Powerfleet Reports First Quarter 2025 Financial Results
Powerfleet (Nasdaq: AIOT) reported strong Q1 2025 financial results following its business combination with MiX Telematics. Revenue grew 10.2% year-over-year to $75.4 million, driven by safety-centric solutions. Product revenue rose 29% to $18.7 million, while service revenue increased 5% to $56.7 million. Adjusted EBITDA surged 52.2% to $13.7 million, benefiting from topline growth and initial cost synergies.
The company secured $8.7 million in annual run-rate savings by the end of Q2. For full-year 2025, Powerfleet expects revenue to exceed $300 million and adjusted EBITDA to surpass $60 million. The integration strategy's success is evident in the financial performance, setting a solid foundation for sustained growth.
Powerfleet (Nasdaq: AIOT) ha riportato risultati finanziari brillanti per il primo trimestre del 2025 a seguito della sua combinazione aziendale con MiX Telematics. Le entrate sono aumentate del 10,2% rispetto all’anno precedente, raggiungendo i 75,4 milioni di dollari, grazie a soluzioni focalizzate sulla sicurezza. Le entrate da prodotto sono aumentate del 29%, arrivando a 18,7 milioni di dollari, mentre le entrate da servizi sono cresciute del 5%, arrivando a 56,7 milioni di dollari. L'EBITDA rettificato è aumentato del 52,2%, raggiungendo 13,7 milioni di dollari, beneficiando della crescita del fatturato e delle prime sinergie sui costi.
L'azienda ha ottenuto risparmi annuali per 8,7 milioni di dollari entro la fine del secondo trimestre. Per l'intero anno 2025, Powerfleet prevede che le entrate supereranno i 300 milioni di dollari e che l'EBITDA rettificato supererà i 60 milioni di dollari. Il successo della strategia di integrazione è evidente nella performance finanziaria, ponendo una solida base per una crescita sostenuta.
Powerfleet (Nasdaq: AIOT) reportó resultados financieros sólidos para el primer trimestre de 2025 tras su combinación empresarial con MiX Telematics. Los ingresos crecieron un 10.2% interanual, alcanzando los 75.4 millones de dólares, impulsados por soluciones centradas en la seguridad. Los ingresos por productos aumentaron un 29%, alcanzando los 18.7 millones de dólares, mientras que los ingresos por servicios incrementaron un 5%, llegándose a 56.7 millones de dólares. El EBITDA ajustado se disparó un 52.2%, llegando a 13.7 millones de dólares, beneficiándose del crecimiento de la línea superior y de las sinergias de costos iniciales.
La empresa aseguró ahorros anuales de 8.7 millones de dólares para finales del segundo trimestre. Para el año completo de 2025, Powerfleet espera que los ingresos superen los 300 millones de dólares y que el EBITDA ajustado sobrepase los 60 millones de dólares. El éxito de la estrategia de integración es evidente en el rendimiento financiero, estableciendo una sólida base para un crecimiento sostenido.
파워플릿(Powerfleet, Nasdaq: AIOT)은 MiX Telematics와의 기업 결합 이후 2025년 1분기 강력한 재무 결과를 발표했습니다. 연간 10.2% 성장하여 7,540만 달러에 이르렀습니다, 이는 안전 중심 솔루션에 의해 추진되었습니다. 제품 수익은 29% 증가하여 1,870만 달러, 서비스 수익은 5% 증가하여 5,670만 달러에 이르렀습니다. 조정된 EBITDA는 52.2% 증가하여 1,370만 달러에 달했습니다, 이는 매출 성장과 초기 비용 시너지의 혜택을 보고 있습니다.
회사는 2분기 말까지 연간 870만 달러의 비용 절감을 확보했습니다. 2025년 전체 연도에 대해 파워플릿은 매출이 3억 달러를 초과하고 조정된 EBITDA가 6천만 달러를 초과할 것으로 예상하고 있습니다. 통합 전략의 성공은 재무 성과에서 뚜렷하게 나타나며 지속 가능한 성장의 확고한 기초를 다지고 있습니다.
Powerfleet (Nasdaq: AIOT) a annoncé d'excellents résultats financiers pour le premier trimestre 2025 suite à sa fusion avec MiX Telematics. Le chiffre d'affaires a augmenté de 10,2 % par rapport à l'année précédente pour atteindre 75,4 millions de dollars, soutenu par des solutions axées sur la sécurité. Le chiffre d'affaires des produits a grimpé de 29 % pour atteindre 18,7 millions de dollars, tandis que le chiffre d'affaires des services a augmenté de 5 % pour atteindre 56,7 millions de dollars. L'EBITDA ajusté a bondi de 52,2 % pour atteindre 13,7 millions de dollars, bénéficiant de la croissance du chiffre d'affaires et des premières synergies de coûts.
L'entreprise a sécurisé des économies annuelles de 8,7 millions de dollars d'ici la fin du deuxième trimestre. Pour l'année 2025, Powerfleet prévoit que le chiffre d'affaires dépasse les 300 millions de dollars et que l'EBITDA ajusté dépasse les 60 millions de dollars. Le succès de la stratégie d'intégration est évident dans la performance financière, établissant une base solide pour une croissance durable.
Powerfleet (Nasdaq: AIOT) hat nach der Unternehmenszusammenführung mit MiX Telematics starke Finanzzahlen für das erste Quartal 2025 veröffentlicht. Der Umsatz wuchs um 10,2% im Jahresvergleich auf 75,4 Millionen US-Dollar, angetrieben durch sicherheitsorientierte Lösungen. Die Produktumsätze stiegen um 29% auf 18,7 Millionen US-Dollar, während die Dienstleistungsumsätze um 5% auf 56,7 Millionen US-Dollar zunahmen. Das bereinigte EBITDA stieg um 52,2% auf 13,7 Millionen US-Dollar, profitierend von einem Umsatzwachstum und ersten Kostensynergien.
