TORONTO, July 31, 2017 (GLOBE NEWSWIRE) — Avante Logixx Inc., (“Avante” the “Company” or the “Group”) (TSX:XX.V) (OTC:ALXXF) through its subsidiaries, Avante Security Inc. (“ASI”), INTO-Electronics Inc. (“INTO”), City Wide Locksmiths Ltd. (“CWL” or “City Wide”) and Architronics Limited (“Architronics”), provides 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, through the use of advanced technology and a focus on client service. The Company is pleased to announce its results for the year ended March 31, 2017:
RESULTS FOR THE YEAR ENDED MARCH 31, 2017
|Mar 31, 2017||Mar 31, 2016||Variance (%)|
|Revenues – Recurring Monitoring and Response1||5,956,991||5,842,902||2.0||%|
|Revenues – Other Security Services||14,941,377||8,737,760||71.0||%|
|Total gross profit||6,824,569||5,302,955||28.7||%|
|Net income before tax||463,559||88,238|
|Net income for the year||247,138||24,981|
|Basic income per share||$||0.004||$||0.000|
|Diluted income per share||$||0.004||$||0.000|
|Total common shares outstanding||81,532,052||81,382,052|
|Total common shares outstanding (diluted)||81,887,844||81,460,645|
|Total liabilities (excl. deferred revenue and bank debt)||3,941,619||2,941,472|
|Bank and other debt||195,390||89,004|
|Equity holders of the parent||11,160,891||10,475,807|
The CEO of Avante, George Rossolatos, announced the Company’s results for the year ended March 31, 2017. During the year, the Company generated revenues of $20,898,368, an increase of 43.3% over the $14,580,662 generated for the year ended March 31, 2016. This increase was mainly due to: a) the acquisition of CWL which contributed $5,272,544; and b) increase of $784,031 in the revenues from commercial installations of security systems. Revenues from recurring monitoring and response services grew by 2%, while revenue from other security services (residential and commercial security installations and services, lock services and smart home and commercial automation services) grew by about 71%.
The Company registered a net increase of 10% in the number of customers who subscribed for its premium alarm response and video analytics packages, with a nominal growth in the number of customers who subscribe for basic monitoring services. Management instituted a price increase in February 2017 on its premium alarm response services, the full impact of which be felt in the next fiscal year.
Overall gross margin for the year ended March 31, 2017 was $6,824,569 or 32.7% as compared to $5,302,955 or 36.4% for the year ended March 31, 2016. The blended gross margin from the rapid response, secure transport, international security travel advisory and monitoring services was 49.3% for the year ended March 31, 2017, which is comparable with a blended gross margin of 49.1% for the year ended March 31, 2016. Gross margin on installations was 13.8%, which is slightly lower than the 14.8% for the previous year ended March 31, 2016. This slight decrease in margin on installations is due to increased weight on commercial installations, as well as additional costs in strengthening the Company’s infrastructure which supports the systems integration department in anticipation of future acquisitions.
The Company’s Adjusted EBITDA for the year ended March 31, 2017 was $2,144,555 as compared to $1,713,241 for the year ended March 31, 2016. Once the integration of the residential and commercial installations infrastructure is completed and enhanced reporting systems are put in place by the end of Q2-18, the Company expects improvements in efficiencies and productivity to occur over time, which will enable Adjusted EBITDA to further increase.
According to George Rossolatos, CEO of Avante, “We are pleased with the results for the fiscal year. While we have made significant strides integrating the acquired businesses, we have not made EBITDA maximization our primary focus to date as we are in the process of building a strong infrastructure which can handle much higher volumes of activity than at present, given our acquisition strategy. The Company has invested in integrating systems that are geared towards: a) better contract management, which includes quote generations and labour tracking; b) customer relationships; and c) inventory management. For City Wide, we set up a bespoke studio showroom in Toronto during the fiscal year to cater to designers and architects, and initiated another in Oakville, Ontario to be completed in the coming year, to promote and sell certain niche products in custom and fine hardware. We expect significant additions to our order backlog across the Company, and believe that these will contribute towards a strong fiscal year 2018. We continue to assess a pipeline of acquisition targets in security verticals.”
Net income before taxes amounted to $463,559 as compared to $88,238 for the previous year. This was after recognizing certain non-cash expenses such as amortization of $530,809 on intangible assets (March 31, 2016: $433,489), fair value adjustment of $225,000 of CWL inventory, and share based payments of $451,072 (March 31, 2016: $132,698).
The Company continues to have a strong balance sheet with over $3 million of cash presently on hand and no long term debt. Management is hopeful that one or more acquisition targets may close in the coming quarters.
As announced on Friday, July 28, 2017, Avante will be hosting a conference call to discuss the aforementioned results on Tuesday, August 1, 2017, to discuss the aforementioned results at 8:30 AM EST.
Dial in details are as follows:
Local: (+1) 416-764-8658 Toll Free: (+1) 888-886-7786 Conference ID: 81142475
Playback details below, available until August 15, 2017:
Local: (+1) 416-764-8692 Toll Free: (+1) 877-674-7070 Playback Pin: 142475#
About Avante Logixx
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), City Wide Locksmiths Ltd. (www.citywidelocksmith.ca) and Architronics Limited (www.architronics.com) 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), 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.
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, expensing of CWL fair value adjustment in accordance with International Financial Reporting Standards (“IFRS”) less non-controlling interest’s share. Neither EBITDA nor Adjusted EBITDA is an earnings measure recognized by 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.
1 Revenues – Recurring Monitoring and Response includes Alarm Response along with Digital, Wireless and Video Monitoring services
2 Adjusted EBITDA – Net income before taxes + Depreciation + Amortization of intangibles + Share Based Payments + Acquisition and integration costs + Expensing of CWL fair value adjustment per IFRS (-) Non-controlling interest’s share
Avante Logixx Inc. George Rossolatos CEO (416) 923-6984 x200 firstname.lastname@example.org Leland Verner Chairman (416) 823-7474 email@example.com