Advant-e Corporation Announces
Second Quarter 2009 Results |
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Company Reports Net Income Increased by 11% over Second Quarter of 2008 Despite 4% Revenue Decline |
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DAYTON, Ohio, August 13, 2009 -- Advant-e Corporation (OTC Bulletin Board: ADVC) today announced financial and operating results for the second quarter of 2009. 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 2009 the Company reported revenue of $2,200,958, a 4% decrease compared to revenue of $2,300,267 in the second quarter of 2008. Revenue from Edict Systems increased by $65,555, but revenue from Merkur Group fell by $164,864.
Net income for the second quarter of 2009 was $311,263, or $.05 per share, an 11% increase compared to net income of $279,625, or $.04 per share, for the same period in 2008.
Jason K. Wadzinski, Chairman of the Board and Chief Executive Officer, remarked, “Given the economic realities during the quarter, I am pleased that we were able to increase net income despite the drop in software-related revenue. While Merkur’s revenue is down over last year, Merkur has contributed significantly to our increased net income in the quarter.”
“Our focus for the remainder of 2009 will be to continue our push into additional industries and increase our investment in upgrades and enhancements, primarily in our Web EDI offerings and integration solutions.”
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ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited) |
Three Months Ended
June 30, |
Six Months Ended
June 30, |
|
2009 |
2008 |
2009 |
2008 |
Revenue |
$2,200,958 |
2,300,267 |
4,356,250 |
4,645,501 |
Cost of revenue |
930,171 |
902,780 |
1,829,830 |
1,823,626 |
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|
|
|
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Gross margin |
1,270,787 |
1,397,487 |
2,526,420 |
2,821,875 |
Marketing, general and administrative expenses |
837,504 |
979,392 |
1,724,789 |
1,985,394 |
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|
|
|
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Operating income |
433,283 |
418,095 |
801,631 |
836,481 |
Other income (expense), net |
25,484 |
18,407 |
5,834 |
23,611 |
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|
|
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Income before income taxes |
458,767 |
436,502 |
807,465 |
860,092 |
Income tax expense |
147,504 |
156,877 |
261,526 |
315,557 |
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Net income |
$311,263 |
279,625 |
545,939 |
544,535 |
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Earnings per share - basic and diluted |
$.05 |
.04 |
.08 |
.08 |
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Weighted average shares outstanding – basic and diluted |
6,689,026 |
6,815,015 |
6,700,698 |
6,815,015 |
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ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS |
June 30, 2009
(Unaudited) |
December 31,
2008 |
Assets |
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Current Assets: |
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Cash and cash equivalents |
$2,679,196 |
2,090,005 |
Short-term investments |
197,332 |
232,721 |
Accounts receivable, net |
810,565 |
699,095 |
Prepaid software maintenance costs |
176,237 |
156,027 |
Prepaid expenses and deposits |
59,103 |
74,361 |
Prepaid income taxes |
19,546 |
16,837 |
Deferred income taxes |
143,559 |
152,156 |
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Total current assets |
4,085,538 |
3,421,202 |
Software development costs, net |
71,561 |
112,453 |
Property and equipment, net |
318,498 |
434,645 |
Goodwill |
1,474,615 |
1,474,615 |
Other intangible assets, net |
371,576 |
413,932 |
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Total assets |
$6,321,788 |
5,856,847 |
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Liabilities and Shareholders’ Equity |
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Current liabilities: |
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Accounts payable |
$157,625 |
207,374 |
Accrued salaries and other expenses |
347,523 |
283,360 |
Deferred revenue |
613,830 |
583,677 |
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Total current liabilities |
1,118,978 |
1,074,411 |
Deferred income taxes |
252,288 |
335,663 |
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Total liabilities |
1,371,266 |
1,410,074 |
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Shareholders’ equity: |
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Common stock, $.001 par value; 20,000,000 shares authorized; 6,737,741 shares issued and 6,677,799 outstanding at June 30, 2009; 6,738,261 shares issued and 6,713,919 shares outstanding at December 31, 2008 |
6,738 |
6,738 |
Paid-in capital |
2,019,583 |
2,020,206 |
Retained earnings |
3,001,703 |
2,455,764 |
Treasury stock at cost, 60,842 and 24,342 shares at June 30, 2009 and December 31, 2008, respectively |
(77,502) |
(35,935) |
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Total shareholders’ equity |
4,950,522 |
4,446,773 |
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Total liabilities and shareholders’ equity |
$6,321,788 |
5,856,847 |
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ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) |
Six Months Ended
June 30, |
|
2009 |
2008 |
Cash flows from operating activities: |
|
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Net income |
$545,939 |
544,535 |
Adjustments to reconcile net income to net cash flows from operating activities: |
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Depreciation |
125,716 |
133,158 |
Amortization of software development costs |
40,892 |
40,892 |
Amortization of other intangible assets |
42,356 |
42,356 |
Deferred income taxes |
(74,778) |
(80,120) |
Purchases of trading securities |
(87,591) |
(146,993) |
Proceeds from sales of trading securities |
123,056 |
162,965 |
Net unrealized (gains) losses on trading securities |
(24,158) |
13,016 |
Net realized (gains) losses on sales of securities |
24,082 |
(10,564) |
Increase (decrease) in cash arising from changes in assets and liabilities: |
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Accounts receivable |
(111,470) |
(175,200) |
Prepaid software maintenance costs |
(20,210) |
(28,470) |
Prepaid expenses and deposits |
15,258 |
24,225 |
Prepaid income taxes |
(2,709) |
— |
Accounts payable |
(49,749) |
109,659 |
Accrued salaries and other expenses |
64,163 |
21,142 |
Income taxes payable |
— |
(123,687) |
Deferred revenue |
30,153 |
90,137 |
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Net cash flows from operating activities |
640,950 |
617,051 |
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Cash flows from investing activities: |
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Purchases of property and equipment |
(9,569) |
(120,258) |
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Cash flows from financing activities: |
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Purchase of treasury shares |
(42,190) |
— |
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Net increase in cash and cash equivalents |
589,191 |
496,793 |
Cash and cash equivalents, beginning of period |
2,090,005 |
2,039,447 |
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Cash and cash equivalents, end of period |
$2,679,196 |
2,536,240 |
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Supplemental disclosures of cash flow items: |
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Income taxes paid |
$339,013 |
518,100 |
Non-cash transaction |
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Retirement of 520 and 60,000 treasury shares during the six months ended June 30, 2009 and 2008, respectively |
623 |
75,000 |
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