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Departamento de Correccion y Rehabilitacion de Puerto Rico Signs New Contract with Track Group, Inc.

By | News

NAPERVILLE, IL – Track Group, Inc. (OTCQX: TRCK), a global leader in providing criminal justice agencies with offender tracking and monitoring services, announced today that the Departamento de Correccion y Rehabilitacion de Puerto Rico signed a new agreement with the Company to provide GPS Tracking products and services commencing on July 9, 2018 thru June 30, 2019; renewable for two (2) additional years.

The previous agreement signed between the Departamento de Correccion y Rehabilitacion de Puerto Rico and the Company, was solely for the GPS tracking of domestic violence offenders. Under the new agreement, Track Group will continue to monitor this offender population, but will also provide GPS tracking for the pretrial and probation populations.

“Our commitment to the Departamento de Correccion y Rehabilitacion de Puerto Rico
is the same today as it was when we began our partnership over six (6) years ago,” said Derek Cassell, Track Group’s CEO. “Which is to provide them with the most effective GPS tracking technology for their specific program needs; combined with our unparalleled customer service to help ensure compliance among the offender populations.”

For more information about this contract award or any monitoring products and services offered by Track Group, contact Matt Swando at 877-260-2010.

About Track Group (trackgrp.com)
Track Group designs, manufactures, and markets location tracking devices and develops and sells a variety of related software, services, accessories, networking solutions, and monitoring applications for the criminal justice market. 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.

Media Contact:
Matt Swando, Track Group
877-260-2010
matthew.swando@trackgrp.com

Track Group Reports 3rd Quarter Fiscal 2018 Financial Results

By | News, Quarterly Reports

NAPERVILLE, ILLINOIS – Track Group, Inc. (OTCQX: TRCK), a global leader in offender tracking and monitoring services, today announced financial results for its third quarter ended June 30, 2018 (the “Third Quarter”). The Company posted gross profit of $4.2M, on total revenue of $7.7M, for a gross margin of 55%. In addition, the Third Quarter adjusted EBITDA came in at $1.16M.

“We’re thrilled to report record levels of active devices during our Third Quarter,” said Derek Cassell, Track Group’s CEO. “The implementation of a number of new customer opportunities combined with the record device levels positions us well for the remainder of the calendar year.”

BUSINESS AND FINANCIAL HIGHLIGHTS

  • Revenue for the Third Quarter ($7.7M) is up approximately 4% compared to the same period last year.
  • Gross Profit for the Third Quarter increased approximately 13% from last year ($4.2M vs. $3.7M) which led to Gross Profit for the 9 months ended June 30, 2018 being up 12% compared to the prior year ($12.7M vs $11.3M). As a result, gross margin for the Third Quarter and the 9 months ended June 30, 2018 was 55% and 56%, respectively, up considerably from the gross margin of 51% for both periods last year.
  • The quarterly operating loss of ($0.7M) is among the lowest in over three years, and allowed the Company to improve the 9 months ended June 30, 2018 operating loss to ($1.8M) down by 57% compared to the same period last year ($4.1M), due to a combination of a strong Gross Profit results and lower Operating Expenses.
  • Adjusted EBITDA in the Third Quarter finished at ($1.16M), which led to Adjusted EBITDA for the 9 months ended June 30, 2018 increasing 75% ($4.0M) compared to the same period last year ($2.3M).
  • Net loss, attributable to shareholders, for the 9 months ended June 30, 2018 was ($4.6M) compared to a loss of ($3.5M) for the same period last year due to a gain on settlement of a contingent liability of $3.2M in the same period last year. Without the gain on settlement of the contingent liability in 2017, loss attributable to shareholders would have been $6.7M for the 9 months ended June 30, 2017, compared to $4.6M in 2018.
  • Net Cash Provided by Operating Activities remained strong for the 9 months ended June 30, 2018 ($5.3M) compared to the same period of fiscal year 2017 ($2.9M), or up 81%.
  • On July 19, 2018, the Company and Conrent Invest S.A. (“Conrent”) agreed to extend the maturity date to the earlier of April 1, 2019 or the date upon which the principal and interest is repaid for the Amended and Restated Unsecured Facility Agreement dated June 30, 2015 between the Company and Conrent.
  • On July 23, 2018, the Company announced the introduction of BACtrack, a mobile alcohol monitoring system that integrates a smartphone app and a law enforcement-grade, handheld breathalyzer to provide breath alcohol content.

