Company News: Page (1) of 1 - 05/29/18 Email this story to a friend. email article Print this page (Article printing at MyDmn.com).print page facebook

Route1 Reports 2018 First Quarter Financial Results

(May 29, 2018)

Acquisition of Group Mobile included in the Quarterly Results

TORONTO, May 29, 2018 (GLOBE NEWSWIRE) -- Route1 Inc. (OTCQB:ROIUF) (TSXV:ROI) (the “Company” or “Route1”), a leading technology solutions innovator dedicated to delivering secure data protection technologies and mobility solutions for government and the enterprise sector, earlier today announced its first quarter (Q1) financial results for the period ended March 31, 2018.

The Company’s Q1 results include results from Group Mobile Int’l, LLC (“Group Mobile”) for the nine days from March 22 to March 31, 2018.

Statement of operations
In 000s of CAD dollars
Q1
 2018
 Q4
2017
 Q3
 2017
 Q2
 2017
 Q1
 2017
Revenue     
  Subscription revenue and services1,264 1,263 1,177 1,347 1,911
  Devices and appliances388 109 159 24 30
  Other32 48 2 - -
Total revenue1,684 1,420 1,338 1,371 1,941
Cost of revenue585 331 362 298 335
Gross profit1,100 1,089 976 1,073 1,606
Operating expenses1,136 1,164 1,131 1,151 1,289
Operating (loss) profit 1(36)(75)(155)(78)317
Total other expenses 2(24)170 183 157 109
Comprehensive net (loss) gain(60)(245)(338)(235)208

1 Before stock based compensation and patent litigation
2 Includes stock based compensation, AirWatch litigation, gain on acquisition and foreign exchange



 
Subscription revenue and services by quarter
in 000s of CAD dollars
Q1
 2018
Q4
 2017
Q3
2017
Q2
 2017
Q1
 2017
Application software1,2601,2631,1771,3471,759
Appliance licensing or yearly maintenance----152
Technology as a service (TaaS)-----
Other services4----
Total1,2641,2631,1771,3471,911


Adjusted EBITDA reconciliation
in 000s of CAD dollars
Q1
2018
 Q4
2017
 Q3
2017
 Q2
2017
 Q1
2017
Gross Profit1,100 1,089 976 1,073 1,606
Adjusted EBITDA 346 24 (46)16 406
Amortization82 99 109 94 89
Operating (loss) profit(36)(75)(155)(78)317

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 used cash in operating activities of approximately $0.2 million during Q1 2018 compared with cash generated from operating activities of $0.4 million in Q1 2017.  Non-cash working capital used was $0.4 million in Q1 2018 compared to $1.6 million used in the same period a year earlier.  Net cash used in the day–to-day operations for the three months ended March 31, 2018 was $0.6 million compared to $1.2 million in Q1 2017, a decrease of $0.6 million.  The decrease in net cash used was a result of an increase in deferred revenue for the three months ended March 31, 2018 and the working capital balances acquired with the acquisition of Group Mobile.

Balance sheet extracts
In 000s of CAD dollars
Mar 31
2018
Dec 31
2017
Sep 30
2017
Jun 30
2017
Mar 31
2017
Cash6001,0371,4082,080704
Total current assets6,2922,0352,8562,9241,890
Total current liabilities6,2921,8292,5342,3961,113
Net working capital-206322528777
Total assets8,6463,1714,0814,2133,114
Bank debt-----
Total shareholders’ equity2,2561,2361,4321,7201,904

Route1’s cash position historically has been at its highest level during the second quarter of the fiscal year as a direct result of the timing of annual MobiKEY subscription renewal payments.  With the closing of the Group Mobile acquisition, this likely will change and the highest level of cash on Route1’s balance sheet will be tied to the timing of payments related to Group Mobile sales. 

The following table summarizes the estimated fair value of the consideration transferred and the preliminary estimated fair values of the assets acquired and liabilities assumed at the acquisition date of for Group Mobile.  Route1 may adjust the preliminary purchase price allocation up to one year after the acquisition closing date.

Assets acquired (in 000s of US Dollars)Liabilities assumed (in 000s of US Dollars) 
Cash and cash equivalents$246 Trade and other payables$1,724  
Trade and other receivables$1,233 Employee liabilities$80  
Inventory$590 Sales tax payable$51  
Prepaid expenses$3 Contract liability$85  
  Current assets$2,072 Total liabilities$1,940  
Furniture and fixtures (net)$47 Fair value of net assets acquired$1,039  
TaaS assets (net)$860     
  Fixed assets$907     
Total assets$2,979     
       
in 000s of CAD Dollars      
Fair value of net assets acquired$1,341     
Less: Consideration paid$1,034     
Gain on acquisition$307     
Less: Acquisition costs$200     
Net purchase gain on acquisition$107     

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 Tuesday, May 29, 2018 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 7132615.  For those unable to attend the call, a replay will be available on May 29, 2018 after 7 p.m. at Toll-Free 1-844-512-2921 or Toll/International 1-412-317-6671, pass code 7132615 until 11:59 am on June 12, 2018. 

The webcast will be presented live at http://public.viavid.com/index.php?id=129861.

About Route1 Inc.
Route1 Inc. is a leading technology solutions innovator dedicated to enabling mobility for government and focused enterprise vertical markets by delivering secure data protection technologies and mobility solutions.  The Company’s suite of patented enterprise security solutions, which includes MobiKEY, ActionPLAN, Powered by MobiNET, MobiENCRYPT and DerivID, delivers best-in-class authentication, data security, data analytics and secure remote access, running on a proven, trusted infrastructure, which meets or exceeds the highest security standards for government and industry.  Route1 has earned a Full Authority to Operate from the U.S. Department of Defense, the U.S. Department of the Navy, the U.S. Department of the Interior, and other government agencies.  The Company is proud to be a trusted solutions partner in the banking, healthcare, legal, education, public sector, manufacturing, logistics, field service and warehousing industries.

Through Route1’s wholly owned subsidiary, Group Mobile Int’l, LLC, the Company is a trendsetter in the enterprise technology space by providing expertise in building mobility solutions and deploying complete offerings into vertical markets through specialized hardware, software and our expanding services capabilities.  Route1 is a pioneer in IIoT (Industrial Internet of Things) through the delivery of our ActionPLAN, Powered by MobiNET technology, which not only captures data from electrical inputs including sensor data but takes it to the next level by interpreting, analyzing, transforming the data to  deliver strategic business intelligence. 

The diverse but complimentary technologies our Company provides, along with the level of experience and expertise of our team, uniquely positions us as the pre-emptive leader in secure and complete mobile technology solutions.  Route1 remains focused and dedicated to serving the needs of our business partners; to positively influence their profitability, contribute to their longevity and share in their success.  With offices and staff in Washington, D.C., Boca Raton, FL, Phoenix AZ, Chattanooga TN and Toronto, Canada, Route1 provides leading-edge solutions to public and private sector clients around the world.  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 Busseri
CEO, Route1 Inc.
+1 416 814-2635
tony.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.


Page: 1


Related Keywords:
Related Sites: Digital Webcast ,   AEC Newsroom ,   Digital CAD ,   DMN Newswire ,   itbusinessnet.com ,   IBN - Business ,   IBN - Internet ,   IBN - Security ,   BN - Webcast ,   VideoBasedTutorials
Related Newsletter: CADList Newsletter ,   Streamline Newsletter ,   Tutorial Finder ,   Review Seeker ,   IBN - IT Weekly Newsletter

Our Privacy Policy --- @ Copyright, 2017 Digital Media Online, All Rights Reserved