Advantex Announces Fiscal 2020 First Quarter Results
TORONTO, May 21, 2020 /CNW/ - Advantex Marketing International Inc. (CSE: ADX) ("Advantex"), a leader in the merchant cash advance and loyalty marketing products for merchants, announced its results for the three months ended September 30, 2019.
Highlights of financial results.
3 months |
3 months |
|||
$ |
$ |
|||
Revenues |
$ |
799,043 |
$ |
1,846,134 |
Gross profit |
$ |
635,153 |
$ |
1,401,623 |
Earnings from operations before depreciation, amortization and interest |
$ |
57,424 |
$ |
396,087 |
Profit (Loss) from operations before depreciation, amortization and non cash interest |
$ |
(343,774) |
$ |
116,876 |
Net loss and Comprehensive loss |
$ |
(532,406) |
$ |
(24,747) |
Fuller details available in the Consolidated Financial Statements and MD&A available under Advantex's profile on www.sedar.com |
||||
The above tabulation is a non-GAAP presentation and is provided to assist readers in understanding Advantex's financial performance. The information is extracted from consolidated financial statements for three months ended September 30, 2019. |
About Advantex:
Advantex provides working capital to merchants. Advantex also provides specialized marketing programs that enable members of Aeroplan to earn frequent-flyer miles at participating merchants.
Advantex shares trade on the Canadian Securities Exchange under the symbol ADX. For more information go to Advantex's profile on www.sedar.com
Advantex Marketing International Inc.
Consolidated Statements of Financial Position (unaudited)
(expressed in Canadian dollars)
Note |
At September |
At June |
||||
$ |
$ |
|||||
Assets |
||||||
Current assets |
||||||
Cash and cash equivalents |
$ |
73,417 |
$ |
119,636 |
||
Accounts receivable |
81,822 |
110,630 |
||||
Transaction credits |
5 |
8,049,951 |
9,473,999 |
|||
Prepaid expenses and sundry assets |
49,298 |
52,232 |
||||
$ |
8,254,488 |
$ |
9,756,497 |
|||
Non-current assets |
||||||
Right of use asset |
15 |
$ |
316,520 |
$ |
345,294 |
|
Property, plant and equipment |
6,450 |
15,255 |
||||
$ |
322,970 |
$ |
360,549 |
|||
Total assets |
$ |
8,577,458 |
$ |
10,117,046 |
||
Liabilities |
||||||
Current liabilities |
||||||
Loan payable |
6 |
$ |
7,237,721 |
$ |
8,416,076 |
|
Lease liability |
116,985 |
113,854 |
||||
Accounts payable and accrued liabilities |
2,585,831 |
2,526,829 |
||||
9% Non-convertibles debentures payable |
7 |
5,236,583 |
5,095,949 |
|||
$ |
15,177,121 |
$ |
16,152,708 |
|||
Non-current Liabilities |
||||||
Lease liability |
15 |
$ |
235,064 |
$ |
266,658 |
|
$ |
235,064 |
$ |
266,658 |
|||
Shareholders' deficiency |
||||||
Share capital |
8 |
$ |
24,530,555 |
$ |
24,530,555 |
|
Contributed surplus |
4,090,382 |
4,090,382 |
||||
Accumulated other comprehensive loss |
(47,383) |
(47,383) |
||||
Deficit |
15 |
(35,408,280) |
(34,875,874) |
|||
Total deficiency |
$ |
(6,834,726) |
$ |
(6,302,320) |
||
Total liabilities and deficiency |
$ |
8,577,458 |
$ |
10,117,046 |
||
Going concern (note 2), Commitments and contingencies (note 11) |
||
The accompanying notes are an integral part of these consolidated financial statements |
||
Approved by the Board |
|||||
Director: Signed "Marc Lavine" |
Director: Signed "Kelly Ambrose" |
||||
Marc Lavine |
Kelly Ambrose |
||||
Advantex Marketing International Inc.
