Track Group Reports 3rd Quarter Fiscal 2024 Financial Results
Track Group (OTCQB: TRCK) reported its Q3 FY24 financial results, showing positive growth in key areas. The company's total revenue increased by 6% to $9.2 million, compared to $8.7 million in Q3 FY23. Gross profit saw a significant rise of 17% to $4.3 million. Notably, Adjusted EBITDA jumped by 44% to $1.6 million.
Despite these improvements, the company reported an operating loss of ($0.5M) and a net loss attributable to common shareholders of ($0.9M). The cash balance decreased by 53% to $1.9 million compared to September 30, 2023. Track Group's CEO, Derek Cassell, expressed optimism about maintaining these positive trends throughout the year. The company's outlook for FY24 projects revenue between $37-38 million and an Adjusted EBITDA margin of 11-15%.
Track Group (OTCQB: TRCK) ha riportato i risultati finanziari del terzo trimestre dell'anno fiscale 2024, mostrando una crescita positiva in settori chiave. Il fatturato totale dell'azienda è aumentato del 6%, raggiungendo i 9,2 milioni di dollari, rispetto agli 8,7 milioni nel terzo trimestre dell'anno fiscale 2023. Il profitto lordo ha registrato un significativo aumento del 17%, arrivando a 4,3 milioni di dollari. Notevole anche l'incremento dell'EBITDA rettificato, balzato del 44% a 1,6 milioni di dollari.
Nonostante questi miglioramenti, l'azienda ha registrato una perdita operativa di ($0,5M) e una perdita netta attribuibile agli azionisti comuni di ($0,9M). Il saldo di cassa è diminuito del 53%, scendendo a 1,9 milioni di dollari rispetto al 30 settembre 2023. Il CEO di Track Group, Derek Cassell, ha espresso ottimismo nel mantenere queste tendenze positive per tutto l'anno. Le previsioni dell'azienda per l'anno fiscale 2024 indicano un fatturato compreso tra 37 e 38 milioni di dollari e un margine EBITDA rettificato dell'11-15%.
Track Group (OTCQB: TRCK) informó sus resultados financieros del tercer trimestre del año fiscal 2024, mostrando crecimiento positivo en áreas clave. Los ingresos totales de la empresa aumentaron un 6%, alcanzando los 9,2 millones de dólares, en comparación con los 8,7 millones en el tercer trimestre del año fiscal 2023. El beneficio bruto vio un aumento significativo del 17%, llegando a 4,3 millones de dólares. Notablemente, el EBITDA ajustado saltó un 44% hasta 1,6 millones de dólares.
A pesar de estas mejoras, la empresa reportó una pérdida operativa de ($0,5M) y una pérdida neta atribuible a los accionistas comunes de ($0,9M). El saldo de efectivo disminuyó un 53% hasta 1,9 millones de dólares en comparación con el 30 de septiembre de 2023. El CEO de Track Group, Derek Cassell, expresó optimismo sobre mantener estas tendencias positivas durante todo el año. Las proyecciones de la empresa para el año fiscal 2024 prevén ingresos entre 37 y 38 millones de dólares y un margen de EBITDA ajustado del 11-15%.
Track Group (OTCQB: TRCK)는 2024 회계연도 3분기 재무 결과를 보고하며 주요 분야에서 긍정적인 성장을 보여주었습니다. 회사의 총 수익은 6% 증가하여 920만 달러에 달하며, 이는 2023 회계연도 3분기의 870만 달러에 비해 증가한 수치입니다. 총 이익은 17% 증가하여 430만 달러에 달했습니다. 특히, 조정된 EBITDA는 44% 증가하여 160만 달러에 도달했습니다.
