Advantex Announces Fiscal 2020 Third Quarter Results
Jun 26, 2020, 17:07 ET
TORONTO, June 26, 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 and nine months ended March 31, 2020.
Highlights of financial results.
3 months ended March 31 |
9 months ended March 31 |
|||||||
2020 |
2019 |
2020 |
2019 |
|||||
$ |
$ |
$ |
$ |
|||||
Revenues |
$ |
741,963 |
$ |
1,387,652 |
$ |
2,431,942 |
$ |
5,046,639 |
Gross profit |
$ |
577,847 |
$ |
992,956 |
$ |
1,859,805 |
$ |
3,831,370 |
Earnings from operations before depreciation, amortization and |
$ |
(9,102) |
$ |
93,852 |
$ |
67,852 |
$ |
925,176 |
Profit (Loss) from operations before depreciation, amortization |
$ |
(310,161) |
$ |
(223,291) |
$ |
(991,561) |
$ |
32,661 |
Loss from Operations |
$ |
(502,130) |
$ |
(366,875) |
$ |
(1,562,341) |
$ |
(396,450) |
Gain - Issuance of debentures |
$ |
- |
$ |
- |
$ |
5,479 |
$ |
- |
Reserve for transaction credits - Covid 19 Pandemic |
$ |
(528,777) |
$ |
- |
$ |
(528,777) |
$ |
- |
Net Loss and Comprehensive loss |
$ |
(1,030,907) |
$ |
(366,875) |
$ |
(2,085,639) |
$ |
(396,450) |
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 and nine months ended March 31, 2020. |
Due to COVID-19 Advantex has decided to postpone its annual shareholders meeting originally scheduled for July 13, 2020. It will be rescheduled in the fall 2020.
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 March |
At June |
|||||
$ |
$ |
||||||
Assets |
|||||||
Current assets |
|||||||
Cash and cash equivalents |
$ |
214,512 |
$ |
119,636 |
|||
Accounts receivable |
91,329 |
110,630 |
|||||
Transaction credits |
5 |
4,758,984 |
9,473,999 |
||||
Prepaid expenses and sundry assets |
61,083 |
52,232 |
|||||
$ |
5,125,908 |
$ |
9,756,497 |
||||
Non-current assets |
|||||||
Right of use asset |
15 |
$ |
258,969 |
$ |
345,294 |
||
Property, plant and equipment |
- |
15,255 |
|||||
$ |
258,969 |
$ |
360,549 |
||||
Total assets |
$ |
5,384,877 |
$ |
10,117,046 |
|||
Liabilities |
|||||||
Current liabilities |
|||||||
Loan payable |
6 |
$ |
4,789,768 |
$ |
8,416,076 |
||
Lease liability |
15 |
123,247 |
113,854 |
||||
Accounts payable and accrued liabilities |
2,344,812 |
2,000,183 |
|||||
9% Non-convertibles debentures payable |
7 |
6,343,136 |
5,622,595 |
||||
$ |
13,600,963 |
$ |
16,152,708 |
||||
Non-current Liabilities |
|||||||
Lease liability |
15 |
$ |
171,873 |
$ |
266,658 |
||
$ |
171,873 |
$ |
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 |
(36,961,513) |
(34,875,874) |
||||
Total deficiency |
$ |
(8,387,959) |
$ |
(6,302,320) |
|||
Total liabilities and deficiency |
$ |
5,384,877 |
$ |
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 and nine months ended March 31, 2020 and 2019
(expressed in Canadian dollars)
Note |
Three months ended March 31 |
Nine months ended March 31 |
|||||||||||
2020 |
2019 |
2020 |
2019 |
||||||||||
$ |
$ |
$ |
$ |
||||||||||
Revenues |
14 |
||||||||||||
Marketing activities |
$ |
216,843 |
$ |
1,103,679 |
$ |
633,506 |
$ |
4,142,837 |
|||||
Interest income |
525,120 |
283,973 |
1,798,436 |
903,802 |
|||||||||
$ |
741,963 |
$ |
1,387,652 |
$ |
2,431,942 |
$ |
5,046,639 |
||||||
Direct expenses |
13/14 |
164,116 |
394,696 |
572,137 |
1,215,269 |
||||||||
577,847 |
992,956 |
1,859,805 |
3,831,370 |
||||||||||
Operating expenses |
|||||||||||||
Selling and marketing |
13/14 |
203,848 |
320,156 |
582,546 |
1,175,620 |
||||||||
General and administrative |
13/14 |
383,101 |
578,948 |
1,209,407 |
1,730,574 |
||||||||
Earnings from operations before depreciation, |
(9,102) |
93,852 |
67,852 |
925,176 |
|||||||||
Interest expense: |
|||||||||||||
Stated interest expense - loan payable, and debentures |
6/7 |
301,059 |
317,143 |
1,059,413 |
892,515 |
||||||||
Interest - Lease |
15 |
10,464 |
- |
31,392 |
