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Catch up on the latest information about Track Group from around the globe.

May 01
Love48

Track Group Inc. Announces Completion of Comprehensive Recapitalization and Debt Refinancing

By News, Quarterly Reports

NAPERVILLE, ILLINOIS – Track Group, Inc. (OTCQB: TRCK) a global leader in offender tracking and monitoring services, today announced the successful completion of a transformational series of comprehensive recapitalization and refinancing transactions that materially strengthen its balance sheet, enhance financial flexibility, and right-size its capital structure to enable the company to grow shareholder value over the long-term.

Transaction(s) Highlights

  • Net Debt* Reduced by ~$27 million (~63% decrease) through materially discounted debt settlement (~50%), reducing Net Leverage* From 7.2 to 2.6, financed through:

    • New Credit Facility: 5-year $21 million term loan, funded at close, and availability under a $1 million interest line and $2 million ABL revolver
      • Interest Rate: 13.5% fixed (11% cash, 2.5% PIK)
      • Mandatory Amortization: Years 1 & 2 = 0%, Thereafter = 5%
    • PIPE: ~$10.3 million raised at $0.35 per share, (29,471,429 shares)
      • Participants: TRCK Management 1.5%, Carlson Ridge Capital, LLC (“CRC”‘) 49.25%, JCP Investment Management, LLC (“JCP”) 49.25%
  • Debt Maturity Extended To 5-Years
  • Annual Cash Interest Savings of ~$200,000 anticipated over the next 12-months
  • Board, Management, Creditor, & Shareholder Alignment with the new Board representing ~75% of go-forward ownership, management participation in the PIPE, and creditor alignment through 2.5% equity warrant coverage

*Net Debt = (Long-Term Debt + Accrued Unpaid Interest – Cash & Equivalents); Net Leverage = (Net Debt divided by TTM Adjusted EBITDA)

The transactions were supported by the Company’s new lender, Chatham Capital, CRC, JCP, and ADS Securities LLC, a subsidiary of Abu Dhabi Developmental Holding Company PJSC.

Derek Cassell, Chief Executive Officer, said “These transactions represent a significant milestone for us. By materially reducing leverage, extending maturities, and bringing in aligned, long-term partners with proven financial and industry-specific accumen, we’ve strengthened our financial and strategic foundations and are well-positioned to grow shareholder value.”

FULL ARTICLE >

Feb 13
Love48

Track Group Reports 1st Quarter Fiscal 2026 Financial Results

By News, Quarterly Reports

NAPERVILLE, ILLINOIS – Track Group, Inc. (OTCQB: TRCK), a global leader in offender tracking and monitoring services, today announced financial results for its fiscal quarter ended December 31, 2025 (“Q1 FY26”). In Q1 FY26, the Company posted (i) total revenue of $9.1 Million (“M”), an increase of approximately 5.2% over total revenue of $8.7M for the quarter ended December 31, 2024 (“Q1 FY25”); (ii) Q1 FY26 operating income of $0.8M compared to Q1 FY25 operating income of $0.1M; and (iii) net income attributable to common shareholders of $0.5M in Q1 FY26 compared to net loss attributable to common shareholders of ($2.0M) in Q1 FY25.

“Our Q1 FY26 results reflect continued momentum as we reinvest in our core technology and expand our footprint with new contract wins,” said Derek Cassell, CEO of Track Group. “Revenue growth in key regions like Florida and Illinois, along with the strategic realignment of our global operations, reinforces our position as a trusted leader in GPS electronic monitoring. While higher costs affected gross profit and Adjusted EBITDA this quarter, our return to net profitability and stronger operating income show that our long-term strategy is working. We are confident that these investments lay the foundation for future growth and even greater value to our clients and shareholders.”

