par Route1 Inc. (isin : CA77929Q4051)
Route1 Announces Q3 2023 Financial Results
TORONTO, ON / ACCESSWIRE / November 16, 2023 / Route1 Inc. (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 and nine month periods ended September 30, 2023.
Statement of operations In 000s of CAD dollars | Q32023 | Q22023 | Q12023 | Q42022 | Q32022 | Q22022 | ||||||||||||||||||
Revenue | ||||||||||||||||||||||||
Subscription and services | 1,148 | 1,159 | 1,086 | 1,103 | 1,326 | 1,854 | ||||||||||||||||||
Devices and appliances | 3,370 | 3,026 | 3,486 | 2,279 | 5,519 | 5,251 | ||||||||||||||||||
Other | 5 | (1 | ) | 3 | 6 | 2 | 9 | |||||||||||||||||
Total revenue | 4,523 | 4,184 | 4,575 | 3,388 | 6,847 | 7,114 | ||||||||||||||||||
Cost of revenue | 2,998 | 3,011 | 2,897 | 2,032 | 4,842 | 5,015 | ||||||||||||||||||
Gross profit | 1,525 | 1,173 | 1,678 | 1,356 | 2,005 | 2,099 | ||||||||||||||||||
Operating expenses | 1,542 | 1,533 | 1,805 | 1,859 | 1,802 | 1,972 | ||||||||||||||||||
Operating profit 1 | (17 | ) | (360 | ) | (128 | ) | (503 | ) | 203 | 127 | ||||||||||||||
Total other expenses 2, 3 | 53 | 265 | 175 | 1,223 | 139 | 183 | ||||||||||||||||||
Net income (loss) | (70 | ) | (625 | ) | (303 | ) | (1,726 | ) | 64 | (56 | ) |
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 | Q32023 | Q22023 | Q12023 | Q42022 | Q32022 | Q22022 | ||||||||||||||||||
Application software | 280 | 343 | 456 | 475 | 804 | 1,402 | ||||||||||||||||||
Other services | 867 | 816 | 630 | 628 | 522 | 452 | ||||||||||||||||||
Total | 1,148 | 1,159 | 1,086 | 1,103 | 1,326 | 1,854 |
Other services revenue in 000s of CAD dollars | Q32023 | Q22023 | Q12023 | Q42022 | Q32022 | Q22022 | ||||||||||||||||||
Technology life-cycle maintenance and support | 314 | 310 | 285 | 300 | 275 | 214 | ||||||||||||||||||
Professional services | 553 | 506 | 345 | 328 | 246 | 238 | ||||||||||||||||||
Total | 867 | 816 | 630 | 628 | 521 | 452 |
Adjusted EBITDA in 000s of CAD dollars | Q32023 | Q22023 | Q12023 | Q42022 | Q32022 | Q22022 | ||||||||||||||||||
Adjusted EBITDA 3 | 297 | (27 | ) | 219 | (142 | ) | 543 | 459 | ||||||||||||||||
Amortization | 314 | 332 | 346 | 361 | 340 | 332 | ||||||||||||||||||
Operating profit | (17 | ) | (360 | ) | (128 | ) | (503 | ) | 203 | 127 |
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 | Sep 30 2023 | Jun 30 2023 | Mar 31 2023 | Dec 31 2022 | Sep 30 2022 | Jun 30 2022 | ||||||||||||||||||
Cash | 23 | 27 | 80 | 79 | 103 | 299 | ||||||||||||||||||
Total current assets | 3,877 | 3,563 | 3,691 | 4,901 | 5,445 | 4,593 | ||||||||||||||||||
Total current liabilities | 8,728 | 8,484 | 8,001 | 8,825 | 9,629 | 9,012 | ||||||||||||||||||
Net working capital | (4,851 | ) | (4,921 | ) | (4,329 | ) | (3,924 | ) | (4,184 | ) | (4,419 | ) | ||||||||||||
Total assets | 10,678 | 10,571 | 11,016 | 12,355 | 14,826 | 13,909 | ||||||||||||||||||
Net bank debt and seller notes | 3,248 | 3,378 | 3,425 | 3,118 | 3,018 | 2,515 | ||||||||||||||||||
Total shareholders' equity | 838 | 936 | 1,499 | 1,765 | 3,209 | 2,883 | ||||||||||||||||||
As of November 15, 2023, there are a total of 2,075,000 options currently outstanding under the stock option plan.
Business and Operations Metrics
Further to the Company's prior news releases, shareholder calls and webcast presentations, Route1 has communicated operating metrics that it believes assist in establishing whether the Company's business model is generating shareholder value. The Company is adapting to an increasingly difficult competitive environment and is achieving success in the automatic license plate recognition technology component of its business. It is the Company's goal to demonstrate success through cash flow generation that provides for impactful debt reduction and improved returns on invested capital, and additionally justifies scaling the business model.
Further in In today's update, we have added a third metric, quarterly fixed costs.
A. Gross profit (GP) generated from non-MobiKEY and other Route1 software application sales on a quarterly basis needs to achieve and maintain a minimum value of US $1.15 million ("Benchmark A"). Gross profit is defined as revenue less devices and appliances direct costs but does not include other direct costs including salaries, wages and consulting fees, bad debts and travel expenses.
in US 000s | Q3-23 | Q2-23 | Q1-23 | Q4-22 | Q3-22 | Q2-22 | Q1-22 | |||||||||||||||
Quarter Value | $ | 1,124 | $ | 794 | $ | 1,163 | $ | 862 | $ | 1,231 | $ | 896 | $ | 876 |
B. Recurring ALPR support contracts need to grow to in excess of US $1.0 million in annualized revenue ("Benchmark B").
Route1 started the 2022 fiscal year at a base of US $595,000 per annum.
in US 000s |