TORONTO, ONTARIO -- (Marketwired) -- 04/13/17 -- 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 fourth quarter (Q4) and fiscal year (FY) financial results for the period ended December 31, 2016.
Fourth Quarter (Q4) 2016
In 000s of CAD dollars Q4 2016 Q3 2016 Q2 2016 Q1 2016 Q4 2015
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Revenue
Device 21 221 51 69 9
Services 1,865 1,808 1,760 1,648 1,616
Other 0 2 1 1 0
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Total Revenue 1,886 2,031 1,812 1,718 1,625
Cost of revenue 338 448 341 348 284
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Gross profit 1,548 1,583 1,471 1,370 1,341
Operating expenses 1,356 1,243 1,299 1,332 1,189
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Operating profit (1) 192 340 172 38 152
Total other expenses 101 34 (27) 304 (225)
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Comprehensive net income 91 306 199 (266) 377
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(1) Note: Before stock-based compensation
During the fourth quarter of 2016, Route1 realized growth in revenue from MobiKEY application software subscribers (recurring revenue). Revenue from Services includes MobiKEY application software, the MobiNET (DEFIMNET) platform and other appliance licensing or yearly maintenance.
Services Revenue Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
In CAD dollars 2016 2016 2016 2016 2015
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Closing number of
subscribers 17,883 17,344 16,800 16,490 16,286
Revenue per subscriber $388 $383 $383 $367 $361
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Subscriber Revenue (i) $1,702 $1,639 $1,591 $1,496 $1,467
Other Services Revenue (i) $163 $169 $169 $152 $149
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Total Services Revenue (i) $1,865 $1,808 $1,760 $1,648 $1,616
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(i) Note: Figures are in 000s
Earnings before interest, taxes, depreciation amortization, and stock-based compensation (Adjusted EBITDA) during the fourth quarter of 2016 amounted to approximately $307,000 compared to $279,000 in Q4 2015.
in 000s of CAD dollars Q4 2016 Q3 2016 Q2 2016 Q1 2016 Q4 2015
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Gross Profit 1,548 1,583 1,471 1,370 1,341
Adjusted EBITDA 307 447 278 172 279
Amortization 115 107 106 134 127
Operating profit before
stock based compensation 192 340 172 38 152
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Route1 used cash in operating activities of approximately $0.7 million during Q4 2016 compared with cash used in operating activities of $1.0 million in Q4 2015. As at December 31, 2016, the Company had no bank debt and a cash balance of $1.9 million.
Balance Sheet Extracts Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
In 000s of CAD dollars 2016 2016 2016 2016 2015
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Cash 1,946 2,898 3,735 407 1,251
Total current assets 2,910 3,938 4,765 3,880 2,112
Total current liabilities 2,500 3,555 4,719 3,814 1,948
Net working capital 410 383 46 66 164
Total assets 4,190 5,230 6,116 5,296 3,656
Bank debt 0 0 0 0 0
Total liabilities 2,590 3,656 4,820 3,919 2,059
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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 annual enterprise user subscription renewal payments.
Fiscal Year 2016
The Company's operating results in fiscal year 2016 with comparatives are as follows:
In 000s of CAD dollars FY 2016 FY 2015 FY 2014 FY 2013
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Revenue
Device 363 156 536 447
Services 7,080 6,218 5,470 4,948
Other 4 23 71 38
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Total Revenue 7,447 6,397 6,077 5,433
Cost of revenue 1,475 1,164 1,145 1,137
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Gross profit 5,972 5,233 4,932 4,296
Operating expenses 5,230 4,515 4,398 4,485
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Operating profit (1) 742 718 534 (189)
Total other expenses 412 (10) (103) 154
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Comprehensive net income 330 728 637 (343)
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(1) Note: Before stock-based compensation
Investor Conference Call and Webcast - Note the Date Change
The Company will also hold a conference call and web cast to discuss the financial results on Tuesday, April 18, 2017 at 4:15 pm eastern. Participants should dial 1-800-263-8506 or 1-719-325-2362 at least 10 minutes prior to the conference time of 4:15 pm eastern, pass code 1247452. For those unable to attend the call, a replay will be available after 7:15 p.m. at 1-844-512-2921 or 1-412-317-6671, pass code 1247452 until midnight on May 2, 2017. The webcast will be presented live at http://public.viavid.com/index.php?id=123610.
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