FULL ARTICLE >

Track Group, Inc. Introduces Mobile Breath Alcohol Monitoring System

By | News

NAPERVILLE, IL – Track Group, Inc. (OTCQX: TRCK), a global leader in providing community corrections agencies with offender tracking and monitoring services, today announced the introduction of BACtrack, a mobile alcohol monitoring system that integrates a smartphone app and a law enforcement-grade, handheld breathalyzer to provide breath alcohol content (BAC).

“We are excited to announce the newest addition to our product portfolio,” said Derek Cassell, Track Group’s CEO. “Track Group and BACtrack, Inc. have teamed up to develop a specifically designed alcohol monitoring device for criminal justice – making it an innovative solution for corrections agencies to monitor individuals in the community who are required to abstain from alcohol as a condition of parole, probation or pretrial sentencing.”

BACtrack’s features include a law enforcement-grade fuel cell, uniquely designed mouthpiece, Bluetooth connectivity, GPS location functionality, random/scheduled or manual testing options, video verification on all tests and officer email or text notifications on missed or failed tests.

The smartphone app utilized by the participant is easy-to-use and provides testing reminders and step-by-step testing instructions. Participants are required to take a photo of themselves, which is then stored in the BACtrack software system and utilized for comparison against the breath test videos. This video verification, combined with our uniquely designed mouthpiece, minimizes the risk of testing manipulation.

“The introduction of BACtrack reflects Track Group’s continued commitment to offer the latest, application-based technology to our customers and the market,” said CEO, Derek Cassell, “and also addresses the #1 problem facing agencies with regards to mobile breathalyzers – excessive device replacement costs.”

For more information about this contract award or any monitoring products and services offered by Track Group, contact Matt Swando at 877-260-2010.

About Track Group (trackgrp.com)
Track Group designs, manufactures, and markets location tracking devices and develops and sells a variety of related software, services, accessories, networking solutions, and monitoring applications for the criminal justice market. 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.

Media Contact:
Matt Swando, Track Group
877-260-2010
matthew.swando@trackgrp.com

Track Group Reports 2nd Quarter Fiscal 2018 Financial Results

By | News, Quarterly Reports

NAPERVILLE, ILLINOIS, May 11, 2018 – Track Group, Inc. (OTCQX: TRCK), a global leader in offender tracking and monitoring services, today announced financial results for its second quarter ended March 31, 2018 (the “Second Quarter”). The Company posted gross profit of $4.0M, on total revenue of $7.3M, for a gross margin of 55%. In addition, the Second Quarter adjusted EBITDA came in at $1.3M, up 96% compared to the Second Quarter of FY2017 and total Operating Expenses were $4.7M, down 6%, both of which contributed to the second lowest operating loss ($0.7M) in over three years.

“We’re delighted to follow our fiscal year 2018 record First Quarter results with another strong Quarter” said Derek Cassell, Track Group’s CEO. “We have begun implementing a number of new customer opportunities from our pipeline and expect to see the results of our hard work in our upcoming Third and Fourth Quarters.”

Business and Financial Highlights

  • Revenue for the Second Quarter ($7.3M) is up nominally compared to the same period last year.
  • Gross Profit for the Second Quarter remained flat as compared to last year ($4.0M vs. $4.1M) which led to Gross Profit in the first half of FY2018 being up 12% compared to the prior year ($8.5M vs $7.6M).
  • Total operating expenses for the Second Quarter ($4.7M) are down 6% vs. last year ($5.1M) and has led to a 9% reduction in the first half of FY2018 Operating Expenses compared to the prior year ($9.5M vs $10.5M).
  • The quarterly operating loss of ($0.7M) is the second lowest loss in over three years and allowed the company to improve the first half FY2018 operating loss of ($1.0M) by 64% compared to the same period last year ($2.9M), due to a combination of a strong Gross Profit results and lower Operating Expenses.
  • Adjusted EBITDA in the Second Quarter finished up 96% ($1.3M) compared to last year ($0.6M) and represented the third highest Adjusted EBITDA in over 3 years. The Adjusted EBITDA for the first half of FY2018 is up 170% ($2.8M) compared to the first half of FY2017 ($1.0M).
  • Net loss, attributable to shareholders, for the Second Quarter was ($1.7M) compared to a loss of ($1.6M) for the same quarter last year due to foreign exchange movement.
  • Net Cash Provided by Operating Activities remained strong in the first half of FY2018 ($1.8M) compared to the first half of FY2017 ($2.0M) and ($0.8M) two years ago.
  • Discussions are ongoing regarding the proposed extension of the maturity of the Amended and Restated Unsecured Facility Agreement dated June 30, 2015 between the Company and Conrent Invest S.A.