이러한 개선에도 불구하고, 회사는 운영 손실을 ($0.5M)로, 일반 주주에게 귀속되는 순손실은 ($0.9M)로 보고했습니다. 현금 잔고는 2023년 9월 30일과 비교해 53% 감소한 190만 달러로 줄어들었습니다. Track Group의 CEO인 Derek Cassell은 연중 이러한 긍정적인 추세를 유지할 것이라는 낙관적인 입장을 밝혔습니다. 2024 회계연도의 회사 전망은 3700만에서 3800만 달러 사이의 수익과 11-15%의 조정된 EBITDA 마진을 예측하고 있습니다.
Track Group (OTCQB: TRCK) a annoncé ses résultats financiers pour le troisième trimestre de l'exercice fiscal 2024, montrant une croissance positive dans des domaines clés. Le chiffre d'affaires total de l'entreprise a augmenté de 6% pour atteindre 9,2 millions de dollars, contre 8,7 millions de dollars au troisième trimestre de l'exercice fiscal 2023. Le bénéfice brut a connu une augmentation significative de 17% pour atteindre 4,3 millions de dollars. Notamment, l'EBITDA ajusté a grimpé de 44% à 1,6 million de dollars.
Malgré ces améliorations, l'entreprise a enregistré une perte d'exploitation de ($0,5M) et une perte nette attribuable aux actionnaires ordinaires de ($0,9M). Le solde de trésorerie a diminué de 53% pour atteindre 1,9 million de dollars par rapport au 30 septembre 2023. Le PDG de Track Group, Derek Cassell, a exprimé son optimisme quant à la possibilité de maintenir ces tendances positives tout au long de l'année. Les prévisions de l'entreprise pour l'exercice 2024 projettent un chiffre d'affaires compris entre 37 et 38 millions de dollars et une marge EBITDA ajustée de 11 à 15%.
Track Group (OTCQB: TRCK) berichtete über die finanziellen Ergebnisse des dritten Quartals des Geschäftsjahres 2024 und wies ein positives Wachstum in wichtigen Bereichen auf. Der Gesamtumsatz des Unternehmens stieg um 6% auf 9,2 Millionen Dollar, verglichen mit 8,7 Millionen Dollar im dritten Quartal des Geschäftsjahres 2023. Der Bruttogewinn verzeichnete einen signifikanten Anstieg von 17% auf 4,3 Millionen Dollar. Besonders bemerkenswert ist der Anstieg des bereinigten EBITDA um 44% auf 1,6 Millionen Dollar.
Trotz dieser Verbesserungen meldete das Unternehmen einen Betriebsverlust von ($0,5M) und einen Nettverlust, der den Stammaktionären zuzuschreiben ist, von ($0,9M). Der Bargeldbestand sank um 53% auf 1,9 Millionen Dollar im Vergleich zum 30. September 2023. Der CEO von Track Group, Derek Cassell, äußerte Optimismus, diese positiven Trends im Laufe des Jahres aufrechterhalten zu können. Der Ausblick des Unternehmens für das Geschäftsjahr 2024 prognostiziert einen Umsatz zwischen 37 und 38 Millionen Dollar und eine bereinigte EBITDA-Marge von 11-15%.
- Total revenue increased by 6% to $9.2 million in Q3 FY24
- Gross profit rose by 17% to $4.3 million in Q3 FY24
- Adjusted EBITDA increased by 44% to $1.6 million in Q3 FY24
- Revenue for the nine months ended June 30, 2024, was up 5% to $27.1 million
- Adjusted EBITDA margin improved to 13% for the nine months ended June 30, 2024
- Operating loss increased to ($0.5M) in Q3 FY24 from ($0.3M) in Q3 FY23
- Net loss attributable to shareholders rose to ($0.9M) in Q3 FY24 from ($0.7M) in Q3 FY23
- Cash balance declined by 53% to $1.9 million compared to September 30, 2023
- Operating loss for the nine months ended June 30, 2024, increased by 30% to ($1.7M)
- Non-recurring settlement related to a contract dispute of approximately $1.0M impacted expenses
NAPERVILLE, Ill., Aug. 09, 2024 (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 June 30, 2024 (“Q3 FY24”). In Q3 FY24, the Company posted (i) total revenue of
FINANCIAL HIGHLIGHTS
- Total Q3 FY24 revenue of
$9.2M was up6% compared to Q3 FY23 revenue of$8.7M . Revenue for the nine months ended June 30, 2024 (“9M FY24”) of$27.1M was up approximately5% compared to revenue of$25.9M for the nine months ended June 30, 2023 (“9M FY23”). This positive performance can be attributed to increased activity among customers in Illinois, Puerto Rico, and Brazil, partially offset by decreases in revenue from customers in Indiana, Virginia and Chile.
