Business
Advantex reports $0.8 million improvement in operating results for fiscal 2006; continued profitability improvements expected in fiscal 2007
Advantex reports $0.8 million improvement in operating results for fiscal 2006; continued profitability improvements expected in fiscal 2007.
About this update from Advantex Marketing International Inc.
[{"type":"text","content":"\n\n\n\n\nADX: TSX\n\nTORONTO, Sept. 28 /CNW/ - Advantex Marketing International Inc. (TSX:ADX)\ntoday announced its results for the fiscal year ended June 30, 2006.\n\"We are very pleased with the progress that the Company has made on both\nfinancial and operational fronts,\" said G. Randall Munger, Chairman and Chief\nExecutive Officer of Advantex. \"The positive impact of these changes were not\nfully evident in the financial results of Fiscal 2006 but are the driving\nforce behind the quarter over quarter improvements that we expect to report\nthroughout Fiscal 2007.\"\nThe following are highlights of the Company's accomplishments during\nFiscal 2006:\n\n>\n\n\"The significant operational improvements made over the past year are\nexpected to positively impact upon the Company's financial performance in\nFiscal 2007,\" said Kelly E. Ambrose, President and Chief Operating Officer of\nAdvantex. \"We've lowered our operating cost structure, went to market with our\nnew Advance Purchase Marketing product offering for merchants, and implemented\norganizational efficiencies, all of which enable us to scale for growth and\naccelerate our progress towards profitability.\"\n\nFinancial Performance\n\nThe positive impact of the new Advance Purchase Marketing program is\nreflected in the growth of Transaction Credits on the Balance Sheet.\nTransaction Credits at June 30, 2006 were $3.9 million, an increase of\n$1.6 million or 66% over the previous year. Transaction Credits represent the\nCompany's rights to cash flow from future designated credit card transactions\nat its Merchant Partners and are a likely indicator of future profitability.\nResults from operations improved by $0.8 million year over year;\n$2.3 million loss from operations in Fiscal 2006 compared to a $3.1 million\nloss in operations from Fiscal 2005, after adjusting for non-recurring factors\nin both years. Before adjustments, the Company's Net Loss was $2.5 million\n($0.04 per share) compared with $1.0 million ($0.02 per share) in Fiscal 2005.\nNet Revenue from the Canadian Credit Card Loyalty program began to rise\nin the final quarter of the fiscal year over the corresponding period in the\nprevious year, corresponding to the introduction of the new Advance Purchase\nMarketing program. The Company expects growth in Net Revenue from its Canadian\nCredit Card Loyalty ...