Adaptive Ad Systems Reports 2017 Record Growth and Profits
Los Angeles, August 22, 2018. This is our first release on Adaptive Ad Systems, Inc. (OTC:AATV). Adaptive is our latest rare discovery operating in a “Niche Market” of considerable size with impressing success. Not really a late discovery for us; we have been talking with the company for over a year and are now ready to publish our first detailed Research Report soon, shortly after Labor Day.
J. Michael Heil, Chairman & CEO of Adaptive states: “As we build upon the success of our innovative technology and services, and move into the next crucial phase of the Company’s development, we believe that it is important to inform our shareholders on the significant progress we have made over the last four years. At the same time, we are renewing our commitment to updating our shareholders and the investing public on a consistent basis moving forward, while accelerating the implementation of our business plan for the next four years.”
The Company currently derives almost all revenue from Cable TV advertising sales it distributes over its installed network of Adaptive-owned ad insertion and streaming media hardware and proprietary processing software for the Cable TV and Satellite markets. These revenues are significantly impacted by political advertising as one of the driving revenue sources for TV ad revenue. Election years, both midterm and presidential campaign years, typically generate significantly higher revenues, based on greater political ad spending than during non-election years.
Accordingly, to allow a more objective comparison of the Company’s financial performance, the Company is providing a financial comparison between “election years” and “non-election years” in this release.
In its annual report for the non-election year 2017, the Company reported an increase in revenue of approximately 58% from its comparable non-election-year 2015, with revenue growing from $2,591,812 in 2015 to $4,095,000 in 2017.
As a percentage of revenue, total operating expenses decreased by about 10% in 2017.This resulted in an approximate 292% increase in net income to $549,693 before taxes to 2017.
Accordingly, the Company’s cash position strengthened substantially, increasing from $517,207 in 2015, to approximately $1,298,673 in 2017, with total assets increasing over $3.7 million from $2,273,781 to $5,987,787.
Mr. Heil further states “Based on the opportunities created by our dedicated engineering, sales and marketing teams, we are continuing to expand deployment of our ad insertion equipment on long-term exclusive contracts and are expecting another substantial increase in revenue for 2018. We will continue to update our shareholders on a regular basis moving forward and will provide comments on our 2018 second quarter numbers soon.”