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/
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