• Resources
  • Blog
  • Journalists
  • Log In
  • Sign Up
  • Data Privacy
  • Send a Release
Cision PR Newswire: news distribution, targeting and monitoring
  • News
  • Products
    • Overview
    • Distribution by PR Newswire
    • Cision Communications Cloud®
    • Cision IR
    • All Products
  • Contact
    • General Inquiries
    • Request a Demo
    • Editorial Bureaus
    • Partnerships
    • Media Inquiries
    • Worldwide Offices

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases
      • All News Releases
      • All Public Company
      • English-only


      • News Releases Overview
      • Multimedia Gallery
      • All Multimedia
      • All Photos
      • All Videos


      • Multimedia Gallery Overview
      • Trending Topics
      • All Trending Topics


  • Business & Money
      • Auto & Transportation
      • All Automotive & Transportation
      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation


      • Auto & Transportation Overview
      • Business Technology
      • All Business Technology
      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors


      • Business Technology Overview
      • Entertain­ment & Media
      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television


      • Entertain­ment & Media Overview
      • Financial Services & Investing
      • All Financial Services & Investing
      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Stock Offering
      • Stock Split
      • Venture Capital


      • Financial Services & Investing Overview
      • General Business
      • All General Business
      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News


      • General Business Overview
  • Science & Tech
      • Consumer Technology
      • All Consumer Technology
      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications


      • Consumer Technology Overview
      • Energy & Natural Resources
      • All Energy
      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities


      • Energy & Natural Resources Overview
      • Environ­ment
      • All Environ­ment
      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters


      • Environ­ment Overview
      • Heavy Industry & Manufacturing
      • All Heavy Industry & Manufacturing
      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco


      • Heavy Industry & Manufacturing Overview
      • Telecomm­unications
      • All Telecomm­unications
      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications


      • Telecomm­unications Overview
  • Lifestyle & Health
      • Consumer Products & Retail
      • All Consumer Products & Retail
      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys


      • Consumer Products & Retail Overview
      • Entertain­ment & Media
      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television


      • Entertain­ment & Media Overview
      • Health
      • All Health
      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine


      • Health Overview
      • Sports
      • All Sports
      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories


      • Sports Overview
      • Travel
      • All Travel
      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry


      • Travel Overview
  • Policy & Public Interest
      • Policy & Public Interest
      • All Policy & Public Interest
      • Advocacy Group Opinion
      • Animal Welfare
      • Congressional & Presidential Campaigns
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy
      • U.S. State Policy


      • Policy & Public Interest Overview
  • People & Culture
      • People & Culture
      • All People & Culture
      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women


      • People & Culture Overview
      • In-Language News

      • español
      • português
      • Česko
      • Danmark
      • Deutschland
      • España
      • France
      • Italia
      • Nederland
      • Norge
      • Polska
      • Portugal
      • Россия
      • Slovensko
      • Suomi
      • Sverige
  • Overview
  • Distribution by PR Newswire
  • Cision Communications Cloud®
  • Cision IR
  • All Products
  • General Inquiries
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • PR Newswire: news distribution, targeting and monitoring
  • Send a Release
    • ALL CONTACT INFO

      Contact Us

      888-776-0942
      from 8 AM - 10 PM ET

  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • News in Focus
    • Browse All News
    • Multimedia Gallery
    • Trending Topics
    • Send a Release
    • Sign Up
    • Log In
    • Resources
    • Blog
    • Journalists
    • RSS
    • GDPR
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
    • Send a Release
    • Sign Up
    • Log In
    • Resources
    • Blog
    • Journalists
    • RSS
    • GDPR
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
    • Send a Release
    • Sign Up
    • Log In
    • Resources
    • Blog
    • Journalists
    • RSS
    • GDPR
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
    • Send a Release
    • Sign Up
    • Log In
    • Resources
    • Blog
    • Journalists
    • RSS
    • GDPR
  • Policy & Public Interest
    • Send a Release
    • Sign Up
    • Log In
    • Resources
    • Blog
    • Journalists
    • RSS
    • GDPR
  • People & Culture
    • People & Culture
    • Send a Release
    • Sign Up
    • Log In
    • Resources
    • Blog
    • Journalists
    • RSS
    • GDPR
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • Overview
  • Distribution by PR Newswire
  • Cision Communications Cloud®
  • Cision IR
  • All Products
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • General Inquiries
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR

Track Group, Inc. Reports Q3-FY2016 Quarterly Results


News provided by

Track Group, Inc.

