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Advantex Announces Fiscal 2019 Results

TORONTO , May 21, 2020 /CNW/ - Advantex Marketing International Inc. (ADX.CN) ("Advantex"), a leader in the merchant cash advance and loyalty marketing products for merchants, announced its results for twelve months ended June 30, 2019 .

Highlights of financial results.



Fiscal 2019


Fiscal 2018


Change


Change





$


$


%

Revenues

$

6,100,530


$

7,586,757


-$

1,486,227


-19.6%

Direct expenses











Cost of cardholder rewards and marketing in connection with merchant based loyalty programs

$

1,279,228


$

2,085,541


-$

806,313


-38.7%

Expense for provision against delinquent accounts

$

287,646


$

289,429


-$

1,783


-0.6%

Gross profit

$

4,533,656


$

5,211,787


-$

678,131


-13.0%

Selling and General & Administrative expenses

$

3,570,588


$

4,293,872


-$

723,284


-16.8%

Earnings from operations before depreciation, amortization and interest

$

963,068


$

917,915


$

45,153


4.9%

Stated interest expense - loan payable, and debentures

$

1,297,092


$

1,183,185


$

113,907


9.6%

(Loss) from operations before depreciation, amortization and non-cash interest

$

(334,024)


$

(265,270)


$

(68,754)


-25.9%

Depreciation, amortization and non-cash interest expense

$

577,921


$

305,535


$

272,386



(Loss) and comprehensive (loss) before non-recurring item

$

(911,945)


$

(570,805)


$

(341,140)


-59.8%

Non-recurring item - gain on debt restructuring

$

-


$

1,795,103


-$

1,795,103



Net profit/(loss) and comprehensive profit/(loss)

$

(911,945)


$

1,224,298


$

(2,136,243)


-174.5%












Fuller details available in the Consolidated Financial Statements and MD&A available under Advantex's profile on www.sedar.com


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 twelve months ended June 30, 2019.

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
(expressed in Canadian dollars)


Note



June 30, 2019


June 30, 2018





$


$

Assets








Current assets








Cash and cash equivalents



$

119,636


$

635,836

Accounts receivable

11 a



110,630



112,322

Transaction credits 

11 a



9,473,999



5,592,426

Prepaid expenses and sundry assets




52,232



79,349




$

9,756,497


$

6,419,933









Non-current assets








Property, plant and equipment

5


$

15,255


$

43,969




$

15,255


$

43,969









Total assets



$

9,771,752


$

6,463,902









Liabilities








Current liabilities








Loan payable 

6


$

8,416,076


$

4,427,390

Accounts payable and accrued liabilities




2,526,829



2,843,718

9% Non-convertible debentures payable

7



5,095,949



-




$

16,038,854


$

7,271,108









Non-current liabilities








9% Non-convertible debentures payable

7


$

-


$

4,547,951




$

-


$

4,547,951









Total liabilities



$

16,038,854


$

11,819,059









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




(34,840,656)



(33,928,711)

Total deficiency



$

(6,267,102)


$

(5,355,157)









Total liabilities and deficiency



$

9,771,752


$

6,463,902









Going concern (note 2), Commitments and contingencies (note 13)


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 Profit/(Loss) and Comprehensive Profit/(Loss)
For the years ended June 30, 2019 and 2018
(expressed in Canadian dollars)


Note



2019



2018





$



$









Revenues

17







Marketing activities



$

4,710,413


$

6,509,756

Interest income 




1,390,117



1,077,001





6,100,530


$

7,586,757

Direct expenses

16/17



1,566,874



2,374,970





4,533,656



5,211,787

Operating expenses








Selling and marketing

16/17



1,329,303



1,881,386

General and administrative

16/17



2,241,285



2,412,486

Earnings from operations before depreciation, amortization and interest




963,068



917,915









Interest expense:








Stated interest expense - loan payable, and debentures

6/7



1,297,092



1,183,185

Non-cash interest expense (accretion charges) and restructuring bonus related to debentures

7



547,998



272,562





(882,022)



(537,832)

Depreciation of property, plant and equipment, and amortization of intangible assets

5



29,923



32,973

(Loss) and comprehensive (loss) before non-recurring item



$

(911,945)


$

(570,805)

Gain on debt restructuring

7


$

-


$

1,795,103

Net profit/(loss) and comprehensive profit/(loss)



$

(911,945)


$

1,224,298









Profit/(Loss) per share








Basic and Diluted

15


$

-


$

-









The accompanying notes are an integral part of these consolidated financial statements

Advantex Marketing International Inc.
Consolidated Statements of Changes in Shareholders' Deficiency
For the years ended June 30, 2019 and June 30, 2018
(expressed in Canadian dollars)


Class A
preference
shares



Common
shares

Contributed
surplus


Accumulated
other
comprehensive
loss


Deficit


Total


$



$

$


$


$


$





































Balance - July 1, 2017

$

3,815


$

24,526,740


$

4,090,382


$

(47,383)


$

(35,153,009)


$

(6,579,455)

Net profit and comprehensive profit


-



-



-



-



1,224,298



1,224,298

Balance - June 30, 2018

$

3,815


$

24,526,740


$

4,090,382


$

(47,383)


$

(33,928,711)


$

(5,355,157)





































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)


-



-



-



-



(911,945)



(911,945)

Balance - June 30, 2019

$

3,815


$

24,526,740


$

4,090,382


$

(47,383)


$

(34,840,656)


$

(6,267,102)




















The accompanying notes are an integral part of these consolidated financial statements

Advantex Marketing International Inc.
Consolidated Statements of Cash Flow
For the years ended June 30, 2019 and 2018
(expressed in Canadian dollars)


Note


June 30,
2019


June 30, 
2018




$


$

Operational activities








Net profit/(loss) for the year



$

(911,945)


$

1,224,298

Adjustments for:








Depreciation of property, plant and equipment, and amortization of intangible assets

5



29,923



32,973

Accretion charge for debentures

7



299,714



142,638

Restructuring bonus for debentures

7



248,284



129,924

Non-cash portion of gain on debt restructuring

7



-



(1,283,611)





(334,024)



246,222

Changes in items of working capital








Accounts receivable




1,692



68,195

Transaction credits 




(3,881,573)



(42,714)

Inventory




-



35,038

Prepaid expenses and sundry assets




27,117



3,064

Accounts payable and accrued liabilities




(316,889)



(388,416)





(4,169,653)



(324,833)

Net cash (used in) operating activities



$

(4,503,677)


$

(78,611)









Investing activities








Purchase of property, plant and equipment, and intangible assets



$

(1,209)


$

(3,879)

Net cash (used in) investing activities



$

(1,209)


$

(3,879)









Financing activities








Proceeds - 9% Non-convertibles debentures

7


$

-


$

400,000

Increase/(Decrease) of loan payable

6


$

3,988,686


$

(49,031)

Net cash generated from financing activities



$

3,988,686


$

350,969









Increase/(Decrease) in cash and cash equivalents during the year



$

(516,200)


$

268,479

Cash and cash equivalents at beginning of the year




635,836



367,357

Cash and cash equivalents at end of the year



$

119,636


$

635,836









Additional information








Interest paid 



$

1,046,810


$

859,720









Cash and cash equivalents



$

119,636


$

635,836









The accompanying notes are an integral part of these consolidated financial statements

 

SOURCE Advantex Marketing International Inc.


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