488 0 Kommentare Advantex Announces Fiscal 2017 Second Quarter Results

TORONTO, ONTARIO--(Marketwired - Feb. 27, 2017) - Advantex Marketing International Inc. (CSE:ADX), a specialist in marketing loyalty-reward programs, announced its results for the three and six months ended December 31, 2016.

In December 2016 the Company reached agreement to extend maturity date of its 12% debentures to March 31, 2017 from December 31, 2016. The Company is working with its exclusive financial advisor to refinance the 12% debentures and seek growth funds to capitalize on expansion opportunities.

During the period the Company's focus was to stabilize operations in an environment where it has limited access to working capital.

Highlights of results for three and six months ended December 31, 2016 are set out in the table (¹). Additional details are available in the Consolidated Financial Statements and the Management Discussion and Analysis available under the Company's profile on www.sedar.com.

		3 months ended December 31				6 months ended December 31
			2016		2015		2016		2015
			$		$		$		$
Revenues		$	2,410,369	$	3,096,423	$	5,014,639	$	6,091,677
	Direct expenses - Cost of cardholder rewards and marketing merchants to cardholders		704,248		856,738		1,402,012		1,601,157
	Direct expenses - Expense for provision against delinquent accounts		132,010		169,843		311,604		308,493
Gross profit		$	1,574,111	$	2,069,842	$	3,301,023	$	4,182,027
	Selling and General & Administrative		1,439,997		1,541,888		2,838,248		3,189,701
Earnings from operations before depreciation, amortization and interest		$	134,114	$	527,954	$	462,775	$	992,326
	Cash interest on loan payable and debentures		334,622		396,865		673,616		780,336
Earnings (loss) from operations before depreciation, amortization and non-cash interest on debentures (accretion charges)		$	(200,508)	$	131,089	$	(210,841)	$	211,990
	Depreciation and amortization		37,099		103,045		115,944		234,152
	Non cash interest expense on debentures		-		58,146		60,227		115,612
Net loss and Comprehensive loss		$	(237,607)	$	(30,102)	$	(387,012)	$	(137,774)

⁽¹⁾ The tabulation is a non-GAAP presentation and is provided to assist readers in understanding the Company's financial performance. The information is extracted from consolidated financial statements for the three and six months ended December 31, 2016.

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 over 1,200 merchants in Canada and the US.

Advantex shares trade on the Canadian Securities Exchange under the symbol ADX. For more information, go to www.advantex.com.

Advantex Marketing International Inc.

Consolidated Statements of Financial Position (unaudited)

(expressed in Canadian dollars)


	Note		At December		At June
			31, 2016		30, 2016
			$		$
Assets
Current assets
Cash and cash equivalents		$	370,441	$	658,678
Accounts receivable			248,995		425,402
Transaction credits	5		5,698,419		7,352,262
Inventory	6		39,475		39,914
Prepaid expenses and sundry assets			103,289		103,684
		$	6,460,619	$	8,579,940

Non-current assets
Property, plant and equipment		$	93,714	$	116,049
Intangible assets			26,312		119,921
		$	120,026	$	235,970

Total assets		$	6,580,645	$	8,815,910

Liabilities
Current liabilities
Loan payable	7	$	4,090,052	$	5,533,267
Accounts payable and accrued liabilities			3,091,713		3,556,978
12% Non-convertible debentures payable	8		5,159,000		5,098,773
		$	12,340,765	$	14,189,018

Shareholders' deficiency
Share capital	9	$	24,530,555	$	24,530,555
Contributed surplus			4,090,382		4,090,382
Accumulated other comprehensive loss			(47,383)		(47,383)
Deficit			(34,333,674)		(33,946,662)
Total deficiency		$	(5,760,120)	$	(5,373,108)

Total liabilities and deficiency		$	6,580,645	$	8,815,910

Economic and Financial dependence (note 2a), Going concern (note 2b), Commitments and contingencies (note 12)

The accompanying notes are an integral part of these consolidated financial statements

Approved by the Board

Director: William Polley

Director: Kelly Ambrose

Advantex Marketing International Inc.

