References in this announcement to “R” are to South African Rand and references to “U.S. Dollars” and “$” are to United States Dollars. Unless otherwise stated MiX Telematics has translated U.S. Dollar amounts from South African Rand at the exchange rate of R12.2854 per $1.00, which was the R/$ exchange rate reported by Oanda.com as of June 30, 2015.
First Quarter Highlights:
- Total subscription revenue of R271.8 million ($22.1 million), grew 15% year over year
- Subscribers increased by 13% year over year, bringing the total to over 523,000 subscribers at June 30, 2015
- Adjusted EBITDA of R65.3 million ($5.3 million), representing a 19% Adjusted EBITDA margin
- Company maintains guidance for subscription revenue, total revenue and Adjusted EBITDA for the full 2016 fiscal year which ends March 31, 2016.
MIDRAND, South Africa--(BUSINESS WIRE)--MiX Telematics Limited (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 for
its first quarter of fiscal year 2016, which ended June 30, 2015.
"Our results for the quarter demonstrate our ability to deliver ongoing
value to customers across the globe. We posted solid revenue growth,
profitability and operating cash flow," said Stefan Joselowitz, Chief
Executive Officer of MiX Telematics. "We continue to take a balanced
approach to growth and profits and are pleased to report that our
adjustments to our overhead cost structures are yielding savings without
undermining our productivity. With our growing stable of features
including flexible analytics and extended mobile capabilities, we
continue to capitalize on our position as the leading global provider of
cloud-based fleet management and asset tracking solutions."
Financial performance for the three months
ended June 30, 2015
Revenue: Total revenue was R344.1 million ($28.0 million), an
increase of 7.8% compared to R319.2 million ($26.0 million) for the
first quarter of fiscal year 2015. Subscription revenue was R271.8
million ($22.1 million), an increase of 14.9% compared with
R236.6 million ($19.3 million) for the first quarter of fiscal year
2015. Growth in subscription revenue was driven primarily by an increase
of over 60,000 subscribers, which resulted in an increase in subscribers
of 13.1% from June 2014 to June 2015. Hardware and other revenue was
R72.3 million ($5.9 million), a decrease of 12.4% compared to R82.6
million ($6.7 million) for the first quarter of fiscal year 2015.
Gross Margin: Gross profit was R241.9 million ($19.7 million), as
compared to R211.6 million ($17.2 million) for the first quarter of
fiscal year 2015. Gross profit margin was 70.3%, compared to 66.3% for
the first quarter of fiscal year 2015. In the first quarter of fiscal
2016, subscription revenue which generates a higher gross profit margin
than hardware and other revenue, contributed 79.0% of total revenue
compared to 74.1% in the first quarter of fiscal 2015.
Operating Margin: Operating profit was R32.6 million ($2.7
million), compared to R22.5 million ($1.8 million) for the first quarter
of fiscal year 2015. Operating margin was 9.5%, compared to 7.1% for the
first quarter of fiscal year 2015.
Adjusted EBITDA: Adjusted EBITDA, a non-IFRS measure, was R65.3
million ($5.3 million) compared to R52.0 million ($4.2 million) for the
first quarter of fiscal year 2015. Adjusted EBITDA margin, a non-IFRS
measure, for the first quarter of fiscal year 2015 was 19.0%, compared
to 16.3% for the first quarter of fiscal year 2015.
Profit for the period and earnings per share: Profit for the
period was R31.1 million ($2.5 million), compared to R16.1 million
($1.3 million) in the first quarter of fiscal year 2015. Earnings per
diluted ordinary share were 4 South African cents, compared to 2 South
African cents in the first quarter of fiscal year 2015. For the first
quarter of 2015, the calculation was based on diluted weighted average
ordinary shares in issue of 803.7 million compared to 804.4 million
diluted weighted average ordinary shares in issue during the first
quarter of fiscal 2015.
The Company's effective tax rate for the quarter was 31.7% in comparison
to 32.6% in the first quarter of fiscal 2015.
On a U.S. Dollar basis, and using the June 30, 2015 exchange rate of
R12.2854 per U.S. Dollar, and at a ratio of 25 ordinary shares to one
American Depositary Share ("ADS"), profit for the period was $2.5
million, or 8 U.S. cents per diluted ADS.
Adjusted earnings for the period and adjusted earnings per share:
Adjusted earnings for the period, a non-IFRS measure, was R23.7 million
($1.9 million), compared to R16.4 million ($1.3 million) in the first
quarter of fiscal 2015 and excludes a net foreign exchange gain of R11.0
million ($0.9 million). During the first quarter of fiscal 2015 a net
foreign exchange loss of R0.2 million ($0.02 million) was incurred.
Adjusted earnings per diluted ordinary share, also a non-IFRS measure,
were 3 South African cents, compared to 2 South African cents in the
first quarter of fiscal year 2015.
On a U.S. Dollar basis, and using the June 30, 2015 exchange rate of
R12.2854 per U.S. Dollar, and at a ratio of 25 ordinary shares to one
ADS, adjusted earnings for the period was $1.9 million, or 6 U.S. cents
per diluted ADS.
Statement of Financial Position and Cash Flow: At June 30, 2015,
the Company had R959.2 million ($78.1 million) of cash and cash
equivalents, compared to R945.4 million ($77.0 million) in the fourth
quarter of fiscal year 2015. The Company generated R35.2 million ($2.9
million) in net cash from operating activities for the three months
ended June 30, 2015 and invested R38.3 million ($3.1 million) in capital
expenditures during the quarter, leading to negative free cash flow, a
non-IFRS measure, of R3.1 million ($0.3 million) for the first quarter
of fiscal year 2016, compared with negative free cash flow of
R22.1 million ($1.8 million) for the first quarter of fiscal year 2015.
