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ROUTE1 INC. (:ROI) Route1 Announces Q1 2023 Financial Results

Transparency directive : regulatory news

26/05/2023 00:10

TORONTO, ON / ACCESSWIRE / May 25, 2023 / Route1 Inc. (OTCQB:ROIUF) and (TSXV:ROI) (the "Company" or "Route1"), an advanced North American provider of data-centric business empowerment solutions, today reported its financial results for the three month period ended March 31, 2023.

Statement of operations
In 000s of CAD dollars
Q1
2023
Q4
2022
Q3
2022
Q2
2022
Q1
2022
Revenue
Subscription and services
1,086 1,103 1,326 1,854 1,911
Devices and appliances
3,486 2,279 5,519 5,251 2,781
Other
3 6 2 9 3
Total revenue
4,575 3,388 6,847 7,114 4,695
Cost of revenue
2,897 2,032 4,842 5,015 2,572
Gross profit
1,678 1,356 2,005 2,099 2,123
Operating expenses
1,805 1,859 1,802 1,972 2,012
Operating profit 1
(128) (503) 203 127 111
Total other expenses 2, 3
177 1,223 139 183 112
Net income (loss)
(305) (1,726) 64 (56) (1)

1 Before stock-based compensation

2 Includes gain on litigation, gain or loss on asset disposal, stock-based compensation expense, interest expense, income tax recovery, foreign exchange loss or gain, other expenses and acquisition expense.

3 For Q4 2022, the Company wrote down its deferred tax asset and liabilities with a net impact of ($1,141).

Subscription and services revenue
in 000s of CAD dollars
Q1
2023
Q4
2022
Q3
2022
Q2
2022
Q1
2022
Application software
456 475 804 1,402 1,483
Technology as a service (TaaS)
- - - - -
Other services
630 628 522 452 428
Total
1,086 1,103 1,326 1,854 1,911

Other services revenue
in 000s of CAD dollars
Q4
2022
Q4
2022
Q3
2022
Q2
2022
Q1
2022
Technology life-cycle maintenance and support
285 300 275 214 209
Professional services
345 328 246 238 219
Total
630 628 521 452 428

Adjusted EBITDA
in 000s of CAD dollars
Q1
2023
Q4
2022
Q3
2022
Q2
2022
Q1
2022
Adjusted EBITDA 3
219 -142 543 459 446
Amortization
346 361 340 332 335
Operating profit
(128) (503) 203 127 111

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.



Balance sheet extracts
In 000s of CAD dollars
Mar 31
2023
Dec 31
2022
Sep 30
2022
Jun 30
2022
Mar 31
2022
Cash
80 79 103 299 481
Total current assets
3,691 4,901 5,445 4,593 3,618
Total current liabilities
8,001 8,825 9,629 9,012 8,147
Net working capital
(4,329) (3,924) (4,184) (4,419) (4,529)
Total assets
11,016 12,355 14,826 13,909 12,574
Net bank debt and seller notes
3,344 3,042 3,018 2,515 2,297
Total shareholders' equity
1,499 1,765 3,209 2,883 2,774

As of May 25, 2023, there are a total of 2,575,000 options currently outstanding under the stock option plan.

Business and Operations Metrics

Further to the Company's most recent shareholder call and webcast presentation held on February 28, 2023, Route1 communicated operating metrics that it believes assists in establishing its business model direction change is successful and can be scaled. Specifically, the growth of gross profit (GP) generated from non-MobiKEY sales on a quarterly basis needs to achieve a minimum of US $1.15 million ("Benchmark A"), and recurring ALPR support contracts need to grow to in excess of US $1.0 million in annualized revenue value ("Benchmark B").

Benchmark A

in US 000s
Q1-23 A Q4-22 A Q3-22 A Q2-22 A Q1-22 A
Quarter Value
$1,001 $802 $1,080 $705 $672

Benchmark B

Route1 continued to see improved levels of recurring revenue derived from its LPR clients through improved support contracts - technology life-cycle maintenance and support revenue. Route1 started the year at a base of US $595,000 per annum.

in US 000s
Q1-23 A Q4-22 A Q3-22 A Q2-22 A Q1-22 A
Quarter Value
$212 $222 $213 $168 $165
Annualized Value
$848 $888 $852 $672 $660

Since the closing of the Spyrus Solutions acquisition, Route1 has monetized the inventory acquired and realized good short-term success in selling the PocketVault P-3X technology. The Company spent approximately US $580,000 to acquire Spyrus Solutions.

in US 000s
Q1-23 A Q4-22 A Q3-22 A Q2-22 A Q1-22 A
Spyrus Solutions GP
$387 $128 $280 $109 $281

Business Update Conference Call and Webcast

Route1 will hold a shareholder conference call and web cast to provide a business update on Thursday June 1, 2023 at 10:00 am Eastern Time. Participants should dial Toll-Free 888-506-0062 or Toll/International 973-528-0011 at least 10 minutes prior to the conference call and web cast. The participant access code is 298761. For those unable to attend the call, a replay will be available at Toll-Free 877-481-4010 passcode 48498 until 4:30 pm on June 6, 2023.

The webcast will be presented live at https://www.webcaster4.com/Webcast/Page/2167/48498.

About Route1 Inc.

Route1 Inc. is an advanced North American technology company that empowers their clients with data-centric solutions necessary to drive greater profitability, improve operational efficiency and gain sustainable competitive advantages, while always emphasizing a strong cybersecurity and information assurance posture. Route1 delivers exceptional client outcomes through real-time secure delivery of actionable intelligence to decision makers, whether it be in a manufacturing plant, in-theater or in a university parking lot. Route1 is listed in Canada on the TSX Venture Exchange under the symbol ROI. For more information, visit: www.route1.com.

For More Information, Contact:
Tony Busseri
President and Chief Executive Officer
+1 480 500-7030
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.

© 2023 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.

This news release may contain statements that are not current or historical factual statements that may constitute forward-looking statements or future-oriented financial information. These statements are based on certain factors and assumptions, including, expectations regarding the expected growth in the value of support contracts for the LPR business, price and liquidity of the common shares, competition for skilled personnel, expected financial performance and subscription-based revenue, business prospects, technological developments, development activities and like matters. While Route1 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 market demand for the Company's products and services and risk factors described in reporting documents filed by the Company. Actual results could differ materially from those projected as a result of these and other risks and should not be relied upon as a prediction of future events. The Company undertakes no obligation to update any forward-looking statement or future-oriented financial information 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 presentation are from Company sources. Past or forecasted performance is not a guarantee of future performance and readers should not rely on historical results or forward-looking statements or future-oriented financial information as an assurance of future results.

SOURCE: Route1 Inc.



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https://www.accesswire.com/757418/Route1-Announces-Q1-2023-Financial-Results



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