 

Financial Highlights

  • Total Q1 FY26 revenue of $9.1M increased approximately 5.2% compared to Q1 FY25 revenue of $8.7M. The increase in revenue was driven principally by an increase in people assigned to monitoring for clients in Florida and Illinois. This increase was partially offset by a revenue decrease for our Chilean subsidiary, which was sold November 1, 2025.
  • Gross profit of $4.3M in Q1 FY26 decreased approximately 3.5% compared to Q1 FY25 gross profit of $4.4M due to an increase in device repair costs and server costs, partially offset by an increase in revenue.
  • Operating income in Q1 FY26 of $0.8M increased compared to the operating income of $0.1M in Q1 FY25. The increase in net income in Q1 FY26 is primarily due to an increase revenue and a gain on dissolution of our Israeli subsidiary.
  • Adjusted EBITDA for Q1 FY26 of $1.21M, decreased compared to $1.25M for Q1 FY25 due to an increase in cost of revenue. Adjusted EBITDA in Q1 FY26 as a percentage of revenue decreased to 13.4%, compared to 14.4% for Q1 FY25 for the same reason.
  • Unrestricted cash balance of $3.6M for Q1 FY26 decreased compared to $4.1M for Q1 FY25. The change in cash position was principally due to increased capitalized software costs.
  • Net income attributable to shareholders in FY26 was $0.5M compared to net loss of ($2.0M) in FY25, a change principally attributable to an increase in operating income and positive currency exchange rate movements.

FULL ARTICLE >

Dec 19
Love48

Track Group Reports Fiscal 2025 Financial Results

By News, Quarterly Reports

NAPERVILLE, ILLINOIS – 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, 2025 (“FY25”). In FY25, the Company posted (i) total revenue of $35.2 Million (“M”), a decrease of approximately 5.0% over total revenue of $36.9M for the year ended September 30, 2024 (“FY24”); (ii) FY25 operating income of $1.2M compared to FY24 operating loss of ($1.9M); and (iii) net loss attributable to common shareholders of ($1.9M) in FY25 compared to net loss attributable to common shareholders of ($3.1M) in FY24.

“While fiscal year 2025 shows a modest revenue decline largely due to the sale of our Chilean subsidiary, we delivered strong improvements across gross profit, operating income, and Adjusted EBITDA. These gains reflect the strength of our core business and the completion or near-completion of key investments to our core products, monitoring center, and cloud platform. With recent contract wins and a solid pipeline, we expect these initiatives to drive continued revenue from new business growth in fiscal year 2026” said Derek Cassell, Track Group’s CEO.

 

Financial Highlights

  • Total FY25 revenue of $35.2M decreased approximately 5.0% compared to FY24 revenue of $36.9M. The decrease in revenue was driven principally by a decrease in people assigned to monitoring for clients in Virginia and Washington D.C. and due to our recently sold Chilean subsidiary.
  • Gross profit of $17.5M in FY25 increased approximately 2% compared to FY24 gross profit of $17.2M due to lower monitoring center costs and lower communication costs, partially offset by a decrease in revenue.
  • Operating income in FY25 of $1.2M increased compared to the operating loss of ($1.9M) in FY24. The increase in net income in FY25 is primarily due to a decrease in cost of revenue and a decrease in operating expense, partially offset by a decrease in revenue.
  • Adjusted EBITDA for FY25 of $5.8M, increased compared to $5.4M for FY24 due to an increase in gross profit and a decrease in operating expenses. Adjusted EBITDA in FY25 as a percentage of revenue increased to 16.4%, compared to 14.6% for FY24 for the same reasons.
  • Cash balance of $4.1M for FY25 increased compared to $3.6M for FY24. The change in cash position was principally due to a decrease in payments to vendors, partially offset by a decrease in collections from customers.
  • Net loss attributable to shareholders in FY25 was ($1.9M) compared to net loss of ($3.1M) in FY24, a decrease principally attributable to an increase in operating income, partially offset by increases in interest expense and income tax expense.

FULL ARTICLE >

May 13
Love45

Track Group Reports 2nd Quarter Fiscal 2024 Financial Results

By News, Quarterly Reports

NAPERVILLE, ILLINOIS – Track Group, Inc. (OTCQB: TRCK), a global leader in offender tracking and monitoring services, today announced financial results for its fiscal quarter ended March 31, 2024 (“Q2 FY24”). In Q2 FY24, the Company posted (i) total revenue of $9.0 Million (“M”), an increase of approximately 8% over total revenue of $8.3M for the quarter ended March 31, 2023 (“Q2 FY23”); (ii) Q2 FY24 gross profit of $4.0M also representing an increase of approximately 6% over Q2 FY23 of $3.7M; (iii) Q2 FY24 operating loss of ($1.0M) compared to Q2 FY23 operating loss of ($0.9M); and (iv) net loss attributable to common shareholders of ($1.9M) in Q2 FY24 compared to ($1.5M) in Q2 FY23.

