Route1 earns $209,000 in Q2

2018-08-16 07:32 ET - News Release

Mr. Tony Busseri reports

ROUTE1 REPORTS 2018 SECOND QUARTER FINANCIAL RESULTS

Route1 Inc. has released its second quarter financial results for the three and six months ended June 30, 2018.

                                    STATEMENT OF OPERATIONS

                                         Q2 2018     Q1 2018     Q4 2017     Q3 2017     Q2 2017
Revenue
Subscription revenue and services         $1,633      $1,264      $1,263      $1,177      $1,347
Devices and appliances                     3,936         388         109         159          24
Other                                          7          32          48           2           -
Total revenue                              5,577       1,684       1,420       1,338       1,371
Cost of revenue                            3,620         585         331         362         298
Gross profit                               1,957       1,100       1,089         976       1,073
Operating expenses                         1,891       1,136       1,164       1,131       1,151
Operating profit (loss) (1)                   65         (36)        (75)       (155)        (78)
Total other (expenses) (2)                  (144)        114         170         183         157
Net income gain (loss)                       209        (150)       (245)       (338)       (235)
 
(1) Before stock-based compensation and patent litigation.
(2) Includes stock-based compensation, AirWatch litigation, gain on acquisition and foreign 
exchange.
                  SUBSCRIPTION REVENUE AND SERVICES BY QUARTER

                                   Q2 2018   Q1 2018   Q4 2017   Q3 2017   Q2 2017

Application software                $1,181    $1,260    $1,263    $1,177    $1,347
Technology as a service (TaaS)         266         -         -         -         -
Other services                         186         4         -         -         -
Total                                1,633     1,264     1,263     1,177     1,347

                                ADJUSTED EBITDA 

                             Q2 2018   Q1 2018   Q4 2017   Q3 2017   Q2 2017

Gross profit                  $1,957    $1,100    $1,089      $976    $1,073
Adjusted EBITDA (loss) (3)       272        46        24       (46)       16
Amortization                     207        82        99       109        94
Operating profit (loss)           65       (36)      (75)     (155)      (78)

(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 (international financial 
reporting standards) and is therefore unlikely to be comparable with 
similar measures presented by other companies. Adjusted EBITDA allows 
Route1 to compare its operating performance over time on a consistent 
basis.

Route1 generated cash from operating activities of approximately $400,000 during the second quarter of 2018 compared with cash used in operating activities of $100,000 in the second quarter of 2017. Non-cash working capital of $300,000 was generated in the second quarter of 2018 compared with $1.6-million generated in the same period a year earlier. Net cash generated from the day-to-day operations for the three months ended June 30, 2018, was $800,000 compared with $1.6-million in the second quarter of 2017.

Acquisition of Group Mobile Int'l LLC

On March 22, 2018, Route1 completed the acquisition of 100 per cent of the membership interest of Group Mobile Int'l LLC. During the second quarter of 2018, the company revised the net purchase gain on acquisition to reflect changes in the balance of certain accounts based on information that was not readily available at the time of the acquisition; these adjustments are now reflected in the balances as at March 22, 2018. The net purchase gain on acquisition is now $3,667 versus $106,692 as presented in the company's first quarter 2018 financial statements.

Investor conference call and webcast

Route1 will hold a conference call and webcast to discuss the company's financial results and provide a business update on Thursday, Aug. 16, 2018, at 9 a.m. Eastern Time. Participants should dial toll-free 1-866-548-4713 or toll/international 1-323-794-2093 at least 10 minutes prior to the conference, pass code 3698568. For those unable to attend the call, a replay will be available on Aug. 16, 2018, after 12 p.m. at toll-free 1-844-512-2921 or toll/international 1-412-317-6671, pass code 3698568 until 11:59 p.m. on Aug. 30, 2018.

About Route1 Inc.

Route1, operating under the trade name GroupMobile, is North America's most advanced provider of industrial-grade data intelligence, user authentication and ultrasecure mobile work force solutions. The company helps all manner of organizations, from government and military to private sector, to make intelligent use of devices and data for immediate process improvements while maintaining the highest level of cybersecurity.

We seek Safe Harbor.

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