Track Group Reports Fiscal 2024 Financial Results
Track Group (OTCQB: TRCK) reported its fiscal year 2024 results with total revenue of $36.9M, up 7.0% from FY23's $34.5M. The company saw increased gross profit of $17.2M, up 12.5% from FY23, driven by higher monitoring assignments in Illinois and the Bahamas. However, Track Group recorded an operating loss of ($1.9M) and a net loss of ($3.1M).
Notable improvements include Adjusted EBITDA of $5.4M (14.6% margin), up from $3.8M (11.1%) in FY23. The company's cash position decreased to $3.6M from $4.1M due to technology reinvestment and settlement payments. For FY25, Track Group projects revenue between $35M-$36M with an Adjusted EBITDA margin of 14-15%.
Track Group (OTCQB: TRCK) ha riportato i risultati per l'anno fiscale 2024 con un fatturato totale di $36.9M, in aumento del 7,0% rispetto ai $34.5M dell'anno fiscale 2023. L'azienda ha registrato un aumento del profitto lordo di $17.2M, in crescita del 12,5% rispetto all'anno precedente, sostenuto da un maggior numero di incarichi di monitoraggio in Illinois e Bahamas. Tuttavia, Track Group ha registrato una perdita operativa di ($1.9M) e una perdita netta di ($3.1M).
Tra i miglioramenti significativi spicca l'EBITDA Adjusted di $5.4M (margine del 14,6%), in crescita rispetto ai $3.8M (11,1%) dell'anno fiscale 2023. La posizione di cassa dell'azienda è diminuita a $3.6M da $4.1M a causa dei reinvestimenti in tecnologia e dei pagamenti di risoluzione. Per l'anno fiscale 2025, Track Group prevede entrate comprese tra $35M e $36M con un margine EBITDA Adjusted del 14-15%.
Track Group (OTCQB: TRCK) presentó sus resultados del año fiscal 2024 con ingresos totales de $36.9M, un incremento del 7.0% respecto a los $34.5M del año fiscal 2023. La compañía experimentó un aumento en la utilidad bruta de $17.2M, un 12.5% más que el año anterior, impulsado por un mayor número de asignaciones de monitoreo en Illinois y las Bahamas. Sin embargo, Track Group registró una pérdida operativa de ($1.9M) y una pérdida neta de ($3.1M).
Entre las mejoras destacadas se encuentra el EBITDA Ajustado de $5.4M (margen del 14.6%), en comparación con $3.8M (11.1%) en el año fiscal 2023. La posición de efectivo de la compañía disminuyó a $3.6M desde $4.1M debido a reinversiones en tecnología y pagos de liquidación. Para el año fiscal 2025, Track Group proyecta ingresos entre $35M y $36M con un margen de EBITDA ajustado del 14-15%.
Track Group (OTCQB: TRCK)는 2024 회계연도 결과를 발표했으며, 총 수익은 $36.9M로, 2023 회계연도의 $34.5M에서 7.0% 증가했습니다. 회사는 일리노이주와 바하마에서 모니터링 할당이 증가함에 따라 총 매출 총 이익이 $17.2M으로 12.5% 증가했습니다. 그러나 Track Group는 운영 손실을 ($1.9M) 기록했고, 순손실은 ($3.1M)였습니다.
주목할 만한 개선 사항으로는 조정된 EBITDA가 $5.4M(14.6% 마진)으로, 2023 회계연도의 $3.8M(11.1%)에서 증가했습니다. 회사의 현금 보유액은 기술 재투자 및 합의 금액 때문에 $4.1M에서 $3.6M으로 감소했습니다. 2025 회계연도에는 Track Group이 $35M에서 $36M 사이의 수익과 14-15%의 조정된 EBITDA 마진을 예상하고 있습니다.
