Advant-e Corporation Announces Record
Revenue and Net Income for 2007 |
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Company Reports 33% Increase in Revenue,
19% Increase in Net Income over Prior Year |
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DAYTON, Ohio, Thursday March 6, 2008 -- Advant-e Corporation (OTC Bulletin Board: ADVC), a provider of Internet-based Electronic Data Interchange services and electronic document management software and services today announced financial and operating results for the year ending December 31, 2007.
The Company reported record revenues for 2007 of $7,162,329, a 33% increase over revenues of $5,403,632 for 2006. The increase is attributable to continued growth of the Company’s internet-based EDI services and revenue from products and services sold by Merkur Group, Inc. which was acquired on July 2, 2007. Net income for 2007 was a record $1,022,679 or $.15 per share compared to $858,670 or $.13 per share in 2006.
Highlights of 2007 financial and operating results include:
- Revenue Increased for the seventh consecutive year
- Net Income Exceeded $1 million for first time and increased by 19%
- Merkur Group Inc. Acquisition - On July 2, 2007 the Company acquired Merkur Group Inc. which contributed $1,086,724 to revenue in 2007 and net income of $58,300 before deducting non-cash charges pertaining to amortization of intangible assets of $27,108.
- Continued Automotive related Web EDI Revenue Acceleration - Automotive and manufacturing Web EDI revenue increased by 25% and comprised 8% of Edict Systems revenue in 2007 compared to 7% in 2006.
ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
For the years ended December 31, 2007 and 2006 |
2007 |
2006 |
Revenue |
$7,162,329 |
398,561 |
Cost of revenue |
2,498,850 |
1,677,937 |
Gross margin |
4,663,479 |
3,725,695 |
Marketing, general and administrative expenses |
3,147,344 |
2,453,883 |
Operating income |
1,516,135 |
1,271,812 |
Other income (net) |
77,431 |
87,862 |
Income before taxes |
1,593,566 |
1,359,674 |
Income tax expense |
570,887 |
501,004 |
Net income |
1,022,679 |
858,670 |
Basic earnings per share |
.15 |
.13 |
| Diluted earnings per share |
.15 |
.13 |
Weighted average shares outstanding |
6,655,808 |
6,408,516 |
Weighted average shares outstanding,
assuming dilution |
6,655,808 |
6,434,615 |
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ADVANT-E CORPORATION AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS
At December 31, 2007 and 2006 |
2007 |
2006 |
Assets |
Current Assets: |
Cash and cash equivalents |
$2,039,447 |
2,209,782 |
Short-term investments |
292,151 |
274,434 |
Accounts receivable, net |
805,241 |
477,639 |
Prepaid software maintenance costs |
183,618 |
--- |
| Prepaid expenses and deposits |
68,930 |
28,339 |
Deferred income taxes |
40,057 |
--- |
Total current assets |
3,429,444 |
2,990,194 |
Software development costs, net |
194,238 |
247,621 |
Property and equipment, net |
433,658 |
386,697 |
Goodwill |
1,450,368 |
--- |
Other intangible assets, net |
468,644 |
--- |
Total assets |
$6,006,352 |
3,624,512 |
Liabilities and Shareholders’ Equity |
Current liabilities: |
|
|
Accounts payable |
211,738 |
66,936 |
Accrued salaries and other expenses |
273,210 |
157,802 |
Income taxes payable |
112,700 |
109,642 |
Deferred revenue |
645,093 |
112,846 |
| Deferred income tax |
--- |
53,119 |
Total current liabilities |
1,242,741 |
500,345 |
Deferred income taxes |
288,858 |
165,784 |
Total liabilities |
1,531,599 |
666,129 |
Shareholders’ equity: |
Common stock, $.001 par value; 20,000,000 shares authorized; 6,875,015 shares issued
and 6,815,015 shares outstanding at December 31, 2007 and 6,478,714 outstanding at
December 31, 2006 |
6,875 |
6,478 |
Paid-in capital |
2,210,200 |
1,641,906 |
Retained earnings |
2,332,678 |
1,309,999 |
Treasury stock at cost, 60,000 shares at December 31, 2007 |
75,000 |
--- |
Total shareholders’ equity |
4,739,663 |
2,958,383 |
Total liabilities and shareholders’ equity |
6,006,352 |
3,624,512 |
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ADVANT-E CORPORATION AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (For the years ended December 31, 2007 and 2006) |
2007 |
2006 |
Cash flows from operating activities: |
Net income |
$1,022,679 |
858,670 |
Adjustments to reconcile net income to net cash flows from operating activities: |
|
|
Depreciation |
228,614 |
153,113 |
Amortization of software development costs |
68,746 |
124,498 |
Amortization of other intangible assets |
42,356 |
--- |
| Loss on disposal of assets |
--- |
41,922 |
Deferred income taxes |
(69,732) |
60,703 |
Purchases of trading securities |
(187,218) |
(31,541) |
Proceeds from sales of trading securities |
183,694 |
28,393 |
| Net realized gains on trading securities |
(2,438) |
(9,701) |
Net unrealized gains on trading securities |
(11,755) |
(27,218) |
Increase (decrease) in cash arising from changes in assets and liabilities: |
Accounts receivable |
(12,192) |
(126,157) |
Prepaid software maintenance costs |
(11,306) |
--- |
Prepaid expenses and deposits |
(2,182) |
(3,211) |
Accounts payable |
(41,084) |
22,098 |
Accrued salaries and other expenses |
49,712 |
42,292 |
Income taxes payable |
833 |
(266,010) |
Deferred revenue |
61,721 |
36,673 |
Net cash flows from operating activities |
1,320,448 |
904,524 |
Cash flows from investing activities: |
| Purchases of available-for-sale securities |
--- |
(107,966) |
| Proceeds from sale of available-for-sale securities |
--- |
90,086 |
Purchases of property and equipment |
(242,125) |
(311,654) |
Software development costs |
(15,363) |
(219,018) |
| Purchase of Merkur Group, Inc. |
(998,295) |
--- |
Net cash flows from investing activities |
(1,255,783) |
(548,552) |
| Cash flows from financing activities: |
| Net payments on bank line of credit |
(160,000) |
--- |
| Issuance of common stock |
--- |
90,375 |
| Purchase of treasury shares |
(75,000) |
--- |
| Net cash flows from financing activities |
(235,000) |
90,375 |
Net increase (decrease) in cash and cash equivalents |
(170,335) |
446,347 |
Cash and cash equivalents,
beginning of year |
2,209,782 |
1,763,435 |
Cash and cash equivalents,
end of year |
2,039,447 |
2,209,782 |
Supplemental disclosures of cash flow items: |
Income taxes paid |
637,561 |
706,311 |
| Non-cash transactions |
| Income taxes paid |
568,692 |
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