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December 2017

Track Group Reports Fiscal 2017 Financial Results

By | News, Quarterly Reports

NAPERVILLE, ILLINOIS, December 20, 2017 – Track Group, Inc. (OTCQX: TRCK), a global leader in offender tracking and monitoring services, today announced financial results for its fiscal year ended September 30, 2017.  The Company posted revenue of $29.7M, an increase of 9.3% over last year, adjusted EBITDA of $3.6M up 82.1% compared to FY2016 and Net Cash provided by Operating Activities of $4.1M an increase of 357%.  The Company’s reorganization and consolidation initiatives had a predictable impact on these results.

  • Revenue Up 9%
  • Adjusted EBITDA Up 82%
  • Net Cash From Operating Activities Up 357%

“We’re happy to report a very strong finish to a great fiscal 2017, with year-over-year growth in key financial categories including our best quarter ever for Adjusted EBITDA,” said Guy Dubois, Track Group’s Chairman and CEO. “With our fantastic new line-up of smartphone-based monitoring applications including BACtrack for criminal justice, we’re looking forward to a great 2018, and with the launch of our new device-agnostic operating platform getting underway right now, we couldn’t be more excited as we begin to deliver our vision for the future.”

Financial Highlights

  • Total revenue in FY2017 up 9.3% over last year ($29.7M vs. $27.2M)
  • Total operating expenses for the year ended 30 Sept 2017 are flat ($20.5M) vs. last year ($20.4M) despite the fact that the Company incurred restructuring costs, an impairment of intangible assets, and a loss on the sale of assets which, in aggregate, totaled approximately $1.8M for the year just ended
  • Adjusted EBITDA in FY2017 finished at $3.6M up 82.1% compared to $2.0M for FY2016
  • Adjusted EBITDA for the quarters of fiscal 2017 improved sequentially each quarter
    • Q1 or 31 Dec 2016 Adj EBITDA = $0.41M
    • Q2 or 31 March 2017 Adj EBITDA = $0.64M
    • Q3 or 30 June 2017 Adj EBITDA = $1.24M
    • Q4 or 30 Sept 2017 Adj EBITDA = $1.35M
  • Net Cash Provided by Operating Activities
    • For year ended 30 Sept 2017 = $4.1M
    • For year ended 30 Sept 2016 = $0.9M
    • Up 357% or nearly five-fold
  • Net loss attributable to shareholders in FY2017 improved to ($4.7M) up 44% compared to ($8.5M) for FY2016

Business Highlights

  • The Company completed a major operational restructuring in 2017, which included the consolidation of key operational functions into its new Chicagoland Headquarters
  • Launch of the Company’s next generation operating platform is underway
  • Major smartphone application development initiatives were completed in 2017 and launches are currently underway including remote alcohol monitoring and domestic violence solutions
  • Key customer accounts are stable and growing

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