Track Group (OTCQB: TRCK) a publié ses résultats pour l'année fiscale 2024, avec un revenu total de $36.9M, en hausse de 7,0% par rapport aux $34.5M de l'année fiscale 2023. L'entreprise a constaté une augmentation du profit brut de $17.2M, soit 12,5% de plus par rapport à l'année précédente, grâce à un nombre accru de missions de surveillance en Illinois et aux Bahamas. Cependant, Track Group a enregistré une perte opérationnelle de ($1.9M) et une perte nette de ($3.1M).
Parmi les améliorations notables, on trouve un EBITDA ajusté de $5.4M (marge de 14.6%), en hausse par rapport à $3.8M (11.1%) pour l'année fiscale 2023. La position de trésorerie de l'entreprise a diminué à $3.6M contre $4.1M en raison de réinvestissements dans la technologie et de paiements de règlement. Pour l'année fiscale 2025, Track Group prévoit des revenus entre $35M et $36M avec une marge EBITDA ajustée de 14-15%.
Track Group (OTCQB: TRCK) hat seine Ergebnisse für das Geschäftsjahr 2024 mit einem Gesamtumsatz von $36.9M veröffentlicht, was einem Anstieg von 7,0% im Vergleich zu $34.5M im Geschäftsjahr 2023 entspricht. Das Unternehmen verzeichnete einen Anstieg des Bruttoergebnisses von $17.2M, was einem Zuwachs von 12,5% gegenüber dem Vorjahr entspricht, bedingt durch eine höhere Anzahl von Überwachungsaufträgen in Illinois und auf den Bahamas. Allerdings wies Track Group einen operativen Verlust von ($1.9M) und einen Nettverlust von ($3.1M) aus.
Bemerkenswerte Verbesserungen umfassen ein bereinigtes EBITDA von $5.4M (14.6% Marge), das im Vergleich zu $3.8M (11.1%) im Geschäftsjahr 2023 gestiegen ist. Die Liquiditätsposition des Unternehmens sank auf $3.6M von $4.1M aufgrund von Reinvestitionen in Technologie und Abfindungszahlungen. Für das Geschäftsjahr 2025 prognostiziert Track Group einen Umsatz zwischen $35M und $36M mit einer bereinigten EBITDA-Marge von 14-15%.
- Revenue increased 7.0% to $36.9M in FY24
- Gross profit grew 12.5% to $17.2M
- Adjusted EBITDA improved to $5.4M with margin expansion to 14.6%
- Net loss decreased from ($3.4M) to ($3.1M)
- Operating loss increased to ($1.9M) from ($1.5M)
- Cash balance declined to $3.6M from $4.1M
- FY25 revenue guidance suggests potential decline ($35M-$36M vs $36.9M)
- Incurred $0.8M impairment charge and $1.0M settlement costs
NAPERVILLE, Ill., Dec. 23, 2024 (GLOBE NEWSWIRE) -- Track Group, Inc. (OTCQB: TRCK), a global leader in offender tracking and monitoring services, today announced financial results for its fiscal year ended September 30, 2024 (“FY24”). In FY24, the Company posted (i) total revenue of
“Fiscal year 2024 marked a strong return to growth for Track Group, with notable increases in revenue, gross profit, 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 FY24 revenue of
$36.90M increased approximately7.0% compared to FY23 revenue of$34.5M . The rise in revenue was driven principally by an increase in people assigned to monitoring for clients in Illinois and the Bahamas offset by decreases in revenue for our customer in Chile. - Gross profit of
$17.2M in FY24 increased approximately12.5% compared to FY23 gross profit of$15.3M due to an increase in revenue, lower monitoring center costs and lower communication costs, partially offset by higher device repair costs and higher server costs. - Operating loss in FY24 of (
$1.9M ) increased compared to the operating loss of ($1.5M ) in FY23. The increase in net loss in FY24 is primarily due to non-recurring expenses including an impairment charge of approximately$0.8M associated with assets held for sale and a settlement related to a contract dispute of approximately$1.0M . - Adjusted EBITDA for FY24 of
$5.4M , increased compared to$3.8M for FY23 due to an increase in revenue and gross profit. Adjusted EBITDA in FY24 as a percentage of revenue increased to14.6% , compared to11.1% for FY23 for the same reasons. - Cash balance of
$3.6M for FY24 decreased compared to$4.1M for FY23. The change in cash position was principally due to the reinvestment in monitoring technology and the payment of a settlement related to a contract dispute. - Net loss attributable to shareholders in FY24 was (
$3.1M ) compared to net loss of ($3.4M ) in FY23, a change principally attributable to higher gross profit, and income tax benefit, partially offset by higher operating expense and higher other expense.
