Track Group Reports 1st Quarter Fiscal 2025 Financial Results
Track Group (OTCQB: TRCK) reported Q1 FY25 financial results with mixed performance. Total revenue decreased 3.3% to $8.7 million compared to $9.0 million in Q1 FY24, primarily due to reduced monitoring assignments in Michigan, Virginia, and the sold Chilean subsidiary. However, this was partially offset by increased assignments in Illinois, Puerto Rico, and the Bahamas.
The company showed improvements in several metrics: gross profit increased 5.2% to $4.4 million, operating income improved to $0.1 million from a previous loss of ($0.2M), and Adjusted EBITDA rose to $1.2 million with a margin of 14.4%. Despite these operational improvements, the company reported a net loss of ($2.0M) compared to net income of $461 in the prior year.
For FY25, Track Group projects revenue between $35-36 million with an Adjusted EBITDA margin of 14-15%.
Track Group (OTCQB: TRCK) ha riportato i risultati finanziari del primo trimestre dell'anno fiscale 2025 con una performance mista. Il fatturato totale è diminuito del 3,3%, scendendo a 8,7 milioni di dollari rispetto a 9,0 milioni di dollari nel primo trimestre dell'anno fiscale 2024, principalmente a causa della riduzione degli incarichi di monitoraggio in Michigan, Virginia e della vendita della filiale cilena. Tuttavia, questo è stato parzialmente compensato da un aumento degli incarichi in Illinois, Porto Rico e le Bahamas.
La società ha mostrato miglioramenti in diversi parametri: il profitto lordo è aumentato del 5,2% a 4,4 milioni di dollari, il reddito operativo è migliorato a 0,1 milioni di dollari rispetto a una perdita precedente di (0,2 milioni di dollari), e l'EBITDA rettificato è salito a 1,2 milioni di dollari con un margine del 14,4%. Nonostante questi miglioramenti operativi, la società ha registrato una perdita netta di (2,0 milioni di dollari) rispetto a un reddito netto di 461 dollari nell'anno precedente.
Per l'anno fiscale 2025, Track Group prevede un fatturato compreso tra 35-36 milioni di dollari con un margine EBITDA rettificato del 14-15%.
Track Group (OTCQB: TRCK) reportó resultados financieros para el primer trimestre del año fiscal 2025 con un desempeño mixto. Los ingresos totales disminuyeron un 3.3% a 8.7 millones de dólares en comparación con 9.0 millones de dólares en el primer trimestre del año fiscal 2024, principalmente debido a una reducción en las asignaciones de monitoreo en Michigan, Virginia y la venta de la subsidiaria chilena. Sin embargo, esto fue parcialmente compensado por un incremento en las asignaciones en Illinois, Puerto Rico y las Bahamas.
La empresa mostró mejoras en varios indicadores: la utilidad bruta aumentó un 5.2% a 4.4 millones de dólares, el ingreso operativo mejoró a 0.1 millones de dólares desde una pérdida anterior de (0.2 millones de dólares), y el EBITDA ajustado subió a 1.2 millones de dólares con un margen del 14.4%. A pesar de estas mejoras operativas, la compañía reportó una pérdida neta de (2.0 millones de dólares) en comparación con una ganancia neta de 461 dólares en el año anterior.
Para el año fiscal 2025, Track Group proyecta ingresos entre 35-36 millones de dólares con un margen de EBITDA ajustado del 14-15%.
트랙 그룹 (OTCQB: TRCK)은 2025 회계연도 1분기 재무 결과를 발표하며 혼합된 성과를 보였습니다. 총 수익은 3.3% 감소하여 870만 달러로, 2024 회계연도 1분기의 900만 달러와 비교됩니다. 이는 주로 미시간, 버지니아에서의 모니터링 업무 감소 및 칠레 자회사 매각에 기인합니다. 그러나 이는 일리노이, 푸에르토리코, 바하마에서의 업무 증가로 부분적으로 상쇄되었습니다.
회사는 여러 지표에서 개선을 보였습니다: 총 이익은 5.2% 증가하여 440만 달러에 이르었고, 운영 이익은 이전의 (20만 달러) 손실에서 10만 달러로 개선되었습니다. 조정된 EBITDA는 120만 달러로 증가하였으며, 마진은 14.4%에 달했습니다. 이러한 운영 개선에도 불구하고, 회사는 작년의 461달러 순이익에 비해 (200만 달러)의 순손실을 보고했습니다.
