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TORONTO, Feb. 17, 2016 –Avante Corp 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 nine month period ended December 31, 2015:
Results for the Nine Month Period Ended December 31, 2015
| Quarter ended | Quarter ended | Six-month period ended | Six-month period ended | |||
|---|---|---|---|---|---|---|
| Dec 31, 2015 | Dec 31, 2014 | Variance | Dec 31, 2015 | Dec 31, 2014 | Variance | |
| Total revenues | 3,899,376 | 2,946,266 | 32.3 % | 10,749,203 | 7,186,308 | 49.6% |
| Revenues – Other security services and transport | 1,497,097 | 972,127 | 54.0% | 4,412,898 | 2,951,984 | 49.5 |
| Revenues – Recurring Monitoring and Response[1] | 2,402,279 | 1,974,139 | 21.7% | 6,336,305 | 4,234,324 | 49.6% |
| Total gross profit | 1,350,594 | 1,159,724 | 16.5% | 4,010,731 | 2,793,584 | 43.6 % |
| Adjusted EBITDA[2] | 267,458 | 262,200 | 2.0% | 950,261 | 712,422 | 33.4% |
| Net income before tax[3] | 431,363 | 365,244 | 18.1% | 1,286,521 | 852,216 | 51.0% |
| Net income for the period | (304,821) | 225,722 | 179,966 | 481,518 | ||
| Basic and diluted income per share | (0.004) | 0.003 | 0.002 | 0.006 | ||
| Diluted income (loss) per share | (0.004) | 0.003 | 0.002 | 0.006 | ||
| Total common shares outstanding | 81,382,052 | 74,846,739 | 81,382,052 | 74,846,739 | ||
| Total common shares outstanding – diluted | 84,104,752 | 77,036,706 | 83,337,948 | 75,362,503 | ||
| Total assets | 15,160,343 | 12,243,141 | 15,160,343 | 12,243,141 | ||
| Total liabilities | 4,399,135 | 2,975,086 | 4,399,135 | 2,975,086 | ||
| Liabilities (excl. deferred revenue) | 2,058,600 | 1,089,011 | 2,058,600 | 1,089,011 | ||
| Deferred revenue | 2,245,919 | 1,766,740 | 2,245,919 | 1,766,740 | ||
| Shareholders’ equity | 94,616 | 119,335 | 94,616 | 119,335 | ||
| Non-controlling interests | 10,761,208 | 9,268,055 | 10,761,208 | 9,268,055 |
CEO George Rossolatos announced Avante Corp Inc.’s results for the quarter and nine month ended December 31, 2015 (“Q3-16”). During the quarter, the Group generated revenues of $3,899,376, an increase of 32.3% over the quarter ended December 31, 2014. This increase was a result of a 16.2% increase in ASI revenues apart from the inclusion of INTO and LVS in the consolidated results. Recurring revenues grew by 54%, a result of a 12% growth in sale of alarm response packages, and 144% growth in monitoring revenues which was caused by a 11% organic growth in ASI while the balance was attributable to the acquisition of INTO and LVS. Last year’s comparatives did not include LVS, and only four and a half months of results for INTO. Overall gross margin for the Q3-16 was $1,350,594 or 34.6% as compared to $1,159,724 or 39.3% in Q3-15. The Company registered Adjusted EBITDA of $431,363 in Q3-16 as compared to $365,244 in Q3-15.
Overall revenues for the nine month period ended December 31, 2015 was $10,749,203, which was 49.6% higher than the $7,186,308 for the nine month period ended December 31, 2014. This increase was attributable mainly to the inclusion of the new subsidiaries, INTO and LVS. ASI’s recurring revenues grew, on account of a 13.2% growth alarm response and 11.2% growth in monitoring. Non-recurring revenues grew mainly due to the inclusion of INTO and LVS’ operations. International travel advisory and security management continues to mature, with good prospects for the next quarter. Installation revenues from INTO and LVS showed consistent growth, and a significant pipeline of orders is building up, particularly in the commercial sector.
“We are pleased with the Company’s progress this quarter. The integration of ASI and LVS is under way, and is expected to be completed by the end of March 2016. Once the integration of the brands, systems and personnel are completed, the Company will begin to realize operational synergies,” said CEO George Rossolatos. As indicated in the last quarter, the Company also has a significant order backlog for security systems installations, both in high-end residential and condo / commercial real estate sectors, most of which will see significant levels of completion over the next 2 to 3 quarters.
Income from operations amounted to $267,458 for the quarter and $950,261 for the nine month period ended December 31, 2015. Net loss before tax for Q3-16 was $304,821 as compared to a profit of $225,722 for Q3-15. This was primarily due to incurrence of integration and acquisition costs amounting to $622,279 in the Q3-16.
Management is confident that organic growth levels can be sustained at current levels in the next 2 quarters, while the Company continues to actively seek out new acquisition opportunities.
The Company’s balance sheet is strong with over $3,000,000 of cash on hand which will facilitate the Company’s pursuit of other acquisition opportunities. The Company is currently assessing a few acquisition opportunities, one of which is in the due diligence stage, that if completed on terms acceptable to the Company will be strategic and accretive, and would further improve market share and profitability.
As announced on February 16, 2016, Avante will be hosting a conference call tomorrow morning (Thursday, February 18, 2016) to discuss the aforementioned quarterly results at 8:30am EST.
Dial in details are as follows:
Local: (+1) 416-764-8658 Toll Free: (+1) 888-886-7786 Conference ID: 23771614
Playback details below, available until March 4, 2016:
Local: (+1) 416-764-8692 Toll Free: (+1) 877-674-7070
Playback Pin: 771614#
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.
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.
(1) Revenues – Recurring, Monitoring and Response includes Alarm Response along with Digital, Wireless and Video Monitoring services
(2) Adjusted EBITDA – Income from operations + depreciation and amortization + share based payments + integration costs