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TORONTO, Nov. 17, 2015  –Avante Logixx Inc., (“Avante” the “Company” or the “Group”) through its wholly owned subsidiaries, Avante Security Inc. (“ASI”), INTO Electronics Inc. (“INTO”) and LVS Inc. (“LVS”), 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. The Company is pleased to announce its results for the quarter and six month period ended September 30, 2015:

Results for the Six Month Period Ended September 30, 2015

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CEO George Rossolatos announced Avante Logixx Inc.’s results for the quarter ended September 30, 2015 (“Q2-16”). During the quarter, the Group generated revenues of $3,494,705, an increase of 57.9% over the quarter ended September 30, 2014. This was attributable to growth in recurring revenues, and to the inclusion of INTO in August 2014 and LVS in April 2015. Last year’s comparatives contained only ASI and 40 days results of INTO. Overall gross margin was $1,403,605 or 40.1% as compared to $844,383 or 38.1% in Q2-15. The increase in gross profit (%) was also affected by a SR&ED refund of approximately $248,000 in the current fiscal year with $133,000 of costs associated with this refund appearing in G&A expenses. The Company registered Adjusted EBITDA of $432,078 in Q2-16 as compared to $263,653 in Q2-15.

Overall revenues for the six month period ended September 30, 2014 was $6,849,828, which was 61.6% higher than the $4,240,042 registered for the six month period ended September 30, 2014. This increase was attributable mainly to the inclusion of the new subsidiaries, INTO and LVS. ASI’s recurring revenues grew, particularly the monitoring revenues by 12%. This growth was a result of increased sale of monitoring and video analytics packages. Non-recurring revenues grew mainly due to INTO and LVS’ inclusion. Further, revenues from international travel advisory and security management grew during this six month period. Installation revenues from INTO and LVS showed consistent growth.

Management notes that the acquisitions of INTO and LVS are making a substantial impact to the Company already. With plans for a corporate reorganization in the near future, the Company is confident that future performance of the Company will improve even further. The Company announced its intent to effect a corporate reorganization of ASI and LVS as well as certain management changes, details of which are contained in a separate press release disseminated by the Company today.

The Company also has a significant order backlog for security systems installations, both in high-end residential and condo / commercial real estate sectors, including some large jobs most of which we expect to see significant levels of completion during the current year.

 

Net income before tax for Q2-16 was $326,582 as compared to $157,740 for Q2-15. This was after amortizing intangible assets in the amount of $101,934 and professional fees relating to the SR&ED refund in the amount of $133,000. Net income for the six month period was $484,785 as compared to $255,795 for the same six month period last year.

Based on current trends, and the order backlog, management is confident that the Company will continue to grow at same organic levels in the foreseeable future while it continues to seek new acquisition opportunities.

The Company’s balance sheet is strong with approximately $3,000,000 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 on completion of at least one, would further improve market share and profitability.

As announced on November 16, 2015, Avante will be hosting a conference call tomorrow morning (Wednesday, November 18, 2015) to discuss the aforementioned quarterly results at 8:30am EST.

 Dial in details are as follows:  

Local: (+1) 416-764-8646            Toll Free: (+1) 888-396-8049                   Conference ID: 44791399

Playback details below, available until December 4, 2015:

Local: (+1) 416-764-8692            Toll Free: (+1) 877-674-7070

Playback Pin: 791399#

About Avante Logixx

Avante Logixx Inc. (XX.V) is a Toronto based provider of technology enabled security solutions. 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.

FORWARD LOOKING STATEMENTS

All statements in this news 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 frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur. This forward-looking information includes statements with respect to, among other things, the effective date of the consolidation of the Common Shares.

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 Company being unable to complete the steps necessary to cause the consolidation to occur on the timelines stated in this news release and the risks identified in Avante’s Management Discussion & Analysis, Annual Information Form 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 as there can be no assurance that the credit agreement will be entered into or on the terms described in this news release or at all.

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

(2) Adjusted EBITDA – Income from operations + depreciation and amortization + share based payments + integration costs