2025 회계연도에 대해 트랙 그룹은 수익이 3500-3600만 달러 사이가 될 것으로 예상하며, 조정된 EBITDA 마진은 14-15%입니다.
Track Group (OTCQB: TRCK) a annoncé les résultats financiers du premier trimestre de l'exercice 2025 avec des performances contrastées. Le chiffre d'affaires total a diminué de 3,3% pour atteindre 8,7 millions de dollars par rapport à 9,0 millions de dollars au premier trimestre de l'exercice 2024, principalement en raison de la réduction des missions de surveillance dans le Michigan, la Virginie et la vente de la filiale chilienne. Cependant, cela a été partiellement compensé par une augmentation des missions dans l'Illinois, à Porto Rico et aux Bahamas.
La société a montré des améliorations dans plusieurs indicateurs : le bénéfice brut a augmenté de 5,2% pour atteindre 4,4 millions de dollars, le résultat d'exploitation s'est amélioré à 0,1 million de dollars par rapport à une perte précédente de (0,2 million de dollars), et l'EBITDA ajusté a grimpé à 1,2 million de dollars avec une marge de 14,4%. Malgré ces améliorations opérationnelles, la société a enregistré une perte nette de (2,0 millions de dollars) par rapport à un bénéfice net de 461 dollars l'année précédente.
Pour l'exercice 2025, Track Group prévoit un chiffre d'affaires compris entre 35-36 millions de dollars avec une marge d'EBITDA ajusté de 14-15%.
Track Group (OTCQB: TRCK) hat die Finanzergebnisse für das erste Quartal des Geschäftsjahres 2025 veröffentlicht, die gemischte Leistungen zeigen. Der Gesamtumsatz sank um 3,3% auf 8,7 Millionen USD im Vergleich zu 9,0 Millionen USD im ersten Quartal des Geschäftsjahres 2024, hauptsächlich aufgrund der reduzierten Überwachungsaufträge in Michigan, Virginia und der verkauften chilenischen Tochtergesellschaft. Dies wurde jedoch teilweise durch steigende Aufträge in Illinois, Puerto Rico und den Bahamas wettgemacht.
Das Unternehmen zeigte Verbesserungen in mehreren Kennzahlen: Der Bruttogewinn stieg um 5,2% auf 4,4 Millionen USD, das Betriebsergebnis verbesserte sich auf 0,1 Millionen USD von einem vorherigen Verlust von (0,2 Millionen USD), und das bereinigte EBITDA stieg auf 1,2 Millionen USD mit einer Marge von 14,4%. Trotz dieser operativen Verbesserungen berichtete das Unternehmen von einem Nettoverlust von (2,0 Millionen USD) im Vergleich zu einem Nettoertrag von 461 USD im Vorjahr.
Für das Geschäftsjahr 2025 prognostiziert Track Group einen Umsatz zwischen 35-36 Millionen USD mit einer bereinigten EBITDA-Marge von 14-15%.
- Gross profit increased 5.2% to $4.4M
- Operating income improved to $0.1M from ($0.2M) loss
- Adjusted EBITDA increased to $1.2M with improved margin of 14.4%
- Cash position improved to $3.7M from $3.6M
- Revenue declined 3.3% to $8.7M
- Net loss of ($2.0M) compared to prior year net income of $461
- Decreased monitoring assignments in key markets (Michigan, Virginia)
- FY25 revenue guidance ($35-36M) suggests potential decline from FY24 ($36.9M)
NAPERVILLE, Ill., Feb. 07, 2025 (GLOBE NEWSWIRE) -- Track Group, Inc. (OTCQB: TRCK), a global leader in offender tracking and monitoring services, today announced financial results for its fiscal quarter ended December 31, 2024 (“Q1 FY25”). In Q1 FY25, the Company posted (i) total revenue of
“The quarter ending December 31, 2024 showed increases in gross profit, operating income and Adjusted EBITDA. This progress reflects the increased use of our products and services in legacy programs and continued expansion through newly awarded contracts domestically and abroad. With a strong pipeline and a commitment to delivering value, we are poised for continued success in fiscal year 2025,” said Derek Cassell, Track Group’s CEO.
