UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB/A
Amendment No. 1
(Mark One)
[x] QUARTERLY REPORT UNDER SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the quarterly period ended June 30, 2003
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the transition period ________________ to ______________
Commission File number 1-10799
ADDvantage Technologies Group, Inc.
(Exact name of small business issuer as specified in its charter)
OKLAHOMA 73-1351610
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1605 E. Iola
Broken Arrow, Oklahoma 74012
(Address of principal executive office) (Zip Code)
(918) 251-9121
(Registrant's telephone number)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.
Yes X No _____
Shares outstanding of the issuer's $.01 par value common stock as of August 12,
2003 were 10,010,414.
Transitional Small Business Issuer Disclosure Format (Check one):
Yes _____ No X
This Amendment No. 1 to our Quarterly Report on Form 10-QSB for the
quarter ended June 30, 2003 is being filed for the purpose of amending and
restating the disclosures under Items 1 and 2 of Part I of Form 10-QSB.
On September 30, 1999, the former shareholders of TULSAT Corporation
(formerly named DRK Enterprises, Inc.) assumed control of ADDvantage
Technologies Group, Inc. (formerly named ADDvantage Media Group, Inc.) The
resulting merger was accounted for as a business combination, with the
preferred stock issued in the merger recorded as first a reduction of paid-in
capital in an amount to exhaust the account, and the remainder to retained
earnings (deficit). Pursuant to Staff Accounting Bulletin Topic 4, the Company
has revised its accounting for this series of capital transactions.
The net difference from the previous reporting is that goodwill of
$199,490 has been eliminated and the carrying value of common stock has been
accordingly reduced. In addition, the amount of retained earnings at merger
date has been adjusted to $0, while additional paid-in capital has been
adjusted to report a deficiency of paid-in capital of $8,411,731. Common stock
activity subsequent to this date has been credited to the deficiency of paid-in
capital.
Part I - Financial Information Page
----
Financial Information:
Item 1. Financial Statements
Consolidated Balance Sheet
June 30, 2003 (Restated) 3
Consolidated Statements of Income
Three Months and Nine Months Ended
June 30, 2003 and 2002 (Restated) 5
Consolidated Statements of Cash Flows
Nine Months Ended June 30, 2003 and 2002 (Restated) 6
Notes to Consolidated Financial Statements 7
Item 2.
Management's Discussion and Analysis of the Financial
Condition and Results of Operations 9
Part II - Other Information
Item 6. Exhibits and Reports on Form 8-K 14
Signatures 14
2
ADDVANTAGE TECHNOLOGIES GROUP, INC.
CONSOLIDATED BALANCE SHEET
June 30, 2003
(Restated)
Assets
Current assets:
Cash $ 422,527
Accounts receivable, net of allowance of $106,845 3,859,691
Inventories 20,037,953
Deferred income taxes 98,000
------------
Total current assets 24,418,171
Property and equipment, at cost
Machinery and equipment 2,040,424
Land and buildings 1,330,188
Leasehold improvements 512,339
------------
3,882,951
Less accumulated depreciation and amortization (1,215,263)
------------
Net property and equipment 2,667,688
Other assets:
Deferred income taxes 1,224,326
Goodwill, net of accumulated amortization of $398,531 1,150,060
Other assets 29,676
------------
Total other assets 2,404,062
------------
Total assets $ 29,489,921
============
See notes to consolidated financial statements.
3
ADDVANTAGE TECHNOLOGIES GROUP, INC.
CONSOLIDATED BALANCE SHEET
June 30, 2003
(Restated)
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 1,776,976
Accrued expenses 537,523
Accrued income taxes 337,101
Bank revolving line of credit 4,451,430
Notes payable - current portion 153,371
Dividends payable 310,000
Stockholder notes 971,385
------------
Total current liabilities 8,537,786
Notes payable 393,321
Stockholder notes 399,461
Stockholders' equity:
Preferred stock, 5,000,000 shares authorized,
$1.00 par value, at stated value:
Series A, 5% cumulative convertible; 200,000 shares issued
and outstanding with a stated value of $40 per share 8,000,000
Series B, 7% cumulative; 300,000 shares issued and
outstanding with a stated value of $40 per share 12,000,000
Common stock, $.01 par value; 30,000,000
shares authorized; 10,030,414 shares issued 100,304
Paid-in capital (7,389,197)
Retained earnings 7,502,410
------------
20,213,517
Less: Treasury stock, 20,000 shares at cost (54,164)
------------
Total stockholders' equity 20,159,353
------------
Total liabilities and stockholders' equity $ 29,489,921
============
See notes to consolidated financial statements.
