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TORONTO, Aug.25, 2016 –Avante Corp Inc., (“Avante” the “Company” or the “Group”) through its subsidiaries, Avante Security Inc. (“ASI”), INTO Electronics Inc. (“INTO”) and City Wide Locksmiths Ltd. (“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 quarter ended June 30, 2016:
Results for the Quarter ended June 30, 2016
| Quarter ended | |||
|---|---|---|---|
| June 30, 2016 | June 30, 2015 | Variance (%) |
|
| Total revenues | 4,723,384 | 3,355,122 | 40.8% |
| Revenues – Recurring Monitoring and Response[1] | 1,491,754 | 1,447,111 | 3.0% |
| Revenues – Other Security Services | 3,231,630 | 1,908,011 | 69.3% |
| Total gross profit | 1,786,238 | 1,255,727 | 42.2% |
| Adjusted EBITDA[2] | 648,303 | 421,700 | 48.8% |
| Net income before tax | 306,341 | 342,184 | 8.69% |
| Net income for the period | 201,341 | 247,184 | 6.5% |
| Basic income per share | 0.002 | 0.003 | |
| Diluted income per share | 0.002 | 0.003 | |
| Total common shares outstanding | 81,382,052 | 81,112,052 | |
| Total common shares outstanding (diluted) | 81,727,145 | 82,559,552 | |
| Total assets | 16,465,865 | 14,941,239 | |
| Total liabilities | 5,275,152 | 4,205,725 | |
| Total liabilities (excl. deferred revenue and bank debt) | 2,916,657 | 2,018,440 | |
| Deferred revenue | 2,233,753 | 2,080,939 | |
| Bank and other debt | 124,742 | 106,346 | |
| Shareholders’ equity | 11,190,713 | 10,735,514 | |
| Equity holders of the parent | 10,730,923 | 10,735,514 | |
| Non-controlling interest | 459,790 | – |
During the quarter, the Company generated revenues of $4,723,384, an increase of 40.8% over the quarter ended June 30, 2015. Revenue increased on both an organic basis and via the contribution of the recently acquired CWL. CWL contributed approximately $1.3 million to the revenues for the quarter.
Overall gross margin for the quarter was $1,786,238 or 37.8% as compared to $1,255,727 or 37.4% for the quarter ended June 30, 2015. The blended gross margin on rapid response, secure transport, international security travel advisory segment and monitoring services was 50.8% for the quarter ended June 30, 2016, which is in line with the 51.0% for the quarter ended June 30, 2015. Gross margin on installations was 17.6% for the quarter as compared to 15.6% for the same quarter in the prior year. The Company has made considerable progress in optimizing the acquisitions and realizing synergies in the past several months which we believe will have a positive impact on earnings in the coming quarters.
Adjusted EBITDA for the quarter amounted to $627,600 as compared to $421,700 for the quarter ended June 30, 2015. Net income for the year was $263,204, as compared to $247,184 in the prior year. Management expects that the Company will continue in a similar trajectory for the rest of the year.
“We are happy with the progress of Avante,” said CEO George Rossolatos, “and we continue to work to grow the business organically and via acquisition. Much work has been completed on the integration in the past quarter which will have a positive impact going forward. The latest acquisition in CWL, has validated our belief in growing by acquiring companies in other security related sectors. We continue to look at other targets which are likely to mesh well with our existing business and culture.”
As announced yesterday, Avante will be hosting a conference call on Monday, August 29, 2016, to discuss the aforementioned results at 8:30 AM EDT.
Dial in details are as follows:
Local: (+1) 416-764-8658 Toll Free: (+1) 888-886-7786 Conference ID: 92493624
Playback details below, available until September 12, 2016:
Local: (+1) 416-764-8692 Toll Free: (+1) 877-674-7070 Playback Pin: 493624#
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
CEO
(416) 923-6984
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] Revenue: Recurring Monitoring and Response includes Alarm Response along with Digital, Wireless and Video Monitoring Services
[2] Adjusted EBITDA is Net income before interest, taxes, depreciation and amortization, share based payments and acquisition and integration costs