Exhibit 99.1
ADDvantage Technologies Group Reports Record Financial Results
For Fourth Quarter and Fiscal 2005
BROKEN ARROW, Oklahoma, December 19, 2005 ADDvantage Technologies Group, Inc.
(AMEX: AEY), announced today revenue for the fourth quarter ended September 30,
2005, climbed 40% to $16 million from $11.4 million in the fourth quarter of
fiscal 2004. Net income in 2005 fourth quarter increased by 88% to $1.6
million, or $0.15 per diluted share, from $0.9 million, or $0.08 per diluted
share, in the same period last year.
ADDvantage reported revenue for fiscal year ended September 30, 2005 of $50
million, an increase of 6%, compared to $47 million in fiscal 2004. Net income
for fiscal 2005 was $5.0 million, or $0.49 per diluted share, compared to $4.6
million, or $0.41 per diluted share, in fiscal 2004.
Ken Chymiak, President and Chief Executive Officer of ADDvantage, said, "Our
record financial results for the fourth quarter and fiscal 2005 reflect strong
growth across our core capabilities. We continue to capitalize on our unique
position as the largest distributor of new and remanufactured CATV equipment to
rapidly ship and supply products to a broad base of MSO customers across the
U.S."
"In the fourth quarter, we experienced significant revenue growth as a result
of our agreement with Scientific Atlanta announced in June 2005 under which we
became the exclusive distributor for the System Amplifier III RF platform as
well as other select Scientific Atlanta products to the U.S. and Latin America
markets. We also experienced increased demand for Motorola broadband equipment,
for which we are also a stocking distributor. Additionally, we recognized
approximately $1 million of incremental revenue in the fourth quarter related
to the active hurricane season as well as approximately $600,000 of increased
revenue attributable to Jones Broadband International, which we acquired in
August 2005. Our ability to deliver inventory from stock on demand played a
significant role in our fourth quarter and fiscal 2005 revenues and net
income."
Chymiak concluded, "We anticipate the continuation of our previously announced
growth strategy in fiscal 2006 will produce another record year. We believe our
strong relationships with leading product manufacturers, including Motorola and
Scientific-Atlanta, and our positive reputation in the multi-billion dollar
CATV industry positions ADDvantage Technologies for long-term success. Our
plan is to drive future performance through an expanded sales force, both
domestic and overseas; enhanced strategic partnerships; and additional
strategic acquisitions that complement our existing 'one-stop-shop'
capabilities and are accretive to earnings."
About ADDvantage Technologies Group, Inc.
ADDvantage Technologies Group, Inc. supplies the cable television (CATV)
industry with a comprehensive line of new and used system-critical network
equipment and hardware from leading manufacturers, including Scientific-Atlanta
and Motorola, as well as operating a national network of technical repair
centers. The equipment and hardware ADDvantage distributes is used to acquire,
distribute, and protect the broad range of communications signals carried on
fiber optic, coaxial cable and wireless distribution systems, including
television programming, high-speed data (Internet) and telephony.
ADDvantage operates through its subsidiaries, Tulsat, Tulsat Atlanta, Tulsat
Nebraska, Tulsat-Texas, NCS Industries, ComTech Services and Jones Broadband
International. For more information, please visit the corporate web site at
www.addvantagetech.com.
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.
(Tables follow)
ADDvantage Technologies Group, Inc
Statement of Operations
Year Ended Three Months Ended
September 30, September 30,
2005 2004 2005 2004
---- ---- ---- ----
Revenues $50,273,195 $47,071,329 $16,023,293 $11,442,339
Operating Income $ 9,972,952 $ 9,484,359 $ 3,047,743 $ 2,223,045
Net Income $ 5,814,392 $ 5,813,753 $ 1,765,041 $ 1,181,725
Preferred Stock Dividends $ 840,000 $ 1,240,000 $ 210,000 $ 310,000
Net Income Applicable
To Common Stock $ 4,974,392 $ 4,573,753 $ 1,555,041 $ 871,725
Net Income Per Share
of Common Stock
Basic $ 0.49 $ 0.46 $ 0.15 $ 0.09
Diluted $ 0.49 $ 0.41 $ 0.15 $ 0.08
Shares Used in Computing
Net Income Per Share:
Basic 10,067,277 10,041,197 10,072,047 10,060,689
Diluted 10,109,854 12,104,541 10,105,738 12,103,835
For further information: KCSA Worldwide
Company Contact: Michael Cimini / Garth Russell
Ken Chymiak (9l8) 25l-2887 (212) 896-1233 / (212) 896-1250
David Chymiak (9l8) 25l-2887 mcimini@kcsa.com / grussell@kcsa.com