TORONTO, ONTARIO–(Marketwired – Aug. 25, 2016) – Avante Logixx Inc. (“Avante” the “Company” or the “Group”) (TSX VENTURE:XX)(OTC:ALXXF) through its subsidiaries, Avante Security Inc. (“ASI”), INTO Electronics Inc. (“INTO”) and City Wide Locksmiths Ltd. (“CWL”), provides best in class residential and commercial security and automation services including system design and installation, rapid alarm response, alarm monitoring, video analytics, commercial and high-rise security integration, secure transport, electronic building management and high-end lock services through the use of advanced technology and a focus on client service. The Company is pleased to announce its results for the quarter ended June 30, 2016:
Results for the Quarter ended June 30, 2016
| Quarter ended | |||||||
| June 30, 2016 | June 30, 2015 | Variance (%) | |||||
| Total revenues | 4,723,384 | 3,355,122 | 40.8% | ||||
| Revenues – Recurring Monitoring and Response1 | 1,491,754 | 1,447,111 | 3.0% | ||||
| Revenues from other security and related services | 3,231,630 | 1,908,011 | 69.3% | ||||
| Total gross profit | 1,786,238 | 1,255,727 | 42.2% | ||||
| Adjusted EBITDA2 | 627,600 | 421,700 | 48.8% | ||||
| Net income before tax | 371,674 | 342,184 | 8.69% | ||||
| Net income for the period | 263,204 | 247,184 | 6.5% | ||||
| Basic income per share | 0.003 | 0.003 | |||||
| Diluted income per share | 0.003 | 0.003 | |||||
| Total common shares outstanding | 81,382,052 | 81,112,052 | |||||
| Total common shares outstanding (diluted) | 81,727,145 | 82,559,552 | |||||
| Total assets | 16,465,865 | 14,941,239 | |||||
| Total liabilities | 5,275,152 | 4,205,725 | |||||
| Total liabilities (excl. deferred revenue and bank debt) | 2,916,657 | 2,018,440 | |||||
| Deferred revenue | 2,233,753 | 2,080,939 | |||||
| Bank and other debt | 124,742 | 106,346 | |||||
| Equity | 11,190,713 | 10,735,514 | |||||
| Equity holders of the parent | 10,730,923 | 10,735,514 | |||||
| Non-controlling interests | 459,790 | – | |||||
| 1 Revenue: Recurring Monitoring and Response includes Alarm Response along with Digital, Wireless and Video Monitoring Services | |||||||
| 2 Adjusted EBITDA is Net income before interest, taxes, depreciation and amortization, share based payments and acquisition and integration costs | |||||||
During the quarter, the Company generated revenues of $4,723,384, an increase of 40.8% over the quarter ended June 30, 2015. Revenue increased on both an organic basis and via the contribution of the recently acquired CWL. CWL contributed approximately $1.3 million to the revenues for the quarter.
Overall gross margin for the quarter was $1,786,238 or 37.8% as compared to $1,255,727 or 37.4% for the quarter ended June 30, 2015. The blended gross margin on rapid response, secure transport, international security travel advisory segment and monitoring services was 50.8% for the quarter ended June 30, 2016, which is in line with the 51.0% for the quarter ended June 30, 2015. Gross margin on installations was 17.6% for the quarter as compared to 15.6% for the same quarter in the prior year. The Company has made considerable progress in optimizing the acquisitions and realizing synergies in the past several months which we believe will have a positive impact on earnings in the coming quarters.
Adjusted EBITDA for the quarter amounted to $627,600 as compared to $421,700 for the quarter ended June 30, 2015. Net income for the year was $263,204, as compared to $247,184 in the prior year. Management expects that the Company will continue in a similar trajectory for the rest of the year.
“We are happy with the progress of Avante,” said CEO George Rossolatos, “and we continue to work to grow the business organically and via acquisition. Much work has been completed on the integration in the past quarter which will have a positive impact going forward. The latest acquisition in CWL has validated our belief in growing by acquiring companies in other security related sectors. We continue to look at other targets which are likely to mesh well with our existing business and culture.”
As announced yesterday, Avante will be hosting a conference call on Monday, August 29, 2016, to discuss the aforementioned results at 8:30 AM EDT.
