Advantex Returns to Profitability in First Quarter of Fiscal 2015
Highlights: - EDITDA(i) of $616,268 in the three months to September 30, 2014 and a return to profitability. - 18% growth in revenue in the Aeroplan program and a renewal of the partnership to 2019. - Corporate restructuring centered on affinity partnerships. - Effective management of marketing expenses and other costs.
(firmenpresse) - TORONTO, ONTARIO -- (Marketwired) -- 11/21/14 -- Advantex Marketing International Inc. (CSE: ADX), a specialist in marketing loyalty-reward programs, today reported net income of $19,807 for the three months ended September 30, 2014.
The improved performance, which follows losses in the previous two quarters, is due mainly to disciplined and effective cost management. Advantex posted net income of $55,882 in the first quarter of fiscal 2014, ended September 30, 2013.
"We are encouraged by our progress", Kelly Ambrose, Advantex's president and CEO, said. "At the same time, we recognize that time, patience and commitment are needed to realize the full potential of our business model."
Advantex made further progress in implementing its renewal program during the latest quarter. Highlights included:
Since the end of the quarter, Advantex has renewed its agreement with Aimia Inc., owner of the Aeroplan program, for five years to April 30, 2019. Under the renewed agreement, Advantex can market Aeroplan to merchants in all business segments. Under the original 2010 agreement, Advantex was restricted to certain retail sectors.
Below is a summary of results for the three months ended September 30, 2014, comprising the first quarter of fiscal 2015:
(All currency amounts are in Canadian dollars.)
(i) EBITDA is a non-GAAP financial measure which does not have any standardized meaning prescribed by the issuer's GAAP and is unlikely to be comparable to similar measures presented by other issuers. It is provided as additional information to assist readers in understanding a component of Advantex's financial performance. In case of Advantex, for three months ended September 30, 2014 and 2013, per consolidated financial statements for three months ended September 30, 2014, Earnings from operations before depreciation, amortization and interest is the nearest equivalent to EBITDA.
The 27 percent decline in revenues from the CIBC/TD program mainly reflects a drop in merchant participation in early 2014. Canadian Imperial Bank of Commerce, one of Advantex's main partners, has acknowledged an erosion in its credit card business over the past year.
The 18 percent improvement in Aeroplan revenues is partly due to growing merchant interest in that program.
"Our initiatives over the past year have laid the groundwork for renewed growth", Mr. Ambrose said. "Our task in the months ahead is to fulfill our commitments to the almost 1,700 merchants that participate in our programs, and to our valued affinity partners and their customers."
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, Canadian Imperial Bank of Commerce, Toronto-Dominion Bank and Caesars Entertainment, we have contractual access to millions of consumers with above-average personal and household income. We also have partnerships with about 1,700 merchants in Canada and the US.
Advantex shares trade on the Canadian Securities Exchange under the symbol ADX. For more information, go to .
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 Advantex 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 Advantex's: ability, and its expectations of time required, to realize the full potential of its business model; expectation for renewed growth and other information regarding Advantex's financial and business prospects and financial outlook is forward-looking information.
Forward-looking information reflects the current expectations or beliefs of Advantex based on information currently available to Advantex.
Forward-looking information is subject to a number of risks, uncertainties and assumptions that may cause the actual results of Advantex 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 Advantex. Factors that could cause actual results or events to differ materially from current expectations include, among other things, those listed under General Risks and Uncertainties and Economic Dependence in the management discussion and analysis for the quarter ended September 30, 2014.
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, Advantex 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 Advantex 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.
Economic and Financial dependence (note 2), Commitments and contingencies (note 14)
The accompanying notes are an integral part of these consolidated financial statements.
The accompanying notes are an integral part of these consolidated financial statements.
The accompanying notes are an integral part of these consolidated financial statements.
Additional Information
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
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Datum: 21.11.2014 - 13:30 Uhr
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