Advantex Updates Business Prospects and Announces Fiscal 2015 Results
(firmenpresse) - TORONTO, ONTARIO -- (Marketwired) -- 10/28/15 -- Advantex Marketing International Inc. (CSE: ADX), a specialist in marketing loyalty- reward programs, announced its results for Fiscal year ended June 30, 2015.
"Advantex has overcome the structural challenges connected to its core business during Fiscal 2015. Since beginning of April 2015 we have added 80 net new merchants to our core business, the CIBC/TD program. The fourth quarter of Fiscal 2015 has outperformed corresponding period previous year. We expect to see a gradual improvement in the financial performance right through Fiscal 2016", Kelly Ambrose, Advantex's President and CEO, said.
During Fiscal 2015 the core program was repositioned and the revised CIBC/TD program is delivering stronger value to our 900 plus participating merchants. The working capital feature of the CIBC/TD program's APM product was returned to a competitive position and is driving the increase in merchant population. The Company reorganized during third and fourth quarters with a focus on sales, supported by a slim management structure, with ability to gradually scale the CIBC/TD program merchant population back to 1,200 plus of Fiscal 2013.
"While we expect to report significantly improved financial results during Fiscal 2016 the goal to sustainable profitability is anticipated to be attained from Fiscal 2017 onwards", said Mr. Ambrose.
Advantex expects to re-set the Aeroplan program, which currently provides just over 10% of the gross profit, back on a growth path. Aeroplan recently signed a long term agreement with Toyota Canada which will exclude Advantex from selling and operating in the automotive business segment. This will effect revenue and profitability during Fiscal 2016. To offset this on a going basis Advantex has been given the grocery business segment but this will require ramp up time and likely not effect revenue and profitability until Fiscal 2017. Advantex is confident it has the ability to meet this challenge.
Highlights of Fiscal 2015 and Fiscal 2015 fourth Quarter financial performance are tabulated on the following page. Additional details are available in the Consolidated Financial Statements and the Management Discussion and Analysis available under the Company's profile on .
Fiscal 2015 compared to Fiscal 2014 (i)
Fiscal 2014 is transition year reflecting the change in the Company's CIBC program consequent to change in the CIBC-Aimia relationship. The result was CIBC selling about half of its aeroplan based credit card portfolio. Company signed TD in June 2014 and spent the better part of Fiscal 2015 in building a new loyalty marketing program - CIBC/TD program.
(i) The two tabulations are non-GAAP presentations and are provided to assist readers in understanding the Company's financial performance. The Fiscal year information is extracted from the Consolidated Statements of Income/(Loss) and Comprehensive Income/(Loss) per Audited Consolidated Financial Statements for Fiscal 2015.
The Q4 Fiscal 2015 and Q4 Fiscal 2014 information is extracted from section Fourth Quarter of Fiscal 2015 (Q4 F 2015) vs. Fourth Quarter of Fiscal 2014 (Q4 F 2014) per the Management Discussion and Analysis for the Fiscal years ended June 30, 2015 and 2014.
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 1,600 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: expectations of improvements in its financial performance, achieving sustainable profitability and the timing of such improvement and profitability; belief in its ability to re-set the Aeroplan program back on a growth path; 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 those listed under "General Risks and Uncertainties" and "Economic Dependence" in Advantex's Management's Discussion and Analysis for the twelve months ended June 30, 2015.
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 2a), Going concern (note 2b), Commitments and contingencies (note 15)
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.
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: 28.10.2015 - 21:16 Uhr
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News-ID 430236
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