An explanation of non-IFRS measures used in this release is set out in
the Non-IFRS financial measures section of this press release. A
reconciliation of these non-IFRS measures to the most directly
comparable IFRS measures is provided in the financial tables that
accompany this release.
Business Outlook
MiX Telematics has translated U.S. Dollar amounts in this Business
Outlook paragraph from South African Rand at the exchange rate of
R12.6963 per $1.00, which was the R/$ exchange rate reported by
Oanda.com as of August 4, 2015.
Based on information as of today, August 6, 2015, the Company is issuing
the following financial guidance for the full 2016 fiscal year:
-
Revenue - R1,523 million to R1,558 million ($120.0 million to $122.7
million), which would represent revenue growth of 9.6% to 12.1%
compared to fiscal year 2015.
-
Subscription revenue - R1,148 million to R1,168 million ($90.4 million
to $92.0 million), which would represent subscription revenue growth
of 15.0% to 17.0% compared to fiscal year 2015.
-
Adjusted EBITDA - R306 million to R327 million ($24.1 million to $25.8
million), which would represent an increase in Adjusted EBITDA of
11.2% to 18.9% compared to fiscal year 2015.
-
Adjusted earnings per diluted ordinary share of 13.3 to 15.1 South
African cents based on 807 million diluted ordinary shares in issue,
and based on an effective tax rate of 30% to 34%. At a ratio of 25
ordinary shares to one ADS, this equates to adjusted earnings per
diluted ADS of 26 to 30 U.S. cents.
For the second quarter of fiscal year 2016 the Company expects
subscription revenue to be in the range of R276 million to R280 million
($21.7 million to $22.1 million) which would represent subscription
revenue growth of 14.2% to 15.8% compared to the second quarter of
fiscal year 2015.
The key assumptions used in deriving the forecast are as follows:
-
Growth in subscription revenue and vehicles under subscription are
based on expected growth rates related to market conditions and takes
into account growth rates achieved previously.
-
Achieving hardware sales according to expectations. Hardware sales are
dependent on the volumes of bundled solutions selected by customers.
The forecast is the responsibility of the board of directors and has not
been reviewed or reported on by the Company’s external auditors. The
Company’s policy is to give guidance on a quarterly basis, if necessary,
and does not update guidance between quarters.
The information disclosed in this “Business Outlook” paragraph
complies with the disclosure requirements in terms of paragraph 8.38 of
the JSE Listings Requirements which deals with profit forecasts.
Quarterly Reporting Policy in respect of JSE
Listings Requirements
Following the listing of the Company’s ADSs on the New York Stock
Exchange, the Company has adopted a quarterly reporting policy. As a
result of such quarterly reporting the Company is, in terms of paragraph
3.4(b)(ix) of the JSE Listings Requirements, not required to publish
trading statements in terms of paragraph 3.4(b)(i) to (viii) of the JSE
Listings Requirements.
Conference Call Information
MiX Telematics management will also host a conference call and audio
webcast at 8:00 a.m. (Eastern Daylight Time) and 2:00 p.m. (South
African Time) on August 6, 2015 to discuss the Company's financial
results and current business outlook:
-
To access the call, dial 1-888-461-2024 (within the United States) or
0 800 999 558 (within South Africa) or 1-719-325-2362 (outside of the
United States). The conference ID is 5755325.
-
A replay of this conference call will be available for a limited time
at 1-877-870-5176 (within the United States) or 1-858-384-5517 (within
South Africa or outside of the United States). The replay conference
ID is 5755325.
-
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 in more than 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 concerning our financial
guidance for the second quarter and full year of fiscal year 2016, our
position to execute on our growth strategy, and our ability to expand
our leadership position. 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. Actual results may differ materially
from those described in the forward-looking statements and will be
affected by a variety of risks and factors that are beyond our control
including, without limitation, those described under the caption “Risk
Factors” in the Company’s Annual Report on Form 20-F filed with the
Securities and Exchange Commission (the "SEC") for the fiscal year ended
March 31, 2015, as updated by other reports that the Company files with
or furnishes to the SEC. The Company assumes no obligation to update any
forward-looking statements contained in this press release as a result
of new information, future events or otherwise.
Non-IFRS financial measures
Adjusted EBITDA
To provide investors with additional information regarding its financial
results, the Company has disclosed within this press release, Adjusted
EBITDA and Adjusted EBITDA margin. Adjusted EBITDA is a non-IFRS
financial measure, it does not represent cash flows from operations for
the periods indicated and should not be considered an alternative to net
income as an indicator of the Company's results of operations or as an
alternative to cash flows from operations as an indicator of liquidity.
Adjusted EBITDA is defined as the profit for the period before income
taxes, net interest income/(expense), depreciation of property, plant
and equipment including capitalized customer in-vehicle devices,
amortization of intangible assets including capitalized in-house
development costs, share-based compensation costs, transaction costs
arising from the acquisition of a business or investigating strategic
alternatives, restructuring costs, profits/(losses) on the disposal or
impairments of assets or subsidiaries, insurance reimbursements relating
to impaired assets, certain litigation costs, unrealized foreign
exchange gains/(losses) and foreign exchange gains/(losses) related to
the cash proceeds raised through the IPO.
