Advant-e Corporation Announces 2004 Financial Results, Record Revenue and Earnings

Advant-e Corporation Announces 2004 Financial Results, Record Revenue and Earnings Company Reports 22% Increase in Revenue, 118% Increase in Net Income over Prior Year DAYTON, Ohio, Feb. 15 /PRNewswire-FirstCall/ -- Advant-e Corporation (OTC:AVEE) (BULLETIN BOARD: AVEE) , a provider of Internet-based business-to-business electronic commerce services, today announced financial and operating results for the year ending December 31, 2004. For the period the Company reported revenues of $3,600,732 compared to $2,942,992 for the fiscal year ended 2003. The 22% increase in revenue is attributed to the continued expansion and market acceptance of the Company's Internet-based electronic commerce subscription services. Net income for 2004 was $469,323 or $.08 per share ($.07 per share fully diluted) compared to $215,175, or $.04 per share in 2003. For the fourth quarter of 2004 the Company reported revenue of $990,077 and net income of $127,111, or $.02 per share ($.01 per share fully diluted), compared to revenue of $818,641 and net income of $182,836, or $.03 per share, in the fourth quarter of 2003. The reduction in net income for the quarter is attributable to an income tax benefit in the fourth quarter of 2003 of $10,184, compared to an income tax expense of $97,000 for the fourth quarter of 2004. Income before taxes in the fourth quarter of 2004 increased by 30% over the same period in 2003. Commenting on the year-end results, Mr. Wadzinski, CEO of Advant-e stated, "2004 was another great year for us. We exceeded our goal of 20% pretax profitability and significantly improved our overall financial condition. While software revenue continued its expected decline, our internet-based revenue continued its growth by increasing 27% in 2004 and accounted for 97% of revenue. Our strategy of expanding the use of our solutions to markets outside of the grocery industry has shown early success with our recent win in the automotive manufacturing sector. I would like to thank the dedicated team at Edict Systems for their outstanding effort and delivering a record year." About Advant-e Corporation Advant-e, via its wholly owned and sole operating subsidiary Edict Systems, Inc., is a provider of Business-to-Business electronic commerce software and Internet-based applications specializing in Electronic Data Interchange (EDI) and XML-based solutions for recurring transactions. Advant-e specializes in horizontal transaction services via EnterpriseEC(R), an Internet-based Electronic Business Transaction Network, and within specific vertical industries via web-based solutions including http://www.groceryec.com/ , http://www.retailec.com/ , http://www.cpgsupplier.com/ , http://www.mfgec.com/ , and http://www.webedi.com/ . Additional information about Advant-e Corporation can be found at http://www.advant-e.com/ and http://www.edictsystems.com/ or by contacting investor relations at (937) 429-4288. The company's email is . ADVANT-E CORPORATION AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME Year Ended December 31, 2004 2003 Revenue $ 3,600,732 2,942,992 Cost of revenue 1,239,179 1,146,680 Gross Margin 2,361,553 1,796,312 Marketing, general and administrative expenses 1,562,621 1,383,489 Operating income 798,932 412,823 Interest 2,209 188,402 Income before taxes 796,723 224,421 Income taxes 327,400 9,246 Net income $ 469,323 215,175 Basic earnings per common share $ 0.08 0.04 Diluted earnings per common share $ 0.07 0.04 Weighted average common shares outstanding 6,244,917 5,702,751 Weighted average common shares outstanding, assuming dilution 6,587,285 5,794,365 ADVANT-E CORPORATION AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) Three Months Ended December 31, 2004 2003 Revenue $ 990,077 818,641 Cost of revenue 325,474 269,174 Gross margin 664,603 549,467 Marketing, general and administrative expenses 440,492 327,778 Operating income 224,111 221,689 Interest -- 49,037 Income before taxes 224,111 172,652 Income taxes (benefit) 97,000 (10,184) Net income $ 127,111 182,836 Basic earnings per common share $ 0.02 0.03 Diluted earnings per common share $ 0.01 0.03 Weighted average common shares outstanding 6,244,917 5,826,635 Weighted average common shares outstanding, assuming dilution 6,461,143 6,022,358 ADVANT-E CORPORATION AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS December 31, 2004 2003 Assets Current Assets Cash and cash equivalents $ 944,892 216,448 Accounts receivable, net 290,394 215,895 Prepaid expenses and deposit 26,420 16,187 Deferred income taxes -- 266,400 Total current assets 1,261,706 714,930 Software development costs, net 298,809 481,678 Property and equipment, net 271,604 168,687 Total assets $ 1,832,119 $ 1,365,295 Liabilities and Shareholders' Equity Current liabilities Accounts payable $ 39,681 72,172 Accrued salaries and other expenses 99,810 71,867 Income taxes payable 26,000 -- Deferred revenue 142,788 90,931 Notes payable -- 94,965 Total current liabilities 308,279 329,935 Long-term liabilities Deferred income taxes 191,000 156,000 Total liabilities 499,279 485,935 Shareholders' equity Common stock, $.001 par value; 20,000,000 shares authorized; 6,244,917 outstanding 6,245 6,245 Paid-in capital 1,475,584 1,491,427 Accumulated deficit (148,989) (618,312) Total shareholders' equity 1,332,840 879,360 Total liabilities and shareholders' equity $ 1,832,119 1,365,295 ADVANT-E CORPORATION AND SUBSIDIARY CONSOLIDATED STATEMETS OF CASH FLOWS Year Ended December 31, 2004 2003 Cash flows from operating activities Net income $469,323 215,175 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 80,637 51,517 Amortization of software development costs 332,430 290,852 Deferred income taxes 301,400 9,246 Amortization of note discount resulting from valuation of warrants and beneficial conversion features -- 70,129 Increase (decrease) in cash arising from changes in assets and liabilities: Accounts receivable (74,499) (58,240) Prepaid expenses (10,233) 37,213 Accounts payable (32,491) (86,148) Income taxes payable 26,000 -- Accrued salaries, interest and other expenses 28,776 21,433 Accrued interest (833) (94,151) Deferred revenue 51,857 (2,962) Net cash provided by operating activities 1,172,367 454,064 Cash flows from investing activities Purchases of equipment (183,554) (48,615) Software development costs (149,561) (137,574) Net cash used in investing activities (333,115) (186,189) Cash flows from financing activities Payments on notes (94,965) (138,929) Payments of direct costs of securities registration (15,843) (11,238) Net cash used in financing activities (110,808) (150,167) Net increase in cash and cash equivalents 728,444 117,708 Cash and cash equivalents, beginning of period 216,448 98,740 Cash and cash equivalents, end of period $944,892 216,448 Supplemental disclosures of cash flow information Interest paid $3,043 212,424 Non-cash transactions Conversion to common stock of convertible subordinated notes and related accrued interest -- 628,040 Fair value of warrants issued with convertible subordinated notes -- 24,750 The information in this news release includes certain forward looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements to the future financial performance of the company. Although the company believes that the expectations reflected on its forward looking statements are reasonable, it can give no assurance that such expectations or any or its forward looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development and acceptance, the impact of competitive services and pricing, or general economic risks and uncertainties. DATASOURCE: Advant-e Corporation CONTACT: Investor Relations of Advant-e Corporation , +1-937-429-4288, or Web site: http://www.advant-e.com/ http://www.edictsystems.com/ http://www.groceryec.com/ http://www.retailec.com/ http://www.cpgsupplier.com/ http://www.mfgec.com/ http://www.webedi.com/