Route1 Reports 2018 Second Quarter Financial Results
August 16 2018 - 7:00AM
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
second quarter (Q2) financial results for the three and six months
ended June 30, 2018.
Statement of operationsIn 000s of CAD dollars |
Q2 2018 |
|
Q1 2018 |
|
Q42017 |
|
Q3 2017 |
|
Q2 2017 |
|
Revenue |
|
|
|
|
|
Subscription revenue and services |
1,633 |
|
1,264 |
|
1,263 |
|
1,177 |
|
1,347 |
|
Devices and appliances |
3,936 |
|
388 |
|
109 |
|
159 |
|
24 |
|
Other |
7 |
|
32 |
|
48 |
|
2 |
|
- |
|
Total
revenue |
5,577 |
|
1,684 |
|
1,420 |
|
1,338 |
|
1,371 |
|
Cost of
revenue |
3,620 |
|
585 |
|
331 |
|
362 |
|
298 |
|
Gross
profit |
1,957 |
|
1,100 |
|
1,089 |
|
976 |
|
1,073 |
|
Operating expenses |
1,891 |
|
1,136 |
|
1,164 |
|
1,131 |
|
1,151 |
|
Operating profit (loss) 1 |
65 |
|
(36 |
) |
(75 |
) |
(155 |
) |
(78 |
) |
Total
other expenses 2 |
(144 |
) |
114 |
|
170 |
|
183 |
|
157 |
|
Net
income gain (loss) |
209 |
|
(150 |
) |
(245 |
) |
(338 |
) |
(235 |
) |
1 Before stock based compensation and patent
litigation2 Includes stock based compensation, AirWatch litigation,
gain on acquisition and foreign exchange
Subscription revenue and services by quarterin
000s of CAD dollars |
Q2 2018 |
Q1 2018 |
Q4 2017 |
Q32017 |
Q2 2017 |
Application software |
1,181 |
1,260 |
1,263 |
1,177 |
1,347 |
Technology as a service (TaaS) |
266 |
- |
- |
- |
- |
Other
services |
186 |
4 |
- |
- |
- |
Total |
1,633 |
1,264 |
1,263 |
1,177 |
1,347 |
Adjusted EBITDAin 000s of CAD dollars |
Q22018 |
Q12018 |
|
Q42017 |
|
Q32017 |
|
Q22017 |
|
Gross
Profit |
1,957 |
1,100 |
|
1,089 |
|
976 |
|
1,073 |
|
Adjusted
EBITDA 3 |
272 |
46 |
|
24 |
|
(46 |
) |
16 |
|
Amortization |
207 |
82 |
|
99 |
|
109 |
|
94 |
|
Operating
profit (loss) |
65 |
(36 |
) |
(75 |
) |
(155 |
) |
(78 |
) |
3 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.
Route1 generated cash from operating activities
of approximately $0.4 million during Q2 2018 compared with cash
used in operating activities of $0.1 million in Q2 2017.
Non-cash working capital of $0.3 million was generated in Q2 2018
compared to $1.6 million generated in the same period a year
earlier. Net cash generated from the day–to-day operations
for the three months ended June 30, 2018 was $0.8 million compared
to $1.6 million in Q2 2017.
Balance sheet extractsIn 000s of CAD dollars |
Jun 302018 |
Mar 312018 |
Dec 312017 |
Sep 302017 |
Jun 302017 |
Cash |
1,084 |
600 |
1,037 |
1,408 |
2,080 |
Total
current assets |
4,989 |
6,292 |
2,035 |
2,856 |
2,924 |
Total
current liabilities |
4,863 |
6,292 |
1,829 |
2,534 |
2,396 |
Net
working capital |
126 |
- |
206 |
322 |
528 |
Total
assets |
7,356 |
8,646 |
3,171 |
4,081 |
4,213 |
Bank
debt |
- |
- |
- |
- |
- |
Total
shareholders’ equity |
2,322 |
2,256 |
1,236 |
1,432 |
1,720 |
Acquisition of Group Mobile Int’l,
LLC
On March 22, 2018, Route1 completed the
acquisition of 100% of the membership interest of Group Mobile
Int’l, LLC (“Group Mobile”). During the second quarter of
2018, the Company revised the net purchase gain on acquisition to
reflect changes in the balance of certain accounts based on
information that was not readily available at the time of the
acquisition; these adjustments are now reflected in the balances as
at March 22, 2018. The net purchase gain on acquisition is
now $3,667 versus $106,692 as presented in the Company’s Q1 2018
financial statements. For additional information, see the
“BUSINESS COMBINATION” section of Route1’s Q2 2018 Management
Discussion and Analysis (“MD&A”).
Investor Conference Call and
Webcast
Route1 will hold a conference call and web cast
to discuss the Company’s financial results and provide a business
update on Thursday, August 16, 2018 at 9 a.m. eastern.
Participants should dial Toll-Free: 1-866-548-4713 or
Toll/International: 1-323-794-2093 at least 10 minutes prior
to the conference, pass code 3698568. For those unable to
attend the call, a replay will be available on August 16,
2018 after 12: 00 p.m. at Toll-Free 1-844-512-2921 or
Toll/International 1-412-317-6671, pass code 3698568 until 11:59 pm
on August 30, 2018.
The webcast will be presented live at
http://public.viavid.com/index.php?id=130852.
About Route1 Inc.Route1,
operating under the tradename 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 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 BusseriCEO, Route1 Inc.+1 416
814-2635tony.busseri@route1.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.
© 2018 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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