Continuing year to date improvements in revenues but flat results reflecting difficult operating environment Core activity – Merchant Cash Advance program – Revenues increased 48.8% to $554,225 in third quarter and 62.2% to $1,661,670 in YTD third quarter. Total Revenues increased 43.5% to $760,761 in third quarter and 52.8% to $2,372,921 in YTD third quarter. Gross Profit decreased 46.4% to $219,550 in third quarter but was ahead at 26.8% to $1,478,638 in YTD third quarter. Flat SG&A. $412,833 vs. $438,586 in third quarter and $1,279,144 vs. $1,299,638 in YTD third quarter. Earnings/(Loss) from operations before depreciation, amortization and interest was $(193,283) in third quarter and $199,494 in YTD third quarter. Healthy turnaround of $333,309 in YTD third quarter but deterioration of $164,515 in third quarter compared to the corresponding periods in the previous year. Loss from operations before non-cash expenses. Flat YTD third quarter, current year $1,227,274 compared to $1,186,391 in the corresponding period in the previous year. Higher third quarter loss, current year $681,561 compared to $457,236 in the corresponding period in the previous year. TORONTO, May 29, 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 nine months ended March 31, 2024. Advantex successfully pushed double digit increase in three and nine month revenues with flat selling, general & administrative costs.   The gross profit from the secondary activity – reseller of aeroplan points as a partner of Aeroplan Inc. – continued its sustained growth. However, Advantex faced headwinds in its core activity in the shape of increase in delinquencies on its Merchant Cash Advance receivables during the third quarter. This hurt the third quarter operational performance although on YTD third basis Advantex performed better compared to corresponding period in the previous year. While Advantex believes its credit processes are robust, the current difficult economic environment driven by high interest rates and inflation is creating financial difficulties in the small independent business world and this is Advantex's market. Advantex is continuously updating, as required, its credit policies. Advantex raised gross proceeds of $300,000 in February 2024 to support the growth of its core activity. The higher than expected delinquencies was a setback to the expected positive outcome from use of the portion of additional capital earmarked to expand MCA program. Compared to corresponding periods in the previous year 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 third quarter and YTD third quarter compared to 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. Prime rate during current periods was 7.20% compared to 4.20% (July 2022) which increased to 6.70% by January 2023 and 7.20% by July 2023. The adverse effect of increase in prime rate was offset by reduction in the base rate from September 2023 (to 8.00% from 8.80%). Despite the difficult circumstances Advantex managed a healthy turnaround of $333,309 in YTD third quarter in its Earnings from operations before depreciation, amortization and interest. $199,494 earnings current year compared to loss of $133,815 for the corresponding period in the previous year. As well a flat loss from operations prior to non cash expenses. YTD third quarter current loss of $1,227,274 compared to loss of $1,186,391 for the corresponding period in the previous year. 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 below tabulation: 3 months ended March 31 (Third quarter) 9 months ended  March 31 (YTD Third quarter) 24 23 Inc./(Dec) 24 23 Inc./(Dec) $ $ $ $ $ $ Revenues Merchant Cash Advance ("MCA") program $             554,225 $             372,415 $             181,810 $          1,661,670 $          1,024,330 $             637,340 Reseller-Aeroplan program-Loyalty marketing $             206,536 $             157,794 $               48,742 $             711,251 $             528,267 $             182,984 $             760,761 $             530,209 $             230,552 $          2,372,921 $          1,552,597 $             820,324 Direct Expenses MCA program: Expense for provision against receivables, credit & collection expense $             414,043 $                 3,314 $             410,729 $             423,572 $               10,589 $             412,983 Reseller - Aeroplan program - Loyalty marketing: Costs of loyalty rewards and marketing $             127,168 $             117,077 $               10,091 $             470,711 $             376,185 $               94,526 $             541,211 $             120,391 $             420,820 $             894,283 $             386,774 $             507,509 Gross profit $             219,550 $             409,818 $           (190,268) $          1,478,638 $          1,165,823 $             312,815 Selling and General & administrative expenses $             412,833 $             438,586 $             (25,753) $          1,279,144 $          1,299,638 $             (20,494) Earnings/(Loss) from operations before depreciation, amortization and interest $           (193,283) $             (28,768) $             164,515 $             199,494 $           (133,815) $             333,309 Stated interest expense - loan payable (utilized exclusively to support 90% of funds deployed in MCA program, balance 10% is from working capital available to Advantex) $             227,260 $             185,330 $               41,930 $             691,218 $             405,153 $             286,065 Stated interest expense - 9% non-convertible debentures payable, and 12% non-convertible debentures payable (general working capital, including to support 10% of funds deployed in MCA) $             260,268 $             243,138 $               17,130 $             734,800 $             647,423 $               87,377 Stated interest on loan $                    750 $                      - $                    750 $                    750 $                      - $                    750 (Loss) from operations before non-cash expenses $           (681,561) $           (457,236) $             224,325 $        (1,227,274) $        (1,186,391) $               40,883 Non-cash interest expense - 1) accretion charges and restructuring bonus respecting 9% non-convertible debentures payable, 2) amortization of transaction costs respecting 9% non-convertible debentures payable and 12% non-convertible debentures payable, and 3) interest on loan (2024) - lease (2023) $             278,973 $             246,544 $               32,429 $             811,993 $             676,324 $             135,669 Net (loss) and comprehensive (loss) $           (960,534) $           (703,780) $             256,754 $        (2,039,267)