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Avante Corp Inc. Announces Adjusted Ebitda Of $1.63 Million For The Third Quarter Ended December 31, 2020 On Record Revenues Of $25.2 Million

By February 25, 2021June 30th, 2021No Comments

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TORONTO, Feb. 25, 2021  – Avante Corp Inc. (TSX.V: XX) (OTC: ALXXF)(“Avante” or the “Company”) is pleased to announce its results for the third quarter ended December 31, 2020 (all amounts in thousands of Canadian dollars, unless otherwise indicated).


Three Months Ended2Three Months Ended2Three Months Ended2
$ in thousands, unless otherwise noted31-Dec-1930-Sep-2031-Dec-20
Revenues $12,642
Gross profit1$2,818 $5,774$5,584
Gross profit margin1 22.3%24.5% 22.2%
Direct Operating Expenses 2 $3,075 $4,034 $3,880
EBITDA1($1,298)$1,191 $108
Adjusted EBITDA from Continuing Operations($377) $1,719 $1,633
Comprehensive income (loss) attributed to Avante shareholders($1,687) ($368)($1,493)
Cash Flow from Operations before Working Capital($1,163) $2,047 $1,236

“Our results today, especially during these uncertain times, are demonstrable evidence that our initial investments in people, processes and technology, coupled with our industry’s resiliency, are the foundation of our strategy” said Craig Campbell, CEO and Director of Avante. “Having transformed a small, regional company into a diversified, multi platform national business, we continue to deliver strong organic growth and improved sequential earnings.  Our teams at both Logixx Security and Avante Security are laser focused and expect these trends to continue by providing exceptional service, winning new customers, and growing our platforms through organic and acquisitive growth.”

The reported year-over-year growth of consolidated revenue of 99%, is not only due to timing of the acquisition of ASAP Secured Inc. during the prior year’s third quarter, as the Company delivered an impressive 42% estimated organic growth in pro-forma consolidated revenues since that acquisition.

Avante also continued to deliver strong and growing recurring monthly revenue (“RMR”) and contractual revenue streams, representing $17,213 of revenue from $15,400 in the prior quarter (or 11.8% sequential growth) versus $9,741 in the comparable period last year.

Recurring Monthly Revenue$ 1,917$2,055$ 2,094
$ 2,137$ 2,194
Contractual Revenue$ 7,824$12,586$ 12,102
$ 13,263$ 15,019
Total recurring/ contractual revenue$ 9,741$14,641$ 14,196$ 15,400$ 17,213

“We are pleased to post another record quarter in revenue during Q3, with sequential growth of 6.8%” said Steve Rotz, CFO. “We continue to hold the line on direct operating expenses notwithstanding the growth in revenues while gross margins returned to historical trends as Q3 absorbed seasonal costs. We are particularly pleased with our strong year-over-year improvement in quarterly Adjusted EBITDA combined with lower levels of senior debt over the last nine months.”



  • Generated record quarterly revenues from continuing operations of $25.2 million for the three-months ended December 31, 2020, representing sequential growth of 6.8% and 99.4% YoY growth.
  • Revenue1 by segment during the third quarter was as follows:
For the 3 Months Ended
December 31, 2020
For the 3 Months Ended
December 31, 2020
$ thousandsRevenue% of Total
Logixx Security$20,87682.8%
Avante Security$4,328 17.2%
Total$25,204 100.0%
  • Generated gross profit from continuing operations of $5.6 million during the three-months ended December 31, 2020.
  • Direct Operating Expenses from continuing operations improved to 15.4% of revenue during Q3 2021 from 24.3% in Q3 2020.
  • Generated Adjusted EBITDA during Q3 2021 of $1.6 million, or 6.5% of revenue, and a YoY improvement of $2.0 million.
  • Generated $1.24 million in cash flow from operations (before changes in working capital) during Q3 2021. For the nine months ended December 31, 2020, the Company has generated $3.50 million of cash flow from operations before changes in working capital.
  • The Company reduced senior funded debt by $0.4 million during the third quarter and by $1.4 million over the first nine months of this fiscal year.
  • IFRS reported net loss and EBITDA reflected a loss on the derivative component of the Convertible Debentures of $1.4 million during Q3. IFRS reported net loss during Q3 also reflected amortization of intangible assets of $0.9 million, which will decline significantly starting next fiscal year after the Logixx Security trade name assets are fully amortized by March 31, 2021.
  • Board and Named Executive Officers (“NEOs”) increased ownership by 3.9% since September 30, 2020 (12.5% since March 31, 2020) to 3,440,350 shares or 16.2% of total shares outstanding.

Conference Call

Avante will be hosting a conference call to discuss the above financial results on Friday, February 26, 2021, at 8:30 AM EST.