- Gross Profit of
$4.3M rose by17% ($0.6M ) in Q3 FY24 compared to Q3 FY23. Gross profit for 9M FY24 was$12.4M compared to gross profit of$11.6M for 9M FY23. This improvement stems from factors like increased revenue, reduced communication costs and lower lost, stolen or damaged costs. However, it was partly offset by higher server costs.
- Operating loss in Q3 FY24 of (
$0.5M ) rose compared to ($0.3M ) in Q3 FY23. Operating loss for 9M FY24 of ($1.7M ) was up approximately30% compared to ($1.3M ) for 9M FY23. This rise in operating loss is primarily due to higher operating expenses. Operating expenses were up$1.2M in 9M FY24 compared to 9M FY23, primarily due to a non-recurring settlement related to a contract dispute of approximately$1.0M .
- Adjusted EBITDA for Q3 FY24 was
$1.6M , up44% compared to$1.1M for Q3 FY23. Adjusted EBITDA for 9M FY24 was$3.4M , up21% compared to Adjusted EBITDA for 9M FY23 of$2.8M primarily due to negative currency exchange rate movements of$0.6M in Q3 FY24 compared to Q3 FY23. Adjusted EBITDA in 9M FY24 as a percentage of revenue increased to13% , compared to11% in 9M FY23.
- Cash balance of
$1.9M for Q3 FY24 declined53% compared to$4.1M at September 30, 2023. The decrease in cash position was due to a decrease in net cash provided by operating activities of approximately$1.4M .
- Net loss attributable to shareholders in Q3 FY24 was (
$0.9M ) compared to ($0.7M ) in Q3 FY23, an increase of$0.2M . Net loss attributable to shareholders in 9M FY24 was ($2.8M ), compared to ($2.1M ) for 9M FY23, a change principally attributable to negative currency exchange rate movements and a non-recurring settlement related to a contract dispute of approximately$1.0M .
“In the quarter ending June 30, 2024, we demonstrated continued growth in revenue and gross profit, surpassing Q3 FY23. Notably, revenues grew by
Business Outlook
Despite previous challenges from supply chain delays, the impact of the Coronavirus, and the phase-out of our 3G-based cellular devices in the U.S., Track Group stands resilient. The demonstrated financial growth continued in Q3 FY24 which 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 a sustained return to growth throughout FY24. Our outlook for FY24 is as follows:
| Actual | Outlook | |||||||||||||
| FY 2022 | FY 2023 | FY 2024 | ||||||||||||
| Revenue (in millions): | $ | 37.0 | $ | 34.5 | $ | 37-38 | ||||||||
| Adjusted EBITDA Margin: | 18.0 | % | 11.1 | % | 11-15 | % | ||||||||
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 CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (Unaudited) | ||||||||
| June 30, | September 30, | |||||||
| 2024 | 2023 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash | $ | 1,924,394 | $ | 4,057,195 | ||||
| Accounts receivable, net of allowance for credit losses of | 4,682,297 | 4,536,916 | ||||||
| Prepaid expense and deposits | 822,764 | 610,440 | ||||||
| Inventory, net of reserves of | 599,899 | 1,286,194 | ||||||
| Other current assets | 1,393,008 | - | ||||||
| Total current assets | 9,422,362 | 10,490,745 | ||||||
| Property and equipment, net of accumulated depreciation of | 65,033 | 115,808 | ||||||