4
ADDVANTAGE TECHNOLOGIES GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Restated)
Three months ended Nine months ended
June 30, June 30,
2003 2002 2003 2002
------------------------ --------------------------
Net sales income $ 7,169,829 $ 5,933,542 $ 21,117,188 $ 15,557,835
Net service income 1,079,903 893,671 3,400,248 2,698,071
------------------------ --------------------------
8,249,732 6,827,213 24,517,436 18,255,906
Costs of sales 4,617,887 3,351,194 13,564,660 9,132,552
------------------------ --------------------------
Gross profit 3,631,845 3,476,019 10,952,776 9,123,354
Operating, selling, general and
administrative expenses 1,959,213 2,011,821 5,952,408 5,347,862
Depreciation and amortization 64,786 78,214 186,469 222,145
------------------------ --------------------------
Income from operations 1,672,632 1,466,692 5,000,368 3,782,973
Interest expense 49,520 63,625 152,906 178,995
------------------------ --------------------------
Income before income taxes 1,623,112 1,400,573 4,847,462 3,596,497
Provision for income taxes 314,520 545,944 1,475,286 1,299,944
------------------------ --------------------------
Net income 1,308,592 857,123 3,372,176 2,304,034
Preferred dividends 310,000 310,000 930,000 930,000
------------------------ --------------------------
Net income attributable
to common stockholders $ 998,592 $ 547,123 $ 2,442,176 $ 1,374,034
======================== ==========================
Earnings per share:
Basic $ 0.10 $ 0.05 $ 0.24 $ 0.14
Diluted $ 0.10 $ 0.05 $ 0.24 $ 0.14
See notes to consolidated financial statements.
5
ADDVANTAGE TECHNOLOGIES GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Restated)
Nine months ended
June 30,
2003 2002
-------------------------
Cash Flows from Operating Activities
Net income $ 3,372,176 $ 2,304,034
Adjustments to reconcile net income to net cash provided
by operating activities
Depreciation and amortization 186,469 222,145
(Benefit) provision for deferred income taxes (215,326) 134,719
Change in:
Receivables (354,393) 77,122
Inventories (2,453,716) (1,408,716)
Other assets (2,818) 66,118
Accounts payable and accrued liabilities 593,330 (121,713)
-------------------------
Net cash provided by operating activities 1,125,722 1,273,709
-------------------------
Cash Flows from Investing Activities
Additions to property and equipment (641,586) (495,075)
-------------------------
Net cash used in investing activities (641,586) (495,075)
-------------------------
Cash Flows from Financing Activities
Net (repayments) borrowings under line of credit (22,251) 520,434
Payments on stockholder loans (188,503) (100,000)
Proceeds (repayments) on notes payable 303,405 (5,094)
Payments of preferred dividends (930,000) (930,000)
-------------------------
Net cash used in financing activities (837,349) (514,660)
-------------------------
Net (decrease) increase in cash (353,213) 263,974
Cash, beginning of period 775,740 230,558
-------------------------
Cash, end of period $ 422,527 $ 494,532
=========================
Supplemental Cash Flow Information
Cash paid for interest $ 152,413 $ 178,995
Cash paid for income taxes $ 1,239,612 $ 1,630,998
See notes to consolidated financial statements.
6
NOTES TO CONDENSED FINANCIAL STATEMENTS (Unaudited)
Note 1 - Basis of Presentation
The accompanying unaudited condensed financial statements have been prepared in
accordance with generally accepted accounting principles for interim financial
statements and do not include all information and footnotes required by
generally accepted accounting principles for complete financial statements.
However, the information furnished reflects all adjustments, consisting only of
normal recurring adjustments which are, in the opinion of management, necessary
in order to make the financial statements not misleading.
