Advantex Updates Business Outlook
21 June 2014 - 6:01AM
Marketwired Canada
Advantex Marketing International Inc. ("Advantex") (CSE:ADX), a leading
specialist in the marketing services industry, is providing an update on
short-term transition matters affecting its business.
The recently announced agreement with The Toronto Dominion Bank ("TD") means
that rewards are a fully integrated feature of the TD Aeroplan suite of credit
cards, automatically awarding credit card holders with bonus Aeroplan Miles on
completed purchases at over 1,000 independent merchants participating in the
Advantex programs. Through Advantex, participating merchants will have the
opportunity to offer benefits to holders of both TD Aeroplan and CIBC Aeroplan
credit cardholders.
"More than before, being a part of the Advantex programs will provide an
affordable tool for independent merchants to market their business to a larger
portfolio of Canadian credit cardholders. The expected growth in transactions at
participating merchants provides a significant and sustainable opportunity for
growth in revenues and profitability of Advantex," said Kelly Ambrose, Advantex
President and Chief Executive Officer.
Prior to the launch of the TD Aeroplan program, scheduled for later this summer,
Advantex will experience a period during which its revenues and liquidity will
be impacted by the transition of certain credit cardholders moving from the CIBC
Aeroplan program to TD Aeroplan. Once Advantex launches the TD Aeroplan program,
it will be in a position to recoup the temporary shortfall in revenues and
liquidity.
Advantex has the support of its financial partners, employees and CIBC. Holders
of its outstanding non-convertible debentures have agreed to defer an interest
payment due June 15. This interest payment will now be made in two installments
in October and November, 2014. They have also agreed to amend and re-set certain
financial covenants. Our employees have voluntarily taken a deferral of their
remuneration from mid-June to end of August. The deferred amounts will
subsequently be paid over a three month period. CIBC, our partner of about two
decades, and Accord Financial are also supporting us during this transition.
"I want to thank all our stakeholders for their support. We expect to repay
their loyalty and patience with steadily improving financial performance. We
also expect to share other positive developments respecting our on-going
partnerships. Loyalty Marketing is a multi-billion dollars business in North
America and Advantex, with its proprietary technology and reputable partners, is
well positioned to gain a wider share of this market," said Mr. Ambrose.
About Advantex Marketing International Inc.
Advantex is a specialist in the marketing services industry. Advantex partners
with CIBC, Aimia and TD. On a combined basis, Advantex has contractual marketing
access to about five million Canadian consumers with above-average personal and
household income. Advantex's merchant partner base currently consists of over
1,000 merchants participating in the program it operates for CIBC and over 600
merchants participating in the program it operates for Aimia. Participating
merchants operate in several business segments: restaurants; golf courses;
independent inns, resorts and selected hotels; spas; retailers of men's and
ladies fashion, footwear and accessories; retailers of sporting goods; florists
and garden centres; book and newspaper stores; health and beauty centres; dry
cleaners; gift stores; home decor; automotive dealers, service centers; and tire
dealerships many of which are leaders in their respective business segment.
Advantex is traded on the Canadian Securities Exchange under the symbol "ADX".
For additional information on Advantex, please visit www.advantex.com.
Forward-Looking Information
This Press Release contains certain "forward-looking information". All
information, other than information comprised of historical fact, that addresses
activities, events or developments that Advantex believes, expects or
anticipates will or may occur in the future constitutes forward-looking
information. Forward-looking information is typically identified by words such
as: anticipate, believe, expect, goal, intend, plan, will, may, should, could
and other similar expressions. Such forward-looking information relates to,
without limitation, information regarding Advantex's; opportunity for growth in
revenues and profitability, the period during which its revenues and liquidity
will be impacted, launch date for the TD Aeroplan program, the period during
which interest is deferred, the period during which remuneration is deferred and
during which it will be paid back and positive developments respecting on-going
partnerships; and other information regarding Advantex's financial and business
prospects and financial outlook is forward-looking information.
Forward-looking information reflects the current expectations or beliefs of
Advantex based on information currently available to Advantex.
Forward-looking information is subject to a number of risks, uncertainties and
assumptions that may cause the actual results of Advantex to differ materially
from those discussed in the forward-looking information, and even if such actual
results are realized or substantially realized, there can be no assurance that
they will have the expected consequences to, or effects on Advantex. Factors
that could cause actual results or events to differ materially from current
expectations include those listed under "General Risks and Uncertainties" and
"Economic Dependence" in Advantex's Management's Discussion and Analysis for the
three and nine months ended March 31, 2014.
All forward-looking information speaks only as of the date on which it is made
and, except as may be required by applicable securities laws, Advantex disclaims
any intent or obligation to update any forward-looking information, whether as a
result of new information, future events or results or otherwise. Although
Advantex believes that the assumptions inherent in the forward-looking
information are reasonable, forward-looking information is not a guarantee of
future performance and accordingly undue reliance should not be put on such
information due to the inherent uncertainty therein.
FOR FURTHER INFORMATION PLEASE CONTACT:
Advantex Marketing International Inc.
Mukesh Sabharwal
Vice-President and Chief Financial Officer
905-470-9558 ext. 249
Mukesh.sabharwal@advantex.com
www.advantex.com
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