TORONTO, Feb. 23, 2017 (GLOBE NEWSWIRE) -- Trading symbols: (TSX-V: XX ), (OTC:ALXXF)
Avante Logixx Inc., (“Avante” the “Company” or the “Group”) 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 and nine month period ended December 31, 2016:
RESULTS FOR THE NINE MONTH PERIOD ENDED DECEMBER 31, 2016
| Quarter ended | Nine month period ended | ||||||||||||
| Dec 31, 2016 | Dec 31, 2015 | Variance | Dec 31, 2016 | Dec 31, 2015 | Variance | ||||||||
| Total revenues | $ | 5,788,796 | $ | 3,899,376 | 48.5 | % | $ | 15,496,043 | $ | 10,749,203 | 44.2 | % | |
| Revenue - Other security services and transport | 4,263,351 | 2,402,279 | 77.5 | % | 11,006,150 | 6,336,305 | 73.7 | % | |||||
| Revenue - Recurring Monitoring and Response [1] | 1,525,445 | 1,497,097 | 1.9 | % | 4,489,892 | 4,412,898 | 1.7 | % | |||||
| Total gross profit | 2,043,862 | 1,350,594 | 51.3 | % | 5,504,566 | 4,010,731 | 37.2 | % | |||||
| Adjusted EBITDA [2] | 687,498 | 423,996 | 62.1 | % | 1,810,665 | 1,286,521 | 40.7 | % | |||||
| Net income before income tax [3] | 464,128 | (354,820 | ) | 1,031,067 | 313,951 | ||||||||
| Net income for the period | 339,128 | (304,821 | ) | 760,075 | 179,966 | ||||||||
| Basic and diluted income per share | $ | 0.004 | $ | (0.004 | ) | $ | 0.008 | $ | 0.002 | ||||
| Total common shares outstanding | 81,532,052 | 81,375,802 | 81,532,052 | 81,382,052 | |||||||||
| Total common shares outstanding - diluted | 81,767,422 | 84,104,782 | 84,104,782 | 83,337,948 | |||||||||
| Total assets | $ | 17,938,600 | $ | 15,160,343 | |||||||||
| Total liabilities | 6,148,515 | 4,399,134 | |||||||||||
| Total liabilities (excl. deferred revenue) | 3,644,035 | 2,153,215 | |||||||||||
| Deferred revenue | 2,504,481 | 2,245,919 | |||||||||||
| Shareholders' equity | $ | 11,340,884 | $ | 10,761,209 | |||||||||
| Non-controlling interests | $ | 449,200 | - | ||||||||||
During the quarter, the Company generated record revenues of $5,788,796, an increase of 48.5% over the quarter ended December 31, 2015. Non-recurring revenues grew by 77.5%, primarily driven by the inclusion of CWL revenues and significant organic growth in commercial security installations. The Company registered organic growth in non-recurring revenues for the quarter was approximately 16.0%. CWL, which was acquired on April 1, 2016, contributed $1,272,232 to the Company’s revenues for the quarter. The Company’s overall gross profit for the quarter was $2,043,862 or 35.3% as compared to $1,350,594 or 34.6% for the quarter ended December 31, 2015. The blended gross margin on rapid response, secure transport, international security travel advisory segment and monitoring services was 49.0% for the quarter ended December 31, 2016, as compared to 46.4% for the quarter ended December 31, 2015. Gross margin from installations was 17.7% for the quarter as compared to 16.6% for the same quarter in the prior year. The improvement in margin on installations is attributable to efficiencies in the execution of system integration job orders. Adjusted EBITDA for the quarter amounted to $687,498 as compared to $423,996 for the quarter ended December 31, 2015, while net income for the quarter amounted to $339,128, as compared to a loss of $304,821 in the same quarter of last year. The loss in this quarter last year was attributable to certain integration costs amounting to $622,279, and increases in share based payments, depreciation and amortization.
For the nine month period, revenues grew by 44.2% over the same period last year. Non-recurring revenues grew by 73.7%, while recurring revenues grew by 1.7%. Non-recurring revenues showed organic growth of 14.6% for the nine month period. CWL’s contribution to the overall revenues amounted to $3,745,036 for the nine month period ended December 31, 2016. Gross margin for the nine month period was $5,504,566 or 35.5% as compared to $4,010,731 or 37.3% for the same period last year. Adjusted EBITDA for the nine month period ended December 31, 2016 amounted to $1,810,665 as compared to $1,286,521 for same period last year.
Avante’s CEO, George Rossolatos said, while commenting on the results for the quarter and the nine month period, “We are very pleased with the results for the third quarter. Certain initiatives which were put in place the end of the previous quarter are starting to yield results, particularly in the systems integration division. The integration of the technical services teams of ASI and INTO will further improve labour efficiencies, which will have a favourable impact on profitability.”
Over the past six months, CWL has been offering preferential rates on its offerings to existing Avante customers. This initiative has been received very well by the customers, resulting in incremental revenues for CWL and the Company. Also, the showroom in which all the offerings of the Company are on display has already caught the attention of regular customers. The Company believes that this could have a significant impact in improving the top line of the Company in the coming quarters.
Avante’s acquisitions over the past two years have been performing well. Avante also continues to pursue several acquisition targets and is hopeful of closing one before the end of the current fiscal year.
CONFERENCE CALL
As announced on Tuesday, February 21, 2017, Avante will be hosting a conference call to discuss the aforementioned results on Monday, February 27, 2017 at 8:30 AM EST.
Dial in details are as follows:
Local: (+1) 416-764-8658 Toll Free: (+1) 888-886-7786 Conference ID: 42701904
Playback details below, available until March 13, 2017:
Local: (+1) 416-764-8692 Toll Free: (+1) 877-674-7070 Playback Pin: 701904#
About Avante Logixx ( www.avantelogixx.com ) Avante Logixx Inc. (TSXV: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 ), 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.
Avante Logixx Inc.
George Rossolatos CEO (416) 923-6984 x221 george@avantelogixx.com
Leland Verner Chairman (416) 823-7474 leland@avantelogixx.com
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), Annual Information Form (AIF) 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.
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1 Revenues – Recurring Monitoring and Response includes Alarm Response along with Digital, Wireless and Video Monitoring services
2 Adjusted EBITDA = Net income + income tax + depreciation / amortization + shared based payments expense + acquisition and integration costs
3 Share based payments and acquisition related amortization increased by $138,420 and $158,500 for the nine month period
