Avante Achieves 25% Annual Revenue Growth in Fiscal 2024 Ended March 31, 2024

Not for distribution to U.S. news wire services or for dissemination in the United States

• Avante Corp. achieved 25% revenue growth in Fiscal 2024. The Company achieved 35% year-over-year revenue growth in the fourth quarter with Recurring Monthly Revenues improving by 12%.
• The Company anticipates accelerated growth in Fiscal 2025, driven by the NSSG acquisition and continuing to combine organic growth with strategic acquisitions.

/EIN News/ -- TORONTO, Ontario, July 30, 2024 (GLOBE NEWSWIRE) -- Avante Corp. (TSX.V: XX) (OTC: ALXXF) (“Avante” or the “Company”) is pleased to announce its financial results for fiscal 2024, representing the three and twelve months ended March 31, 2024 all amounts in Canadian dollars thousands, unless otherwise indicated).

Manny Mounouchos, Founder, CEO and Board Chair of Avante, commented, “Fiscal 2024 was a remarkable year of growth for Avante, with a 25% increase in annual revenue, capped off with a 35% increase in Q4 quarterly revenue compared to the prior year. Our core business remains robust, with 10% annual growth in Recurring Monthly Revenue. During the year, we completed the NSSG acquisition which positions us to significantly boost international revenue and serve customers on a global scale. We also launched our Argus App, Homeworxx and Toyboxx services which have garnered strong market interest. As we look ahead to Fiscal 2025, we are committed to continuing our approach of organic growth, complemented by strategic acquisitions to build the Avante Security business.”

Raj Kapoor, Avante’s Chief Financial Officer, added, “I am pleased to report that we maintain a robust balance sheet, enabling us to fund the Company’s organic growth initiatives through positive cash flows from operations. We continue to forecast a positive outlook for the upcoming fiscal year.”

ANNUAL FINANCIAL HIGHLIGHTS FOR THE FISCAL 2024 ENDED MARCH 31, 2024:

• Within continuing operations, the Company reported revenue of $24,950 during fiscal 2024, representing year-over-year revenue growth of 25%, or $4,990, compared to $19,960 for the prior fiscal year. The increase was mainly due to the acquisition of NSSG and an increased demand for the Company’s products and services in its domestic market.
• Total Gross profit within continuing operations increased by $2,193 during fiscal 2024 compared to fiscal 2023. Gross profit margins increased to 41.3% compared to 40.7%, indicating a consistent level of profitability.
• The Avante Security segment delivered recurring monthly revenues (“RMR”) of $11,390 during fiscal 2024, up from $10,338 during the Company’s prior fiscal year, a year-over-year growth of 10%. This growth was driven by the increased demand due to higher crime rates, and growth in video analytics following a software and personnel reconfiguration.
• The Company achieved Adjusted EBITDA from continuing operations of $(824) during fiscal 2024, compared to $1,046 for the prior fiscal year.

QUARTERLY FINANCIAL HIGHLIGHTS FOR THE FOURTH FISCAL QUARTER ENDED MARCH 31, 2024:

• Within continuing operations, the Company reported revenue of $7,260 during the fourth quarter of fiscal 2024, representing year-over-year revenue growth of 35%, or $1,894, compared to $5,366 for the prior fiscal year fourth quarter. The increase was mainly due to the acquisition of NSSG and an increased demand for the Company’s products and services as crime rates have increased in its’ domestic market.
• Total gross profit from continuing operations increased by $1,182 in the fourth quarter of fiscal 2024 compared to the same quarter in fiscal 2023. Gross profit margins rose to 44% from 38%, largely due to a change in the sales mix and increased sales in higher margin businesses.
• The Avante Security segment delivered recurring monthly revenues (“RMR”) of $3,019 during the fourth quarter of fiscal 2024, up from $2,691 during the Company’s fourth quarter in the prior year, a year-over-year growth of 12%. This growth was driven by the increased demand due to higher crime rates, and growth in video analytics following a software and personnel reconfiguration.
  
  

ACQUISITION of NSSG:

On September 19, 2023, Avante announced its majority stake acquisition of North Star Support Group S.R.L. (“NSSG”), through its subsidiary Avante International Inc. The transaction’s effective date is October 1, 2023. Avante acquired a 55% majority interest in NSSG, for an aggregate purchase price of EUR1,300,000, paid by way of a combination of cash in the amount of EUR1,200,000 and the issuance of 154,301 common shares in the capital of the Company. In addition, as part of the transaction, Avante advanced to NSSG a loan in principal amount of up to EUR 1 million for a term of 4 years, bearing interest at a rate equal to the Bank of Canada Prime Rate plus 1%, and repayable in 8 quarterly equal repayments starting on the date that is 24 months after the date of each drawdown under the loan.