Note 2 - Description of Business
ADDvantage Technologies Group, Inc., through its subsidiaries TULSAT
Corporation, ADDvantage Technologies Group of Nebraska, (dba "Lee Enterprise"),
NCS Industries Inc. ("NCS"), ADDvantage Technologies Group of Missouri, (dba
"Comtech Services"), ADDvantage Technologies Group of Texas, (dba "Tulsat -
Texas"), and Tulsat - Atlanta LLC ("Tulsat - Atlanta")(collectively, the
"Company"), sells new, surplus, and refurbished cable television equipment
throughout North America in addition to being a repair center for various
cable companies. The Company operates in one business segment.
Note 3 - Earnings per Share
Three months ended Nine months ended
June 30, June 30,
2003 2002 2003 2002
------------------------ ------------------------
(Restated) (Restated) (Restated) (Restated)
Net income attributable to common
stockholders $ 998,592 $ 547,123 $ 2,442,176 $1,374,034
Basic and Diluted EPS Computation:
Weighted average outstanding common
shares 10,010,414 9,991,716 10,008,336 9,991,716
Earnings per Share $ 0.10 $ 0.05 $ 0.24 $ 0.14
7
Note 4 - Line of Credit, Stockholder Loans, and Notes Payable
At June 30, 2003, a $4,451,430 balance is outstanding under a $9.0 million line
of credit due June 30, 2004, with interest payable monthly at Chase Manhattan
Prime less 1 1/4% (2.75% at June 30, 2003). Borrowings under the line of
credit are limited to the lesser of $7.0 million or the sum of 80% of qualified
accounts receivable and 40% of qualified inventory for working capital purposes
and $2.0 million for future acquisitions meeting Bank of Oklahoma credit
guidelines. The line of credit agreement provides that the Company's net worth
must be greater than $14.0 million and net income before the payment of
preferred dividends greater than $2.0 million. The line of credit is
collateralized by inventory, accounts receivable, equipment and fixtures, and
general intangibles.
Cash receipts are applied from the Company's lockbox account directly against
the bank line of credit, and checks clearing the bank are funded from the line
of credit. The resulting overdraft balance, consisting of outstanding checks,
is $295,226 at June 30, 2003 and is included in the bank revolving line of
credit.
Stockholder loans of $875,000 bear interest at rates that correspond with the
line of credit (2.75% at June 30, 2003). The notes are due on demand and are
classified as current. Stockholder notes, which were issued for purchases of
real estate, total $495,846. Two of these notes totaling $432,821 bear
interest at 7.5% and are due in monthly payments through 2011. Another note of
$63,025 bears interest at 5.5% and was repaid in July 2003. Notes payable to
unrelated parties totaled $546,692, of which $118,789 is due in quarterly
payments through March 2004, with $50,000 of this amount bearing interest at
7%. The remaining note of $427,903 is due in monthly payments through 2013
with interest at 5.5% through 2008, converting thereafter to prime minus 1/4%.
Note 5 - Income Taxes
During the quarter ended June 30, 2003, the Company reduced its allowance
against deferred tax assets by $443,000. This amount was used to reduce the
Company's estimate of its annual effective tax rate, resulting in an effective
tax rate of 19% for the fiscal third quarter of 2003 compared to an effective
tax rate of 39% for the third quarter of 2002. The change in the allowance
against deferred tax assets was made as a result of favorable tax developments
during the quarter that improved management's evaluation of the likelihood of
realizing those benefits. These favorable tax developments relate to the
completion of an Internal Revenue Service ("IRS") examination of the Company's
tax return for the year ended September 30, 2000. At issue were certain
pre-acquisition Net Operating Loss carryforwards of ADDvantage Media
Corporation (with which the Company merged in 1999.) A no-change report issued
by the IRS improved the likelihood of realizing these benefits. Consequently,
an allowance against this deferred tax asset became unnecessary.
8
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Overview
We specialize in the refurbishment of previously owned cable television
("CATV") equipment and the distribution of new and surplus equipment to CATV
operators and other broadband communication companies. Within the last two
years, we have become distributors for a number of different manufacturers of
equipment and other products. It is through our development of these
relationships that we have focused our initiative to market our products and
services to the larger cable multiple system operators (MSOs). As a result,
our overall sales are dramatically up for the first nine months of 2003, while
adding approximately $2.5 million of inventory to further enhance our product
offerings. We continue to believe that as cable companies look at expanding
their services in key markets and to recover from or address the effects of a
slow economy and depressed capital markets, there will be an emphasis on
minimizing their costs, thus creating a higher demand for the Company's repair
services and surplus-new equipment.
