Thursday March 11th, 2010
Advant-e Corporation Announces
Financial Results for 2009
Company Reports Record Net Income in 2009

Net Income in 2009 Increased by 12% Despite 2% Decrease in Revenue
Compared to Prior Year

Revenue in 2009 for Internet-based EDI Services Increased;
Software Revenue Decreased

DAYTON, Ohio, Thursday March 11, 2010 -- Advant-e Corporation (OTC Bulletin Board: ADVC), today announced financial and operating results for 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.

The Company reported revenue in 2009 of $8,649,199, a 2% decrease compared to revenue of $8,869,169 in 2008.  The decrease is attributable to a significant decline in revenue from our Merkur Group subsidiary from $2,134,193 in 2008 to $1,505,974 in 2009.  This decline was partially offset by the increase in revenue for Edict Systems from $6,734,976 in 2008 to $7,143,225 in 2009.  Revenue for Edict Systems increased by $408,249, or 6%, while revenue from Merkur Group decreased by $628,219, or 29%.

The Company reported record net income for 2009 of $1,194,802, or $.018 per share, compared to $1,063,790, or $.016 per share, in 2008.  Net income in 2009 increased 12% compared to 2008.  Earnings per share for 2009 and 2008 reflect the increased number of outstanding shares that resulted from the ten for one stock split in the fourth quarter of 2009.

Highlights of 2009 financial and operating results include:
 
Edict Systems Revenue Increased for the Ninth Consecutive Year
Revenue for Edict Systems increased across all major product and service categories in 2009 compared to 2008 with the exception of AutomotiveEC, which declined due to the overall weakness in the automotive sector.  Revenue from EnterpriseEC®, a hosted integration service, increased by 15%, from $1,175,178 in 2008 to $1,351,233 in 2009.
 
 
Net Income Exceeded $1 million for Third Consecutive Year
The Company in 2009 reported a net profit for the seventh consecutive year.
 
 
Merkur Group Net Income increased by 47%
Despite a significant decline in revenue for Merkur Group, net Income increased by 47% to $177,459 in 2009 from $121,048 in 2008.  The increase was due to the Company’s efforts to control costs and operating expenses.
 
 
Special Cash Dividend
In 2009 the Company announced a special cash dividend of $0.03 per share totaling $2,001,678, to be paid in three installments of $.01 per share.  The first installment was paid in December of 2009.   Two additional installments of $.01 per share each are scheduled to be paid in June of 2010 and December of 2010.
 
 
Strong Cash Position at Year-end
Cash and cash equivalents of $2,713,996 provide a solid foundation for growth and meeting financial obligations in 2010 and beyond.
 
 
No Outstanding Bank or Other Long-Term Debt
The Company continues to maintain an unused $1.5 million bank line of credit.


Mr. Jason K. Wadzinski, Chairman and CEO of Advant-e stated, “2009 was another challenging year for Advant-e with a significant reduction in software revenue from Merkur Group.  Customers in the automotive industry were hit very hard by the economic downturn, and accordingly, revenue from our automotive sector declined for the first year since we entered the industry in 2004. We were successful, however, in planning for the slow economy in 2009 as we reduced our selling, general and administrative expenses sufficiently to report a record net income.”

“I continue to be positive about our prospects going forward and our ability to produce acceptable financial results under the current adverse economic conditions.  We continue to pursue new industries that would benefit from our services and have been making inroads into the health care market.  Merkur Group is expanding product offerings and recently introduced an automated remittance advice solution for its PeopleSoft integration. Edict and Merkur personnel have been working together to combine product offerings into a certified SaaS EDI solution for the PeopleSoft market.”

ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
December 31, 2008 and 2009

2009

2008

Assets

   

Current Assets:

   

Cash and cash equivalents

$2,713,996

2,090,005

Short-term investments

232,721

Accounts receivable, net

634,055

699,095

Prepaid software maintenance costs

162,507

156,027

Prepaid expenses and deposits

75,519

74,361

Prepaid income taxes

39,798

16,837

Deferred income taxes

139,144

152,156

   

Total current assets

3,765,019

3,421,202

Software development costs, net

149,956

112,453

Property and equipment, net

312,821

434,645  

Goodwill

1,474,615

1,474,615

Other intangible assets, net

329,220

413,932

   

Total assets

$6,031,631

5,856,847

   

Liabilities and Shareholders’ Equity

   

Current liabilities:

   

Accounts payable

$115,546

207,374

Dividends payable

1,334,452

Accrued salaries and other expenses

146,699

283,360

Deferred revenue

582,298

583,677

   

Total current liabilities

2,178,995

1,074,411

Deferred income taxes

261,024

335,663

   

Total liabilities

2,440,019

1,410,074

   

Shareholders’ equity:

   

Common stock, $.001 par value; 100,000,000 shares authorized, 66,951,010 shares issued, and 66,722,590 shares outstanding at December 31, 2009; 20,000,000 shares authorized, 6,738,261 shares issued and 6,713,919 shares outstanding at December 31, 2008

66,951

6,738

Paid-in capital

1,964,221

2,020,206

Retained earnings

1,588,632

2,455,764

Treasury stock at cost, 27,342 and 24,342 shares at March 31, 2009 and December 31, 2008, respectively

(28,192)

(35,935)

   

Total shareholders’ equity

3,591,612

4,446,773

   

Total liabilities and shareholders’ equity

$6,031,631

5,856,847

   
ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
For the years ended December 31, 2009 and 2008

2009

2008

Revenue

$8,649,199

8,869,169

Cost of revenue

3,561,780

3,476,670

   

Gross margin

5,087,419

5,392,449

Marketing, general and administrative expenses

3,294,187

3,705,542

   

Operating income

1,793,232

1,686,957

Other income (expense), net

5,007

(30,701)

   

Income before income taxes

1,798,239

1,656,256

Income tax expense

603,437

592,466

   

Net income

1,194,802

1,063,790

   

Earnings per share – basic and diluted

$0.018

0.016

   

Weighted average shares outstanding – basic and diluted

66,869,669

67,857,940

   
ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the years ended December 31, 2009 and 2008

2009

2008

Cash flows from operating activities:

   

Net income

$1,194,802

1,063,790

Adjustments to reconcile net income to net cash flows from operating activities:

   

Depreciation

257,340

284,097

Amortization of software development costs

81,784

81,785

Amortization of other intangible assets

84,712

84,712

Deferred income taxes

(61,627)

(65,294)

Purchases of trading securities

(99,922)

(264,182)

Proceeds from sales of trading securities

327,193

258,457

Net realized (gain) loss on sales of securities

(34,546)

952

Net unrealized loss on trading securities

39,996

64,203

Increase (decrease) in cash arising from changes in assets and liabilities, net of effects of acquisition:

   

Accounts receivable

65,040

106,146

Prepaid software maintenance costs

(6,480)

27,591

Prepaid expenses and deposits

(1,158)

(5,431)

Prepaid income taxes

(22,961)

(16,8370

Accounts payable

(91,828)

(4,364)

Accrued salaries and other expenses

(136,661)

10,150

Income taxes payable

---

(136,947)

Deferred revenue

(1,379)

(61,416)

Net cash flows from operating activities

1,594,305

1,427,412

   

Cash flows from investing activities:

   

Purchases of property and equipment

(135,516)

(285,084)

Software Development Cost

(119,287)

---

Net cash flows from investing activities

(254,803)

(285,084)

   
Cash flows from financing activities:
   
Purchase of treasury shares
(48,285)
(151,066)
Dividends paid
(667,226)
(940,704)
Net cash flows from financing activities
(715,511)
(1,091,770)
   
Net increase in cash and cash equivalents
623,991
50,558
Cash and cash equivalents, beginning of year
2,090,005
2,039,447
Cash and cash equivalents, end of year
2,713,996
2,090,005
   
Supplemental disclosures of cash flow items:
   
Income taxes paid
688,024
810,279
Non cash transactions:
   
Retirement of shares
56,028
190,131
Dividends declared in 2009 and payable in 2010

1,334,452

---

 

About Advant-e
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].

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 or 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.