Published on 6 November, 2014
|Avigilon delivered another record sales quarter in Q3, underpinned by particularly strong growth in the U.S. and EMEA
Avigilon Corporation (“Avigilon” or the “Company”), a leading global provider of end-to-end security solutions, recently reported financial results for the third quarter ended September 30, 2014. All figures are in Canadian dollars unless otherwise stated.
Third Quarter 2014 financial highlights
- Record quarterly revenue, gross margin, net income, Adjusted EBITDA*, Adjusted Earnings* and Fully Diluted Adjusted Earnings Per Share*
- Revenue was $71.0 million, an increase of 39% over Q3 2013 revenue of $51.2 million.
- Gross margin percentage was 57%, up from 53% a year earlier.
- Adjusted EBITDA was $15.7 million, a 27% increase over Q3 2013 Adjusted EBITDA of $12.4 million.
- Net income was $11.6 million, a 35% increase over Q3 2013 net income of $8.6 million.
- Adjusted Earnings were $11.2 million, a 20% increase over Q3 2013 Adjusted Earnings of $9.3 million.
- Fully Diluted Adjusted Earnings Per Share of $0.24, compared with $0.22 in Q3 2013.
“Avigilon delivered another record sales quarter in Q3, underpinned by particularly strong growth in the U.S. and EMEA, as well as robust sales of new products,” said Alexander Fernandes, founder, president, CEO and chairman of the Board of Avigilon. “Ongoing innovation remains a key pillar of our strategy to increase market share. In the third quarter we had several important new product introductions, including the low cost HD Video Appliance series, Avigilon Control Center 5.4, and the HD dome and bullet cameras with adaptive video analytics. Avigilon continues to make substantial investments in the business, with an eye on continued profitability, as we grow toward our goal of $500 million in run-rate revenue by the end of 2016.”
Management uses certain non- International Financial Reporting Standards (“IFRS”) measures that it believes are useful to investors in evaluating the performance and results of the Company. The term “Adjusted EBITDA” refers to earnings before deducting interest expense, taxes, depreciation, amortisation, foreign exchange gain or loss, and share-based payments. Management believes that Adjusted EBITDA is a useful measure as it provides an indication of the operational results of the business prior to taking into consideration how those activities are financed and taxed and also prior to taking into consideration asset amortisation.
Management also believes that analysing operating results exclusive of significant non-cash items provides a useful measure of the Company’s performance. The term “Adjusted Earnings” and “Adjusted Earnings Per Share” refers to net earnings and earnings per share, respectively, before share-based payments, foreign exchange gain or loss, business acquisition-related costs, non-recurring legal costs and related tax effects. Please refer to the reconciliation table that accompanies the financial statements discussed in this press release and which is included in the Company’s Management’s Discussion & Analysis for Q3 2014. Adjusted EBITDA, Adjusted Earnings and Adjusted Earnings Per Share do not have standardised meanings prescribed by IFRS and are not necessarily comparable to similar measures provided by other companies.
Investors are cautioned that Adjusted EBITDA, Adjusted Earnings and Adjusted Earnings Per Share should not be construed as an alternative to operating income or net income determined in accordance with IFRS as an indicator of the Company’s financial performance or as a measure of its liquidity and cash flows.