Results of Operations
Comparison of Results of Operations for the Three Months Ended June 30, 2003
and June 30, 2002
Net Sales. Net sales increased $1.42 million, or 20.8%, to $8.2 million in the
third quarter of fiscal 2003, from $6.8 million for the same period in fiscal
2002, primarily due to the positive results of our marketing initiatives and
distributor relationships discussed in the previous paragraph. New equipment
sales were up 95.6% to $5.8 million for the current period, compared with $2.94
million for the same period of fiscal 2002. Sales from remanufactured
equipment decreased by 37.9% to $2.35 million for the current period, compared
with $3.78 million in the same period last year. Repair service revenues were
up 20.8% to $1.08 million for the current quarter, compared with $894,000 for
the same period last year. The increase in repair services was due to the
continued focus of being a leading repair service provider and the expansion of
our repairs sales to our new Atlanta operations which began in June of 2002.
Costs of Sales. Costs of sales increased to $4.62 million for the third quarter
of fiscal 2003 from $3.35 million for the same period of fiscal 2002. The
increase was primarily due to the increase in sales for the period.
Gross Profit. Gross profit climbed $156,000 or 4.5% to $3.63 million for the
third quarter of fiscal 2003 from $3.48 million for the same period in fiscal
2002. The gross margin percentage was 44.0% for the current quarter, compared
to 50.9% for the same quarter last year. The percentage decrease was primarily
due to an increase in sales of new and surplus equipment which are accompanied
by margins lower than that of re-manufactured equipment or repairs.
Operating, Selling, General and Administrative Expenses. Operating, selling,
general and administrative expenses decreased by $37,000 in the third quarter
of fiscal 2003, to $1.89 million from $1.93 million for the same period in
2002, a decrease of 1.9%. The decrease in operating, selling, general and
administrative expenses was primarily due to reserving $62,000 in the third
quarter of fiscal 2002 for bad debts associated with the bankruptcy filing by
one of our customers.
9
Income from Operations. Income from operations rose $206,000, or 14.0%, to
$1.67 million for the third quarter of fiscal 2003 from $1.47 million for the
same period last year. This increase was primarily due to increases in sales
to the larger MSOs.
Comparison of Results of Operations for the Nine Months Ended June 30, 2003 and
June 30, 2002
Net Sales. Net sales increased $6.26 million, or 34.3%, to $24.5 million in
the first nine months of fiscal 2003, from $18.3 million for the same period in
fiscal 2002, primarily due to the positive results of our marketing initiatives
and distributor relationships discussed above. New equipment sales were up
95.9% to $15.8 million for the current period, compared with $8.1 million for
the same period of fiscal 2002. Sales from remanufactured equipment decreased
by 15.8% to $7.9 million for the current period, compared with $9.4 million in
the same period last year. Repair service revenues were up 26.0% to $3.4
million for the current period, compared with $2.7 million for the same period
last year. The increase in repair services was due to the continued focus of
being a leading repair service provider and the expansion of our repairs sales
to our new Atlanta operations which began in June of 2002.
Costs of Sales. Costs of sales increased to $13.6 million for the first nine
months of fiscal 2003 from $9.1 million for the same period of fiscal 2002.
The increase was primarily due to the increase in sales for the period.
Gross Profit. Gross profit climbed $1.83 million or 20.1% to $11.0 million for
the first nine months of fiscal 2003 from $9.1 million for the same period in
fiscal 2002. The gross margin percentage was 44.7% for the current period,
compared to 50.0% for the same period last year. The percentage decrease was
primarily due to an increase in sales of new and surplus equipment which is
accompanied by margins lower than that of re-manufactured equipment or repairs.
Operating, Selling, General and Administrative Expenses. Operating, selling,
general and administrative expenses increased by $648,000 in the first nine
months of fiscal 2003, to $5.8 million from $5.1 million for the same period in
2002, an increase of 12.7%. The increase in operating, selling, general and
administrative expenses was primarily due to the commencement of the operations
of TULSAT-Atlanta in June 2002, coupled with an expanding sales force and other
added expenses incurred to meet the marketing initiatives described previously.
Income from Operations. Income from operations rose $1.22 million, or 32.2%
to $5.0 million for the first nine months of fiscal 2003 from $3.78 million for
the same period last year. This increase was primarily due to increases in
sales to the larger MSOs.