NSSG is a highly reputed risk management and security company operating globally. Founded in 2017, NSSG is headquartered in Bucharest, Romania, with offices in New York, Cairo, and Kyiv, with representations in Saudi Arabia, Italy, Israel, and the United Kingdom. NSSG offers a wide range of integrated corporate security solutions, with a strong focus on technological advancements and integration with existing corporate security platforms. NSSG has a worldwide clientele and has established itself as a trusted partner to Fortune 500 companies in the risk management industry. NSSG generated revenue of $5.9 million for the twelve-month period ended December 31, 2022 with net profit of $1.3 million.

ANNUAL BUSINESS HIGHLIGHTS

• On September 28, 2023, the Company announced the launch of Avante Argus app, a mobile connectivity app for corporate clients. Avante Argus app provides peace of mind for Avante’s Executive Clients with instant connectivity to the Avante Crisis Centre with real-time location tracking, enabling immediate emergency and medical response capabilities. Argus is designed to provide unparalleled security and support for Avante clients locally and for Avante Black clients internationally. 
• On November 2, 2023, the Company announced it accepted an invitation to join the Global Shield Network, a law enforcement and intelligence network immersed in public/private sector partnerships designed to prevent crime and terrorism and improve public safety. After the safe and successful evacuation of its clients from the conflict zone in Israel, Avante was recognized for its world-class security and crisis management services with an invitation to join the Global Shield Network. This strategic alliance provides Avante with real-time access to police and international intelligence agencies worldwide.
• On February 8, 2024, the Company announced the launch of Avante Homeworxx and Avante ToyBoxx. Homeworxx is Avante’s new home management service providing trusted, vetted and security background checked trades for luxury homes. Avante Toyboxx is an exclusive, top-tier auto storage service tailored for automotive enthusiasts, collectors, and owners of high-value vehicles.
  
  

OUTLOOK

Management maintains a positive outlook for Fiscal 2025. The Company’s long-term financials serve as a guide to developing and executing long-term corporate strategy. The Company’s long-term financial objectives are:

• Invest in tuck-in acquisitions to build its Avante Security business;
• Build recurring revenues;
• Achieve consolidated Adjusted EBITDA margins consistent with its industry;
• Achieve growth in adjusted net income per share;
• Reinvest cashflow in future business growth.
  
  

SUMMARY FINANCIAL RESULTS FOR FISCAL-2024 ENDED MARCH 31, 2024:

Readers should refer to the Company’s financial statements and MD&A in respect of its year ended March 31, 2024, for additional risk factors, accounting policies, detailed financial disclosures, reconciliation of non-IFRS financial measures to the most directly comparable IFRS financial measures, related party transactions, contingencies, and reporting of subsequent events since the year ended March 31, 2024. Such financial statements and MD&A are incorporated by reference into this news release and are filed electronically through the System for Electronic Document Analysis and Retrieval (“SEDAR+”), which can be accessed at www.sedarplus.ca.

$ thousands unless otherwise noted	Mar. 31, 2024			Mar. 31, 2023
INCOME STATEMENT INFORMATION:
RMR in the period, continuing operations (1) (3)	$	11,389		$	10,337
Revenues, continuing operations (1)	$	24,950		$	19,960
Gross profit, continuing operations (1) (3)	$	10,315		$	8,122
Gross profit margin, continuing operations (1) (3)		41.3	%		40.7	%
Adjusted EBITDA, continuing operations (1) (3)	$	(824	)	$	1,046
Net loss, continuing operations (1) (2)	$	(3,049	)	$	(3,856	)
Net Income (loss) (2)	$	(3,049	)	$	32
Average Common Shares during the year		26,570,828			26,489,438
BALANCE SHEET INFORMATION:	Mar. 31, 2024			Mar. 31, 2023
Cash balances & GIC investments (1)	$	6,031		$	10,114
Total funded debt as reported, IFRS	$	0		$	500
Total funded debt & lease obligations, IFRS (1)	$	1,380		$	2,134
Common Shares at period end		26,643,739			26,489,438

	Year ended
RECONCILIATION OF ADJUSTED EBITDA		Mar 31, 2024			Mar 31, 2023
Total comprehensive income (loss) from continuing operations		$	(3,049	)	$	(3,856	)
Deferred income tax expense (recovery)			(87	)		593
Interest expense			(50	)		(95	)
Depreciation and amortization			1,420			1,099
Amortization on capitalized commission			6			9
Share based payments			55			697
Reorganization and acquisition expense Deferred financing fees Loss in fair value of put option		231 - 649				2,560 39
Adjusted EBITDA from continuing operations		$	(824	)	$	1,046

The Company’s (“RMR”) from continuing operations during the last eight quarters are summarized below. Gross profit margins over the last eight quarters ranged between 37.7% and 43.7%, and were 39.6% on a trailing twelve-month basis to December 31, 2023:

Avante Security	F23(1)								F24
$thousands	Q1			Q2			Q3				Q4			Q1			Q2			Q3				Q4
RMR in the period	$	2,463		$	2,584		$	2,600			$	2,691		$	2,648		$	2,834		$	2,889			$	3,018
Other revenue		2,105			2,350			2,492				2,675			2,762			2,505			4,052				4,241
Total revenue	$	4,568		$	4,934		$	5,092			$	5,366		$	5,410		$	5,339		$	6,941			$	7,259
Total Gross Profit	$	1,995		$	1,921		$	2,177			$	2,029		$	2,039		$	2,118		$	2,948			$	3,211
Gross Profit %		43.7	%		38.9	%		42.8		%		37.8	%		37.7	%		39.7	%		42.5		%		44.2	%

      (1)   The Company’s fiscal year end is on March 31 of each year. “F23” means the fiscal year ended March 31, 2023; and “F24” means the fiscal year ended March 31, 2024.

ABOUT AVANTE CORP.:

Avante Corp Inc. is a Toronto based leading provider of security operatives and technology enabled security solutions to residential and commercial clients. Avante’s mission is to deliver an elevated level of security globally, with white-glove mentality to high- net-worth families and corporations alike, through advanced solutions and methods of detecting conditions that require immediate response. The Company has developed a diversified security platform that leverages advanced technology solutions to provide a superior level of security services. With an experienced team and proven track record of solid growth, Avante is taking steps to establish a broad portfolio of security businesses and solutions for its customers through organic growth complemented by strategic acquisitions. Avante acquires, manages and builds industry leading businesses which provide specialized, mission-critical solutions that address the security risks of its clients. Avante is listed on the TSX Venture Exchange under the ticker “XX”. For more information, please visit www.avantecorp.ca and consider joining our investor email list.

Emmanuel Mounouchos
Founder, CEO & Board Chair, Avante Corp.
416-923-6984
manny@avantesecurity.com

This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities described herein in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This news release does not constitute an offer of securities for sale in the United States. The securities described herein have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent registration under U.S. federal and state securities laws or an applicable exemption from such U.S. registration requirements.

Non-IFRS Financial Measures

This press release includes certain measures which have not been prepared in accordance with International Financial Reporting Standards (“IFRS”) such as EBITDA, Adjusted EBITDA and Recurring Monthly Revenue (“RMR”). These non-IFRS measures are not recognized under IFRS and and do not have a standardized meaning prescribed by IFRS. Accordingly, users are cautioned that these measures should not be construed as alternatives to net income determined in accordance with IFRS. The non-IFRS measures presented are unlikely to be comparable to similar measures presented by other issuers.

References to EBITDA are to net income before interest, taxes, depreciation and amortization. References to Adjusted EBITDA are to net income before interest, taxes, depreciation, amortization of intangibles & capitalized commissions, share-based payments, acquisition, integration and / or reorganization costs, deferred financing costs, loss (gain) in fair value of derivative liability and expensing of fair value adjustments per IFRS.   Recurring Monthly Revenues, or RMR, represent revenue during the fiscal period that benefited from contractual periodic billing to customers, typically monthly, quarterly or annually.

Management believes that Adjusted EBITDA and Recurring Monthly Revenues are appropriate additional measures for evaluating Avante’s performance. Readers are cautioned that neither EBITDA, Adjusted EBITDA nor Recurring Monthly Revenues should be construed as an alternative to net income or revenues (as such financial measures are determined under IFRS), as an indicator of financial performance or to cash flow from operating activities (as determined under IFRS) or as a measure of liquidity and cash flow. Avante’s method of calculating EBITDA, Adjusted EBITDA and Recurring Monthly Revenues may differ from methods used by other issuers and, accordingly, Avante’s reported Non-IFRS measures may not be comparable to similar measures used by other issuers.

Forward-Looking Information

This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to the business of the Company and the environment in which it operates. Forward-looking statements are identified by words such as “believe”, “anticipate”, “project”, “expect”, “intend”, “plan”, “will”, “may” “estimate”, “pro-forma” and other similar expressions. These statements are based on the Company’s expectations, estimates, forecasts and projections. The forward-looking statements in this news release are based on certain assumptions. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the Company’s ability to achieve the benefits expected as a result of the sale of Logixx Security Inc., anticipated growth from acquisitions, new service offerings and from development and deployment of new technologies and the list of risk factors identified in the Company’s Management Discussion & Analysis (MD&A), Annual Information Form (AIF) and other continuous disclosure documents available at www.sedar.com. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the Company assumes no obligation to publicly update any such statement, whether as a result of new information, future events or otherwise.

Neither 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.