Route1 Reports 2013 Fourth Quarter and Full Year Financial Results
TORONTO, ONTARIO--(Marketwired - Apr 10, 2014) - Route1 Inc.
(TSX-VENTURE:ROI), a leading provider of mobile workspace
technologies that unlocks the productivity gains of mobile access
without exposing the organization to the risks of data spillage or
malware propagation and whose customers include the U.S. Department
of Defense, the Department of Homeland Security, the Department of
Energy and the Government of Canada, today the Company announced
its financial results for the fourth quarter and year ended
December 31, 2013.
"I'm pleased we were able to continue to grow our fourth
quarter, compared to our third quarter, EBITDA on improved revenue
and gross margin," said Tony Busseri, Route1's chief executive
officer. "An even more positive development was the progress we
made with supporting ID-1 smart card users (CAC, PIV and FRAC) who
want to use an iPad, iPad mini, iPhone or iPod touch to securely
access enterprise data remotely. Our expanded MobiKEY offering has
created deeper and expanded interest within the U.S. Department of
Defense to address their mobile workspace requirements."
Business Highlights
Notable developments and achievements during the fourth quarter
of 2013 included the following:
- Brought to market the MobiKEY Fusion A2T device, a patented
identity validation device that integrates with ID-1 smart cards or
government issued identity cards such as CAC, PIV and FRAC. The
multi-factor authentication technology combines physical possession
of the MobiKEY Fusion A2T device and an identity card, with
computer and network access, allowing for remote use of an iPad,
iPad mini, iPhone or iPod touch running iOS 6 or higher.
- As announced on September 23, 2013, a component of the U.S.
Department of Homeland Security ordered 7,000 MobiKEY Fusion
devices through the U.S. Department of Homeland Security
FirstSource II contract vehicle. During the fourth quarter of 2013,
Route1 shipped a further 2,000 devices with sales value of
approximately $0.2 million. The remaining 4,000 devices were
shipped during the first quarter of 2014.
Financial Highlights
Quarter Comparative
For the quarter ended December 31, 2013, total revenue decreased
to $1.5 million from $2.3 million ($1.7 million before the
arbitration award) in 2012. Gross profit also decreased during the
fourth quarter of 2013 to $1.2 million or 78% of revenue compared
to gross profit of $1.8 million ($1.2 million before the
arbitration award) or 80% of revenue during the fourth quarter of
2012. The decrease in revenue and gross profit is attributable to
the 2012 arbitration award. Route1's fourth quarter 2013 total
comprehensive net loss was $0.1 million compared to net income of
$0.5 million (net loss of $0.1 million before the arbitration
award) in the fourth quarter of 2012.
Fiscal Year Comparative
For the year ended December 31, 2013, total revenue decreased to
$5.4 million from $9.1 million in 2012. Gross profit also decreased
during the year to $4.3 million or 79% of revenue, compared to
gross profit of $7.5 million or 83% of revenue during the previous
year. The reduction in revenue and gross profit is attributable to
the 2012 arbitration award. Route1's 2013 total comprehensive net
loss was $0.3 million from net income of $2.2 million in 2012.
The Company's operating results in fiscal year 2013 with 2012
comparatives are as follows:
In
000s of CAD dollars |
FY 2013 |
|
FY 2012 with Award |
|
FY 2012 without Award |
|
Revenue |
5,433 |
|
9,050 |
|
5,614 |
|
Cost of revenue |
1,137 |
|
1,562 |
|
1,031 |
|
Gross profit |
4,296 |
|
7,488 |
|
4,583 |
|
Operating expenses |
4,485 |
|
4,751 |
|
4,751 |
|
Operating profit (loss) for the year |
(189 |
) |
2,737 |
|
(168 |
) |
Total other expenses |
(154 |
) |
(579 |
) |
(579 |
) |
Income (loss) from operations |
(343 |
) |
2,158 |
|
(747 |
) |
|
|
|
|
|
|
|
Earnings before interest, tax, depreciation, and amortization
(Adjusted EBITDA) during the year amounted to $72,000 compared to
$2.9 million ($43,000 without award) in 2012.
in
000s of CAD dollars |
Dec 31 2013 |
|
Sept 30 2013 |
|
June 30 2013 |
|
Mar 31 2013 |
|
Dec 31 2012 |
Revenue |
1,525 |
|
1,485 |
|
1,366 |
|
1,057 |
|
2,277 |
Adjusted EBITDA |
48 |
|
22 |
|
(7 |
) |
9 |
|
645 |
Amortization |
70 |
|
69 |
|
72 |
|
50 |
|
47 |
Operating profit (loss) before stock based compensation |
(22 |
) |
(47 |
) |
(79 |
) |
(41 |
) |
598 |
|
|
|
|
|
|
|
|
|
|
During the 2013 year Route1 generated cash flow from operations
of $0.4 million. As at December 31, 2013, the Company had no bank
debt and a cash balance of $699,944.