Das Unternehmen sicherte sich bis zum Ende des zweiten Quartals jährliche Einsparungen von 8,7 Millionen US-Dollar. Für das Gesamtjahr 2025 erwartet Powerfleet, dass der Umsatz 300 Millionen US-Dollar übersteigt und das bereinigte EBITDA 60 Millionen US-Dollar übertrifft. Der Erfolg der Integrationsstrategie zeigt sich in der Finanzperformance und legt eine solide Basis für nachhaltiges Wachstum.
- Revenue grew 10.2% year-over-year to $75.4 million
- Product revenue increased 29% to $18.7 million
- Adjusted EBITDA rose 52.2% to $13.7 million
- Secured $8.7 million in annual run-rate cost savings
- Full-year 2025 revenue guidance raised to exceed $300 million
- Adjusted EBITDA expected to surpass $60 million for 2025
- Reported net loss of $22.3 million, or $(0.21) per share
- Pro forma net debt increased by $4 million to $114 million
- Gross margin slightly decreased from 57.2% to 56.5% on an adjusted basis
- Experienced churn in legacy MiX customer base
Insights
Powerfleet's Q1 2025 results demonstrate strong performance post-MiX Telematics merger. Revenue grew
The $8.7 million in annual run-rate savings is impressive, progressing towards the
The reiterated guidance of
Powerfleet's Q1 results highlight the strategic benefits of the MiX Telematics merger. The Unity ecosystem and AI-driven platforms are differentiating factors in the rapidly evolving telematics market. The
The focus on scale and innovation is important as the industry transforms. Powerfleet's ability to leverage advanced AI and next-gen data capabilities positions them well against competitors. However, the company must navigate challenges like customer churn and regional pressures effectively.
The targeted investments in go-to-market strategies and expansion of the sales force by
Focused execution following the business combination with MiX Telematics evidenced by annual revenue and AEBITDA growth of +
Revenue Grows
Cost synergy traction with
FIRST QUARTER 2025 HIGHLIGHTS
- Total revenue was
$75.4 million 10.2% year-over-year, driven by the strength of our safety-centric product solutions.
- Product revenue rose by
29% year-over-year to$18.7 million 7% expansion in product gross margin.
- Excluding the impact of non-cash charges from the amortization of acquisition-related intangibles, gross profit increased by
$3.5 million 9.0% .
- Adjusted EBITDA, a non-GAAP metric, totaled
$13.7 million 52.2% increase year-over-year, driven by strong topline performance and the realization of initial cost synergies.
MANAGEMENT COMMENTARY
"I'm incredibly proud of the traction we've gained and the significant progress our team has made following the close of the MiX Telematics transaction in early April", said CEO Steve Towe. "The successful execution of our integration strategy is already evident in our strong financial performance this quarter, with a
"Our strategic rationale behind the MiX transaction was clear: securing scale is critical to distinguishing our combined business from competitors and aligning with market leaders as the core telematics industry rapidly transforms. By leveraging our Unity ecosystem's advanced AI platforms and next-generation data capabilities, we are poised to thrive in a market that increasingly values innovation and agility."
"We are also off to a strong start in achieving our cost synergy commitments, securing
FIRST QUARTER 2025 FINANCIAL RESULTS
Total revenue for the quarter increased by
Service revenue grew by
Combined gross margin of
Operating expenses for the quarter totaled
The company reported a net loss attributable to common stockholders of
Adjusted EBITDA increased by
The company ended the quarter with net debt of
FULL-YEAR 2025 FINANCIAL OUTLOOK
The company is reiterating its updated guidance from the August 6th fireside chat. Full-year 2025 revenue is expected to exceed
INVESTOR CONFERENCE CALL
As previously announced, Powerfleet will hold a conference call on Thursday, August 22, 2024, at 8:30 a.m. Eastern time (5:30 a.m. Pacific time) to discuss results for the quarter ended June 30, 2024.
Management will make prepared remarks followed by a question-and-answer session.
Date: Thursday, August 22, 2024
Time: 8:30 a.m. Eastern time (5:30 a.m. Pacific time)
Toll Free: 888-506-0062
International: 973-528-0011
Participant Access Code: 263975
The conference call will be broadcast simultaneously and available for replay here and via the investor section of the company's website at ir.powerfleet.com.
NON-GAAP FINANCIAL MEASURES
To supplement its financial statements presented in accordance with Generally Accepted Accounting Principles (GAAP), Powerfleet provides certain non-GAAP measures of financial performance. These non-GAAP measures include adjusted EBITDA, adjusted gross margin, adjusted operating expenses and adjusted earnings per share. Reference to these non-GAAP measures should be considered in addition to results prepared under current accounting standards, but are not a substitute for, or superior to, GAAP results. These non-GAAP measures are provided to enhance investors' overall understanding of Powerfleet's current financial performance. Specifically, Powerfleet believes the non-GAAP measures provide useful information to both management and investors by excluding certain expenses, gains and losses and fluctuations in currency rates that may not be indicative of its core operating results and business outlook. These non-GAAP measures are not measures of financial performance or liquidity under GAAP and, accordingly, should not be considered as an alternative to net income, gross margin, cash flow from operating activities or earnings per share as an indicator of operating performance or liquidity. Because Powerfleet's method for calculating the non-GAAP measures may differ from other companies' methods, the non-GAAP measures may not be comparable to similarly titled measures reported by other companies. Reconciliation of all non-GAAP measures included in this press release to the most directly comparable GAAP measures can be found in the financial tables included in this press release.
ABOUT POWERFLEET
Powerfleet (Nasdaq: AIOT; JSE: PWR; TASE: PWFL) is a global leader in the artificial intelligence of things (AIoT) software-as-a-service (SaaS) mobile asset industry. With more than 30 years of experience, Powerfleet unifies business operations through the ingestion, harmonization, and integration of data, irrespective of source, and delivers actionable insights to help companies save lives, time, and money. Powerfleet's ethos transcends our data ecosystem and commitment to innovation; our people-centric approach empowers our customers to realize impactful and sustained business improvement. The company is headquartered in
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of federal securities laws. Powerfleet's actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Forward-looking statements may be identified by words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "continue," and similar expressions.
