Advant-e Corporation Announces Third Quarter 2003 Results Company
Reports 39% Increase in Revenue and 18% Pre-Tax Profitability
DAYTON, Ohio, Nov. 4 /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 September
30, 2003. For the third quarter of 2003 the Company reported
revenues of $759,865, a 39% increase over revenues of $546,410 in
the third quarter in 2002 and a 6% increase over revenues of
$715,108 in the second 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.
Operating expenses in the quarter were $624,238 compared to
$608,586 in the same period in 2002 and $717,135 in the second
quarter of 2003. Net profit for the quarter was $108,142, or $.02
per share, compared to a net loss of $63,376, or ($.01) per share
for the same period in 2002 and a net loss of $5,979, or ($.00) per
share for the second quarter of 2003. For the nine months ending
September 30, 2003, revenue was $2,124,351, a 47% increase over
revenue of $1,441,097 for the same period in 2002. Net profit for
the first nine months of 2003 was $32,339 compared to a net loss of
$146,233 in the first nine months of 2002. Jason K. Wadzinski,
President and CEO of Advant-e, stated, "We are pleased with our
third quarter results as our primary goal for the quarter was
improving cash flow and achieving profitability. Going forward, we
are focusing on our sales and marketing activities and will be
expanding our product and service offerings to increase our ability
to further assist our customers with connecting, integrating,
managing, and expanding their eBusiness trading communities."
During the third quarter, the Company paid accrued interest to
holders of its convertible debt in the amount of $129,094 and
retired $25,000 of the convertible notes. An additional $24,187 of
accrued interest was paid in early October. 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 STATEMENTS OF OPERATIONS (UNAUDITED) Three
Months Ended Nine Months Ended September 30, September 30, 2003
2002 2003 2002 ---- ---- ---- ---- REVENUES Internet products and
services $722,411 478,361 1,987,852 1,205,877 Software and license
fees 37,454 68,049 136,499 235,220 -------- ------- ---------
--------- Total revenues 759,865 546,410 2,124,351 1,441,097
-------- ------- --------- --------- OPERATING EXPENSES Production
27,191 38,658 86,910 107,543 Salaries and benefits 338,667 281,346
1,108,673 757,057 General and administrative 136,502 132,089
486,032 325,533 Depreciation 13,814 5,889 36,660 20,691
Amortization of software development costs 75,061 53,282 214,942
111,594 Interest 33,003 97,322 139,365 256,302 -------- -------
-------- -------- Total operating expenses 624,238 608,586
2,072,582 1,578,720 ------- ------- --------- --------- INCOME
(LOSS) BEFORE TAXES 135,627 ( 62,176) 51,769 ( 137,623) INCOME
TAXES 27,485 1,200 19,430 8,610 ------- ------- ------ ------- NET
INCOME (LOSS) $ 108,142 ( 63,376) 32,339 ( 146,233) ======= ======
====== ======= EARNINGS (LOSS) PER SHARE Basic $ 0.02 (0.01) 0.01
(0.03) ==== ==== ==== ==== Diluted 0.02 (0.01) 0.01 (0.03) ====
==== ==== ==== AVERAGE SHARES OUTSTANDING Basic 5,661,002 5,661,002
5,661,002 5,661,002 ========= ========= ========= ========= Diluted
5,908,532 5,661,002 5,745,797 5,661,002 ========= =========
========= ========= ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS September 30, December 31, 2003 2002
---- ---- (Unaudited) ASSETS CURRENT ASSETS Cash and cash
equivalents $ 184,256 98,740 Accounts receivable, net 194,855
157,655 Prepaid expenses 20,362 46,817 Deferred income taxes 21,170
40,600 --------- --------- Total current assets 420,643 343,812
--------- --------- SOFTWARE DEVELOPMENT COSTS, net of accumulated
amortization of $509,708 at September 30, 2003 and $294,767 at
December 31, 2002 530,771 634,956 PROPERTY AND EQUIPMENT, net of
accumulated depreciation of $140,120 at September 30, 2003 and
$103,460 at December 31, 2002 163,110 171,589 OTHER ASSETS Deferred
income taxes 79,046 79,046 Deposits 6,583 6,583 --------- ---------
85,629 85,629 --------- --------- Total assets $ 1,200,153
1,235,986 ========= ========= LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES Accounts payable $ 59,963 158,320 Accrued
interest 74,206 118,025 Other accrued expenses 93,255 49,600
Deferred revenue 114,236 93,893 Bank note payable 8,521 14,097
Convertible subordinated notes payable, net 750,000 729,621 8%
demand notes payable to shareholder 45,000 45,000 ---------
--------- Total current liabilities 1,145,181 1,208,556 ---------
--------- LONG-TERM LIABILITIES Bank note payable, less current
maturities - 4,797 --------- --------- Total liabilities 1,145,181
1,213,353 --------- --------- SHAREHOLDERS' EQUITY Common stock,
$.001 par value; 20,000,000 shares authorized; 5,661,002 issued and
outstanding 5,661 5,661 Paid-in capital 850,459 850,459 Accumulated
deficit (801,148) (833,487) --------- --------- Total shareholders'
equity 54,972 22,633 --------- --------- Total liabilities and
shareholders' equity $ 1,200,153 1,235,986 ========= =========
ADVANT-E CORPORATION AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH
FLOWS (UNAUDITED) Nine Months Ended September 30, 2003 2002 ----
---- CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $
32,339 (146,233) Adjustments to reconcile net income (loss) to net
cash provided by operating activities: Depreciation 36,660 20,691
Amortization of software development costs 214,942 111,594 Deferred
income taxes 19,430 8,610 Amortization of note discount resulting
from valuation of warrants and beneficial conversion features
45,379 180,680 Increase (decrease) in cash arising from changes in
assets and liabilities: Accounts receivable (37,200) (73,682)
Prepaid expenses 26,455 18,256 Accounts payable (98,357) 12,415
Accrued interest (43,819) 62,708 Other accrued expenses 43,655
43,982 Deferred revenue 20,343 (15,677) Deposits - ( 6,584) -------
------- Net cash provided by operating activities 259,827 216,760
------- ------- CASH FLOWS FROM INVESTING ACTIVITIES Purchases of
equipment ( 28,181) ( 69,742) Software development costs (110,757)
(276,901) ------- ------- Net cash used in investing activities
(138,938) (346,643) ------- ------- CASH FLOWS FROM FINANCING
ACTIVITIES Proceeds from convertible subordinated notes - 250,000
Payments on convertible subordinated notes ( 25,000) - Payments on
bank loans ( 10,373) (58,115) ------ -------- Net cash provided by
(used in) financing activities ( 35,373) 191,885 ------ ------- NET
INCREASE IN CASH AND CASH EQUIVALENTS 85,516 62,002 Cash and cash
equivalents, beginning of period 98,740 180,679 ------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 184,256 242,681 =======
======== SUPPLEMENTAL DISCLOSURE OF CASH FLOW ITEMS Interest paid $
137,804 12,759 Non-cash transactions Fair value of warrants issued
with convertible subordinated notes - 27,500 Value of beneficial
conversion feature of convertible subordinated notes - 52,000 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 in 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. 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/
http://www.edictsystems.com/
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