/EINPresswire.com/ -- TORONTO, ONTARIO--(Marketwired - May 25, 2017) - Advantex Marketing International Inc. (CSE:ADX)(CSE:ADX.CN)(CNSX:ADX), a specialist in marketing loyalty-reward programs, announced its results for the three and nine months ended March 31, 2017.

During the period the Company's focus was to stabilize operations in an environment where it has limited access to working capital. The Company is working with its exclusive financial advisor to refinance the 12% debentures, maturing June 30, 2017, and seek growth funds to capitalize on expansion opportunities.

Highlights of results for three and nine months ended March 31, 2017 are set out in the table (¹). Additional details are available in the Consolidated Financial Statements and the Management Discussion and Analysis available under the Company's profile on www.sedar.com.

			3 months ended March 31								9 months ended March 31
			2017				2016				2017				2016
			$				$				$				$
Revenues			$	1,887,565			$	2,435,120			$	6,902,204			$	8,526,797
	Direct expenses - Cost of cardholder rewards and marketing merchants to cardholders			468,606				650,439				1,870,618				2,251,596
	Direct expenses - Expense for provision against delinquent accounts			124,756				102,578				436,360				411,071
Gross profit			$	1,294,203			$	1,682,103			$	4,595,226			$	5,864,130
	Selling and General & Administrative			1,448,559				1,536,776				4,286,807				4,726,477
Earnings from operations before depreciation, amortization and interest			$	(154,356	)		$	145,327			$	308,419			$	1,137,653
	Cash interest on loan payable and debentures			315,641				480,596				989,257				1,260,932
Earnings (loss) from operations before depreciation, amortization and non-cash interest on debentures (accretion charges)			$	(469,997	)		$	(335,269	)		$	(680,838	)		$	(123,279	)
	Depreciation and amortization			29,166				117,069				145,110				351,221
	Non cash interest expense on debentures			-				58,832				60,227				174,444
Net loss and Comprehensive loss			$	(499,163	)		$	(511,170	)		$	(886,175	)		$	(648,944	)

⁽¹⁾ The tabulation is a non-GAAP presentation and is provided to assist readers in understanding the Company's financial performance. The information is extracted from consolidated financial statements for the three and nine months ended March 31, 2017.

About Advantex:

Advantex provides specialized marketing programs that enable members of affinity groups to earn frequent-flyer miles and other loyalty rewards through purchases at participating merchants.

Through our partnerships with Aeroplan, Toronto-Dominion Bank, Canadian Imperial Bank of Commerce and Caesars Entertainment, we have contractual access to millions of consumers with above-average personal and household income. We also have partnerships with about 1,100 merchants in Canada and the US.

Advantex shares trade on the Canadian Securities Exchange under the symbol ADX. For more information, go to www.advantex.com.

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

		Note		At March				At June
				31, 2017				30, 2016
				$				$
Assets
Current assets
Cash and cash equivalents				$	254,113			$	658,678
Accounts receivable					151,819				425,402
Transaction credits		5			5,723,025				7,352,262
Inventory		6			37,902				39,914
Prepaid expenses and sundry assets					98,324				103,684
				$	6,265,183			$	8,579,940
Non-current assets
Property, plant and equipment				$	82,549			$	116,049
Intangible assets					8,311				119,921
				$	90,860			$	235,970
Total assets				$	6,356,043			$	8,815,910
Liabilities
Current liabilities
Loan payable		7		$	4,359,873			$	5,533,267
Accounts payable and accrued liabilities					3,096,453				3,556,978
12% Non-convertible debentures payable		8			5,159,000				5,098,773
				$	12,615,326			$	14,189,018
Shareholders' deficiency
Share capital		9		$	24,530,555			$	24,530,555
Contributed surplus					4,090,382				4,090,382
Accumulated other comprehensive loss					(47,383	)			(47,383	)
Deficit					(34,832,837	)			(33,946,662	)
Total deficiency				$	(6,259,283	)		$	(5,373,108	)
Total liabilities and deficiency				$	6,356,043			$	8,815,910

Economic and Financial dependence (note 2a), Going concern (note 2b), Commitments and contingencies (note 12)

