Monthly Archives

February 2022

Track Group, Inc. Partners with Socrates Software LLC

By News, Quarterly Reports

NAPERVILLE, IL – Track Group, Inc. (OTCQX: TRCK), a global leader in offender tracking and monitoring services, announced today it has entered an exclusive partnership with Socrates Software LLC to deploy Socrates 360, a multipurpose app designed to better prepare justice-involved individuals for success in the community after incarceration.

The United States has the largest prison population in the world, with over 2 million Americans incarcerated. Roughly 600,000 of them return to communities each year with limited access to tools that support their reintegration. Track Group and Socrates aim to change that by providing education, life skills, and vocational training to prisoners, parolees, and probationers, both during and after their sentences.

“With Socrates 360, we are combining technology and skills training to help participants succeed after being released from custody,” said Derek Cassell, Track Group’s CEO. “I believe by providing tailored education, employment, and life skills courses, we can better assist government agencies tasked with helping people get back on their feet.”


Track Group Reports 1st Quarter Fiscal 2022 Financial Results

By News, Quarterly Reports

Total Revenue up 2%, Operating Income Declines 58% and Net Income Reversal

NAPERVILLE, ILLINOIS – Track Group, Inc. (OTCQX: TRCK), a global leader in offender tracking and monitoring services, today announced financial results for its fiscal quarter ended December 31, 2021 (“Q1 FY22”). In Q1 FY22, the Company posted (i) total revenue of $9.6M, an increase of approximately 2% over total revenue of $9.4M for the quarter ended December 31, 2020 (“Q1 FY21”); (ii) Q1 FY22 operating income of $0.6M, representing a decline of 58% compared to Q1 FY21 operating income of $1.4M, and (iii) a net loss attributable to common shareholders of $0.3M in Q1 FY22 compared to net income attributable to common shareholders of $1.3M in Q1 FY21.

“The conditions under which we operate today remain challenging as we adjust to supply chain constraints and the telecommunication carrier’s transition from 3G to 5G, despite setbacks created for a number of industries. As a result, our financial results for the first quarter ended December 31, 2021, were adversely impacted. Notwithstanding, we will continue to adapt to these challenges, add new products, and customers, who remain in need of and are confident in our ability to innovate solutions,” said Derek Cassell, Track Group’s CEO.


Financial Highlights

  • Total revenue of $9.6M for Q1 FY22, up 2% compared to Q1 FY21 revenue of $9.4M.
  • Gross profit of $4.8M in the Q1 FY22, down approximately 8% compared to gross profit of $5.2M for Q1 FY21, due to increases in certain costs of revenue, including, the amortization expense for the new software platform.
  • Operating income in Q1 FY22 of $0.6M, down approximately 58% compared to operating income of $1.4M for Q1 FY21, due to the higher cost of revenue and the increase in certain operating expenses.
  • Adjusted EBITDA for Q1 FY22 of $2.2M, down 17% compared to adjusted EBITDA of $2.7M for Q1 FY21. Adjusted EBITDA in Q1 FY22 as a percentage of revenue also decreased to 22.9%, compared to 28.2% for Q1 FY21. The reduction in adjusted EBITDA is due to the decline in operating income offset by the increase in total depreciation and amortization.
  • Cash balance for Q1 FY22 of $8.6M, up 47% compared to a cash balance of $5.9M for Q1 FY21, and up 2% compared to a cash balance of $8.4M for the quarter ended September 30, 2021.
  • Net loss attributable to shareholders for the Q1 FY22 was ($0.3M), compared to net income attributable to shareholders of $1.3M in Q1 FY21, a change principally attributable to the decline in the Company’s operating income and a swing from a currency exchange gain to a loss.