| Monitoring equipment, net of accumulated depreciation of | 5,030,046 | 5,187,092 | ||||||
| Intangible assets, net of accumulated amortization of | 14,181,072 | 14,157,294 | ||||||
| Goodwill | 7,876,014 | 7,851,466 | ||||||
| Other assets, net | 832,087 | 2,442,154 | ||||||
| Total assets | $ | 37,406,614 | $ | 40,244,559 | ||||
| Liabilities and Stockholders’ Equity (Deficit) | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 3,287,784 | $ | 2,796,712 | ||||
| Accrued liabilities | 2,301,967 | 2,571,839 | ||||||
| Current portion of long-term debt | 87,457 | 308,417 | ||||||
| Total current liabilities | 5,677,208 | 5,676,968 | ||||||
| Long-term debt, net of current portion | 42,781,510 | 42,801,165 | ||||||
| Long-term liabilities | 208,446 | 259,359 | ||||||
| Total liabilities | 48,667,164 | 48,737,492 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity (deficit): | ||||||||
| Common stock, | 1,186 | 1,186 | ||||||
| Preferred stock, | - | - | ||||||
| Series A Convertible Preferred stock, | - | - | ||||||
| Paid in capital | 302,600,546 | 302,597,115 | ||||||
| Accumulated deficit | (312,383,090 | ) | (309,610,397 | ) | ||||
| Accumulated other comprehensive loss | (1,479,192 | ) | (1,480,837 | ) | ||||
| Total equity (deficit) | (11,260,550 | ) | (8,492,933 | ) | ||||
| Total liabilities and stockholders’ equity (deficit) | $ | 37,406,614 | $ | 40,244,559 | ||||
| TRACK GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME/(LOSS) (Unaudited) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| June 30, | June 30, | June 30, | June 30, | |||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenue: | ||||||||||||||||
| Monitoring and other related services | $ | 9,064,447 | $ | 8,539,023 | $ | 26,497,582 | $ | 25,007,830 | ||||||||
| Product sales and other | 120,583 | 158,555 | 645,640 | 853,485 | ||||||||||||
| Total revenue | 9,185,030 | 8,697,578 | 27,143,222 | 25,861,315 | ||||||||||||
| Cost of revenue: | ||||||||||||||||
| Monitoring, products and other related services | 4,182,692 | 4,211,807 | 12,387,179 | 11,835,327 | ||||||||||||
| Depreciation & amortization included in cost of revenue | 732,749 | 821,915 | 2,316,100 | 2,438,649 | ||||||||||||
| Total cost of revenue | 4,915,441 | 5,033,722 | 14,703,279 | 14,273,976 | ||||||||||||
| Gross profit | 4,269,589 | 3,663,856 | 12,439,943 | 11,587,339 | ||||||||||||
| Operating expense: | ||||||||||||||||
| General & administrative | 3,091,210 | 2,228,545 | 9,022,963 | 7,852,864 | ||||||||||||
| Selling & marketing | 761,890 | 717,246 | 2,278,861 | 2,215,588 | ||||||||||||
| Research & development | 700,168 | 750,124 | 2,083,813 | 2,046,701 | ||||||||||||
| Depreciation & amortization | 234,813 | 247,083 | 711,097 | 742,366 | ||||||||||||
| Total operating expense | 4,788,081 | 3,942,998 | 14,096,734 | 12,857,519 | ||||||||||||
| Operating income (loss) | (518,492 | ) | (279,142 | ) | (1,656,791 | ) | (1,270,180 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Interest expense, net | (439,515 | ) | (430,824 | ) | (1,306,307 | ) | (1,251,349 | ) | ||||||||