Aug 10, 2016, 09:00 ET

Share this article


SALT LAKE CITY, Aug. 10, 2016 /PRNewswire/ -- Track Group, Inc. (OTCQX: TRCK) ("Track Group"), an end-to-end Platform-as-a-Service (PaaS) provider of cloud-based tracking solutions in the global offender management market, today announced results from the third quarter ended June 30, 2016 and year-to-date.

  • Revenue increased 24%
  • Significantly reduced loss from operations by 53% through growing topline revenue and minimizing operating expenses
  • Adjusted EBITDA margin improved to 15%, up from 11.5%
  • Significantly improved cash generated from operations by 337%
  • Sharpens 2016 and 2017 outlook

Third Quarter Highlights

  • Marion County Agreement - On May 5, 2016, Track Group executed an agreement with Marion County Community Corrections, an agency aimed at relieving overcrowding at the state level, as well as enhancing the coordination of local correctional efforts in the largest county in Indiana, to provide electronic monitoring services across the full range of sentences under the agency's oversight.  Under the terms of this agreement, Track Group will monitor more than 2,300 offenders and defendants by providing alcohol monitoring technology and GPS-based solutions, including the Company's newest tracking device, SHADOW™, which is the smallest, lightest and most precise 3G unit of its kind. This agreement, lasting eighteen months, is expected to contribute more than $4 million in revenue.

Financial Highlights

  • Revenue increased 24% - Revenue from operations increased 24 percent in the third quarter of fiscal 2016, when compared to the same period in 2015.  The increase in revenue is attributed to the expansion and growth of offender monitoring in Chile and in Track Group's North American monitoring operations in Indiana and Virginia, as well as increased consumer demand for the Company's analytics service offerings.
  • Gross profit margin remained at 62% - Gross profit margin for the quarter ended June 30, 2016 remained at 62 percent of net revenue compared to the same quarter in 2015.
  • Operating expense decreased 8.5% - The 8.5 percent decrease in operating expense in the third quarter of fiscal year 2016 from the same period in 2015 was largely the result of decreases in general, administrative and marketing expenses, offset by increases in research and development expense.
  • Loss from operations decreased 53% - Loss from operations for the quarter ended June 30, 2016 was $1.16 million compared to a loss of $2.48 million in the same period in 2015, a decrease of 53 percent.  Increases in topline revenue, and decreases in general and administrative expenses and selling and marketing expenses contributed to the decrease in loss from operations.
  • Net loss of $1.8M – Track Group had a net loss for the quarter ended June 30, 2016 of $1.8 million compared to a net loss of $2.9 million during the same quarter last year, a decrease of $1.1 million. The decrease in net loss is largely due to increased total revenues, decreased general and administrative expense, and decreased sales and marketing expense in the quarter ended June 30, 2016, when compared to the same quarter in 2015.
  • Cash from operations improved 337% - Net cash provided by operations improved 337 percent from a loss of $0.83 million in the nine months ended June 30, 2015 to $1.96 million in the same period in 2016.  Total cash improved from a burn of $6.58 million in the nine months ended June 30, 2015 to a burn of $2.90 million in the same period in 2016.
  • Adjusted EBITDA increased to $1.02M – Adjusted EBITDA for the third quarter of 2016 increased to $1.02 million, or 15.0 percent of revenue, from $0.63 million, or 11.5 percent of revenue compared to the same period in 2015.

Guy Dubois, Chairman of Track Group, stated, "We now have reported our 5th consecutive quarter of positive Adjusted EBITDA and expect our FY 2016 organic revenue to grow by well over 30% versus last year. 2016 is a key inflection year for Track Group that will fuel momentum and position the company for continuous profitable growth."

John Merrill, Chief Financial Officer of Track Group, added, "Demonstrated by our growth in revenue this quarter from last quarter, or even the same period last year, Track Group's platform-as-a-service continues to grow in our targeted markets.  Our global growth strategy is to continue expanding on a subscription basis that empowers our end-consumers with a single-sourced, real-time, end-to-end offender management solution at a flexible price."

