Company posts its eighth consecutive quarter of growth in services revenue and MobiKEY subscribers
Toronto, April 5, 2016 – Route1 Inc. (TSXV: ROI) (the Company or Route1), a leading provider of secure access technologies for the mobile workspace to protect businesses and government agencies, today announced its fourth quarter (Q4) and fiscal year (FY) financial results for the period ended December 31, 2015.
“I am very pleased to be reporting our eighth consecutive quarter of growth in both services revenue and MobiKEY subscribers. As we move into and through 2016, I believe we have started to turn a corner with respect to adoption and penetration within certain civilian, intelligence and defense components of the U.S. Government; both with current customers as well as those undergoing pilot testing. Our team is hyper-focused on generating shareholder value through organic expansion of our current subscriber base, as well as adding to our product portfolio through ongoing development initiatives that are designed specifically for the U.S. Government sector,” said Tony Busseri, Chief Executive Officer, Route1 Inc.
Fourth Quarter 2015
For Q4 2015, total revenue increased to $1.63 million from $1.49 million in Q4 2014. Gross profit also increased during the fourth quarter of 2015 to $1.34 million or 83% of revenue compared to gross profit of $1.24 million or 84% of revenue in Q4 2014.
During the fourth quarter of 2015 Route1 realized further growth in revenue from subscribers (recurring revenue). The net increase in MobiKEY application software users (subscriber revenue being the largest component of Route1’s services revenue) primarily came from agencies and components within the U.S. Department of Defense, the U.S. Navy, the U.S. Department of the Interior, and the U.S. Department of Agriculture.
Earnings before interest, tax, depreciation, and amortization (Adjusted EBITDA) during the fourth quarter of 2015 amounted to approximately $279,000 compared to $107,000 in Q4 2014.
Route1’s fourth quarter 2015 total comprehensive gain after income tax was $0.377 million compared to $0.021 million during the same period in 2014.
Fiscal Year 2015
The Company’s operating results in fiscal year 2015 with comparatives are as follows:
During FY 2015, Route1 had cash generated from operating activities of $0.88 million compared with cash generated $1.31 million in FY 2014.
Route1’s cash position is at its highest level during the second quarter of the fiscal year as a direct result of the timing of annual enterprise user subscription renewal payments.
Share Repurchase Program
On September 22, 2015, the Company announced with approval from the TSX Venture Exchange its intention to make a Normal Course Issuer Bid (NCIB). The NCIB permits the Company to purchase for cancellation up to 5% of the common shares in the public float. The maximum number of shares allowed for repurchase is 18,262,570. Purchases under the NCIB commenced September 27, 2015 and will end September 26, 2016, or the date upon which the maximum number of common shares have been purchased by the Company. As of December 31, 2015 and March 31, 2016 the Company had purchased a total of 2,592,000 and 4,357,000 common shares respectively under the NCIB.
Since the first NCIB was announced on February 28, 2012, Route1 has repurchased a total of 28,026,200 of its common shares, representing 7.2% of Route1’s common shares outstanding as at February 28, 2012.
As at March 31, 2016, Route1 has 360,894,414 common shares outstanding.
Investor Conference Call and Webcast
The Company will hold a conference call and web cast on Tuesday, April 5, 2016 at 4:15 pm Eastern to discuss its Q4 2015 and FY 2015 financial results, and provide an update on its business and product development activities. Participants should dial 1-888-503-8169 or 1-719-325-2329 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 5799014 until midnight on April 19, 2016. The webcast will be presented live at http://public.viavid.com/index.php?id=118746.
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-effectively 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.
For More Information Contact:
Tony Busseri, CEO
+1 416 814-2635
Facebook: Route1 Inc.
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., 2016. All rights reserved. Route1, Route 1, the Route1 and shield design Logo, MobiDESK, Mobi, Route1 MobiVDI, Route1 MobiDESK, Route1 MobiBOOK, Route1 MobiKEY, Route1 MobiNET, IBAD, MobiVDI, MobiNET, DEFIMNET, Powered by MobiNET, Route1 Mobi, Route1 MobiLINK, TruOFFICE, MobiLINK, EnterpriseLIVE, PurLINK, TruCOMMAND, MobiMICRO and MobiKEY 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, MobiKEY Classic 3, MobiKEY Fusion, MobiKEY Fusion2, and MobiKEY Fusion3 devices, and MobiLINK are protected by U.S. Patents 7,814,216, 7,739,726, 9,059,962 and 9,059,997, Canadian Patent 2,578,053, and other patents pending. The MobiKEY Classic 2 and MobiKEY Classic 3 devices are also protected by U.S. Patents 6,748,541 and 6,763,399, and European Patent 1001329 of Aladdin Knowledge Systems Ltd. and used under license. Other patents are registered or pending in various countries around the world.
Other product and company names mentioned herein may be trademarks of their respective companies.