Advantex Announces Net Income for Fiscal Year ended June 30, 2013
(firmenpresse) - TORONTO, ONTARIO -- (Marketwired) -- 10/28/13 -- Advantex Marketing International Inc. (CNSX: ADX) ("Advantex" or the "Company"), a leading specialist in the marketing services industry, today announced its results for the fiscal fourth quarter and year ended June 30, 2013. All currency amounts are in Canadian dollars unless otherwise noted.
"It is encouraging to report an increase in revenues, and a net income in a challenging business environment," said Kelly Ambrose, Advantex President and Chief Executive Officer.
Financial Highlights:
The Company's revenues from its programs with Canadian Imperial Bank of Commerce ("CIBC") and Aeroplan Canada Inc. ("Aeroplan") increased a solid 4.2%. The Company earns revenues as consumers complete purchases at small independent merchants participating in the programs. The uncertain economy affected consumer spending at participating merchants. This is a significant reason that despite a double digit percent increase in merchant participation during Fiscal 2013, the revenues did not increase as expected. The Company acquired Futura Loyalty Group Inc.'s Aeroplan channel marketing assets at the end of January, 2013. This has augmented our merchant portfolio and our revenues and gross profit for Fiscal 2013.
While Fiscal 2013 selling, general & administrative costs were flat compared to Fiscal 2012, the increase in direct costs eroded all the gains of revenue growth. The Company increased its expense for delinquencies reflecting the financial strain caused by the economic conditions on participating merchants.
"The Company recently announced renewal of its agreement with CIBC which was an important event. The eighteen year relationship is still strong and provides CIBC cardholders with significant value. Discussions with Aeroplan respecting a multi-year renewal of the existing agreement expiring December 31, 2013 are going well. Our financial partners are supportive. Accord Financial Inc. and the Company have extended the term of the credit facility by a year to December 31, 2014. The term of the 14% and 12% debentures has been extended to December 31, 2013. The Company has announced that it has entered into a term sheet to refinance between $5 million and $5.5 million of the 14% debentures and 12% debentures. The Company expects to re-finance the debentures. I am cautiously optimistic with the future prospects of Advantex," said Mr. Ambrose.
About Advantex Marketing International Inc.
Advantex is a specialist in the marketing services industry. Advantex partners with CIBC, and Aeroplan. On a combined basis, Advantex has contractual marketing access to more than five million Canadian consumers with above-average personal and household income. Advantex's merchant partner base currently consists of about 2,000 merchants operating restaurants; golf courses; independent inns, resorts and selected hotels; spas; retailers of men's and ladies fashion, footwear and accessories; retailers of sporting goods; florists and garden centres; book and newspaper stores; health and beauty centres; dry cleaners; gift stores; home decor; automotive dealers, service centers; and tire dealerships; many of which are leaders in their respective categories.
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: expectation from its negotiations with Aeroplan; expectation of negotiating and finalizing a refinancing of debentures on the terms set out in the term sheet; expectation of its future prospects; 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.
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 those listed under "General Risks and Uncertainties" and "Economic Dependence" in Management's Discussion and Analysis for the fiscal year ended June 30, 2013.
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: 28.10.2013 - 23:03 Uhr
Sprache: Deutsch
News-ID 310043
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TORONTO, ONTARIO
Kategorie:
Advertising, PR and Marketing
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