par Route1 Inc. (isin : CA77929Q4051)
Route1 Announces Q1 2023 Financial Results
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.
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.<