Advant-e Corporation Announces
Financial Results for 2012 |
 |
Company Reports Record Revenue and Net Income; Revenue Increased 5%
and Net Income Increased 17% Compared to 2011 |
|
Beavercreek, Ohio, March 26, 2013 -- Advant-e Corporation (OTCQB: ADVC) today announced financial and operating results for the year ending December 31, 2012. 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 2012 of $10,106,048 compared to revenue of $9,588,535 in 2011, and reported net income for 2012 of $2,000,842, or $.030 per share, compared to $1,711,380, or $.026 per share, in 2011.
Consolidated revenue set a record, and increased by 5% over 2011. Revenue for Edict Systems, which grew for the twelfth 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 1% as Merkur continues to confront challenges in its targeted markets.
Consolidated net income set a record and increased by 17% over 2011. 2012 was the tenth consecutive year that the Company has reported a net profit. Net income increased from Edict Systems by 14% and from Merkur Group by 29%.
Mr. Jason K. Wadzinski, Chairman and CEO of Advant-e stated, “2012 was a good year for Advant-e Corporation. Although Merkur Group did not show revenue growth, Merkur did increase its contribution to net income. Edict continued to grow in its targeted markets, and contributed significantly to our profitability.”
“Our previously stated goal has been to achieve a minimum 20% pre-tax income. In 2012 and 2011 we reported pre-tax income of 30% and 27%. In 2013 we will be investing significantly in our infrastructure and our services. We expect to reach our 20% goal in 2013, but not to exceed it by as much as we did in the prior two years.”
”In a press release dated December 13, 2012, we stated that we are committed to the previously announced voluntary suspension of our public reporting obligations,” continued Mr. Wadzinski. “Since that time there have been no changes in the determining factors that this action would be in the best interests of the Company and our shareholders.”
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ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
|
For the years ended December 31, 2012 and 2011 |
| 2012 |
2011 |
| Revenue |
$10,106,048 |
9,588,535 |
| Cost of revenue |
3,960,341 |
3,778,885 |
| Gross Margin |
6,145,707 |
5,809,650 |
| Marketing, general and administrative expenses |
3,114,288 |
3,216,048 |
| Operating income |
3,031,419 |
2,593,602 |
| Other income, net |
2,233 |
2,530 |
| Income before income taxes |
3,033,652 |
2,596,132 |
| Income tax expense |
1,032,810 |
884,752 |
| Net income |
2,000,842 |
1,711,380 |
| Earnings per share -
basic and diluted |
$0.030 |
$0.026 |
Weighted average shares outstanding
basic and diluted |
66,287,278 |
66,722,590 |
| ------------------------------------------------------------------------------------------------------------------------------------------------- |
ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
|
December 31, 2012 and 2011 |
| 2012 |
2011 |
| Assets |
| Current assets |
| Cash and equivalent assets |
$2,709,857 |
3,459,402 |
| Accounts receivable, net |
890,704 |
784,239 |
| Prepaid software maintenance costs |
228,500 |
190,429 |
| Prepaid expenses and deposits |
80,283 |
107,871 |
| Prepaid income taxes |
13,826 |
1,910 |
| Deferred income taxes |
235,954 |
207,336 |
| Total current assets |
4,159,124 |
4,751,187 |
| Software development costs, net |
145,611 |
262,102 |
| Property and equipment, net |
310,026 |
171,199 |
| Goodwill |
1,474,615 |
1,474,615 |
| Other tangible assets, net |
88,082 |
159,796 |
| Total Assets |
$6,177,458 |
6,818,899 |
| ------------------------------------------------------------------------------------------------------------------------------------------------- |
| Liabilities and Shareholders' Equity |
2012 |
2011 |
| Current liabilities |
| Accounts payable |
$298,952 |
112,402 |
| Accrued salaries and other expenses |
165,556 |
205,334 |
| Deferred revenue |
892,482 |
748,828 |
| Total current liabilities |
1,359,990 |
1,066,564 |
| Deferred income taxes |
181,800 |
198,456 |
| Total Liabilities |
1,541,790 |
1,265,020 |
| ------------------------------------------------------------------------------------------------------------------------------------------------- |
| Shareholders' Equity |
2012 |
2011 |
| Common stock, $.001 par value; 100,000,000 shares authorized; 66,722,590 shares issued; 60,073,640 shares outstanding at December 31, 2012 and 66,722,590 shares outstanding at December 31, 2011 |
66,723 |
66,723 |
| Paid-in capital |
1,936,257 |
1,936,257 |
| Retained Earnings |
4,316,336 |
3,550,899 |
Treasury shares, at cost, 6,648,950 shares at
December 31, 2012 |
(1,683,648) |
----- |
| Total Shareholders' equity |
4,635,668 |
5,553,879 |
| Total liabilities and Shareholders' equity |
$6,177,458 |
6,818,899 |
| ------------------------------------------------------------------------------------------------------------------------------------------------- |
ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
For the years ended December 31, 2012 and 2011 |
| 2012 |
2011 |
| Cash flows from operating activities: |
| Net Income |
$2,000,842 |
1,711,380 |
| Adjustments to reconcile net income to net cash flows from operating activities: |
|
|
| Depreciation |
114,618 |
146,036 |
| Amortization of software development costs |
116,491 |
87,366 |
| Amortization of other intangible assets |
71,714 |
84,712 |
| Deferred income taxes |
(45,274) |
(99,718) |
| Increase (decrease) in cash arising from changes in assets and liabilities |
|
|
| Accounts receivable |
(106,465) |
(41,219) |
| Prepaid software maintenance costs |
(38,071) |
(16,416) |
| Prepaid expenses and deposits |
27,588 |
(8,637) |
| Prepaid income taxes |
(11,916) |
(1,910) |
| Accounts payable |
45,979 |
32,416 |
| Income taxes payable |
----- |
(33,619) |
| Accrued salaries and other expenses |
(36,778) |
25,023 |
| Deferred revenue |
143,654 |
75,018 |
| Net cash flows from operating activities |
2,282,577 |
1,961,435 |
| Cash flows from investing activities: |
|
|
| Purchases of property and equipment |
(113,069) |
(90,117) |
| Software development costs |
----- |
(40,636) |
| Net cash flows from investing activities |
(113,069) |
(90,117) |
| Cash flows from financing activities: |
|
|
| Purchase of treasury shares |
(1,683,648) |
----- |
| Dividends paid |
(1,235,405) |
(1,334,452) |
| Net cash flows from financing activities |
(2,919,053) |
(1,334,452) |
| Net increase (decrease) in cash and cash equivalents |
(749,545) |
496,230 |
| Cash and cash equivalents, beginning of year |
3,459,402 |
2,963,172 |
| Cash and cash equivalents, end of year |
2,709,857 |
3,459,402 |
| Supplemental disclosures of cash flow items: |
|
|
| Income taxes paid |
1,090,000 |
1,020,000 |
| Non-cash item: Purchases of property and equipment on account |
140,571 |
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