294,352 |
273,210 |
Income taxes payable |
13,260 |
112,700 |
Deferred revenue |
735,230 |
645,093 |
Total current liabilities |
1,364,239 |
1,242,741 |
Deferred income taxes |
337,485 |
288,858 |
Total liabilities |
1,701,724 |
1,531,599 |
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Shareholders’ equity: |
|
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Common stock, $.001 par value; 20,000,000 shares authorized; 6,815,015 shares issued and outstanding at June 30, 2008; 6,875,015 shares issued and 6,815,015 shares outstanding at December 31, 2007 |
6,815 |
6,875 |
Paid-in capital |
2,135,260 |
2,210,200 |
Retained earnings |
2,877,213 |
2,332,678 |
Treasury stock at cost, 60,000 shares at December 31, 2007 |
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(75,000) |
Total shareholders’ equity |
5,019,288 |
4,474,753 |
Total liabilities and shareholders’ equity |
$ 6,721,012 |
6,006,352 |
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ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited) |
Six Months Ended June 30, |
|
2008 |
2007 |
Cash flows from operating activities: |
|
|
Net income |
$ 544,535 |
372,718 |
Adjustments to reconcile net income to net cash flows from operating activities: |
|
|
Depreciation |
133,158 |
100,219 |
Amortization of software development costs |
40,892 |
27,854 |
Amortization of other intangible assets |
42,356 |
— |
Deferred income taxes |
(80,120) |
(18,268) |
Purchases of trading securities |
(146,993) |
(107,507) |
Proceeds from sales of trading securities |
162,965 |
125,968 |
Net unrealized (gains) losses on trading securities |
13,016 |
(6,376) |
Net realized gains on sales of securities |
(10,564) |
(13,377) |
Increase (decrease) in cash arising from changes in assets and liabilities: |
|
|
Accounts receivable |
(175,200) |
45,446 |
Prepaid software maintenance costs |
(28,470) |
— |
Prepaid expenses and deposits |
24,225 |
(4,419) |
Accounts payable |
109,659 |
(7,294) |
Accrued salaries and other expenses |
21,142 |
19,653 |
Income taxes payable |
(123,687) |
424 |
Deferred revenue |
90,137 |
3,270 |
Net cash flows from operating activities |
617,051 |
538,311 |
Purchases of property and equipment |
(120,258) |
(92,950) |
Software development costs |
— |
(15,363) |
Net cash flows from investing activities |
(120,258) |
(108,313) |
Net increase in cash and cash equivalents |
496,793 |
429,998 |
Cash and cash equivalents, beginning of period |
2,039,447 |
2,209,782 |
Cash and cash equivalents, end of period |
$ 2,536,240 |
2,639,780 |
Supplemental disclosures of cash flow items: |
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|
Income taxes paid |
$ 518,100 |
251,561 |
Non-cash transaction |
|
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Retirement of 60,000 shares repurchased in 2007 and held as treasury stock |
75,000 |
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