FULL ARTICLE >

Track Group Reports 1st Quarter Fiscal 2018 Financial Results

By | News, Quarterly Reports

NAPERVILLE, ILLINOIS, February 8, 2018 – Track Group, Inc. (OTCQX: TRCK), a global leader in offender tracking and monitoring services, today announced financial results for its first quarter ended December 31, 2017 (the “First Quarter”). The Company posted gross profit of $4.5M, an increase of 26% over last year on total revenue of $7.5M, a quarterly record Adjusted EBITDA of $1.6M up 286% compared to FY2016 and total operating expenses of $4.8M, a decrease of 11% which reduced the First Quarter operating loss to its lowest level in over three years to ($0.3M).

“We’re delighted to start our fiscal year 2018 off strongly with another quarterly record for Adjusted EBITDA and the fifth consecutive quarter of growth in Adjusted EBITDA,” said Derek Cassell, Track Group’s CEO. “We are looking forward to capitalizing on a number of new customer opportunities in our pipeline so we can continue the top-line growth we have generated over the last three years.”

Business and Financial Highlights

  • The Company announced signing two large contracts totaling in excess of $30M with Marion County Community Corrections and Gendarmeria de Chile, the Republic of Chile’s prison service, shortly after the conclusion of the First Quarter;
  • Gross profit for the First Quarter $4.5M which is the best gross profit in the past five quarters and up 26% over last year ($4.5M vs. $3.5M) on quarterly revenue that was nominally down from the same period last year;
  • Total operating expenses for First Quarter ($4.8M) are down 11% vs. last year ($5.4M) and the 2nd lowest quarterly operating expenses in the last two fiscal years;
  • The lowest quarterly operating loss ($0.3M) in over three years and a 82% improvement over the quarterly operating loss of ($1.9M) in the same period last year due to a combination of a strong gross profit result and lower operating expenses;
  • Adjusted EBITDA in the First Quarter finished at a quarterly record of $1.6M up 286% compared to $0.4M last year and represented the fifth consecutive quarter that Adjusted EBITDA has increased;
  • Net loss attributable to shareholders in the First Quarter ended December 31, 2017 improved to ($1.0M) or 60% compared to ($2.6M) for the same quarter last year;
  • Net cash provided by operating activities remained positive at $0.3M in the First Quarter compared to $2.1M for last year principally due to the timing of working capital expenditures; and
  • The new CEO, Derek Cassell, appointed January 1, 2018, has realigned the management team to execute the Company’s strategy including the appointment of an industry veteran, Matt Swando, as the new Vice President of Sales and Marketing.

FULL ARTICLE >

Gendarmeria de Chile Signs New Electronic Monitoring Contract with Track Group

By | News

NAPERVILLE, IL – Track Group, Inc. (OTCQX: TRCK), a global leader in providing criminal justice agencies with offender tracking and monitoring services, today announced that Gendarmeria de Chile, the Republic of Chile’s uniformed prison service, signed a new agreement with the Company to provide electronic monitoring products and services commencing on October 18, 2017 for a period of 365 days totaling up to approximately $10.6 million.

The previous multi-year agreement signed between Gendarmeria de Chile and the Company’s Chilean subsidiary in 2013, ended in October of 2017 although services have continued uninterrupted.

“The commitment we made to Gendarmeria de Chile and Ministerio de Justica in 2013 remains the same today,” said Derek Cassell, Track Group’s CEO. “Which is to provide the best and most effective technology combined with extraordinary service with the ultimate goal of helping to alleviate prison overcrowding, while ensuring compliance among domestic violence, pre-trial and early release offenders.”

Services provided by Track Group as part of the contract include the provision of monitoring software, supply, installation, replacement and withdrawal of surveillance devices, training for Gendarmería de Chile’s personnel, and maintenance of the Surveillance Center and the Regional Surveillance Support Center.

“I’m very proud to say that together with Gendarmeria de Chile and Ministerio de Justica, we built what has become known as one of the most successful offender monitoring programs in the world,” said Francisco Javier Toro Lyng, General Manager of Track Group’s Chilean Office. “We are thrilled this relationship will now have an opportunity to continue.”

