Route1 earns $306,000 in Q3
posted on
Nov 23, 2016 12:48PM
Route1 is the trusted provider of security and identity management network solutions that are redefining today's digital landscape
Very good results, if trend continues the stock is going much higher.
Route1 earns $306,000 in Q3
2016-11-22 10:14 ET - News Release
Mr. Tony Busseri reports
ROUTE1 REPORTS 2016 THIRD QUARTER FINANCIAL RESULTS
Route1 Inc. has provided its third quarter (Q3) and year-to-date (YTD) financial results for the period ended Sept. 30, 2016.
In thousands of dollars Q3 2016 Q2 2016 Q1 2016 Q4 2015 Q3 2015 Revenue Device $221 $51 $69 $9 $42 Services 1,808 1,760 1,648 1,616 1,572 Other 2 1 1 0 0 Total revenue 2,031 1,812 1,718 1,625 1,614 Cost of revenue 448 341 348 284 320 Gross profit 1,583 1,471 1,370 1,341 1,294 Operating expenses 1,243 1,299 1,332 1,189 1,170 Operating profit (1) 340 172 38 152 124 Total other expenses (34) 27 (304) 225 (22) Comprehensive net income 306 199 (266) 377 102 (1) Note: before stock-based compensation
During the third 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 Q3 2016 Q2 2016 Q1 2016 Q4 2015 Q3 2015 Closing number of subscribers 17,344 16,800 16,490 16,286 15,989 Revenue per subscriber $383 $383 $367 $361 $362 Subscriber revenue * $1,639 $1,591 $1,496 $1,467 $1,424 Other services revenue * $169 $169 $152 $149 $148 Total services revenue * $1,808 $1,760 $1,648 $1,616 $1,572 * Note: Figures are in Canadian thousands.
Earnings before interest, taxes, depreciation, amortization and stock-based compensation (adjusted EBITDA) during the third quarter of 2016 amounted to approximately $447,000 compared with $242,000 in Q3 2015.
(in thousands of Canadian dollars) Q3 2016 Q2 2016 Q1 2016 Q4 2015 Q3 2015 Gross profit $1,583 $1,471 $1,370 $1,341 $1,294 Adjusted EBITDA 447 278 172 279 242 Amortization 107 106 134 127 118 Operating profit before stock-based compensation 340 172 38 152 124
Route1 used cash in operating activities of approximately $700,000 during Q3 2016 compared with cash used of $900,000 in Q3 2015. As at Sept. 30, 2016, the company had no bank debt and a cash balance of $2.9-million.
BALANCE SHEET EXTRACTS (thousands of Canadian dollars) Sept. 30, June 30, March 31, Dec. 31, Sept. 30, 2016 2016 2016 2015 2015 Cash $2,898 $3,735 $407 $1,251 $2,433 Total current assets 3,938 4,765 3,880 2,112 3,161 Total current liabilities 3,555 4,719 3,814 1,948 3,155 Net working capital 383 46 66 164 6 Total assets 5,230 6,116 5,296 3,656 4,466 Bank debt 0 0 0 0 0 Total liabilities 3,656 4,820 3,919 2,059 3,256
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.
Share repurchase program
On Sept. 16, 2016, the company announced with approval from the TSX Venture Exchange its intention to make another NCIB. The NCIB permits the company to purchase for cancellation up to 5 per cent of the common shares in the public float. The maximum number of shares allowed for repurchase is 17,563,870. Purchases under the NCIB may occur during the 12-month period commencing Sept. 27, 2016, and ending Sept. 26, 2017, or the date upon which the maximum number of common shares have been purchased by the company.
For the nine months ended Sept. 30, 2016, the company in aggregate repurchased for cancellation 11,582,000 of its common shares for a consideration of $543,710, at an approximate average price of 4.7 cents per share under the NCIB. For the nine months ended Sept. 30, 2015, the company repurchased for cancellation 7,691,500 of its common shares for a consideration of $361,927 at an average price of 4.7 cents per share under the NCIB.
Business and product development highlights
Route1 provided a Q3 2016 operations update via an investor presentation and conference call on Oct. 18, 2016. The investor presentation was filed on SEDAR and is also available on Route1's website.
We seek Safe Harbor.
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