These forward-looking statements include, without limitation, our expectations with respect to its beliefs, plans, goals, objectives, expectations, anticipations, assumptions, estimates, intentions and future performance, as well as anticipated financial impacts of our transaction with MiX Telematics. Forward-looking statements involve significant known and unknown risks, uncertainties and other factors, which may cause their actual results, performance or achievements to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. Most of these factors are outside our control and are difficult to predict. The risks and uncertainties referred to above include, but are not limited to, risks related to: (i) future economic and business conditions, including the conflict between
The forward-looking statements included in this press release are made only as of the date of this press release, and except as otherwise required by applicable securities law, we assume no obligation, nor do we intend to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.
Powerfleet Investor Contacts
Carolyn Capaccio and Jody Burfening
LHA Investor Relations
AIOTIRTeam@lhai.com
Powerfleet Media Contact
Andrea Hayton
ahayton@powerfleet.com
+1 (610) 401-1999
POWERFLEET, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Operations (In thousands, except per share data) | |||
Three Months Ended June 30, | |||
2023 | 2024 | ||
Pro Forma | Consolidated | ||
Revenues: | |||
Products | $ 14,523 | $ 18,738 | |
Services | 53,920 | 56,692 | |
Total revenues | 68,443 | 75,430 | |
Cost of revenues: | |||
Cost of products | 10,931 | 12,751 | |
Cost of services | 18,381 | 23,031 | |
Total cost of revenues | 29,312 | 35,782 | |
Gross profit | 39,131 | 39,648 | |
Operating expenses: | |||
Selling, general and administrative expenses | 34,575 | 54,782 | |
Research and development expenses | 3,565 | 3,101 | |
Total operating expenses | 38,140 | 57,883 | |
Gain/(loss) from operations | 991 | (18,235) | |
Interest income | 291 | 304 | |
Interest expense | (676) | (2,691) | |
Bargain purchase - Movingdots | 283 | — | |
Other income, net | (709) | (624) | |
Net gain/(loss) before income taxes | 180 | (21,246) | |
Income tax expense | (1,836) | (1,053) | |
Net loss before non-controlling interest | (1,656) | (22,299) | |
Non-controlling interest | (6) | (13) | |
Net loss | (1,662) | (22,312) | |
Accretion of preferred stock | (1,772) | — | |
Preferred stock dividend | (1,128) | (25) | |
Net loss attributable to common stockholders | $ (4,562) | $ (22,337) | |
Net loss per share attributable to common stockholders - basic and diluted | $ (0.04) | $ (0.21) | |
Weighted average common shares outstanding - basic and diluted | 106,390 | 107,136 | |
POWERFLEET, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (In thousands, except per share data) | ||||
March 31, 2024 | June 30, 2024 | |||
Pro Forma | Consolidated | |||
ASSETS | ||||
Current assets: | ||||
Cash and cash equivalents | $ 51,091 | $ 30,242 | ||
Restricted cash | 86,104 | 1,151 | ||
Accounts receivables | 55,008 | 60,132 | ||
Inventory, net | 25,800 | 25,832 | ||
Deferred costs - current | 42 | 24 | ||
Prepaid expenses and other current assets | 17,784 | 16,498 | ||
Total current assets | 235,829 | 133,879 | ||
Fixed assets, net | 48,306 | 49,705 | ||
Goodwill | 121,713 | 300,775 | ||
Intangible assets, net | 40,444 | 170,093 | ||
Right-of-use asset | 11,222 | 10,722 | ||
Severance payable fund | 3,796 | 3,760 | ||
Deferred tax asset | 3,874 | 3,544 | ||
Other assets | 19,090 | 12,435 | ||
Total assets | $ 484,274 | $ 684,913 | ||
LIABILITIES | ||||
Current liabilities: | ||||
Short-term bank debt and current maturities of long-term debt | $ 22,109 | $ 27,604 | ||
Accounts payable and accrued expenses | 60,763 | 68,771 | ||
Deferred revenue - current | 12,236 | 10,019 | ||
Lease liability - current | 2,648 | 2,441 | ||
Contingent consideration | — | — | ||
Total current liabilities | 97,756 | 108,835 | ||
Long-term debt - less current maturities | 113,810 | 111,957 | ||
Deferred revenue - less current portion | 4,892 | 4,825 | ||
Lease liability - less current portion | 8,773 | 8,555 | ||
Accrued severance payable | 4,597 | 4,533 | ||
Deferred tax liability | 18,669 | 52,645 | ||
Other long-term liabilities | 2,980 | 3,015 | ||
Total liabilities | 251,477 | 294,365 | ||
Convertible redeemable preferred stock: | 90,273 | — | ||
STOCKHOLDERS' EQUITY | ||||
Preferred stock | — | — | ||
Common stock | 63,842 | 1,096 | ||
Additional paid-in capital | 200,218 | 578,514 | ||
Accumulated deficit | (78,516) | (177,108) | ||
Accumulated other comprehensive loss | (17,133) | (567) | ||
Treasury stock | (25,997) | (11,518) | ||
Total stockholders' equity | 142,414 | 390,417 | ||
Non-controlling interest | 110 | 131 | ||
Total equity | 142,524 | 390,548 | ||
Total liabilities, convertible redeemable preferred stock, and | $ 484,274 | $ 684,913 | ||
