ROMEOVILLE, Ill., Dec. 22, 2016 /PRNewswire/ — Track Group, Inc. (OTCQX: TRCK) (“Track Group” or the “Company”), a global leader in location tracking and monitoring services, reported its earnings results for the fiscal year ended September 30, 2016.
“Track Group’s progress on the operational front is further complemented with a solid trajectory of growth to our top line,” said Guy Dubois, Chairman and CEO of Track Group. “Our revenues have consistently improved from $12.3M in 2014, $20.8M in 2015 and now I’m pleased to report $27.2M this past year. Track Group has now operated cash flow positive for a full year and expects further growth as we continue to develop the executive team and sales force.”
- Revenue increased 31% – The increase in revenue is attributed to the expansion and growth of offender monitoring in Chile and in Track Group’s North American monitoring operations, especially in Indiana and Virginia, as well as increased adoption of the Company’s analytics service offerings.
- Gross profit increased 33% to 61% of revenue – The increase in absolute gross profit and percentage of gross profit is due to higher overall revenue and a continuous drive to reduce manufacturing and monitoring expense.
- Operating expense reduced by 18% – The reduction as a percentage of revenue is the result of a substantial revenue increase and continuous cost management that help offset a 68% increase in research and development expense as the Company continues to invest in its product and application platforms.
- Loss from operations decreased 31% – Increases in topline revenue and in operating expense contributed to the decrease in loss from operations. Although operating expense increased overall, as a percentage of revenue they decreased.
- Net loss of $8.5M – Track Group’s net loss increased by $2.8M. This increase is largely due to non-recurring disgorgement of short swing profit received by the Company in 2015; an increase in research and development expense; and an increase in bad debt in 2016.
- Positive cash from operations – Net cash provided by operations improved 201% from a loss of $0.9M in the fiscal year ended September 30, 2015 to $0.9M in the same period in 2016.
- Adjusted EBITDA increased to $2.0M – Adjusted EBITDA for the fiscal year 2016 increased to $2.0M, or 7.3% of revenue, from $1.2M, or 5.9% of revenue compared to the same period in 2015.
- Guy Dubois Appointed as Chief Executive Officer – On September 13, 2016, Track Group announced that Guy Dubois, Chairman of its Board of Directors, was appointed Chief Executive Officer while remaining Chairman of the Board of Directors.
- Board of Directors Strengthened with Strategic Appointments – On September 13, 2016, Track Group also announced appointments to its Board of Directors. Dr. Ray Johnson, former Senior Vice President and Chief Technology Officer of Lockheed Martin Corporation, and Eric Rosenblum, an Executive at Palantir Technologies, Inc.
- Virginia Department of Corrections to Implement Analytics – On September 28, 2016, Track Group began implementing its predictive analytics software and service offering with over 120 supervising officers across the Commonwealth in all 43 districts. The goal is to transform location-data to intelligent action and improve their efficiency and processes.
Non-GAAP Financial Measures
This release includes financial measures defined as “non-GAAP financial measures” by the Securities and Exchange Commission including non-GAAP EBITDA. These measures may be different from non-GAAP financial measures used by other companies. The presentation of this financial information, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with generally accepted accounting principles. Reconciliations of these non-GAAP financial measures are based on the financial figures for the respective period.
Non-GAAP Adjusted EBITDA excludes items included but not limited to interest, taxes, depreciation, amortization, impairment charges, gains and losses, currency effects, one time charges or benefits that are not indicative of operations, charges to consolidate, integrate or consider recently acquired businesses, costs of closing facilities, stock based or other non-cash compensation or other stated cash and non-cash charges (the “Adjustments”).
The Company believes the non-GAAP measures provide useful information to both management and investors when factoring in the Adjustments. Specific disclosure regarding the Company’s financial results, including management’s analysis of results from operations and financial condition, are contained in the Company’s annual report on Form 10-K for the fiscal year ended September 30, 2016, and other reports filed with the Securities and Exchange Commission. Investors are encouraged to carefully read and consider such disclosure and analysis contained in the Company’s Form 10-K and other reports, including the risk factors contained in such Form 10-K.
About Track Group, Inc.
Track Group designs, manufactures, and markets location tracking devices and develops and sells a variety of related software, services, accessories, networking solutions, and monitoring applications. The Company’s products and services are designed to empower professionals in security, law enforcement, corrections and rehabilitation organizations worldwide with single-sourced offender management solutions that integrate reliable intervention technologies to support re-socialization and monitoring initiatives.
For more information, visit www.trackgrp.com.
Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “project,” “predict,” “if”, “should” and “will” and similar expressions as they relate to Track Group, Inc. subsidiaries (“Track Group”) are intended to identify such forward-looking statements. These statements are only predictions and reflect Track Group’s current beliefs and expectations with respect to future events and are based on assumptions and subject to risks and uncertainties and subject to change at any time. Track Group may from time to time update these publicly announced projections, but it is not obligated to do so. Any projections of future results of operations should not be construed in any manner as a guarantee that such results will in fact occur. These projections are subject to change and could differ materially from final reported results. For a discussion of such risks and uncertainties, see “Risk Factors” in Track Group’s annual report on Form 10-K, its quarterly report on Form 10-Q, and its other reports filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended. New risks emerge from time to time. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.
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SOURCE Track Group, Inc.