AVANTE ANNOUNCES FIRST QUARTER FISCAL 2027 RESULTS: ACHIEVES REVENUE OF $10 MILLION WITH 128% INCREASE IN ADJUSTED EBITDA

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Postmedia has not reviewed the content. by GlobeNewswire AVANTE ANNOUNCES FIRST QUARTER FISCAL 2027 RESULTS: ACHIEVES REVENUE OF $10 MILLION WITH 128% INCREASE IN ADJUSTED EBITDAAuthor of the article:Avante achieved 14.4% year-over-year revenue growth in the first quarter of fiscal 2027, reaching $10.0 million, and Adjusted EBITDA of $0.8 million, an increase of 127.9% as compared to the prior fiscal year’s first quarter. The Company’s growth was driven by its Protective Services division, which experienced an increase of 16.7% in revenue compared to the same period in the previous year and its Electronic Security division, which reported an increase of 34.1%.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe Company generated positive cash flow from operating activities of $1.2 million during the quarter, ending the period with a strong balance sheet consisting of $6.8 million in cash, no debt and access to $12 million in unused credit facilities.Subsequent to quarter end, Avante’s majority-owned subsidiary NSSG launched TESEUM, an AI-powered intelligence platform for integrated and predictive risk management, further strengthening the Company’s international growth platform.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againTORONTO, Ontario, Aug. 31, 2026 (GLOBE NEWSWIRE) — Avante Corp. (TSX.V: XX) (OTC: ALXXF), a global provider of technology-enabled security solutions and services, (“Avante” or the “Company”) is pleased to announce its financial results for the first quarter of fiscal 2027, representing the three months ended June 30, 2026 (all amounts in Canadian dollars thousands, unless otherwise indicated).Readers should refer to the Company’s unaudited condensed interim consolidated financial statements and MD&A in respect of its first quarter ended June 30, 2026, 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. Such financial statements and MD&A are incorporated by reference into this news release and have been filed electronically through the System for Electronic Document Analysis and Retrieval (“SEDAR+”), which can be accessed at www.sedarplus.ca.Manny Mounouchos, Founder, Chief Executive Officer and Board Chair of Avante, commented, “I am very pleased with our fiscal Q1-2027 performance as we achieved continued execution across our core business lines, delivering 14% revenue growth and 128% Adjusted EBITDA growth. Our Protective Services and Electronic Security divisions both delivered solid growth, and we advanced our MAST platform further this quarter with the start of our partnership with Target Park Group Inc. across their above-ground parking portfolio in Canada and the United States, a strong validation of MAST’s scalability beyond traditional security applications. Subsequent to quarter end, our NSSG subsidiary launched TESEUM, its intelligence platform that pairs AI-driven analysis with NSSG’s deep risk-management expertise, a meaningful next step in our international growth story. As we continue through fiscal 2027, we remain focused on scaling our technology platforms, deepening our recurring revenue base, and pursuing M&A opportunities that extend our footprint in high-growth security markets.”This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.Raj Kapoor, Avante’s Chief Financial Officer, added, “The first quarter reflects continued improvement in the underlying profitability of our business, with gross margin expansion to 45% and Adjusted EBITDA growth of 128% compared to the prior year’s first quarter. Positive working capital and cash flow generation were a real highlight this quarter, with positive operating cash flows of $1.2 million improving our cash balance to $6.8 million, giving us added flexibility to invest in the Company’s growth. We remain debt free, with access to $12 million in unused credit facilities, positioning us well to pursue strategic acquisitions and continue investing in our technology platforms including MAST. Growth in high-margin segments such as NSSG and our HALO verticals continue to be a key driver of our improving profitability, and we are pleased with the operating leverage we are seeing across the business.”FISCAL FIRST QUARTER FINANCIAL HIGHLIGHTS FOR THE THREE MONTHS ENDED JUNE 30, 2026:The Company reported revenue of $10.0 million during the first quarter of fiscal 2027, representing year-over-year revenue growth of 14.4%, or $1.3 million, compared to $8.7 million for the prior fiscal year’s first quarter. The Company’s Protective Services division experienced an increase of 16.7% in revenue compared to the same period in the previous year, and Electronic Security reported an increase of 34.1%.Recurring Monthly Revenue (“RMR”) was $4.3 million in the first quarter of fiscal 2027, compared to $4.0 million during the prior fiscal year’s first quarter, an increase of $0.3 million, or approximately 6.6%, reflecting net growth in monitoring customers and the introduction of new, recurring revenue services to our client base.Avante achieved Gross profit of $4.5 million in the first quarter of fiscal 2027, an increase of $1.2 million compared to the same quarter in fiscal 2026. Gross profit margins improved to 44.9%, compared to 37.9% during the prior year’s first quarter, driven by an increase in higher margin segments including HALO and North Star Support Group S.R.L. (“NSSG”).The Company achieved Adjusted EBITDA of $0.8 million during the first quarter of fiscal 2027, compared to Adjusted EBITDA of $0.4 million for the prior fiscal year’s first quarter, representing year-over-year growth of 127.9%. Adjusted EBITDA growth was due to increased revenue, improved margin contribution and growth in the Company’s high margin segments including HALO and NSSG.FISCAL FIRST QUARTER BUSINESS HIGHLIGHTS On June 29, 2026, the Company announced a partnership agreement with Target Park Group Inc., a commercial parking operator with locations across Canada and the United States, to deploy Avante’s MAST platform as the primary security layer across its above-ground parking lot portfolio. The engagement includes a forward-looking technology roadmap toward automated parking services, including vehicle identification and real-time lot monitoring, expanding Avante’s recurring revenue opportunity.During the quarter, the Company’s MAST was selected for a second consecutive year to provide