Advant-e Corporation Announces First Quarter 2004 Results

Advant-e Corporation Announces First Quarter 2004 Results Company Reports 29% Increase in Revenue over Q1 2003; Net Income of $.02 per share vs. ($.01) DAYTON, Ohio, April 29 /PRNewswire-FirstCall/ -- Advant-e Corporation (BULLETIN BOARD: AVEE) , a provider of Internet-based business-to-business electronic commerce services, today announced financial and operating results for the quarter ending March 31, 2004. For the first quarter of 2004 the Company reported revenues of $838,635, a 29% increase over revenues of $649,378 in the first quarter of 2003. 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 $114,241, or $.02 per share, compared to a net loss of $69,824, or ($.01) per share for the same period in 2003. Jason K. Wadzinski, President and CEO of Advant-e, stated, "We set a goal last year of achieving 20% pre-tax profitability. We first achieved this goal in the fourth quarter of 2003 and I am pleased that we exceeded this goal again in the first quarter of 2004. In addition, over the past three quarters we eliminated our notes payable and significantly improved our balance sheet. I believe we are building a strong foundation allowing us to invest in enhancing our current offerings as well as focus on new industry initiatives." During the nine-month period ended on March 31, 2004 the Company eliminated all of its outstanding notes payable. Most of the holders of the Company's convertible subordinated notes converted principal and interest of $628,040 into 583,915 shares of the Company's common stock, and the Company paid in full the remaining notes payable and accrued interest totaling $424,609. Also during the nine-month period ended on March 31, 2004, the Company reported net income totaling $405,219 and net cash flows from operating activities totaling $579,983. As a result, at March 31, 2004 the Company's balance sheet reflects substantial improvement, most notably cash of $336,934, net working capital of $591,033, total shareholders' equity of $991,561, and notes payable of zero. 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 "vortals" including http://www.groceryec.com/ , http://www.retailec.com/ , http://www.cpgsupplier.com/ , http://www.logisticsec.com/ , and http://www.mfgec.com/ . In addition to Internet and web-based e-commerce solutions, Edict Systems also provides e-commerce integration and bar coding applications via its FORMULA_ONE(R) translation software and Bar Code Label Modules. 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 CONDENSED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended March 31, 2004 2003 ---- ---- Revenue $ 838,635 649,378 Cost of revenue 294,217 303,812 --------- --------- Gross margin 544,418 345,566 Marketing, general and administrative expenses 352,597 374,111 --------- --------- Operating income (loss) 191,821 ( 28,545) Interest 2,180 53,286 --------- --------- Income (loss) before taxes 189,641 ( 81,831) Income taxes (benefit) 75,400 ( 12,007) --------- -------- Net income (loss) $ 114,241 ( 69,824) ========= ======== Basic earnings (loss) per common share $ 0.02 (0.01) ==== ==== Diluted earnings (loss) per common share $ 0.02 (0.01) ==== ==== Weighted average common shares outstanding 6,244,917 5,661,002 ========= ========= Weighted average common shares outstanding, assuming dilution 6,542,186 5,661,002 ========= ========= ADVANT-E CORPORATION AND SUBSIDIARY CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) March 31, December 31, 2004 2003 ---- ---- Assets Current Assets Cash and cash equivalents $ 336,394 216,448 Accounts receivable, net 219,303 215,895 Prepaid expenses and deposit 14,141 16,187 Deferred income taxes 241,000 266,400 --------- --------- Total current assets 810,838 714,930 --------- --------- Software development costs, net 444,785 481,678 Property and equipment, net 161,743 168,687 --------- --------- Total assets $ 1,417,366 1,365,295 ========= ========= Liabilities and Shareholders' Equity Current liabilities Accounts payable $ 35,641 72,172 Accrued salaries and other expenses 120,123 71,867 Deferred revenue 64,041 90,931 Notes payable - 94,965 --------- --------- Total current liabilities 219,805 329,935 --------- --------- Long-term liabilities Deferred income taxes 206,000 156,000 --------- --------- Total liabilities 425,805 485,935 --------- --------- Shareholders' equity Common stock, $.001 par value; 20,000,000 shares authorized; 6,244,917 outstanding 6,245 6,245 Paid-in capital 1,489,387 1,491,427 Accumulated deficit (504,071) (618,312) --------- --------- Total shareholders' equity 991,561 879,360 --------- --------- Total liabilities and shareholders' equity $ 1,417,366 1,365,295 ========= ========= ADVANT-E CORPORATION AND SUBSIDIARY CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) Three Months Ended March 31, 2004 2003 ---- ---- Cash flows from operating activities Net income (loss) $ 114,241 ( 69,824) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation 12,816 9,336 Amortization of software development costs 80,252 68,264 Deferred income taxes (benefit) 75,400 ( 12,007) Amortization of note discount resulting from valuation of warrants and beneficial conversion features - 21,793 Increase (decrease) in cash arising from changes in assets and liabilities: Accounts receivable ( 3,408) 8,327 Prepaid expenses 2,046 ( 14,558) Accounts payable ( 36,531) 56,504 Accrued salaries, interest and other expenses 48,256 58,657 Deferred revenue ( 26,890) ( 17,983) ------- ------- Net cash provided by operating activities 266,182 108,509 ------- ------- Cash flows from investing activities Purchases of equipment ( 5,872) ( 13,940) Software development costs ( 43,359) ( 41,900) ------- ------- Net cash used in investing activities ( 49,231) ( 55,840) ------- ------- Cash flows from financing activities Payments on notes payable ( 94,965) ( 3,412) Payments of direct costs of securities offering ( 2,040) - ------- -------- Net cash used in financing activities ( 97,005) ( 3,412) ------- -------- Net increase in cash and cash equivalents 119,946 49,257 Cash and cash equivalents, beginning of period 216,448 98,740 ------- -------- Cash and cash equivalents, end of period $ 336,394 147,997 ======= ======== Supplemental disclosures of cash flow information Interest paid $ 3,014 4,115 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.groceryec.com/ http://www.retailec.com/ http://www.cpgsupplier.com/ http://www.logisticsec.com/ http://www.mfgec.com/