Toronto, August 16, 2018 – Route1 Inc. (OTCQB: ROIUF and TSXV: ROI) (the “Company” or “Route1”), North America’s most advanced provider of industrial-grade data intelligence, user authentication, and ultra-secure mobile workforce solutions, today announced its second quarter (Q2) financial results for the three and six months ended June 30, 2018.
1 Before stock based compensation and patent litigation
2 Includes stock based compensation, AirWatch litigation, gain on acquisition and foreign exchange
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 $0.4 million during Q2 2018 compared with cash used in operating activities of $0.1 million in Q2 2017. Non-cash working capital of $0.3 million was generated in Q2 2018 compared to $1.6 million generated in the same period a year earlier. Net cash generated from the day–to-day operations for the three months ended June 30, 2018 was $0.8 million compared to $1.6 million in Q2 2017.
Acquisition of Group Mobile Int’l, LLC
On March 22, 2018, Route1 completed the acquisition of 100% of the membership interest of Group Mobile Int’l, LLC (“Group Mobile”). During the second quarter of 2018, the Company revised the net purchase gain on acquisition to reflect changes in the balance of certain accounts based on information that was not readily available at the time of the acquisition; these adjustments are now reflected in the balances as at March 22, 2018. The net purchase gain on acquisition is now $3,667 versus $106,692 as presented in the Company’s Q1 2018 financial statements. For additional information, see the “BUSINESS COMBINATION” section of Route1’s Q2 2018 Management Discussion and Analysis (“MD&A”).
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 Thursday, August 16, 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 3698568. For those unable to attend the call, a replay will be available on August 16, 2018 after 12: 00 p.m. at Toll-Free 1-844-512-2921 or Toll/International 1-412-317-6671, pass code 3698568 until 11:59 pm on August 30, 2018.
The webcast will be presented live at http://public.viavid.com/index.php?id=130852.
About Route1 Inc.
Route1, operating under the tradename 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. Route1 is listed on the OTCQB in the United States under the symbol ROIUF and in Canada on the TSX Venture Exchange under the symbol ROI. For more information, visit: www.route1.com.
For More Information, Contact:
CEO, Route1 Inc.
+1 416 814-2635
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.
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