TORONTO, ONTARIO--(Marketwired - May 15, 2017) - Route1 Inc.
(OTCQB:ROIUF)(TSX VENTURE:ROI) (the Company or Route1), a world-leader in secure data protection technologies and user
authentication for government and enterprise, today announced its first quarter (Q1) financial results for the three months ended
March 31, 2017.
In 000s of CAD dollars |
Q1 2017 |
Q4 2016 |
Q3 2016 |
Q2 2016 |
|
Q1 2016 |
|
Revenue |
|
|
|
|
|
|
|
|
Device |
30 |
21 |
221 |
51 |
|
69 |
|
|
Subscription and Service |
1,911 |
1,865 |
1,808 |
1,760 |
|
1,648 |
|
|
Other |
0 |
0 |
2 |
1 |
|
1 |
|
Total Revenue |
1,941 |
1,886 |
2,031 |
1,812 |
|
1,718 |
|
Cost of revenue |
335 |
338 |
448 |
341 |
|
348 |
|
Gross profit |
1,606 |
1,548 |
1,583 |
1,471 |
|
1,370 |
|
Operating expenses |
1,289 |
1,356 |
1,243 |
1,299 |
|
1,332 |
|
Operating profit (1) |
317 |
192 |
340 |
172 |
|
38 |
|
Total other expenses |
109 |
101 |
34 |
(27 |
) |
304 |
|
Comprehensive net income |
208 |
91 |
306 |
199 |
|
(266 |
) |
- Note: Before stock-based compensation
|
|
|
|
|
|
Subscription and Services Revenue
In CAD dollars |
Mar 31
2017 |
Dec 31
2016 |
Sep 30
2016 |
Jun 30
2016 |
Mar 31
2016 |
Closing number of subscribers |
|
18,270 |
|
17,883 |
|
17,344 |
|
16,800 |
|
16,490 |
Revenue per subscriber |
$ |
389 |
$ |
388 |
$ |
383 |
$ |
383 |
$ |
367 |
Subscriber Revenue * |
$ |
1,759 |
$ |
1,702 |
$ |
1,639 |
$ |
1,591 |
$ |
1,496 |
Service Revenue * |
$ |
152 |
$ |
163 |
$ |
169 |
$ |
169 |
$ |
152 |
Total Subscription and Service Revenue * |
$ |
1,911 |
$ |
1,865 |
$ |
1,808 |
$ |
1,760 |
$ |
1,648 |
* Note: Figures are in 000s
Earnings before interest, taxes, depreciation amortization, and stock-based compensation (Adjusted EBITDA) during the first
quarter of 2017 amounted to approximately $406,000 compared to $172,000 in Q1 2016.
in 000s of CAD dollars |
Q1 2017 |
Q4 2016 |
Q3 2016 |
Q2 2016 |
Q1 2016 |
Gross Profit |
1,606 |
1,548 |
1,583 |
1,471 |
1,370 |
Adjusted EBITDA |
406 |
307 |
447 |
278 |
172 |
Amortization |
89 |
115 |
107 |
106 |
134 |
Operating profit before stock based compensation |
317 |
192 |
340 |
172 |
38 |
Route1 used cash in operating activities of approximately $1.2 million during Q1 2017 compared with cash used in operating
activities of $0.8 million in Q1 2016. As at March 31, 2017, the Company had no bank debt and a cash balance of $0.7 million.
Balance Sheet Extracts
In 000s of CAD dollars |
Mar 31
2017 |
Dec 31
2016 |
Sep 30
2016 |
Jun 30
2016 |
Mar 31
2016 |
Dec 31
2015 |
Cash |
704 |
1,946 |
2,898 |
3,735 |
407 |
1,251 |
Total current assets |
1,890 |
2,910 |
3,938 |
4,765 |
3,880 |
2,112 |
Total current liabilities |
1,113 |
2,500 |
3,555 |
4,719 |
3,814 |
1,948 |
Net working capital |
777 |
410 |
383 |
46 |
66 |
164 |
Total assets |
3,114 |
4,190 |
5,230 |
6,116 |
5,296 |
3,656 |
Bank debt |
0 |
0 |
0 |
0 |
0 |
0 |
Total shareholders' equity |
1,904 |
1,600 |
1,574 |
1,296 |
1,377 |
1,597 |
Route1's cash position is at its highest level during the second quarter of the fiscal year as a direct result of the timing
of certain annual enterprise user subscription renewal payments.
Investor Conference Call and Webcast
The Company will also hold a conference call and web cast to discuss the financial results on Tuesday, May 16, 2017 at 9 a.m.
eastern. Participants should dial 1-888-280-4443 or 1-719-325-2170 at least 10 minutes prior to the conference time of 9 a.m.
eastern, pass code 8194201. For those unable to attend the call, a replay will be available after 12 p.m. at 1-844-512-2921 or
1-412-317-6671, pass code 8194201 until midnight on May 30, 2017. The webcast will be presented live at http://public.viavid.com/index.php?id=124478.
About Route1 Inc.
Route1 Inc. is a world-leader in secure data protection technologies and user authentication for government and enterprise.
Route1 solutions enable the workforce to be more productive and more flexible without compromising system access, data-at-rest,
or data-in-use. The Company's suite of patented enterprise security solutions combines best-in-class authentication, data
security and secure communications with streamlined administration tools, running on a proven, trusted infrastructure. From
mobile access to business continuity to best-in-class full system encryption, Route1 offers the most effective, affordable
methods to secure the digital fortress, while meeting or exceeding the highest standards for government and industry. Route1 has
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 also trusted by enterprise security teams in the banking, healthcare,
legal and education sectors, among others. With offices in Washington, D.C., Boca Raton, FL and Toronto, Canada, Route1 serves
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.
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.
This news release contains statements that are not current or historical factual statements that may constitute
forward-looking statements. These statements are based on certain factors and assumptions, including, expected financial
performance, business prospects, technological developments, and development activities and like matters. While Route1 Inc.
considers these factors and assumptions to be reasonable, based on information currently available, they may prove to be
incorrect. These statements involve risks and uncertainties, including but not limited to the risk factors described in reporting
documents filed by the Company. Actual results could differ materially from those projected as a result of these risks and should
not be relied upon as a prediction of future events. The Company undertakes no obligation to update any forward-looking statement
to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated
events, except as required by law. Estimates used in this news release are from Company sources.
© 2017 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.html for notice of Route1's intellectual
property.