Track Group Reports Fiscal 2016 Financial Results

ROMEOVILLE, Ill., Dec. 22, 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."

FINANCIAL RESULTS

• 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.

KEY HIGHLIGHTS

• 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.

BUSINESS OUTLOOK

	Actual		Outlook ARIVA.DE Börsen-Geflüster Kurse Track Group 0,22 € -0,90%
	YTD-FY15	YTD-FY16	FY 2017
Revenue:	$20.72M	$27.19M	$33-35M
Adjusted EBITDA Margin:	5.90%	7.3%	15-20%

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.

TRACK GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 30, 2016 AND 2015
Assets		2016				2015
Current assets:
Cash		$	1,769,921			$	4,903,045
Accounts receivable, net of allowance for doubtful accounts of $2,335,508 and $4,150,000, respectively			6,894,095				6,044,931
Note receivable, current portion			334,733				306,434
Prepaid expenses and other			816,708				1,266,277
Inventory, net of reserves of $98,150 and $225,900, respectively			521,851				741,514
Total current assets			10,337,308				13,262,201
Property and equipment, net of accumulated depreciation of $1,421,389 and $2,822,166, respectively			1,226,461				1,697,630
Monitoring equipment, net of accumulated amortization of $3,438,074 and $2,225,480, respectively			4,358,117				2,784,595
Intangible assets, net of accumulated amortization of $8,233,659 and $5,628,308, respectively			25,540,650				25,884,087
Other assets			2,900,911				2,619,035
Goodwill			7,955,876				7,782,903
Total assets		$	52,319,323			$	54,030,451
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable			2,771,101				2,363,441
Accrued liabilities			3,976,192				2,705,403
Current portion of long-term debt, net of discount of $222,973 and $222,973, respectively			3,245,732				796,225
Total current liabilities			9,993,025				5,865,069
Stock payable - related party			3,289,879				3,501,410
Long-term debt, net of current portion and discount of $185,811 and $408,784, respectively			30,345,803				30,189,188
Other long-term liabilities			-				106,671
Total liabilities			43,628,707				39,662,338
Stockholders' equity:
Common stock, $0.0001 par value: 30,000,000 shares authorized; 10,333,516 and 10,261,288 shares outstanding, respectively Werbung Mehr Nachrichten zur Track Group Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 03:37 - PR Newswire Tellworth Investments LLP - Form 8.3 - Gresham Technologies Plc 02:00 - PR Newswire International Business Machines Corp - 1st Quarter Results 24.04.24 - PR Newswire Mid Wynd International Investment Trust Plc - Transaction in Own Shares SolarBank    Wie die Revolution der sauberen Energie eine solide Investitionsmöglichkeit bieten könnte weiterlesen» Anzeige wo-site-teaser-box-16755_site-teaser-box_2024-04-25_09%253A00%253A00_2024-04-26_09%253A00%253A59