Dial in details are as follows:
Local: (+1) 416-764-8658 — Toll Free: (+1) 888-886-7786 — Conference ID: 92493624
Playback details below, available until September 12, 2016:
Local: (+1) 416-764-8692 — Toll Free: (+1) 877-674-7070 — Playback Pin: 493624#
About Avante Logixx (www.avantelogixx.com)
Avante Logixx Inc. (TSX VENTURE:XX) is a Toronto based security, monitoring, system integration and technology company. Its subsidiaries, Avante Security Inc. (www.avantesecurity.com), INTO Electronics Inc., (www.247into.com), LVS Inc. (www.lvssecurity.com), and the recently acquired City Wide Locksmiths Ltd. (www.citywidelocksmith.ca) together provide best in class security systems and services for residential and commercial clients, and high-rise condominium applications, with industry leadership in designing and installing complex security systems, access control, intelligent video analytics, high-end lock services and smart home automation. Avante’s group of companies strives to be best in class in each of its verticals including an industry leading rapid alarm response offering combined with alarm system and live video analytics monitoring. Avante’s Executive Services team provides unparalleled end-to-end security solutions for high profile and high net worth families to ensure their safety in a comprehensive yet discrete manner, including an executive transportation option. Avante’s International Travel Security team helps corporations protect traveling employees working abroad in medium/high risk jurisdictions and has executed travel details in over 60 countries. Avante continuously develops innovative products and applications within its core competencies. Please visit our website at www.avantelogixx.com and consider joining our investor email list.
FORWARD LOOKING STATEMENTS
All statements in this press release, other than statements of historical fact, are “forward looking information” with respect to Avante within the meaning of applicable securities laws. Forward-looking information is often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “planned”, “expect”, “project”, “predict”, “potential”, “targeting”, “intends”, “believe”, “potential”, and similar expressions, or describes a “goal”, or a variation of such words and phrases or state that certain actions, events or results “may”, “should”, “could”, “would”, “might” or “will” be taken, occur or be achieved.
Forward-looking information is subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those expressed or implied by the forward-looking information, including, without limitation, the list of risk factors identified in Avante’s Management Discussion & Analysis (MD&A) and other continuous disclosure, which list is not exhaustive of the factors that may affect any of Avante’s forward-looking information. In connection with the forward-looking statements contained in this and subsequent press releases, Avante has made certain assumptions about its business and the industry in which it operates and has also assumed that no significant events occur outside of Avante’s normal course of business. Although management believes that the assumptions inherent in the forward-looking statements are reasonable as of the date the statements are made, forward-looking statements are not guarantees of future performance and, accordingly, undue reliance should not be put on such statements due to the inherent uncertainty therein. Avante’s forward-looking information is based on the beliefs, expectations and opinions of management on the date the statements are made, and Avante does not assume any obligation to update forward-looking information, whether as a result of new information, future events or otherwise, other than as required by applicable law. For the reasons set forth above, readers should not place undue reliance on forward-looking information.
NON-IFRS MEASURES
References to EBITDA are to net income before interest, taxes, depreciation and amortization. References to Adjusted EBITDA are to net income plus interest, taxes, depreciation and amortization and charges for share-based payments and integration and acquisition costs. Neither EBITDA nor Adjusted EBITDA is an earnings measure recognized by International Financial Reporting Standards (“IFRS”) and do not have a standardized meaning prescribed by IFRS. Management believes that Adjusted EBITDA is an appropriate measure in evaluating Avante’s performance. Readers are cautioned that neither EBITDA nor Adjusted EBITDA should be construed as an alternative to net income (as determined under IFRS), as an indicator of financial performance or to cash flow from operating activities (as determined under IFRS) or as a measure of liquidity and cash flow. Avante’s method of calculating Adjusted EBITDA may differ from methods used by other issuers and, accordingly, Avante’s Adjusted EBITDA may not be comparable to similar measures used by other issuers.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
George Rossolatos
CEO
(416) 923-6984 x221
george@avantelogixx.com
Avante Logixx Inc.
Leland Verner
Chairman
(416) 823-7474
leland@avantelogixx.com