Route1 Reports 2019 First Quarter Financial Results
May 23 2019 - 4:30PM
Route1 Inc. (OTCQB: ROIUF and TSXV: ROI) (the “Company” or
“Route1”), North America's most advanced provider of
industrial-grade data intelligence, user authentication and
ultra-secure mobile workforce solutions, today announced its
first quarter (Q1) financial results for the period ended March 31,
2019.
Statement of operationsIn 000s of CAD dollars |
Q1 2019 |
Q4 2018 |
Q3 2018 |
Q2 2018 |
Q1 2018 |
Q42017 |
Revenue |
|
|
|
|
|
|
Subscription revenue and services |
1,576 |
1,628 |
1,684 |
1,633 |
1,264 |
1,263 |
Devices and appliances |
1,883 |
2,440 |
13,207 |
3,936 |
388 |
109 |
Other |
3 |
6 |
4 |
7 |
32 |
48 |
Total revenue |
3,462 |
4,074 |
14,895 |
5,577 |
1,684 |
1,420 |
Cost of revenue |
1,700 |
2,216 |
12,311 |
3,620 |
585 |
331 |
Gross profit |
1,762 |
1,858 |
2,584 |
1,957 |
1,099 |
1,089 |
Operating expenses |
1,693 |
1,714 |
2,150 |
1,891 |
1,135 |
1,164 |
Operating profit (loss) 1 |
69 |
144 |
434 |
65 |
(36) |
(75) |
Total other expenses 2, 3 |
581 |
499 |
246 |
52 |
244 |
170 |
Net income gain (loss) |
(513) |
(355) |
188 |
13 |
(280) |
(245) |
1 Before stock based compensation2 Includes
stock based compensation, AirWatch litigation, gain on acquisition
and foreign exchange3 The reimbursements received from Bench Walk
pursuant to its investment have, based on advice of its auditors,
been accounted for as a long-term non-monetary liability within the
consolidated financial statements, not as a reduction to patent
litigation expense. All such amounts are non-recourse to the
Company. In connection with the terms of the agreement, the Company
does not have a present obligation to pay any amounts until such
time as the litigation has been settled or an event of default has
occurred. In the event of an award or settlement of the litigation,
the Company will be obligated to pay Bench Walk the greater of 10%
of such award or settlement and $2,000,000 or $3,000,000 if the
litigation proceeds to trial.
Subscription revenue and servicesin 000s of CAD
dollars |
Q1 2018 |
Q4 2018 |
Q3 2018 |
Q2 2018 |
Q1 2018 |
Q4 2017 |
Application software |
1,186 |
1,169 |
1,193 |
1,180 |
1,260 |
1,263 |
Technology as a service (TaaS) |
307 |
329 |
289 |
266 |
- |
- |
Other services |
83 |
130 |
203 |
186 |
4 |
- |
Total |
1,576 |
1,628 |
1,684 |
1,633 |
1,264 |
1,263 |
Adjusted EBITDAin 000s of CAD dollars |
Q12019 |
Q12019 5 |
Q42018 |
Q32018 |
Q22018 |
Q12018 |
Q42017 |
Gross Profit |
1,762 |
1,762 |
1,858 |
2,584 |
1,957 |
1,099 |
1,089 |
Adjusted EBITDA 4 |
322 |
235 |
331 |
627 |
272 |
46 |
24 |
Amortization |
254 |
186 |
186 |
193 |
207 |
82 |
99 |
Operating profit (loss) |
69 |
49 |
144 |
434 |
65 |
(36) |
(75) |
4 Adjusted EBITDA is defined as earnings before
interest, income taxes, depreciation and amortization, stock-based
compensation, patent litigation, restructuring and other costs.
Adjusted EBITDA does not have any standardized meaning prescribed
under IFRS and is therefore unlikely to be comparable to similar
measures presented by other companies. Adjusted EBITDA allows
Route1 to compare its operating performance over time on a
consistent basis.5 Does not include the impact of adopting IFRS
16.
Route1 used cash for operating activities of
approximately $0.22 million during Q1 2019 compared with cash used
in operating activities of $0.15 million in Q1 2018. Non-cash
working capital of $0.50 million was used in Q1 2019 compared to
$0.48 million of cash used in the same period a year earlier.
Net cash used in the day–to-day operations for the three months
ended March 31, 2019 was $0.72 million compared to cash used of
$0.63 million in Q1 2018.
Balance sheet extractsIn 000s of CAD dollars |
Mar 312019 |
Mar 312019 5 |
Dec 312018 |
Sep 302018 |
Jun 302018 |
Mar 312018 |
Dec 312017 |
Cash |
367 |
367 |
1,073 |
2,289 |
1,084 |
600 |
1,037 |
Total current assets |
5,106 |
5,100 |
3,664 |
5,881 |
4,872 |
6,172 |
2,035 |
Total current liabilities |
6,033 |
5,689 |
4,034 |
5,917 |
5,227 |
6,749 |
1,829 |
Net working capital |
(927) |
(589) |
(370) |
(36) |
(355) |
(577) |
206 |
Total assets |
8,803 |
8,136 |
6,673 |
8,733 |
7,892 |
9,179 |
3,171 |
Bank debt |
- |
- |
- |
- |
- |
- |
- |
Total shareholders’ equity 3 |
860 |
994 |
1,465 |
1,928 |
1,888 |
1,931 |
1,236 |
Investor Conference Call and
Webcast
The Company will also hold a conference call and
webcast to discuss the Company’s financial results and provide a
business update on Monday, June 17, 2019 at 4 p.m. eastern.
Participants should dial Toll-Free:
1-800-263-0877 or Toll/International: 1-646-828-8143 at least 10
minutes prior to the conference, pass code 1954942. For those
unable to attend the call, a replay will be available on Monday
June 17, 2019 after 7:00 p.m. eastern at Toll-Free 1-844-512-2921
or Toll/International 1-412-317-6671, pass code 1954942 until 11:59
am on Monday July 1, 2019.
The webcast will be presented live at
http://public.viavid.com/index.php?id=134761.
About Route1 Inc.Route1,
operating under the trade name GroupMobile, is
North America's most advanced provider of industrial-grade data
intelligence, user authentication, and ultra-secure mobile
workforce solutions. The Company helps all manner of organizations,
from government and military to the private sector, to make
intelligent use of devices and data for immediate process
improvements while maintaining the highest level of cyber
security. Route1 is listed on the OTCQB in the United States
under the symbol ROIUF and in Canada on the TSX Venture Exchange
under the symbol ROI. For more information, visit:
www.route1.com.
For More Information, Contact:
Tony BusseriChief Executive Officer, Route1 Inc.+1 416
814-2635tony.busseri@groupmobile.com
This news release, required by applicable
Canadian laws, does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities in the United
States. The securities have not been and will not be registered
under the United States Securities Act of 1933, as amended (the
"U.S. Securities Act") or any state securities laws and may not be
offered or sold within the United States or to U.S. Persons unless
registered under the U.S. Securities Act and applicable state
securities laws or an exemption from such registration is
available.
Neither the 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.
© 2019 Route1 Inc. All rights reserved. No part
of this document may be reproduced, transmitted or otherwise used
in whole or in part or by any means without prior written consent
of Route1 Inc. See
https://www.route1.com/terms-of-use/ for notice of Route1’s
intellectual property.
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