Advantex Announces Net Profit of $261,000 for Three Months Ended September 30, 2011
- Net Profit surpasses corresponding period previous year; up $111,000 - Merchant participation in Retail programs up 33% - Revenues from Retail programs up $443,000 (13 % +) - Contribution from Operations before amortization and interest (EBITDA(i)) up $101,000 (12 % +)
(firmenpresse) - TORONTO, ONTARIO -- (Marketwire) -- 12/20/11 -- Advantex Marketing International Inc. ("Advantex" or the "Company") (CNSX: ADX), a leading specialist in merchant funding and loyalty marketing programs, today announced its results for the three months ended September 30, 2011 ("Q1 F 2012"). All amounts are in Canadian dollars unless otherwise noted.
"We are pleased to report a return to net profit. The strong results from Retail programs for Q1 F 2012 are a vindication of our belief that during fiscal year ended June 30, 2011 the Company had set up a solid platform to grow its merchant base, and ensure growth in its future revenues and profitability," said Kelly Ambrose, Advantex President and Chief Executive Officer.
"In the coming quarters we expect to introduce new product offerings to the small merchant marketplace, that will enable merchants to market their goods and services in new mediums, and save money in their inputs. We expect these new product offerings to generate incremental revenues for the Company," said Mr. Ambrose.
The Company's revenues from Retail programs increased 13 % during Q1 F 2012 compared with Q1 F 2011, a reflection of increased merchant participation in the programs. The Company's premier product, Advance Purchase Marketing ("APM"), generated revenues of $2.6 million in Q1 F 2012 compared with $2.3 million during Q1 F 2011, and represents 68 % and 67 % of the Company's revenues for Q1 F 2012 and Q1 F 2011 respectively.
Stated interest cost (cash interest paid or payable) for Q1 F 2012 was $0.5 million compared with $0.4 million for Q1 F 2011. The higher dollar cost reflects both an increase in the utilization of the line of credit facility (Loan payable on the balance sheet) which the Company utilized to expand its APM program business, and increase in the coupon of the convertible debenture re-financed in May, 2011 ($6.0 million Convertible debenture with coupon of 10% re-financed as $6.462 million Non-convertible debenture at a coupon of 12%). The re-financing was done to stabilize the Company's access to capital.
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) model. Advantex partners include more than 1,150 merchants; CIBC; and Aeroplan. 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 the strong results from Retail programs for Q1 F 2012 are a vindication of its belief that during fiscal year ended June 30, 2011 the Company had set up a solid platform to grow its merchant base, and ensure growth in its future revenues and profitability; the Company's expectation to the timing of the launch of its new product offerings; the Company's expectation to the acceptance of its new product offerings by the small merchants; the Company's expectation of incremental revenue from the new product offerings; the Company's belief that the re-financing of debenture was done to stabilize its access to capital; the Company's ability to increase merchant participation in its Retail programs; 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 months ended September 30, 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 months ended September 30, 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: 20.12.2011 - 21:05 Uhr
Sprache: Deutsch
News-ID 98924
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