Avante Logixx Inc. Announces Results for the Six Month Period Ended September 30, 2015

2017-07-23T16:45:52+00:00

TORONTO-Ontario- November 17, 2015 – Trading symbols: TSX – XX.V, OTC – ALXXF

Avante Logixx Inc., (“Avante” the “Company” or the “Group”) 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 and six month period ended September 30, 2015:

Results for the Six Month Period Ended September 30, 2015

Quarter ended

Six month period ended

 Sep 30, 2015

 Sep 30, 2014

Variance

 Sep 30, 2015

 Sep 30, 2014

Variance

Total revenues

$3,494,705

$2,213,782

57.9%

$6,849,828

$4,240,042

61.6%

Revenues – Recurring Monitoring and Response[1]

1,450,884

972,127

49.2%

2,897,995

1,828,587

58.5%

Revenues from other security services and transport

2,043,821

1,241,655

64.6%

3,951,833

2,411,455

63.9%

Total gross profit

1,403,605

844,383

66.2%

2,659,332

1,633,860

62.8%

Adjusted EBITDA[2]

432,078

263,653

63.9%

855,155

487,512

75.4%

Net income before income tax

326,582

157,740

107.0%

668,770

356,795

87.4%

Net income for the period

237,597

102,740

131.3%

484,785

255,795

89.5%

Basic income per share

0.003

0.001

0.006

0.003

Diluted income per share

 0.003

 0.001

0.006

0.003

Total common shares outstanding

81,237,052

74,796,739

81,237,052

74,796,739

Total common shares outstanding – diluted

81,571,118

75,292,381

81,465,709

74,626,702

Total assets

$15,256,409

$11,902,931

$15,256,409

$11,902,931

Total liabilities

4,270,794

2,935,577

4,270,794

2,935,577

 Total liabilities (excl. deferred revenue & bank debt))

1,966,916

1,037,775

 

1,966,916

1,037,775

 

 Deferred revenue

2,203,745

1,705,275

 

2,203,745

1,705,275

 

Bank and other debt

100,133

192,527

 

100,133

192,527

Shareholders’ equity

10,985,615

8,967,354

10,985,615

8,967,354

 

[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 costs

CEO George Rossolatos announced Avante Logixx Inc.’s results for the quarter ended September 30, 2015 (“Q2-16”). During the quarter, the Group generated revenues of $3,494,705, an increase of 57.9% over the quarter ended September 30, 2014. This was attributable to growth in recurring revenues, and to the inclusion of INTO in August 2014 and LVS in April 2015. Last year’s comparatives contained only ASI and 40 days results of INTO. Overall gross margin was $1,403,605 or 40.1% as compared to $844,383 or 38.1% in Q2-15. The increase in gross profit (%) was also affected by a SR&ED refund of approximately $248,000 in the current fiscal year with $133,000 of costs associated with this refund appearing in G&A expenses. The Company registered Adjusted EBITDA of $432,078 in Q2-16 as compared to $263,653 in Q2-15.

Overall revenues for the six month period ended September 30, 2014 was $6,849,828, which was 61.6% higher than the $4,240,042 registered for the six month period ended September 30, 2014. This increase was attributable mainly to the inclusion of the new subsidiaries, INTO and LVS. ASI’s recurring revenues grew, particularly the monitoring revenues by 12%. This growth was a result of increased sale of monitoring and video analytics packages. Non-recurring revenues grew mainly due to INTO and LVS’ inclusion. Further, revenues from international travel advisory and security management grew during this six month period. Installation revenues from INTO and LVS showed consistent growth.

Management notes that the acquisitions of INTO and LVS are making a substantial impact to the Company already. With plans for a corporate reorganization in the near future, the Company is confident that future performance of the Company will improve even further. The Company announced its intent to effect a corporate reorganization of ASI and LVS as well as certain management changes, details of which are contained in a separate press release disseminated by the Company today.

The Company also has a significant order backlog for security systems installations, both in high-end residential and condo / commercial real estate sectors, including some large jobs most of which we expect to see significant levels of completion during the current year.

 

Net income before tax for Q2-16 was $326,582 as compared to $157,740 for Q2-15. This was after amortizing intangible assets in the amount of $101,934 and professional fees relating to the SR&ED refund in the amount of $133,000. Net income for the six month period was $484,785 as compared to $255,795 for the same six month period last year.

Based on current trends, and the order backlog, management is confident that the Company will continue to grow at same organic levels in the foreseeable future while it continues to seek new acquisition opportunities.

The Company’s balance sheet is strong with approximately $3,000,000 of cash on hand which will facilitate the Company’s pursuit of other acquisition opportunities.  The Company is currently assessing several promising acquisition opportunities that are strategic and accretive, which on completion of at least one, would further improve market share and profitability.

As announced on November 16, 2015, Avante will be hosting a conference call tomorrow morning (Wednesday, November 18, 2015) to discuss the aforementioned quarterly results at 8:30am EST.

 Dial in details are as follows:  

Local: (+1) 416-764-8646            Toll Free: (+1) 888-396-8049                   Conference ID: 44791399

Playback details below, available until December 4, 2015:

Local: (+1) 416-764-8692            Toll Free: (+1) 877-674-7070

Playback Pin: 791399#

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 ) and recently acquired INTO Electronics Inc., (www.intoelectronics.com ) and 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 and consider joining our investor email list.

Avante Logixx Inc.

George Rossolatos

CEO

(416) 923-6984 x200

george@avantlogixx.com

 


[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 costs