DAYTON, Ohio, Thursday February 16, 2006-- 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 year ending December 31, 2005.
In 2005 the Company reported record revenues of $4,462, 702 compared to $3,600,732 for 2004. The 24% increase in revenue is attributed to the continued expansion and market acceptance of the Company's Internet-based business-to-business electronic commerce subscription services. Net income for 2005 was a record $600,318 or $.09 per share compared to $469,323 or $.08 per share ($.07 per share fully diluted) in 2004.
For the fourth quarter of 2005 the Company reported revenue of $1,203,771 and net income of $209,994 or $.03 per share, compared to revenue of $990,077 and net income of $127,111 or $.02 per share ($.01 per share fully diluted) in the fourth quarter of 2004.
Highlights of 2005 financial and operating results include:
Commenting on the year-end results., Mr. Jason K. Wadzinski, CEO of Advant-e stated, "Our primary goal in 2005 was to achieve 20% pre-tax profit while growing revenue at an acceptable level. I would like to thank the dedicated Edict Systems team for exceeding this goal. Our secondary goal for 2005 was to diverisfy the markets we serve. Our entry into the Automotive supply chain with our Web EDI services for suppliers to large OEM's along with our suite of trading community ramping services is proving to be successful. We hope to continue to grow this segment of our business as well as expand into other industries."
"We are very excited about our future opportunities" continued Mr. Wadzinski. "Now that our financial base is solid, our top priority for the coming years is accelerated revenue growth through expansion of existing offerings, new products and services, and increased sales and marketing efforts. In support of this goal, we plan on increasing our investment in infrastructure, new product development, and sales and marketing related costs. While this will likely reduce our short-term profitability, we are confident that we can leverage our industry-leading position to bring new value-added services to our existing and new customers."
As a result, the Company's management offers the following guidance:
ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
Three Months Ended Year Ended
December 31, December 31,
2005 2004 2005 2004
Revenue $ 1,203,771 990,077 4,462,702 3,600,732
Cost of revenue 368,486 325,474 1,511,007 1,239,179
Gross margin 835,285 664,603 2,951,695 2,631,553
Marketing, general and
administrative expenses 539,793 440,492 2,010,911 1,562,621
Operating income 295,492 224,111 940,784 798,932
Other income (expense) 4,602 --- 9,734 (2,209)
Income before taxes 300,094 224,111 950,518 796,723
Income tax expense 90,100 97,000 350,200 327,400
Net income $ 209,994 127,111 600,318 469,323
Basic earnings per share $ 0.03 0.02 0.09 0.08
Diluted earnings per share $ 0.03 0.01 0.09 0.07
Weighted average shares
outstanding 6,403,174 6,244,917 6,325,218 6,244,917
Weighted average shares
outstanding, assuming
dilution 6,408,788 6,461,143 6,340,851 6,587,285
ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED CONDENSED BALANCE SHEETS
December 31, December 31,
2005 2004
(Unaudited)
Assets
Current Assets
Cash and cash equivalents $ 1,763,435 944,892
Short-term investments 225,902 ---
Accounts receivable, net 351,482 290,394
Prepaid expenses and deposit 25,128 26,420
Total current assets 2,365,947 1,261,706
Software development costs, net 160,656 298,809
Property and equipment, net 262,523 271,604
Total assets $ 2,789,126 1,832,119
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable $ 44,838 39,681
Accrued salaries and other expenses 115,510 99,810
Income taxes payable 375,652 26,000
Deferred income taxes 26,00 ---
Deferred revenue 76,173 142,788
Total current liabilities 638,173 308,279
Deferred income taxes 136,000 191,000
Total liabilities 774,173 499,279
Shareholders' equity
Common stock, $.001 par value; 20,000,000
shares authorized; 6,403,714 outstanding
at September 30, 2005 and 6,244,917
outstanding at December 31, 2004 6,403 6,245
Paid-in capital 1,551,606 1,475,584
Accumulated other comprehensive income 5,615 ---
Retained earnings (deficit) 451,329 (148,989)
Total shareholders' equity 2,014,953 1,332,840
Total liabilities and shareholders'
equity $ 2,789,126 1,832,119
ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
Year Ended
December 31,
2005 2004
Cash flows from operating activities:
Net income $ 600,318 469,323
Adjustments to reconcile net income to net
cash flows from operating activities:
Depreciation 110,721 80,637
Amortization of software development costs 217,780 332,430
Deferred income taxes (32,800) 301,400
Net realized losses on available
for-sale investments 2,222 ---
Increase (decrease) in cash arising from
changes in assets and liabilities:
Accounts receivable (61,087) (74,499)
Prepaid expenses (1,291) (10,233)
Accounts payable 5,157 (32,491)
Accrued salaries, interest and other
expenses 15,700 27,943
Income taxes payable 349,652 26,000
Deferred revenue (66,615) 51,857
Net cash flows from operating activities 1,142,339 1,172,367
Cash flows from investing activities:
Purchases of available-for-sale investments (253,877) ---
Proceeds from sale of available-for-sale
investments 35,168 ---
Purchases of equipment (101,640) (183,5547)
Software development costs (79,627) (149,561)
Net cash flows from investing activities (339,976) (333,115)
Cash flows from financing activities:
Issuance of common stock 91,500 ---
Payments on notes --- (94,965)
Payments of direct costs of securities
registration (15,320) (15,843)
Net cash flows from financing activities 76,180 (110,808)
Net increase in cash and cash equivalents 818,543 728,444
Cash and cash equivalents, beginning of period 944,892 216,448
Cash and cash equivalents, end of period $ 1,763,435 944,892
Supplemental disclosures of cash flow items:
Interest paid $ --- 3,042
Income taxes paid $ 33,348 ---
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.