Advantex announces 36% revenue increase and a profitable second quarter
ADX: TSE
TORONTO, Feb. 22 /PRNewswire/ - Advantex Marketing International Inc. (TSE:ADX - news) announced today its financial results for the second quarter ended December 31, 2000. Revenue for the second quarter was $22,924,000, an increase of $6,098,000 or 36% over revenue of $16,826,000 for the same period in the previous year. The net income for the second quarter was $145,000, compared to net income of $141,000 in the same period the previous year. The revenue increase was primarily a result of continued growth in the Company's CIBC Aerogold ADVANTEX Benefit program, fueled by expanded merchant participation in new and existing categories.
Revenue for the six month period ended December 31, 2000 was $44,487,000, an increase of $9,568,000 or 27% from $34,919,000 for the same period last year. Net income for the six months was $516,000, almost double the $259,000 for the same period last year.
``We are pleased with the continued revenue growth in our existing customer loyalty marketing business,'' said G. Randall Munger, Chairman and Chief Executive Officer. ``We expect our growth to continue as we begin operating our online programs, the first of which is scheduled to begin in spring, 2001, followed by other programs throughout the year and into 2002. Recent contracts signed will expand the company's potential customer base for its products and services 50-fold, from 500,000 to more than 25 million consumers throughout North America. We are very excited about the future prospects of the company, given all of the new initiatives under development.''
About Advantex Marketing International Inc.
Advantex Marketing International Inc. is a leading consumer marketing firm, specializing in online and offline customer relationship marketing programs. Advantex programs strengthen the relationships between major organizations and their valued customers, while building new and ongoing relationships between those customers and participating merchants. Advantex partners include US Airways, Air Canada, Canadian Imperial Bank of Commerce, Bank of Nova Scotia, The New York Times, and other major North American corporations, as well as an impressive list of retailers, restaurants, golf courses, and resorts. Advantex is a public company, traded on the Toronto Stock Exchange under the symbol ``ADX''. More information on Advantex is available at www.advantex.com
ADVANTEX MARKETING INTERNATIONAL INC.
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CONSOLIDATED BALANCE SHEETS (unaudited)
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AS AT DECEMBER 31 2000 1999
(in thousands) ($) ($)
ASSETS
Current assets 8,796 7,345
Capital and other assets 5,682 1,840
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TOTAL ASSETS 14,478 9,185
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LIABILITIES
Current liabilities 3,673 5,746
Debenture payable 0 1,300
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3,673 7,046
SHAREHOLDERS' EQUITY
Capital stock 18,783 9,334
Contributed surplus 60 60
Deficit (8,038) (7,255)
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TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 14,478 9,185
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CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
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PERIOD ENDED THREE MONTHS ENDED SIX MONTHS ENDED
DECEMBER 31 DECEMBER 31 DECEMBER 31
(in thousands except
income per common share)
2000 1999 2000 1999
($) ($) ($) ($)
REVENUE 22,924 16,826 44,487 34,919
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OPERATING EXPENSES
Product, production
and distribution 20,676 14,347 39,445 29,697
Selling 1,412 1,184 2,858 2,641
General and
administrative 632 941 1,420 1916
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22,720 16,472 43,723 34,254
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INCOME BEFORE AMORTIZATION
AND INTEREST 204 354 764 665
Amortization 58 108 213 197
Interest 1 105 35 209
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NET INCOME 145 141 516 259
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INCOME PER COMMON SHARE 0.00 0.00 0.01 0.01
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CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
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SIX MONTHS ENDED DECEMBER 31 2000 1999
(in thousands) ($) ($)
CASH WAS PROVIDED BY (USED IN):
OPERATING ACTIVITIES
Net Income 516 259
Item not involving cash: Amortization 213 220
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729 479
Net change in non-cash working
capital items 1,251 424
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Cash provided by operating activities 1,980 903
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FINANCING ACTIVITIES
Loan payable (2,335) 278
Share issue/exercise of stock options 158 685
Capital leases 0 (35)
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Cash provided by (used in)
financing activities (2,177) 928
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INVESTING ACTIVITIES
Capital and other assets (673) (246)
Start up costs (1,596) (446)
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Cash used in investing activities (2,269) (692)
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NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (2,466) 1,139
Cash and cash equivalents
(bank indebtedness),
beginning of period 5,032 (657)
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CASH AND CASH EQUIVALENTS,
END OF PERIOD 2,566 482
Note: Certain of the comparative figures have been reclassified to
conform to the presentation adopted in the current period. |