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

Approved by the Board
Director: Signed "William Polley"		Director: Signed "Kelly Ambrose"
William Polley		Kelly Ambrose

Advantex Marketing International Inc.
Consolidated Statements of Loss and Comprehensive Loss (unaudited)
For the three and nine months ended March 31, 2017 and 2016
(expressed in Canadian dollars)

		Note		Three months ended March 31								Nine months ended March 31
				2017				2016				2017				2016
				$				$				$				$
Revenues		15		$	1,887,565			$	2,435,120			$	6,902,204			$	8,526,797
Direct expenses		14/15			593,362				753,017				2,306,978				2,662,667
					1,294,203				1,682,103				4,595,226				5,864,130
Operating expenses
Selling and marketing		14/15			481,737				594,977				1,479,597				2,026,725
General and administrative		14/15			966,822				941,799				2,807,210				2,699,752
Earnings from operations before depreciation, amortization and interest					(154,356	)			145,327				308,419				1,137,653
Interest expense:
Stated interest expense - loan payable, and debentures		7/8			315,641				480,596				989,257				1,260,932
Non-cash interest expense on debentures		8			-				58,832				60,227				174,444
					(469,997	)			(394,101	)			(741,065	)			(297,723	)
Depreciation of property, plant and equipment, and amortization of intangible assets					29,166				117,069				145,110				351,221
Net loss and comprehensive loss				$	(499,163	)		$	(511,170	)		$	(886,175	)		$	(648,944	)
Loss per share
Basic and Diluted		13		$	(0.00	)		$	(0.00	)		$	(0.01	)		$	(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, 2017 and 2016
(expressed in Canadian dollars)

		Class A preference shares			Common shares			Contributed surplus			Accumulated other comprehensive loss				Deficit				Total
		$			$			$			$				$				$
Balance - July 1, 2015		$	3,815		$	24,526,740		$	4,090,382		$	(47,383	)		$	(33,039,219	)		$	(4,465,665	)
Net loss and comprehensive loss			-			-			-			-				(648,944	)			(648,944	)
Balance - March 31, 2016		$	3,815		$	24,526,740		$	4,090,382		$	(47,383	)		$	(33,688,163	)		$	(5,114,609	)
Balance - July 1, 2016		$	3,815		$	24,526,740		$	4,090,382		$	(47,383	)		$	(33,946,662	)		$	(5,373,108	)
Net loss and comprehensive loss			-			-			-			-				(886,175	)			(886,175	)
Balance - March 31, 2017		$	3,815		$	24,526,740		$	4,090,382		$	(47,383	)		$	(34,832,837	)		$	(6,259,283	)

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, 2017 and 2016
(expressed in Canadian dollars)

			Note		At March				At March
					31, 2017				31, 2016
					$				$
Operational activities
Net loss for the period					$	(886,175	)		$	(648,944	)
Adjustments for:
Depreciation of property, plant and equipment, and amortization of intangible assets						145,110				351,221
Accretion charge for debentures			8			60,227				174,444
						(680,838	)			(123,279	)
Changes in items of working capital
	Accounts receivable					273,583				64,016
	Transaction credits					1,629,237				(664,057	)
	Inventory					2,012				107,774
	Prepaid expenses and sundry assets					5,360				(7,747	)
	Accounts payable and accrued liabilities					(460,525	)			(344,885	)
						1,449,667				(844,899	)
Net cash provided by (used in) operating activities					$	768,829			$	(968,178	)
Investing activities
Purchase of property, plant and equipment, and intangible assets					$	-			$	(55,715	)
Net cash (used in) investing activities					$	-			$	(55,715	)
Financing activities
Proceeds from loan payable			7		$	(1,173,394	)		$	509,609
Net cash generated from / (used in) financing activities					$	(1,173,394	)		$	509,609
Increase / (decrease) in cash and cash equivalents during the period					$	(404,565	)		$	(514,284	)
Cash and cash equivalents at beginning of period						658,678				1,162,609
Cash and cash equivalents at end of period					$	254,113			$	648,325
Additional information
Interest paid					$	861,980			$	1,002,132
For purposes of the cash flow statement, cash comprises
	Cash				$	254,113			$	643,325
	Term deposits					-				5,000
					$	254,113			$	648,325

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