Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Avante Corp V.XX

Alternate Symbol(s):  ALXXF

Avante Corp. is a provider of security operatives and technology enabled security solutions. The Company's activities are conducted through its subsidiaries, Avante Security Inc, Avante International Inc., Avante Holding Corp., The TOYBOXX Inc. and North Star Support Group S.R.L. It provides security services for residential and condominium customers in Toronto and Muskoka, Ontario through the use of advanced technology and a focus on client service. Its business provides a complete offering ranging from system design, sales, installations, and monitoring to services such as alarm response and patrols, personal protection, house staff training, and secure transportation. It has a specialized skillset in security integration, monitoring and electronic building management. It also provides consulting and installation of automation and security solutions for the residential market. Its offerings include Rapid Alarm Response services, and Intelligent Perimeter Protection Video Analytics.


TSXV:XX - Post by User

Post by Torontojayon Apr 02, 2022 9:03am
315 Views
Post# 34569768

Financial recap

Financial recap

It is interesting to note that the company's debt has been reclassified as being corporate debt. If you notice in Q3, the segment liabilities for both Logixx Security and Avante Security has been moved over to corporate debt. This is a cash drain for existing shareholders and as of Q3, total indebtedness totalled $9,004,263. 

Total lease obligations totalled $ 2,435,753 of which it is not clear how much of this would be classified as corporate. My guess would be that only property lease to corporate head office and vehicle lease belonging to Avante security is included only. I would safely say this number should be under $1m. Let's just say between corporate debt and lease obligations we're looking at around $10m 

With a cash payment of $23.95m and debt plus lease obligations of around $10m we have about 0.526 cents per share in net cash. If we exclude the lease component then we're looking at 56 cents per share in net cash. 


In the last 12 trailing months Avante Security has record net income before taxes of $1,014,593 which is an increase of just over 9% from the last fiscal year. Given a tax rate of 26.5% and a 15 times multiple conservatively puts us at around $11 m. If you give it a 30 times multiple then we get a value of $22m. I do not believe the company is worth a 30 times multiple so we're somewhere in between. 

If Avante Security has a value of $11 m then this would add about 0.415 cents per share. Shareholders would potentially be currently valued at 52.5 cents + 41.5 cents or about 94 cents per share. Then you can add any residual working capital to that total. 


There is safety in buying at current prices but it all depends what kind of returns they could achieve with all the remaining cash. Corporate expenses will be a big cash drain   for Avante Security and unless they make an acquisition, net income will be negative in the foreseeable future. 


 

 

 

<< Previous
Bullboard Posts
Next >>