Business
Advantex announces Q2 2006 results and recent improvements in core business
Advantex announces Q2 2006 results and recent improvements in core business.
About this update from Advantex Marketing International Inc.
[{"type":"text","content":"\n\n\n\n\nADX: TSX\n\nTORONTO, Feb. 10 /CNW/ - Advantex Marketing International Inc. (TSX:ADX)\ntoday reported its operating results for the three and six months ended\nDecember 31, 2005, along with an update on its restructuring initiatives.\nSales and Fees for the three-month period were $18,028,000. There was a\n$154,000 year-over-year revenue improvement in the Company's Canadian Credit\nCard Loyalty and Online Shopping Mall programs. Net Loss from Continuing\nOperations for the quarter ending December 31, 2005 was $604,000 compared to\n$449,000 for the same period in the previous year. The loss included $205,000\nof additional costs associated with the restructuring initiative that\ncommenced in November 2005. On a comparative basis, after removing the\nrestructuring costs, net results for the quarter were flat year over year.\n\"The abovementioned restructuring initiative will result in annualized\ncost savings of $1.5 - $1.8 million compared with fiscal 2005. The benefits\nfrom these cost savings measures will begin to be reflected in the next and\nsubsequent reporting periods,\" said G. Randall Munger, Chairman and Chief\nExecutive Officer of Advantex.\n\"During the quarter, Advantex developed and implemented its plan to begin\naggressively growing its Canadian Credit Card Loyalty programs,\" said\nMr. Munger. \"Improvements introduced are being positively received by both\ncurrent and prospective merchant partners. Several new signature merchants in\nToronto including Thuet, Lobby, Sassafraz and Chiado Restaurant, recently\njoined or rejoined the program. Cioppino's Mediterranean Grill, one of\nVancouver's finest and most popular dining establishments, and The Lord Elgin\nHotel in Ottawa are also among our newest participants.\"\nFor the six months ended December 31, 2005, Sales and Fees were\n$35,926,000. The year-over-year revenue improvement from the Company's core\nprograms was $568,000. Net Loss from Continuing Operations for the six months\nending December 31, 2005 was $1,562,000 versus $1,468,000 in the previous\nyear.\nFiscal 2005 reflects certain non-recurring fees and events. Excluding the\nimpact of these factors, which amounted to $160,000 for the quarter and\n$303,000 year to date, and the restructuring costs incurred in the current\nyear, the Company's results for Q2 2006 improved by $210,000 year-over-yea...