Not for distribution to U.S. news wire services or for dissemination in the United States

TORONTO, August 25, 2021  – Avante Corp Inc. (TSX.V: XX) (OTC: ALXXF)(“Avante” or the “Company”) is pleased to announce financial results for its first fiscal quarter ended June 30, 2021 (all amounts in thousands of Canadian dollars, unless otherwise indicated).

The Company is also announcing that its Board of Directors (“the Board”) will consider and evaluate various strategic alternatives available to the Company (the “Strategic Review”).

Results for the Three-Month Period Ended June 30, 2021

Avante’s Fiscal Year End is March 31. Three Months Ended
Expressed in C$ thousands, unless otherwise noted 30-Jun-20 31-Mar-21 30-Jun-21
Revenues  $18,204  $24,706  $24,120
Gross profit (1)  $4,123  $5,353  $5,894
Gross profit margin (1)  22.6%  21.7%  24.4%
Direct Operating Expenses (1)  $3,468  $3,538  $3,841
EBITDA (1)  $212  $1,660  $1,799
Adjusted EBITDA (1)  $637  $2,055  $2,008
Comprehensive income (loss) attributed to Avante shareholders ($1,256)  $165  $277
Basic and fully diluted income per share ($0.059) $0.010  $0.013
Basic and fully diluted Adjusted EBITDA per share (1)  $0.030  $0.097  $0.095
Cash Flow from Operations before Working Capital  $178  $1,779  $1,370

“Building on the success of fiscal 2021 and our strategy to acquire, build and generate cash, we are pleased with the results of our first quarter with strong revenue and Adjusted EBITDA growth versus the comparable period of last year” said Craig Campbell, CEO & Director of Avante. “I am very proud of our team for their continued dedication to our clients. During the first quarter, we grew revenues and expanded gross margins versus the prior year. This result is due to a mix of both organic growth in our contractual and recurring revenues with additional positive benefits of incremental Covid-19 related work. We remain focused on winning new customers within our residential and enterprise business segments and improving margins through intelligent cost containment.”

The Company reported year-over-year revenue growth of 32.5%. Adjusted EBITDA grew from $0.64 million in Q1 F21 to positive $2.0 million during Q1 F22 or 215.2% YoY. Avante also continued to deliver strong and growing recurring monthly revenue (“RMR”) and contractual revenue streams, representing $16.6 million of revenue during the first quarter of this year from $14.2 million in the prior year’s first quarter, representing growth of 17.0%.

Q1 F21 Q2 F21 Q3 F21 Q4 F21 Q1 F22
Recurring Monthly Revenue $ 2,094 $ 2,137 $ 2,194 $ 2,380 $ 2,435
Contractual Revenue $ 12,102 $ 13,263 $ 15,019 $ 14,643 $ 14,171
Total recurring/ contractual revenue $ 14,196 $ 15,400 $ 17,213 $ 17,023 $ 16,606
% of total revenues 77.0% 65.3% 68.3% 68.9% 68.9%

“Avante Corp had a solid first quarter, with positive earnings and cash flow trends” said Steve Rotz, CFO of Avante. “We have a strong balance sheet, significant liquidity and committed credit facilities to fund organic and strategic growth. The ongoing COVID-19 pandemic, including its new variants, a difficult labour environment and uncertainty of the transition to a post-COVID business environment, creates a challenging operating environment for our Company. We are aware of, and are monitoring, these associated risks. The team has done a tremendous job and will continue to work diligently to serve and exceed customer satisfaction, as well as protecting revenues and margins during these uncertain times.”