Company Outlook


Actual

Adjusted Outlook


Q3-FY16

Q3-FY15

YTD-FY16

YTD-FY15

FY 2016

FY 2017








Revenue:

$6.75M

$5.44M

$19.66M

$14.88M

$27.5-28.5M

$40-43M








Adj. EBITDA Margin:

15.0%

11.5%

9.8%

-1.4%

14-16%

21-26%

Non-GAAP Financial Measures
This press 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 quarterly report on Form 10-Q for the quarter ended June 30, 2016, and other reports filed with the Securities and Exchange Commission. Investors are encouraged to carefully read and consider such disclosure and analysis contained in the Company's Form 10-Q and other reports, including the risk factors contained in the Company's annual report on Form 10-K for the year ended September 30, 2015.

About Track Group, Inc.
Track Group is a global leader in providing end-to-end Platform-as-a-Service (PaaS) solutions that combine real-time tracking devices and professional monitoring services with advanced predictive behavioral data analytics for the global offender management market which includes corrections, military and law enforcement. Track Group's hardware-agnostic data analytics platform and software applications 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.  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 & its subsidiaries 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.

Contacts
John Merrill
Chief Financial Officer
[email protected] 
(866) 451-6141

Tirth Patel
Edison Advisors (investors)
[email protected] 
(646) 653-7035



TRACK GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS






June 30,



September 30,


Assets


2016



2015


    Current assets:


 (Unaudited)




  Cash


$

2,007,852



$

4,903,045


  Accounts receivable, net of allowance for doubtful accounts of $4,997,938 and $4,156,963, respectively



6,719,803




6,044,931


  Note receivable, current portion



334,733




306,434


  Prepaid expenses and other



548,151




1,266,277


  Inventory, net of reserves of $98,150 and $225,900, respectively



580,269




741,514


               Total current assets



10,190,808




13,262,201


    Property and equipment, net of accumulated depreciation of $3,200,720 and $2,822,166, respectively



1,284,295




1,697,630


    Monitoring equipment, net of accumulated amortization of $3,002,672 and $2,225,480, respectively



3,876,268




2,784,595


    Intangible assets, net of accumulated amortization of $7,563,174 and $5,628,308, respectively



25,678,740




25,884,087


    Other assets



2,741,780




2,619,035


    Goodwill



7,875,146




7,782,903


                          Total assets


$

51,647,037



$

54,030,451











Liabilities and Stockholders' Equity









    Current liabilities:









  Accounts payable



2,567,581




2,363,441


  Accrued liabilities



3,928,693




2,705,403


  Current portion of long-term debt, net of discount of $0 and $222,973, respectively



69,494




796,225


               Total current liabilities



6,565,768




5,865,069


    Stock payable - related party



3,439,978




3,501,410


    Long-term debt, net of current portion and discount of $464,527 and $408,784, respectively



31,485,159




30,189,188


    Other long-term liabilities



-




106,671


                         Total liabilities



41,490,905




39,662,338











    Stockholders' equity:









              Common stock,  $0.0001 par value: 30,000,000 shares authorized; 10,305,211 and 10,261,288, outstanding, respectively



1,031




1,026


              Additional paid-in capital



298,520,891




297,591,034


              Accumulated deficit



(286,677,661)




(280,845,882)


              Accumulated other comprehensive income



(1,688,129)




(2,378,065)


                         Total equity



10,156,132




14,368,113


                         Total liabilities and stockholders' equity


$

51,647,037



$

54,030,451




TRACK GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited)






Three Months Ended



Nine Months Ended




June 30,



June 30,



June 30,



June 30,




2016



2015



2016



2015


Revenues:













    Products


$

62,125



$

210,332



$

316,737



$

487,482


    Monitoring, analytics & other related services



6,692,286




5,231,337




19,347,317




14,390,923


             Total revenues



6,754,411




5,441,669




19,664,054




14,878,405



















Cost of revenues:

















    Products



101,228




76,220




249,925




152,497


    Monitoring, analytics & other related services



1,907,493




1,427,572




5,531,692




4,622,460


    Depreciation & amortization included in cost of revenues



488,655




481,298




1,498,407




1,144,407


    Impairment of monitoring equipment and parts (Note 4)