POWERFLEET, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (In thousands) | ||||
Three Months Ended June 30, | ||||
2023 | 2024 | |||
Pro Forma | Consolidated | |||
Cash flows from operating activities | ||||
Net loss | $ (1,662) | $ (22,312) | ||
Adjustments to reconcile net loss to cash used in operating activities: | ||||
Non-controlling interest | 6 | 13 | ||
Gain on bargain purchase | (283) | — | ||
Inventory reserve | 443 | 257 | ||
Stock based compensation expense | 1,092 | 5,929 | ||
Depreciation and amortization | 6,334 | 10,335 | ||
Right-of-use assets, non-cash lease expense | 660 | 760 | ||
Bad debts expense | 1,416 | 1,993 | ||
Deferred income taxes | 1,990 | 1,021 | ||
Shares issued for transaction bonuses | — | 891 | ||
Other non-cash items | 1,760 | 481 | ||
Changes in operating assets and liabilities: | ||||
Accounts receivables | (4,008) | (6,973) | ||
Inventories | 984 | (624) | ||
Prepaid expenses and other current assets | (38) | (1,518) | ||
Deferred costs | (1,677) | (1,789) | ||
Deferred revenue | 58 | (142) | ||
Accounts payable and accrued expenses | (1,991) | 4,993 | ||
Lease liabilities | (650) | (927) | ||
Accrued severance payable, net | 88 | (2) | ||
Net cash generated by/(used in) operating activities | 4,522 | (7,615) | ||
Cash flows from investing activities | ||||
Acquisition, net of cash assumed | — | 27,531 | ||
Capitalized software development costs | (2,352) | (2,308) | ||
Capital expenditures | (4,582) | (5,586) | ||
Net cash (used in)/provided by investing activities | (6,934) | 19,637 | ||
Cash flows from financing activities | ||||
Repayment of long-term debt | (1,875) | (493) | ||
Short-term bank debt, net | 2,800 | 4,161 | ||
Purchase of treasury stock upon vesting of restricted stock | (4) | (2,836) | ||
Payment of preferred stock dividend and redemption of preferred stock | (1,128) | (90,298) | ||
Proceeds from exercise of stock options, net | 36 | — | ||
Cash paid on dividends to affiliates | (1,331) | (4) | ||
Net cash used in financing activities | (1,502) | (89,470) | ||
Effect of foreign exchange rate changes on cash and cash equivalents | (1,930) | (824) | ||
Net decrease in cash and cash equivalents, and restricted cash | (5,844) | (78,272) | ||
Cash and cash equivalents, and restricted cash at beginning of the period | 55,746 | 109,664 | ||
Cash and cash equivalents, and restricted cash at end of the period | $ 49,902 | $ 31,393 | ||
Reconciliation of cash, cash equivalents, and restricted cash, | ||||
Cash and cash equivalents | 54,656 | 24,354 | ||
Restricted cash | 1,090 | 85,310 | ||
Cash, cash equivalents, and restricted cash, beginning of the period | $ 55,746 | $ 109,664 | ||
Reconciliation of cash, cash equivalents, and restricted cash, end of | ||||
Cash and cash equivalents | 48,830 | 30,242 | ||
Restricted cash | 1,072 | 1,151 | ||
Cash, cash equivalents, and restricted cash, end of the period | $ 49,902 | $ 31,393 | ||
Supplemental disclosure of cash flow information: | ||||
Cash paid for: | ||||
Taxes | $ 273 | $ 41 | ||
Interest | $ 356 | $ 3,057 | ||
Noncash investing and financing activities:
| ||||
Common stock issued for transaction bonus | $ — | $ 9 | ||
POWERFLEET, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO ADJUSTED EBITDA FINANCIAL MEASURES (In thousands) | |||
Three Months Ended June 30, | |||
2023 | 2024 | ||
Pro Forma | Consolidated | ||
Net loss attributable to common stockholders | $ (4,562) | $ (22,337) | |
Non-controlling interest | 6 | 13 | |
Preferred stock dividend and accretion | 2,901 | 25 | |
Interest expense | 690 | 2,916 | |
Other expense, net | — | 1 | |
Income tax expense | 1,836 | 1,053 | |
Depreciation and amortization | 6,334 | 10,335 | |
Stock-based compensation | 1,092 | 5,929 | |
Foreign Currency Translation | 368 | 108 | |
Restructuring Related Expenses | 448 | 1,198 | |
Gain on Bargain purchase - Movingdots | (283) | — | |
Net profit on fixed assets | (4) | — | |
Contingent consideration remeasurement | (24) | — | |
Acquisition related expenses | 223 | 14,494 | |
Adjusted EBITDA | $ 9,025 | $ 13,735 | |
POWERFLEET, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP NET INCOME (LOSS) FINANCIAL MEASURES (In thousands) | |||
Three Months Ended June 30, | |||
2023 | 2024 | ||
Pro Forma | Consolidated | ||
Net loss | $ (1,662) | $ (22,312) | |
Incremental Intangible assets amortization expense as a result of MiX | — | 2,995 | |
Stock-based compensation (non-recurring/accelerated cost) | — | 4,693 | |
Foreign currency translation | 368 | 108 | |
Income tax effect of net foreign exchange gains/(losses) | 425 | (747) | |
Restructuring related expenses | 448 | 1,198 | |
Income tax effect of restructuring costs | (5) | (103) | |
Acquisition related expenses | 223 | 14,494 | |
Non-GAAP net (loss)/income | $ (203) | $ 326 | |
Weighted average shares outstanding | 106,390 | $ 107,136 | |
Non-GAAP net (loss)/income per share - basic | (0.002) | $ 0.003 | |
