MiX Telematics Reports Third Quarter Fiscal 2021 U.S. GAAP Financial Results
MiX Telematics Limited (“MiX Telematics”) (NYSE: MIXT, JSE: MIX), a leading global provider of fleet and mobile asset management solutions delivered as Software-as-a-Service (“SaaS”), today announced financial results, in accordance with accounting principles generally accepted in the United States (“GAAP”), for the third quarter, which ended December 31, 2020.
“MiX Telematics reported third quarter results highlighted by sequential growth in subscription revenue and very strong profitability and free cash flow. We saw modestly improved performance in our premium and light fleet segments for the second straight quarter even as we continue to manage through the impact of COVID-19 on certain key vertical markets," said Stefan Joselowitz, Chief Executive Officer of MiX Telematics.
Joselowitz continued, “As we look ahead, we are very encouraged by the strategic conversations we are having with large fleet operators on the greater role telematics will play in their future operations. This gives us confidence MiX is well positioned to return to attractive subscription revenue growth rates once the economy normalizes.”
Financial Results for the Three Months Ended December 31, 2020
Subscription Revenues: Subscription revenues were
The majority of our revenues and subscription revenues are derived from currencies other than the U.S. Dollar. Accordingly, the strengthening of the U.S. Dollar against these currencies (in particular against the South African Rand) following currency volatility arising from the economic disruption caused by COVID-19, has negatively impacted our revenue and subscription revenues reported in U.S. Dollars. Compared to the third quarter of fiscal year 2020, the South African Rand weakened by
Total Revenues: Total revenues were
The impact of translating foreign currencies to U.S. Dollars at the average exchange rates during the third quarter of fiscal 2021 led to a
Gross Margin: Gross profit was
Income From Operations: Income from operations was
Net Income and Earnings Per Share: Net income was
Earnings per diluted ordinary share was 1.1 U.S. cents, compared to 0.9 U.S. cents in the third quarter of fiscal 2020. For the third quarter of fiscal 2021, the calculation was based on diluted weighted average ordinary shares in issue of 559.8 million compared to 562.4 million diluted weighted average ordinary shares in issue during the third quarter of fiscal 2020. On a ratio of 25 ordinary shares to one American Depositary Share (“ADS”), earnings per diluted ADS was 26 U.S. cents compared to 23 U.S. cents in the third quarter of fiscal 2020.
The Company’s effective tax rate was negative
Adjusted EBITDA: Adjusted EBITDA, a non-GAAP measure, was
Non-GAAP Net Income and Non-GAAP Net Income Per Share: Non-GAAP net income was
Cash and Cash Equivalents and Cash Flow: At December 31, 2020, the Company had
Net cash provided by operating activities for the three months ended December 31, 2020 was
Net cash utilized by financing activities amounted to
During the quarter, the South African Rand strengthened against the U.S. Dollar from R17.00 at September 30, 2020 to R14.65 at December 31, 2020 and as a result, cash increased by
Quarterly Dividend
The most recent dividend payment of 4 South African cents (0.3 U.S. cents) per ordinary share and 1 South African Rand (7 U.S. cents) per ADS was paid on November 23, 2020 to shareholders on record on November 20, 2020. A dividend of 4 South African cents per ordinary share and 1 South African Rand per ADS will be paid on March 9, 2021 to shareholders on record as of the close of business on February 19, 2021.
The details with respect to the dividends declared for holders of our ADSs are as follows:
Ex dividend on New York Stock Exchange (NYSE) |
Thursday, February 18, 2021 |
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Record date |
Friday, February 19, 2021 |
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Approximate date of currency conversion |
Monday, February 22, 2021 |
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Approximate dividend payment date |
Tuesday, March 9, 2021 |
Share Repurchases
No shares were repurchased during the three months ended December 31, 2020.
Business Outlook
Due to the uncertainty surrounding the level of business disruption as a result of the spread of COVID-19, the Company has suspended its practice of issuing financial guidance and as a consequence no guidance has been issued for the full 2021 fiscal year.