For more information about this contract award or any monitoring products and services offered by Track Group, contact Matt Swando at 877-260-2010.

About Track Group (trackgrp.com)
Track Group designs, manufactures, and markets location tracking devices and develops and sells a variety of related software, services, accessories, networking solutions, and monitoring applications for the criminal justice market. 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.

Media Contact:
Matt Swando, Track Group
877-260-2010
matthew.swando@trackgrp.com

Track Group Awarded Marion County Community Corrections Monitoring Contract

By | News

NAPERVILLE, IL – Track Group, Inc. (OTCQX: TRCK), a global leader in providing community corrections agencies with offender tracking and monitoring services, today announced that Marion County’s Advisory Board has approved and signed a multi-year contract for the Company to continue providing the Agency with products and services for offenders valued at approximately $20 Million across the full range of sentences under the Agency’s oversight.

“This is a major accomplishment for Track Group and especially our dedicated team in Indianapolis, Indiana that underscores the great work we’ve done together with this important customer,” said Derek Cassell, Track Group’s CEO. “We are very proud of our thriving relationship with Marion County and the State of Indiana that’s entering its tenth year in 2018.”

Track Group has worked with Marion County Community Corrections since 2008. The electronic monitoring program is one of several cost-effective options the County uses to provide additional intervention, sanctions and structure for offenders so they are more likely to succeed upon release.

For more information about this contract award or any monitoring products and services offered by Track Group, contact Matt Swando at 877-260-2010.

About Track Group (trackgrp.com)
Track Group designs, manufactures, and markets location tracking devices and develops and sells a variety of related software, services, accessories, networking solutions, and monitoring applications for the criminal justice market. 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.

Media Contact:
Matt Swando, Track Group
877-260-2010
matthew.swando@trackgrp.com

Track Group Board Names Derek Cassell As Next CEO – Guy Dubois To Remain Chairman, Effective January 1, 2018

By | News

NAPERVILLE, IL — January 4, 2018 —Track Group, Inc. (OTCQX: TRCK), Track Group today announced that its Board of Directors has appointed Derek Cassell as Chief Executive Officer effective January 1, 2018. Guy Dubois will remain Track Group’s Chairman.

“This is the perfect time for Derek Cassell to become Track Group’s next Chief Executive Officer.  We’ve selected a very strong leader at a time when Track Group is in a very strong position,” said Track Group’s Chairman and CEO Guy Dubois. “Derek is unique in his ability to translate vision and strategy into world-class execution, bringing together teams and ecosystems to drive results.  He is a champion of the Track Group culture and has an incredible ability to inspire, energize, and connect with employees, partners, and customers. Derek’s vision, strategy and execution track record is exactly what Track Group needs as we enter our next chapter, which I am confident will be even more impactful and exciting than our last.”

Cassell joined Track Group in 2014 through the acquisition of Emerge Monitoring and has moved quickly through the company’s ranks. He most recently served as Track Group’s President, leading the company to consistent revenue and margin growth.  Prior to Track Group, he was Executive Vice President of Emerge Monitoring, which was part of the Bankers Surety Team. Cassell has over 20 years experience providing correctional solutions to the criminal justice industry including ADT Correctional Services, G4S Justice Services and ElmoTech Inc.

“I joined Track Group 3 years ago because I wanted to be a part of a company where I believed the possibilities were limitless. Today, I am even more convinced that Track Group is that company,” said Derek Cassell. “Guy Dubois’ vision and leadership have built Track Group into one of the most important companies in the industry; a company fiercely committed to delivering for its customers, shareholders, partners, and employees. The opportunity that lies ahead for Track Group is enormous, and the ability to lead this next chapter is deeply humbling and incredibly exhilarating. I am focused on accelerating the innovation and execution that our customers need from us. Their success will continue to drive us.  At a time when our industry is on the cusp of more disruption than we’ve ever encountered, I couldn’t be more confident in our ability to win, or more honored to lead this great company.”

Track Group also announced that Guy Dubois, currently CEO and Chairman of Track Group’s Board of Directors, would remain Chairman.  He will devote his time to supporting Cassell and Track Group’s senior leadership team and continue to drive the Company’s strategic vision.

About Track Group (trackgrp.com)
Track Group, Inc. (OTCQX: TRCK), designs, manufactures, and markets location tracking devices and develops and sells a variety of related software, services, accessories, networking solutions, and monitoring applications for the criminal justice market. 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.

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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