Avante Corp · TSXV:XX
Avante — Q3 F21 Earnings Presentation
29 slides from Avante's earnings presentation, February 2021
Slide 1: Q3 F21 Investor Presentation
Q3 F21 Investor Presentation For Quarter ended December 31, 2020 Presented By Craig Campbell, CEO & Steve Rotz, CFO | February 2021
Slide 2: Disclaimer and Forward Looking Statements
Disclaimer and Forward Looking Statements Forward-Looking Information All statements in this presentation, 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 of
Slide 3: Leading provider of technology enabled security services
We are a leading provider of technology enabled security services. We acquire, manage and build industry leading businesses which provide specialized, mission-critical solutions that address the security risks of our customers.
Slide 4: Investment Highlights
Investment Highlights Compelling and Highly Resilient Industry Resilient industry and business; improving with scale; RMR compounding; pursuit costs decreasing with scale Leveraging Platform with Strong Fundamentals Targeting 10% organic revenue growth annually, with step out acquisitions; 50BPS gro
Slide 5: Our Business at a Glance
Relentlessly Securing Peace of Mind Our Business at a Glance 5
Slide 6: Why the Security Industry
Why the Security Industry You see a streetscape. We see infinite potential. A $9B1,2 Industry Highly Fragmented Resilient & Growing We are providing technology enabled security solutions to clients where security is necessary and important 1. Ibisworld Industry Report – “Security Services in Canada”
Slide 7: Our Strategy
Our Strategy We acquire, manage and build industry-leading security businesses by offering technology enabled security solutions and a one-stop shop for security conscious clients where security is important and necessary. We seek acquisition opportunities that provide a foundation for profitable, s
Slide 8: Avante Logixx Today, a Strong Foundation for Growth
Avante Logixx Today, a Strong Foundation for Growth Two platforms across six business segments, unified by a common goal…to relentlessly secure peace of mind for our clients where security is important and necessary. UHNW Security Full National Enterprise Service Security Security Solutions TTM Rev*
Slide 9: Execution on Strategic Priorities
Execution on Strategic Priorities New management team and strategy $25,204 $23,602 Investments in people, $19,426 processes and technology $18,370 $14,114 Benefits of investment $11,804 $11,515 $11,743 s and scale $8,846 $6,017 $6,372 $5,562 $5,575 $5,856 $5,385 $4,295 $4,034 $3,880 $3,494 $3,519 $3
Slide 10: Demonstrable Execution
Demonstrable Execution We continue to build on our acquisitions completed in the last 2 years. Our focus on cross selling and expanding wallet share continues to add value. *Represents unaudited TTM revenue acquired at time of acquisition All numbers have not been adjusted for discontinued operation
Slide 11: Demonstrable Execution
Demonstrable Execution We continue to deliver consistent performance and strong organic growth from our existing business lines & acquisitions. Q4 F20 represents the first full quarter of ASAP’s revenue since acquisition. No acquisitions have been completed since then. 6.8% 29.7% $25,204 6.9% $23,60
Slide 12: Business Segments
Relentlessly Securing Peace of Mind Business Segments 12
Slide 13: Logixx Security Inc.
Logixx Security Inc. Logixx Security Inc. (“LSI”) is a full service, one-stop shop security solutions provider for large, national, multisite enterprise clients where security is mission critical to success Characteristics Offerings Clients Why? • High, multi-year • Protective Services • Large, nati
Slide 14: Avante Security Inc.