60,000




85,221




180,000




225,522


             Total cost of revenues



2,557,376




2,070,311




7,460,024




6,144,886



















Gross profit



4,197,035




3,371,358




12,204,030




8,733,519



















Operating expenses: 

















    General & administrative



3,612,957




3,983,988




10,448,942




10,122,719


    Selling & marketing



470,829




616,395




1,684,130




1,587,802


    Research & development



651,952




425,173




1,811,697




1,235,049


    Depreciation & amortization



621,311




827,672




2,055,915




2,132,039


             Total operating expenses                                                                   



5,357,049




5,853,228




16,000,684




15,077,609



















             Loss from operations



(1,160,014)




(2,481,870)




(3,796,654)




(6,344,090)



















Other income (expense):

















    Interest expense, net



(683,482)




(566,992)




(2,009,399)




(1,872,844)


    Currency exchange rate gain (loss)



18,438




(145,476)




(66,119)




(519,478)


    Disgorgement funds received (Note 18)



-




215,286




-




4,915,286


    Other income, net



41,112




72,642




40,393




84,248


Net loss attributable to common shareholders



(1,783,946)




(2,906,410)




(5,831,779)




(3,736,878)


    Foreign currency translation adjustments



(280,319)




(449,377)




689,936




(355,397)


Comprehensive loss


$

(2,064,265)



$

(3,355,787)



$

(5,141,843)



$

(4,092,275)


    Basic loss per common share


$

(0.17)



$

(0.29)



$

(0.57)



$

(0.37)


    Diluted loss per common share


$

(0.17)



$

(0.29)



$

(0.57)



$

(0.37)


    Weighted average common shares outstanding, basic



10,302,000




10,149,000




10,278,000




10,149,000


    Weighted average common shares outstanding, diluted



10,302,000




10,149,000




10,278,000




10,149,000




TRACK GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)






Nine Months Ended




June 30,




2016



2015


Cash flows from operating activities:







    Net loss


$

(5,831,779)



$

(3,736,878)


          Adjustments to reconcile net income to net cash used in operating activities:









                Depreciation and amortization



3,554,322




3,488,398


                Impairment of monitoring equipment and parts



180,000




225,522


                Amortization of debt discount



167,230




286,751


                Loss on disposal of monitoring equipment included on cost of sales



67,097




184,556


                Bad debt expense



844,968




347,488


                Common stock issued for services



60,001




217,085


                Stock based compensation



539,275




-


                Vesting and re-pricing of stock options



437,197




341,905


                Loss on disposal of property and equipment



27,419




(334,981)


          Change in assets and liabilities:









                Accounts receivable, net



(1,430,852)




(2,857,986)


                Notes receivable



(28,299)




(23,755)


                Inventories



161,159




(746,822)


                Prepaid expenses and other assets



581,451




(686,759)


                Accounts payable



145,774




1,419,089


                Accrued expenses



2,489,900




1,054,190


                Deferred revenue



-




(6,881)


                         Net cash provided by (used in) operating activities



1,964,863




(829,078)











Cash flow from investing activities:









          Purchase of property and equipment



(58,271)




(482,343)


          Capitalized software



(1,518,800)




-


          Purchase of monitoring equipment and parts



(2,315,140)




(1,625,853)


          Leasehold improvements







(28,662)


          Payment related to acquisition



-




(1,782,849)


                         Net cash used in investing activities



(3,892,211)




(3,919,707)











Cash flow from financing activities:









          Principal payments on notes payable



(1,003,976)




(1,768,282)


          Repurchase of Series D Convertible Preferred Stock and warrants



-




(10,500)


                         Net cash used in financing activities



(1,003,976)




(1,778,782)











Effect of exchange rate changes on cash



36,131




(50,787)











Net decrease in cash



(2,895,193)




(6,578,354)


Cash, beginning of period



4,903,045




11,101,822


Cash, end of period


$

2,007,852



$

4,523,468













2016



2015


Cash paid for interest


$

50,614



$

933,808











    Supplemental schedule of non-cash investing and financing activities:









          Issuance of common stock and warrants for accrued Board of Director fees



133,135




270,016


          Payment of interest from increase in interest bearing debt



1,399,644




-


          Common stock issuance for the acquisition of a subsidiary and milestone achievements



