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TORONTO, ONTARIO--(Marketwired - Feb 17, 2016) - Avante Logixx Inc., ("Avante" the "Company" or the "Group") (TSX VENTURE:XX)(OTC PINK:ALXXF) through its wholly owned subsidiaries, Avante Security Inc. ("ASI"), INTO Electronics Inc.("INTO") and LVS Inc. ("LVS"), 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 and electronic building management through the use of advanced technology and a focus on client service. The Company is pleased to announce its results for the quarter and nine month period ended December 31, 2015:
Results for the Nine Month Period Ended December 31, 2015
|Quarter ended||Nine month period ended|
|Dec 31, 2015||Dec 31, 2014||Variance||Dec 31, 2015||Dec 31, 2014||Variance|
|Revenues - Recurring Monitoring and Response(1)||1,497,097||972,127||54.0||%||4,412,898||2,951,984||49.5||%|
|Revenues from other security services and transport||2,402,279||1,974,139||21.7||%||6,336,305||4,234,324||49.6||%|
|Total gross profit||1,350,594||1,159,724||16.5||%||4,010,731||2,793,584||43.6||%|
|Income from operations||267,458||262,200||2.0||%||950,261||712,422||33.4||%|
|Net income (loss) for the period||(304,821||)||225,722||179,966||481,518||-62.6||%|
|Basic income (loss) per share||(0.004||)||0.003||0.002||0.006|
|Diluted income (loss) per share||(0.004||)||0.003||0.002||0.006|
|Total common shares outstanding||81,382,052||74,846,739||81,382,052||74,846,739|
|Total common shares outstanding (diluted)||84,104,752||77,036,706||83,337,948||75,362,503|
|Total liabilities (excl. deferred revenue and bank debt)||2,058,600||1,089,011||2,058,600||1,089,011|
|Bank and other debt||94,616||119,335||94,616||119,335|
CEO George Rossolatos announced Avante Logixx Inc.'s results for the quarter and nine month ended December 31, 2015 ("Q3-16"). During the quarter, the Group generated revenues of $3,899,376, an increase of 32.3% over the quarter ended December 31, 2014. This increase was a result of a 16.2% increase in ASI revenues apart from the inclusion of INTO and LVS in the consolidated results. Recurring revenues grew by 54%, a result of a 12% growth in sale of alarm response packages, and 144% growth in monitoring revenues which was caused by a 11% organic growth in ASI while the balance was attributable to the acquisition of INTO and LVS. Last year's comparatives did not include LVS, and only four and a half months of results for INTO. Overall gross margin for the Q3-16 was $1,350,594 or 34.6% as compared to $1,159,724 or 39.3% in Q3-15. The Company registered Adjusted EBITDA of $431,363 in Q3-16 as compared to $365,244 in Q3-15.
Overall revenues for the nine month period ended December 31, 2015 was $10,749,203, which was 49.6% higher than the $7,186,308 for the nine month period ended December 31, 2014. This increase was attributable mainly to the inclusion of the new subsidiaries, INTO and LVS. ASI's recurring revenues grew, on account of a 13.2% growth alarm response and 11.2% growth in monitoring. Non-recurring revenues grew mainly due to the inclusion of INTO and LVS' operations. International travel advisory and security management continues to mature, with good prospects for the next quarter. Installation revenues from INTO and LVS showed consistent growth, and a significant pipeline of orders is building up, particularly in the commercial sector.
"We are pleased with the Company's progress this quarter. The integration of ASI and LVS is under way, and is expected to be completed by the end of March 2016. Once the integration of the brands, systems and personnel are completed, the Company will begin to realize operational synergies," said CEO George Rossolatos. As indicated in the last quarter, the Company also has a significant order backlog for security systems installations, both in high-end residential and condo / commercial real estate sectors, most of which will see significant levels of completion over the next 2 to 3 quarters.
Income from operations amounted to $267,458 for the quarter and $950,261 for the nine month period ended December 31, 2015. Net loss before tax for Q3-16 was $304,821 as compared to a profit of $225,722 for Q3-15. This was primarily due to incurrence of integration and acquisition costs amounting to $622,279 in the Q3-16.
Management is confident that organic growth levels can be sustained at current levels in the next 2 quarters, while the Company continues to actively seek out new acquisition opportunities.
The Company's balance sheet is strong with over $3,000,000 of cash on hand which will facilitate the Company's pursuit of other acquisition opportunities. The Company is currently assessing a few acquisition opportunities, one of which is in the due diligence stage, that if completed on terms acceptable to the Company will be strategic and accretive, and would further improve market share and profitability.
As announced on February 16, 2016, Avante will be hosting a conference call tomorrow morning (Thursday, February 18, 2016) to discuss the aforementioned quarterly results at 8:30am EST.
Dial in details are as follows:
Local: (+1) 416-764-8658 Toll Free: (+1) 888-886-7786 Conference ID: 23771614
Playback details below, available until March 4, 2016:
Local: (+1) 416-764-8692 Toll Free: (+1) 877-674-7070
Playback Pin: 771614#
About Avante Logixx ( www.avantelogixx.com )
Avante Logixx Inc. (TSX VENTURE:XX) is a Toronto based security and technology company. Its subsidiaries, Avante Security Inc. (www.avantesecurity.com) and recently acquired INTO Electronics Inc., (www.intoelectronics.com) and LVS Inc. (www.lvssecurity.com), together provide best in class security response and other security services for residential and commercial clients, and high-rise condominium applications, and are industry leaders in designing and installing complex security systems, access control, intelligent video analytics and smart home automation. Its International Travel Security offering helps corporations protect traveling employees working abroad in medium/high risk jurisdictions and has executed travel details in over 60 countries. The company continuously develops innovative products and applications within its core competencies. Please visit our websites at www.avantelogixx.com and consider joining our investor email list.
FORWARD LOOKING STATEMENTS
Certain of the statements and information in this press release constitute "forward-looking statements" or "forward-looking information" These statements include, but are not limited to, statements with respect to the entering into of agreements, the closing of transactions and the use of proceeds. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, the timing of transactions, the ability to fulfill certain conditions and obtain regulatory approvals, and the ability to raise funds and use the proceeds as anticipated.
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) Revenues - Recurring, Monitoring and Response includes Alarm Response along with Digital, Wireless and Video Monitoring services
(2) Adjusted EBITDA - Income from operations + depreciation and amortization + share based payments