Advantex Announces Fiscal 2016 Results
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E-mailTORONTO, ONTARIO -- (Marketwired) -- 10/27/16 -- Advantex Marketing International Inc. (CSE: ADX), a specialist in marketing loyalty-reward programs, announced its results for the Fiscal year ended June 30, 2016.
The financial performance reflects a gradual recovery post the structural and competitive challenges of the previous Fiscal year.
Highlights of Fiscal 2016 results are tabulated (1) below. Additional details are available in the Fiscal 2016 Consolidated Financial Statements and the Management Discussion and Analysis available under the Company's profile on www.sedar.com.
Fiscal 2016 Fiscal 2015 Change
-------------- -------------- --------------
$ $ $
-------------- -------------- --------------
Revenues $ 11,273,680 $ 13,297,892 $ (2,024,212)
Direct expenses
Cost of cardholder rewards and
marketing in connection with
Company's merchant based
loyalty programs $ 3,114,217 $ 3,712,992 $ (598,775)
Expense for provision against
delinquent accounts $ 579,728 $ 1,453,335 $ (873,607)
-------------- -------------- --------------
Gross profit $ 7,579,735 $ 8,131,565 $ (551,830)
Selling and General &
Administrative expenses $ 6,169,953 $ 7,922,906 $ (1,752,953)
Restructuring cost $ - $ 1,001,321 $ (1,001,321)
-------------- -------------- --------------
Earnings (loss) from operations
before depreciation,
amortization and interest $ 1,409,782 $ (792,662) $ 2,202,444
Stated interest expense - loan
payable, and debentures $ 1,619,782 $ 1,605,981 $ 13,801
-------------- -------------- --------------
Loss from operations before
depreciation, amortization and
interest $ (210,000) $ (2,398,643) $ 2,188,643
Depreciation, amortization and
non-cash interest expense $ 697,443 $ 671,960 $ 25,483
-------------- -------------- --------------
Net loss and Comprehensive loss $ (907,443) $ (3,070,603) $ 2,163,160
-------------- -------------- --------------
(1) The tabulation is a non-GAAP presentation and is provided to assist readers in understanding the Company's financial performance. The information is extracted from consolidated financial statements for the Fiscal year ended June 30, 2016.
About Advantex:
Advantex provides specialized marketing programs that enable members of affinity groups to earn frequent-flyer miles and other loyalty rewards through purchases at participating merchants.
Through our partnerships with Aeroplan, Toronto-Dominion Bank, Canadian Imperial Bank of Commerce and Caesars Entertainment, we have contractual access to millions of consumers with above-average personal and household income. We also have partnerships with about 1,300 merchants in Canada and the US.
Advantex shares trade on the Canadian Securities Exchange under the symbol ADX. For more information, go to www.advantex.com.
Advantex Marketing International Inc.
Consolidated Statements of Financial Position
(expressed in Canadian dollars)
Note June 30, 2016 June 30, 2015
$ $
-------------- --------------
Assets
Current assets
Cash and cash equivalents $ 658,678 $ 1,162,609
Accounts receivable 12 a 425,402 460,446
Transaction credits 12 a 7,352,262 7,819,647
Inventory 5 39,914 144,874
Prepaid expenses and sundry assets 103,684 173,777
-------------- --------------
$ 8,579,940 $ 9,761,353
Non-current assets
Property, plant and equipment 6 a $ 116,049 $ 165,735
Intangible assets 6 b 119,921 477,992
-------------- --------------
$ 235,970 $ 643,727
Total assets $ 8,815,910 $ 10,405,080
Liabilities
Current liabilities
Loan payable 7 $ 5,533,267 $ 5,711,525
Accounts payable and accrued
liabilities 3,556,978 4,294,418
12% Non-convertible debentures payable 8 5,098,773 -
-------------- --------------
$ 14,189,018 $ 10,005,943
Non-current liabilities
12% Non-convertible debentures payable 8 $ - $ 4,864,802
Total liabilities $ 14,189,018 $ 14,870,745
Shareholders' deficiency
Share capital 9 $ 24,530,555 $ 24,530,555
Contributed surplus 10 b 4,090,382 4,090,382
Accumulated other comprehensive loss (47,383) (47,383)
Deficit (33,946,662) (33,039,219)
-------------- --------------
Total deficiency $ (5,373,108) $ (4,465,665)
Total liabilities and deficiency $ 8,815,910 $ 10,405,080
Economic and Financial dependence (note 2 a), Going concern (note 2 b), Commitments and contingencies (note 14)
The accompanying notes are an integral part of these consolidated financial statements
Approved by the Board,
Director: Signed, "William Polley"
William Polley
Director: Signed, "Kelly Ambrose"
Kelly Ambrose
Advantex Marketing International Inc.