FINANCIAL HIGHLIGHTS
- Total Q1 FY25 revenue of
$8.7M decreased approximately3.3% compared to Q1 FY24 revenue of$9.0M . The decrease in revenue was driven principally by a decrease in people assigned to monitoring for clients in Michigan and Virginia, and our recently sold Chilean subsidiary. This decrease was partially offset by revenue increases for clients in Illinois, Puerto Rico and the Bahamas who experienced increases in the number of people assigned to monitoring. - Gross profit of
$4.4M in Q1 FY25 increased approximately5.2% compared to Q1 FY24 gross profit of$4.2M due to a decrease in monitoring center costs, partially offset by a decrease in revenue. - Operating income in Q1 FY25 of
$0.1M increased compared to the operating loss of ($0.2M ) in Q1 FY24. The increase in net income in Q1 FY25 is primarily due to a decrease in cost of revenue and a decrease in operating expense. - Adjusted EBITDA for Q1 FY25 of
$1.2M , increased compared to$1.1M for Q1 FY24 due to an increase in operating income and gross profit. Adjusted EBITDA in Q1 FY25 as a percentage of revenue increased to14.4% , compared to11.8% for Q1 FY24 for the same reasons. - Unrestricted cash balance of
$3.7M for Q1 FY25 increased compared to$3.6M for Q1 FY24. The change in cash position was principally due to the sale of our Chilean subsidiary. - Net loss attributable to shareholders in FY24 was (
$2,010,849) compared to net income of$461 in FY23, a change principally attributable to lower revenue and a foreign currency exchange rate loss.
Business Outlook
Growth in gross profit and operating income in Q1 FY25 reinforces our confidence in the strategic reinvestment in technology and the implementation of new programs initiated in late FY23. These endeavors position us well for sustained growth throughout FY25. As a result, the Company's preliminary outlook for FY25 is as follows:
| Actual | Outlook | ||||||||
| FY 2023 | FY 2024 | FY 2025 | |||||||
| Revenue: | M | M | |||||||
| Adjusted EBITDA Margin: | 11.1 | % | 14.6 | % | |||||
About Track Group, Inc.
Track Group designs, manufactures, and markets location tracking devices; as well as develops and sells a variety of related software, services, and 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.
The Company currently trades under the ticker symbol "TRCK" on the OTCQB exchange. For more information, visit www.trackgrp.com.
Forward-Looking Statements
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., and 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.
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, 2023, 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 | |||||||
| (Unaudited) | |||||||
| December 31, | September 30, | ||||||
| 2024 | 2024 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash | $ | 3,740,043 | $ | 3,574,215 | |||
| Accounts receivable, net of allowance for credit losses of | 5,319,041 | 4,428,535 | |||||
| Prepaid expense and deposits | 420,680 | 638,293 | |||||
| Inventory, net of reserves of | 811,992 | 582,481 | |||||
| Assets held for sale | - | 969,481 | |||||
| Total current assets | 10,291,756 | 10,193,005 | |||||
| Property and equipment, net of accumulated depreciation of | 351,353 | 317,206 | |||||
| Monitoring equipment, net of accumulated depreciation of | 4,550,033 | 4,598,864 | |||||
| Intangible assets, net of accumulated amortization of | 13,415,776 | 13,959,571 | |||||
| Goodwill | 7,913,369 | 7,941,190 | |||||
| Other assets, net | 1,238,608 | 660,170 | |||||
| Total assets | $ | 37,760,895 | $ | 37,670,006 | |||
| Liabilities and Stockholders’ Equity (Deficit) | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 3,336,084 | $ | 3,082,467 | |||
| Accrued liabilities | 2,542,932 | 2,639,318 | |||||
| Liabilities held for sale | - | 732,028 | |||||
| Total current liabilities | 5,879,016 | 6,453,813 | |||||
| Long-term debt, net of current portion | 42,659,634 | 42,639,197 | |||||
| Long-term liabilities | 679,823 | 186,407 | |||||
| Total liabilities | 49,218,473 | 49,279,417 | |||||
| Stockholders’ equity (deficit): | |||||||
| Common stock, | 1,186 | 1,186 | |||||
| Preferred stock, | - | - | |||||
| Series A Convertible Preferred stock, | - | - | |||||
| Paid in capital | 302,600,546 | 302,600,546 | |||||
