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.