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TORONTO, July 29, 2019 (GLOBE NEWSWIRE) -- Avante Logixx Inc. (XX.V) (ALXXF) (“Avante” or the “Company”) is pleased to announce its results for the year ended March 31, 2019 (all amounts in Canadian dollars, unless otherwise indicated).
RESULTS FOR THE THREE-MONTH PERIOD & YEAR ENDED MARCH 31, 2019
|Year ended March 31,||Quarter ended March 31,|
|$ in thousands, unless otherwise noted||2019 ||2018 ||2017 ||2019 ||2018 |
|Revenues||32,081 ||23,337 ||20,898 ||11,804 ||6,372 |
|Gross profit 1||9,575 ||8,287 ||6,825 ||2,957 ||2,243 |
|Gross profit margin 1||29.8%||35.5%||32.7%||25.0%||35.2%|
|EBITDA 1||(1,804)||1,567 ||1,025 ||(1,174)||447 |
|Adjusted EBITDA 1||(220)||2,679 ||2,145 ||(385)||762 |
|Net income (loss) attributable to Avante shareholders||(2,229)||176 ||316 ||(549)||(344)|
|Comprehensive income (loss) attributed to Avante shareholders||(2,642)||280 ||247 ||(962)||(241)|
|Basic and fully diluted income per share||$(0.111)||$0.011 ||$0.004 |
|Cash and cash equivalents||2,176 ||4,078 ||2,331 |
|Total assets||34,174 ||21,075 ||19,428 |
|Total debt||3,828 ||766 ||425 |
“After being at the helm of Avante for a full fiscal year, I am very pleased with the operating results and our continued execution of our strategy of building a national, technology enabled security solutions provider through organic and acquisitive growth,” said Craig Campbell, CEO and Director of Avante. “Over the last fiscal year, the team has been hard at work building the foundation for future growth. During the year, Avante made significant investments in people and systems to support growth. Specifically, finance, corporate development, marketing, and human resource functions were added to support growth over the year and years to come.”
“We have been focused on improving operating results and organic growth, while exploring our acquisition opportunities. Avante is well positioned for growth and earnings improvements over the coming quarters and years. Significant contract wins, focus on operational efficiencies, and a robust M&A pipeline positions Avante for strong organic growth in fiscal 2020 and beyond. We are excited to bring Intelligarde International and Veridin Systems together as 'Logixx Security Inc.' and the subsequent combination with Veridin to create a leading enterprise level security solution provider. We are taking full advantage of a gap in the marketplace regarding a full-service enterprise level security solution provider, and that we can provide additional value to our enterprise level clients by filling this gap. We have made investments in personnel and systems to support our growth, with an eye to balancing top-line growth with sustained EBITDA expansion over the long term.”
“Our core business is strong and our acquisition pipeline remains healthy and robust,” said Craig Campbell. “As we continue to acquire companies, we will see meaningful growth in revenue and most importantly Adjusted EBITDA as our foundation is set, and do not see a need to significantly invest further in our corporate infrastructure. We remain focused on identifying and completing highly accretive acquisitions that benefit from revenue and cost synergies for Avante and deliver against our goal of generating meaningful growth in consolidated Adjusted EBITDA, with a 2023 target of $30M. In the fourth quarter we can clearly see the positive impact from our transformative journey coming through, where good growth in revenue is the strongest evidence. I am confident that Avante, with its new management and strategy, is well positioned for both growth and earnings improvement ahead.”
FISCAL YEAR 2019 HIGHLIGHTS
- Generated record revenues of $32,081,212 for the year ended March 31, 2019 which represented 37.5% YoY growth, with current pro-forma run rate of $44.6M2.
- As a percentage of revenue, Avante’s Strategic Business Units (“SBUs”) contributed to revenue as follows:
|March 31, 2019||March 31, 2018|
|Monitoring & Managed Services||10.8%||13.7%|
|Security Devices & Hardware||20.5%||25.3%|
- Generated gross profit of $9,574,747 for the year ended March 31, 2019 which represented 15.5% YoY growth.
- Operating expenses (net of depreciation, amortization, and interest expenses) increased $4,867,702 from F18 to $10,800,921 in F19
- Generated Adjusted EBITDA of ($220,053), or (0.7%)
- Strong balance sheet with $2.2M of cash on hand, assets of $34.2M, and shareholders’ equity of $18.0M, with undrawn credit facilities of approximately $9.0M
- Completed four acquisitions and one strategic investment deploying ~$9.4M
1 Adjusted EBITDA, EBITDA. Gross Profit and Gross Profit Margin are non-IFRS measures. See Description of Non-IFRS Measures
2 Pro Forma revenues for Fiscal 2019 include revenues from April 1, 2018 to the date of Closing for the three companies acquired during 2019
- On July 9, 2019 announced an exclusive distribution agreement with 3SI Security Systems to offer 3SI’s advanced asset protection and recovery technology to residential clients looking to safeguard high value assets
- On July 4, 2019, announced the name change of Intelligarde International Inc. (“Intelligarde”) to Logixx Security Inc. (“Logixx”) with the intention of combining the operations of Intelligarde and Veridin Systems Canada Inc. (“Veridin”) to address a gap in the market where a “one-stop, cross functional, technology enabled security solutions provider” is needed by enterprise clients
Avante will be hosting a conference call to discuss the aforementioned results on Tuesday, July 30, 2019, at 8:30 AM EDT.
|Dial in details are as follows:|
|Local: (+1) 416-764-8658||Toll Free: (+1) 888-886-7786||Conference ID: 59745566|
|Playback details below, available until August 13, 2019: |
|Local: (+1) 416-764-8692||Toll Free: (+1) 877-674-7070||Playback Pin: 745566 #|
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 Logixx Inc.
Avante Logixx Inc. (XX.V) 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 www.avantelogixx.com and consider joining our investor email list.
Avante Logixx Inc.
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. 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, share-based payments, acquisition, integration and / or reorganization costs, 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.
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