10
Critical Accounting Policies
Note 1 to the Consolidated Financial Statements in Form 10-KSB for fiscal
year 2002 includes a summary of the significant accounting policies or methods
used in the preparation of our Consolidated Financial Statements. Some of those
significant accounting policies or methods require us to make estimates and
assumptions that affect the amounts reported by us. We believe the following
items require the most significant judgments and often involve complex
estimates.
General
-------
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting periods. We base our estimates and judgments on historical
experience, current market conditions, and various other factors we believe to
be reasonable under the circumstances, the results of which form the basis for
making judgments about the carrying values of assets and liabilities that are
not readily apparent from other sources. Actual results may differ from these
estimates under different assumptions or conditions. The most significant
estimates and assumptions relate to the carrying value of our inventory and, to
a lesser extent, the adequacy of our allowance for doubtful accounts.
Inventory Valuation
-------------------
Inventory consists of new and used electronic components for the cable
television industry. Inventory is stated at the lower of cost or market.
Market is defined principally as net realizable value. Cost is determined
using the weighted average method.
We market our products primarily to MSOs and other users of cable
television equipment who are seeking products for which manufacturers have
discontinued production, or are seeking shipment on a same-day basis. Our
position in the industry requires us to carry large inventory quantities
relative to quarterly sales, but also allows us to realize high overall gross
profit margins on our sales. Carrying these large inventories represents
the Company's largest risk. For individual inventory items, we may carry
inventory quantities that are excessive relative to market potential, or we may
not be able to recover our acquisition costs for sales we are able to make in a
reasonable period.
In order to address the risks associated with our investment in inventory,
we regularly review inventory quantities on hand and reduce the carrying value
when the loss of usefulness of an item or other factors, such as obsolete and
excess inventories, indicate that cost will not be recovered when an item is
sold. Demand for some of the items in our inventory has been impacted by
recent economic conditions present in the cable industry. We wrote certain
items in inventory down to their estimated market values at September 30, 2002,
which resulted in a charge to cost of sales of $1.4 million for fiscal 2002.
No inventory write-downs were necessary during the nine months ended June 30,
2003 and 2002. Any significant, unanticipated changes in product demand,
technological developments or continued economic trends affecting the cable
industry could have a significant impact on the value of our inventory and
operating results.
11
Accounts Receivable Valuation
-----------------------------
Management judgments and estimates are made in connection with
establishing the allowance for doubtful accounts. Specifically, we analyze the
aging of accounts receivable balances, historical bad debts, customer
concentrations, customer credit-worthiness, current economic trends and changes
in our customer payment terms. Significant changes in customer concentration or
payment terms, deterioration of customer credit-worthiness, or weakening in
economic trends could have a significant impact on the collectibility of
receivables and our operating results. If the financial condition of our
customers were to deteriorate, resulting in an impairment of their ability to
make payments, additional allowances may be required. At June 30, 2003,
accounts receivable, net of allowance for doubtful accounts of $107,000,
amounted to $3.9 million.
Goodwill
--------
In July, 2001, the Financial Accounting Standards Board ("FASB") issued
Statements of Financial Accounting Standards No. 142, "Goodwill and Other
Intangible Assets" (SFAS 142). SFAS 142 addresses financial accounting and
reporting for acquired goodwill and other intangible assets. SFAS 142
requires, among other things, that companies no longer amortize goodwill,
but instead test goodwill for impairment at least annually. SFAS 142 was
adopted by the Company on October 1, 2002, the date of the annual impairment
review. The Company has completed its transitional impairment testing of
goodwill. The results of these tests indicate that goodwill is not impaired as
of October 1, 2002. The adoption of this pronouncement had no impact on the
Company's carrying value of its goodwill. If SFAS 142 had been adopted in
2002, the Company's earnings would have been improved because of reduced
amortization, as described below:
Goodwill - Adoption of Statement 142
------------------------------------
Three Months ended June 30,
---------------------------
2003 2002
----------- ----------
(Restated) (Restated)
Reported Net Income $ 1,308,592 $ 857,123
Add back: Goodwill amortization - 26,007
----------- ----------