| Currency exchange rate gain (loss) | (179,041 | ) | 418,011 | (160,028 | ) | 972,953 | ||||||||||
| Other income (expense), net | - | - | (3,443 | ) | - | |||||||||||
| Total other income (expense) | (618,556 | ) | (12,813 | ) | (1,469,778 | ) | (278,396 | ) | ||||||||
| Income (loss) before income tax | (1,137,048 | ) | (291,955 | ) | (3,126,569 | ) | (1,548,576 | ) | ||||||||
| Income tax expense (benefit) | (266,969 | ) | 405,229 | (353,876 | ) | 597,482 | ||||||||||
| Net income (loss) attributable to common shareholders | (870,079 | ) | (697,184 | ) | (2,772,693 | ) | (2,146,058 | ) | ||||||||
| Foreign currency translation adjustments | 145,101 | (402,454 | ) | 1,645 | (156,622 | ) | ||||||||||
| Comprehensive income (loss) | $ | (724,978 | ) | $ | (1,099,638 | ) | $ | (2,771,048 | ) | $ | (2,302,680 | ) | ||||
| Net income (loss) per share – basic | ||||||||||||||||
| Net income (loss) per share | $ | (0.07 | ) | $ | (0.06 | ) | $ | (0.23 | ) | $ | (0.18 | ) | ||||
| Weighted average shares outstanding | 11,863,758 | 11,863,758 | 11,863,758 | 11,863,758 | ||||||||||||
| Net income per share – diluted | ||||||||||||||||
| Net income (loss)per share | $ | (0.07 | ) | $ | (0.06 | ) | $ | (0.23 | ) | $ | (0.18 | ) | ||||
| Weighted average shares outstanding | 11,863,758 | 11,863,758 | 11,863,758 | 11,863,758 | ||||||||||||
| TRACK GROUP, INC. AND SUBSIDIARIES NON-GAAP ADJUSTED EBITDA JUNE 30 (Unaudited) (amounts in thousands, except share and per share data) | ||||||||||||||||
| Three Months Ended June 30, | Nine Months Ended June, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Non-GAAP Adjusted EBITDA | ||||||||||||||||
| Net Income (loss) attributable to common shareholders | $ | (870 | ) | $ | (697 | ) | $ | (2,773 | ) | $ | (2,146 | ) | ||||
| Interest expense, net | 440 | 431 | 1,310 | 1,251 | ||||||||||||
| Depreciation and amortization | 968 | 1,069 | 3,027 | 3,181 | ||||||||||||
| Income taxes (1) | (267 | ) | 405 | (354 | ) | 598 | ||||||||||
| Board compensation | 75 | 76 | 178 | 314 | ||||||||||||
| Foreign exchange (gain)/loss | 179 | (418 | ) | 160 | (973 | ) | ||||||||||
| Other charges, net (2) | 1,051 | 229 | 1,877 | 598 | ||||||||||||
| Non-GAAP Adjusted EBITDA | $ | 1,576 | $ | 1,095 | $ | 3,425 | $ | 2,823 | ||||||||
| Non-GAAP Adjusted EBITDA, percent of revenue | 17.1 | % | 12.6 | % | 12.6 | % | 10.9 | % | ||||||||
| Weighted average common shares outstanding - basic | 11,863,758 | 11,863,758 | 11,863,758 | 11,863,758 | ||||||||||||
| Non-GAAP earnings per share | $ | 0.13 | $ | 0.09 | $ | 0.29 | $ | 0.24 | ||||||||
| Weighted average common shares outstanding - diluted | 11,863,758 | 11,863,758 | 11,863,758 | 11,863,758 | ||||||||||||
| Non-GAAP earnings per share | $ | 0.13 | $ | 0.09 | $ | 0.29 | $ | 0.24 | ||||||||
| (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 include a non-recurring expense related to a settled contract dispute of approximately |
Contact:
James Berg
Chief Financial Officer
jim.berg@trackgrp.com
FAQ
What was Track Group's (TRCK) revenue for Q3 FY24?
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