Advantex Announces Net Profit for Three and Six Months Ended December 31, 2011
- Net profit. Three and six months increase of $191,000 and $301,000 respectively vs. corresponding previous periods. - Merchant participation. Record level, over 1,150 at the end of December, 2011. - Revenues from Retail programs. Three and six months increase of $646,000 and $1,089,000 respectively vs. corresponding previous periods. - Contribution from Operations before amortization and interest (EBITDA (i)). Three and six months increase of $270,000 and $372,000 respectively vs. corresponding previous periods.
(firmenpresse) - TORONTO, ONTARIO -- (Marketwire) -- 02/14/12 -- Advantex Marketing International Inc. (CNSX: ADX) ("Advantex" or the "Company"), a leading specialist in merchant funding and loyalty marketing programs, today announced its results for the three and six months ended December 31, 2011.
"We are pleased to report a second successive quarter of net profit. Net profit from operations of the Company, for the three and six months, is the highest in over a decade. The strong results are driven by our Retail programs and confirm our belief that the Company has set up a solid platform from which to continue to grow its merchant base and ensure growth in its future revenues and profitability," said Kelly Ambrose, Advantex President and Chief Executive Officer.
(i) EBITDA, and Contribution after cash interest, are non-GAAP financial measures which do not have any standardized meaning prescribed by the issuer's GAAP and are therefore unlikely to be comparable to similar measures presented by other issuers. For the Company, the most directly comparable measure to EBITDA is Contribution from operations before amortization and interest, and Contribution after cash interest is provided to illustrate the Company's assessment of cash generated from its operating activities.
(ii) Some numbers in the presentation under Financial Highlights may not add due to rounding.
"We are in the process of introducing a product with digital marketing capabilities that will enable merchants to market their products and services through new channels including social media. Additionally, the Company recently announced its agreement with Canadian Tire, its third affinity partner, for a pilot program. In the coming quarters we expect to introduce new product offerings to the small merchant marketplace, that will enable merchants to save money as well as generate incremental revenues for the Company," said Mr. Ambrose.
The increase in the Company's revenues and profitability is a reflection of increase in the number of merchants participating in its programs.
The higher dollar cash interest cost is mainly a reflection of an increase in the utilization of the line of credit facility (Loan payable on the balance sheet) which the Company utilized to expand its Advance Purchase Marketing (APM) program business. The APM program is the Company's premier product and source of revenue.
About Advantex Marketing International Inc.
Advantex is a specialist in the marketing services industry, managing white-labeled rewards accelerator programs for major affinity groups through which their members earn bonus frequent flyer miles and/or other rewards on purchases at participating merchants. Under the umbrella of each program, Advantex provides merchants with marketing, customer incentives, and additionally pre-purchase of merchants' future sales through its Advance Purchase Marketing (APM) program. Advantex partners include over 1,150 merchants; CIBC; Aeroplan; and Canadian Tire. Advantex is traded on the Canadian National Stock Exchange under the symbol "ADX". For additional information on Advantex, please visit .
Forward-Looking Information
This Press Release contains certain "forward-looking information". All information, other than information comprised of historical fact, that addresses activities, events or developments that the Company believes, expects or anticipates will or may occur in the future constitutes forward-looking information. Forward-looking information is typically identified by words such as: anticipate, believe, expect, goal, intend, plan, will, may, should, could and other similar expressions. Such forward-looking information relates to, without limitation, information regarding: the Company's belief that it has set up a solid platform from which to continue to grow its merchant base and ensure growth in its future revenues and profitability; the Company's expectation that it will launch new products in the coming quarters; and other information regarding financial and business prospects and financial outlook is forward-looking information.
Forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company, including certain assumptions and expectations of Management. With respect to the forward-looking information contained in this Press Release, the Company has made assumptions regarding, among other things, the size of the market for the Company's programs; its ability to increase merchant participation in its programs; its ability to access future financing; continued affinity partner participation with the Company; continued support from its providers of Loan payable and holders of Debentures payable; current and future economic and market conditions and the impact of same on the Company's business; ongoing and future revenue sources; future business levels; interest and currency rates; the appropriateness of the Company's tax filing position; ongoing consumer interest in accumulating frequent flyer miles; and the Company's ability to manage risks connected to collection of transaction credits.
Forward-looking information is subject to a number of risks, uncertainties and assumptions that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things, changes in general economic and market conditions; changes to regulations affecting the Company's activities; level of merchant participation in the Company's programs; uncertainties relating to the availability and costs of financing needed in the future; termination of the CIBC agreement; termination of the Aeroplan agreement; currency risks; the financial impact from failure to meet its obligations noted under Contractual Obligations section of the Management Discussion and Analysis ("MD&A") for the three and six month periods ended December 31, 2011; the inability of the Company to collect under its APM program; the Company's financial status, and other factors, including without limitation, those listed under "General Risks and Uncertainties" and "Economic Dependence" in MD&A for the three and six month periods ended December 31, 2011.
All forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
Contacts:
Advantex Marketing International Inc.
Mukesh Sabharwal
Vice-President and Chief Financial Officer
905-470-9558 ext. 249
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Datum: 15.02.2012 - 02:50 Uhr
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