POWERFLEET, INC. AND SUBSIDIARIES ADJUSTED GROSS PROFIT MARGINS (In thousands) | |||
Three Months Ended June 30, | |||
2023 | 2024 | ||
Pro Forma | Consolidated | ||
Revenues: | |||
Products | $ 14,523 | $ 18,738 | |
Services | 53,920 | 56,692 | |
Total revenues | 68,443 | 75,430 | |
Cost of revenues: | |||
Cost of products | 10,931 | 12,751 | |
Cost of services | 18,381 | 23,031 | |
Total cost of revenues | 29,312 | 35,782 | |
Gross profit | 39,131 | 39,648 | |
Product Margin | 24.7 % | 32.0 % | |
Service Margin | 65.9 % | 59.4 % | |
Total Gross profit margin | 57.2 % | 52.6 % | |
Incremental Intangible assets amortization expense as a result of MiX | — | 2,995 | |
Product Margin | 24.7 % | 32.0 % | |
Service Margin | 65.9 % | 64.7 % | |
Adjusted Total Gross profit margin | 57.2 % | 56.5 % | |
POWERFLEET, INC. AND SUBSIDIARIES ADJUSTED OPERATING EXPENSES (In thousands) | |||
Three Months Ended June 30, | |||
2023 | 2024 | ||
Pro Forma | Consolidated | ||
Total operating expenses | $ 38,140 | $ 57,883 | |
Adjusted for once-off costs | |||
Acquisition related expenses | 223 | 14,494 | |
Stock-based compensation (non-recurring/accelerated cost) | — | 4,693 | |
Restructuring Related Expenses | 448 | 1,198 | |
$ 671 | $ 20,385 | ||
Adjusted operating expenses | $ 37,469 | $ 37,498 | |
POWERFLEET, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Operations (In thousands, except per share data) | |||
Year Ended March 31, | |||
2023 | 2024 | ||
Pro Forma | Consolidated | ||
Revenues: | |||
Products | $ 70,397 | $ 67,665 | |
Services | 210,072 | 219,239 | |
Total revenues | 280,469 | 286,904 | |
Cost of revenues: | |||
Cost of products | 51,143 | 48,316 | |
Cost of services | 71,486 | 79,636 | |
Total cost of revenues | 122,629 | 127,952 | |
Gross profit | 157,840 | 158,952 | |
Operating expenses: | |||
Selling, general and administrative expenses | 138,566 | 151,839 | |
Research and development expenses | 13,049 | 14,793 | |
Total operating expenses | 151,615 | 166,632 | |
Gain/(loss) from operations | 6,225 | (7,680) | |
Interest income | 1,241 | 1,480 | |
Interest expense | (689) | (4,521) | |
Bargain purchase - Movingdots | 7,234 | 1,800 | |
Other income/(expense), net | 1,622 | (266) | |
Net gain/(loss) before income taxes | 15,633 | (9,187) | |
Income tax expense | (9,749) | (7,014) | |
Net gain/(loss) before non-controlling interest | 5,884 | (16,201) | |
Non-controlling interest | 2 | (50) | |
Net gain/(loss) | 5,886 | (16,251) | |
Accretion of preferred stock | (6,210) | (15,480) | |
Preferred stock dividend | (4,310) | (4,514) | |
Net loss attributable to common stockholders | $ (4,634) | $ (36,245) | |
Net loss per share attributable to common stockholders - basic and diluted | $ (0.04) | $ (0.34) | |
Weighted average common shares outstanding - basic and diluted | 106,073 | 106,894 | |
POWERFLEET, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP NET INCOME (LOSS) FINANCIAL MEASURES (In thousands) | |||
Year Ended March 31, | |||
2023 | 2024 | ||
Pro Forma | Consolidated | ||
Net loss attributable to common stockholders | $ (4,634) | $ (36,245) | |
Non-controlling interest | (2) | 49 | |
Preferred stock dividend and accretion | 10,520 | 19,995 | |
Interest expense | 947 | 3,192 | |
Other expense, net | 67 | 87 | |
Income tax expense | 9,749 | 7,014 | |
Depreciation and amortization | 24,072 | 29,548 | |
Stock-based compensation | 5,220 | 5,214 | |
Foreign Currency Translation | (3,191) | 1,493 | |
Restructuring Related Expenses | 2,445 | 1,065 | |
Gain on Bargain purchase - Movingdots | (7,234) | (1,800) | |
Impairment of long-lived assets | 104 | 139 | |
Net profit on sale of fixed assets | (25) | (115) | |
Non-recurring transitional service agreement costs | — | 482 | |
Contingent consideration remeasurement | (504) | (1,299) | |
Acquisition related expenses | 1101 | 14,313 | |
Adjusted EBITDA | $ 38,635 | $ 43,132 | |
POWERFLEET, INC, AND MiX TELEMATICS Condensed Consolidated Statements of Operations (In thousands, except per share data) | |||||||
Three Months Ended June 30, 2023 | |||||||
Powerfleet Inc | MiX Telematics | Adjustments to | Pro Forma | ||||
Revenues: | |||||||
Products | $ 11,084 | $ 4,140 | $ (701) | $ 14,523 | |||
Services | 21,008 | 32,211 | 701 | 53,920 | |||
Total revenues | 32,092 | 36,351 | — | 68,443 | |||
Cost of revenues: | |||||||
Cost of products | 8,550 | 3,025 | (644) | 10,931 | |||
Cost of services | 7,524 | 10,213 | 644 | 18,381 | |||
Total cost of revenues | 16,074 | 13,238 | — | 29,312 | |||
Gross profit | 16,018 | 23,113 | — | 39,131 | |||
Operating expenses: | |||||||
Selling, general and administrative expenses | 17,198 | 17,377 | — | 34,575 | |||
Research and development expenses | 2,221 | 1,344 | — | 3,565 | |||
Total operating expenses | 19,419 | 18,721 | — | 38,140 | |||
(Loss)/gain from operations | (3,401) | 4,392 | — | 991 | |||
Interest income | 22 | 269 | — | 291 | |||
