Annual
Report
on Form 10-K
2021
www.mixtelematics.com
Financial results at a glance
Consolidated results
(in thousands, except percentages, per share data and number of subscribers)
Year Ended March 31, | ||||||
2019 | 2020 | 2021 | ||||
Number of subscribers | 750,455 | 818,487 | 744,677 | |||
Revenue | $ | 143,705 | $ | 145,650 | $ | 126,894 |
Subscription revenue | 123,150 | 127,570 | 113,351 | |||
Hardware and other revenue | 20,555 | 18,080 | 13,543 | |||
Operating income | 24,291 | 21,048 | 18,198 | |||
Operating income margin | 16.9 % | 14.5 % | 14.3 % | |||
Non-GAAP net income (1) | $ | 18,277 | $ | 15,625 | $ | 11,897 |
Earnings per ordinary share | ||||||
Basic | 0.03 | 0.02 | 0.03 | |||
Diluted | 0.03 | 0.02 | 0.03 | |||
Earnings per American Depository Share | ||||||
Basic | 0.66 | 0.50 | 0.66 | |||
Diluted | 0.63 | 0.48 | 0.65 | |||
Non-GAAP net income per ordinary share - | 0.03 | 0.03 | 0.02 | |||
Diluted (1) | ||||||
Non-GAAP net income per American Depository | 0.78 | 0.69 | 0.53 | |||
Share - Diluted (1) | ||||||
Adjusted EBITDA (1) | 41,483 | 41,726 | 37,168 | |||
Cash flow from operating activities | 31,455 | 28,178 | 38,572 | |||
Free cash flow (1) | 12,070 | 7,806 | 29,918 | |||
Cash and cash equivalents | $ | 26,941 | $ | 17,953 | $ | 45,489 |
- Non-GAAPnet income, non-GAAP net income per diluted ordinary share, non-GAAP net income per diluted American Depository Share, Adjusted EBITDA and Free cash flow are non-GAAP measures. Refer to "Forward looking statements and use of non-GAAP measures - Use of non-GAAP measures in this Annual Report" for further information regarding these non- GAAP measures.
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Segment information (in thousands)
Year Ended March 31, | |||||||
2019 | 2020 | 2021 | |||||
Subscription revenue | |||||||
Africa | $ | 70,503 | $ | 70,886 | $ | 62,453 | |
Europe | 10,221 | 11,682 | 12,138 | ||||
Americas | 21,279 | 22,322 | 18,211 | ||||
Middle East and Australasia | 16,439 | 17,389 | 16,558 | ||||
Brazil | 4,654 | 5,181 | 3,922 | ||||
Total Regional Sales Offices | 123,096 | 127,460 | 113,282 | ||||
Central Services Organization | 54 | 110 | 69 | ||||
Total Segment Results | $ | 123,150 | $ | 127,570 | $ | 113,351 | |
Hardware and other revenue | |||||||
Africa | $ | 5,457 | $ | 5,870 | $ | 5,495 | |
Europe | 5,034 | 3,345 | 2,441 | ||||
Americas | 2,646 | 2,207 | 770 | ||||
Middle East and Australasia | 7,089 | 5,741 | 4,679 | ||||
Brazil | 322 | 614 | 142 | ||||
Total Regional Sales Offices | 20,548 | 17,777 | 13,527 | ||||
Central Services Organization | 7 | 303 | 16 | ||||
Total Segment Results | $ | 20,555 | $ | 18,080 | $ | 13,543 | |
Total revenue | |||||||
Africa | $ | 75,960 | $ | 76,756 | $ | 67,948 | |
Europe | 15,255 | 15,027 | 14,579 | ||||
Americas | 23,925 | 24,529 | 18,981 | ||||
Middle East and Australasia | 23,528 | 23,130 | 21,237 | ||||
Brazil | 4,976 | 5,795 | 4,064 | ||||
Total Regional Sales Offices | 143,644 | 145,237 | 126,809 | ||||
Central Services Organization | 61 | 413 | 85 | ||||
Total Segment Results | $ | 143,705 | $ | 145,650 | $ | 126,894 | |
Segment Adjusted EBITDA | |||||||
Africa | $ | 35,238 | $ | 33,103 | $ | 31,781 | |
Europe | 4,931 | 5,603 | 6,260 | ||||
Americas | 11,097 | 10,370 | 7,077 | ||||
Middle East and Australasia | 10,610 | 11,031 | 9,751 | ||||
Brazil | 2,007 | 2,366 | 1,495 | ||||
Total Regional Sales Offices | 63,883 | 62,473 | 56,364 | ||||
Central Services Organization | (11,411) | (9,175) | (7,553) | ||||
Total Segment Results | $ | 52,472 | $ | 53,298 | $ | 48,811 |
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The following table (shown in thousands) reconciles total Segment Adjusted EBITDA to income before tax expense for the periods shown:
Year Ended March 31, | ||||||||
2019 | 2020 | 2021 | ||||||
Segment Adjusted EBITDA | $ | 52,472 | $ | 53,298 | $ | 48,811 | ||
Corporate and consolidation entries | (8,631) | (8,366) | (8,879) | |||||
Loss contingency (1) | 15 | (233) | - | |||||
Expected credit losses (2) | 64 | - | - | |||||
Operating lease costs (3) | (988) | (1,610) | (1,652) | |||||
Product development costs (4) | (1,449) | (1,363) | (1,112) | |||||
Depreciation and amortization | (16,368) | (19,972) | (16,559) | |||||
Impairment of long-lived assets | (62) | (6) | (8) | |||||
Stock-based compensation costs | (511) | (660) | (1,273) | |||||
(Increase)/decrease in restructuring costs (5) | (221) | 1 | (1,055) | |||||
Net profit on sale of property and equipment | 43 | 270 | (13) | |||||
Net foreign exchange gains/(losses) | 28 | (610) | (959) | |||||
Net interest income | 233 | 67 | (72) | |||||
Income before tax expense for the year | $ | 24,625 | $ | 20,816 | $ | 17,229 | ||
Description of reconciling items:
- For segment reporting purposes, a loss contingency (51% probability), had been raised prior to fiscal 2019. As of March 31, 2020, the loss contingency was no longer needed because an outflow was considered remote. For U.S. GAAP, this loss contingency was never recognized because the recognition requirements of ASC 450 Contingencies had never been met. Therefore, in order to reconcile Segment Adjusted EBITDA to net income before taxes, the increases/decreases to the loss contingency, recognized for segment reporting purposes, needed to be added/deducted.
- For segment reporting purposes, in fiscal 2019 the allowance for doubtful accounts was determined using an expected credit loss model; whereas for U.S. GAAP purposes, an incurred loss model was used. This resulted in a higher bad debts expense in fiscal 2019 for segment reporting purposes, than that recognized in income before taxes. From fiscal 2020, an expected credit loss model is applied for U.S. GAAP purposes, as a result of the early adoption of ASC 326 Financial Instruments - Credit Losses, which is why there is no longer a reconciling item.
- For the purposes of calculating Segment Adjusted EBITDA, operating leases have been capitalized, except for leases with a term of no more than 12 months or leases of low value assets. Where operating leases are capitalized for segment reporting purposes, the amortization of the right-of-use asset and the interest on the operating lease liability are excluded from the Segment Adjusted EBITDA. Therefore, in order to reconcile Segment Adjusted EBITDA to net income before taxes, the total lease expense in respect of operating leases needs to be deducted.
- For segment reporting purposes, product development costs, which do not meet the capitalization requirements under ASC 730 Research and Development or under ASC 985 Software, are capitalized and amortized. The amortization is excluded from Segment Adjusted EBITDA. In order to reconcile Segment Adjusted EBITDA to net income before taxes, product development costs capitalized for segment reporting purposes need to be deducted.
- During fiscal 2019, restructuring costs of $0.1 million were recognized in each of the Middle East and Australasia segment, and the Africa segment. During fiscal 2021, $0.7 million, $0.2 million, $0.1 million and $0.1 million of the restructuring costs related to the CSO, Africa, North America and Middle East and Australasia reporting segments, respectively.
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MiX Telematics Ltd. published this content on 15 June 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 June 2021 07:57:01 UTC.