Avante Corp Inc. Announces Results for the Year Ended March 31, 2018

TORONTO, Jul.26, 2018  – Avante Corp Inc. (TSXV: XX)(OTC: ALXXF) (“Avante” or the “Company”)is pleased to announce its results for the fourth quarter and the full year ended March 31, 2018 (all amounts in Canadian dollars, unless otherwise indicated).

“I am pleased with the results for the year, with the efforts that we have made streamlining our technical operations and we continue to explore opportunities to expand our footprint into new geographies.” said Craig Campbell, CEO at Avante. “I am confident that we will build upon our success through ongoing operational improvements, by realizing organic revenue growth opportunities and by executing on our plan of accretive M&A. Order backlogs continue to increase, cross-selling has shown early success between the operating units and Avante is assessing numerous acquisition opportunities which are at varying stages. We have begun to make significant investments in digital marketing initiatives, particularly social media, to attract new customers while further enhancing the quality of services to existing customers. I am also pleased with the operational and financial improvements that we have seen to date and I believe that we are well positioned to be a leading security services provider in Ontario and across Canada.”

FY 2018 Highlights

• Generated revenues of $23,336,570 for the year ended March 31, 2017 which represented 11.7% YoY growth
• Recurring revenue grew by 9.4% and non-recurring revenue grew by 12.4%
• Gross margin expanded to 35.5% as compared to 32.7% for the year ended March 31, 2017
• Gross profit grew by 21.4% to $8,286,961 over FY 2017
• Realized Adjusted EBITDA of $2,381,417, a 13.1% increase over the previous year
• Grew net income to $279,517, up 13.1% YoY

RESULTS FOR THE YEAR ENDED MARCH 31, 2018

Three-month period ended

Avante Corp generated revenues of $23,336,570 for the year ended March 31, 2017 which represented an 11.7% growth over $20,898,368 of revenues registered for the year ended March 31, 2017. Gross profit grew by 21.4% to $8,286,961 from the previous year’s $6,824,569.

The growth in recurring revenues, of 9.4% was attributable to significant increases in the number of new customers who signed up to Avante’s premier alarm response and video monitoring services. Revenues from other security services which are non-recurring, grew by 12.6%, primarily due to the inclusion of home and commercial automation revenues from Architronics Limited. Also, revenues form high-end residential security installations / services grew by over 20%, while locksmithing services and sale of fine hardware grew by about 12%.

Gross margin for the year ended March 31, 2018 was 35.5% as compared to 32.7% for the year ended March 31, 2017. The improvement in margins was attributable to the inclusion of the home and commercial automation installation business, as well as improvements in residential security installations, which was due to efficiencies achieved by integrating the residential and commercial installations teams.

Adjusted EBITDA for the year amounted to $2,381,417, which represented a 13% growth over the previous year. With restructuring initiatives made in Operations in the last quarter of the year, the Company is well positioned to further growth in Adjusted EBITDA in fiscal year 2019.

Net income before taxes amounted to $417,219, which was lower than last year’s $463,559. This was after recognizing one-time reorganization costs of $999,415 (March 31, 2017: $96,470) on the strategic review undertaken between September 2017 and January 2018 and restructuring costs incurred in March 2018. Adjusted net income before taxes before recognizing the one-time reorganization / restructuring costs was $1,416,634.

The Company’s Balance Sheet continues to be very strong, with no debt other than vehicle and leasehold loans. The recent capital raise of $8.6 million (gross) has enabled cash on hand to be in excess of $11 million, giving the company an opportunity to achieve its growth targets and make accretive investments.

CONFERENCE CALL

Avante will be hosting a conference call to discuss the aforementioned results on Monday, August 27, 2018, at 8:30 AM EST.

Dial in details are as follows: 

Local: (+1) 416-764-8658
Toll Free: (+1) 888-886-7786
Conference ID: 98460012

Playback details below, available until September 7, 2018:

Local: (+1) 416-764-8692
Toll Free: (+1) 877-674-7070
Playback Pin: 166219 #

This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities described herein in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This news release does not constitute an offer of securities for sale in the United States. The securities described herein have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent registration under U.S. federal and state securities laws or an applicable exemption from such U.S. registration requirements.

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.