Interest expense | (174) | (502) | — | (676) | |||
Bargain purchase - Movingdots | 283 | — | — | 283 | |||
Other expense, net | — | (709) | — | (709) | |||
Net (loss)/gain before income taxes | (3,270) | 3,450 | — | 180 | |||
Income tax benefit/(expense) | 6 | (1,842) | — | (1,836) | |||
Net (loss)/profit before non-controlling interest | (3,264) | 1,608 | — | (1,656) | |||
Non-controlling interest | (6) | — | — | (6) | |||
Net (loss)/profit | (3,270) | 1,608 | — | (1,662) | |||
Accretion of preferred stock | (1,772) | — | — | (1,772) | |||
Preferred stock dividend | (1,128) | — | — | (1,128) | |||
Net (loss)/profit attributable to common stockholders | $ (6,170) | $ 1,608 | $ — | $ (4,562) | |||
Net (loss)/profit per share attributable to | $ (0.17) | $ 0.02 | $ (0.04) | ||||
Weighted average common shares outstanding - | 35,605 | 70,785 | 106,390 | ||||
POWERFLEET, INC, AND MiX TELEMATICS Condensed Consolidated Balance Sheets (In thousands) | ||||||
March 31, 2024 | ||||||
Powerfleet Inc | MiX Telematics | Pro Forma | ||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ 24,354 | $ 26,737 | $ 51,091 | |||
Restricted cash | 85,310 | 794 | 86,104 | |||
Accounts receivables | 30,333 | 24,675 | 55,008 | |||
Inventory, net | 21,658 | 4,142 | 25,800 | |||
Deferred costs - current | 42 | — | 42 | |||
Prepaid expenses and other current assets | 8,091 | 9,693 | 17,784 | |||
Total current assets | 169,788 | 66,041 | 235,829 | |||
Fixed assets, net | 12,719 | 35,587 | 48,306 | |||
Goodwill | 83,487 | 38,226 | 121,713 | |||
Intangible assets, net | 19,652 | 20,792 | 40,444 | |||
Right-of-use asset | 7,428 | 3,794 | 11,222 | |||
Severance payable fund | 3,796 | — | 3,796 | |||
Deferred tax asset | 2,781 | 1,093 | 3,874 | |||
Other assets | 9,029 | 10,061 | 19,090 | |||
Total assets | $ 308,680 | $ 175,594 | $ 484,274 | |||
LIABILITIES | ||||||
Current liabilities: | ||||||
Short-term bank debt and current maturities of long-term debt | $ 1,951 | $ 20,158 | $ 22,109 | |||
Accounts payable and accrued expenses | 34,008 | 26,755 | 60,763 | |||
Deferred revenue - current | 5,842 | 6,394 | 12,236 | |||
Lease liability - current | 1,789 | 859 | 2,648 | |||
Total current liabilities | 43,590 | 54,166 | 97,756 | |||
Long-term debt - less current maturities | 113,810 | — | 113,810 | |||
Deferred revenue - less current portion | 4,892 | — | 4,892 | |||
Lease liability - less current portion | 5,921 | 2,852 | 8,773 | |||
Accrued severance payable | 4,597 | — | 4,597 | |||
Deferred tax liability | 4,465 | 14,204 | 18,669 | |||
Other long-term liabilities | 2,496 | 484 | 2,980 | |||
Total liabilities | 179,771 | 71,706 | 251,477 | |||
Convertible redeemable preferred stock: | 90,273 | — | 90,273 | |||
STOCKHOLDERS' EQUITY | ||||||
Preferred stock | — | — | — | |||
Common stock | 387 | 63,455 | 63,842 | |||
Additional paid-in capital | 202,607 | (2,389) | 200,218 | |||
Accumulated deficit | (154,796) | 76,280 | (78,516) | |||
Accumulated other comprehensive loss | (985) | (16,148) | (17,133) | |||
Treasury stock | (8,682) | (17,315) | (25,997) | |||
Total stockholders' equity | 38,531 | 103,883 | 142,414 | |||
Non-controlling interest | 105 | 5 | 110 | |||
Total equity | 38,636 | 103,888 | 142,524 | |||
Total liabilities, convertible redeemable preferred stock, | $ 308,680 | $ 175,594 | $ 484,274 | |||
POWERFLEET INC, AND MiX TELEMATICS Condensed Consolidated Statements of Cash Flows (In thousands) | |||||||
Three Months Ended June 30, 2023 | |||||||
Powerfleet | MiX | Pro Forma | |||||
Cash flows from operating activities | |||||||
Net loss | $ (3,270) | $ 1,608 | $ (1,662) | ||||
Adjustments to reconcile net loss to cash used in operating activities: | $ — | ||||||
Non-controlling interest | 6 | — | 6 | ||||
Gain on bargain purchase | (283) | — | (283) | ||||
Inventory reserve | 373 | 70 | 443 | ||||
Stock based compensation expense | 852 | 240 | 1,092 | ||||
Depreciation and amortization | 2,322 | 4,012 | 6,334 | ||||
Right-of-use assets, non-cash lease expense | 660 | — | 660 | ||||
Bad debts expense | 598 | 818 | 1,416 | ||||
Deferred income taxes | (24) | 2,014 | 1,990 | ||||
Other non-cash items | 29 | 1,731 | 1,760 | ||||
Changes in operating assets and liabilities: | — | ||||||
Accounts receivables | (668) | (3,340) | (4,008) | ||||
Inventories | 389 | 595 | 984 | ||||
Prepaid expenses and other current assets | 344 | (382) | (38) | ||||
Deferred costs | 185 | (1,862) | (1,677) | ||||
Deferred revenue | 58 | — | 58 | ||||
Accounts payable and accrued expenses | (1,466) | (525) | (1,991) | ||||
Lease liabilities | (650) | — | (650) | ||||
Accrued severance payable, net | 88 | — | 88 | ||||
Net cash (used in)/provided by operating activities | (457) | 4,979 | 4,522 | ||||
Cash flows from investing activities | |||||||
Capitalized software development costs | (997) | (1,355) | (2,352) | ||||
Capital expenditures | (966) | (3,616) | (4,582) | ||||