full perimeter security coverage for a major touring live entertainment production in Toronto, and was also deployed to provide remote AI video monitoring in support of a major international sporting tournament.During the quarter, the Company completed over 182,000 patrols and over 600 secured transports.HIGHLIGHTS SUBSEQUENT TO JUNE 30, 2026 On July 28, 2026, the Company’s majority-owned subsidiary, NSSG, launched TESEUM, a fully modular, AI-powered intelligence platform helping organizations detect, understand, and anticipate risk across security, cyber, compliance, and geopolitical domains. The platform unifies location intelligence, travel and cyber risk, and predictive modelling into a single operational platform.Management is pleased to provide a positive outlook for fiscal 2027. Avante has started fiscal 2027 with strong momentum across its core business lines and a growing pipeline of technology-enabled security deployments with an expanding footprint for its MAST and HALO platform. With a debt-free balance sheet, $12 million in available credit facilities, and continued positive operating cash flow, the Company believes it is well positioned to fund organic growth initiatives while remaining opportunistic in pursuing strategic M&A.Avante’s long-term financial objectives serve as a guide to developing and executing its corporate strategy. Management is pleased to reiterate the Company’s long-term financial objectives:Increase recurring revenues through developing and scaling HALO deployments across new verticals;Improve consolidated Adjusted EBITDA margins, driven by an increase in higher-margin service lines and greater operating efficiency;Take advantage of consolidation opportunities within a fragmented security services industry through disciplined M&AContinue to expand NSSG’s international secured transportation, investigations, and consulting revenue.Avante will host an investor webinar to provide a corporate update on Monday, August 31, 2026, at 1:00 pm ET (10:00 am PT) to discuss its fiscal first quarter results for the period ending June 30, 2026. The call will be hosted by: Emmanuel Mounouchos, CEO, Chairman, and Founder of Avante, and Raj Kapoor, CFO of Avante.Webinar Registration:https://bit.ly/XX-Q1-27-Investor-Webinar Date:Monday, August 31, 2026Time: 1:00 pm ET (10:00 am PT)Dial-in:778-907-2071 (Vancouver local) 647-374-4685 (Toronto local)Confirmation #: 859 3707 5018SUMMARY FINANCIAL RESULTS FOR THE FIRST QUARTER OF FISCAL 2027 ENDED JUNE 30, 2026: Three Months EndedThree Months Ended$ thousands unless otherwise notedJune 30, 2026June 30, 2025INCOME STATEMENT INFORMATION: Recurring Monthly Revenue(1)$4,331$4,062Revenues$10,007$8,747Gross profit(1)$4,494$3,318Gross profit margin(1)44.9%37.9%Adjusted EBITDA(1)$818$359Net income (loss)$(353)$11Total comprehensive income (loss)$(348)$15Average Common Shares during the period26,648,73926,648,739BALANCE SHEET INFORMATION:$ thousands unless otherwise notedJune 30, 2026March 31, 2026Cash balances and cash equivalents$6,770$6,220Total funded debt as reported$0$0Total lease obligations$1,186$1,175Common Shares at period end26,648,73926,648,739 RECONCILIATION OF ADJUSTED EBITDA Three Months EndedThree Months Ended$ thousands unless otherwise notedJune 30, 2026June 30, 2025Net income (loss)$(353)$11Current and deferred income tax expense (recovery)$40$17Interest expense$68$69Depreciation and amortization$441$412Amortization on capitalized commissions$-$-Share based payments$18$18Long-term employee benefits$138$(168)Reorganization and acquisition costs$-$-Put option liability revaluation(2)$466$-Adjusted EBITDA$818$359(1) Adjusted EBITDA, Gross profit, Gross profit margin, and Recurring Monthly Revenues (“RMR”) are non-IFRS financial measures that have no standardized meaning under IFRS and, as a result, may not be comparable to the calculation of similar measures by other companies. See Non-IFRS Financial Measures below. Reconciliations of Adjusted EBITDA and RMR to Net Income or Revenues, as applicable, are provided in the Company’s Management Discussion & Analysis (“MD&A”).(2) Represents a non-cash, one-time revaluation charge on the NSSG non-controlling interest put option liability recorded in the first quarter of fiscal 2027. See the notes to the Company’s interim consolidated financial statements for the quarter ended June 30, 2026.Avante Corp. is a Toronto-based leading provider of security personnel and technology-enabled security solutions for residential and commercial clients. Avante’s mission is to deliver an elevated level of security globally, with a white-glove approach for high-net-worth families and corporations alike, through advanced solutions and methods for detecting conditions requiring immediate response. The Company has developed a diversified security platform that leverages cutting-edge technology to deliver superior security services. With an experienced team and a proven track record of solid growth, Avante is taking steps to build a broad portfolio of security businesses and solutions for its customers through organic growth complemented by strategic acquisitions. Avante acquires, manages, and develops industry-leading companies that provide specialized, mission-critical solutions to address the security risks faced by 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 MounouchosFounder, CEO & Board Chair, Avante Corp.416-923-6984manny@avantesecurity.comNon-IFRS Financial MeasuresThis 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 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 InformationThis 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 its stated long-term financial objectives and fiscal 2027 outlook; the Company’s ability to achieve anticipated growth from acquisitions, new service offerings and from development and deployment of new technologies; the Company’s ability to successfully deploy MAST units across applicable Target Park locations and achieve the anticipated operational, commercial, and technological outcomes contemplated by that partnership agreement; the Company’s ability to achieve the anticipated benefits and adoption of NSSG’s TESEUM platform; 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.sedarplus.ca. 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.For further information:Emmanuel MounouchosCEO, Chairman, and Founder(416) 923-6984manny@avantesecurity.comPardeep SanghaInvestor Relations604-572-6392pardeep@angadcapital.com Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.