Track Group, Inc. (TRCK) saw its loss widen to $8.50 million, or $0.83 a share for the year ended Sep. 30, 2016. In the previous year period, the company reported a loss of $5.67 million, or $0.56 a share. On the other hand, adjusted net income for the year stood at $2 million, or $0.19 a share compared with $1.22 million or $0.12 a share, a year ago.
Revenue during the year surged 30.79 percent to $27.19 million from $20.79 million in the previous year. Gross margin for the year expanded 110 basis points over the previous year to 61.27 percent. Operating margin for the year stood at negative 20.81 percent as compared to a negative 39.56 percent for the previous year.
Operating loss for the year was $5.66 million, compared with an operating loss of $8.23 million in the previous year.
However, the adjusted EBITDA for the year stood at $2 million compared with $1.22 million in the prior year period. At the same time, adjusted EBITDA margin improved 145 basis points in the year to 7.34 percent from 5.89 percent in the last year period.
"Track Group's progress on the operational front is further complemented with a solid trajectory of growth to our top line," said Guy Dubois, chairman and chief executive officer of Track Group. "Our revenues have consistently improved from $12.3M in 2014, $20.8M in 2015 and now I'm pleased to report $27.2M this past year. Track Group has now operated cash flow positive for a full year and expects further growth as we continue to develop the executive team and sales force."
Track Group, Inc. forecasts adjusted revenue to be in the range of $33 million to $35 million for fiscal year 2017.
Operating cash flow turns positive
Track Group, Inc. has generated cash of $0.91 million from operating activities during the year as against cash outgo of $0.92 million in the last year.
The company has spent $5.06 million cash to meet investing activities during the year as against cash outgo of $4.24 million in the last year.
Cash flow from financing activities was $0.98 million for the year as against cash outgo of $0.99 million in the last year period.
Cash and cash equivalents stood at $1.77 million as on Sep. 30, 2016, down 63.90 percent or $3.13 million from $4.90 million on Sep. 30, 2015.
Working capital drops significantly
Track Group, Inc. has witnessed a decline in the working capital over the last year. It stood at $0.34 million as at Sep. 30, 2016, down 95.35 percent or $7.05 million from $7.40 million on Sep. 30, 2015. Current ratio was at 1.03 as on Sep. 30, 2016, down from 2.26 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 19 days for the year from 73 days for the last year. Days sales outstanding went down to 91 days for the year compared with 111 days for the same period last year.
Days inventory outstanding has decreased to 9 days for the year compared with 56 days for the previous year period. At the same time, days payable outstanding went down to 81 days for the year from 94 for the same period last year.
Debt moves up
Track Group, Inc. has witnessed an increase in total debt over the last one year. It stood at $33.59 million as on Sep. 30, 2016, up 8.41 percent or $2.61 million from $30.99 million on Sep. 30, 2015. Total debt was 64.20 percent of total assets as on Sep. 30, 2016, compared with 57.35 percent on Sep. 30, 2015. Debt to equity ratio was at 3.87 as on Sep. 30, 2016, up from 2.16 as on Sep. 30, 2015.
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