Slide 1: QY and FY 2023 Business Update Shareholder Presentation
QY and FY 2023 Business Update Shareholder Presentation Route1 is an advanced North American engineering and professional services company using data capture technologies. April 25, 2024
Slide 2: Legal Notices
Legal Notices This presentation contains statements that are not current or historical factual statements that may constitute forward- looking statements. These statements are based on certain factors and assumptions, including, expected financial performance, business prospects, technological devel
Slide 3: Route1 Snapshot
Route1 Snapshot • Bringing security and operations together with real-time actionable intelligence. - Route1 provides you with advanced data in a usable format from video capture technologies to enhance safety and security, driving greater profitability and improving operational efficiencies. - We b
Slide 4: Annual Operating Performance
Annual Operating Performance In 000s of CAD Dollars FY 23 A FY 22 A FY 21 A Revenue 17,578 22,045 27,306 • Subscription Revenue and Services 4,457 6,194 9,702 Gross Margin 5,875 7,583 10,860 • Gross Margin % 33% 34% 40% Expenses 6,439 7,645 9,797 Operating Income (564) (62) 1,062 EBITDA 714 1,307 2,
Slide 5: Quarterly Operating Performance
Quarterly Operating Performance Q4 A Q3 A Q2 A Q1 A In 000s of Dollars 2023 2023 2023 2023 Revenue 4,296 4,523 4,184 4,575 Devices and Appliances 3,222 3,370 3,026 3,486 Subscription Revenue and Services 1,064 1,147 1,159 1,086 Other Revenue 10 5 (1) 3 Gross Margin 1,499 1,525 1,173 1,678 Gross Marg
Slide 6: Recurring Revenue Profile
Recurring Revenue Profile Q4 A Q3 A Q2 A Q1 A In 000s of Dollars 2023 2023 2023 2023 Subscription Revenue and Services 1,064 1,147 1,159 1,086 Components: Application Software 139 280 343 456 Professional Services 602 554 506 345 Technology Life-Cycle Maintenance and Support 323 313 310 285 MobiKEY
Slide 7: Defining how we know the business model change was successful
1. Gross profit generated by non MobiKEY activities on a Quarterly basis grows to in excess of US $1.15 mm in US 000s Q4-23 Q3-23 Q2-23 Q1-23 Q4-22 Q3-22 Defining how Quarter Value $1,170 $1,124 $794 $1,163 $862 $1,231 we know that 2. Recurring ALPR support contracts on an annualized basis are great
Slide 8: Quarterly Support Contract Revenue
LPR - Growing Support Revenue $265,000 Quarterly Support Contract Revenue $245,000 $225,000 in US Dollars $205,000 $185,000 $165,000 $145,000 $125,000 1/1/2022 A 3/31/2022 A 6/30/2022 A 9/30/2022 A 12/31/2022 A 3/31/2023 A 6/30/2023 A 9/30/2023 A 12/31/2023 A 3/31/2024 F Page 8
Slide 9: Indirect Costs
Indirect Costs Q4 A Q3 A Q2 A Q1 A In 000s of Dollars 2023 2023 2023 2023 General and Administration (includes amortization) 1,218 1,227 1,248 1,332 Research and Development 51 36 (34) 93 Selling and Marketing 289 279 320 380 Total 1,558 1,542 1,533 1,805 Amortization 285 314 332 346 Total with no A
Slide 10: Turnkey Engineering Services
Mission and Positioning • Best-in-class engineering and professional services company focused on helping our customers achieve successful outcomes deploying and leveraging video capture based technologies, i.e. ALPR, Body Worn Cameras (BWC), Surveillance Video. • For Route1 to be recognized by Genet
Slide 11: Target Audience and Customer Segments
Target Audience and Customer Segments • Installed Base: Existing ALPR and rugged device customers both current and past. • New Logos: Targets include higher education schools, cities, corporate headquarters and public safety agencies. • Partners: Grow and develop strategic partnerships focused on dr
Slide 12: Cybersecurity Offerings
Cybersecurity Offerings A. MobiKEY X • Expected 2024 Revenue: Approximately USD $250,000 to $0.4 million B. PocketVault P-3X • A secure storage token that is a high-security, use anywhere encrypted solid-state disk (SSD) drive that protects data. • Drag files to it, as you would with any USB drive.
Slide 13: Balance Sheet
Balance Sheet Dec 31 Dec 31 In 000s of CAD Dollars 23 A 22 A Cash 38 79 Total current assets 3,071 4,901 Total current liabilities 8,089 8,825 Current contract liabilities (“CCL”) 892 985 Net working capital (“NWC”) (5,018) (3,924) Non-current assets 6,470 8,939 Total assets 9,541 13,839 Bank debt a
Slide 14: Net Debt
Net Debt Dec 31 Dec 31 Dec 31 In 000s of CAD Dollars 23 A 22 A 21 A Lines of Credit (RBC and Vectra Bank) 2,898 2,420 1,626 Windsor Promissory Note 360 635 632 PCS Mobile Seller Promissory Notes(s) 0 63 263 Spyrus Promissory Note(s) 0 0 266 Bank Account Balances (38) (79) (62) Net Debt 3,220 3,039 2
Slide 15: What's Next?
What’s Next? Extended Stability – 1H 2024 • Continue to build the ALPR, video surveillance and rugged device sales pipelines. • Organically grow our cybersecurity practice. • Four quarters of trailing EBITDA in excess of $1.0 mm. • Improved working capital position from Dec 31-23. • Reduce third par
Slide 16: QY and FY 2023 Business Update Shareholder Presentation
QY and FY 2023 Business Update Shareholder Presentation Route1 is an advanced North American engineering and professional services company using data capture technologies. April 25, 2024