Net cash used in investing activities | (1,963) | (4,971) | (6,934) | ||||
Cash flows from financing activities | |||||||
Repayment of long-term debt | (1,329) | (546) | (1,875) | ||||
Short-term bank debt, net | 2,737 | 63 | 2,800 | ||||
Purchase of treasury stock upon vesting of restricted stock | (4) | — | (4) | ||||
Payment of preferred stock dividend and redemption of preferred stock | (1,128) | — | (1,128) | ||||
Proceeds from exercise of stock options, net | 36 | — | 36 | ||||
Cash paid on dividends to affiliates | — | (1,331) | (1,331) | ||||
Net cash from/(used in) financing activities | 312 | (1,814) | (1,502) | ||||
Effect of foreign exchange rate changes on cash and cash equivalents | (943) | (987) | (1,930) | ||||
Net decrease in cash and cash equivalents, and restricted cash | (3,051) | (2,793) | (5,844) | ||||
Cash and cash equivalents, and restricted cash at beginning of the period | 25,089 | 30,657 | 55,746 | ||||
Cash and cash equivalents, and restricted cash at end of the period | $ 22,038 | $ 27,864 | $ 49,902 | ||||
Reconciliation of cash, cash equivalents, and restricted cash, beginning of the | |||||||
Cash and cash equivalents | 24,780 | 29,876 | 54,656 | ||||
Restricted cash | 309 | 781 | 1,090 | ||||
Cash, cash equivalents, and restricted cash, beginning of the period | $ 25,089 | $ 30,657 | $ 55,746 | ||||
Reconciliation of cash, cash equivalents, and restricted cash, end of the period | |||||||
Cash and cash equivalents | 21,729 | 27,101 | 48,830 | ||||
Restricted cash | 309 | 763 | 1,072 | ||||
Cash, cash equivalents, and restricted cash, end of the period | $ 22,038 | $ 27,864 | $ 49,902 | ||||
Supplemental disclosure of cash flow information: | |||||||
Cash paid for: | |||||||
Taxes | $ 101 | $ 172 | $ 273 | ||||
Interest | $ 238 | $ 118 | $ 356 | ||||
Noncash investing and financing activities:
| |||||||
Common stock issued for transaction bonus | $ — | $ — | $ — | ||||
POWERFLEET INC, AND MiX TELEMATICS RECONCILIATION OF GAAP TO ADJUSTED EBITDA FINANCIAL MEASURES (In thousands) | |||||
Three Months Ended June 30, 2023 | |||||
Powerfleet Inc. | MiX Telematics | Pro Forma | |||
Net loss attributable to common stockholders | $ (6,170) | $ 1,608 | $ (4,562) | ||
Non-controlling interest | 6 | — | 6 | ||
Preferred stock dividend and accretion | 2,901 | — | 2,901 | ||
Interest expense, net | 457 | 233 | 690 | ||
Income tax (benefit)/expense | (6) | 1,842 | 1,836 | ||
Depreciation and amortization | 2,322 | 4,012 | 6,334 | ||
Stock-based compensation | 852 | 240 | 1,092 | ||
Foreign Currency Translation | (362) | 730 | 368 | ||
Restructuring Related Expenses | 425 | 23 | 448 | ||
Gain on Bargain purchase - Movingdots | (283) | — | (283) | ||
Net profit on sale of fixed assets | — | (4) | (4) | ||
Contingent consideration remeasurement | — | (24) | (24) | ||
Acquisition related expenses | 223 | 0 | 223 | ||
Adjusted EBITDA | $ 365 | $ 8,660 | $ 9,025 | ||
POWERFLEET, INC. AND MIX TELEMATICS RECONCILIATION OF GAAP TO NON-GAAP NET INCOME (LOSS) FINANCIAL MEASURES (In thousands) | |||||
Three Months Ended June 30, 2023 | |||||
Powerfleet Inc. | MiX Telematics | Pro Forma | |||
Net (loss)/income | $ (3,270) | $ 1,608 | $ (1,662) | ||
Foreign currency translation | (362) | 730 | 368 | ||
Income tax effect of net foreign exchange (losses)/gains | — | 425 | 425 | ||
Restructuring related expenses | 425 | 23 | 448 | ||
Income tax effect of restructuring costs | — | (5) | (5) | ||
Acquisition related expenses | 223 | — | 223 | ||
Non-GAAP net (loss)/income | $ (2,984) | $ 2,781 | $ (203) | ||
Weighted average shares outstanding | 35,605 | 70,785 | 106,390 | ||
Non-GAAP net (loss)/income per share - basic | $ (0.084) | $ 0.039 | $ (0.002) | ||
POWERFLEET, INC, AND MiX TELEMATICS Condensed Consolidated Statements of Operations (In thousands, except per share data) | |||||||
Year Ended March 31, 2023 | |||||||
Powerfleet Inc | MiX Telematics | Adjustments to | Pro Forma | ||||
Revenues: | |||||||
Products | $ 54,934 | $ 18,337 | $ (2,874) | $ 70,397 | |||
Services | 80,542 | 126,656 | 2,874 | 210,072 | |||
Total revenues | 135,476 | 144,993 | — | 280,469 | |||
Cost of revenues: | |||||||
Cost of products | 39,660 | 14,054 | (2,571) | 51,143 | |||
Cost of services | 28,842 | 40,073 | 2,571 | 71,486 | |||
Total cost of revenues | 68,502 | 54,127 | — | 122,629 | |||
Gross profit | 66,974 | 90,866 | — | 157,840 | |||
Operating expenses: | |||||||
Selling, general and administrative expenses | 64,856 | 73,710 | — | 138,566 | |||
Research and development expenses | 7,458 | 5,591 | — | 13,049 | |||
Total operating expenses | 72,314 | 79,301 | — | 151,615 | |||
(Loss)/income from operations | (5,340) | 11,565 | — | 6,225 | |||
Interest income | 82 | 1,159 | — | 1,241 | |||
Interest expense | 757 | (1,446) | — | (689) | |||
Bargain purchase - Movingdots | 7,234 | — | — | 7,234 | |||
Other income, net | (67) | 1,689 | — | 1,622 | |||
