Business
Advantex reports results for Q3 2006; Cost reductions on target, strong demand for new cash funded marketing products
Advantex reports results for Q3 2006; Cost reductions on target, strong demand for new cash funded marketing products.
About this update from Advantex Marketing International Inc.
[{"type":"text","content":"\n\n\n\n\nADX: TSX\n\nTORONTO, May 15 /CNW/ - Advantex Marketing International Inc. (TSX:ADX)\ntoday reported its operating results for the three and nine month periods\nended March 31, 2006.\n\"The third quarter of fiscal 2006 was a pivotal period for Advantex\nduring which time the Company completed a number of critical corporate\ninitiatives,\" said G. Randall Munger, Chairman and Chief Executive Officer of\nAdvantex. \"Our focus is shifting, with greater emphasis on providing stronger\nworking capital products for our customers and this shift is being met with\nstrong demand.\"\n\nThe following highlights the achievements in the quarter:\n\n- The Company completed a Private Placement common share offering on\n March 14, 2006, raising $3,000,000. The size of the offering was\n increased from the original $2,000,000 to $3,000,000 as a result of\n over-subscriptions.\n\n- Proceeds from the Private Placement have enabled the Company to begin\n accelerating the growth of its Cash Funded Marketing programs. The\n Company's Purchased Receivables increased by $1.3 million or 68% over\n the corresponding quarter in the previous year, and by $ 1.1 million\n or 55%, compared with December 31, 2005. Purchased Receivables are a\n strong indicator of future revenue.\n\n- A seasonal Cash Funded Marketing product was successfully piloted with\n golf courses late in the quarter, advancing approximately $1 million.\n The positive response to this initiative sets the stage for a\n multifold increase in golf for the 2007 season as well as an\n aggressive launch into other seasonal categories.\n\n- The commitment to deliver $1.5 million of annualized cost reductions\n initiated during the second quarter is on target. During the quarter,\n Advantex realized ongoing General & Administrative and Selling and\n Marketing expense reductions of $365,000 compared with the\n corresponding period in the previous year, of which $53,000 was\n reinvested during the quarter in improved merchant marketing.\n\n- The sales organization was reorganized, consolidating the sales and\n sales service responsibilities. New sales personnel were added to\n address expansion into ethnic and geographic markets. These\n initiatives will increase productivity, customer focus and sales in\n future quarters.\n\nRevenue for the three months ended March 31, 2006 was $15,418...