Route1 Inc. · TSXV:ROI
Route1 — Q3 2022 Earnings Presentation
19 slides from Route1's earnings presentation, Nov 17, 2022
Slide 1: Q3 2022 Shareholder Presentation
Q3 2022 Shareholder Presentation Route1 is an advanced North American engineering and professional services company using data capture technologies. November 17, 2022
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. Route1
Slide 4: Our Business Model Evolution
Our Business Model Evolution Q4 2021 and beyond: Sales paradigm revenue shift toward “turnkey 2018 to 2021: MobiKEY + engineering services”. internally developed software applications 2008 to 2017: All about leveraging Route1’s MobiKEY - Route1’s private cloud service flagship secure remote delivery
Slide 5: ALPR Marketplace Summary
ALPR Marketplace Summary • The market has dramatically changed over the last two years. - The delivery of public safety / smart parking as products have and will continue to evolve and at the core rely on video capture based data / technology. - The global pandemic stripped away the delivery of qual
Slide 6: Outcomes Based Approach
Outcomes Based Approach Page 6
Slide 7: The Route1 Difference
The Route1 Difference Operations Optimization Combining disparate data sets and video intelligence with our expertise in process optimization to drive greater profitability and improved operational efficiencies. Technology Life-Cycle Maintenance and Support Support of mission critical operations, re
Slide 8: Genetec AutoVu, the Leader in ALPR
Genetec AutoVu, the Leader in ALPR Future-proof Fully unified AutoVu ALPR devices leverage the latest Speed up investigations by combining ALPR machine learning technology to continuously reads with video surveillance footage, or use deliver new value, so you can be confident your ALPR to manage acc
Slide 9: Next 120 Days
Next 120 Days • Operationally focused and cash flow driven - Working capital management. - Note and debt repayment. - Build the ALPR, video surveillance and rugged device sales pipeline. - Put in place the building blocks for the manufacturing of additional PocketVault P-3X product. - Deliver growin
Slide 10: Quarterly Operating Performance
Quarterly Operating Performance Q3 A Q2 A Q1 A Q4 A Q3 A Q2 A Q1 A In 000s of CAD Dollars 2022 2022 2022 2021 2021 2021 2021 Revenue 6,847 7,114 4,695 7,035 7,288 6,338 6,611 Devices and Appliances 5,519 5,251 2,781 5,022 4,960 3,663 3,786 Subscription Revenue and Services 1,326 1,854 1,911 1,977 2,
Slide 11: Recurring Revenue Profile
Recurring Revenue Profile Q3 A Q2 A Q1 A Q4 A In 000s of CAD Dollars 2022 2022 2022 2021 Subscription Revenue and Services 1,326 1,854 1,911 1,977 Components: Application Software 804 1,402 1,483 1,504 Technology as a Services 0 0 0 50 Professional Services 246 238 219 248 Technology Life-Cycle Main
Slide 12: ALPR Support Contract Growth: Bettering Plan
ALPR Support Contract Growth: Bettering Plan Monthly Deferred Revenue (in USD) $85,000 • The goal was to increase the aggregate post $80,000 sales support annual contract value to US $75,833 $75,000 $850,000 by Dec 31-22 $69,134 $69,054 - FY 2021 realized $594,767 in support contract $70,000 $68,169
Slide 13: When we sell ALPR it looks like…
When we sell ALPR it looks like… Primary Transaction Components • Resell Genetec AutoVu hardware • Resell Genetec AutoVu software license – one-year • Resell Genetec AutoVu hardware warranty • Resell non-Genetec hardware and accessories – mounts, tablets, antennas, etc.. • Sale of Route1 professiona
Slide 14: Spyrus Solutions Contribution: Invest
Spyrus Solutions Contribution: Invest Q3 A Q2 A Q1 A Q4 A In 000s of USD Dollars 2022 2022 2022 2021 Revenue 314 120 329 555 Contributory Gross Margin 280 109 281 410 Contributory Gross Margin % 89% 90% 85% 74% Contributory EBITDA 286 122 302 382 Note: Route1 purchase price – assumption of approxima
Slide 15: Indirect Costs: New Baseline
Indirect Costs: New Baseline Q3 A Q2 A Q1 A Q4 A Q3 A Q2 A Q1 A In 000s of CAD Dollars 2022 2022 2022 2021 2021 2021 2021 General and Administration 1,247 1,344 1,299 1,492 1,518 1,453 1,471 (includes amortization) Research and Development 122 213 266 253 248 201 204 Selling and Marketing 433 414 44
Slide 16: Balance Sheet: Should Improve from Here
Balance Sheet: Should Improve from Here Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 In 000s of CAD Dollars 22 A 22 A 22 A 21 A 21 A Cash 103 299 481 62 727 Total current assets 5,445 4,593 3,618 5,726 7,453 Total current liabilities 9,629 9,012 8,147 10,563 11,542 Current contract liabilities (“CCL”) 1,282 1
Slide 17: Net Debt: Lags the Actions Already Taken
Net Debt: Lags the Actions Already Taken Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 In 000s of CAD Dollars 22 A 22 A 22 A 21 A 21 A 21 A Lines of Credit 2,293 1,972 1,784 1,626 1,593 1,081 • RBC 1,057 984 880 875 850 620 • Vectra 1,236 988 904 951 743 461 Windsor Promissory Note – paid out Apr 30-24
Slide 18: Next 120 Days
Next 120 Days • Operationally focused and cash flow driven - Working capital management. - Note and debt repayment. - Build the ALPR, video surveillance and rugged device sales pipeline. - Put in place the building blocks for the manufacturing of additional PocketVault P-3X product. - Deliver growin
Slide 19: Thank You
THANK YOU Q3 22 Shareholder Presentation 7300 N. Via Paseo Del Sur, Suite 202 Scottsdale, AZ 85258 Tony Busseri President and CEO