Avante Logixx Inc.

Avante Logixx Inc.

July 10, 2015 20:23 ET

Avante Logixx Inc. Announces Results for the Fiscal Year Ended March 31, 2015

TORONTO, ONTARIO--(Marketwired - July 10, 2015) - Avante Logixx Inc., ("Avante" or the "Company") (TSX VENTURE:XX)(OTCBB:ALXXF) through its wholly owned subsidiaries, Avante Security Inc. ("ASI"), INTO Electronics Inc. ("INTO"), and LVS Inc. ("LVS") which was acquired subsequent to year-end, 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 year ended March 31, 2015:

Results for the Year Ended March 31, 2015

Year ended
Mar 31, 2015 Mar 31, 2014 Variance (%)
Total revenues 10,026,343 8,938,669 12.2 %
Revenues - Recurring Monitoring and Response1 4,108,521 3,168,228 29.7 %
Revenues from other security services and transport 5,917,822 5,770,441 2.6 %
Total gross profit 3,880,221 3,577,636 8.5 %
Adjusted EBITDA2 1,218,725 1,483,864 (17.9 %)
Net income before income tax 813,847 1,392,463 (41.6 %)
Deferred income tax (expense) recovery (305,797 ) 1,386,990
Net income for the period 508,050 2,779,453 (81.7 %)
Basic income per share 0.007 0.049
Diluted income per share 0.007 0.048
Total common shares outstanding 75,654,156 71,638,843
Total common shares outstanding (diluted) 75,804,752 58,456,713
Total assets 12,796,910 10,196,177
Total liabilities 3,738,580 2,685,255
Total liabilities (excl. def. revenue and bank borrowings) 1,557,809 1,100,002
Deferred revenue 1,837,390 1,585,253
Bank line of credit, term and auto loans 343,381 -
Shareholders' equity 9,058,330 7,510,922
1 Recurring Monitoring and Response - includes Alarm Response, Digital and Wireless Monitoring and Intelligent Perimeter Protection
2 Adjusted EBITDA - Net income + Income Tax + Depreciation / Amortization + Share Based Payments + Acquisition Costs

Co-CEOs George Rossolatos and Emmanuel Mounouchos announced Avante Logixx Inc.'s results for the year ended March 31, 2015 ("FY15"). During the year, the Company generated revenues of $10,026,343, an increase of 12.2% over the year ended March 31, 2014. Recurring revenues grew by approximately 30%, while non-recurring revenues grew by about 3% as compared to last year. Within recurring revenues, rapid response revenues grew by 12.5% while monitoring revenues (including video analytics) grew by 70%. In addition to organic growth, the acquisition of INTO also helped in the monitoring revenues' growth. The number of clients who subscribe for rapid alarm response increased by 13%. Revenues from new installations grew by 28%, primarily due to the inclusion of revenues from INTO. The Company has a significant pipeline of commercial and installation jobs, which could result in a favourable situation in the fiscal year 2016.

Overall gross profit of $3,880,221 or 39% was 8.5% higher than the $858,464 or 40.0% in the fiscal year ended March 31, 2014. This was due to change in the revenue mix, with revenues from certain high margin services like International Security Travel Advisory Services ("ISTAS") decreasing as compared to the prior fiscal year.

Adjusted EBITDA for the year amounted to $1,218,725, or 12.2%, as compared to $1,483,864 or 16.6% for the prior fiscal year. This was due to: a) decrease in gross margin as a percentage of sales from 40.0% last year to 38.7% in FY15; b) planned increase in marketing and advertising expenditure of approximately $200,000; and c) one-time costs incurred in connection with the INTO and LVS acquisitions of approximately $153,000.

Net income before tax for the fiscal year amounted to $508,050, as compared to $2,779,453 for the prior fiscal year. In addition to the reasons expressed above in respect of Adjusted EBITDA, net income decreased primarily due to: a) income tax expense for FY15 of approximately $305,000 as compared to an income tax recovery of $1,387,000 in the prior fiscal year; and b) increase in depreciation of approximately $38,000 and amortization of $101,000 on intangible assets.

As announced following disclosure of the Company's previous quarter's results, cross-selling opportunities between Avante and INTO are gathering momentum. The INTO acquisition will be accretive in the first year of ownership, with synergies expected to materialize over the next year. Order backlog for security systems installations is growing, both in high-end residential and condo / commercial real estate sectors. "With the acquisition of LVS Inc. on April 1, 2015, there will be more opportunities for growth and integration as we continue to pursue our acquisition strategy," said Co-CEO George Rossolatos.

"Management has already integrated certain functions and processes of Avante and INTO. Salespeople and technicians are already cooperating and helping each other out in cross-selling as well as in executing sales", said Co-CEO Emmanuel Mounouchos.

Management is confident that growth in recurring and non-recurring revenues will continue this coming year, as will the identification of other opportunities for the acquisition program.

The Company's balance sheet is strong with over $3,000,000 of cash on hand after the LVS acquisition, which will facilitate the Company's pursuit of other acquisition opportunities. The Company is currently assessing several attractive acquisition opportunities, each of which the Company believes could be strategic and accretive to the extent acquired.

As announced on July 9, 2015, Avante will be hosting a conference call on Monday, July 13, 2015 to discuss the aforementioned quarterly results at 8:30am EST.

Dial in details are as follows:

Local Toronto 416-764-8658 Toll Free North America 1-888-886-7786

Conference ID: 94306797

Playback details below, available until July 24, 2015:

Local Toronto 416-764-8692 Toll Free North America 1-877-674-7070

Playback Pin: 306797 #

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 Security Travel Advisory Services 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 www.avantesecurity.com and consider joining our investor email list. Avante recently conducted a test comparing its rapid alarm response service with that of other alarm companies. For the result of this test please see www.6minuteresponse.com.


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.

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