Net income before income taxes | 2,666 | 12,967 | — | 15,633 | |||
Income tax expense | (1,304) | (8,445) | — | (9,749) | |||
Net loss before non-controlling interest | 1,362 | 4,522 | — | 5,884 | |||
Non-controlling interest | 2 | — | — | 2 | |||
Net income | 1,364 | 4,522 | — | 5,886 | |||
Accretion of preferred stock | (6,210) | — | — | (6,210) | |||
Preferred stock dividend | (4,310) | — | — | (4,310) | |||
Net (loss)/income attributable to common stockholders | $ (9,156) | $ 4,522 | $ — | $ (4,634) | |||
Net (loss)/income per share attributable to | $ (0.26) | $ 0.06 | $ — | $ (0.04) | |||
Weighted average common shares outstanding - | 35,548 | 70,525 | — | 106,073 | |||
POWERFLEET, INC, AND MiX TELEMATICS Condensed Consolidated Statements of Operations (In thousands, except per share data) | |||||||
Year Ended March 31, 2024 | |||||||
Powerfleet Inc | MiX Telematics | Adjustments to | Pro Forma | ||||
Revenues: | |||||||
Products | $ 49,313 | $ 21,600 | $ (3,248) | $ 67,665 | |||
Services | 85,311 | 130,680 | 3,248 | 219,239 | |||
Total revenues | 134,624 | 152,280 | — | 286,904 | |||
Cost of revenues: | |||||||
Cost of products | 36,916 | 14,628 | (3,228) | 48,316 | |||
Cost of services | 31,003 | 45,405 | 3,228 | 79,636 | |||
Total cost of revenues | 67,919 | 60,033 | — | 127,952 | |||
Gross profit | 66,705 | 92,247 | — | 158,952 | |||
Operating expenses: | |||||||
Selling, general and administrative expenses | 76,144 | 75,695 | — | 151,839 | |||
Research and development expenses | 8,675 | 6,118 | — | 14,793 | |||
Total operating expenses | 84,819 | 81,813 | — | 166,632 | |||
(Loss)/income from operations | (18,114) | 10,434 | — | (7,680) | |||
Interest income | 338 | 1,142 | — | 1,480 | |||
Interest expense | (2,174) | (2,347) | — | (4,521) | |||
Bargain purchase - Movingdots | 1,800 | — | — | 1,800 | |||
Other income, net | (87) | (179) | — | (266) | |||
Net (loss)/income before income taxes | (18,237) | 9,050 | — | (9,187) | |||
Income tax expense | (549) | (6,465) | — | (7,014) | |||
Net (loss)/income before non-controlling interest | (18,786) | 2,585 | — | (16,201) | |||
Non-controlling interest | (50) | — | — | (50) | |||
Net (loss)/income | (18,836) | 2,585 | — | (16,251) | |||
Accretion of preferred stock | (15,480) | — | — | (15,480) | |||
Preferred stock dividend | (4,514) | — | — | (4,514) | |||
Net (loss)/income attributable to common stockholders | $ (38,830) | $ 2,585 | $ — | $ (36,245) | |||
Net (loss)/income per share attributable to | $ (1.08) | $ 0.04 | $ (0.34) | ||||
Weighted average common shares outstanding - | 35,813 | 71,081 | 106,894 | ||||
POWERFLEET INC, AND MiX TELEMATICS RECONCILIATION OF GAAP TO ADJUSTED EBITDA FINANCIAL MEASURES (In thousands) | |||||
Year Ended March 31, 2023 | |||||
Powerfleet Inc. | MiX Telematics | Pro Forma | |||
Net loss attributable to common stockholders | $ (9,156) | $ 4,522 | $ (4,634) | ||
Non-controlling interest | (2) | — | (2) | ||
Preferred stock dividend and accretion | 10,520 | — | 10,520 | ||
Interest expense, net | 660 | 287 | 947 | ||
Other expense, net | 67 | — | 67 | ||
Income tax expense | 1,304 | 8,445 | 9,749 | ||
Depreciation and amortization | 8,463 | 15,609 | 24,072 | ||
Stock-based compensation | 4,718 | 502 | 5,220 | ||
Foreign Currency Translation | (2,081) | (1,110) | (3,191) | ||
Restructuring Related Expenses | 1,423 | 1,022 | 2,445 | ||
Gain on Bargain purchase - Movingdots | (7,234) | — | (7,234) | ||
Impairment of long-lived assets | — | 104 | 104 | ||
Net profit on sale of fixed assets | — | (25) | (25) | ||
Contingent consideration remeasurement | — | (504) | (504) | ||
Acquisition related expenses | 317 | 784 | 1,101 | ||
Adjusted EBITDA | $ 8,999 | $ 29,636 | $ 38,635 | ||
Year Ended March 31, 2024 | |||||
Powerfleet Inc. | MiX Telematics | Pro Forma | |||
Net loss attributable to common stockholders | $ (38,830) | $ 2,585 | $ (36,245) | ||
Non-controlling interest | 49 | — | 49 | ||
Preferred stock dividend and accretion | 19,995 | — | 19,995 | ||
Interest expense, net | 1,987 | 1,205 | 3,192 | ||
Other expense, net | 87 | — | 87 | ||
Income tax expense | 549 | 6,465 | 7,014 | ||
Depreciation and amortization | 9,098 | 20,450 | 29,548 | ||
Stock-based compensation | 4,104 | 1,110 | 5,214 | ||
Foreign Currency Translation | (248) | 1,741 | 1,493 | ||
Restructuring Related Expenses | 1,035 | 30 | 1,065 | ||
Gain on Bargain purchase - Movingdots | (1,800) | — | (1,800) | ||
Impairment of long-lived assets | — | 139 | 139 | ||
Net profit on sale of fixed assets | — | (115) | (115) | ||
Non-recurring transitional service agreement costs | — | 482 | 482 | ||
Contingent consideration remeasurement | — | (1,299) | (1,299) | ||
Acquisition related expenses | 11218 | 3095 | 14,313 | ||
Adjusted EBITDA | $ 7,244 | $ 35,888 | $ 43,132 | ||
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SOURCE Powerfleet
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