Not for distribution to U.S. news wire services or for dissemination in the United States
TORONTO, Aug. 25, 2017 – Avante Corp Inc. (TSXV: XX)(“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 June 30, 2017:
RESULTS FOR THE PERIOD ENDED JUNE 30, 2017
| Period ended | |||
|---|---|---|---|
| June 30, 2017 | June 30, 2016 | Variance (%) |
|
| Total revenues | 5,385,006 | 4,723,384 | 14.00% |
| Revenues – Recurring Monitoring and Response[1] | 1,576,863 | 1,491,754 | 5.70% |
| Revenues – Other Security Services | 3,808,143 | 3,231,630 | 17.80% |
| Total gross profit | 1,949,079 | 1,786,238 | 9.10% |
| Adjusted EBITDA[2] | 648,303 | 627,601 | 3.30% |
| Net income before tax | 306,341 | 371,674 | |
| Net income for the period | 201,341 | 263,204 | |
| Basic income per share | 0.002 | 0.003 | |
| Diluted income per share | 0.002 | 0.003 | |
| Total common shares outstanding | 81,532,052 | 81,382,052 | |
| Total common shares outstanding (diluted) | 81,748,163 | 81,727,145 | |
| Total assets | 19,666,233 | 16,465,865 | |
| Total liabilities | 7,300,885 | 5,275,152 | |
| Total liabilities (excl. deferred revenue and bank debt) | 3,726,116 | 2,916,657 | |
| Deferred revenue | 3,394,267 | 2,233,753 | |
| Bank and other debt | 180,502 | 124,742 | |
| Shareholders’ equity | 12,365,347 | 11,190,713 | |
| Equity holders of the parent | 11,396,555 | 10,730,923 | |
| Non-controlling interest | 968,792 | 459,790 |
The CEO of Avante, George Rossolatos, announced the Company’s results for the period ended June 30, 2017. During the period, the Company generated revenues of $5,385,006, an increase of 14.0% as compared to $4,723,384 for the period ended June 30, 2016. This increase was attributable to: a) organic growth in monitoring and premium executive response service offerings; b) the addition of Architronics as of March 1, 2017, which generated $523,828 of revenues for the quarter from the sale of home and commercial automation installations. Revenues from recurring monitoring and response services grew by 5.7%, largely owing to a 10% increase in the number of subscribers to the Company’s executive response services and to a price increase on the Company’s premium response packages, instituted in February 2017. Revenues from other security services (residential and commercial security installations and services, lock services and smart home and commercial automation services) grew by 17.8%, aided by a 7.1% increase in revenues from installations of residential and commercial security systems, and the addition of Architronics’ installation revenues, partially offset by reduction in revenues from the non-core guard services.
Overall gross margin for the period ended June 30, 2017 was $1,949,079 or 36.2% as compared to $1,786,238 or 37.8% for the period ended June 30, 2016. The gross margin before expensing $60,000 of fair value adjustment of inventory (following the acquisition of CWL) was 37.3%. The blended gross margin from the rapid response, secure transport, international security travel advisory and monitoring services was 52.2% for the period, as compared to 50.8% for the period ended June 30, 2016. Gross margin on residential and commercial security installations was 15.0% for the period ended June 30, 2017 as compared to 17.6% for the period ended June 30, 2016. With the integration of the technical services teams of ASI and INTO nearing completion, the Company expects that this margin will improve even further in the next quarters.
The Company’s Adjusted EBITDA for the period ended June 30, 2017 was $648,303 as compared to $627,601 period ended June 30, 2016.
According to George Rossolatos, CEO of Avante, “We are pleased with the results for the first quarter of fiscal year 2018. We are working towards ensuring that activity levels are maximized across all subsidiaries. CWL and Architronics are building a significant order backlog which should translate to increased revenues.”
Mr. Rossolatos further commented that, “We continue to improve our systems infrastructure in anticipation of further growth. Also, we are optimistic with regard to several acquisition targets which are currently in our pipeline.”
Net income before taxes amounted to $306,341 for the period ended June 30, 2017 as compared to $371,674 for the period ended June 30, 2017. This was after recognizing certain non-cash expenses such as amortization of $130,450 on intangible assets (June 30, 2016: $103,300), fair value adjustment of $60,000 (June 30, 2016: $nil) of CWL inventory, and share based payments of $64,968 (June 30, 2016: $41,298).
The Company continues to generate steady cash flows from operations and maintains approximately $3 million of cash presently on hand and no long term debt.
CONFERENCE CALL
As announced on Wednesday, August 23, 2017, Avante will be hosting a conference call to discuss the aforementioned results on Monday, August 28, 2017, 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: 03710566
Playback details below, available until Tuesday, September 12, 2017:
Local: (+1) 416-764-8692 Toll Free: (+1) 877-674-7070 Playback Pin: 710566 #
About Avante Corp
Avante Corp 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), City Wide Locksmiths Ltd. (www.citywidelocksmith.ca) and Architronics Limited (www.architronics.com) 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.avantecorp.ca and consider joining our investor email list.
George Rossolatos
Director
(416) 923-6984 x200
george@avantecorp.ca
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.