Consolidated Statements of Loss and Comprehensive Loss (unaudited)

For the three and six months ended December 31, 2016 and 2015

(expressed in Canadian dollars)

	Note	Three months ended December 31					Six months ended December 31
			2016		2015		2016		2015
			$		$		$		$

Revenues	15	$	2,410,369	$	3,096,423	$	5,014,639	$	6,091,677
Direct expenses	14/15		836,258		1,026,581		1,713,616		1,909,650
			1,574,111		2,069,842		3,301,023		4,182,027
Operating expenses
Selling and marketing	14/15		492,153		692,320		997,860		1,431,748
General and administrative	14/15		947,844		849,568		1,840,388		1,757,953
Earnings from operations before depreciation, amortization and interest			134,114		527,954		462,775		992,326

Interest expense:
Stated interest expense - loan payable, and debentures	7/8		334,622		396,865		673,616		780,336
Non-cash interest expense on debentures	8		-		58,146		60,227		115,612
			(200,508)		72,943		(271,068)		96,378
Depreciation of property, plant and equipment, and amortization of intangible assets			37,099		103,045		115,944		234,152
Net loss and comprehensive loss		$	(237,607)	$	(30,102)	$	(387,012)	$	(137,774)

Loss per share
Basic and Diluted	13	$	(0.00)	$	(0.00)	$	(0.00)	$	(0.00)

The accompanying notes are an integral part of these consolidated financial statements

Advantex Marketing International Inc.

Consolidated Statements of Changes in Shareholders' Deficiency (unaudited)

For the three and six months ended December 31, 2016 and 2015

(expressed in Canadian dollars)

	Class A preference shares			Common shares		Contributed surplus		Accumulated other comprehensive loss	Deficit			Total
		$		$		$		$	$			$

Balance - July 1, 2015	$	3,815	$	24,526,740	$	4,090,382	$	(47,383)	$	(33,039,219)	$	(4,465,665)
Net loss and comprehensive loss		-		-		-		-		(137,774)		(137,774)
Balance - December 31, 2015	$	3,815	$	24,526,740	$	4,090,382	$	(47,383)	$	(33,176,993)	$	(4,603,439)


Balance - July 1, 2016	$	3,815	$	24,526,740	$	4,090,382	$	(47,383)	$	(33,946,662)	$	(5,373,108)
Net loss and comprehensive loss		-		-		-		-		(387,012)		(387,012)
Balance - December 31, 2016	$	3,815	$	24,526,740	$	4,090,382	$	(47,383)	$	(34,333,674)	$	(5,760,120)

The accompanying notes are an integral part of these consolidated financial statements

Advantex Marketing International Inc.

Consolidated Statements of Cash Flow (unaudited)

For the three and six months ended December 31, 2016 and 2015

(expressed in Canadian dollars)

		Note		At December 31, 2016		December 31, 2015
				$		$

Operational activities
Net loss for the period			$	(387,012)	$	(137,774)
Adjustments for:
Depreciation of property, plant and equipment, and amortization of intangible assets				115,944		234,152
Accretion charge for debentures		8		60,227		115,612
				(210,841)		211,990
Changes in items of working capital
	Accounts receivable			176,407		(200,148)
	Transaction credits			1,653,843		(1,214,158)
	Inventory			439		101,276
	Prepaid expenses and sundry assets			395		(44,730)
	Accounts payable and accrued liabilities			(465,265)		(317,175)
				1,365,819		(1,674,935)
Net cash provided by (used in) operating activities			$	1,154,978	$	(1,462,945)

Investing activities
Purchase of property, plant and equipment, and intangible assets			$	-	$	(41,983)
Net cash (used in) investing activities			$	-	$	(41,983)

Financing activities
Proceeds from loan payable		7	$	(1,443,215)	$	842,532
Net cash generated from / (used in) financing activities			$	(1,443,215)	$	842,532

Increase / (decrease) in cash and cash equivalents during the period			$	(288,237)	$	(662,396)
Cash and cash equivalents at beginning of period				658,678		1,162,609
Cash and cash equivalents at end of period			$	370,441	$	500,213

Additional information
Interest paid			$	698,988	$	778,639
For purposes of the cash flow statement, cash comprises
	Cash		$	370,441	$	495,213
	Term deposits			-		5,000
			$	370,441	$	500,213