Science & Technology
Science and Technology
Science and Technology
Sat, November 10, 2012
Fri, November 9, 2012 Avante Logixx Inc. Announces Q2 Revenue Up 12% and Gross Profit Up 25%
November 09, 2012 08:30 ET
Avante Logixx Inc. Announces Q2 Revenue Up 12% and Gross Profit Up 25%
TORONTO, ONTARIO--(Marketwire - Nov. 9, 2012) - Avante Logixx Inc., (TSX VENTURE:XX) ("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 and secure transport through the use of advanced technology and a focus on client service. The Company is pleased to announce its results for the quarter ended September 30, 2012:
| Quarter ended | Six month period ended | |||||||||||
| Sep 30, 2012 | Sep 30, 2011 | Variance | Sep 30, 2012 | Sep 30, 2011 | Variance | |||||||
| Total revenues | 1,465,324 | 1,308,853 | 12.0 | % | 2,956,242 | 2,631,614 | 12.3 | % | ||||
| Revenues - Recurring Monitoring and Response(1) | 601,468 | 575,844 | 4.4 | % | 1,190,716 | 1,143,989 | 4.1 | % | ||||
| Revenues from other security services and transport | 863,857 | 733,009 | 17.9 | % | 1,765,526 | 1,487,625 | 18.7 | % | ||||
| Total gross profit | 487,911 | 332,126 | 46.9 | % | 933,582 | 689,671 | 35.4 | % | ||||
| Adjusted EBITDA(2) | 33,236 | (163,852 | ) | 24,154 | (354,783 | ) | ||||||
| Net income (loss) before discontinued operations | 15,280 | (217,119 | ) | (9,860 | ) | (447,862 | ) | |||||
| Net income (loss) for the period | 15,280 | (217,947 | ) | (9,860 | ) | (450,842 | ) | |||||
| Basic and diluted income (loss) per share | 0.000 | (0.004 | ) | 0.000 | (0.008 | ) | ||||||
| Total common shares outstanding | 55,908,843 | 55,908,843 | 55,908,843 | 55,908,843 | ||||||||
| Total assets | 1,714,221 | 1,810,331 | 1,714,221 | 1,810,331 | ||||||||
| Total liabilities (excluding deferred revenue) | 596,238 | 622,620 | 596,238 | 622,620 | ||||||||
| Deferred revenue | 1,339,986 | 1,283,697 | 1,339,986 | 1,283,697 | ||||||||
| Total liabilities | 1,936,224 | 1,906,317 | 1,936,224 | 1,906,317 | ||||||||
| Bank and other debt | -nil- | -nil- | -nil- | -nil- | ||||||||
| Shareholders' equity | (222,003 | ) | (95,986 | ) | (222,003 | ) | (95,986 | ) | ||||
| (1) Revenues- Recurring Monitoring and Response includes Alarm Response along with Digital, Analog and Video Monitoring services |
| (2) Adjusted EBITDA= Net income (loss) + Income tax + Depreciation/amortization + Shared based payments expense |
Co-CEOs Emmanuel Mounouchos and George Rossolatos announced that the Avante Logixx Inc.'s results continued to show marked improvement. This is reflected by significant increases in revenues and gross profit, as well as a return to profitability for the quarter. Revenues for the quarter ended September 30, 2012 amounted to $1.47 million as compared to $1.31 million for the same quarter in the previous fiscal year, a net growth of 12.0%, while revenues for the six month period registered a 12.3% increase to $2.96 million as compared to the same period last year.
The Company has been focused on a return to profitability for the last 4 quarters through its renewed focus on the security market, while continuing to target cost and process efficiencies. The first two quarters indicate an annualized growth rate of 8% to Avante's rapid alarm response customer base, while it continues to try to grow other security services to corporate customers. Gross profit grew by 46.9% for the quarter and 35.4% for the six month period, while Adjusted EBITDA for the quarter and the six month period improved to a positive from a significantly negative for the quarter and six month period ended September 2011 respectively. The Company registered a profit of $15,280 for the quarter as compared to a loss of $217,947 in the same quarter last year. Net loss for the six month period was $9,860 as compared to $450,842 for the same period last year.
The company has no debt and effective working capital management has ensured that the Company has not had to utilize its operating line of credit in over 21 months. Management believes that the current trend points towards a clear path to sustained profitability, which would then facilitate the Company to expand further via reinvestment of such profits.
Forward looking information: The information set forth in the Company's MD&A and this press release to readers may contain statements concerning Avante's future results, future performance, intentions, objectives, plans and expectations that are, or may be deemed to be, forward-looking statements or information within the meaning of securities laws. In some cases, forward-looking information can be identified by the use of terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts. Forward-looking statements are not guarantees of future performance.
These forward-looking statements are based on current expectations that involve numerous risks and uncertainties, including, but not limited to, those identified in the Risks Factors section of the Filing Statement the Company filed with regulatory authorities on February 28, 2008. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond Avante's control. Although Avante believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate. These factors should be considered carefully, and readers should not place undue reliance on forward-looking statements. Avante has no intention and undertakes no obligation to update or revise any forward-looking statements, whether written or oral that may be made by or on the Company's behalf.
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, and video analytics. The company continuously develops innovative products and applications within its core competencies. Please visit [ www.avantelogixx.com ].