Conference Call Information
MiX Telematics management will host a conference call and audio webcast at 8:00 a.m. (Eastern Daylight Time) and 3:00 p.m. (South African Time) on Thursday, January 28, 2021 to discuss the Company’s financial results and current business outlook:
- The live webcast of the call will be available at the “Investor Information” page of the Company’s website, http://investor.mixtelematics.com.
- To access the call, dial +1-877-451-6152 (within the United States) or 0 800 983 831 (within South Africa) or +1-201-389-0879 (outside of the United States). The conference ID is 13715107.
- A replay of this conference call will be available for a limited time at +1-844-512-2921 (within the United States) or +1-412-317-6671 (within South Africa or outside of the United States). The replay conference ID is 13715107.
- A replay of the webcast will also be available for a limited time at http://investor.mixtelematics.com.
About MiX Telematics Limited
MiX Telematics is a leading global provider of fleet and mobile asset management solutions delivered as SaaS to customers managing over 749,000 assets in approximately 120 countries. The Company’s products and services provide enterprise fleets, small fleets and consumers with solutions for safety, efficiency, risk and security. MiX Telematics was founded in 1996 and has offices in South Africa, the United Kingdom, the United States, Uganda, Brazil, Australia, Romania, Thailand and the United Arab Emirates as well as a network of more than 130 fleet partners worldwide. MiX Telematics shares are publicly traded on the Johannesburg Stock Exchange (JSE: MIX) and MiX Telematics American Depositary Shares are listed on the New York Stock Exchange (NYSE: MIXT). For more information visit www.mixtelematics.com.
Forward-Looking Statements
This press release includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation, statements regarding our position to execute on our growth strategy, and our ability to expand our leadership position. These forward-looking statements include, but are not limited to, Company’s beliefs, plans, goals, objectives, expectations, assumptions, estimates, intentions, future performance, other statements that are not historical facts and statements identified by words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “estimates” or words of similar meaning. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in, or suggested by, these forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved.
Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of known and unknown risks and uncertainties, some of which are beyond our control including, without limitation:
- the severity and duration of the COVID-19 pandemic, the pandemic’s economic impact on the geographical locations of our regional service organizations and central service organization, the impact of the pandemic on our customers’ ability to meet their financial obligations, our ability to implement cost containment and business recovery strategies during the pandemic, local and foreign government regulations implemented to combat the pandemic and any future developments on the pandemic;
- our ability to attract, sell to and retain customers;
- our ability to improve our growth strategies successfully, including our ability to increase sales to existing customers;
- our ability to adapt to rapid technological change in our industry;
- competition from industry consolidation;
- loss of key personnel or our failure to attract, train and retain other highly qualified personnel;
- our ability to integrate any businesses we acquire;
- the introduction of new solutions and international expansion;
- our dependence on key suppliers and vendors to manufacture our hardware;
- our dependence on our network of dealers and distributors to sell our solutions;
- businesses may not continue to adopt fleet management solutions;
- our future business and system development, results of operations and financial condition;
- expected changes in our profitability and certain cost or expense items as a percentage of our revenue;
- changes in the practices of insurance companies;
- the impact of laws and regulations relating to the Internet and data privacy;
- our ability to protect our intellectual property and proprietary technologies and address any infringement claims;
- our ability to defend ourselves from litigation or administrative proceedings relating to labor, regulatory, tax or similar issues;
- significant disruption in service on, or security breaches of, our websites or computer systems;
- our dependence on third-party technology;
- fluctuations in the value of the South African Rand;
- economic, social, political, labor and other conditions and developments in South Africa and globally;
- our ability to issue securities and access the capital markets in the future; and
- other risks set forth in our filings with the U.S. Securities Exchange Commission.
We assume no obligation to update any forward-looking statements contained in this press release and expressly disclaim any obligation to do so, whether as a result of new information, future events or otherwise, except as required by law.
Use of Non-GAAP Financial Measures
This press release and the accompanying tables include references to Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP net income and non-GAAP net income per share, free cash flow and constant currency, which are non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses these measures, please see Annexure A titled “Non-GAAP Financial Measures”. A reconciliation of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with GAAP is provided in Annexure A.