 

Financial Highlights

  • Total Q2 FY24 revenue of $9.0M was up 8% compared to Q2 FY23 revenue of $8.3M. Revenue for the six months ended March 31, 2024 (“6M FY24’) of $18.0M was up approximately 5% compared to revenue of $17.2M for the six months ended March 31, 2023 (“6M FY23”). This positive performance can be attributed to increased activity among customers in Illinois, Canada, and Brazil, partially offset by decreases in revenue from customers in Michigan and Chile.
  • Gross Profit of $4.0M rose by 6% ($0.2M) in Q2 FY24 compared to Q2 FY23. Gross profit for 6M FY24 was $8.2M compared to gross profit of $7.9M for 6M FY23. This improvement stems from factors like increased revenue, reduced communication costs and lower lost, stolen or damaged costs. However, it was partly offset by higher device repair expenses, higher monitoring center costs and increased hardware purchases.
  • Operating loss in Q2 FY24 of ($1.0M) was up approximately 12% compared to ($0.9M) in Q2 FY23. Operating loss for 6M FY24 of ($1.1M) was up approximately 15% compared to ($1.0M) for 6M FY23. This rise in operating loss is primarily due to higher operating expenses. Operating expenses were up $0.3M in Q2 FY24 compared to Q2 FY23, primarily due to the estimated accrued liability related to an ongoing contract dispute of approximately $0.5M.
  • Adjusted EBITDA for Q2 FY24 was $0.8M compared to $0.5M for Q2 FY23. Adjusted EBITDA for 6M FY24 was $1.9M compared to Adjusted EBITDA for 6M FY23 of $1.7M primarily due to negative currency exchange rate movements of $0.6M in Q2 FY24 compared to Q2 FY23. Adjusted EBITDA in 6M FY24 as a percentage of revenue remained at 10%, compared to 6M FY23.
  • Cash balance of $3.6M for Q2 FY24 declined 10% compared to $4.1M at September 30, 2023. The modest decrease in cashposition was due to a negative effect of exchange rate changes on cash of $0.3M and a decrease in net cash provided by operating activities of approximately $0.1M.
  • Net loss attributable to shareholders in Q2 FY24 was ($1.9M) compared to ($1.5M) in Q2 FY23, an increase of $0.4M. Net lossattributable to shareholders in 6M FY24 was ($1.9M), compared to ($1.4M) for 6M FY23, a change principally attributable to negative currency exchange rate movements and an estimated accrued liability related to an ongoing contract dispute of approximately $0.5M.

FULL ARTICLE >

Feb 08
Love47

Track Group Reports 1st Quarter Fiscal 2024 Financial Results

By News, Quarterly Reports

NAPERVILLE, ILLINOIS – Track Group, Inc. (OTCQB: TRCK), a global leader in offender tracking and monitoring services, today announced financial results for its fiscal quarter ended December 31, 2023 (“Q1 FY24”). In Q1 FY24, the Company posted (i) total revenue of $9.0 Million (“M”), an increase of approximately 1% over total revenue of $8.9M for the quarter ended December 31, 2022 (“Q1 FY23”); (ii) Q1 FY24 gross profit of $4.2M also representing an increase of approximately 1% over Q1 FY23 of just under $4.2M; (iii) Q1 FY24 operating loss of ($0.2M) compared to Q1 FY23 operating loss of ($0.1M); and (iv) net income attributable to common shareholders of $461 in Q1 FY24 compared to $36,384 in Q1 FY23.

 

