Advantex Announces Fiscal 2017 First Quarter Results
TORONTO, ONTARIO -- (Marketwired) -- 11/21/16 -- Advantex Marketing International Inc. (CSE: ADX)(CSE: ADX.CN)(CNSX: ADX), a specialist in marketing loyalty-reward programs, announced its results for the three months ended September 30, 2016.
The Company's business performance was stable for the Quarter, while it continues to seek growth funds through recapitalization, in order to take advantage of expansion opportunities.
Highlights of Fiscal 2017 First Quarter results are set out in the table(1). Additional details are available in the Consolidated Financial Statements and the Management Discussion and Analysis available under the Company's profile on www.sedar.com.
Fiscal 2017 Fiscal 2016 First Quarter First Quarter Change ------------------------------------------ $ $ $ ------------------------------------------ Revenues $ 2,604,270 $ 2,995,254 $ (390,984) Direct expenses Cost of cardholder rewards and marketing in connection with Company's merchant based loyalty programs $ 697,764 $ 744,419 $ (46,655) Expense for provision against delinquent accounts $ 179,594 $ 138,650 $ 40,944 ------------------------------------------ Gross profit $ 1,726,912 $ 2,112,185 $ (385,273) Selling and General & Administrative expenses $ 1,398,251 $ 1,647,813 $ (249,562) ------------------------------------------ Earnings from operations before depreciation, amortization and interest $ 328,661 $ 464,372 $ (135,711) Stated interest expense - loan payable, and debentures $ 338,994 $ 383,471 $ (44,477) ------------------------------------------ Profit (Loss) from operations before depreciation, amortization and non cash interest $ (10,333) $ 80,901 $ (91,234) Depreciation, amortization and non-cash interest expense $ 139,072 $ 188,573 $ (49,501) ------------------------------------------ Net loss and Comprehensive loss $ (149,405) $ (107,672) $ (41,733) ------------------------------------------
(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 three months ended September 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 (unaudited) (expressed in Canadian dollars) At At September 30, June 30, Note 2016 2016 $ $ ---------------------------- Assets Current assets Cash and cash equivalents $ 1,097,917 $ 658,678 Accounts receivable 213,134 425,402 Transaction credits 5 6,252,747 7,352,262 Inventory 6 39,351 39,914 Prepaid expenses and sundry assets 119,768 103,684 ---------------------------- $ 7,722,917 $ 8,579,940 Non-current assets Property, plant and equipment $ 104,882 $ 116,049 Intangible assets 52,243 119,921 ---------------------------- $ 157,125 $ 235,970 Total assets $ 7,880,042 $ 8,815,910 Liabilities Current liabilities Loan payable 7 $ 4,808,293 $ 5,533,267 Accounts payable and accrued liabilities 3,435,262 3,556,978 12% Non-convertible debentures payable 8 5,159,000 5,098,773 ---------------------------- $ 13,402,555 $ 14,189,018 Shareholders' deficiency Share capital 9 $ 24,530,555 $ 24,530,555 Contributed surplus 4,090,382 4,090,382 Accumulated other comprehensive loss (47,383) (47,383) Deficit (34,096,067) (33,946,662) ---------------------------- Total deficiency $ (5,522,513) $ (5,373,108) Total liabilities and deficiency $ 7,880,042 $ 8,815,910
Economic and Financial dependence (note 2 a), Going concern (note 2 b), Commitments and contingencies (note 12)
The accompanying notes are an integral part of these consolidated financial statements.