MIX TELEMATICS LIMITED CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share amounts) (Unaudited) |
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March 31,
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December 31,
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ASSETS |
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Current assets: |
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|
|
|
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Cash and cash equivalents |
|
$ |
17,953 |
|
|
$ |
43,999 |
|
Restricted cash |
|
699 |
|
|
780 |
|
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Accounts receivables, net |
|
24,100 |
|
|
19,483 |
|
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Inventory, net |
|
3,271 |
|
|
3,476 |
|
||
Prepaid expenses and other current assets |
|
7,375 |
|
|
7,789 |
|
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Total current assets |
|
53,398 |
|
|
75,527 |
|
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Property and equipment, net |
|
30,019 |
|
|
26,514 |
|
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Goodwill |
|
37,923 |
|
|
44,388 |
|
||
Intangible assets, net |
|
15,007 |
|
|
18,585 |
|
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Deferred tax assets |
|
3,108 |
|
|
3,992 |
|
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Other assets |
|
4,200 |
|
|
4,543 |
|
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Total assets |
|
$ |
143,655 |
|
|
$ |
173,549 |
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|
|
|
|
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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|
|
|
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Short-term debt |
|
$ |
2,367 |
|
|
$ |
2,892 |
|
Accounts payables |
|
5,251 |
|
|
4,511 |
|
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Accrued expenses and other liabilities |
|
14,839 |
|
|
21,517 |
|
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Deferred revenue |
|
5,077 |
|
|
7,670 |
|
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Total current liabilities |
|
27,534 |
|
|
36,590 |
|
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Deferred tax liabilities |
|
11,436 |
|
|
8,448 |
|
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Long-term accrued expenses and other liabilities |
|
5,660 |
|
|
5,389 |
|
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Total liabilities |
|
44,630 |
|
|
50,427 |
|
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|
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Stockholders’ equity: |
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MiX Telematics Limited stockholders’ equity |
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Preferred stock: 100 million shares authorized but not issued |
|
— |
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|
— |
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Common stock: 600.9 million and 605.1 million no-par value shares issued and outstanding as of March 31, 2020 and December 31, 2020, respectively |
|
66,522 |
|
|
67,376 |
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Less treasury stock at cost: 54 million shares as of March 31, 2020 and December 31, 2020 |
|
(17,315) |
|
|
(17,315) |
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Retained earnings |
|
67,482 |
|
|
75,381 |
|
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Accumulated other comprehensive (loss)/income |
|
(11,070) |
|
|
3,314 |
|
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Additional paid-in capital |
|
(6,599) |
|
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(5,639) |
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Total MiX Telematics Limited stockholders’ equity |
|
99,020 |
|
|
123,117 |
|
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Non-controlling interest |
|
5 |
|
|
5 |
|
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Total stockholders’ equity |
|
99,025 |
|
|
123,122 |
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|
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|
|
|
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Total liabilities and stockholders’ equity |
|
$ |
143,655 |
|
|
$ |
173,549 |
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MIX TELEMATICS LIMITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited) |
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Three Months Ended December 31, |
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Nine Months Ended December 31, |
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2019 |
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2020 |
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2019 |
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2020 |
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Revenue |
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Subscription |
$ |
32,362 |
|
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$ |
29,072 |
|
|
$ |
96,099 |
|
|
$ |
82,570 |
|
Hardware and other |
4,107 |
|
|
5,032 |
|
|
13,314 |
|
|
9,979 |
|
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MiX Telematics Limited
NYSE:MIXTMIXT RankingsMIXT Latest NewsMIXT Stock DataAbout MIXTfounded in 1996, mix telematics’s products and services provide enterprise fleets, small fleets and consumers with solutions for efficiency, safety, compliance and security. the company delivers its solutions to customers in over 120 countries, across six continents. over 523,000 mobile assets – from trucks and buses, to vans, cars, motorbikes and trailers – are actively managed by mix telematics. in addition to employing in excess of 1,000 people, mix telematics has a growing network of more than 130 fleet partners worldwide. the company has offices in south africa, the united kingdom, the united states, uganda, brazil, australia and the united arab emirates. mix telematics shares are publicly traded on the johannesburg stock exchange (jse: mix) and on the new york stock exchange (nyse: mixt).
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