Avigilon Corporation, provider of trusted security solutions, reported financial results for the three months ended March 31, 2016. All figures are in United States ("US") dollars unless otherwise stated.
First quarter 2016 financial highlights
- Revenue was $69.9 million, an increase of 15% over Q1 2015 revenue of $60.6 million
- Gross margin was 57%, down from 59% a year earlier
- Adjusted EBITDA* was $8.9 million, in line with Q1 2015 Adjusted EBITDA of $8.9 million
- Adjusted Earnings* were $3.8 million, a 38% decrease over Q1 2015 Adjusted Earnings of $6.2 million
- Diluted Adjusted Earnings Per Share* of $0.09, compared with $0.13 in Q1 2015
- Comparing the trailing 12 months ending Q1 2016 to the trailing 12 months ending Q1 2015: revenue increased by 16%; gross margin percentage remained unchanged at 57%; and Adjusted EBITDA grew by 8%
"The first quarter of 2016 marked our 33rd consecutive quarter of year over year profitable growth," said Alexander Fernandes, Avigilon's Founder, President, Chief Executive Officer and Chairman of the Board. "As part of the successful execution of our growth strategy, we increased our investments across the Company, notably in research and development. These investments strengthen our market-leading security solutions, and pave the way for continued profitable revenue growth."
First quarter 2016 business highlights
- Opened Avigilon's new Analytics and Data Science Center of Excellence in Boston
- Year over year sales growth outpaced that of the security industry
- Launched the H4 and H4 Edge Solution Camera lines
- Major installation of Avigilon 7K Cameras at Colombia's Medellin Atanasio Girardot Stadium
- Announced the Early Adopter Plan for the Avigilon Patent License Program, successfully increasing the total number of licensees to 25 on April 30, 2016
Financial Outlook
Avigilon plans to continue profitably delivering strong year over year revenue growth. In line with these plans, the Company expects to achieve its annual run-rate revenue goal of CAD$500 million by the end of 2016.
Avigilon reiterates its guidance for fiscal year 2016:
- Revenue between $335 million and $365 million
- Adjusted EBITDA margin between 15% and 20%
- Adjusted Earnings Per Share between $0.66 and $0.88
- Effective tax rate between 28% and 30%
- Capital expenditures between $30 million and $35 million