Advantex Announces Fiscal 2024 Second Quarter Results

Continuing significant improvements in operational financial metrics

Core activity – Merchant Cash Advance program – Revenues increased 105.1% to $581,756 in second quarter and 69.9% to $1,107,445 in YTD second quarter.
Total Revenues increased 97.5% to $863,982 in second quarter and 57.7% to $1,612,160 in YTD second quarter.
Gross Profit increased 96.1% to $671,301 in second quarter and 66.5% to $1,259,088 in YTD second quarter.
Flat SG&A. $455,029 vs. $441,920 in second quarter and $866,311 vs. $861,052 in YTD second quarter.
Earnings from operations before depreciation, amortization and interest $216,272 in second quarter and $392,777 in YTD second quarter. Significant turnaround of $315,848 in second quarter and $497,824 in YTD second quarter from loss positions in the corresponding periods in the previous year.
Decrease in Loss from operations before non-cash expenses. Reduction of $151,043 to $258,564 in second quarter and $183,442 to $545,713 in YTD second quarter.

TORONTO, Feb. 28, 2024 /CNW/ – Advantex Marketing International Inc. (CSE:ADX) (“Advantex”), a leader in the merchant cash advance and loyalty marketing products for merchants, announced its results for three and six months ended December 31, 2023.

Post pandemic improvements in operational financial metrics which were gradual until fiscal year ended June 30, 2023, are accelerating and reflect execution of strategies to re-build Advantex business levels, initially to pre-pandemic levels and then to capitalize on a strengthening economy to achieve growth.

Advantex carries a higher debt load to support re-build of its business and for general corporate purposes, and this is a reason for increase in interest costs in the second quarter and YTD second quarter vs. corresponding periods in the previous year. This debt consists of fixed coupon non-convertible debentures which provide general working capital and a line of credit which carries a floating interest rate – a base rate plus prime rate – and which is used exclusively for growth of the core activity. The increase in prime rates during 2023 was the factor that hurt the financial performance for July-August 2023 period, but this was offset by reduction in the base rate from September 2023. Despite increase in interest costs Loss from operations before non-cash expenses was a reduction vs. corresponding periods in the previous year of $151,043 to $258,564 in second quarter and $183,442 to $545,713 in YTD second quarter.

The above improvement in Loss from operations before non-cash expenses is masked by increase in non-cash expenses. Increase in non-cash expenses is primarily on account of accretion charges which reflect outcome of prescribed accounting connected to the non-convertible debentures.

Highlights are provided in the tabulation in this news release comparing three and six months ended December 31, 2023, with three and six months ended December 31, 2022.

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 interim consolidated financial statements for three and six months ended December 31, 2023.

About Advantex

Advantex provides working capital to merchants. Advantex also provides specialized marketing programs that enable members of Aeroplan to earn Aeroplan points 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.sedarplus.com

Advantex Marketing International Inc.
Consolidated Statements of Financial Position (unaudited)
(expressed in Canadian dollars)

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