Dial in details are as follows:

Local: (+1) 416-764-8658          Toll Free: (+1) 888-886-7786                        Conference ID: 36447111

Playback details below, available until March 26, 2021:

Local: (+1) 416-764-8692          Toll Free: (+1) 877-674-7070                        Playback Pin: 447111#


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. (TSXV: XX) is a Toronto based provider of high-end security services. 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 and consider joining our investor email list.

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Forward Looking Statements

All statements in this press 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 often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “planned”, “expect”, “project”, “predict”, “potential”, “targeting”, “intends”, “believe”, “potential”, and similar expressions, or describes a “goal”, or a variation of such words and phrases or state that certain actions, events or results “may”, “should”, “could”, “would”, “might” or “will” be taken, occur or be achieved. This forward-looking information includes statements with respect to, among other things, the intention to create a platform capable of supporting a business with significantly greater scale, Avante’s strategic plan, Avante’s intentions to engage in mergers and acquisitions in the near term, Avante’s intentions to identify, acquire and integrate suitable targets for mergers and acquisitions, the ability to achieve operational efficiencies and provide a better overall customer experience, Avante’s run- rate, opportunities to grow Avante’s revenue and Adjusted EBITDA profile, investments in corporate infrastructure, Avante’s ability to execute and integrate larger acquisitions, and the expected trajectory of corporate costs as a percentage of revenue. 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 ability to identify, acquire and integrate suitable targets for mergers and acquisitions, the ability to control corporate costs, and the list of risk factors identified in Avante’s Management Discussion & Analysis (MD&A), Annual Information Form (AIF) 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.

Non-IFRS Financial Measures

This press release includes certain measures which have not been prepared in accordance with IFRS such as EBITDA, Adjusted EBITDA, Gross Profit and Direct Operating Expenses. These non-IFRS measures are not recognized under IFRS and, accordingly, users are cautioned that these measures should not be construed as alternatives to net income determined in accordance with IFRS. The non-IFRS measures presented are unlikely to be comparable to similar measures presented by other issuers.

References to EBITDA are to net income before interest, taxes, depreciation and amortization. References to Adjusted EBITDA are to net income before interest, taxes, depreciation, amortization of intangibles & capitalized commissions, share-based payments, acquisition, integration and / or reorganization costs, deferred financing costs, loss (gain) in fair value of derivative liability, expensing of CWL fair value adjustment per IFRS, and CWL’s discontinued operations. References to Direct Operating Expenses are net of interest expense, accretion interest expense, depreciation, amortization and share based payments. EBITDA, Adjusted EBITDA, Gross Profit and Direct Operating Expenses are not earnings measures recognized by International Financial Reporting Standards (“IFRS”) and do not have a standardized meaning prescribed by IFRS. Management believes that Adjusted EBITDA is an appropriate measure in evaluating Avante’s performance. Readers are cautioned that neither EBITDA nor Adjusted EBITDA should be construed as an alternative to net income (as determined under IFRS), as an indicator of financial performance or to cash flow from operating activities (as determined under IFRS) or as a measure of liquidity and cash flow. Avante’s method of calculating Adjusted EBITDA may differ from methods used by other issuers and, accordingly, Avante’s Adjusted EBITDA may not be comparable to similar measures used by other issuers.

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.


In March 2020, the World Health Organization declared, the outbreak of the novel strain of coronavirus, specifically identified as “COVID-19”, a pandemic. This has resulted in governments worldwide enacting emergency measures to limit the spread of the virus, including closure of non-essential businesses. As of the date of this press release, the majority of the Company’s operations are considered essential in all provinces in which the Company operates. As such, to date the Company has been able to continue operating with no material impact to operations.
To date, there have been no material revisions to the nature and amount of estimates and judgments made in respect of the Company’s financial statements of prior periods. However, the effects of COVID-19 have required significant judgements and estimates to be made in the preparation of the Company’s financial statements.

Additionally, the effects of COVID-19 may require revisions to estimates of expected credit losses attributed to accounts receivable arising from sales to customers on credit terms, including the incorporation of forward-looking information to supplement historical credit loss rates as well as other estimates and judgement used in the preparation of the Company’s financial statements. Due to rapid developments and uncertainty surrounding COVID-19, it is not possible to predict the impact that COVID-19 will have on the Company’s operations or financial results, its suppliers, and its customers. Additionally, it is possible the Company’s operations and consolidated financial results will change in the near term as a result of COVID-19.

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1 Adjusted EBITDA, EBITDA, Gross Profit, Gross Profit Margin and Direct Operating Expenses are non-IFRS measures. See Description of Non-IFRS Measures.

2 Adjusted for discontinued operations.

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