in
000s of CAD dollars |
Dec 31 2013 |
Dec 31 2012 |
Dec 31 2011 |
Cash |
700 |
755 |
87 |
Total
current assets |
1,588 |
1,928 |
5,723 |
Total
current liabilities |
1,715 |
1,739 |
7,430 |
Net
working capital |
(127) |
189 |
(1,707) |
Total
assets |
2,387 |
2,503 |
5,999 |
Bank
debt |
0 |
0 |
0 |
Total
liabilities |
1,854 |
1,886 |
7,539 |
|
|
|
|
Paid, Active Subscribers
As at December 31, 2013, Route1 had 14,602 paying, active
subscribers.
in
000s of Canadian dollars for Revenue from subscribers |
Dec 31 2013 |
Sept 30 2013 |
June 30 2013 |
Mar 31 2013 |
Dec 31 2012 |
Closing number |
|
14,602 |
|
14,642 |
|
14,784 |
|
13,989 |
|
15,913 |
Average number |
|
14,600 |
|
14,697 |
|
15,159 |
|
13,853 |
|
14,870 |
Revenue per subscriber |
$ |
301 |
$ |
310 |
$ |
306 |
$ |
245 |
$ |
259 |
Revenue |
$ |
1,100 |
$ |
1,139 |
$ |
1,158 |
$ |
853 |
$ |
964 |
|
|
|
|
|
|
|
|
|
|
|
During the fourth quarter of 2013 Route1's average revenue per
subscriber was $301, an increase of $42 per subscriber or 16.2%,
from the same period in 2012.
Investor Conference Call and Webcast
The Company will also hold a conference call and web cast to
discuss the financial results on Thursday, April 10, 2014 at 4:15
pm eastern.
Participants should dial 1-888-287-5563 or 1-719-325-2354 at
least 10 minutes prior to the conference time of 4:15 pm eastern.
For those unable to attend the call, a replay will be available
after 7:15 p.m. at 1-877-870-5176 or 1-858-384-5517, pass code
9010761 until midnight on April 24, 2014. The webcast will be
presented live at http://public.viavid.com/index.php?id=108570.
ABOUT ROUTE1,
INC.
Route1 enables the mobile workspace without compromising on
security. Its flagship technology MobiKEY uniquely combines secure
mobile access, with high assurance identity validation and
plug-and-play usability. Remote and mobile workers are able to
securely and cost affectively access their workspace from any
device without exposing the organization to the risk of data
spillage or malware propagation. MobiKEY customers include Fortune
500 enterprises as well as the U.S. Department of Defense, the
Department of Homeland Security, the Department of Energy and the
Government of Canada. Headquartered in Toronto, Canada, Route1 is
listed on the TSX Venture Exchange.
For more information, visit our website at: www.route1.com.
This news release, required by applicable Canadian laws, does
not constitute an offer to sell or a solicitation of an offer to
buy any of the securities in the United States. The securities have
not been and will not be registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act") or
any state securities laws and may not be offered or sold within the
United States or to U.S. Persons unless registered under the U.S.
Securities Act and applicable state securities laws or an exemption
from such registration is available.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
© Route1 Inc., 2014. All rights reserved. Route1, the Route1 and
shield design Logo, SECURING THE DIGITAL WORLD, Mobi, MobiSecure,
MobiLINK, Route1 MobiKEY, Route1 MobiVDI, MobiKEY, MobiKEY IBAD,
DEFIMNET, MobiNET, Route1 MobiNET, TruOFFICE, TruFLASH, TruOFFICE
VDI, MobiKEY Fusion, MobiNET Aggregation Gateway, MobiNET Switching
Array, MobiNET Secure Gateway, EnterpriseLIVE, EnterpriseLIVE
Virtualization Orchestrator, MobiNET Agent, MobiKEY Classic and
MobiKEY Classic 2, are either registered trademarks or trademarks
of Route1 Inc. in the United States and or Canada. All other
trademarks and trade names are the property of their respective
owners. The DEFIMNET and MobiNET platforms, the MobiKEY, MobiKEY
Classic, MobiKEY Classic 2 and MobiKEY Fusion devices, and MobiLINK
are protected by U.S. Patents 7,814,216 and 7,739,726, Canadian
Patent 2,578,053, and other patents pending.
Other product and company names mentioned herein may be
trademarks of their respective companies.
Route1 Inc.Tony BusseriCEO+1 416
814-2635tony.busseri@route1.comwww.route1.com
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