Not for distribution to U.S. news wire services or for dissemination in the United States
TORONTO, Feb. 25, 2022 (GLOBE NEWSWIRE) -- Avante Logixx Inc. (TSX.V: XX) (OTC: ALXXF) (“Avante” or the “Company”) released financial results for its third fiscal quarter ended December 31, 2021 (all amounts in thousands of Canadian dollars, unless otherwise indicated).
In addition, the Company’s Board of Directors concluded the Strategic Review and, on February 9, 2022, announced that SSC Security Services Corp (TSXV: SECU; “SSC”) had agreed to acquire 100% of the Company’s common shares subject to shareholder and regulatory approval (see the “Subsequent Events” note below).
RESULTS FOR THE THREE-MONTH PERIOD ENDED DECEMBER 31, 2021
Avante’s Fiscal Year End is March 31. | Three Months Ended | ||
Expressed in C$ thousands, unless otherwise noted | 31-Dec-20 | 30-Sep-21 | 31-Dec-21 |
Revenues | $25,204 | $22,601 | $23,286 |
Gross profit (1) | $5,584 | $4,242 | $4,725 |
Gross profit margin (1) | 22.2% | 18.8% | 20.3% |
Direct Operating Expenses (1) | $3,880 | $3,668 | $3,788 |
EBITDA (1) | $108 | ($2,085) | $2,900 |
Adjusted EBITDA (1) | $1,633 | $627 | $968 |
Comprehensive income (loss) attributed to Avante shareholders | ($1,493) | ($2,926) | $1,611 |
Basic and fully diluted income per share | ($0.070) | ($0.138) | $0.076 |
Basic and fully diluted Adjusted EBITDA per share (1) | $0.077 | $0.030 | $0.046 |
Cash Flow from Operations before Working Capital | $1,236 | $623 | $401 |
The Company reported year-over-year revenue declines of 7.6% and Adjusted EBITDA declined from $1.6 million in Q3 F21 to $1.0 million during Q3 F22. However, Avante delivered growing recurring monthly revenue (“RMR”) and contractual revenue streams of $17.8 million during the third quarter of this year from $17.2 million in the prior year’s third quarter, representing year-over-year growth of 3.5%, and sequential growth versus Q2 of 2.8%.
Q3 F21 | Q4 F21 | Q1 F22 | Q2 F22 | Q3 F22 | |||||||
Recurring Monthly Revenue | $2,194 | $2,380 | $2,435 | $2,437 | $2,577 | ||||||
Contractual Revenue | $15,019 | $14,643 | $14,171 | $14,888 | $15,235 | ||||||
Total recurring/ contractual revenue | $ 17,213 | $ 17,023 | $ 16,606 | $ 17,325 | $ 17,812 | ||||||
% of total revenues | 68.3% | 68.9% | 68.8% | 76.7% | 76.5% | ||||||
Q3 F22 HIGHLIGHTS
For the Quarter Ended | |||
31-Dec-21 | |||
$ in thousands | Revenue | % of Total | |
Logixx Security | $18,639 | 80.0% | |
Avante Security | $4,752 | 20.4% | |
Intercompany | ($105) | (0.4%) | |
Total | $ 23,286 | 100.0 % |
SUBSEQUENT EVENTS
Sale of Company
Conversion of Convertible Debentures
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. (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 www.avantelogixx.com and consider joining our investor email list.
Avante Logixx Inc.
Craig Campbell
CEO
(416) 923-6984
[email protected]
Forward-Looking Information
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.