Consolidated Statements of Loss and Comprehensive Loss
For the years ended June 30, 2016 and 2015
(expressed in Canadian dollars)
Note 2016 2015
$ $
---------------- ----------------
Revenues 18 $ 11,273,680 $ 13,297,892
Direct expenses 17/18 3,693,945 5,166,327
---------------- ----------------
7,579,735 8,131,565
Operating expenses
Selling and marketing 17/18 2,536,274 3,430,430
General and administrative 17/18 3,633,679 4,492,476
Restructuring cost 19 - 1,001,321
---------------- ----------------
Earnings (loss) from operations
before depreciation, amortization
and interest 1,409,782 (792,662)
Interest expense:
Stated interest expense - loan
payable, and debentures 7/8 1,619,782 1,605,981
Non-cash interest expense on
debentures 8 233,971 227,175
---------------- ----------------
(443,971) (2,625,818)
Depreciation of property, plant and
equipment, and amortization of
intangible assets 6 a/b 463,472 444,785
---------------- ----------------
Net loss and comprehensive loss $ (907,443) $ (3,070,603)
Loss per share
Basic and Diluted 16 $ (0.01) $ (0.02)
The accompanying notes are an integral part of these consolidated financial statements
Advantex Marketing International Inc.
Consolidated Statements of Changes in Shareholders' Deficiency
For the years ended June 30, 2016 and June 30, 2015
(expressed in Canadian dollars)
Class A
preference Contributed
shares Common shares surplus
$ $ $
--------------- --------------- ---------------
Balance - July 1, 2014 $ 3,815 $ 24,526,740 $ 4,090,382
Net loss and comprehensive
loss - - -
--------------- --------------- ---------------
Balance - June 30, 2015 $ 3,815 $ 24,526,740 $ 4,090,382
--------------- --------------- ---------------
Balance - July 1, 2015 $ 3,815 $ 24,526,740 $ 4,090,382
Net loss and comprehensive
loss - - -
--------------- --------------- ---------------
Balance - June 30, 2016 $ 3,815 $ 24,526,740 $ 4,090,382
--------------- --------------- ---------------
Advantex Marketing International Inc.
Consolidated Statements of Changes in Shareholders' Deficiency
For the years ended June 30, 2016 and June 30, 2015
(expressed in Canadian dollars)
Accumulated
other
comprehensive
loss Deficit Total
$ $ $
--------------- --------------- ---------------
Balance - July 1, 2014 $ (47,383) $ (29,968,616) $ (1,395,062)
Net loss and comprehensive
loss - (3,070,603) (3,070,603)
--------------- --------------- ---------------
Balance - June 30, 2015 $ (47,383) $ (33,039,219) $ (4,465,665)
--------------- --------------- ---------------
Balance - July 1, 2015 $ (47,383) $ (33,039,219) $ (4,465,665)
Net loss and comprehensive
loss - (907,443) (907,443)
--------------- --------------- ---------------
Balance - June 30, 2016 $ (47,383) $ (33,946,662) $ (5,373,108)
--------------- --------------- ---------------
The accompanying notes are an integral part of these consolidated financial statements
Advantex Marketing International Inc.
Consolidated Statements of Cash Flow
For the years ended June 30, 2016 and 2015
(expressed in Canadian dollars)
Note June 30, 2016 June 30, 2015
$ $
---------------- ----------------
Operational activities
Net loss for the year $ (907,443) $ (3,070,603)
Adjustments for:
Depreciation of property, plant
and equipment, and amortization
of intangible assets 6 a/b 463,472 444,785
Accretion charge for debentures 8 233,971 227,175
---------------- ----------------
(210,000) (2,398,643)
Changes in items of working
capital
Accounts receivable 35,044 348,743
Transaction credits 467,385 2,459,059
Inventory 104,960 (54,449)
Prepaid expenses and sundry
assets 70,093 5,635
Accounts payable and accrued
liabilities (737,440) 74,514
---------------- ----------------
(59,958) 2,833,502
Net cash (used in) provided by
operating activities $ (269,958) $ 434,859
Investing activities
Purchase of property, plant and
equipment, and intangible assets $ (55,715) $ (321,200)
---------------- ----------------
Net cash (used in) investing
activities $ (55,715) $ (321,200)
Financing activities
Repayment of loan payable 7 $ (178,258) $ (742,649)
Transaction costs respecting
debentures financing 8 - (24,206)
---------------- ----------------
Net cash generated (used in)
financing activities $ (178,258) $ (766,855)
Decrease in cash and cash
equivalents during the year $ (503,931) $ (653,196)
Cash and cash equivalents at
beginning of the year 1,162,609 1,815,805
---------------- ----------------
Cash and cash equivalents at end
of the year $ 658,678 $ 1,162,609
Additional information
Interest paid $ 1,516,671 $ 1,897,427
For purposes of the cash flow
statement, cash comprises
Cash $ 653,678 $ 1,157,609
Term deposits 5,000 5,000
---------------- ----------------
$ 658,678 $ 1,162,609
---------------- ----------------
The accompanying notes are an integral part of these consolidated financial statements
Contacts: Advantex Marketing International Inc. Mukesh Sabharwal Vice-President and Chief Financial Officer 905-470-9558 ext. 249 [email protected]
Source: Advantex Marketing International Inc.
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