Approved by the Board
Director: Signed "William Polley" Director: Signed "Kelly Ambrose" William Polley Kelly Ambrose Advantex Marketing International Inc. Consolidated Statements of Loss and Comprehensive Loss (unaudited) For the three months ended September 30, 2016 and 2015 (expressed in Canadian dollars) Note 2016 2015 $ $ ------------------------- Revenues 15 $ 2,604,270 $ 2,995,254 Direct expenses 14/15 877,358 883,069 ------------------------- 1,726,912 2,112,185 Operating expenses Selling and marketing 14/15 505,707 739,428 General and administrative 14/15 892,544 908,385 ------------------------- Earnings from operations before depreciation, amortization and interest 328,661 464,372 Interest expense: Stated interest expense - loan payable, and debentures 7/8 338,994 383,471 Non-cash interest expense on debentures 8 60,227 57,466 ------------------------- (70,560) 23,435 Depreciation of property, plant and equipment, and amortization of intangible assets 78,845 131,107 ------------------------- Net loss and comprehensive loss $ (149,405) $ (107,672) Loss per share Basic and Diluted 13 $ (0.00) $ (0.00)
The accompanying notes are an integral part of these consolidated financial statements.
Advantex Marketing International Inc. Consolidated Statements of Changes in Shareholders' Deficiency (unaudited) For the three months ended September 30, 2016 and 2015 (expressed in Canadian dollars) Class A preference Common Contributed shares shares surplus $ $ $ --------------------------------------------- Balance - July 1, 2015 $ 3,815 $ 24,526,740 $ 4,090,382 Net loss and comprehensive loss - - - --------------------------------------------- Balance - September 30, 2015 $ 3,815 $ 24,526,740 $ 4,090,382 --------------------------------------------- Balance - July 1, 2016 $ 3,815 $ 24,526,740 $ 4,090,382 Net loss and comprehensive loss - - - --------------------------------------------- Balance - September 30, 2016 $ 3,815 $ 24,526,740 $ 4,090,382 --------------------------------------------- Accumulated other comprehensive loss Deficit Total $ $ $ --------------------------------------------- Balance - July 1, 2015 $ (47,383) $ (33,039,219) $ (4,465,665) Net loss and comprehensive loss - (107,672) (107,672) --------------------------------------------- Balance - September 30, 2015 $ (47,383) $ (33,146,891) $ (4,573,337) --------------------------------------------- Balance - July 1, 2016 $ (47,383) $ (33,946,662) $ (5,373,108) Net loss and comprehensive loss - (149,405) (149,405) --------------------------------------------- Balance - September 30, 2016 $ (47,383) $ (34,096,067) $ (5,522,513) ---------------------------------------------
The accompanying notes are an integral part of these consolidated financial statements.
Advantex Marketing International Inc. Consolidated Statements of Cash Flow (unaudited) For the three months ended September 30, 2016 and 2015 (expressed in Canadian dollars) Note 2016 2015 $ $ ------------------------- Operational activities Net loss for the period $ (149,405) $ (107,672) Adjustments for: Depreciation of property, plant and equipment, and amortization of intangible assets 78,845 131,107 Accretion charge for debentures 8 60,227 57,466 ------------------------- (10,333) 80,901 Changes in items of working capital Accounts receivable 212,268 32,057 Transaction credits 1,099,515 (887,519) Inventory 563 75,562 Prepaid expenses and sundry assets (16,084) (72,034) Accounts payable and accrued liabilities (121,716) (170,631) ------------------------- 1,174,546 (1,022,565) Net cash provided by (used in) operating activities $ 1,164,213 $ (941,664) Investing activities Purchase of property, plant and equipment, and intangible assets $ - $ (18,026) ------------------------- Net cash (used in) investing activities $ - $ (18,026) Financing activities Utilization (Repayment) of loan payable 7 $ (724,974) $ 696,586 ------------------------- Net cash generated (used in) financing activities $ (724,974) $ 696,586 Increase (Decrease) in cash and cash equivalents during the period $ 439,239 $ (263,104) Cash and cash equivalents at beginning of the period 658,678 1,162,609 ------------------------- Cash and cash equivalents at end of the period $ 1,097,917 $ 899,505 Additional information Interest paid $ 183,378 $ 227,429 For purposes of the cash flow statement, cash comprises Cash $ 1,092,917 $ 894,505 Term deposits 5,000 5,000 ------------------------- $ 1,097,917 $ 899,505 -------------------------
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] www.advantex.com
Source: Advantex Marketing International Inc.
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