Advantex Marketing International Inc C.ADX

The Plan, The Plan, the Plan...is Ready?

[Loony]

News Release
Advantex Announces Fiscal 2018 First Quarter Results
Toronto, November 29, 2017 -- Advantex Marketing International Inc. (CSE: ADX), a specialist in marketing
loyalty-reward programs, announced its results for the three months ended September 30, 2017.
During the past fifteen months Advantex’s focus has been to stabilize operations in an environment where
it had limited access to working capital. Furthermore, Advantex’s new 12% debentures mature December
31, 2017 and will have to be re-financed.
In response to this situation Advantex has developed a financial restructuring plan (‘Plan”). The Plan
requires accommodations from Advantex’s employees, its affinity partners and its financial backers.
Successful implementation would enable Advantex to re-finance the new 12% debentures and provide
working capital to support a gradual sustained recovery of its business. Some measures have been
implemented while others are in process. Advantex expects the Plan to be fully implemented by
December 31, 2017. Advantex believes implementing the Plan is the most effective way to transition to
the next phase of recovery of its core business, during which it expects a gradual but sustained growth in
its CIBC/TD program merchant base and related revenues. This transition will ultimately benefit all of its
stakeholders.
Highlights of results for Fiscal 2018 First Quarter are set out in the table (
1
). Additional details are available
in the Consolidated Financial Statements and the Management Discussion and Analysis available under
Advantex’s profile on www.sedar.com.
Fiscal 2018
First Quarter
Fiscal 2017
First Quarter
Increase/
(Decrease)
$ $ $
Revenues $ 2,006,169 $ 2,604,270 $ (598,101)
Direct expenses
Cost of cardholder rewards and marketing in connection
with Advantex's merchant based loyalty programs
$ 481,575 $ 697,764 $ (216,189)
Expense for provision against delinquent accounts $ 131,904 $ 179,594 $ (47,690)
Gross profit $ 1,392,690 $ 1,726,912 $ (334,222)
Selling and General & Administrative expenses $ 1,229,282 $ 1,398,251 $ (168,969)
Earnings from operations before depreciation, amortization
and interest
$ 163,408 $ 328,661 $ (165,253)
Stated interest expense - loan payable, and debentures $ 325,822 $ 338,994 $ (13,172)
Loss from operations before depreciation, amortization and
non cash interest
$ (162,414) $ (10,333) $ 152,081
Depreciation, amortization and non-cash interest expense $ 8,891 $ 139,072 $ (130,181)
Net loss and Comprehensive loss $ (171,305) $ (149,405) $ 21,900

The 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 the three months ended September 30, 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 partnerships with Aeroplan, Toronto-Dominion Bank, Canadian Imperial Bank of Commerce and
Caesars Entertainment, Advantex has contractual access to millions of consumers with above-average
personal and household income. Advantex also has partnerships with about 1,025 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.

Forward-Looking Information
This news release contains “forward-looking statements” within the meaning of applicable securities laws
relating to the future business and operations of Advantex, including implementation of the Plan, timeline
for implementation of the Plan, Plan being most effective way forward, outcomes for the business and
stakeholders and their timing upon implementation of the Plan. Readers are cautioned not to place undue
reliance on forward-looking statements. Actual results and developments may differ materially from
those contemplated by these statements. The business and operations of Advantex described herein is
dependent on a number of factors and is subject to a number of risks and uncertainties. Factors that could
cause actual results to differ materially include those listed under “Working Capital and Liquidity
Management”, “General Risks and Uncertainties” and “Economic Dependence” in Advantex’s
Management’s Discussion and Analysis for the three months ended September 30, 2017.
The statements in this news release are made as of the date of this release. Forward-looking statements
are made based on management’s beliefs, estimates and opinions on the date the statements are made
and Advantex undertakes no obligation to update forward-looking statements if these beliefs, estimates
and opinions or other circumstances should change, except as required by applicable law.
Contact:
Mukesh Sabharwal
Vice-President and Chief Financial Officer
Tel: [phone] ext. 249
Email: [e-mail]
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