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Advant-e Corporation Announces Record Revenue and Net Income for 2007 DAYTON, Ohio, March 6 /PRNewswire-FirstCall/ -- Advant-e Corporation
(OTC Bulletin Board: AVEE - News), a provider of Internet-based Electronic Data
Interchange services and electronic document management software and services
today announced financial and operating results for the year ending December
31, 2007. The Company reported record revenues for 2007 of $7,162,329, a 33% increase over revenues of $5,403,632 for 2006. The increase is attributable to continued growth of the Company's internet-based EDI services and revenue from products and services sold by Merkur Group, Inc. which was acquired on July 2, 2007. Net income for 2007 was a record $1,022,679 or $.15 per share compared to $858,670 or $.13 per share in 2006. Highlights of 2007 financial and operating results include: -- Revenue Increased for the seventh consecutive year -- Net Income Exceeded $1 million for first time and increased by 19% -- Merkur Group Inc. Acquisition -- On July 2, 2007 the Company acquired Merkur Group Inc. which contributed $1,086,724 to revenue in 2007 and net income of $58,300 before deducting non-cash charges pertaining to amortization of intangible assets of $27,108. -- Continued Automotive related Web EDI Revenue Acceleration -- Automotive and manufacturing Web EDI revenue increased by 25% and comprised 8% of Edict Systems revenue in 2007 compared to 7% in 2006. Commenting on the year-end results, Mr. Jason K. Wadzinski, CEO of Advant- e stated, "In 2007 we continued executing on our strategy of expanding the industries we support while enhancing our service offerings. The acquisition of Merkur Group has contributed to our overall performance by adding over $1 million in revenue in 2007 while contributing to the bottom line. Our cash flow is strong and we are looking forward to continuing our progress going forward." About Advant-e Corporation Advant-e, via its wholly owned subsidiaries Edict Systems, Inc. and Merkur Group, Inc is a provider of internet-based Electronic Data Interchange (EDI) and electronic document management software and services. The Company helps businesses automate manual, paper-intensive processes via expanded use of EDI or by integrating directly with ERP/MRP systems. Additional information about Advant-e Corporation can be found at www.Advant-e.com, www.EdictSystems.com, and www.MerkurGroup.com, or by contacting investor relations at (937) 429-4288. The company's email is info@edictsystems.com .
ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
At December 31, 2007 and 2006
2007 2006
Assets
Current assets:
Cash and cash equivalents $2,039,447 2,209,782
Short-term investments 292,151 274,434
Accounts receivable, net 805,241 477,639
Prepaid software maintenance costs 183,618 ---
Prepaid expenses and deposits 68,930 28,339
Deferred income taxes 40,057 ---
Total current assets 3,429,444 2,990,194
Software development costs, net 194,238 247,621
Property and equipment, net 433,658 386,697
Goodwill 1,450,368 ---
Other intangible assets, net 498,644 ---
Total assets $6,006,352 3,624,512
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $211,738 66,936
Accrued salaries and other expenses 273,210 157,802
Income taxes payable 112,700 109,642
Deferred revenue 645,093 112,846
Deferred income taxes --- 53,119
Total current liabilities 1,242,741 500,345
Deferred income taxes 288,858 165,784
Total liabilities 1,531,599 666,129
Shareholders' equity:
Common stock, $.001 par value; 20,000,000
shares authorized; 6,875,015 shares issued
and 6,815,015 shares outstanding at December
31, 2007 and 6,478,714 outstanding at
December 31, 2006 6,875 6,478
Paid-in capital 2,210,200 1,641,906
Retained earnings 2,332,678 1,309,999
Treasury stock at cost, 60,000 shares at
December 31, 2007 (75,000) ---
Total shareholders' equity 4,474,753 2,958,383
Total liabilities and shareholders'
equity $6,006,352 3,624,512
ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
For the years ended December 31, 2007 and 2006
2007 2006
Revenue $7,162,329 5,403,632
Cost of revenue 2,498,850 1,677,937
Gross margin 4,663,479 3,725,695
Marketing, general and administrative expenses 3,147,344 2,453,883
Operating income 1,516,135 1,271,812
Other income, net 77,431 87,862
Income before taxes 1,593,566 1,359,674
Income tax expense 570,887 501,004
Net income $1,022,679 858,670
Basic earnings per share $0.15 0.13
Diluted earnings per hare $0.15 0.13
Weighted average shares outstanding 6,655,808 6,408,516
Weighted average shares outstanding,
assuming dilution 6,655,808 6,434,615
ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the years ended December 31, 2007 and 2006
2007 2006
Cash flows from operating activities:
Net income $1,022,679 858,670
Adjustments to reconcile net income to net
cash flows from operating activities:
Depreciation 228,614 153,113
Amortization of software development costs 68,746 124,498
Amortization of other intangible assets 42,356 ---
Loss on disposal of assets --- 41,922
Deferred income taxes (69,732) 60,703
Purchases of trading securities (187,218) (31,541)
Proceeds from sale of trading securities 183,694 28,393
Net realized gain on sales of securities (2,438) (9,701)
Net unrealized gain on trading securities (11,755) (27,218)
Increase (decrease) in cash arising from
changes in assets and liabilities:
Accounts receivable (12,192) (126,157)
Prepaid software maintenance costs (11,306) ---
Prepaid expenses and deposits (2,182) (3,211)
Accounts payable (41,084) 22,098
Accrued salaries and other expenses 49,712 42,292
Income taxes payable 833 (266,010)
Deferred revenue 61,721 36,673
Net cash flows from operating activities 1,320,448 904,524
Cash flows from investing activities:
Purchases of available-for-sale securities --- (107,966)
Proceeds from sale of available-for-sale
securities --- 90,086
Purchases of property and equipment (242,125) (311,654)
Software development costs (15,363) (219,018)
Purchase of Merkur Group, Inc. (998,295) ---
Net cash flows from investing
activities (1,255,783) (548,552)
Cash flows from financing activities:
Net payments on bank line of credit (160,000) ---
Issuance of common stock --- 90,375
Purchase of treasury shares (75,000) ---
Net cash flows from financing activities (235,000) 90,375
Net increase (decrease) in cash and cash
equivalents (170,335) 446,347
Cash and cash equivalents, beginning of year 2,209,782 1,763,435
Cash and cash equivalents, end of year $2,039,447 2,209,782
Supplemental disclosures of cash flow items:
Income taxes paid $637,561 706,311
Non cash transactions
Issuance of common shares in connection with
purchase of Merkur Group, Inc. 568,692 ---
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 of 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. Source: Advant-e Corporation
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