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TORONTO, Feb. 15, 2018 – Avante Corp Inc. (TSX.V: XX) (OTC: ALXXF) (“Avante” or the “Company”)through its subsidiaries, Avante Security Inc. (“ASI”), INTO-Electronics Inc. (“INTO”), City Wide Locksmiths Ltd. (“CWL”) and Architronics Limited (“Architronics”), provides 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, through the use of advanced technology and a focus on client service. The Company is pleased to announce its results for the period ended December 31, 2017:
RESULTS FOR THE NINE MONTH PERIOD ENDED DECEMBER 31, 2017
| Quarter ended | Quarter ended | Nine month period ended | Nine month period ended | |||
|---|---|---|---|---|---|---|
| Dec 31, 2017 | Dec 31, 2016 | Variance | Dec 31, 2017 | Dec 31, 2016 | Variance | |
| Total revenues | $6,016,092 | $5,788,797 | 3.9% | $16,964,193 | $15,496,043 | 9.5% |
| Revenues – Recurring Monitoring and Response[1] | 1,615,922 | 1,525,445 | 5.9% | 4,802,501 | 4,489,892 | 7.0% |
| Revenues – Other Security Services | 4,400,980 | 4,263,352 | 3.2% | 12,161,692 | 11,006,151 | 10.5% |
| Total gross profit | 2,142,877 | 2,043,862 | 4.8% | 6,043,524 | 5,504,566 | 9.8% |
| Adjusted EBITDA[2] | 678,171 | 687,498 | -1.4% | 1,892,167 | 1,810,665 | 4.5% |
| Net income for the period | (15,693) | 339,128 | 272,380 | 760,075 | ||
| Basic and diluted income per share | (0.000) | 0.004 | 0.003 | 0.009 | ||
| Total assets | 21,238,263 | 17,938,599 | ||||
| Total liabilities | 8,737,889 | 6,148,515 | ||||
| Equity | 12,500,374 | 11,520,493 |
Avante’s revenues for the quarter were $6,016,902, an increase of 3.9% over the quarter ended December 31, 2016. For the nine month period, Avante’s revenues grew by 9.5% or $16,964,193. This was a result of a 16.1% increase in alarm response packages sold, and a 2.3% growth in the number of monitoring packages (digital and wireless) sold. In addition, revenues from non-recurring security services including home and commercial automation grew by 3.2%, attributable to increases in installation of residential security and automation systems, locks and international security travel advisory services. The order backlog for commercial security installations continues to be robust.
Overall gross margin for the quarter ended December 31, 2017 was $2,142,877 or 35.6% which was in line with the gross margin for the quarter ended December 31, 2016 as well as the nine month periods ended December 31, 2017 and 2016.
The Company incurred one-time reorganization costs of $357,315 for the quarter and $393,356 for the nine month period ended December 31, 2017. These related to professional fees paid to advisors engaged by the Company to conduct a strategic review to consider various options for the future of the Company. As previously announced, this strategic review has been terminated. Additional costs relating to this review, incurred after the quarter, will be recognized in the quarter ending March 31, 2018.
The Company’s net loss for the quarter was $15,693 after the abovementioned reorganization costs. Adjusted EBITDA for the quarter was $678,171 and $1,892,167 for the nine month period ended December 31, 2017.
The Company maintains $3.7 million of cash, with no long-term debt and continues to generate steady cash flows from operations.
CONFERENCE CALL
Avante will be hosting a conference call to discuss the aforementioned results on Thursday, November 22, 2018, at 5:00 PM EST.
Dial in details are as follows:
Local: (+1) 416-764-8658 Toll Free: (+1) 888-886-7786 Conference ID:85458280
Playback details below, available until March 5, 2018:
Local: (+1) 416-764-8692 Toll Free: (+1) 877-674-7070 Playback Pin: 458280 #
About Avante Corp
Avante Corp Inc. (XX.V) is a Toronto based provider of technology enabled security solutions. We acquire, manage and build industry leading businesses which provide specialized, mission-critical solutions that address the needs of our customers. Our businesses continuously develop innovative solutions that enable our customers to achieve their objectives. With an experienced team and a proven track record of solid growth, we are taking steps to establish a broad portfolio of security businesses to provide our customers and shareholders with exceptional returns. Please visit our website at www.avantecorp.ca and consider joining our investor email list.
FORWARD LOOKING STATEMENTS
All statements in this news release, other than statements of historical fact, may constitute “forward looking information” with respect to Avante within the meaning of applicable securities laws. Forward-looking information is frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur. This forward-looking information includes statements with respect to, among other things, the effective date of the consolidation of the Common Shares.
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 Company being unable to complete the steps necessary to cause the consolidation to occur on the timelines stated in this news release and the risks identified in Avante’s Management Discussion & Analysis, Annual Information Form 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 as there can be no assurance that the credit agreement will be entered into or on the terms described in this news release or at all.
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.