- |
||||||||
Non-cash interest expense (accretion charges) and |
7 |
152,100 |
136,754 |
437,853 |
409,315 |
||||||||
(472,725) |
(360,045) |
(1,460,806) |
(376,654) |
||||||||||
Depreciation - Right of use asset |
15 |
28,776 |
- |
86,325 |
- |
||||||||
Depreciation of property, plant and equipment, and |
629 |
6,830 |
15,210 |
19,796 |
|||||||||
Loss and comprehensive loss |
$ |
(502,130) |
$ |
(366,875) |
$ |
(1,562,341) |
$ |
(396,450) |
|||||
Gain - Issuance of debentures |
7 |
$ |
- |
$ |
- |
$ |
5,479 |
$ |
- |
||||
Reserve for transaction credits - Covid 19 Pandemic |
5 |
$ |
(528,777) |
$ |
- |
$ |
(528,777) |
$ |
- |
||||
Net loss and comprehensive loss |
$ |
(1,030,907) |
$ |
(366,875) |
$ |
(2,085,639) |
$ |
(396,450) |
|||||
Profit/(Loss) per share |
|||||||||||||
Basic and Diluted |
12 |
$ |
(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 nine months ended March 31, 2020 and 2019
(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 |
- |
- |
- |
- |
(396,450) |
(396,450) |
|||||||||||
Balance - March 31, 2019 |
$ |
3,815 |
$ |
24,526,740 |
$ |
4,090,382 |
$ |
(47,383) |
$ |
(34,325,161) |
$ |
(5,751,607) |
|||||
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 |
- |
- |
- |
- |
(2,085,639) |
(2,085,639) |
|||||||||||
Balance - March 31, 2020 |
$ |
3,815 |
$ |
24,526,740 |
$ |
4,090,382 |
$ |
(47,383) |
$ |
(36,961,513) |
$ |
(8,387,959) |
|||||
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 nine months ended March 31, 2020 and 2019
(expressed in Canadian dollars)
Note |
March 31, 2020 |
March 31, 2019 |
||||
$ |
$ |
|||||
Operational activities |
||||||
Net loss for the period |
$ |
(2,085,639) |
$ |
(396,450) |
||
Adjustments for: |
||||||
Interest - Lease |
15 |
31,392 |
- |
|||
Depreciation - Right of use asset |
15 |
86,325 |
- |
|||
Depreciation of property, plant and equipment, and |
15,210 |
19,796 |
||||
Accretion charge for debentures |
7 |
245,026 |
222,932 |
|||
Restructuring bonus for debentures |
7 |
192,827 |
186,383 |
|||
Fair value of debentures issued |
7 |
(46,181) |
- |
|||
(1,561,040) |
32,661 |
|||||
Changes in items of working capital |
||||||
Accounts receivable |
19,301 |
(163,377) |
||||
Transaction credits |
4,715,015 |
(3,711,139) |
||||
Prepaid expenses and sundry assets |
(8,851) |
19,143 |
||||
Accounts payable and accrued liabilities |
344,629 |
(482,481) |
||||
5,070,094 |
(4,337,854) |
|||||
Net cash provided by / (used in) operating activities |
$ |
3,509,054 |
$ |
(4,305,193) |
||
Investing activities |
||||||
Payment for lease |
15 |
$ |
(116,784) |
$ |
- |
|
Purchase of property, plant and equipment, and intangible |
45 |
(2,809) |
||||
Net cash (used in) investing activities |
$ |
(116,739) |
$ |
(2,809) |
||
Financing activities |
||||||
Proceeds - 9% Non-convertible debentures payable |
7 |
$ |
200,000 |
$ |
- |
|
Accrued and unpaid 9% debenture interest |
7 |
$ |
128,869 |
$ |
125,547 |
|
Proceeds - Loan payable |
6 |
(3,626,308) |
3,668,917 |
|||
Net cash generated from / (used in) financing activities |
$ |
(3,297,439) |
$ |
3,794,464 |
||
Increase / (decrease) in cash and cash equivalents during |
$ |
94,876 |
$ |
(513,538) |
||
Cash and cash equivalents at beginning of period |
119,636 |
635,836 |
||||
Cash and cash equivalents at end of period |
$ |
214,512 |
$ |
122,298 |
||
Additional information |
||||||
Interest paid |
$ |
623,091 |
$ |
766,969 |
||
For purposes of the cash flow statement, cash comprises |
||||||
Cash |
$ |
214,512 |
$ |
122,298 |
||
The accompanying notes are an integral part of these consolidated financial statements |
||||||
SOURCE Advantex Marketing International Inc.
For further information: Mukesh Sabharwal, Vice-President and Chief Financial Officer, Tel: 416-560-5173, Email: [email protected]