  • Revenues of $24.1 million for the quarter ended June 30, 2021, which represented 32.5% YoY growth.
  • Revenue3 by segment during the first quarter of Fiscal 2022 was as follows:
For the Quarter Ended 30-Jun-21
$ in thousands Revenue(2) % of Total
Logixx Security  $20,160  83.6%
Avante Security  $3,960  16.4%
Total  $24,120   100.0%
  • Gross profit of $5.9 million for the quarter ended June 30, 2021, which represented 42.9% YoY growth.
  • Direct Operating Expenses from continuing operations improved to 15.9% of revenue during Q1 F22 from 19.1% in Q1 F21.
  • Adjusted EBITDA during Q1 F22 of $2.0 million, or 8.3% of revenue, and a YoY improvement of $1.4 million.
  • Generated Adjusted EBITDA per share of $0.095 in Q1 F22 and $0.35 for the trailing twelve-month period.
  • Generated $1.37 million in cash flow from operations (before changes in working capital) during Q1 F22.
  • IFRS reported net profit and EBITDA reflected a gain on the derivative component of the Convertible Debentures of $0.175 million during the Q1 Fiscal 2022. This gain is removed in the calculation of the quarter’s Adjusted EBITDA.
  • IFRS reported Net Income of $0.28 million or $0.013 per share.
  • On June 30, 2021, the Company entered into a credit agreement with The Bank of Nova Scotia replacing its credit facilities with another bank. The new credit agreement currently provides an $8.0 million revolving credit facility, a $6.0 million non-revolving term loan, and a $3.0 million delayed-draw non-revolving term loan, each with a maturity date ending May 19, 2024.

Strategic Review

The Company is also announcing that its Board has resolved to consider and evaluate various strategic alternatives available to the Company.
The Board will oversee the Strategic Review process and has engaged Canaccord Genuity Corp. as a financial advisor and Norton Rose Fulbright Canada LLP as legal counsel. Although the Board has not initiated the Strategic Review in response to any specific proposal, the Company, from time to time, receives inbound unsolicited inquiries and coupled with recent industry developments, the Board is initiating the Strategic Review process so it may consider all of the alternatives available to the Company in the pursuit of maximizing shareholder value. The Strategic Review will explore, review and evaluate a broad range of alternatives available to the Company, with a focus on unlocking shareholder value, which could include but are not limited to further acquisitions, a sale of one or more divisions, a business combination, a merger or reverse merger with another party or parties, introduction of a new significant strategic shareholder and other alternatives for potentially enhancing shareholder value. The Strategic Review will also evaluate the Company continuing as currently operating under its articulated organic and strategic plans as a public company.


Sam Duboc, Chair of the Board of the Company, stated: “Our Board has determined that it is prudent at this time to undertake the Strategic Review to ensure that all alternatives available to the Company are being evaluated to maximize value for our shareholders. As the Board conducts its review, Avante’s management team remains focused on executing our current strategy and continuing day-to-day operations in the ordinary course.”

The Company has not made any decisions related to strategic alternatives at this time, and there can be no assurance that the Strategic Review will result in any transaction or change in strategy and, if a transaction or change in strategy is undertaken, its term or timing. The Company and the Board have not established a definitive timeline for completion of the Strategic Review. The Company does not intend to comment further on the Strategic Review unless and until the Board has approved a specific course of action or the Company has determined that further disclosure is appropriate or required.

Conference Call
Avante will be hosting a conference call to discuss the above financial results on Thursday August 26, 2021, at 8:30 AM EDT.

Dial in details are as follows:

Local: (+1) 416-764-8658          Toll Free: (+1) 888-886-7786                        Conference ID: 75645725

Playback details below, available until September 26, 2021:

Local: (+1) 416-764-8692          Toll Free: (+1) 877-674-7070                        Playback Pin: 645725#

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.

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, the expected trajectory of corporate costs as a percentage of revenue and the unwinding of Covid-19 related revenue benefits and the normalization of pre-pandemic customer revenues. This forward-looking information also includes statements with respect to, among other things, information or statements about Avante’s strategy, future operations, its review of strategic alternatives, any transactions arising from the Strategic Review and statements regarding Avante’s work with a strategic advisor. 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, the effects of the ongoing Covid-19 pandemic 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 and Adjusted EBITDA. 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 less non-controlling interest’s share. Neither EBITDA nor Adjusted EBITDA is an earnings measure 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.

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

2 Net of intercompany eliminations