The Company has included Adjusted EBITDA and Adjusted EBITDA margin in
this press release because they are key measures that the Company's
management and Board of Directors use to understand and evaluate its
core operating performance and trends; to prepare and approve its annual
budget; and to develop short- and long-term operational plans. In
particular, the exclusion of certain expenses in calculating Adjusted
EBITDA and Adjusted EBITDA margin can provide a useful measure for
period-to-period comparisons of the Company's core business.
Accordingly, the Company believes that Adjusted EBITDA and Adjusted
EBITDA margin provides useful information to investors and others in
understanding and evaluating its operating results.
The Company's use of Adjusted EBITDA has limitations as an analytical
tool, and you should not consider this performance measure in isolation
from or as a substitute for analysis of the Company's results as
reported under IFRS. Some of these limitations are:
-
although depreciation and amortization are non-cash charges, the
assets being depreciated and amortized may have to be replaced in the
future, and Adjusted EBITDA does not reflect cash capital expenditure
requirements for such replacements or for new capital expenditure
requirements;
-
Adjusted EBITDA does not reflect changes in, or cash requirements for,
the Company's working capital needs;
-
Adjusted EBITDA does not consider the potentially dilutive impact of
equity-based compensation;
-
Adjusted EBITDA does not reflect tax payments that may represent a
reduction in cash available to the Company;
-
Adjusted EBITDA does not reflect the interest expense or the cash
requirements necessary to service interest payments on the Company's
debt or any losses on the extinguishment of the Company's debt;
-
Adjusted EBITDA does not include interest earned on cash and cash
equivalents and other financial assets;
-
Adjusted EBITDA does not include certain foreign currency transaction
gains and losses;
-
Adjusted EBITDA does not include certain non-recurring IPO costs;
-
Adjusted EBITDA does not include transaction costs arising from the
acquisition of a business or investigating strategic alternatives;
-
Adjusted EBITDA does not include certain litigation costs; and
-
other companies, including companies in the Company's industry, may
calculate Adjusted EBITDA differently, which reduces its usefulness as
a comparative measure.
Because of these limitations, you should consider Adjusted EBITDA
alongside other financial performance measures, including operating
profit, profit for the year and the Company's other results.
Adjusted Earnings and Adjusted Earnings Per Share
Adjusted earnings per share is defined as profit attributable to owners
of the parent, MiX Telematics Limited, excluding net foreign exchange
gains/(losses) net of tax, divided by the weighted average number of
ordinary shares in issue during the period.
We have included Adjusted earnings per share in this annual report
because it provides a useful measure for period-to-period comparisons of
the Company's core business by excluding net foreign exchange
gains/(losses) from earnings. Accordingly, we believe that Adjusted
earnings per share provides useful information to investors and others
in understanding and evaluating the Company's operating results.
Free cash flow
Free cash flow is determined as net cash generated from operating
activities less capital expenditure per investing activities.
|
MIX TELEMATICS LIMITED
|
CONDENSED CONSOLIDATED INCOME STATEMENTS
|
|
|
|
|
|
|
South African Rand
|
|
|
|
United States Dollar
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
Three months ended
|
|
|
|
Three months ended
|
|
|
|
Three months ended
|
|
|
|
|
|
|
June 30,
|
|
|
|
June 30,
|
|
|
|
June 30,
|
|
|
|
June 30,
|
Figures are in thousands unless otherwise stated
