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Avante Corp Inc. Announces Record Adjusted Ebitda Of $6.0 Million (Or $0.285 Per Share) For The Year Ended March 31, 2021 On Revenues Of $91.7 Million

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TORONTO, Jul. 20, 2021  – Avante Corp Inc. (TSX.V: XX) (OTC: ALXXF)(“Avante” or the “Company”) is pleased to announce its results for the year ended March 31, 2021 (all amounts in Canadian dollars thousands, unless otherwise indicated).


$ in thousands, unless otherwise noted
Year ended 31-Mar-19 (2)
Year ended 31-Mar-20
Year ended 31-Mar-21
Three Months Ended 31-Mar-20
Three Months Ended 31-Dec-20
Three Months Ended 31-Mar-21
Gross profit(1)
Gross profit margin(1)
Operating expenses2
Adjusted EBITDA from Continuing Operations (1)
Comprehensive income (loss) attributed to Avante shareholders
Basic and fully diluted income per share
Basic and fully diluted Adjusted EBITDA per share (1)
Cash Flow from Operations before Working Capital

(1) Adjusted EBITDA, EBITDA, Gross Profit, Gross Profit Margin and Direct Operating Expenses are non-IFRS measures. See Description of Non-IFRS Measures.
(2) Not adjusted for discontinued operations

“Our fiscal 2021 was a pivotal year for Avante as we achieved scale, leveraging our initial investments in people, processes and technology to achieve record revenues and adjusted EBITDA” said Craig Campbell, CEO & Director of Avante. “During uncertain times caused by the global pandemic we were laser focused on organic growth (50.0% YoY), reducing our senior funded debt, and building out prospects for future quarters, which included entering into an expanded credit agreement with The Bank of Nova Scotia. I am very proud of our results, continued momentum and all of our team members for continuing to provide exceptional service to our clients, and growing our businesses organically during the last year.”

The Company reported year-over-year revenue growth of 84.0% and 45.1% on an annual and Q4 basis respectively. Adjusted EBITDA grew from negative $0.331 million in Fiscal 2020 to positive $6.044 million during fiscal 2021. Avante also continued to deliver strong and growing recurring monthly revenue (“RMR”) and contractual revenue streams, representing $17.0 million of revenue during the fourth quarter of this year from $14.6 million in the prior year’s fourth quarter, representing growth of 16.3%.

Recurring Monthly Revenue
$ 2,055
$ 2,094
$ 2,137
$ 2,194
$ 2,380
Contractual Revenue
$ 12,586
$ 12,102
$ 13,263
$ 15,019
$ 14,643
Total recurring/ contractual revenue
$ 14,641
$ 14,196
$ 15,400
$ 17,213
$ 17,023

“We continued our focus on organic revenue growth and improving internal processes to limit operating expenses.” said Steve Rotz, CFO. “Throughout fiscal 2021 we worked hard on improving cash collection cycles and overall liquidity, with reduced senior funded debt combined with a positive swing to profitability leading to much improved leverage metrics. After year end, we modernized our banking arrangements, with extended maturity dates, increased capacity, improved covenant flexibility and longer amortization requirements. We are now well positioned to focus on operations, organic growth and strategic initiatives.”



    • Generated record revenues of $91.7 million for the year ended March 31, 2021, which represented 84.0% YoY growth (50.0% YoY Pro-Forma organic growth).
    • Revenue1 by segment during the year and fourth quarter was as follows:
For the Year Ended
March 31, 2021
For the Year Ended
March 31, 2021
For the Quarter Ended
March 31, 2021
For the Quarter Ended
March 31, 2021

$ thousands
% of Total
% of Total
Logixx Security
Avante Security
  • Generated gross profit of $20.8 million for the year ended March 31, 2021, which represented 78.2% YoY growth.
  • Direct Operating Expenses from continuing operations improved to 16.3% of revenue during F2021 from 24.0% in F2020. It was 14.3% of revenue during Q4 2021.
  • Generated Adjusted EBITDA during F2021 of $6.0 million, or 6.6% of revenue, and a YoY improvement of $6.4 million. Adjusted EBITDA for Q4 2021 was $2.05 million, or 8.3% of revenue and a YoY improvement of $2.5 million. Q4 2021 benefitted from a gain in foreign exchange of $0.2 million versus a loss of $0.002 million for the full year.
  • Generated Adj. EBITDA per share of $0.285 in F2021 and $0.097 for Q4 F2021.
  • Generated $4.9 million in cash flow from operations (before changes in working capital) during F2021. For the three months ended March 31, 2021, the Company generated $1.8 million of cash flow from operations before changes in working capital.
  • The Company reduced senior funded debt by $2.4 million over the year and by $0.9 million sequentially during Q4.
  • IFRS reported net loss and EBITDA reflected a loss on the derivative component of the Convertible Debentures of $2.1 million during the year. IFRS reported net loss during the year also reflected amortization of intangible assets of $3.6 million, which expenses will decline significantly starting next fiscal year after Logixx Security’s trade name assets were fully amortized as of March 31, 2021.
  • Board and Named Executive Officers (“NEOs”) increased ownership by 14.8% since March 31, 2020 2.0% since December 31, 2020) to 3,510,350 shares or 16.6% of total shares outstanding.



  • On June 30, 2021, the Company entered into a credit agreement with The Bank of Nova Scotia replacing its credit facilities with another institution. The new facility provides an $8.0 million revolving credit facility, a $10.0 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.


Avante will be hosting a conference call to discuss the above financial results on Wednesday, July 21, 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: 00760379

Playback details below, available until August 21, 2021:
Local: (+1) 416-764-8692
Toll Free: (+1) 877-674-7070
Playback Pin: 760379#

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 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.

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