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Advantex Announces Fiscal 2020 Third Quarter Results

TORONTO , June 26, 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 the three and nine months ended March 31, 2020 .

Highlights of financial results.


3 months ended March 31

9 months ended March 31


2020

2019

2020

2019


$

$

$

$

Revenues

$

741,963

$

1,387,652

$

2,431,942

$

5,046,639

Gross profit

$

577,847

$

992,956

$

1,859,805

$

3,831,370

Earnings from operations before depreciation, amortization and
interest

$

(9,102)

$

93,852

$

67,852

$

925,176

Profit (Loss)  from operations before depreciation, amortization
and non cash interest on debentures and lease 

$

(310,161)

$

(223,291)

$

(991,561)

$

32,661

Loss from Operations

$

(502,130)

$

(366,875)

$

(1,562,341)

$

(396,450)

Gain - Issuance of debentures

$

-

$

-

$

5,479

$

-

Reserve for transaction credits - Covid 19 Pandemic

$

(528,777)

$

-

$

(528,777)

$

-

Net Loss and Comprehensive loss

$

(1,030,907)

$

(366,875)

$

(2,085,639)

$

(396,450)


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 three and nine months ended March 31, 2020.

Due to COVID-19 Advantex has decided to postpone its annual shareholders meeting originally scheduled for July 13 , 2020.  It will be rescheduled in the fall 2020.

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 (unaudited)
(expressed in Canadian dollars)


Note

At March 
31, 2020


At June
30, 2019



$


$

Assets





Current assets





Cash and cash equivalents


$

214,512


$

119,636

Accounts receivable


91,329


110,630

Transaction credits 

5

4,758,984


9,473,999

Prepaid expenses and sundry assets


61,083


52,232



$

5,125,908


$

9,756,497






Non-current assets





Right of use asset

15

$

258,969


$

345,294

Property, plant and equipment


-


15,255



$

258,969


$

360,549






Total assets


$

5,384,877


$

10,117,046






Liabilities





Current liabilities





Loan payable 

6

$

4,789,768


$

8,416,076

Lease liability

15

123,247


113,854

Accounts payable and accrued liabilities


2,344,812


2,000,183

9% Non-convertibles debentures payable

7

6,343,136


5,622,595



$

13,600,963


$

16,152,708






Non-current Liabilities





Lease liability

15

$

171,873


$

266,658



$

171,873


$

266,658






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

15

(36,961,513)


(34,875,874)

Total deficiency


$

(8,387,959)


$

(6,302,320)






Total liabilities and deficiency


$

5,384,877


$

10,117,046






Going concern (note 2), Commitments and contingencies (note 11)





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 Loss and Comprehensive Loss (unaudited)
For the three and nine months ended March 31, 2020 and 2019
(expressed in Canadian dollars)


Note


Three months ended March 31


Nine months ended March 31




2020


2019


2020


2019




$


$


$


$











Revenues

14









Marketing activities



$

216,843


$

1,103,679


$

633,506


$

4,142,837

Interest income 



525,120


283,973


1,798,436


903,802




$

741,963


$

1,387,652


$

2,431,942


$

5,046,639

Direct expenses

13/14


164,116


394,696


572,137


1,215,269




577,847


992,956


1,859,805


3,831,370

Operating expenses










Selling and marketing

13/14


203,848


320,156


582,546


1,175,620

General and administrative

13/14


383,101


578,948


1,209,407


1,730,574

Earnings from operations before depreciation,
amortization and interest



(9,102)


93,852


67,852


925,176











Interest expense:










Stated interest expense - loan payable, and debentures

6/7


301,059


317,143


1,059,413


892,515

Interest - Lease 

15


10,464


-


31,392


-

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

7


152,100


136,754


437,853


409,315




(472,725)


(360,045)


(1,460,806)


(376,654)

Depreciation - Right of use asset

15


28,776


-


86,325


-

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



629


6,830


15,210


19,796

Loss and comprehensive loss



$

(502,130)


$

(366,875)


$

(1,562,341)


$

(396,450)

Gain - Issuance of debentures

7


$

-


$

-


$

5,479


$

-

Reserve for transaction credits - Covid 19 Pandemic

5


$

(528,777)


$

-


$

(528,777)


$

-

Net loss and comprehensive loss



$

(1,030,907)


$

(366,875)


$

(2,085,639)


$

(396,450)











Profit/(Loss) per share










Basic and Diluted

12


$

(0.00)


$

(0.00)


$

(0.00)


$

(0.00)











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







Advantex Marketing International Inc.
Consolidated Statements of Changes in Shareholders' Deficiency (unaudited)
For the three and nine months ended March 31, 2020 and 2019
(expressed in Canadian dollars)


Class A
preference
shares


Common
shares


Contributed
surplus


Accumulated
other
comprehe -
sive loss


Deficit


Total


$


$


$


$


$


$













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

-


-


-


-


(396,450)


(396,450)

Balance - March 31, 2019

$

3,815


$

24,526,740


$

4,090,382


$

(47,383)


$

(34,325,161)


$

(5,751,607)

























Balance - July 1, 2019

$

3,815


$

24,526,740


$

4,090,382


$

(47,383)


$

(34,875,874)


$

(6,302,320)

Net loss and comprehensive loss

-


-


-


-


(2,085,639)


(2,085,639)

Balance - March 31, 2020

$

3,815


$

24,526,740


$

4,090,382


$

(47,383)


$

(36,961,513)


$

(8,387,959)













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








Advantex Marketing International Inc.
Consolidated Statements of Cash Flow (unaudited)
For the three and nine months ended March 31, 2020 and 2019
(expressed in Canadian dollars)


Note

March 31, 2020


March 31, 2019



$


$






Operational activities





Net loss for the period


$

(2,085,639)


$

(396,450)

Adjustments for:





Interest - Lease 

15

31,392


-

Depreciation - Right of use asset

15

86,325


-

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


15,210


19,796

Accretion charge for debentures

7

245,026


222,932

Restructuring bonus for debentures

7

192,827


186,383

Fair value of debentures issued

7

(46,181)


-



(1,561,040)


32,661

Changes in items of working capital





Accounts receivable


19,301


(163,377)

Transaction credits 


4,715,015


(3,711,139)

Prepaid expenses and sundry assets


(8,851)


19,143

Accounts payable and accrued liabilities


344,629


(482,481)



5,070,094


(4,337,854)

Net cash provided by / (used in) operating activities


$

3,509,054


$

(4,305,193)






Investing activities





Payment for lease

15

$

(116,784)


$

-

Purchase of property, plant and equipment, and intangible
assets


45


(2,809)

Net cash (used in) investing activities


$

(116,739)


$

(2,809)






Financing activities





Proceeds - 9% Non-convertible debentures payable

7

$

200,000


$

-

Accrued and unpaid 9% debenture interest

7

$

128,869


$

125,547

Proceeds -  Loan payable

6

(3,626,308)


3,668,917

Net cash generated from / (used in) financing activities


$

(3,297,439)


$

3,794,464






Increase / (decrease) in cash and cash equivalents during
the period


$

94,876


$

(513,538)

Cash and cash equivalents at beginning of period


119,636


635,836

Cash and cash equivalents at end of period


$

214,512


$

122,298






Additional information





Interest paid 


$

623,091


$

766,969

For purposes of the cash flow statement, cash comprises 





Cash


$

214,512


$

122,298






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




SOURCE Advantex Marketing International Inc.


Cision

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