Business Outlook
Track Group returned to revenue and gross profit growth in 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 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: | $ | 34.5 | M | $ | 36.9 | 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 AS OF SEPTEMBER 30, 2024 AND 2023 | |||||||
September 30, | September 30, | ||||||
2024 | 2023 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash | $ | 3,574,215 | $ | 4,057,195 | |||
Accounts receivable, net of allowance for credit losses of | 4,428,535 | 4,536,916 | |||||
Prepaid expense and deposits | 638,293 | 610,440 | |||||
Inventory, net of reserves of | 582,481 | 1,286,194 | |||||
Assets held for sale | 969,481 | - | |||||
Total current assets | 10,193,005 | 10,490,745 | |||||
Property and equipment, net of accumulated depreciation of | 317,206 | 115,808 | |||||
Monitoring equipment, net of accumulated depreciation of | 4,598,864 | 5,187,092 | |||||
Intangible assets, net of accumulated amortization of | 13,959,571 | 14,157,294 | |||||
Goodwill | 7,941,190 | 7,851,466 | |||||
Other assets, net | 660,170 | 2,442,154 | |||||
Total assets | $ | 37,670,006 | $ | 40,244,559 | |||
Liabilities and Stockholders’ Equity (Deficit) | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 3,082,467 | $ | 2,796,712 | |||
Accrued liabilities | 2,639,318 | 2,571,839 | |||||
Current portion of long-term debt | - | 308,417 | |||||
Liabilities held for sale | 732,028 | - | |||||
Total current liabilities | 6,453,813 | 5,676,968 | |||||
Long-term debt, net of current portion | 42,639,197 | 42,801,165 | |||||
Long-term liabilities | 186,407 | 259,359 | |||||
Total liabilities | 49,279,417 | 48,737,492 | |||||
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 | (312,691,811 | ) | (309,610,397 | ) | |||
Accumulated other comprehensive loss | (1,519,332 | ) | (1,480,837 | ) | |||
Total equity (deficit) | (11,609,411 | ) | (8,492,933 | ) | |||
Total liabilities and stockholders’ equity (deficit) | $ | 37,670,006 | $ | 40,244,559 | |||
TRACK GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME/(LOSS) FOR THE FISCAL YEARS ENDED SEPTEMBER 30, 2024 AND 2023 | |||||||
2024 | 2023 | ||||||
Revenue: | |||||||
Monitoring and other related services | $ | 35,712,211 | $ | 33,503,687 | |||
Product sales and other | 1,174,289 | 972,178 | |||||
Total revenue | 36,886,500 | 34,475,865 | |||||
Cost of revenue: | |||||||
Monitoring, products and other related services | 16,615,936 | 15,915,300 | |||||
Depreciation and amortization included in cost of revenue | 3,061,520 | 3,263,490 | |||||
Total cost of revenue | 19,677,456 | 19,178,790 | |||||
Gross profit | 17,209,044 | 15,297,075 | |||||
Operating expense: | |||||||
General & administrative | 11,521,826 | 10,275,695 | |||||
Selling & marketing | 3,121,239 | 2,842,661 | |||||
Research & development | 2,749,218 | 2,735,060 | |||||
Depreciation & amortization | 944,115 | 987,472 | |||||
Impairment on assets held for sale | 757,130 | - | |||||
Total operating expense | 19,093,528 | 16,840,888 | |||||
