TORONTO, ONTARIO–(Marketwired – Aug. 14, 2015) – Avante Logixx Inc. (TSX VENTURE:XX)(OTCBB:ALXXF), (“Avante” or the “Company”) through its wholly owned subsidiaries, Avante Security Inc. (“ASI”), INTO Electronics Inc. (“INTO”) and LVS Inc. (“LVS”), 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 and electronic building management 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, 2015:
Results for the Quarter Ended June 30, 2015
|June 30, 2015||June 30, 2014||Variance (%)|
|Revenues – Recurring Monitoring and Response (1)||1,447,111||856,460||69.0||%|
|Revenues from other security services and transport||1,908,011||1,169,800||63.1||%|
|Total gross profit||1,255,727||789,477||59.1||%|
|Net income before income tax||342,185||208,055||64.5||%|
|Net income for the period||247,185||153,055||61.5||%|
|Basic income (loss) per share||0.003||0.002|
|Diluted income (loss) per share||0.003||0.003|
|Total common shares outstanding||81,112,052||71,638,843|
|Total common shares outstanding (diluted)||81,518,359||77,664,979|
|Total liabilities (excluding deferred revenue)||2,124,786||936,385|
|Bank and other debt||106,346||-nil-|
Co-CEOs George Rossolatos and Emmanuel Mounouchos announced Avante Logixx Inc.’s results for the quarter ended June 30, 2015 (“Q1-16”). During the quarter, the Company generated revenues of $3,355,122, an increase of 65.6% over the quarter ended June 30, 2014. Recurring revenues grew by approximately 69%, while non-recurring revenues grew by about 63%. Within recurring revenues, rapid response revenues grew by 14.5%, while monitoring revenues (including video analytics) grew by 196%. This increase was due to 14% organic growth in ASI, while the balance was attributable to the acquisition of INTO and LVS. The number of ASI clients who subscribe for rapid alarm response increased by 13.7%. Revenues from new installations doubled primarily due to the inclusion of revenues from INTO and LVS. The Company continues to have a significant pipeline of commercial and installation jobs to be executed over the coming quarters.
Overall gross profit of $1,255,727 or about 37.0% was 59% higher than the $789,477 or 39.0% in the quarter ended June 30, 2014. The decrease was due to the inclusion of the results of INTO and LVS. Gross margin for ASI improved from 39.0% to 39.9%.
The net income after provision for income tax of $95,000 for the quarter amounted to $247,184 as compared to $153,055 for Q1-15. This increase was a result of increase in profitability of ASI as well as contributions from the other two subsidiaries. Gross margin increase of approximately $465,000 was partially set-off by the increase in selling, general and administration expenses arising from the addition of INTO and LVS. Administration expenses of ASI decreased during the quarter owing to decreases in salaries and advertising costs.
“We are pleased with the progress of the Company. We continue to focus on growing the business with a focus on our recurring revenue. Each of ASI, INTO and LVS has been performing well and we continue to look at new acquisition opportunities while working to realize synergies among our operating subsidiaries,” said Co-CEO George Rossolatos.
“The Company has identified several cross-selling opportunities and purchasing efficiencies for all the operating subsidiaries. Further, the Company will be benefit from the consolidation of office space whereby LVS and ASI will be in the same premises effective September 2015,” said Co-CEO Emmanuel Mounouchos.
Management is confident about the continued growth of its recurring and non-recurring revenues as well as the prospects for continuing its acquisition program.
The Company’s balance sheet is strong with over $3,300,000 of cash on hand after the LVS acquisition, which will help the Company’s pursuit of other acquisition opportunities. The Company continues to assess several attractive acquisition opportunities that management believes could be strategic and accretive to the extent acquired.
As announced on August 13, 2015, Avante will be hosting a conference call on Monday, August 17, 2015 to discuss the aforementioned quarterly results at 8:30am EST.
Dial in details are as follows:
Local Toronto 416-764-8658
Toll Free North America 1-888-886-7786
Conference ID: 53640168
Playback details below, available until August 31, 2015:
Local Toronto 416-764-8692
Toll Free North America 1-877-674-7070
Playback Pin: 640168 #
About Avante Logixx (www.avantelogixx.com)
Avante Logixx Inc. (TSX VENTURE:XX) is a Toronto based security and technology company. Its subsidiaries, Avante Security Inc. (www.avantesecurity.com), INTO Electronics Inc., (www.intoelectronics.com ) and recently acquired, LVS Inc. (www.lvssecurity.com), together provide best in class security response and other security services for residential and commercial clients, and high-rise condominium applications, and are industry leaders in designing and installing complex security systems, access control, intelligent video analytics and smart home automation. Its International Travel Security offering helps corporations protect traveling employees working abroad in medium/high risk jurisdictions and has executed travel details in over 60 countries. The company continuously develops innovative products and applications within its core competencies. Please visit our websites at www.avantelogixx.com andwww.avantesecurity.com and consider joining our investor email list. Avante recently conducted a test comparing its rapid alarm response service with that of other alarm companies. For the result of this test please seewww.6minuteresponse.com.
FORWARD LOOKING STATEMENTS
Certain of the statements and information in this press release constitute “forward-looking statements” or “forward-looking information” These statements include, but are not limited to, statements with respect to the entering into of agreements, the closing of transactions and the use of proceeds. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, the timing of transactions, the ability to fulfill certain conditions and obtain regulatory approvals, and the ability to raise funds and use the proceeds as anticipated.
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.
Avante Logixx Inc.
(416) 923-6984 x200
Avante Logixx Inc.