TORONTO, ONTARIO -- (Marketwired) -- 11/17/15 -- Avante Logixx Inc., ("Avante" the "Company" or the "Group") (TSX VENTURE: XX)(OTC PINK: ALXXF) 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
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Quarter ended Six month period ended
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Sep 30, Sep 30, Vari- Sep 30, Sep 30, Vari-
2015 2014 ance 2015 2014 ance
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
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(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.
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.
Contacts:
Avante Logixx Inc.
George Rossolatos
CEO
(416) 923-6984 x221
george@avantelogixx.com
Avante Logixx Inc.
Leland Verner
Chairman
(416) 823-7474
leland@avantelogixx.com
www.avantelogixx.com