Operating income (loss) | (1,884,484 | ) | (1,543,813 | ) | |||
Other income (expense): | |||||||
Interest income | 126,365 | 272,775 | |||||
Interest expense | (2,024,443 | ) | (1,960,488 | ) | |||
Currency exchange rate gain (loss) | 115,302 | 467,868 | |||||
Other income/(expense), net | (3,607 | ) | - | ||||
Total other income (expense) | (1,786,383 | ) | (1,219,845 | ) | |||
Net income (loss) before income taxes | (3,670,867 | ) | (2,763,658 | ) | |||
Income tax expense (benefit) | (589,453 | ) | 627,850 | ||||
Net income (loss) attributable to common stockholders | (3,081,414 | ) | (3,391,508 | ) | |||
Foreign currency translation adjustments | (38,495 | ) | (206,220 | ) | |||
Comprehensive income (loss) | $ | (3,119,909 | ) | $ | (3,597,728 | ) | |
Net income (loss) per share – basic: | |||||||
Net income (loss) per common share | $ | (0.26 | ) | $ | (0.30 | ) | |
Weighted average common shares outstanding | 11,863,758 | 11,634,449 | |||||
Net income (loss) per share – diluted: | |||||||
Net income (loss) per common share | $ | (0.26 | ) | $ | (0.30 | ) | |
Weighted average common shares outstanding | 11,863,758 | 11,634,449 | |||||
TRACK GROUP, INC. AND SUBSIDIARIES NON-GAAP ADJUSTED EBITDA SEPTEMBER 30 (UNAUDITED) (amounts in thousands, except share and per share data) | |||||||||||||||
Three Months Ended September 30, | Twelve Months Ended September 30, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Non-GAAP Adjusted EBITDA | |||||||||||||||
Net income (loss) attributable to common shareholders | $ | (309 | ) | $ | (1,245 | ) | $ | (3,081 | ) | $ | (3,392 | ) | |||
Interest expense, net | 592 | 436 | 1,902 | 1,688 | |||||||||||
Depreciation and amortization | 978 | 1,070 | 4,006 | 4,251 | |||||||||||
Income taxes (1) | (236 | ) | 30 | (589 | ) | 628 | |||||||||
Board compensation and stock-based compensation | 75 | 71 | 253 | 385 | |||||||||||
Foreign exchange expense (gain) | (275 | ) | 505 | (115 | ) | (468 | ) | ||||||||
Impairment on Assets Held for Sale | 757 | - | 757 | - | |||||||||||
Other charges, net (2) | 385 | 149 | 2,259 | 747 | |||||||||||
Total Non-GAAP Adjusted EBITDA | $ | 1,967 | $ | 1,016 | $ | 5,392 | $ | 3,839 | |||||||
Non-GAAP Adjusted EBITDA, percent of revenue | 20.2 | % | 11.8 | % | 14.6 | % | 11.1 | % | |||||||
Non-GAAP earnings per share – basic: | |||||||||||||||
Weighted average common shares outstanding | 11,863,758 | 11,863,758 | 11,863,758 | 11,634,449 | |||||||||||
Non-GAAP earnings per share | $ | 0.17 | $ | 0.09 | $ | 0.45 | $ | 0.32 | |||||||
Non-GAAP earnings per share – diluted: | |||||||||||||||
Weighted average common shares outstanding | 11,863,758 | 11,863,758 | 11,863,758 | 11,634,449 | |||||||||||
Non-GAAP earnings per share | $ | 0.17 | $ | 0.09 | $ | 0.45 | $ | 0.32 |
(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 in FY24 includes non-recurring expenses related to a settled contract dispute of approximately |
James Berg
Chief Financial Officer
jim.berg@trackgrp.com
FAQ
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