Financial Highlights

  • Total Q1 FY24 revenue of $9.0M was up 1% compared to Q1 FY23 revenue of $8.9M. Additionally, when compared to the preceding quarter ending September 30, 2023 (“Q4 FY23”), revenues rose by $0.4M, reflecting a 4% increase. This positive performance can be attributed to increased activity among customers in Illinois, Canada, and Brazil, partially offset by decreases in revenue from customers in Puerto Rico, Chile, and Saudi Arabia.
  • Gross Profit rose by 1% ($0.1M), exceeding $4.2M in Q1 FY24 compared to Q1 FY23. When compared to the preceding quarter ending on September 30, 2023 (Q4 FY23), gross profit rose by $0.5M, reflecting a 13% increase. This improvement stems from factors like increased revenue and reduced communication and hardware costs. However, it was partly offset by higher device repair expenses and increased depreciation and amortization.
  • Operating loss in Q1 FY24 of ($0.2M) was up approximately 30% compared to ($0.1M) in Q1 FY23. This rise in Q1 FY24 operating loss is primarily due to higher operating expenses. Nevertheless, when compared to the previous quarter ending on September 30, 2023 (Q4 FY23), the overall operating loss decreased by $0.1M, indicating a 33% improvement.
  • Adjusted EBITDA for Q1 FY24 of $1.1M declined approximately $0.1M compared to $1.2M for Q1 FY23, primarily due to the increase in certain operating expenses. Adjusted EBITDA in Q1 FY24 as a percentage of revenue declined to 12%, compared to 13% for Q1 FY23 for the same reasons. However, when compared to the previous quarter ending on September 30, 2023 (Q4 FY23) Adjusted EBITDA increased by 4%.
  • Cash balance of $3.7M for Q1 FY24 declined 8% compared to $4.1M at September 30, 2023. The modest decrease in cash position was due to a decrease in net cash provided by operating activities of approximately $1.7M offset by a decrease in net cash used in investing activities of $1.3M.
  • Net income attributable to shareholders in Q1 FY24 was $461 compared to $36,384 in Q1 FY23, a slight decrease principally attributable to a decline in operating income and higher net interest expense, offset by currency exchange gains and a reduction in tax expense.

FULL ARTICLE >

Dec 20
Love48

Track Group Reports Fiscal 2023 Financial Results

By News, Quarterly Reports

NAPERVILLE, ILLINOIS – 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, 2023 (“FY23”). In FY23, the Company posted (i) total revenue of $34.5 Million (“M”), a decrease of approximately 6.7% over total revenue of $37.0M for the year ended September 30, 2022 (“FY22”); (ii) FY23 operating loss of ($1.5M) compared to FY22 operating loss of ($2.1M); and (iii) net loss attributable to common shareholders of ($3.4M) in FY23 compared to net loss attributable to common shareholders of ($7.4M) in FY22. “Notwithstanding the challenges in the fiscal year ended September 30, 2023, the Company’s recently awarded contracts, growth with existing customers, and our pipeline for new business are more robust than at any other time in my tenure as CEO since January 1, 2018. Due to a rising trend in bail reform, our new statewide pretrial contract is showing growth, as are some of the other ten (10) new contracts won in FY23. Our expertise supervising high-risk populations uniquely positions us to address bipartisan concerns across the U.S., where bail reform initiatives are taking shape. As these contracts are fully implemented in the next fiscal year, we reiterate that the Company anticipates growth in revenue and operating income,” said Derek Cassell, Track Group’s CEO.

 

Financial Highlights

  • Total FY23 revenue of $34.5M was down approximately 6.7% compared to FY22 revenue of $37.0M. The drop in revenue was caused by less activity at customers in the U.S. and Canada offset by increases in revenue for our customer in Chile.
  • Gross profit of $15.3M in FY23 was down approximately 12% compared to FY22 gross profit of $17.4M due to a decrease in revenue, higher device repair costs and nominally higher depreciation and amortization costs offset by lower monitoring center costs, lower communication costs, lower commission costs and lower product sales costs.
  • Operating loss in FY23 of ($1.5M) improved compared to the operating loss of ($2.1M) in FY22. The improvement in net loss in FY23 is primarily due to the impairment charge of $1.7M associated with the discontinuance of two product lines in FY22 and the decrease in depreciation and amortization that resulted from the impairment.
  • Adjusted EBITDA for FY23 of $3.8M, compared to $6.6M for FY22 due to the drop in revenue, gross profit and the increase in certain operating expenses. Adjusted EBITDA in FY23 as a percentage of revenue declined to 11.1%, compared to 18.0% for FY22 for the same reasons.
  • Cash balance of $4.1M for FY23, compared to $5.3M for FY22. The change in cash position was principally due to the reinvestment in monitoring technology, offset by a decrease in net operating assets, mainly accounts receivable and prepaid expenses, deposits and other assets.
  • Net loss attributable to shareholders in FY23 was ($3.4M) compared to net loss of ($7.4M) in FY22, a change principally attributable to the changes in the Company’s operating performance.