|
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
|
|
|
Unaudited
|
|
|
|
Unaudited
|
|
|
|
Unaudited
|
|
|
|
Unaudited
|
Revenue
|
|
|
|
|
|
344,128
|
|
|
|
|
319,210
|
|
|
|
|
28,011
|
|
|
|
|
25,983
|
|
Cost of sales
|
|
|
|
|
|
(102,246
|
)
|
|
|
|
(107,628
|
)
|
|
|
|
(8,323
|
)
|
|
|
|
(8,761
|
)
|
Gross profit
|
|
|
|
|
|
241,882
|
|
|
|
|
211,582
|
|
|
|
|
19,688
|
|
|
|
|
17,222
|
|
Other (expenses)/income - net
|
|
|
|
|
|
(598
|
)
|
|
|
|
569
|
|
|
|
|
(49
|
)
|
|
|
|
46
|
|
Operating expenses
|
|
|
|
|
|
(208,717
|
)
|
|
|
|
(189,623
|
)
|
|
|
|
(16,989
|
)
|
|
|
|
(15,435
|
)
|
-Sales and marketing
|
|
|
|
|
|
(46,581
|
)
|
|
|
|
(45,306
|
)
|
|
|
|
(3,792
|
)
|
|
|
|
(3,688
|
)
|
-Administration and other charges
|
|
|
|
|
|
(162,136
|
)
|
|
|
|
(144,317
|
)
|
|
|
|
(13,197
|
)
|
|
|
|
(11,747
|
)
|
Operating profit
|
|
|
|
|
|
32,567
|
|
|
|
|
22,528
|
|
|
|
|
2,650
|
|
|
|
|
1,833
|
|
Finance income/(costs) - net
|
|
|
|
|
|
12,957
|
|
|
|
|
1,316
|
|
|
|
|
1,054
|
|
|
|
|
107
|
|
-Finance income
|
|
|
|
|
|
13,311
|
|
|
|
|
2,068
|
|
|
|
|
1,083
|
|
|
|
|
168
|
|
-Finance costs
|
|
|
|
|
|
(354
|
)
|
|
|
|
(752
|
)
|
|
|
|
(29
|
)
|
|
|
|
(61
|
)
|
Profit before taxation
|
|
|
|
|
|
45,524
|
|
|
|
|
23,844
|
|
|
|
|
3,704
|
|
|
|
|
1,940
|
|
Taxation
|
|
|
|
|
|
(14,453
|
)
|
|
|
|
(7,785
|
)
|
|
|
|
(1,176
|
)
|
|
|
|
(634
|
)
|
Profit for the period
|
|
|
|
|
|
31,071
|
|
|
|
|
16,059
|
|
|
|
|
2,528
|
|
|
|
|
1,306
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owners of the parent
|
|
|
|
|
|
31,238
|
|
|
|
|
16,082
|
|
|
|
|
2,542
|
|
|
|
|
1,308
|
|
Non-controlling interests
|
|
|
|
|
|
(167
|
)
|
|
|
|
(23
|
)
|
|
|
|
(14
|
)
|
|
|
|
(2
|
)
|
|
|
|
|
|
|
31,071
|
|
|
|
|
16,059
|
|
|
|
|
2,528
|
|
|
|
|
1,306
|
|
|
|
MIX TELEMATICS LIMITED
|
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
|
|
|
|
|
|
|
South African Rand
|
|
|
|
United States Dollar
|
|
|
|
|
|
|
June 30,
|
|
|
|
March 31,
|
|
|
|
June 30,
|
|
|
|
March 31,
|
Figures are in thousands unless otherwise stated
|
|
|
|
|
|
2015
|
|
|
|
2015
|
|
|
|
2015
|
|
|
|
2015
|
|
|
|
|
|
|
Unaudited
|
|
|
|
Audited
|
|
|
|
Unaudited
|
|
|
|
Unaudited
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment
|
|
|
|
|
|
140,595
|
|
|
|
|
135,844
|
|
|
|
|
11,444
|
|
|
|
|
11,057
|
|
Intangible assets
|
|
|
|
|
|
791,736
|
|
|
|
|
778,518
|
|
|
|
|
64,445
|
|
|
|
|
63,369
|
|
Available-for-sale financial asset
|
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Finance lease receivable
|
|
|
|
|
|
950
|
|
|
|
|
1,002
|
|
|
|
|
77
|
|
|
|
|
82
|
|
Deferred tax assets
|
|
|
|
|
|
27,050
|
|
|
|
|
23,607
|
|
|
|
|
2,202
|
|
|
|
|
1,922
|
|
Total non-current assets
|
|
|
|
|
|
960,331
|
|
|
|
|
938,971
|
|
|
|
|
78,168
|
|
|
|
|
76,430
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory
|
|
|
|
|
|
48,464
|
|
|
|
|
38,934
|
|
|
|
|
3,945
|
|
|
|
|
3,169
|
|
Trade and other receivables
|
|
|
|
|
|
272,779
|
|
|
|
|
261,574
|
|
|
|
|
22,204
|
|
|
|
|
21,291
|
|
Finance lease receivable
|
|
|
|
|
|
4,351
|
|
|
|
|
5,607
|
|
|
|
|
354
|
|
|
|
|
456
|
|
Taxation
|
|
|
|
|
|
5,125
|
|
|
|
|
7,602
|
|
|
|
|
417
|
|
|
|
|
619
|
|
Restricted cash
|
|
|
|
|
|
12,107
|
|
|
|
|
30,539
|
|
|
|
|
985
|
|
|
|
|
2,486
|
|
Cash and cash equivalents
|
|
|
|
|
|
959,223
|
|
|
|
|
945,381
|
|
|
|
|
78,078
|
|
|
|
|
76,952
|
|
Total current assets
|
|
|
|
|
|
1,302,049
|
|
|
|
|
1,289,637
|
|
|
|
|
105,983
|
|
|
|
|
104,973
|
|
Total assets
|
|
|
|
|
|
2,262,380
|
|
|
|
|
2,228,608
|
|
|
|
|
184,151
|
|
|
|
|
181,403
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stated capital
|
|
|
|
|
|
1,436,993
|
|
|
|
|
1,436,993
|
|
|
|
|
116,968
|
|
|
|
|
116,968
|
|
Other reserves
|
|
|
|
|
|
(4,049
|
)
|
|
|
|
(21,894
|
)
|
|
|
|
(330
|
)
|
|
|
|
(1,782
|
)
|
Retained earnings
|
|
|
|
|
|
481,577
|
|
|
|
|
450,347
|
|
|