61,432




912,404


TRACK GROUP, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES

FOR THE THREE AND NINE MONTHS ENDED, JUNE 30, 2016 AND 2015




June 30

June 30

YTD

YTD


Non-GAAP Adjusted EBITDA (In $000's USD)


2016

2015

FY16

FY15


Net loss attributable to common shareholders


$                  (1,784)

$                  (2,906)

$                  (5,832)

$                  (3,734)


  Interest expense, net


684

727

2,010

2,045


  Income taxes (5)


15

10

28

20


  Depreciation, amortization, and impairment


1,176

1,220

3,801

3,345


  Stock based compensation


655

586

1,284

1,187


  M&A costs (1)


-

-

-

434


  Other non-cash charges (2)


158

-

530

122


  Non-recurring one-time charges (3)


111

989

110

1,077


  Non-recurring one-time (benefits) (4)


-

-

-

(4,700)


Non GAAP Adjusted EBITDA


$                    1,015

$                       626

$                    1,931

$                      (204)


Non GAAP Adjusted EBITDA, percent of revenue


15.0%

11.5%

9.8%

-1.4%











June 30

June 30

YTD

YTD


Non-GAAP EPS (In $000's, except per share)


2016

2015

FY16

FY15


Net loss attributable to common shareholders


$                  (1,784)

$                  (2,906)

$                  (5,832)

$                  (3,734)


  Interest expense, net


684

727

2,010

2,045


  Income taxes (5)


15

10

28

20


  Depreciation, amortization, and impairment


1,176

1,220

3,801

3,345


  Stock based compensation


655

586

1,284

1,187


  M&A costs (1)


-

-

-

434


  Other non-cash charges (2)


158

-

530

122


  Non-recurring one-time charges (3)


111

989

110

1,077


  Non-recurring one-time (benefits) (4)


-

-

-

(4,700)


Non-GAAP net income to common shareholders


$                    1,015

$                       626

$                    1,931

$                      (204)


Weighted average common shares outstanding


10,302

10,149

10,278

10,149


Non-GAAP earnings (loss) per share


$                      0.10

$                      0.06

$                      0.19

$                     (0.02)
















(1)

The Company completed two acquisitions in 2014 and one in 2015. M&A costs in prior periods include severance, settlement costs, travel, advisory and legal fees that were not included in the purchase price allocation. Those costs were expensed in accordance with U.S. GAAP.

(2)

Other non-cash charges may include reserves for inventory obsolescence, gains or losses, non-cash currency impacts, and reserves associated with a 2013 contract with Mexico.

(3)

Non-recurring one-time charges include but are not limited to: the pro-forma effect of EBITDA of acquired companies, settlement costs associated with a prior period lawsuit, integration and impairment of certain acquisition assets and consolidation of facilities.

(4)

Non-recurring one-time benefits include disgorgement funds received by a shareholder net of related costs.

(5)

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.

SOURCE Track Group, Inc.

Related Links

http://www.trackgrp.com

Modal title

    Contact Cision

  • Cision Distribution 888-776-0942
    from 8 AM - 9 PM ET

  • Chat with an Expert
    • General Inquiries
    • Request a Demo
    • Editorial Bureaus
    • Partnerships
    • Media Inquiries
    • Worldwide Offices

    Products

  • Cision Communication Cloud®
  • For Marketers
  • For Public Relations
  • For IR & Compliance
  • For Agency
  • For Small Business
  • All Products

    About

  • About PR Newswire
  • About Cision
  • Become a Publishing Partner
  • Become a Channel Partner
  • Careers
  • COVID-19 Resources
  • Accessibility Statement

    • Asia
    • Brazil
    • Canada
    • Czech
    • Denmark
    • Finland
    • France
    • Germany
    • India
    • Israel
    • Italy
    • Mexico
    • Middle East
    • Netherlands
    • Norway
    • Poland
    • Portugal
    • Russia
    • Slovakia
    • Spain
    • Sweden
    • United Kingdom

    My Services

  • All New Releases
  • Online Member Center
  • ProfNet

Contact Cision


Products


About


My Services
  • All News Releases
  • Online Member Center
  • ProfNet℠
Cision Distribution Helpline
888-776-0942
  • Terms of Use
  • Privacy Policy
  • Information Security Policy
  • Site Map
  • RSS
  • Cookie Settings
Copyright © 2021 Cision US Inc.