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TORONTO, Nov. 25, 2020 (GLOBE NEWSWIRE) -- Avante Logixx Inc. (TSX.V: XX) (OTC: ALXXF) (“Avante” or the “Company”) 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
Gross profit (1)
Gross profit margin (1)
Total Adjusted EBITDA(1)
Total Comprehensive income (loss) for the period
Cash Flow from Operations before Working Capital
Cash Flow from Operating Activities
“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
Generated record quarterly revenues from continuing operations of $23.6 million for the three-months ended September 30, 2020, representing sequential growth of 29.7% and 130.9% YoY growth.
Revenue1 by segment during the second quarter was as follows:
For the 3 Months Ended
September 30, 2020
% of Total
Generated gross profit from continuing operations of $5,774 during the three-months ended September 30, 2020, which represented 40.0% sequential growth and 87.0% YoY growth.
Direct Operating Expenses from continuing operations declined to 17.1% of revenue during Q2 F2021 from 20.8% in Q4 2020 and 25.3% in Fiscal 2020’s second quarter.
Generated Adjusted EBITDA during Q2 2021 of $2,221, or 9.4% of revenues, and a sequential improvement of $1,464 and a YoY improvement of $1,497.
Generated Adjusted EBITDA from continuing operations during Q2 2021 of $1,719, or 7.3% of revenues, and a sequential improvement of $1,082 and YoY improvement of $1,189.
Generated $1.45MM in cash flow from operations (before changes in working capital) during Q2, and $2.83MM in net cash flow from operating activities.
Board & Named Executive Officers (“NEOs”) increased ownership by 8.5% since March 31, 2020 to 3,317,350 shares or 15.7% of total shares outstanding.
Completed the divestiture of City Wide Locksmiths on September 30, 2020 further simplifying our operations and providing focus on two core platforms.
_______________1 Net of intercompany eliminations
The Board of Avante announced that it has established a PSU compensation program as of November 25, 2020. This program provides for a cash payment to eligible participants equal to the number of PSUs granted multiplied by the Company’s volume weighted average share price (“VWAP”) in effect during the 30 trading days up to the agreed future valuation date, adjusted downwards for vesting criteria established for each grant.
On November 25, 2020, the Board granted 200,000 PSUs to the Company’s Chief Executive Officer with a valuation date of March 31, 2023. The payment, if any, will vest at 50% if during the thirty trading days prior to the valuation date the VWAP is greater than or equal to $3.39 per share, 75% if that VWAP is greater than or equal to $3.75 per share and 100% if that VWAP is greater than or equal to $4.00 per share. The program is intended to hold the CEO accountable to the Company’s vision and for contributing to long-term value for all shareholders. This PSU grant will reward the CEO for achieving a compounded annual growth rate (“CAGR”) to shareholders since his appointment on January 10, 2018 of between approximately 21.3% and 26.2%, with the minimum vesting hurdle representing an approximate 161.6% CAGR from today.
On November 20, 2020, the Company entered into a revised credit agreement with its banking partner and increased the revolving line of credit by $2 million, from $3 to $5 million.
On November 25, 2020, the Board ratified a minimum share ownership guidelines (“SOGs”) for the NEOs. They are:• CEO 3x base salary;• CFO 2x base salary;• NEOs 1x base salary.
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 #
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.
About Avante Logixx Inc.
Avante Logixx Inc. (TSXV: XX) 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 CampbellCEO(416) email@example.com
All statements in this press 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 often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “planned”, “expect”, “project”, “predict”, “potential”, “targeting”, “intends”, “believe”, “potential”, and similar expressions, or describes a “goal”, or a variation of such words and phrases or state that certain actions, events or results “may”, “should”, “could”, “would”, “might” or “will” be taken, occur or be achieved. This forward-looking information includes statements with respect to, among other things, the intention to create a platform capable of supporting a business with significantly greater scale, Avante’s strategic plan, Avante’s intentions to engage in mergers and acquisitions in the near term, Avante’s intentions to identify, acquire and integrate suitable targets for mergers and acquisitions, the ability to achieve operational efficiencies and provide a better overall customer experience, Avante’s run-rate, opportunities to grow Avante’s revenue and Adjusted EBITDA profile, investments in corporate infrastructure, Avante’s ability to execute and integrate larger acquisitions, and the expected trajectory of corporate costs as a percentage of revenue. 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 ability to identify, acquire and integrate suitable targets for mergers and acquisitions, the ability to control corporate costs, and the list of risk factors identified in Avante’s Management Discussion & Analysis (MD&A), Annual Information Form (AIF) 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.