| Accumulated deficit | (315,274,178 | ) | (312,691,811 | ) | |||
| Accumulated other comprehensive loss | 1,214,868 | (1,519,332 | ) | ||||
| Total equity (deficit) | (11,457,578 | ) | (11,609,411 | ) | |||
| Total liabilities and stockholders’ equity (deficit) | $ | 37,760,895 | $ | 37,670,006 | |||
| TRACK GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME/(LOSS) (Unaudited) | |||||||
| Three Months Ended December 31, | |||||||
| 2024 | 2023 | ||||||
| Revenue: | |||||||
| Monitoring and other related services | $ | 8,441,307 | $ | 8,674,485 | |||
| Product sales and other | 227,021 | 292,487 | |||||
| Total revenue | 8,668,328 | 8,966,972 | |||||
| Cost of revenue: | |||||||
| Monitoring, products and other related services | 3,508,762 | 3,973,989 | |||||
| Depreciation and amortization included in cost of revenue | 735,224 | 789,463 | |||||
| Total cost of revenue | 4,243,986 | 4,763,452 | |||||
| Gross profit | 4,424,342 | 4,203,520 | |||||
| Operating expense: | |||||||
| General & administrative | 2,431,118 | 2,757,887 | |||||
| Selling & marketing | 901,189 | 706,531 | |||||
| Research & development | 669,391 | 682,463 | |||||
| Depreciation & amortization | 227,553 | 239,760 | |||||
| Loss on sale of subsidiary | 66,483 | - | |||||
| Total operating expense | 4,295,734 | 4,386,641 | |||||
| Operating income (loss) | 128,608 | (183,121 | ) | ||||
| Other income (expense): | |||||||
| Interest income | 2,839 | 48,162 | |||||
| Interest expense | (571,798 | ) | (486,084 | ) | |||
| Currency exchange rate gain (loss) | (1,499,262 | ) | 538,945 | ||||
| Total other income (expense) | (2,068,221 | ) | 101,023 | ||||
| Net income (loss) before income taxes | (1,939,613 | ) | (82,098 | ) | |||
| Income tax expense (benefit) | 71,236 | (82,559 | ) | ||||
| Net income (loss) attributable to common stockholders | (2,010,849 | ) | 461 | ||||
| Release of cumulative translation adjustment for sale of subsidiary | 1,390,913 | - | |||||
| Equity adjustment for sale of subsidiary | 571,518 | - | |||||
| Foreign currency translation adjustments | 771,769 | (106,702 | ) | ||||
| Comprehensive income (loss) | $ | 723,351 | $ | (106,241 | ) | ||
| Net income (loss) per share – basic: | |||||||
| Net income (loss) per common share | $ | (0.17 | ) | $ | 0.00 | ||
| Weighted average common shares outstanding | 11,863,758 | 11,863,758 | |||||
| Net income (loss) per share – diluted: | |||||||
| Net income (loss) per common share | $ | (0.17 | ) | $ | 0.00 | ||
| Weighted average common shares outstanding | 11,863,758 | 11,863,758 | |||||
| TRACK GROUP, INC. AND SUBSIDIARIES NON-GAAP ADJUSTED EBITDA DECEMBER 31 (UNAUDITED) (amounts in thousands, except share and per share data) | |||||||
| Three Months Ended December 31, | |||||||
| 2024 | 2023 | ||||||
| Non-GAAP Adjusted EBITDA | |||||||
| Net income (loss) attributable to common shareholders | $ | (2,011 | ) | $ | - | ||
| Interest expense, net | 569 | 438 | |||||
| Depreciation and amortization | 963 | 1,029 | |||||
| Income taxes (1) | 71 | (83 | ) | ||||
| Board compensation and stock-based compensation | 75 | 53 | |||||
| Foreign exchange expense (gain) | 1,499 | (539 | ) | ||||
| Loss on sale of subsidiary | 66 | - | |||||
| Other charges (2) | 18 | 164 | |||||
| Total Non-GAAP Adjusted EBITDA | $ | 1,250 | $ | 1,062 | |||
| Non-GAAP Adjusted EBITDA, percent of revenue | 14.4 | % | 11.8 | % | |||
| Non-GAAP earnings per share – basic: | |||||||
| Weighted average common shares outstanding | 11,863,758 | 11,863,758 | |||||
| Non-GAAP earnings per share | $ | 0.11 | $ | 0.09 | |||
| Non-GAAP earnings per share – diluted: | |||||||
| Weighted average common shares outstanding | 11,863,758 | 11,863,758 | |||||
| Non-GAAP earnings per share | $ | 0.11 | $ | 0.09 | |||
| (1 | ) | Currently, the Company has significant U.S. tax loss carryforwards that may be used to offset future taxable income, subject to IRS limitations. However, the Company is still subject to certain state, commonwealth, and other foreign based taxes. | |
| (2 | ) | Other charges are expenses related to the board of directors, severance, and other Chile monitoring center costs for our recently sold subsidiary. |
James Berg
Chief Financial Officer
jim.berg@trackgrp.com
FAQ
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