Advant-e Corporation Announces Third Quarter 2004 Results Company
Reports 21% Increase in Revenue over 2003; Fifth consecutive
profitable quarter DAYTON, Ohio, Oct. 28 /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
quarter ending September 30, 2004. For the third quarter of 2004
the Company reported revenues of $920,038, a 21% increase over
revenues of $759,865 in the third 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 $120,628, or $.02 per
share, compared to $108,142, or $.02 per share for the same period
in 2003. The third quarter of 2004 marks the fifth consecutive
profitable quarter for Advant-e Corporation. For the nine months
ending September 30, 2004 the Company reported revenues of
$2,610,655, a 23% increase over revenues of $2,124,351 in the same
period in 2003. Net income for the period in 2004 was $342,212, or
$.05 per share, compared to $32,339, or $.01 per share in the 2003
period. Jason K. Wadzinski, President and CEO of Advant-e, stated,
"I am pleased to report that we have achieved 22% pre-tax
profitability and record revenues in the third quarter of 2004.
Financially, we are stronger than we have ever been due to the fact
that we are debt free and are adding to our cash balance. Our
efforts to expand our solutions outside of the retail supply chain
market are beginning to gain traction. I believe that our recurring
revenue model, the exceptional value proposition we offer our
targeted customers, and the recent promotion of Mike Bevis to
President of Edict Systems will lead to continued growth for our
company." 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 Nine Months Ended September 30,
September 30, 2004 2003 2004 2003 Revenue $920,038 759,865
2,610,655 2,124,351 Cost of revenue 309,224 268,342 913,705 877,506
Gross margin 610,814 491,523 1,696,950 1,246,845 Marketing, general
and administrative expenses 408,186 322,893 1,122,158 1,055,711
Operating income 202,628 168,630 574,792 191,134 Interest - 33,003
2,180 139,365 Income before taxes 202,628 135,627 572,612 51,769
Income taxes 82,000 27,485 230,400 19,430 Net income $120,628
108,142 342,212 32,339 Basic earnings per common share $0.02 0.02
0.05 0.01 Diluted earnings per common share $0.02 0.02 0.05 0.01
Weighted average common shares outstanding 6,244,917 5,661,002
6,244,917 5,661,002 Weighted average common shares outstanding,
assuming dilution 6,634,107 5,908,532 6, 628,571 5,745,797 ADVANT-E
CORPORATION AND SUBSIDIARY CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited) September 30, December 31, 2004 2003 Assets Current
Assets Cash and cash equivalents $698,556 216,448 Accounts
receivable, net 245,310 215,895 Prepaid expenses and deposit 23,026
16,187 Deferred income taxes 57,000 266,400 Total current assets
1,023,892 714,930 Software development costs, net 347,439 481,678
Property and equipment, net 282,646 168,687 Total assets $1,653,977
$1,365,295 Liabilities and Shareholders' Equity Current liabilities
Accounts payable $32,396 72,172 Accrued salaries and other expenses
130,588 71,867 Deferred revenue 107,760 90,931 Notes payable -
94,965 Total current liabilities 270,744 329,935 Long-term
liabilities Deferred income taxes 177,000 156,000 Total liabilities
447,744 485,935 Shareholders' equity Common stock, $.001 par value;
20,000,000 shares authorized; 6,244,917 outstanding 6,245 6,245
Paid-in capital 1,476,088 1,491,427 Accumulated deficit (276,100)
(618,312) Total shareholders' equity 1,206,233 879,360 Total
liabilities and shareholders' equity $1,653,977 1,365,295 ADVANT-E
CORPORATION AND SUBSIDIARY CONSOLIDATED CONDENSED STATEMENTS OF
CASH FLOWS (Unaudited) Nine Months Ended September 30, 2004 2003
Cash flows from operating activities Net income $342,212 32,339
Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation 57,238 36,660 Amortization of
software development costs 250,828 214,942 Deferred income taxes
230,400 19,430 Amortization of note discount resulting from
valuation of warrants and beneficial conversion features - 45,379
Increase (decrease) in cash arising from changes in assets and
liabilities: Accounts receivable (29,415) (37,200) Prepaid expenses
(6,839) 26,455 Accounts payable (39,776) (98,357) Accrued salaries,
interest and other expenses 58,721 (164) Deferred revenue 16,829
20,343 Net cash provided by operating activities 880,198 259,827
Cash flows from investing activities Purchases of equipment
(171,197) (28,181) Software development costs (116,589) (110,757)
Net cash used in investing activities (287,786) (138,938) Cash
flows from financing activities Payments on notes (94,965) (35,373)
Payments of direct costs of securities registration (15,339) - Net
cash used in financing activities (110,304) (35,373) Net increase
in cash and cash equivalents 482,108 85,516 Cash and cash
equivalents, beginning of period 216,448 98,740 Cash and cash
equivalents, end of period $698,556 184,256 Supplemental
disclosures of cash flow information Interest paid $3,014 137,804
DATASOURCE: Advant-e Corporation CONTACT: Investor Relations of
Advant-e Corporation, +1-937-429-4288, or Web site:
http://www.advant-e.com/
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