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Exhibit 99.1

 

LOGO

Thursday, November 8, 2012

Advant-e Corporation Announces Third Quarter 2012 Results

Quarterly Revenue Increased by 5% and Net Income Increased by 22%Compared to the Third Quarter of 2011

DAYTON, Ohio, November 8, 2012 — Advant-e Corporation (OTCQB: ADVC) today announced financial and operating results for the third quarter of 2012. The Company provides Internet-based Electronic Data Interchange services through Edict Systems and sells electronic document management software and services through Merkur Group.

Revenue in the third quarter of 2012 of $2,576,729 increased by 5% over revenue of $2,447,674 in the third quarter of 2011. Revenue from Edict Systems increased by 7% and revenue from Merkur Group decreased by 3% compared to the third quarter in 2011.

Net income in the third quarter of 2012 increased by 22% and was $556,737, or $.008 per share, compared to net income of $455,542, or $.007 per share, in the same period in 2011.

About Advant-e Corporation

Advant-e, via its wholly owned subsidiaries Edict Systems, Inc. and Merkur Group, Inc. is a provider of internet-based hosted 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 advant-e@edictsystems.com.


ADVANT-E CORPORATION AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)

 

     Three Months Ended
September 30,
     Nine Months Ended
September 30,
 
     2012      2011      2012      2011  

Revenue

   $ 2,576,729         2,447,674         7,588,418         7,107,718   

Cost of revenue

     999,386         955,698         3,006,506         2,850,509   
  

 

 

    

 

 

    

 

 

    

 

 

 

Gross margin

     1,577,343         1,491,976         4,581,912         4,257,209   

Marketing, general and administrative expenses

     733,810         802,075         2,387,145         2,389,125   
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating income

     843,533         689,901         2,194,767         1,868,084   

Other income, net

     264         892         1,704         2,933   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income before income taxes

     843,797         690,793         2,196,471         1,871,017   

Income tax expense

     287,060         235,251         748,022         637,928   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income

   $ 556,737         455,542         1,448,449         1,233,089   
  

 

 

    

 

 

    

 

 

    

 

 

 

Earnings per share – basic and diluted

   $ .008         .007         .022         .018   
  

 

 

    

 

 

    

 

 

    

 

 

 

Weighted average shares outstanding – basic and diluted

     66,722,590         66,722,590         66,722,590         66,722,590   
  

 

 

    

 

 

    

 

 

    

 

 

 


ADVANT-E CORPORATION AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

 

     September  30,
2012
(Unaudited)
     December 31,
2011
 

Assets

     

Current Assets:

     

Cash and cash equivalents

   $ 5,113,837         3,459,402   

Accounts receivable, net

     926,791         784,239   

Prepaid software maintenance costs

     222,362         190,429   

Prepaid expenses and deposits

     85,369         107,871   

Prepaid income taxes

     —           1,910   

Deferred income taxes

     231,887         207,336   
  

 

 

    

 

 

 

Total current assets

     6,580,246         4,751,187   

Software development costs, net

     174,734         262,102   

Property and equipment, net

     191,657         171,199   

Goodwill

     1,474,615         1,474,615   

Other intangible assets, net

     102,761         159,796   
  

 

 

    

 

 

 

Total assets

   $ 8,524,013         6,818,899   
  

 

 

    

 

 

 

Liabilities and Shareholders’ Equity

     

Current liabilities:

     

Accounts payable

   $ 183,157         112,402   

Income taxes payable

     27,934         —     

Accrued salaries and other expenses

     286,027         205,334   

Deferred revenue

     868,382         748,828   
  

 

 

    

 

 

 

Total current liabilities

     1,365,500         1,066,564   

Deferred income taxes

     156,185         198,456   
  

 

 

    

 

 

 

Total liabilities

     1,521,685         1,265,020   
  

 

 

    

 

 

 

Shareholders’ equity:

     

Common stock, $.001 par value; 100,000,000 shares authorized; 66,722,590 shares issued and outstanding

     66,723         66,723   

Paid-in capital

     1,936,257         1,936,257   

Retained earnings

     4,999,348         3,550,899   
  

 

 

    

 

 

 

Total shareholders’ equity

     7,002,328         5,553,879   
  

 

 

    

 

 

 

Total liabilities and shareholders’ equity

   $ 8,524,013         6,818,899   
  

 

 

    

 

 

 


ADVANT-E CORPORATION AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)

 

     Nine Months Ended
September 30,
 
     2012     2011  

Cash flows from operating activities:

    

Net income

   $ 1,448,449        1,233,089   

Adjustments to reconcile net income to net cash flows from operating activities:

    

Depreciation

     85,998        114,861   

Amortization of software development costs

     87,368        58,244   

Amortization of other intangible assets

     57,035        63,534   

Loss on disposal of assets

     195        —     

Deferred income taxes

     (66,822     (96,849

Increase (decrease) in cash and cash equivalents arising from changes in assets and liabilities:

    

Accounts receivable

     (142,552     (9,384

Prepaid software maintenance costs

     (31,933     (34,541

Prepaid expenses and deposits

     22,502        29,967   

Prepaid income taxes

     1,910        —     

Accounts payable

     70,755        77,195   

Income taxes payable

     27,934        (223

Accrued salaries and other expenses

     80,693        160,395   

Deferred revenue

     119,554        136,520   
  

 

 

   

 

 

 

Net cash flows from operating activities

     1,761,086        1,732,808   
  

 

 

   

 

 

 

Cash flows from investing activities:

    

Purchases of property and equipment

     (106,651     (34,691

Software development costs

     —          (40,636
  

 

 

   

 

 

 

Net cash flows from investing activities

     (106,651     (75,327
  

 

 

   

 

 

 

Cash flows from financing activities:

    

Dividends paid

     —          (667,226
  

 

 

   

 

 

 

Net increase in cash and cash equivalents

     1,654,435        990,255   

Cash and cash equivalents, beginning of period

     3,459,402        2,963,172   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 5,113,837        3,953,427   
  

 

 

   

 

 

 

Supplemental disclosures of cash flow items:

    

Income taxes paid

   $ 785,000        735,000   

Non-cash transactions:

    

Declared dividends payable no later than December 31, 2011

     —          667,226   

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.