|
|
39,199
|
|
|
|
|
36,657
|
|
Equity attributable to owners of the parent
|
|
|
|
|
|
1,914,521
|
|
|
|
|
1,865,446
|
|
|
|
|
155,837
|
|
|
|
|
151,843
|
|
Non-controlling interest
|
|
|
|
|
|
(1,070
|
)
|
|
|
|
(874
|
)
|
|
|
|
(87
|
)
|
|
|
|
(71
|
)
|
Total equity
|
|
|
|
|
|
1,913,451
|
|
|
|
|
1,864,572
|
|
|
|
|
155,750
|
|
|
|
|
151,772
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings
|
|
|
|
|
|
744
|
|
|
|
|
1,104
|
|
|
|
|
61
|
|
|
|
|
90
|
|
Deferred tax liabilities
|
|
|
|
|
|
74,719
|
|
|
|
|
63,425
|
|
|
|
|
6,082
|
|
|
|
|
5,163
|
|
Provisions
|
|
|
|
|
|
4,117
|
|
|
|
|
4,005
|
|
|
|
|
335
|
|
|
|
|
326
|
|
Share-based payment liability
|
|
|
|
|
|
2,045
|
|
|
|
|
1,950
|
|
|
|
|
166
|
|
|
|
|
159
|
|
Total non-current liabilities
|
|
|
|
|
|
81,625
|
|
|
|
|
70,484
|
|
|
|
|
6,644
|
|
|
|
|
5,738
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade and other payables
|
|
|
|
|
|
219,601
|
|
|
|
|
247,361
|
|
|
|
|
17,875
|
|
|
|
|
20,133
|
|
Borrowings
|
|
|
|
|
|
1,559
|
|
|
|
|
1,399
|
|
|
|
|
127
|
|
|
|
|
114
|
|
Taxation
|
|
|
|
|
|
4,880
|
|
|
|
|
3,586
|
|
|
|
|
397
|
|
|
|
|
292
|
|
Provisions
|
|
|
|
|
|
22,218
|
|
|
|
|
23,240
|
|
|
|
|
1,808
|
|
|
|
|
1,892
|
|
Bank overdraft
|
|
|
|
|
|
19,046
|
|
|
|
|
17,966
|
|
|
|
|
1,550
|
|
|
|
|
1,462
|
|
Total current liabilities
|
|
|
|
|
|
267,304
|
|
|
|
|
293,552
|
|
|
|
|
21,757
|
|
|
|
|
23,893
|
|
Total liabilities
|
|
|
|
|
|
348,929
|
|
|
|
|
364,036
|
|
|
|
|
28,401
|
|
|
|
|
29,631
|
|
Total equity and liabilities
|
|
|
|
|
|
2,262,380
|
|
|
|
|
2,228,608
|
|
|
|
|
184,151
|
|
|
|
|
181,403
|
|
|
|
MIX TELEMATICS LIMITED
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
South African Rand
|
|
|
|
United States Dollar
|
|
|
|
|
|
|
Three months ended
|
|
|
|
Three months ended
|
|
|
|
Three months ended
|
|
|
|
Three months ended
|
|
|
|
|
|
|
June 30,
|
|
|
|
June 30,
|
|
|
|
June 30,
|
|
|
|
June 30,
|
Figures are in thousands unless otherwise stated
|
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
|
|
|
Unaudited
|
|
|
|
Unaudited
|
|
|
|
Unaudited
|
|
|
|
Unaudited
|
Operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash generated from operations
|
|
|
|
|
|
36,777
|
|
|
|
|
2,124
|
|
|
|
|
2,994
|
|
|
|
|
173
|
|
Net financing income
|
|
|
|
|
|
1,890
|
|
|
|
|
1,409
|
|
|
|
|
154
|
|
|
|
|
115
|
|
Taxation (paid)/refunded
|
|
|
|
|
|
(3,476
|
)
|
|
|
|
2,596
|
|
|
|
|
(283
|
)
|
|
|
|
211
|
|
Net cash generated from operating activities
|
|
|
|
|
|
35,191
|
|
|
|
|
6,129
|
|
|
|
|
2,865
|
|
|
|
|
499
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure
|
|
|
|
|
|
(38,277
|
)
|
|
|
|
(28,197
|
)
|
|
|
|
(3,116
|
)
|
|
|
|
(2,295
|
)
|
Deferred consideration paid
|
|
|
|
|
|
(201
|
)
|
|
|
|
(300
|
)
|
|
|
|
(16
|
)
|
|
|
|
(24
|
)
|
Proceeds on sale of property, plant and equipment
|
|
|
|
|
|
157
|
|
|
|
|
63
|
|
|
|
|
13
|
|
|
|
|
5
|
|
Contingent consideration paid (note 10)
|
|
|
|
|
|
(18,000
|
)
|
|
|
|
—
|
|
|
|
|
(1,465
|
)
|
|
|
|
—
|
|
Decrease/(increase) in restricted cash
|
|
|
|
|
|
18,568
|
|
|
|
|
(152
|
)
|
|
|
|
1,511
|
|
|
|
|
(12
|
)
|
Net cash used in investing activities
|
|
|
|
|
|
(37,753
|
)
|
|
|
|
(28,586
|
)
|
|
|
|
(3,073
|
)
|
|
|
|
(2,326
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of ordinary shares
|
|
|
|
|
|
—
|
|
|
|
|
2,742
|
|
|
|
|
—
|
|
|
|
|
223
|
|
Net cash generated from financing activities
|
|
|
|
|
|
—
|
|
|
|
|
2,742
|
|
|
|
|
—
|
|
|
|
|
223
|
|
Net decrease in cash and cash equivalents
|
|
|
|
|
|
(2,562
|
)
|
|
|
|
(19,715
|
)
|
|
|
|
(208
|
)
|
|
|
|
(1,604
|
)
|
Net cash and cash equivalents at the beginning of the period
|
|
|
|
|
|
927,415
|
|
|
|
|
802,639
|
|
|
|
|
75,490
|
|
|
|
|
65,333
|
|
Exchange gains on cash and cash equivalents
|
|
|
|
|
|
15,324
|
|
|
|
|
1,711
|
|
|
|
|
1,246
|
|
|
|
|
138
|
|