Avante Security Inc. Avante Security Inc. (“ASI”) is a full service, one-stop shop security solutions provider for residential clients with a focus on securing peace of mind Characteristics Offerings Clients Why? • High recurring monthly • Protective Services • Ultra High Net Worth • Fulfills a high
Slide 15: Financial Profile
Relentlessly Securing Peace of Mind Financial Profile 15
Slide 16: Q3 F21 Highlights
Q3 F21 Highlights Three Months Ended(3) $ in thousands, unless otherwise Poised for continued growth noted 31-Dec-19 30-Sep-20 31-Dec-20 Revenues $12,642 $23,602 $25,204 • Continually enhancing existing business Gross profit (1) $2,818 $5,774 $5,584 segments, winning new contracts leading to Gross p
Slide 17: Q3 F21 Highlights
Q3 F21 Highlights • Improving balance sheet Balance Sheet/ Cash Flow Highlights • Paying down debt Three Months Ended • Cleaning up through acceleration of 31-Dec-19 30-Sep-20 31-Dec-20 amortization of intangibles Balance Sheet • Cash flow generation Cash on Hand $360 $2,200 $559 • Positive cash flo
Slide 18: Q3 F21 Consolidated Performance Summary
Q3 F21 Consolidated Performance Summary Revenue* Gross Profit* + 99.4% YoY growth + 98.2% YoY growth $25,204 $23,602 $18,204 $17,030 $20,876 $12,642 $19,156 $5,774 $5,584 $13,234 $14,496 $4,123 – $8,795 $3,095 $3,837 $3,800 $2,818 $2,496 $1,093 $1,337 $3,847 $3,796 $3,708 $4,446 $4,328 $1,725 $1,758
Slide 19: Segmented Operating Results
Segmented Operating Results ASI* LSI* ALI* Q3 F21* Revenue $4,328 $20,876 ($0) $25,204 Gross Profit $1,784 $3,800 ($0) $5,584 Gross Margin (%) 41.2% 18.2% 100.0% 22.2% Direct Operating Expenses $1,371 $1,993 $516 $3,880 Other (Income) Expenses ($11) $267 $1,340 $1,596 EBITDA $425 $1,540 ($1,856) $10
Slide 20: Gross Margin Expansion
Gross Margin Expansion Our strategy of acquiring protective services businesses to build a base of top tier clients led to a change in revenue mix and therefore a reduction in gross margin. We expect further expansion in gross margin as we continue to win new, higher margin business and transition m
Slide 21: Recurring Monthly Revenue
Recurring Monthly Revenue • Improving RMR profile, leading to predictable revenue streams and increasing valuation. • Contractual monthly revenue is increasing quarter over quarter due to winning new, higher margin business with new and existing clients. $17,213 $15,400 $14,641 $14,196 $9,741 $15,01
Slide 22: Direct Operating Expenses
Direct Operating Expenses As we continue to scale, the investments made early on in people, processes and technology are paying off as direct operating expenses as a percentage of revenue continue to decline. 39.5% 40.0% 30.0% 29.8% 28.4% 25.5% 24.9% $5,000 21.7% 19.5% 17.1% 15.4% 20.0% $3,993 $4,03
Slide 23: Leadership
Relentlessly Securing Peace of Mind Leadership 23
Slide 24: Leadership
Leadership Board of Directors Sam Duboc Carol Osler Joseph Leeder Stewart Lyons Andrea Fiederer Jean Pierre Taillon Craig Campbell Chair Director Director Director Director Strategic Advisor CEO Independent Independent Independent Independent Independent Independent Director Avante Logixx Leadership
Slide 25: Aligned Management Team
Aligned Management Team Insider Ownership • Board & NEOs own 3,440,350 shares or 16.2% of total shares outstanding • An 3.9% increase since September 30, 2020 • Total insider ownership is 29.2% of total shares outstanding Share Ownership Guidelines • Board members must own 1.0x annual retainer withi
Slide 26: Key Takeaways
Relentlessly Securing Peace of Mind Key Takeaways 26
Slide 27: Our Strategy
Our Strategy We acquire, manage and build industry-leading security businesses by offering technology enabled security solutions and a one-stop shop for security conscious clients where security is important and necessary. We seek acquisition opportunities that provide a foundation for profitable, s
Slide 28: Investment Highlights
Investment Highlights Compelling and Highly Resilient Industry Resilient industry and business; improving with scale; RMR compounding; pursuit costs decreasing with scale Leveraging Platform with Strong Fundamentals Targeting 10% organic revenue growth annually, with step out acquisitions; 50BPS gro
Slide 29: Contact Us
Contact Us Marc Henley Director – Corporate Development @ [email protected] +1 (416) 923 - 6984 Avantelogixx.com | TSXV: XX 29