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The Company is debt free, has cash balances of $11 million and access to $12 million of unused credit facilities.

Third quarter year-over-year revenue growth from continuing operations of 7.2% and
Recurring Monthly Revenues improved by 7.6%.

TORONTO-Ontario, Feb. 27, 2023 (GLOBE NEWSWIRE) -- Avante Logixx Inc. (TSX.V: XX) (OTC: ALXXF) (“Avante” or the “Company”) is pleased to announce its financial results for its third fiscal quarter ended December 31, 2022 (all amounts in Canadian dollars thousands, unless otherwise indicated).

SUMMARY FINANCIAL RESULTS FOR THE QUARTER ENDED DECEMBER 31, 2022:

	Three Months Ended
$ thousands unless otherwise noted	Dec. 31, 2022	Sept. 30, 2022	June 30, 2022
INCOME STATEMENT INFORMATION:	Q3 F23	Q2 F23	Q1 F23
RMR in the period, continuing operations (1) (3)	$2,600	$2,584	$2,463
Revenues, continuing operations (1)	$5,092	$4,934	$4,568
Gross profit, continuing operations (1) (3)	$2,177	$1,921	$1,995
Gross profit margin, continuing operations (1) (3)	42.8%	38.9%	43.7%
Adjusted EBITDA, continuing operations (1) (3)	$692	$223	$565
Net loss, continuing operations (1) (2)	$(269)	$(427)	$(230)
Net Income (loss) (2)	$(274)	$(427)	$3,505
Average Common Shares during the quarter	26,489,438	26,489,438	26,489,435
	As At
BALANCE SHEET INFORMATION:	Dec. 31, 2022	Sept. 30, 2022	June 30, 2022
Cash balances & GIC investments (1)	$11,081	$10,911	$12,085
Total funded debt as reported, IFRS	$0	$0	$0
Total funded debt & lease obligations, IFRS (1)	$766	$772	$724
Common Shares at period end	26,489,438	26,489,438	26,489,438

        (1)   The Company sold Logixx Security Inc. (“Logixx Security”) on June 1, 2022. Its financial results are treated as discontinued operations for the reporting periods noted above.

       (2)   The net income (loss) during the fiscal quarter ended June 30, 2022 reflect costs related to the Board’s strategic review initiated in August 2021 and restructuring costs related to the transition of the Board and Management on March 30, 2022. The estimated gain on sale of Logixx Security is reflected in first quarter fiscal 2023’s net income.

        (3)   Adjusted EBITDA and Recurring Monthly Revenues (“RMR”) are non-IFRS financial measures that have no standard meaning under IFRS and as a result may not be comparable to the calculation of similar measures by other companies. See Description of Non-IFRS Financial Measures. Reconciliations of Adjusted EBITDA and RMR to Net Income or Revenues, as applicable, are provided in the Company’s Management Discussion & Analysis (“MD&A”).

	Three Months Ended
RECONCILIATION OF ADJUSTED EBITDA	Dec. 31, 2022	Sept. 30, 2022	Jun. 30, 2022
Total comprehensive income (loss) from continuing operations	$(269)	$(427)	$(230)
Deferred income tax expense (recovery)	395	19	28
Interest expense	27	78	73
Depreciation and amortization	268	275	246
Amortization on capitalized commission	2	3	3
Share based payments	72	(80)	(566)
Reorganization and acquisition expense	197	355	972
Deferred financing fees	-	-	39
Adjusted EBITDA from continuing operations	$692	$223	$565

“We are starting to gain traction on our initiatives to increase efficiencies and re-instate our high level of service.  Our clients are noticing the difference in the level of service being provided to them and are becoming our advocates through providing a significantly increased number of referrals” said Manny Mounouchos, Founder, CEO & Board Chair of Avante.   “We continue to actively seek new opportunities to expand and enhance our services.”

Added Raj Kapoor, Chief Financial Officer of the Company, “I am pleased to state that the company has successfully acquired and integrated our latest acquisition while maintaining growth and liquid assets.”

FINANCIAL HIGHLIGHTS FOR THE THIRD FISCAL QUARTER ENDED DECEMBER 31, 2022:

Within continuing operations, the Company reported year-over-year revenue growth of 7.2%, or $341, during the third quarter of fiscal 2023, increasing to $5,092 from $4,751 for the prior fiscal year third quarter. Gross profit margins within continuing operations declined to 42.8% of revenue, versus 45.1% during the prior year’s third quarter, with total gross profit increasing by $34. During the third quarter of fiscal 2023, revenues increased sequentially versus Q2 of fiscal 2023 by 3.2%, or $157, and gross profit margins increased to 42.8% versus 38.9%.