FULL ARTICLE >

Aug 10
Love47

Track Group Reports 3rd Quarter Fiscal 2023 Financial Results

By News, Quarterly Reports

NAPERVILLE, ILLINOIS – Track Group, Inc. (OTCQB: TRCK), a global leader in offender tracking and monitoring services, today announced financial results for its fiscal quarter ended June 30, 2023 (“Q3 FY23”). In Q3 FY23, the Company posted (i) total revenue of $8.7 Million (“M”), a decrease of approximately 3% over total revenue of $9.0M for the quarter ended June 30, 2022 (“Q3 FY22”); (ii)Q3 FY23 operating loss of ($0.3M) compared to Q3 FY22 operating loss of ($0.5M); and (iii) net loss attributable to commonshareholders of ($0.7M) in Q3 FY23 compared to a net loss attributable to common shareholders of ($3.6M) in Q3 FY22. “While a relatively steady period of performance, the quarter ending June 30, 2023 saw improvements in revenue, adjusted EBITDA, operating loss and net loss attributable to common shareholders compared to Q2 of FY23. Among the 10 contracts awarded to Track Group this fiscal year, in Q3 we began mobilization planning for a newly awarded statewide pretrial contract estimated at $1.6M in annual revenue with a $15M budget over a 5-year term. Track Group continues to be seen as a leader in high-risk offender and defendant monitoring and supporting services. As this new program and others like it begin to roll out, we anticipate that the Company will continue to grow both revenue and operating income for the remainder of FY23.” said Derek Cassell, Track Group’s CEO.

 

Financial Highlights

  • Total Q3 FY23 revenue of $8.7M was down 3% compared to Q3 FY22 revenue of $9.0M. Revenue for the nine months endedJune 30, 2023 (“9M FY23”) of $25.9M was also down approximately 8% compared to revenue of $28.1M for the nine monthsended June 30, 2022 (“9M FY22”). The drop in revenue was driven principally by fluctuations in court proceedings where active devices are assigned to customers in Illinois and California, partially offset by an increase in monitoring revenues for customers in Indiana and Louisiana.
  • Gross profit of $3.7M in Q3 FY23 was down approximately 8% compared to Q3 FY22 gross profit of $4.0M. Gross profit for the 9M FY23 was $11.6M compared to gross profit of $13.3M for 9M FY22, due to a decline in revenue of approximately $2.2M, partially offset by a decrease in communication services and monitoring center costs.
  • An operating loss in Q3 FY23 of ($0.3M) improved nominally compared to an operating loss of ($0.5M) in Q3 FY22. An operating loss for the 9M FY23 of ($1.3M) compared to operating income of $0.1M in 9M FY22. The decline of approximately $1.3M in operating income for 9M FY23 is attributable to the decline in gross profit offset by a decrease of approximately 3% in operating expenses.
  • Adjusted EBITDA for Q3 FY23 was $1.1M, compared to $1.3M for Q3 FY22. Adjusted EBITDA for 9M FY23 was $2.8M compared to the Adjusted EBITDA for 9M FY22 of $5.3M, a decrease of $2.4M due to the drop in revenue, gross profit offset by a decrease in certain operating expenses. Adjusted EBITDA for 9M FY23 as a percentage of revenue declined to 10.9%, compared to 18.8% for 9M FY22 for the same reasons.
  • Cash balance was $3.8M on June 30, 2023, compared to $5.3M on September 30, 2022. The decrease in cash was due to anincrease in net cash provided by operating activities of approximately $3M offset by purchases of monitoring equipment and the repayment of debts.
  • Net loss attributable to common shareholders in Q3 FY23 was ($0.7M) compared to net loss attributable to shareholders of ($3.6M) in Q3 FY22. Net loss attributable to common shareholders for the 9M FY23 was ($2.1M), compared to net loss of ($3.5M) for the 9M FY22. This decrease in net loss is primarily due to positive currency exchange rate movements and a litigation settlement of $1.6M recorded in the third quarter of 2022, partially offset by lower operating income and a vendor forgiving $0.6M of accrued expenses in 2022.

