ADX: TSE
TORONTO, Feb. 2 /CNW/ - Advantex Marketing International Inc. (TSE:ADX)
announced its financial results today for the second quarter ended December
31, 1999. Revenue for Q2 2000 was $16,826,000, an increase of $8,697,000 or
107% over revenue of $8,129,000 for the same period in the previous year. The
income before amortization and interest for Q2 2000 was $354,000 compared to a
loss of $550,000 during the same quarter last year. The net income for Q2 2000
was $141,000, compared to a net loss of $819,000 in the same period the
previous year, an improvement of $960,000. The increase was primarily
attributable to continued revenue growth in the Company's CIBC Aerogold
Advantex Program.
"This is the third consecutive quarter in which we've reported income
before amortization and interest," stated G. Randall Munger, Chairman and
Chief Executive Officer, Advantex Marketing International Inc. "With the
expansion of our CIBC Aerogold ADVANTEX program into the U.S., and the
addition of the Entertainment category to the program, we are well positioned
for continued revenue growth in our offline business."
Revenue for the six months ended December 31, 1999 was $34,919,000, an
increase of $18,761,000 or 116% from $16,158,000 for the same period last
year. The income before amortization and interest for the six months was
$665,000, compared to a loss of $822,000 for the prior year. The net income
for the six months was $259,000 or $0.01 per share, compared to a loss of
$1,302,000 or $0.04 per share for the same period last year.
Advantex recently announced that it will be adding 4,500 U.S. restaurants
to the CIBC Aerogold ADVANTEX program through an agreement with Transmedia
Network Inc. Transmedia is a leading U.S. provider of dining discount and
value-added programs. CIBC Aerogold cardholders will earn TRIPLE Aeroplan
Miles when dining at participating restaurants located in more than 35 cities
throughout the continental United States, Alaska, and Hawaii. Advantex will
earn income on all CIBC Aerogold card transactions at participating U.S.
restaurants.
The Company's recent agreement with TicketMaster sets the stage for CIBC
Aerogold cardholders to begin earning DOUBLE or TRIPLE Aeroplan Miles when
purchasing tickets to a wide variety of concerts, sports events, family
entertainment and the performing arts, who elect to participate in the CIBC
Aerogold ADVANTEX program. TicketMaster Canada is the nation's leading
computerized ticketing service, providing convenient access to tickets for
more than 10,000 events a year.
"Our agreements with TicketMaster and with Transmedia are representative
of our plans to broaden the scope of our business through strategic alliances
offering large revenue potential and minimal incremental cost," said Munger.
OFFLINE BUSINESS SUPPORTS INTERNET STRATEGY
Unlike most Internet companies, Advantex is in a very unique and
favourable position, with a strong offline business to support its Internet
strategy. All of the sales, marketing and administrative infrastructure is in
place. The company has had many years of experience in the development and
management of loyalty programs, serving a broad range of businesses. The
company's Internet strategy is simply an expansion of its offline loyalty
programs through the Internet channel of distribution.
The CIBC Aerogold ADVANTEX shopping portal is scheduled to launch in late
Spring 2000. Advantex is currently in the process of securing e-retail
participation for the portal in all major e-commerce categories. CIBC Aerogold
cardholders will register on the portal site and thereafter automatically earn
valuable bonus Aeroplan Miles awards on their online purchases at
participating Canadian and U.S. e-merchants.
CIBC Aerogold is the number one gold VISA credit card in Canada. Air
Canada's Aeroplan Program is Canada's most popular frequent flyer program.
"The CIBC Aerogold ADVANTEX shopping portal will deliver the enormous
buying power of one of Canada's most important consumer groups to
participating e-retailers. The demographics of the CIBC Aerogold VISA card
suggests that cardholders will embrace online shopping with bonus Aeroplan
Miles as the incentive," said Munger. "We are continuing to develop strategic
alliances with other corporate partners interested in providing Internet
shopping benefits to their customers and members."
About Advantex Marketing International Inc.
Advantex Marketing International Inc. is a diversified loyalty marketing
firm, with a 17 year history in the marketing services field throughout North
America. The Company's client base is comprised of large financial
institutions, packaged goods manufacturers, daily newspapers, major retailers,
independent and chain restaurant operators, golf courses, country inns,
resorts and entertainment. The Company excels at creating loyalty marketing
programs around a core value-added consumer proposition designed to generate
new business and promote customer loyalty for its corporate and merchant
partners. Advantex is a public company, traded on the Toronto Stock Exchange
under the symbol "ADX". Our web site is www.advantex.com
ADVANTEX MARKETING INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEETS (unaudited)
AS AT DECEMBER 31 1999 1998
(in thousands) ($) ($)
ASSETS
Current assets 7,791 5,525
Capital and other assets 1,394 1,479
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TOTAL ASSETS 9,185 7,004
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LIABILITIES
Current liabilities 5,746 4,019
Debenture payable 1,300 1,300
Obligation under capital leases 63
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7,046 5,382
SHAREHOLDERS' EQUITY 2,139 1,622
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TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 9,185 7,004
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CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
SIX MONTHS ENDED THREE MONTHS ENDED SIX MONTHS ENDED
DECEMBER 31 DECEMBER 31 DECEMBER 31
(in thousands except income
(loss) per common share)
1999 1998 1999 1998
($) ($) ($) ($)
REVENUE 16,826 8,129 34,919 16,158
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OPERATING EXPENSES
Product, production,
distribution and
cost of goods sold 14,347 6,650 29,697 12,866
Selling 1,184 1,213 2,641 2,532
General and administrative 941 816 1,916 1,582
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16,472 8,679 34,254 16,980
-------------------------------------------------- ----------------------
INCOME (LOSS) BEFORE
AMORTIZATION AND INTEREST 354 (550) 665 (822)
Amortization 108 172 197 345
Interest 105 97 209 135
-------------------------------------------------- ----------------------
NET INCOME (LOSS) 141 (819) 259 (1,302)
-------------------------------------------------- ----------------------
INCOME (LOSS) PER COMMON SHARE 0.01 (0.03) 0.01 (0.04)
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
SIX MONTHS ENDED DECEMBER 31 1999 1998
(in thousands) ($) ($)
CASH WAS PROVIDED BY (USED IN):
OPERATING ACTIVITIES
Net income (loss) 259 (1,302)
Item not involving cash: Amortization 220 358
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479 (944)
Net change in non-cash working
capital items (22) (464)
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Cash provided by (used in) operating
activities 457 (1,408)
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FINANCING ACTIVITIES
Share issue 685 400
Loan payable 278 450
Capital leases (35) (27)
Long term debenture 1,300
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Cash provided by financing activities 928 2,123
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INVESTING ACTIVITIES
Capital and other assets (246) (212)
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Cash used in investing activities (246) (212)
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NET INCREASE IN CASH 1,139 503
Bank indebtedness, beginning of period (657) (822)
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CASH (BANK INDEBTEDNESS), END OF PERIOD 482 (319)
-0- 02/02/2000
For further information: Lisa S. Levstein, Manager, Communications, Tel: (416) 481-5657, ext. 260, E-mail: lisa.levstein@advantex.com
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