Advantex Marketing International Inc. announced its results for the fiscal
year ended June 30, 2002.
“Fiscal 2002 was an important transition year for Advantex, shifting away
from the Internet as a primary focus, and leveraging the strengths of our
basic business model to set the stage for future growth. Improvements in the
Company’s financial picture this year are particularly noteworthy in light of
the impact of world events in the fall of 2001 on the economy, the airline
industry, the media and marketing industry overall, and more specifically,
Advantex’s business,” stated G. Randall Munger, Chairman and Chief Executive
Annual consolidated revenue was $92,410,000, a 6.4% increase over the
previous year’s revenue of $86,842,000, principally from its card-based
The Company’s consolidated operating loss (EBITDA) on continuing
operations was $256,000, a $3,483,000 improvement compared to the operating
loss of $3,739,000 (inclusive of $4,144,000 pre-opening costs expensed) in
2001. The Company reported a loss from continuing operations of $2,547,000 or
$0.05 per share for the year compared to a loss from continuing operations of
$4,553,000 or $0.11 per share for fiscal 2001. The improvement is a function
of increased revenue and reduced expenses.
The year’s consolidated net loss was $3,264,000 or $0.07 per share
compared to a net loss of $4,883,000 or $0.12 per share the previous year. The
fiscal 2002 results reflect the write down of capital assets ($543,000), the
loss on discontinued operations ($717,000) and increased financing costs
($1,081,000) related to the debenture payable. As well, results were impacted
by the costs incurred to develop the planned 2003 retail expansion.
The Company had working capital of $2,700,000 compared to $2,800,000 in
2001; and cash on hand of approximately $5,900,000 compared to $4,700,000 in
2001. These results were achieved through the ongoing judicious management of
the Company’s operations and Balance Sheet items.
Revenue from the Advantex Group increased by 5% over the prior year and
divisional contribution increased by 10%, despite the economic slowdown and
declines in business travel affecting customer spending levels at
participating establishments. Gross margins were maintained for the second
consecutive year, an important accomplishment.
“I am pleased to report that the Company has had success in turning
around its Samplex business, a previous area of concern. Revenue from this
unit increased 27% while divisional contribution improved by 40%,” said Mr.
Munger. “We are very confident that Samplex will return to historic
profitability levels and enjoy renewed growth potential.”
The Company discontinued its unprofitable Samplex operations in the
United States at the beginning of the fiscal year. Comparative year-over year
figures have been adjusted and a note to the financial statements explains the
impact for the year.
The loss on discontinued operations was $717,000 or $0.02 per share
compared to a loss of $331,000 or $0.01 per share for the previous year. All
amounts reported in this press release exclude the discontinued operations
except where specifically indicated. The Company does not expect to incur
additional costs related to the discontinued operations as it has established
sufficient reserves to account for future expenses.
The market for Advantex services is expected to continue growing as more
and more data-rich companies seek to enhance the value of their customer
assets through the kinds of programs Advantex offers. The Company is poised
for growth in most business units, leveraging its infrastructure and service
competencies in Canada and the United States.
“Advantex has established itself as a leader in customer value
enhancement services throughout North America with a solid reputation for
quality programs, flawless delivery and valuable analytics and reporting,”
said Mr. Munger. “The long-term prospects for the Company are excellent. We
look forward to reporting on our progress on all fronts.”
About Advantex Marketing International Inc.
Advantex Marketing International Inc is a diversified marketing services
firm, an established leader in the delivery of innovative customer value
enhancement services. Advantex clients include leading organizations such as
Aeroplan, The Canadian Imperial Bank of Commerce, US Airways, The New York
Times, Shoppers Drug Mart, National Grocers, Wal-Mart and other major North
American corporations, as well as an extensive list of retailers, restaurants,
golf courses, and resorts. Advantex is a public company, traded on the Toronto
Stock Exchange under the symbol “ADX”. For additional information on Advantex,
please visit www.advantex.com.