FULL ARTICLE >

May 11
Love48

Track Group Reports 2nd Quarter Fiscal 2023 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 fiscal quarter ended March 31, 2023 (“Q2 FY23”). In Q2 FY23, the Company posted (i) total revenue of $8.3 Million (“M”), a decrease of approximately 12% over total revenue of $9.5M for the quarter ended March 31, 2022 (“Q2 FY22”); (ii)Q2 FY23 operating loss of ($0.9M) compared to Q2 FY22 operating income of $0.0M; and (iii) net loss attributable to commonshareholders of ($1.5M) in Q2 FY23 compared to a net income attributable to common shareholders of $0.5M in Q2 FY22. “While we celebrated a number of new contracts in Q2, the quarter ended March 31, 2023, was challenging as some of our larger programs, which increased use during the pandemic, have returned to pre-covid utilization rates. In addition to being re-awarded two (2)key long-term incumbent accounts, we were awarded eight (8) new contracts in Q2, among them a new statewide program estimatedat $1.6M in annual revenue. We anticipate that the Company will grow both revenue and operating income for the remainder of FY23and are seeing such growth so far in the month of April 2023. Lastly, the Company worked closely with its largest debtholder torenegotiate the terms of an amended facility agreement on April 26, 2023, extending the maturation date to July 2027, amidst a difficultbanking environment,” said Derek Cassell, Track Group’s CEO.

 

Financial Highlights

  • Total Q2 FY23 revenue of $8.3M was down 12% compared to Q2 FY22 revenue of $9.5M. Revenue for the six months ended March 31, 2023 (“6M FY23”) of $17.2M was also down approximately 10% compared to revenue of $19.1M for the six months ended March 31, 2022 (“6M FY22”). The drop in revenue was caused by less activity at customers in Illinois, California, Bahamas, Canada and decreases in revenue for customers in Saudi Arabia, partially offset by increases in monitoring revenue for customers in Nevada and Panama.
  • Gross profit of $3.7M in Q2 FY23 was down approximately 18% compared to Q2 FY22 gross profit of $4.5M. Gross profit for the 6M FY23 was $7.9M compared to gross profit of $9.3M for 6M FY22, due to a decline in revenue of approximately $1.9M and higher device repair and server costs partially offset by lower depreciation and amortization expense and reduced monitoring center costs.
  • An operating loss in Q2 FY23 of ($0.9M) compared to operating income of $0.0M in Q2 FY22. An operating loss for the 6M FY23 of ($1.0M) compared to operating income of $0.6M in 6M FY22. The decline of approximately $1.6M in operating income for 6M FY23 is attributable to the decline in gross profit and an increase of approximately 2% in operating expenses.
  • Adjusted EBITDA for Q2 FY23 was $0.5M, compared to $1.7M for Q2 FY22. Adjusted EBITDA for 6M FY23 was $1.7M compared to the Adjusted EBITDA for 6M FY22 of $3.9M, a decrease of $2.2M due to the drop in revenue, gross profit and the increase in certain operating expenses. Adjusted EBITDA in for 6M FY23 as a percentage of revenue declined to 10.1%, compared to 20.6% for 6M FY22 for the same reasons.
  • Cash balance was $4.0M for Q2 FY23, compared to $5.3M at September 30, 2022. The decrease in cash was due to an increase in net cash provided by operating activities of approximately $2.1M offset by purchases of monitoring equipment and the repayment of debts.
  • Net loss attributable to common shareholders in Q2 FY23 was ($1.5M) compared to net income attributable to shareholders of $0.5M in Q2 FY22. Net loss attributable to common shareholders for the 6M FY23 was ($1.4M), compared to net income of $0.1M for the 6M FY22 a change principally attributable to a decline in operating income, offset by higher currency exchange gains, lower net interest expense and a reduction in tax expense.

FULL ARTICLE >

Feb 09
Love48

Track Group Reports 1st Quarter Fiscal 2023 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 fiscal quarter ended December 31, 2022 (“Q1 FY23”). In Q1 FY23, the Company posted (i) total revenue of $8.9 Million (“M”), a decrease of approximately 8% over total revenue of $9.6M for the quarter ended December 31, 2021 (“Q1 FY22”); (ii) Q1 FY23 operating loss of ($0.1M) compared to Q1 FY22 operating income of $0.6M; and (iii) net income attributable to common shareholders of just over $0.0M in Q1 FY23 compared to a net loss attributable to common shareholders of ($0.3M) in Q1 FY22. “The quarter ended December 31, 2022, was, as expected, challenging given the allocation of newly manufactured devices to replace the remaining 3G network devices in the field. With the phase out of 3G behind the Company, and our infrastructure reinvestment in place, we expect to implement new programs in 2023 which will enable the Company to grow both revenue and operating income compared to FY22,” said Derek Cassell, Track Group’s CEO.

