Avigilon Posts Strong Q4 Earnings; Net Income Declines
Revenue growth for both Q4 and the full year 2015 reflects increased product sales worldwide, driven in part by penetration of new target regions.
VANCOUVER, B.C., Canada – Avigilon (OTCPK: AIOCF) reported fourth quarter revenue of $109.1 million CAD, an increase of 37% over revenue of $79.5 million CAD in Q4 2014. Revenue for 2015 of $369.4 million CAD represents an increase of 36%, or $98 million CAD, compared with revenue of $271.4 million CAD in 2014. (Commencing with the release of its Q1 2016 financial statements, Avigilon said it will present financial results in U.S. dollars.)
Revenue growth for both Q4 and the full year 2015 reflects increased product sales worldwide, driven by greater customer adoption in existing markets, further penetration of new target regions and sales of new products, the company said. In 2015, revenue was strong across all regions, with year-over-year sales growth between 2% and 49% in all six of the company’s target geographic regions.
Gross profit was $61.2 million CAD in Q4 2015 (56% of revenue), compared with $45.7 million CAD (58% of revenue) in Q4 2014. Gross profit was $212 million CAD in 2015 (57% of revenue), compared with $153.7 million CAD (57% of revenue) in 2014. As a percentage of revenue, gross margins in Q4 2015 decreased by 2% compared to the same period in 2014 due to costs related to our recently opened US manufacturing facility.
Adjusted EBITDA increased 21% year-over-year to $20.8 million CAD in Q4 2015, compared with $17.2 million CAD in Q4 2014. Adjusted EBITDA increased 22% year-over-year to $66.3 million CAD in 2015, compared with $54.3 million CAD in 2014. The increase in adjusted EBITDA largely reflects the company’s increase in sales volume.
Net income for Q4 2015 decreased 56% year-over-year to $5.7 million CAD, compared with $13 million CAD in Q4 2014. Net income for 2015 decreased 20% year-over-year to $28.3 million CAD, compared with $35.1 million CAD in 2014.
The company said net income was impacted by: an increase in amortization and depreciation; a foreign exchange loss for Q4 2015 and a smaller foreign exchange gain for 2015 compared to the same periods in the prior year; and interest expense from long-term debt.
Earnings per share (EPS) in Q4 2015 were 13 cents (basic and diluted), compared with 28 cents (basic) and 27 cents (diluted) a year earlier. EPS for 2015 were 62 cents (basic) and 61 cents (diluted) for 2015, compared with 77 cents (basic) and 76 cents (diluted) a year earlier.
As at Dec. 31, 2015, Avigilon had net working capital of $115.8 million CAD, including cash and cash equivalents of $25.8 million CAD.
“When we went public a little over four years ago, we set an ambitious five-year goal to grow Avigilon’s annual revenue run rate from $60 million to $500 million by the end of 2016,” Avigilon President and CEO Alex Ferandes said during an earnings call. “At our current run rate of over $435 million, I am pleased to confirm that we expect to accomplish our five-year goal on time as promised.”
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