The Company’s recurring monthly revenues (“RMR”) from continuing operations during the last eight quarters are summarized below. The Avante Security segment delivered RMR of $2,600 during the third quarter of fiscal 2023, up from $2,584 during the Company’s second quarter of fiscal 2023, but a year-over-year growth of 7.6% versus the $2,416 generated during the prior year’s third quarter. On a trailing twelve-month basis to December 31, 2022, the Company’s RMR was $10,135 and total revenue was $19,533.

Gross profit margins over the last eight quarters ranged between 38.9% and 45.1%, and were 41.9% on a trailing twelve-month basis to December 31, 2022:

Avante Security	F21(1)	F22(1)	F23(1)
$thousands	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
RMR in the period	$2,314	$2,372	$2,372	$2,416	$2,488	$2,463	$2,584	$2,600
Other revenue	2,339	1,657	2,066	2,335	2,450	2,105	2,352	2,492
Total revenue	$4,653	$4,029	$4,438	$4,751	$4,938	$4,568	$4,935	$5,092
Total Gross Profit	$1,865	$1,776	$1,842	$2,143	$2,087	$1,995	$1,921	$2,177
Gross Profit %	40.1%	44.1%	41.5%	45.1%	42.3%	43.7%	38.9%	42.8%

      (1)   The Company’s fiscal year end is on March 31 of each year. “F21” means the fiscal year ended March 31, 2021; “F22” means the fiscal year ended March 31, 2022; and “F23” means the fiscal year ended March 31, 2023.

SEGMENT RESULTS:

The Avante Security segment reported Adjusted EBITDA of $836 during the three-month period ended December 31, 2022, versus $723 during the second fiscal quarter ended September 30, 2022. This increase of $113 was largely due to a decrease in divisional legal and consulting costs and increased revenue.

The loss in Adjusted EBITDA from central corporate costs, net of eliminations, within continuing operations was $(144) during the three-month period ending December 31, 2022. This represented an increase of $356 versus the $(500) Adjusted EBITDA net of central costs during the second fiscal quarter ended September 30, 2022. The current quarterly benefits from restructuring implemented in the first and second quarters, including closing the head office.

On December 1, 2022, the Company acquired the assets of C & B Alarms Ltd. In Muskoka, Ontario. One month of revenue from the acquisition is included in the December 31, 2022 Avante Security results.

On June 1, 2022, the Company sold its ownership interest in Logixx Security. During first quarter ended June 30 2022, Discontinued Operations reflected two months of operations from the Logixx Security Segment, whereas the first quarter of the prior fiscal year reflected three months. During the first quarter ended June 30, 2022, Adjusted EBITDA of Discontinued Operations was $526, compared to $2,371 during the first quarter ended June 30, 2021, a decrease of $1,845. In addition to one less month of operations reflected this quarter, Logixx Security’s prior year quarterly period benefited more significantly from strong margins on COVID-19 related service revenues.

LIQUIDITY HIGHLIGHTS:

On June 1, 2022, all remaining funded debt of the Company was repaid from proceeds of the sale of Logixx Security. On the same date, the Company entered into amended and restated credit facilities with its bank to provide a $2 million revolving credit facility, provided on a demand basis and subject to a customary borrowing base.   In January, the Company took a small draw on this credit facility.

On July 7, 2022, the Company entered into a definitive loan agreement with affiliates of its largest shareholder. This agreement permits the Company to draw term loans, on a non-revolving basis, for up to $10 million at a fixed rate of 5.0% with terms to maturity ending July 7, 2027. Drawings are subject to a minimum senior leverage test and other conditions. A standby fee on the unused portion of the facility of 0.5% is payable annually in arrears. To date, the Company has not drawn on this term loan facility.

With cash balances of $11.1 million, and access to the senior secured revolver of $2 million and to the $10 million unsecured term loan facility, the Company has excess liquidity to more than meet its existing requirements.

Readers should refer to the Company’s financial statements and MD&A in respect of its third fiscal quarter ended December 31, 2022, 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 fiscal period ended December 31, 2022 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.sedar.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.

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.

ABOUT AVANTE LOGIXX INC.:

Avante Logixx Inc. (TSXV: XX), provides high-end security services through its wholly owned subsidiary, Avante Security Inc., serving residential customers located in Toronto and Muskoka regions of Ontario, Canada.  With an experienced team, a focus on customer service excellence and development of innovative solutions, we remain committed to providing our shareholders with exceptional returns.  Please visit our website at avantelogixx.com.

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

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.

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.