Non-IFRS Financial Measures
This press release includes certain measures which have not been prepared in accordance with IFRS such as EBITDA, Adjusted EBITDA, Gross Profit and Direct Operating Expenses. These non-IFRS measures are not recognized under IFRS and, 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, expensing of CWL fair value adjustment per IFRS, and CWL’s discontinued operations. References to Direct Operating Expenses are net of interest expense, accretion interest expense, depreciation, amortization and share based payments. EBITDA, Adjusted EBITDA, Gross Profit and Direct Operating Expenses are not earnings measures recognized by International Financial Reporting Standards (“IFRS”) and do not have a standardized meaning prescribed by IFRS. Management believes that Adjusted EBITDA is an appropriate measure in evaluating Avante’s performance. Readers are cautioned that neither EBITDA nor Adjusted EBITDA should be construed as an alternative to net income (as 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 Adjusted EBITDA may differ from methods used by other issuers and, accordingly, Avante’s Adjusted EBITDA may not be comparable to similar measures used by other issuers.
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.
In March 2020, the World Health Organization declared, the outbreak of the novel strain of coronavirus, specifically identified as “COVID-19”, a pandemic. This has resulted in governments worldwide enacting emergency measures to limit the spread of the virus, including closure of non-essential businesses. As of the date of this press release, the majority of the Company’s operations are considered essential in all provinces in which the Company operates. As such, to date the Company has been able to continue operating with no material impact to operations.
There have been no material revisions to the nature and amount of estimates and judgments made in respect of the Company’s financial statements of prior periods. However, the effects of COVID-19 have required significant judgements and estimates to be made in the preparation of the Company’s financial statements.
Additionally, the effects of COVID-19 may require revisions to estimates of expected credit losses attributed to accounts receivable arising from sales to customers on credit terms, including the incorporation of forward-looking information to supplement historical credit loss rates as well as other estimates and judgement used in the preparation of the Company’s financial statements. Due to rapid developments and uncertainty surrounding COVID-19, it is not possible to predict the impact that COVID-19 will have on the Company’s operations or financial results, its suppliers, and its customers. Additionally, it is possible the Company’s operations and consolidated financial results will change in the near term as a result of COVID-19.
ESTERO, Fla. and PEMBROKE, Bermuda, Nov. 25, 2020 /PRNewswire/ -- Hertz Global Holdings, Inc. (OTCPK: HTZGQ) today announced that it has entered into a stock and asset purchase agreement to sell substantially all of the assets of its wholly-owned subsidiary, Donlen Corporation ("Donlen"), a fleet management leader, to Athene Holding Ltd. ("Athene") (NYSE: ATH), a leading financial services company, for an anticipated cash payment of $825 million subject to adjustments for fleet equity, working capital and assumed debt. Hertz anticipates that these adjustments will result in a purchase price at closing of at least $875 million.
Hertz President and CEO Paul Stone said, "The agreement to sell our Donlen business is another significant accomplishment for Hertz during our financial restructuring, following the $1.65 billion debtor-in-possession financing and $4 billion fleet financing recently approved by the Bankruptcy Court. As we continue to work to position Hertz and our business for the future, we believe this transaction provides significant additional flexibility to help us achieve our strategic and financial objectives. At the same time, customers will continue to be able to benefit from Donlen's commitment to excellence in fleet management solutions and service."
Donlen President Tom Callahan added, "We are pleased with this opportunity to position Donlen's business for continued long-term success and appreciate Athene's commitment to continuing our tradition of high-quality service, customer satisfaction, and award-winning fleet management, working with our talented employees. Our fleet customers remain our top priority and we look forward to continuing to be a trusted partner providing high levels of customer satisfaction, impactful technology and fleet solutions."
