Trading symbols: TSX – XX.V, OTC - ALXXF
TORONTO, July 21, 2014 /CNW/ - Avante Logixx Inc.,
("Avante" or the "Company") through its wholly owned subsidiary,
Avante Security Inc., provides best in class residential and
commercial security services including system design and
installation, rapid alarm response, alarm monitoring, video
analytics and secure transport through the use of advanced
technology and a focus on client service.
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Results for the
Quarter Ended June 30, 2014
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Quarter
ended
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June 30,
2014
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June 30,
2013
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Variance
(%)
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Total
revenues
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$2,026,260
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$2,333,256
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(13.2%)
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Revenues -
Recurring Monitoring and Response
1
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856,460
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762,080
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12.4%
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Revenues from other
security services and transport
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1,169,800
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1,571,176
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(25.5%)
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Total gross
profit
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789,477
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930,857
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(15.2%)
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Adjusted
EBITDA
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217,006
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439,898
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(50.7%)
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Net income (loss) for
the period
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208,055
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430,191
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(51.6%)
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Net income (loss) per
share - basic
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0.003
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0.008
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Net income (loss) per
share - diluted
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0.003
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0.007
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Total common shares
outstanding
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71,638,843
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55,908,843
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Total
assets
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10,191,028
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2,954,384
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Total
liabilities
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2,525,733
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2,342,259
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Total liabilities
(excluding deferred revenue)
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936,386
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854,101
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Deferred
revenue
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1,590,347
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1,488,158
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Bank and other
debt
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-nil-
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-nil-
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Shareholders'
equity
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7,664,295
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612,124
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Co-CEOs George Rossolatos and
Emmanuel Mounouchos announced Avante
Logixx Inc.'s results for the quarter ended June 30, 2014 ("Q1-15"). During the quarter,
Avante generated revenues of $2,026,260, with an overall gross margin of
$789,477 or 39.0%, and an Adjusted
EBITDA of $217,006. Overall revenues
decreased by approximately 13.2% for the quarter, due to a decrease
in revenues from non-recurring security services, primarily driven
by a softer quarter in international security travel advisory
services. As indicated in earlier periods, other security services
like International Security Travel Advisory services are not
recurring in nature and depend on the international activities of
our clients during the quarter. "While we are disappointed in
the volume of non-recurring revenue this quarter, we are pleased
with the organic growth in our key recurring revenue
categories. We will focus on building both positively in
future quarters," said co-CEO George
Rossolatos.
Net income for Q1-15 was $208,055,
as compared to $430,191 for Q1-14.
The decrease was attributable to a) the quarter being soft with
respect to non-recurring security services and transport; and b) a
planned increase in sales and marketing expense of $66,000. Adjusted EBITDA for the year was
$217,006 as compared to $430,191 for the quarter ended June 30, 2013. The Company will retain its
focus on growing all of its revenue streams, while targeting
strategic acquisitions that will enhance the Company's
offerings.
The Company's customer base for the recurring revenue offerings
continues to grow at greater than 10% annualized, as compared to
Q1-14. Cash flow from operations for the quarter was approximately
$130,000. Avante plans to continue to
make investments in infrastructure, sales and continue the radio
advertising campaign launched in this quarter.
Avante's prospects for the remainder of 2015 continue to be
positive. The Company continues to strengthen its balance sheet
which is free of debt, while pursuing opportunities to make
strategic acquisitions. This, management believes, would further
improve Avante's market share and result in increased
profitability, while delivering maximum value to its
shareholders.
Avante Logixx Inc. Signs Binding Share Purchase Agreement to
Acquire INTO-ELECTRONICS INC.
The Company is pleased to announce that it has signed a binding
share purchase agreement (the "Agreement") to purchase all
of the issued and outstanding shares of INTO-ELECTRONICS INC.
("INTO-ELECTRONICS") from its founder and President
Rodney Wechsler and a minority
shareholder. Completion of the transaction will be subject to
a number of conditions including TSX Venture approval and
satisfactory completion of certain remaining due diligence
items. The transaction is expected to close in mid to late
August 2014.
Founded in 1991 as a high end custom residential security and
automation services integrator, INTO-ELECTRONICS which is based in
Toronto, has developed a
specialized skillset in commercial and high rise security
integration, monitoring, and electronic building management, which
includes 24/7 access control management and operation of its own
24/7 support centre, in addition to its expertise in high end
residential security and generates over $2,500,000 in revenue annually of which
approximately one third is recurring. The transaction is
expected to be immediately accretive upon close. On closing, Mr.
Rodney Wechsler will continue in his
role as President of INTO-ELECTRONICS pursuant to an employment
agreement and continue to drive strategy and execution.
Rod Wechsler stated: "I am
proud of what we have created at INTO-ELECTRONICS and I'm very
excited to be joining the Avante Logixx fold. There are many
opportunities where both businesses can mutually benefit from being
under the same umbrella and I'm very excited to begin
INTO-ELECTRONICS' next stage of development with Avante," stated
Rod Wechsler.
"I have known Rod for many years to be a talented,
hardworking, ethical and driven individual. He will be a
great addition for Avante and I look forward to working with
him. We are extremely excited to join with Rod and the entire
INTO-ELECTRONICS team and we believe this will further the growth
strategy of both companies going forward " said Manny Mounouchos co-CEO of Avante Logixx
Inc.
George Rossolatos, co-CEO of
Avante Logixx Inc., added: "Avante raised capital in
March 2014 for the primary purpose of
executing strategic acquisitions in the security space. We
have been working to assess a number of transactions since then and
we hope this transaction is the first of a number of potential
acquisitions in our deal pipeline. We chose
INTO-ELECTRONICS as our first because of the company's brand, it's
commercial expertise, its proportion of recurring to non-recurring
revenue which is similar to that of Avante and most importantly for
the opportunity to work with someone of Rod Wechsler's caliber."
Pursuant to the Agreement, Avante has agreed to purchase all of
the issued and outstanding shares of INTO-ELECTRONICS in
consideration for cash and Avante shares. The terms of the
Agreement provide that: (i) on closing, the vendor shareholders
will receive a cash payment of $2,400,000, which payment would be subject to
certain adjustments including in respect of working capital for
which a holdback has been provided; (ii) on closing, the vendor
shareholders will receive 1,052,632 Avante common shares
(representing $400,000 of shares
based on today's 20 day volume-weighted average sale price); and
(iii) subject to certain contingencies and adjustments including in
respect of indemnity claims, on each of the first and second year
anniversaries of closing, the vendor shareholders will receive
$400,000 of Avante common shares
valued based on the preceding 20 day volume-weighted average sale
price per share from the date of issuance, subject to a collar of
$0.25 to $0.50 per share.
The proposed transaction is arm's length and no finder's fees
are payable or to be paid in connection with the
transaction.
Avante will be hosting a conference call tomorrow morning
(Tuesday, July 22, 2014) to discuss
the aforementioned quarterly results and the acquisition of
INTO-Electronics Inc. at 8:30am
EDT.
Dial in details are as
follows:
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Local
416-764-8646
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Toll
Free 888-396-8049
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Playback details
below, available until August 6, 2014:
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Local
416-764-8692
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Toll
Free 877-674-7070
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Playback Pin:
070942
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About Avante Logixx
Avante Logixx Inc. (TSX VENTURE: XX) is a Toronto based security and technology company.
Its primary operating division, Avante Security Inc.
(www.avantesecurity.com), provides best in class security response
and other security services for residential and commercial
applications as well as being an industry leader 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 newly updated websites at
www.avantelogixx.com and www.avantesecurity.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
SOURCE Avante Logixx Inc.