Exhibit 99.1
ADDvantage Technologies Reports Record First Quarter Results
Revenue Increases 20%; Net Income Climbs 15%
BROKEN ARROW, Oklahoma, February 8, 2006 - ADDvantage Technologies Group, Inc.
(AMEX: AEY), today announced the financial results for its fiscal 2006 first
quarter ended December 31, 2005.
Revenue for the 2006 first quarter increased 20% to $14.8 million from $12.3
million in the first quarter of 2005. Net income attributable to common
stockholders in first quarter of 2006 rose 15% to $1.5 million, or $0.15 per
diluted share, from $1.3 million, or $0.13 per diluted share, in the
year-earlier period.
David Chymiak, ADDvantage Technologies Group Chairman of the Board, commented,
"We are pleased with our first quarter results. Maintaining our status as the
cable television (CATV) industry's leading distributor of new and refurbished
equipment, we continue to see room to expand our operations. Our success is a
result of a fundamentally sound, multi-faceted business model that emphasizes a
commitment to our existing business while exploring possible new spaces within
the industry that may provide us with increased long-term growth potential."
Ken Chymiak, ADDvantage Technologies Group President and CEO, commented, "Our
strong revenue and net income growth demonstrates our ability to leverage our
various resources as we continue to expand our business. First quarter results
reflect new business agreements, including our exclusive distributorship for
Scientific-Atlanta's System Amplifier III RF platform throughout the United
States and Latin America, as well as the first full quarterly contribution from
our acquisition of Jones Broadband International (JBI), a leading provider of
television cable equipment and services. We believe our strategic relationships
with blue chip product manufacturers, such as Scientific-Atlanta and Motorola,
and unique ability to meet the needs of our customers swiftly by having product
in stock will continue to drive future results."
"As we maintain our strong performance in equipment sales, we remain focused on
expanding our equipment repair and service business. Our strategy to offer
products and services that complement our existing capabilities enables us to
strengthen customer relationships and increase our competitive advantage. The
August 2005 acquisition of JBI has enhanced our equipment repair and service
capabilities throughout the west coast and we expect this acquisition to be
accretive to earnings in the current fiscal year."
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
Three Months
December 31,
2005 2004
---- ----
Revenues $14,753,611 $12,261,125
Operating Income $ 2,893,518 $ 2,488,841
Net Income $ 1,741,594 $ 1,514,687
Preferred Stock Dividends $ 210,000 $ 210,000
Net Income Applicable
To Common Stock $ 1,531,594 $ 1,304,687
Net Income Per Share
of Common Stock
Basic $ 0.15 $ 0.13
Diluted $ 0.15 $ 0.13
Shares Used in Computing
Net Income Per Share:
Basic 10,073,297 10,061,756
Diluted 10,116,782 10,117,873
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