Athene Chairman and CEO Jim Belardi said, "We are excited about the opportunity to partner with the strong team at Donlen to acquire an industry-leading fleet management franchise that is well-suited to meet our objective of sourcing attractive, differentiated long-term investments for our growing portfolio. In support of the business, strengthening the balance sheet and its significant growth opportunity, we are making an upfront investment of approximately $1 billion, and we are prepared to provide incremental capital that would support approximately $2 billion of additional growth in the fleet. We plan to support Donlen with resources to invest in technology and grow their team, which will enable them to continue offering best-in-class service to their long-standing customer base."
The agreement with Athene was reached following an initial marketing process. If approved by the Bankruptcy Court at a hearing anticipated for December 16, 2020, the agreement with Athene will serve as the "stalking horse bid" in a court-supervised sales process, and the agreement will establish a minimum sale price for Donlen. Hertz expects to conduct a competitive auction process pursuant to Bidding Procedures that will be subject to approval by the Bankruptcy Court to ensure Hertz receives the highest and best offer for the Donlen business.
White & Case LLP is serving as Hertz's legal advisor, Moelis & Co. is serving as investment banker, and FTI Consulting is serving as Hertz's financial advisor.
Information related to the Chapter 11 proceedings and access to Court documents for Hertz Global Holdings, Inc. and Donlen can be found at https://restructuring.primeclerk.com/hertz/.
About Hertz and Donlen
The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands throughout North America, Europe, the Caribbean, Latin American, Africa, the Middle East, Asia, Australia and New Zealand. The Hertz Corporation is one of the largest worldwide vehicle rental companies, and the Hertz brand is one of the most recognized globally. In addition to owning the vehicle leasing and fleet management leader Donlen Corporation, The Hertz Corporation operates the Firefly vehicle rental brand and Hertz 24/7 car sharing business in international markets and sells vehicles through Hertz Car Sales. For more information, visit www.hertz.com.
Donlen develops innovative fleet management technology solutions and offers a proactive, hands-on approach to customer service. Donlen has been named one of the Best and Brightest Companies to Work For® in Chicago and in the Nation for six consecutive years. For more than 55 years, Donlen has empowered its customers to focus on their core business and drive continuous improvement in their fleet's operational and financial performance. Headquartered in Bannockburn, Ill., Donlen is a wholly owned subsidiary of Hertz Global Holdings. For more information about Donlen's best-in-class fleet management solutions, visit www.donlen.com.
Athene, through its subsidiaries, is a leading retirement services company that issues, reinsures and acquires retirement savings products designed for the increasing number of individuals and institutions seeking to fund retirement needs. The products offered by Athene include:
Retail fixed, fixed indexed and index-linked annuity products;
Reinsurance arrangements with third-party annuity providers; and
Institutional products, such as funding agreements and the assumption of pension risk transfer obligations.
Athene had total assets of $191.1 billion as of September 30, 2020. Athene's principal subsidiaries include Athene Annuity & Life Assurance Company, a Delaware-domiciled insurance company, Athene Annuity and Life Company, an Iowa-domiciled insurance company, Athene Annuity & Life Assurance Company of New York, a New York-domiciled insurance company and Athene Life Re Ltd., a Bermuda-domiciled reinsurer. Further information can be found at athene.com.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of federal securities laws. Words such as "expect" and "intend" and similar expressions identify forward-looking statements, which include but are not limited to statements related to Hertz's liquidity and potential financing sources; the bankruptcy process; Hertz's ability to obtain approval from the Bankruptcy Court with respect to motions or other requests made to the Bankruptcy Court throughout the course of the Chapter 11 Cases; Athene's willingness and ability to provide incremental capital; operation of the Donlen business subsequent to the close of the proposed transaction; and the ability to negotiate, develop, confirm and consummate a plan of reorganization. Hertz and Athene (collectively, the "Companies") caution you that these statements are not guarantees of future performance and are subject to numerous evolving risks and uncertainties that the Companies may not be able to accurately predict or assess, including those in each of the risk factors of the Companies that are identified in each of their most recent annual reports on Form 10-K for the year ended December 31, 2019, and any updates thereto in each of their respective quarterly reports on Form 10-Q and current reports on Form 8-K. The Companies caution you not to place undue reliance on the forward-looking statements included herein, which speak only as of the date of this press release, and neither Hertz or Athene undertakes an obligation to update this information.
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SOURCE Hertz Global Holdings