DAYTON, Ohio, May 10 /PRNewswire-FirstCall/ -- Advant-e Corporation (OTC Bulletin Board: ADVC - News), a provider of Internet-based business-to-business electronic commerce services, today announced financial and operating results for the quarter ending March 31, 2005.
For the first quarter of 2005 the Company reported revenues of $1,039,488, a 24% increase over revenues of $838,635 in the first quarter of 2004, and a 5% increase over revenues of $990,077 in the fourth quarter of 2004. The increase in revenue was the result of continued growth and market acceptance of the Company's internet-based electronic commerce subscription services.
Net income for the quarter was $105,109, or $.02 per share, compared to $114,241, or $.02 per share for the same period in 2004, and $127,111 for the fourth quarter of 2004. The decrease in net income was primarily the result of increased personnel costs. The first quarter of 2005 marks the seventh consecutive profitable quarter for Advant-e Corporation.
Jason K. Wadzinski, President and CEO of Advant-e, stated, "The first quarter of 2005 is significant for us in that this is the first quarter where we've surpassed the million dollar mark in revenue. This was accomplished with strong growth for our web-EDI service in the grocery industry of 15% relative to the first quarter of 2004, but also with the 279% growth in non- grocery industries, which now accounts for 10% of our total revenue. Our balance sheet is gaining strength and we are looking forward to continuing our success in 2005 and beyond."
ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
For the three months ended March 31,
2005 2004
----- -----
Revenue $1,039,488 838,635
Cost of revenue 389,044 294,217
Gross margin 650,444 544,418
Marketing, general and administrative expenses 475,335 352,597
Operating income 175,109 191,821
Interest --- 2,180
Income before taxes 175,109 189,641
Income tax expense 70,000 75,400
Net income $105,109 114,241
Basic earnings per common share $0.02 0.02
Diluted earnings per common share $0.02 0.02
Weighted average common shares outstanding 6,268,250 6,244,917
Weighted average common shares outstanding,
assuming dilution 6,268,250 6,542,186
ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited)
At March 31, 2005 and December 31, 2004
March 31, December 31,
2005 2004
Assets
Current Assets
Cash and cash equivalents $1,230,429 944,892
Accounts receivable, net 295,086 290,394
Prepaid expenses and deposit 31,033 26,420
Total current assets 1,556,548 1,261,706
Software development costs, net
248,725 298,809
Property and equipment, net 265,448 271,604
Total assets $2,070,721 $1,832,119
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable $58,008 39,681
Accrued salaries and other expenses 150,263 99,810
Income taxes payable 98,000 26,000
Deferred revenue 103,251 142,788
Total current liabilities 409,522 308,279
Long-term liabilities
Deferred income taxes 163,000 191,000
Total liabilities 572,522 499,279
Shareholders' equity
Common stock, $.001 par value; 20,000,000
shares authorized; 6,294,917 outstanding
at March 31, 2005 and 6,244,917
outstanding at December 31, 2004 6,295 6,245
Paid-in capital 1,535,784 1,475,584
Retained earnings deficit (43,880) (148,989)
Total shareholders' equity 1,498,199 1,332,840
Total liabilities and shareholders'
equity $2,070,721 1,832,119
ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
For the three months ended March 31, 2005 and 2004
2005 2004
Cash flows from operating activities:
Net income $105,109 114,241
Adjustments to reconcile net income to net
cash flows from operating activities:
Depreciation 23,383 12,816
Amortization of software development costs 66,397 80,252
Deferred income taxes (28,000) 75,400
Increase (decrease) in cash arising from changes
in assets and liabilities:
Accounts receivable (4,692) (3,408)
Prepaid expenses (4,613) 2,046
Accounts payable 18,327 (36,531)
Accrued salaries, interest and other expenses 50,453 48,256
Income taxes payable 72,000 ---
Deferred revenue (39,537) (26,890)
Net cash flows from operating activities 258,827 266,182
Cash flows from investing activities:
Purchases of equipment (17,227) (5,872)
Software development costs (16,313) (43,359)
Net cash flows from investing activities (33,540) (49,231)
Cash flows from financing activities:
Issuance of common stock 60,250 ---
Payments on notes --- (94,965)
Payments of direct costs of securities registration --- (2,040)
Net cash flows from financing activities 60,250 (97,005)
Net increase in cash and cash equivalents 285,537 119,946
Cash and cash equivalents, beginning of period 944,892 216,448
Cash and cash equivalents, end of period $1,230,429 336,394
Supplemental disclosures of cash flow items:
Interest paid $--- 3,014
Additional information about Advant-e Corporation can be found at www.Advant-e.com and www.edictsystems.com or by contacting investor relations at (937) 429-4288. The company's email is info@edictsystems.com.