DAYTON, Ohio, August 3 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 quarter ending June 30, 2006.
For the second quarter of 2006 the Company reported revenues of $1,333,758, a 24% increase over revenues of $1,076,385 in the second quarter of 2005. The increase in revenue is attributed to continued strong demand in grocery and retail as well as growth in the automotive supply chain sector for the company's web EDI services.
Net income for the quarter was a record $230,855, or $.03 per share, a 92% increase over net income of $120,270, or $.02 per share for the same period in 2005.
"The second quarter of 2006 represents another record for Advant-e Corporation, both in revenue as well as net income, " said Jason K. Wadzinski, Chairman and Chief Executive Officer. "We continue to execute our plan of investing in the company's growth. Our capital spending on infastructure and new product development for the first six months of 2006 increased by 145% over 2005 and we are continuing to increase the Edict Systems staff in support of our growth initiatives. Our position in the grocery and retail sectors continues to be strong and our automotive supply chain activities have increased. Automotive-based revenue has more than doubled in the first six months of this year over last year. I would like to take this opportunity to thank our valued customers, the dedicated and hard-working Edict Systems team, and all our business partners for another excellent quarter."
For the six months ending June 30, 2006 the Company reported revenues of $2,595,927, a 23% increase over revenues of $2,115,873 in the same period in 2005. Net income for the period in 2006 was $398,561, or $.06 per share, compared to $225,379, or $.04 per share in the 2005 period.
ADVANT-E CORPORATION AND SUBSIDIARY CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2006 2005 2005 2004 Revenue $ 1,333,758 1,076,385 2,595,927 2,115,873 Cost of revenue 369,661 374,335 777,529 763,379 Gross margin 964,097 702,050 1,818,398 1,352,494 Marketing, general and administrative expenses 614,066 501,680 1,209,921 977,015 Operating income 350,031 200,370 640,866 375,479 Other income (expense) 15,414 --- 32,389 --- Income before taxes 365,445 200,370 640,866 375,479 Income tax expense 134,590 80,100 242,305 150,100 Net income $ 230,855 120,270 398,561 255,379 Basic earnings per share $ 0.03 0.02 0.06 0.04 Diluted earnings per share $ 0.03 0.02 0.06 0.04 Weighted average shares outstanding 6,403,174 6,294,917 6,403,174 6,281,657 Weighted average shares outstanding, assuming dilution 6,434,196 6,294,917 6,428,439 6,281,657 ADVANT-E CORPORATION AND SUBSIDIARY CONSOLIDATED CONDENSED BALANCE SHEETS June 30, December 31, 2006 2005 (Unaudited) Assets Current Assets Cash and cash equivalents $ 1,707,047 1,763,435 Short-term investments 244,303 255,902 Accounts receivable, net 432,485 351,482 Prepaid expenses and deposit 40,345 25,128 Total current assets 2,424,180 2,365,947 Software development costs, net 227,063 160,656 Property and equipment, net 338,578 262,563 Total assets $ 2,989,821 2,789,126 Liabilities and Shareholders' Equity Current liabilities Accounts payable $ 61,009 44,838 Accrued salaries and other expenses 167,971 115,510 Income taxes payable 15,819 375,652 Deferred income taxes 49,266 26,000 Deferred revenue 94,135 76,173 Total current liabilities 388,200 638,173 Deferred income taxes 180,845 136,000 Total liabilities 569,045 774,173 Shareholders' equity Common stock, $.001 par value; 20,000,000 shares authorized; 6,403,714 outstanding 6,403 6,403 Paid-in capital 1,551,606 1,551,606 Accumulated other comprehensive income 12,877 5,615 Retained earnings (deficit) 849,890 451,329 Total shareholders' equity 2,420,776 2,014,953 Total liabilities and shareholders' equity $ 2,989,821 2,789,126 ADVANT-E CORPORATION AND SUBSIDIARY CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) Six Months Ended June 30, 2006 2005 Cash flows from operating activities: Net income $ 398,561 225,379 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation 61,746 51,389 Amortization of software development costs 63,088 134,639 Loss on disposal of assests 24,221 --- Net realized gains on available-for-sale investments (9,005) --- Deferred income taxes 63,678 (32,000) Icrease(decrease) in cash arising from changes in assets and liabilites Accounts receivable (81,003) (12,722) Prepaid expenses (15,217) (6,290) Accounts payable 16,171 69,529 Accrued salaries, interest and other expenses 52,461 6,735 Income taxes payable (359,833) 148,100 Deferred revenue 17,962 58,628 Net cash flows from operating activities 232,830 526,131 Cash flows from investing activities: Purchases of available-for-sale investments (56,943) --- Proceeds from sale of available-for-sale investments 59,242 --- Purchases of equipment (154,468) (74,719) Software development costs (137,049) (44,309) Net cash flows from investing activities (298,219) (119,028) Cash flows from financing activities: Issuance of common stock --- 60,250 Net cash flows from financing activities --- 60,250 Net increase (decrease) in cash and cash equivalents (56,388) 467,353 Cash and cash equivalents, beginning of period 1,763,435 944,892 Cash and cash equivalents, end of period $ 1,707,047 1,412,245 Supplemental disclosures of cash flow items: Income taxes paid $ 559,000 ---
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.