TORONTO, ONTARIO--(Marketwired - Jul 13, 2016) - Avante Logixx Inc., ("Avante" the "Company" or the "Group") (TSX VENTURE:XX)(ALXXF) through its subsidiaries, Avante Security Inc. ("ASI"), INTO Electronics Inc. ("INTO") and City Wide Locksmiths Limited ("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 year ended March 31, 2016:
Results for the Year Ended March 31, 2016
| | | | | |
| | | Year ended | | |
| | | Mar 31, 2016 | | Mar 31, 2015 | | Variance (%) |
| | | | | | | | | |
| Total revenues | | $ | 14,580,662 | | $ | 10,026,343 | | 45.4% |
| | Revenues - Recurring Monitoring and Response1 | | | 5,842,902 | | | 4,108,521 | | 42.2% |
| | Revenues from other security services and transport | | | 8,737,760 | | | 5,917,822 | | 47.7% |
| Total gross profit | | | 5,302,955 | | | 3,880,221 | | 36.7% |
| Income before integration and acquisition costs | | | 958,264 | | | 967,128 | | -0.9% |
| Adjusted EBITDA2 | | | 1,713,241 | | | 1,242,704 | | 37.9% |
| Net income for the period | | | 24,981 | | | 508,050 | | 95.1% |
| Basic income per share | | $ | 0.000 | | $ | 0.007 | | |
| Diluted income per share | | $ | 0.000 | | $ | 0.007 | | |
| | | | | | | | | |
| Total common shares outstanding | | | 81,382,052 | | | 75,654,156 | | |
| Total common shares outstanding (diluted) | | | 81,460,645 | | | 75,804,752 | | |
| Total assets | | $ | 15,697,469 | | $ | 12,796,910 | | |
| Total liabilities | | | 5,221,662 | | | 3,738,580 | | |
| | Total liabilities (excl. deferred revenue and bank debt) | | | 2,941,472 | | | 1,557,809 | | |
| | Deferred revenue | | | 2,191,186 | | | 1,837,390 | | |
| | Bank and other debt | | | 89,004 | | | 343,381 | | |
| Shareholders' equity | | $ | 10,475,807 | | $ | 9,058,330 | | |
| 1 Revenues - Recurring Monitoring and Response includes Alarm Response packages, along with Digital, Wireless and Video Monitoring services |
| 2 Adjusted EBITDA = Net income + Income tax + depreciation/amortization + share based payments + acquisition & integration costs |
CEO George Rossolatos announced Avante Logixx Inc.'s results for the year ended March 31, 2016. During the year, the Company generated revenues of $14,580,662, an increase of 45.4% over the year ended March 31, 2015. This increase was a result of a 7.0% increase in ASI revenues, and the inclusion of INTO and LVS Inc. ("LVS") in the consolidated results. Last year's consolidated revenues included 7.5 months of revenues from INTO while LVS was acquired only on April 1, 2015. Recurring revenues grew by 42.2%, of which INTO and LVS accounted for nearly 76%, while ASI's recurring revenues grew by $423,000. The number of customers subscribing to ASI's rapid response packages increased by 9.8%, while Intelligent Perimeter Protection packages increased by 15.6%. INTO registered a growth of 8% in recurring revenues. Installation and other non-recurring revenues grew by 47.7%, mainly due to the inclusion of INTO and LVS. LVS and INTO generated approximately $3.95 million of installation revenues.
Overall gross margin for fiscal year 2016 was $5,302,955 or 36.4% as compared to $3,880,222 or 38.7% for fiscal year 2015. The blended gross margin on rapid response, secure transport, international security travel advisory segment and monitoring services was 48.7% for the year ended March 31, 2016, which is slightly higher than the 48.0% for the year ended March 31, 2015. Gross margin on installations was 14.0% for the year as compared to 23% for the prior year. With the recent amalgamation of ASI and LVS, and reorganization at the operational and corporate level, this margin is expected to improve significantly in fiscal year 2017, as the merged entity has made significant reductions to labour costs.
The Company registered Adjusted EBITDA of $1,713,241 for the fiscal year 2016 as compared to $1,242,704 in fiscal year 2015, reflecting a growth of 37.9%. Once the full impact of the corporate reorganization is felt in fiscal year 2017, it is expected that the Adjusted EBITDA will further increase.
"This year was a crucial year as we were able to measure the impact of the LVS and INTO acquisitions, to the overall results of the Company. We are extremely satisfied with the progress being made in integrating these companies with ASI and in the organic growth that we have shown. The amalgamation of ASI and LVS was completed on April 1, 2016, while the corporate reorganization and integration was completed by the end of June 2016. We expect fiscal year 2017 would be another impactful year, with good growth projections for revenues, net income and Adjusted EBITDA, especially with the impact of the City Wide acquisition. The Company is adding to its list of monitoring and response sectors, while continuing to have a good order backlog, particularly in the commercial sector," said CEO George Rossolatos.
Net income for the year was $24,981, as compared to $508,050 in the prior year. This was mainly due to the following: a) acquisition and integration costs in the amount of $870,026, which includes a one-time payment of $581,966 to the former Co-CEO; and b) $332,854 increase in amortization of intangible assets identified during the acquisitions of INTO and LVS.
Management is confident that current organic growth levels can be maintained in the fiscal year 2017 while the Company continues to actively seek out new acquisition opportunities.
The Company's balance sheet is strong with sufficient cash to meet its working capital requirements. It is currently looking at certain promising acquisition opportunities, which would be strategic and accretive.
As announced on July 12, 2016, Avante will be hosting a conference call on Friday morning (July 15, 2016) to discuss the aforementioned results at 8:30am EST.
Dial in details are as follows:
Local: (+1) 416-764-8658 Toll Free: (+1) 888-886-7786 Conference ID: 07517789
Playback details below, available until July 29, 2016:
Local: (+1) 416-764-8692 Toll Free: (+1) 877-674-7070 Playback Pin: 517789#
About Avante Logixx (www.avantelogixx.com )
Avante Logixx Inc. (TSX VENTURE: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), LVS Inc. (www.lvssecurity.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.
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) 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.