Net cash and cash equivalents at the end of the period
|
|
|
|
|
|
940,177
|
|
|
|
|
784,635
|
|
|
|
|
76,528
|
|
|
|
|
63,867
|
|
|
|
MIX TELEMATICS LIMITED
|
OTHER FINANCIAL AND OPERATING DATA
|
|
|
|
|
|
|
South African Rand
|
|
|
|
United States Dollar
|
|
|
|
|
|
|
Three months ended
|
|
|
|
Three months ended
|
|
|
|
Three months ended
|
|
|
|
Three months ended
|
|
|
|
|
|
|
June 30,
|
|
|
|
June 30,
|
|
|
|
June 30,
|
|
|
|
June 30,
|
Figures are in thousands except for subscribers
|
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
|
|
|
Unaudited
|
|
|
|
Unaudited
|
|
|
|
Unaudited
|
|
|
|
Unaudited
|
Subscription revenue
|
|
|
|
|
|
271,790
|
|
|
|
|
236,613
|
|
|
|
|
22,123
|
|
|
|
|
19,260
|
Adjusted EBITDA
|
|
|
|
|
|
65,288
|
|
|
|
|
52,005
|
|
|
|
|
5,313
|
|
|
|
|
4,233
|
Cash and cash equivalents
|
|
|
|
|
|
959,223
|
|
|
|
|
829,800
|
|
|
|
|
78,078
|
|
|
|
|
67,544
|
Net cash (1)
|
|
|
|
|
|
937,874
|
|
|
|
|
781,194
|
|
|
|
|
76,341
|
|
|
|
|
63,587
|
Capital expenditure incurred
|
|
|
|
|
|
37,085
|
|
|
|
|
28,197
|
|
|
|
|
3,019
|
|
|
|
|
2,295
|
Subscribers (number)
|
|
|
|
|
|
523,344
|
|
|
|
|
462,746
|
|
|
|
|
523,344
|
|
|
|
|
462,746
|
|
(1) Net cash is calculated as being net cash and
cash equivalents, excluding restricted cash less interest bearing
borrowings.
Notes to condensed consolidated income statements, statements of
financial position, statements of cash flows and other financial and
operating data
1. Accounting policies
The condensed consolidated statements of financial position, income
statements and statements of cash flows included in this announcement
have been prepared in accordance with IFRS accounting policies. The
accounting policies are consistent in all material respects with those
applied in the preparation of the consolidated financial statements for
the year ended March 31, 2015. No new or revised accounting standards
have been adopted by the Group in fiscal 2016.
The results have not been audited or reviewed by the Group's external
auditors.
2. Presentation currency and convenience translation
The Group’s presentation currency is South African Rand. In addition to
presenting these condensed consolidated financial results for the
quarter ended June 30, 2015 in South African Rand, supplementary
information in U.S. Dollars has been prepared for the convenience of
users of this report. Unless otherwise stated, the Group has translated
U.S. Dollar amounts from South African Rand at the exchange rate of
R12.2854 per $1.00, which was the R/$ exchange rate reported by
Oanda.com as of June 30, 2015. The U.S. Dollar figures may not compute
as they are rounded independently.
|
3. Earnings per share/ADS data
|
|
|
|
|
|
|
South African Rand
|
|
|
|
United States Dollar
|
|
|
|
|
|
|
Three months ended
|
|
|
|
Three months ended
|
|
|
|
Three months ended
|
|
|
|
Three months ended
|
|
|
|
|
|
|
June 30,
|
|
|
|
June 30,
|
|
|
|
June 30,
|
|
|
|
June 30,
|
|
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
|
|
|
Unaudited
|
|
|
|
Unaudited
|
|
|
|
Unaudited
|
|
|
|
Unaudited
|
Earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic (R/$)
|
|
|
|
|
|
0.04
|
|
|
|
|
0.02
|
|
|
|
|
#
|
|
|
|
#
|
Diluted (R/$)
|
|
|
|
|
|
0.04
|
|
|
|
|
0.02
|
|
|
|
|
#
|
|
|
|
#
|
Earnings per American Depositary Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic (R/$)
|
|
|
|
|
|
0.99
|
|
|
|
|
0.51
|
|
|
|
|
0.08
|
|
|
|
|
0.04
|
Diluted (R/$)
|
|
|
|
|
|
0.97
|
|
|
|
|
0.50
|
|
|
|
|
0.08
|
|
|
|
|
0.04
|
Adjusted earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic (R/$)
|
|
|
|
|
|
0.03
|
|
|
|
|
0.02
|
|
|
|
|
#
|
|
|
|
#
|
Diluted (R/$)
|
|
|
|
|
|
0.03
|
|
|
|
|
0.02
|
|
|
|
|
#
|
|
|
|
#
|
Adjusted earnings per American Depositary Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic (R/$)
|
|
|
|
|
|
0.75
|
|
|
|
|
0.52
|
|
|
|
|
0.06
|
|
|
|
|
0.04