Consolidated Statements of Loss and Comprehensive Loss (unaudited)
For the three months ended September 30, 2019 and 2018
(expressed in Canadian dollars)
Note |
2019 |
2018 |
||||
$ |
$ |
|||||
Revenues |
14 |
|||||
Marketing activities |
$ |
179,583 |
1,545,389 |
|||
Interest income |
619,460 |
300,745 |
||||
$ |
799,043 |
$ |
1,846,134 |
|||
Direct expenses |
13/14 |
163,890 |
444,511 |
|||
635,153 |
1,401,623 |
|||||
Operating expenses |
||||||
Selling and marketing |
13/14 |
187,863 |
467,419 |
|||
General and administrative |
13/14 |
389,867 |
538,117 |
|||
Earnings from operations before depreciation, amortization and interest |
57,424 |
396,087 |
||||
Interest expense: |
||||||
Stated interest expense - loan payable, and debentures |
6/7 |
401,197 |
279,211 |
|||
Interest - Lease |
15 |
10,464 |
- |
|||
Non-cash interest expense (accretion charges) and restructuring bonus related to debentures |
7 |
140,634 |
135,675 |
|||
(494,871) |
(18,799) |
|||||
Depreciation - Right of use asset |
15 |
28,775 |
- |
|||
Depreciation of property, plant and equipment, and amortization of intangible assets |
8,760 |
5,948 |
||||
Net loss and comprehensive loss |
$ |
(532,406) |
$ |
(24,747) |
||
Loss per share |
||||||
Basic and Diluted |
12 |
$ |
(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 months ended September 30, 2019 and 2018
(expressed in Canadian dollars)
Class A |
Common |
Contributed |
Accumulated |
Deficit |
Total |
||||||||||||
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||
Balance - July 1, 2018 |
$ |
3,815 |
$ |
24,526,740 |
$ |
4,090,382 |
$ |
(47,383) |
$ |
(33,928,711) |
$ |
(5,355,157) |
|||||
Net loss and comprehensive loss |
- |
- |
- |
- |
(24,747) |
(24,747) |
|||||||||||
Balance - September 30, 2018 |
$ |
3,815 |
$ |
24,526,740 |
$ |
4,090,382 |
$ |
(47,383) |
$ |
(33,953,458) |
$ |
(5,379,904) |
|||||
Balance - July 1, 2019 |
$ |
3,815 |
$ |
24,526,740 |
$ |
4,090,382 |
$ |
(47,383) |
$ |
(34,875,874) |
$ |
(6,302,320) |
|||||
Net loss and comprehensive loss |
- |
- |
- |
- |
(532,406) |
(532,406) |
|||||||||||
Balance - September 30, 2019 |
$ |
3,815 |
$ |
24,526,740 |
$ |
4,090,382 |
$ |
(47,383) |
$ |
(35,408,280) |
$ |
(6,834,726) |
|||||
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 months ended September 30, 2019 and 2018
(expressed in Canadian dollars)
Note |
2019 |
2018 |
||||
$ |
$ |
|||||
Operational activities |
||||||
Net loss for the period |
$ |
(532,406) |
$ |
(24,747) |
||
Adjustments for: |
||||||
Interest - Lease |
15 |
10,464 |
- |
|||
Depreciation - Right of use asset |
15 |
28,775 |
- |
|||
Depreciation of property, plant and equipment, and amortization of intangible assets |
8,760 |
5,948 |
||||
Accretion charge for debentures |
7 |
78,053 |
73,094 |
|||
Restructuring bonus for debentures |
7 |
62,581 |
62,581 |
|||
(343,774) |
116,876 |
|||||
Changes in items of working capital |
||||||
Accounts receivable |
28,808 |
(43,743) |
||||
Transaction credits |
1,424,048 |
(334,976) |
||||
Prepaid expenses and sundry assets |
2,934 |
1,084 |
||||
Accounts payable and accrued liabilities |
59,002 |
(275,826) |
||||
1,514,792 |
(653,461) |
|||||
Net cash generated by (used in) operating activities |
$ |
1,171,019 |
$ |
(536,585) |
||
Investing activities |
||||||
Payment for lease |
15 |
$ |
(38,928) |
$ |
- |
|
Purchase of property, plant and equipment, and intangible assets |
45 |
(2,810) |
||||
Net cash (used in) investing activities |
$ |
(38,883) |
$ |
(2,810) |
||
Financing activities |
||||||
Utilization of loan payable |
6 |
$ |
(1,178,355) |
$ |
206,096 |
|
Net cash generated from financing activities |
$ |
(1,178,355) |
$ |
206,096 |
||
(Decrease)/Increase in cash and cash equivalents during the period |
$ |
(46,219) |
$ |
(333,299) |
||
Cash and cash equivalents at beginning of the period |
119,636 |
635,836 |
||||
Cash and cash equivalents at end of the period |
$ |
73,417 |
$ |
302,537 |
||
Additional information |
||||||
Interest paid |
$ |
257,091 |
$ |
153,105 |
||
For purposes of the cash flow statement, cash comprises |
||||||
Cash |
$ |
73,417 |
$ |
302,537 |
||
The accompanying notes are an integral part of these consolidated financial statements |
||||||
SOURCE Advantex Marketing International Inc.
Mukesh Sabharwal, Vice-President and Chief Financial Officer, Tel: 416-560-5173, Email: [email protected]
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