SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the
Securities and Exchange Act of 1934
Date of Report (Date of earliest event reported): November 4, 2003
ADVANT-E CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware 0-30983 88-0339012
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(State or other jurisdiction (Commission File (I.R.S. Employer
of incorporation or organization) Number) Identification No.)
2680 Indian Ripple Rd., Dayton, OH 45440
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 937-429-4288
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(Former name or former address, if changed since last report)
ITEM 5. OTHER EVENTS AND REGULATION FD DISCLOSURE.
On November 4, 2003, Advant-e Corporation issued a press release announcing its
financial results for the quarter ending September 30, 2003 and for the nine
months ending September 30, 2003. The text of the release is attached as an
exhibit hereto.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) EXHIBITS.
Exhibit Method
Number Description of Filing
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99.1 Company Press Release Filed
Herewith
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Advant-e Corporation
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(Registrant)
November 4, 2003 By: /s/ Jason K. Wadzinski
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Jason K. Wadzinski
Chief Executive Officer
EXHIBIT 99.1 - COMPANY PRESS RELEASE
Tuesday November 4, 2003
Advant-e Corporation Announces Third Quarter 2003 Results
Company Reports 39% Increase in Revenue and 18% Pre-Tax Profitability
DAYTON, Ohio, November 4, 2003 -- Advant-e Corporation (OTC 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 www.GroceryEC.com,
www.RetailEC.com, www.CPGSupplier.com, www.LogisticsEC.com, and 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 www.Advant-e.com and
www.edictsystems.com or by contacting investor relations at (937) 429-4288.
The Company's email is info@edictsystems.com.
ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
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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
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Total revenues 759,865 546,410 2,124,351 1,441,097
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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
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Total operating expenses 624,238 608,586 2,072,582 1,578,720
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INCOME (LOSS) BEFORE TAXES 135,627 ( 62,176) 51,769 ( 137,623)
INCOME TAXES 27,485 1,200 19,430 8,610
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NET INCOME (LOSS) $ 108,142 ( 63,376) 32,339 ( 146,233)
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EARNINGS (LOSS) PER SHARE
Basic $ 0.02 (0.01) 0.01 (0.03)
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Diluted 0.02 (0.01) 0.01 (0.03)
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AVERAGE SHARES OUTSTANDING
Basic 5,661,002 5,661,002 5,661,002 5,661,002
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Diluted 5,908,532 5,661,002 5,745,797 5,661,002
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ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
September December
30, 31,
2003 2002
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(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
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Total current assets 420,643 343,812
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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
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85,629 85,629
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Total assets $ 1,200,153 1,235,986
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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
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Total current liabilities 1,145,181 1,208,556
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LONG-TERM LIABILITIES
Bank note payable, less current maturities - 4,797
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Total liabilities 1,145,181 1,213,353
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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)
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Total shareholders' equity 54,972 22,633
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Total liabilities and shareholders' equity $ 1,200,153 1,235,986
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ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Nine Months Ended
September 30,
2003 2002
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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)
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Net cash provided by operating activities 259,827 216,760
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CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of equipment ( 28,181) ( 69,742)
Software development costs (110,757) (276,901)
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Net cash used in investing activities (138,938) (346,643)
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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)
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Net cash provided by (used in)
financing activities ( 35,373) 191,885
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NET INCREASE IN CASH AND CASH EQUIVALENTS 85,516 62,002
Cash and cash equivalents, beginning of period 98,740 180,679
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CASH AND CASH EQUIVALENTS, END OF PERIOD $ 184,256 242,681
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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.