Route1 earns $242,000 in Q3 2018 with record revenue
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Nov 07, 2018 03:52PM
Route1 is the trusted provider of security and identity management network solutions that are redefining today's digital landscape
Route1 earns $242,000 in Q3 2018
2018-11-06 19:13 ET - News Release
Mr. Tony Busseri reports
ROUTE1 REPORTS RECORD RESULTS IN THIRD QUARTER OF 2018
Route1 Inc. has released its third-quarter financial results for the three and nine months ended Sept. 30, 2018.
Statement of operations In 000s of CAD dollars Q3 2018Q2 2018Q1 2018Q4 2017Q3 2017Q2 2017 Revenue Subscription revenue and services 1,684 1,633 1,264 1,263 1,177 1,347 Devices and appliances 13,207 3,936 388 109 159 24 Other 4 7 32 48 2 - Total revenue 14,895 5,577 1,684 1,420 1,338 1,371 Cost of revenue 12,311 3,620 585 331 362 298 Gross profit 2,584 1,957 1,100 1,089 976 1,073 Operating expenses 2,150 1,891 1,136 1,164 1,131 1,151 Operating profit (loss) 1 434 65 (36) (75) (155) (78) Total other expenses 2 192 (144) 114 170 183 157 Net income gain (loss) 242 209 (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 in 000s of CAD dollars Q3 2018Q2 2018Q1 2018Q4 2017Q3 2017Q2 2017 Application software 1,193 1,181 1,260 1,263 1,177 1,347 Technology as a service (TaaS) 288 266 - - - - Other services 203 186 4 - - - Total 1,684 1,633 1,264 1,263 1,177 1,347
Adjusted EBITDA in 000s of CAD dollars Q32018Q2 2018Q1 2018Q4 2017Q3 2017Q2 2017 Gross Profit 2,584 1,957 1,100 1,089 976 1,073 Adjusted EBITDA 3 627 272 46 24 (46) 16 Amortization 193 207 82 99 109 94 Operating profit (loss) 434 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 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.
Route1 generated cash from operating activities of approximately $0.5 million during Q3 2018 compared with cash used in operating activities of $0.2 million in Q3 2017. Non-cash working capital of $1.0 million was generated in Q3 2018 compared to $0.5 million of cash used in the same period a year earlier. Net cash generated from the day{A –}to-day operations for the three months ended September 30, 2018 was $1.5 million compared to cash used of $0.6 million in Q3 2017.
"I am pleased with the operating and financial performance the GroupMobile team delivered during our recently completed third quarter. The strong quarterly financial results reflect the high quality execution of our Group Mobile Int'l integration plan, closure on the July 2018 US $5.9 million purchase order for Getac rugged devices from a US based integrated energy company engaged primarily in electric power production and retail distribution operations, delivering to the market cutting edge software applications for data analytics and data security, and the start of realizing on the inherent business value that falls out of acquisition of Group Mobile Int'l earlier this year," said Tony Busseri CEO of Route1. "Of note is the positive impact the addition of the rugged device resale business that we purchased earlier this year. Results will vary from quarter to quarter, as device sales can be influenced by one-time large orders similar to the impact the US $5.9 million had on this third quarter.
"We started our business pivot towards being an advanced provider of solutions for the ultra-secure mobile workforce, user authentication and data intelligence in mid-2017 and the plan is now producing better than expected results at this point in the business model's maturity. We expect GroupMobile to grow organically and through acquisition over the next year and continue to aggressively move forward on realizing on the embedded value in our intellectual property."
Investor Conference Call and Webcast
Route1 will hold a conference call and web cast to discuss the Company's financial results and provide a business update on Wednesday, November 7, 2018 at 9 a.m. eastern. 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 1767112 . For those unable to attend the call, a replay will be available on November 7, 2018 after 12:00 p.m. at Toll-Free 1-844-512-2921 or Toll/International 1-412-317-6671, pass code 1767112 until 11:59 pm on November 21, 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 ultra-secure mobile workforce 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 cyber security.
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