Adjusted Net Income $ 1,308,592 $ 883,130
=========== ==========
Basic and Diluted Earnings per Share:
Reported Net Income $0.10 $0.05
Add back: Goodwill amortization - 0.01
----------- ----------
Adjusted Net Income $0.10 $0.06
=========== ==========
Nine Months ended June 30,
--------------------------
2003 2002
----------- ----------
(Restated) (Restated)
Reported Net Income $ 3,372,176 $2,304,034
Add back: Goodwill amortization - 74,571
----------- ----------
Adjusted Net Income $ 3,372,176 $2,378,605
=========== ==========
Basic and Diluted Earnings per Share:
Reported Net Income $0.24 $0.14
Add back: Goodwill amortization - -
----------- ----------
Adjusted Net Income $0.24 $0.14
=========== ==========
12
Income Taxes
------------
During the quarter ended June 30, 2003, the Company reduced its allowance
against deferred tax assets by $443,000. This amount was used to reduce the
Company's estimate of its annual effective tax rate, resulting in an effective
tax rate of 19% for the fiscal third quarter of 2003 compared to an effective
tax rate of 39% for the third quarter of 2002. The change in the allowance
against deferred tax assets was made as a result of favorable tax developments
during the quarter that improved management's evaluation of the likelihood of
realizing those benefits. These favorable tax developments relate to the
completion of an Internal Revenue Service ("IRS") examination of the Company's
tax return for the year ended September 30, 2000. At issue were certain
pre-acquisition Net Operating Loss carryforwards of ADDvantage Media
Corporation (with which the Company merged in 1999.) A no-change report issued
by the IRS improved the likelihood of realizing these benefits. Consequently,
an allowance against this deferred tax asset became unnecessary.
Liquidity and Capital Resources
The Company has a line of credit with the Bank of Oklahoma under which we
are authorized to borrow up to $9.0 million at a borrowing rate of 1.25% below
Chase Manhattan Prime (2.75% at June 30, 2003). This line of credit will
provide the lesser of $7.0 million or the sum of 80% of qualified accounts
receivable and 40% of qualified inventory in a revolving line of credit for
working capital purposes and $2.0 million for future acquisitions meeting Bank
of Oklahoma credit guidelines. The line of credit is collateralized by
inventory, accounts receivable, equipment and fixtures, and general intangibles
and had an outstanding balance at June 30, 2003 of $4.5 million, due June 30,
2004. We intend to renew the agreement at the maturity date under similar
terms.
The Company finances its operations primarily through internally generated
funds and a bank line of credit. Quarterly payments of principal for
obligations related to the NCS purchase total $119,000 in the next 12 months.
Monthly payments of principal for loans used to purchase buildings total
$71,000 in the next 12 months. A $60,000 note in conjunction with a building
purchase was repaid in July 2003. The Company expects to fund these payments
through cash flows from operations.
Stockholder loans include an $875,000 note, due on demand, bearing
interest at the same rate as the Company's bank line of credit. It is not
expected that this note will be called within the next year.
Forward Looking Statements
Certain statements included in this report which are not historical facts
are forward-looking statements. These forward-looking statements are based on
current expectations, estimates, assumptions and beliefs of management; and
words such as "expects," "anticipates," "intends," "plans," "believes,"
"projects", "estimates" and similar expressions are intended to identify such
forward looking statements. These forward-looking statements involve risks and
uncertainties, including, but not limited to, the future prospects for the
business of the Company, the Company's ability to generate or to raise
sufficient capital to allow it to make additional business acquisitions,
changes or developments in the cable television business that could adversely
affect the business or operations of the Company, general economic conditions,
the availability of new and used equipment and other inventory and the
Company's ability to fund the costs thereof, and other factors which may affect
the Company's ability to comply with future obligations. Accordingly, actual
results may differ materially from those expressed in the forward-looking
statements.
13
PART II - OTHER INFORMATION
OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibit No. Description
31.1 Certification of Periodic Report by Chief Executive Officer
and Chief Financial Officer under Section 302 of the
Sarbanes Oxley Act of 2002.
32.1 Certification of the Chief Executive Officer and Chief
Financial Officer Pursuant to 8 U.S.C. Section 1350, as
Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this amendment to its report to be signed on its
behalf by the undersigned thereunto duly authorized.
ADDVANTAGE TECHNOLOGIES GROUP, INC.
(Registrant)
/s/ Kenneth A. Chymiak
-------------------------------
Date: March 12, 2004 Kenneth A. Chymiak,
Director and President
(Principal Executive Officer and
Principal Financial Officer)
14