|
Diluted (R/$)
|
|
|
|
|
|
0.74
|
|
|
|
|
0.51
|
|
|
|
|
0.06
|
|
|
|
|
0.04
|
Ordinary shares ('000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In issue at June 30
|
|
|
|
|
|
792,838
|
|
|
|
|
787,513
|
|
|
|
|
792,838
|
|
|
|
|
787,513
|
Weighted average
|
|
|
|
|
|
792,838
|
|
|
|
|
784,696
|
|
|
|
|
792,838
|
|
|
|
|
784,696
|
Diluted weighted average
|
|
|
|
|
|
803,709
|
|
|
|
|
804,352
|
|
|
|
|
803,709
|
|
|
|
|
804,352
|
American Depositary Shares ('000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In issue at June 30
|
|
|
|
|
|
31,714
|
|
|
|
|
31,501
|
|
|
|
|
31,714
|
|
|
|
|
31,501
|
Weighted average
|
|
|
|
|
|
31,714
|
|
|
|
|
31,388
|
|
|
|
|
31,714
|
|
|
|
|
31,388
|
Diluted weighted average
|
|
|
|
|
|
32,148
|
|
|
|
|
32,174
|
|
|
|
|
32,148
|
|
|
|
|
32,174
|
# Amount less than $0.01
|
|
4. Reconciliation of Adjusted Earnings to Profit for the Period
|
|
|
|
|
|
|
South African Rand
|
|
|
|
United States Dollar
|
|
|
|
|
|
|
Three months ended
|
|
|
|
Three months ended
|
|
|
|
Three months ended
|
|
|
|
Three months ended
|
|
|
|
|
|
|
June 30,
|
|
|
|
June 30,
|
|
|
|
June 30,
|
|
|
|
June 30,
|
Figures are in thousands unless otherwise stated
|
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
|
|
|
Unaudited
|
|
|
|
Unaudited
|
|
|
|
Unaudited
|
|
|
|
Unaudited
|
Profit for the period attributable to owners of the parent
|
|
|
|
|
|
31,238
|
|
|
|
|
16,082
|
|
|
|
|
2,542
|
|
|
|
|
1,308
|
Net foreign exchange (gains)/losses
|
|
|
|
|
|
(11,044
|
)
|
|
|
|
184
|
|
|
|
|
(899
|
)
|
|
|
|
15
|
Income tax effect on the above component
|
|
|
|
|
|
3,482
|
|
|
|
|
128
|
|
|
|
|
284
|
|
|
|
|
11
|
Adjusted earnings attributable to owners of the parent
|
|
|
|
|
|
23,676
|
|
|
|
|
16,394
|
|
|
|
|
1,927
|
|
|
|
|
1,334
|
|
|
5. Reconciliation of Adjusted EBITDA to Profit for the Period
|
|
|
|
|
|
|
South African Rand
|
|
|
|
United States Dollar
|
|
|
|
|
|
|
Three months ended
|
|
|
|
Three months ended
|
|
|
|
Three months ended
|
|
|
|
Three months ended
|
|
|
|
|
|
|
June 30,
|
|
|
|
June 30,
|
|
|
|
June 30,
|
|
|
|
June 30,
|
Figures are in thousands unless otherwise stated
|
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
|
|
|
Unaudited
|
|
|
|
Unaudited
|
|
|
|
Unaudited
|
|
|
|
Unaudited
|
Adjusted EBITDA
|
|
|
|
|
|
65,288
|
|
|
|
|
52,005
|
|
|
|
|
5,313
|
|
|
|
|
4,233
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized foreign exchange losses
|
|
|
|
|
|
—
|
|
|
|
|
695
|
|
|
|
|
—
|
|
|
|
|
57
|
|
Decrease in restructuring cost provision
|
|
|
|
|
|
638
|
|
|
|
|
—
|
|
|
|
|
52
|
|
|
|
|
—
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation (1)
|
|
|
|
|
|
(16,570
|
)
|
|
|
|
(13,656
|
)
|
|
|
|
(1,349
|
)
|
|
|
|
(1,112
|
)
|
Amortization (2)
|
|
|
|
|
|
(12,986
|
)
|
|
|
|
(11,269
|
)
|
|
|
|
(1,057
|
)
|
|
|
|
(917
|
)
|
Share-based compensation costs
|
|
|
|
|
|
(1,576
|
)
|
|
|
|
(3,021
|
)
|
|
|
|
(128
|
)
|
|
|
|
(246
|
)
|
Net loss on sale of property, plant and equipment
|
|
|
|
|
|
(2
|
)
|
|
|
|
(118
|
)
|
|
|
|
*
|
|
|
|
(10
|
)
|
Transaction costs arising from investigating strategic alternatives
|
|
|
|
|
|
(2,040
|
)
|
|
|
|
—
|
|
|
|
|
(166
|
)
|
|
|
|
—
|
|
Net realized foreign exchange gains
|
|
|
|
|
|
(185
|
)
|
|
|
|
—
|
|
|
|
|
(15
|
)
|
|
|
|
—
|
|
Net litigation costs
|
|
|
|
|
|
—
|
|
|
|
|
(2,108
|
)
|
|
|
|
—
|
|
|
|
|
(172
|
)
|
Operating profit
|
|
|
|
|
|
32,567
|
|
|
|
|
22,528
|
|
|
|
|
2,650
|
|
|
|
|
1,833
|
|
Add: Finance income/(costs) - net
|
|
|
|
|
|
12,957
|
|
|
|
|
1,316
|
|
|
|
|
1,054
|
|
|
|
|
107
|
|
Less: Taxation
|
|
|
|
|
|
(14,453
|
)
|
|
|
|
(7,785
|
)
|
|
|
|
(1,176
|
)
|
|
|
|
(634
|
)
|
Profit for the period
|
|
|
|
|
|
31,071
|
|
|
|
|
16,059
|
|
|
|
|
2,528
|
|
|
|
|
1,306
|
|
|
(1) Includes depreciation of property, plant and
equipment (including in-vehicle devices).
