Avante Logixx Inc. is pleased to announce its results for the three-month period ended September 30, 2020 (all amounts in thousands of Canadian dollars, unless otherwise indicated).
RESULTS FOR THE THREE-MONTH PERIOD ENDED SEPTEMBER 30, 2020
Three Months Ended(2) | |||||||||
$ in thousands, unless otherwise noted | 30-Sep-19 |
30-Jun-20 |
30-Sep-20 |
||||||
Revenues | $ | 10,222 | $ | 18,204 | $ | 23,602 | |||
Gross profit (1) | $ | 3,089 | $ | 4,123 | $ | 5,774 | |||
Gross profit margin (1) | 30.2 | % | 22.7 | % | 24.5 | % | |||
Total EBITDA(1) | $ | 540 | $ | 406 | $ | 1,693 | |||
Total Adjusted EBITDA(1) | $ | 724 | $ | 757 | $ | 2,221 | |||
Total Comprehensive income (loss) for the period | $ | (246 | ) | $ | (1,248 | ) | $ | (274 | ) |
Cash Flow from Operations before Working Capital | $ | 656 | $ | 172 | $ | 1,454 | |||
Cash Flow from Operating Activities | $ | (505 | ) | $ | (1,023 | ) | $ | 2,826 | |
“I am extremely proud of our results and most importantly our team for continuing to provide exceptional service, win new customers and grow our businesses in a meaningful way during these uncertain times,” said Craig Campbell, CEO and Director of Avante. “When I joined Avante in 2018, I set out a clear vision and path to transform the business from a small, regional company to a more diversified, multi platform business, with national scope that would grow with a strong mix of organic and acquisitive growth. Our investments in people, process and technology was absolutely necessary to build the foundation required to support our strategy. These investments combined with the hard work of an industry leading team has transformed the company in just two years. We are proud today to report Q2 results that are in a single quarter comparable to the full fiscal year I joined as demonstrable evidence of our focus on building a much larger and more profitable business that will lead to long term value capture for our shareholders.”
The Company also benefited from strong and growing recurring monthly revenue (“RMR”) and contractual revenue streams, representing 80.6% of Q2 revenue versus 67.2% during the comparable period last year.
“This quarter proved the resiliency of our industry and our business as we had a record quarter in revenue and EBITDA,” said Steve Rotz, CFO. “After completing the sale of City Wide on September 30 we now have even greater focus on our two core platforms and expect to see the quarter over quarter trend continue as we win new customers, broaden services with existing customers, further reduce costs, and leverage our fixed cost base. We may see momentum slow during Q3 from the Covid-19 shutdowns in parts of the country, but we believe in our strategy, our businesses, the security industry and our team’s ability to deliver on our goals over the longer term.”
(1) Adjusted EBITDA, EBITDA, Gross Profit and Gross Profit Margin are non-IFRS measures. See Description of Non-IFRS Measures
(2) Adjusted for discontinued operations.
SECOND QUARTER FISCAL 2021 HIGHLIGHTS
For the 3 Months Ended | ||||
September 30, 2020 | ||||
$ thousands | Revenue | % of Total | ||
Logixx Security | $ | 19,156 | 81.2 | % |
Avante Security | $ | 4,446 | 18.8 | % |
Total | $ | 23,602 | 100.0 | % |
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1 Net of intercompany eliminations
Subsequent Events
CONFERENCE CALL
Avante will be hosting a conference call to discuss the above financial results on Thursday November 26, 2020, at 8:30 AM EST.
Dial in details are as follows: | ||||
Local: (+1) 416-764-8658 | Toll Free: (+1) 888-886-7786 | Conference ID: 02661722 | ||
Playback details below, available until December 26, 2020: | ||||
Local: (+1) 416-764-8692 | Toll Free: (+1) 877-674-7070 | Playback Pin: 661722 # | ||
About Avante Logixx Inc.
Avante Logixx Inc. 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
craig@avantelogixx.com