TORONTO, ONTARIO -- (Marketwired) -- 05/15/17 -- 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
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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
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Total Revenue 1,941 1,886 2,031 1,812 1,718
Cost of revenue 335 338 448 341 348
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Gross profit 1,606 1,548 1,583 1,471 1,370
Operating expenses 1,289 1,356 1,243 1,299 1,332
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Operating profit (1) 317 192 340 172 38
Total other expenses 109 101 34 (27) 304
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Comprehensive net income 208 91 306 199 (266)
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1. Note: Before stock-based compensation
Subscription and Services
Revenue Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
In CAD dollars 2017 2016 2016 2016 2016
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Closing number of
subscribers 18,270 17,883 17,344 16,800 16,490
Revenue per subscriber $ 389 $ 388 $ 383 $ 383 $ 367
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Subscriber Revenue (i) $ 1,759 $ 1,702 $ 1,639 $ 1,591 $ 1,496
Service Revenue (i) $ 152 $ 163 $ 169 $ 169 $ 152
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Total Subscription and
Service Revenue (i) $ 1,911 $ 1,865 $ 1,808 $ 1,760 $ 1,648
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(i) 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
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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
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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 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
In 000s of CAD dollars 2017 2016 2016 2016 2016 2015
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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 1,113 2,500 3,555 4,719 3,814 1,948
liabilities
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' 1,904 1,600 1,574 1,296 1,377 1,597
equity
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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.
Contacts:
Tony Busseri
CEO
+1 416 814-2635
tony.busseri@route1.com
Peter Chodos
Executive Vice President and Chief Financial Officer
+1 416 814-2619
peter.chodos@route1.com
