XX Avante Corp

Trading symbols: TSXV – XX, OTC - ALXXF

TORONTO, Nov. 6, 2014 /CNW/ - Avante Logixx Inc., ("Avante" the "Company" or the "Group") through its wholly owned subsidiaries, Avante Security Inc. ("ASI") and INTO Electronics Inc. ("INTO"), 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.  

Results for the Six Month Period Ended September 30, 2014

Co-CEOs George Rossolatos and Emmanuel Mounouchos announced Avante Logixx Inc.'s results for the quarter ended September 30, 2014 ("Q2-15"). During the quarter, the Group generated revenues of $2,213,782, an increase of 3.2% over the same quarter of the prior fiscal year. This was attributable to growth in recurring revenues, and to the acquisition of INTO Electronics on August 22, 2014. Overall gross margin of $844,383 or 38.1% was in line with $817,370 or 38.1% in Q2-14. The Group registered an Adjusted EBITDA of $257,976.

Overall revenues for the six month period ended September 30, 2014 was $4,240,042, which were 5.3% lower than the $4,478,854 for the same period of prior fiscal year. This decrease was attributable due to lower revenues from non-recurring security services, caused by softness in the requirements for International Security Travel Advisory Services ("ISTAS"). Other security services like ISTAS are not recurring in nature and depend on the activities of our clients during the period. As previously disclosed, the ISTAS revenue for the previous six month period ended September 30, 2013 was particularly high and not expected to recur as one of our clients had two global product launches that required significant travel for its mid and senior level management. "While the volume of non-recurring revenue for the six month period is lower than last year, it is a line of business that fluctuates by definition as evidenced by ISTAS revenue in October 2014 which has exceeded the ISTAS revenue for the entire quarter ended September 30, 2014. We are confident of continued organic growth in recurring revenues and improving non-recurring revenue results in the third quarter.

The acquisition of INTO is already making a significant positive contribution to activity levels and cross-selling opportunities. The full effect of the synergies will be seen over the coming quarters. The Group has a significant order backlog for security systems installations, both in high-end residential and condo / commercial real estate sectors. We expect to see increased revenue run rates from installations as well as recurring revenue for the remainder of the fiscal year," said Co-CEO George Rossolatos.

After expensing acquisition costs relating to INTO ($84,427), the planned incremental spend on sales promotion and advertising activities and the softness with respect to non-recurring security services, net income before tax for Q2-15 was $157,740 as compared to $308,511 for Q2-14.

Net income for the six month period was $365,795 as compared to $738,702 for the same six month period last year. The Company spent approximately $130,000 of incremental planned sales promotion and advertisement expense for the six months ended September 30, 2014 as compared to the same period last year. The full impact of this initiative on revenues is expected to be seen over the coming quarters.

 "The integration of INTO Electronics into the (Avante Logixx) Group is progressing well. Management is focusing on levering the combined expertise of the sales and technical resources of both subsidiaries, while consolidating the back-office functions. Integration of the systems will add significantly to efficiencies. We expect that the benefits of these efforts will be realized over the coming quarters," said Co-CEO Emmanuel Mounouchos.

The Company's customer base for the recurring revenue offerings continues to grow significantly.  The Group plans to continue to make investments in infrastructure and sales and continue the advertising campaign through radio and other media in order to enhance organic growth.

Management is optimistic about the Company's prospects for the rest of fiscal 2015. The Company's balance sheet is very strong with over $4,600,000 of cash on hand which will facilitate the Company's pursuit of other acquisition opportunities.  The Company is currently assessing several promising acquisition opportunities that are strategic and accretive, which if completed, would further improve market share and profitability.

As announced on November 4, 2014, Avante will be hosting a conference call tomorrow morning (Friday, November 7, 2014) to discuss the aforementioned quarterly results at 8:30am EST.

Dial in details are as follows: 

Local 416-764-8658        Toll Free 888-886-7786               Conference ID: 12721745

Playback details below, available until November 7, 2014:

Local 416-764-8692        Toll Free 877-674-7070

Playback Pin: 721745#

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 INTO Electronics Inc., (www.into-electronics.com ) together provide best in class security response and other security services for residential and commercial and high-rise condominium 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.  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.

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.

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¹ Revenues – Recurring Monitoring and Response includes Alarm Response along with Digital, Wireless and Video Monitoring services
² Adjusted EBITDA = Net income + Income tax + Depreciation / amortization + Shared based payments expense + Acquisition costs of $84,427

SOURCE Avante Logixx Inc.