Exhibit 99.1
ADDVANTAGE TECHNOLOGIES GROUP, INC.
REPORTS THIRD QUARTER 2004 FINANCIAL RESULTS
* Third quarter 2004 sales of $12.7 million, up 54% versus third quarter 2003
sales of $8.2 million.
* Third quarter 2004 GAAP earnings of $1.4 million, or $0.14 per share,
versus third quarter 2003 earnings of $998,592, or $0.10 per share, an
increase of 41%.
* Third quarter 2004 sales and GAAP earnings also increased sequentially over
second quarter 2004 by 9% and 16%, respectively.
* Nine months 2004 sales of $35.6 million, up 45% versus nine months 2003
sales of $24.5 million.
* Nine months 2004 GAAP earnings of $3.7 million, or $0.37 per share, versus
nine months 2003 earnings of $2.4 million, or $0.24 per share, an increase
of 52%.
Broken Arrow, Oklahoma, July 27, 2004--ADDvantage Technologies Group,
Inc. (AMEX:AEY) today reported third quarter earnings of $1.4 million, or
$0.14 per share, an increase of 41% over 2003 third quarter earnings of
$998,592, or $0.10 per share. Sales of $12.7 million in the third quarter
represented an increase of 54% from the same period last year. "The third
quarter was consistent with our expectations," said ADDvantage Chairman
David Chymiak. "Orders continued to be strong during the third quarter.
Our revenues and net profit through the first three quarters of 2004 are
at record levels."
"We continue to execute on our growth initiatives, with our principal
relationships as Value Added Resellers of Scientific-Atlanta ("SFA") and
Motorola ("MOT") broadband and transmission products creating new
opportunities to win new customers. We're on track to deliver excellent
performance this year and remain confident that growth will continue if the
economic environment does not deteriorate, but the timing of purchase orders
cannot be predicted," commented Ken Chymiak, President and CEO.
ADDVANTAGE TECHNOLOGIES GROUP, INC. (AMEX: AEY), through its subsidiaries,
TULSAT, Lee Enterprise, NCS Industries, ComTech Services, TULSAT-Texas, and
TULSAT-Atlanta distribute new and refurbished cable television ("CATV")
equipment, and operate repair centers at each location. Tulsat is a Value
Added Reseller (VAR) and a Master Distributor for Scientific-Atlanta legacy
products and is a distributor for most of their other products. NCS is a VAR
for Motorola broadband and transmission products and national distributor for
PROMAX test equipment. The Company is also a distributor for other companies
such as Blonder-Tongue, Standard Electronics, Videotek, Quintech Electronics,
and Corning Gilbert, among others. In addition to selling new, excess and
refurbished cable television equipment throughout North America and other
regions, they operate repair centers specializing in many different Original
Equipment Manufacturer (OEM) products. Tulsat is also a Third Party Authorized
Repair Center for select Scientific-Atlanta products and ComTech Services is an
authorized Alpha warranty repair center. For more information, please visit
the corporate web site at www.addvantagetech.com or contact the Company
directly at 918-251-9121.
The information in this announcement may include forward-looking statements.
All statements, other than statements of historical facts, which address
activities, events or developments that the Company expects or anticipates will
or may occur in the future, are forward-looking statements. These statements
are subject to risks and uncertainties which could cause actual results and
developments to differ materially from these statements. A complete discussion
of these risks and uncertainties is contained in the Company's reports and
documents filed from time to time with the Securities and Exchange Commission.
ADDvantage Technologies Group, Inc.
Statement of Operations
(Unaudited)
Three Months Ended Nine Months Ended
June 30, June 30,
2004 2003 2004 2003
---- ---- ---- ----
Revenues $12,682,449 $ 8,249,732 $35,628,990 $24,517,436
Operating Income $ 2,606,636 $ 1,672,632 $ 7,261,314 $ 5,000,368
Net Income Applicable
to Common Stock $ 1,405,232 $ 998,592 $ 3,702,028 $ 2,442,176
Net Income Per Share
of Common Stock
Basic $ .14 $ .10 $ .37 $ .24
Diluted $ .12 $ .10 $ .33 $ .24
Shares Used in Computing
Net Income Per Share:
Basic 10,057,172 10,010,414 10,034,700 10,008,336
Diluted 12,130,854 12,010,414 12,114,433 12,008,336
Contact: ADDvantage Technologies Group, Inc., Broken Arrow
Ken Chymiak (9l8) 25l-2887
David Chymiak (9l8) 25l-2887
Dee Cooper (9l8) 25l-9l2l