Avante Logixx Inc. Announces Results for the Quarter Ended September 30, 2016 and the Appointment of Chief Operating Officer

2017-07-17T23:36:25+00:00

TORONTO-Ontario- November 24, 2016 – Trading symbols: TSX – XX.V, 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 six month period ended September 30, 2016:

RESULTS FOR THE SIX MONTH PERIOD ENDED SEPTEMBER 30, 2016

 

Quarter ended

Six month period ended

 Sep 30, 2016

 Sep 30, 2015

Variance

 Sep 30, 2016

 Sep 30, 2015

Variance

Total revenues

4,983,862

$3,494,705

42.6%

$9,707,246

$6,849,828

41.7%

Revenue – Recurring Monitoring and Response[1]

1,502,693

1,468,690

2.3%

2,964,447

2,915,801

1.7%

Revenue – Other security services and transport

3,481,169

2,026,015

71.8%

6,742,799

3,934,027

71.4%

Total gross profit

1,674,466

1,403,605

19.3%

3,460,704

2,659,332

30.1%

Adjusted EBITDA[2]

495,574

432,078

14.7%

1,123,168

847,783

32.5%

Net income before income tax[3]

195,271

326,582

(40.2%)

566,939

668,770

(15.3%)

Net income for the period

157,749

237,597

(33.6%)

420,947

484,785

(13.2%)

Basic and diluted income per share

0.002

0.003

0.005

0.006

Total common shares outstanding

81,532,052

81,237,052

81,532,052

81,237,052

Total common shares outstanding – diluted

81,571,590

81,571,118

81,579,067

81,465,709

Total assets

$17,167,284

$15,256,409

$17,167,284

$15,256,409

Total liabilities

5,757,626

4,205,725

5,757,626

4,205,725

Total liabilities (excl. deferred revenue)

3,466,225

2,067,048

 

3,466,225

2,067,048

 

Deferred revenue

2,291,401

2,203,745

 

2,291,401

2,203,745

 

Shareholders’ equity

11,409,658

10,985,615

 

11,409,658

10,985,615

Non-controlling interests

432,649

– 

 

432,649

[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 $171,569 for the quarter and $265,700 for the six month period

During the quarter, the Company generated revenues of $4,983,862 an increase of 42.6% over the quarter ended September 30, 2015. Non-recurring revenues grew by 71.8%, primarily driven by the inclusion of CWL revenues, while recurring revenues grew by 2.3%. Non-recurring revenues showed an organic growth of 14.6%. CWL contributed $1,157,698 to the revenues for the quarter. Overall gross margin for the quarter was $1,674,467 or 33.6% as compared to $1,403,605 or 40.2% for the quarter ended September 30, 2015. The blended gross margin on rapid response, secure transport, international security travel advisory segment and monitoring services was 44.4% for the quarter ended September 30, 2016, as compared to 49.4% for the quarter ended September 30, 2015. Gross margin on installations was 9.0% for the quarter as compared to 12.0% for the same quarter in the prior year.  The Company did face installation margin challenges during the quarter, but management expects that the coming quarters will fare better as it has taken measures to increase revenues and also improve efficiencies in its execution of system integration job orders. Adjusted EBITDA for the quarter amounted to $495,574 as compared to $432,078 for the quarter ended September 30, 2015. Net income for the quarter was $195,271, as compared to $326,582 in the same quarter of last year, due to increase in share based payments, depreciation and amortization.

For the six month period, revenues grew by 41.7% over the same period last year. Non-recurring revenues grew by 71.4%, while recurring revenues grew by 1.7%. Non-recurring revenues showed organic growth of 8.5% for the six month period. CWL contributed $2,472,804 of revenues for this period. Gross margin for the six month period was $3,460,704 or 35.7% as compared to $2,659,332 or 38.8% for the same period last year. Adjusted EBITDA for the six month period ended September 30, 2016 amounted to $1,123,168 as compared to $847,783 for same period last year.

Avante’s CEO, George Rossolatos expressed satisfaction with the results for the quarter and the six month period, while acknowledging the need to improve installation margins. According to George, “we are very happy with the progress of our strategy.  We continue to work to grow the top line and create further efficiencies in the organization as a result of our acquisitions. Certain actions and directives are being executed and implemented which will result in improved margins in the systems integrations business. Further, ASI will be putting forth a price increase on recurring revenues for the first time in several years. CWL has been playing a critical role in ensuring that that cross-selling opportunities are fully optimized. Towards furthering this endeavour, office improvements are being undertaken at the CWL showroom wherein the products / offerings of all the group companies will be on display. Avante continues to pursue several acquisition targets and is hopeful of closing one or more of these in the coming quarters.”

APPOINTMENT OF CHIEF OPERATING OFFICER

George Rossolatos is pleased to announce the appointment Rodney Wechsler (“Rod”) to the newly created position of Chief Operating Officer (“COO”) of Avante Logixx Inc. As Founder and President of INTO, Rod has played a key role in the development of INTO’s business. In the two years since Avante’s acquisition of INTO, he has helped grow its business by almost 50%. In his new role, Rod will play a significant role in the strategy and execution of the operations of ASI, while remaining as the President of INTO. Rod will help execute a plan to integrate the systems integration teams, and consolidate the 24/7 support centres of both these subsidiaries under one roof and create a unified sales and fulfillment strategy.

‘We are very excited to appoint Rod to the position of COO. We believe he will add meaningful value to the entire Avante group, given his track record at INTO. We expect his appointment to this new role to accelerate value creation going forward”, said George Rossolatos.

CONFERENCE CALL

As announced on Wednesday, November 23, 2016, Avante will be hosting a conference call on Monday, November 28, 2016, 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: 66594800

Playback details below, available until December 12, 2016:

Local: (+1) 416-764-8692            Toll Free: (+1) 877-674-7070                   Playback Pin: 594800#

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.