Business
Advantex reports first quarter results for fiscal 2006
Advantex reports first quarter results for fiscal 2006.
About this update from Advantex Marketing International Inc.
[{"type":"text","content":"\n\n\n\n\nADX: TSX\n\nTORONTO, Nov. 11 /CNW/ - Advantex Marketing International Inc. (TSX:ADX)\ntoday reported first quarter results for the three months ended September 30,\n2005.\nSales and Fees for the three-month period ended September 30, 2005 were\n$17.9 million, compared with $17.7 million in the same period in the previous\nyear. Gross Contribution (defined as Sales and Fees less Direct Costs) was\n$1.5 million for the quarter, compared to $1.6 million last year. Operating\nexpenses, consisting of selling, general and administrative costs were\n$2.2 million, compared to $2.4 million last year. The Net Loss from Continuing\nOperations for the three-month periods ended September 30, 2005 and 2004 was\n$1.0 million. The Net Loss was $0.9 million, compared to $0.8 million last\nyear. As at September 30, 2005, the Company had Cash and Cash Equivalents of\n$2.3 million compared to $3.0 million at June 30, 2005. Working capital as at\nSeptember 30, 2005 was $2.3 million versus $3.0 million at June 30, 2005.\n\"The year-over-year results do not reflect the recent positive changes\nthat have taken place, and are continuing to be made, in the business,\" said\nG. Randall Munger, Chairman and Chief Executive Officer of Advantex. \"A major\nrestructuring of the business began in October, beginning with the appointment\nof Kelly Ambrose to the position of President and Chief Operating Officer.\nKelly has had extensive experience in managing companies for growth and\nprofitability. In November, Advantex announced that annual operating costs\nwould be cut by more than $1.5 million through selective staff reductions,\nlower occupancy costs and reductions in other overhead expenses. The positive\nimpact of these changes will begin to be seen in the third and fourth quarters\nof this reporting year ending June 30, 2006.\"\n\"In addition to the restructuring and cost reductions, revenue\nenhancement initiatives are also underway, including an expanded merchant\nworking capital program offered in connection with the Company's merchant\nloyalty programs. The merchant working capital program enables us to expand\nour merchant partner base and increase profit margins.\"\n\nAbout Advantex Marketing International Inc.\nAdvantex Marketing International Inc. is a leading marketing services\ncompany, specializing in integrated marketing solutions f...