 

Financial Highlights

  • Total Q1 FY23 revenue of $8.9M was down 8% compared to Q1 FY22 revenue of $9.6M. The drop in revenue was caused by allocation of most newly manufactured LTE devices to replace remaining 3G devices in the U.S., less activity at customers in Illinois, California, Bahamas and Canada partially offset by increases in revenue for customers in Saudi Arabia, Nevada and Panama.
  • Gross profit of $4.2M in Q1 FY23 was down approximately 13% compared to Q1 FY22 gross profit of $4.8M due to a decline in revenue of approximately $0.7M and higher device repair and server costs partially offset by lower depreciation and amortization expense and reduced monitoring center costs.
  • An Operating loss in Q1 FY23 of ($0.1M) compared to operating income of $0.6M in Q1 FY22. The decline of approximately $0.7M in operating income in Q1 FY23 is attributable to the decline in gross profit and an increase of approximately 3% in operating expenses.
  • Adjusted EBITDA for Q1 FY23 of $1.2M, compared to $2.2M for Q1 FY22 due to the drop in revenue, gross profit and the increase in certain operating expenses. Adjusted EBITDA in Q1 FY23 as a percentage of revenue declined to 13.3%, compared to 22.9% for Q1 FY22 for the same reasons.
  • Cash balance of $5.5M for Q1 FY23, compared to $5.3M at September 30, 2022. The modest increase in cash position was due to an increase in net cash provided by operating activities of approximately $2.3M offset by purchases of monitoring equipment and the repayment of debts.
  • Net income attributable to shareholders in Q1 FY23 was just over $0.0M compared to a net loss of attributable to shareholders of ($0.3M) in Q1 FY22, a change principally attributable to a decline in operating income offset by currency exchange gains, lower net interest expense and a reduction in tax expense.

FULL ARTICLE >

Dec 16
Love46

Track Group Reports Fiscal 2022 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 fiscal year ended September 30, 2022 (“FY22”). In FY22, the Company posted (i) total revenue of $37.0 Million (“M”), a decrease of approximately 7% over total revenue of $39.7M for the year ended September 30, 2021 (“FY21”); (ii) FY22 operating loss of ($2.1M) compared to FY21 operating income of $4.7M; and (iii) net loss attributable to common shareholders of ($7.4M) in FY22 compared to net income attributable to common shareholders of $3.4M in FY21.

“The fiscal year ended September 30, 2022 was challenging given supply chain constraints and reinvestment in our infrastructure caused by the phase out of 3G networks in the U.S. and our results reflect both. However, due to the adaptive strategies deployed early in the fiscal year, by early September 2022, we were able to resume manufacturing new devices toward targeted, pre-pandemic volumes. As a result, we have commenced implementation of new programs and are confident in our ability to support the expected growth from our customers in FY23. Consequently, we look forward to much improved results in the coming year,” said Derek Cassell, Track Group’s CEO.

 

Financial Highlights

  • Total FY22 revenue of $37.0M was down 7% compared to FY21 revenue of $39.7M. The drop in revenue was caused by the limitations on manufacturing new devices, less activity at customers in the U.S. and Bahamas offset by increases in revenue for customers in Chile and Saudi Arabia.
  • Gross profit of $17.4M in FY22 was down approximately 18% compared to FY21 gross profit of $21.1M due to over $0.8M increase in depreciation and amortization costs associated with implementation of the new software platform as well as higher server costs and communication costs offset by lower lost, stolen and damaged device expenses.
  • Operating loss in FY22 of ($2.1M) compared to operating income of $4.7M in FY21. Approximately 80% of the total change to the loss in FY22 is attributable to the decline in gross profit and the impairment charge of $1.7M associated with the discontinuance of two product lines.
  • Adjusted EBITDA for FY22 of $6.6M, compared to $10.3M for FY21 due to the drop in revenue, gross profit and the increase in certain operating expenses. Adjusted EBITDA in FY22 as a percentage of revenue declined to 18.0%, compared to 25.9%for FY21 for the same reasons.
  • Cash balance of $5.3M for FY22, compared to $8.4M for FY21. The change in cash position was due to a drop in net cash provided by operating activities and the absence of new loans in FY22 offset by a decline in capital expenditures or the cash used in investing activities.
  • Net loss attributable to shareholders in FY22 was ($7.4M) compared to net income of $3.4M in FY21, a change principally attributable to the changes in the Company’s operating performance.

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