(2) Includes
amortization of intangible assets (including product development costs
and intangible assets identified as part of a business combination).
*
Amounts less than $1,000/R1,000
|
6. Reconciliation of Adjusted EBITDA Margin to Profit for the
Period Margin
|
|
|
|
|
|
|
Three months ended
|
|
|
|
Three months ended
|
|
|
|
|
|
|
June 30,
|
|
|
|
June 30,
|
|
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
|
|
|
Unaudited
|
|
|
|
Unaudited
|
Adjusted EBITDA margin
|
|
|
|
|
|
19.0
|
%
|
|
|
|
16.3
|
%
|
Add:
|
|
|
|
|
|
|
|
|
|
|
Net realized foreign exchange losses
|
|
|
|
|
|
—
|
|
|
|
|
0.2
|
%
|
Decrease in restructuring cost provision
|
|
|
|
|
|
0.2
|
%
|
|
|
|
—
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
|
|
|
(4.8
|
%)
|
|
|
|
(4.3
|
%)
|
Amortization
|
|
|
|
|
|
(3.8
|
%)
|
|
|
|
(3.5
|
%)
|
Share-based compensation costs
|
|
|
|
|
|
(0.5
|
%)
|
|
|
|
(0.9
|
%)
|
Net loss on sale of property, plant and equipment
|
|
|
|
|
|
(0.0
|
%)
|
|
|
|
(0.0
|
%)
|
Transaction costs arising from investigating strategic alternatives
|
|
|
|
|
|
(0.6
|
%)
|
|
|
|
—
|
|
Net realized foreign exchange gains
|
|
|
|
|
|
(0.0
|
%)
|
|
|
|
—
|
|
Net litigation costs
|
|
|
|
|
|
—
|
|
|
|
|
(0.7
|
%)
|
Operating profit margin
|
|
|
|
|
|
9.5
|
%
|
|
|
|
7.1
|
%
|
Add: Finance income/(costs) - net
|
|
|
|
|
|
3.7
|
%
|
|
|
|
0.4
|
%
|
Less: Taxation
|
|
|
|
|
|
(4.2
|
%)
|
|
|
|
(2.5
|
%)
|
Profit for the period margin
|
|
|
|
|
|
9.0
|
%
|
|
|
|
5.0
|
%
|
|
|
7. Reconciliation of Free Cash Flow to Net Cash Generated from
Operating Activities
|
|
|
|
|
|
|
South African Rand
|
|
|
|
United States Dollar
|
|
|
|
|
|
|
Three months ended
|
|
|
|
Three months ended
|
|
|
|
Three months ended
|
|
|
|
Three months ended
|
|
|
|
|
|
|
June 30,
|
|
|
|
June 30,
|
|
|
|
June 30,
|
|
|
|
June 30,
|
Figures are in thousands unless otherwise stated
|
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
|
|
|
Unaudited
|
|
|
|
Unaudited
|
|
|
|
Unaudited
|
|
|
|
Unaudited
|
Net cash generated from operating activities
|
|
|
|
|
|
35,191
|
|
|
|
|
6,129
|
|
|
|
|
2,865
|
|
|
|
|
499
|
|
Capital expenditure
|
|
|
|
|
|
(38,277
|
)
|
|
|
|
(28,197
|
)
|
|
|
|
(3,116
|
)
|
|
|
|
(2,295
|
)
|
Free cash flow
|
|
|
|
|
|
(3,086
|
)
|
|
|
|
(22,068
|
)
|
|
|
|
(251
|
)
|
|
|
|
(1,796
|
)
|
|
8. Contingent Liabilities
Service agreement
In terms of an amended network services agreement with Mobile Telephone
Networks Proprietary Limited (“MTN”), MTN is entitled to claw back
payments from MiX Telematics Africa Proprietary Limited in the event of
early cancellation of the agreement or certain base connections not
being maintained over the term of the agreement. No connection
incentives will be received in terms of the amended network services
agreement. The maximum potential liability under the arrangement is
R49.3 million or $4.0 million (June 2014: R56.4 million or $4.6
million). No loss is considered probable under this arrangement.
9. Taxation
MiX Telematics International Proprietary Limited ("MiX International"),
a subsidiary of the Group, historically claimed a 150% allowance for
research and development spend in terms of section 11D ("S11D") of the
South African Income Tax Act of 1962 ("the Act"). As of October 1, 2012,
the legislation relating to the allowance was amended. The amendment
requires pre-approval of development project expenditure on a project
specific basis by the South African Department of Science and Technology
("DST") in order to claim a deduction of the additional 50% over and
above the expenditure incurred (150% allowance). Since the amendments to
S11D of the Act, MiX International had been claiming the 150% deduction
resulting in a recognized tax benefit of R8.5 million ($0.7 million).
MiX International has complied with the amended legislation by
submitting all required documentation to the DST in a timely manner,
commencing in October 2012.
In June 2014, correspondence was received from the DST indicating that
the research and development expenditure on certain projects for which
the 150% allowance was claimed did not, in the DST’s opinion, constitute
qualifying expenditure in terms of the Act. MiX International continues,
through due legal process, to formally seek a review of the DST’s
decision not to approve the expenditure. This process is unresolved.
Consequently, at June 30, 2015, MiX International has an uncertain tax
position relating to S11D deductions. MiX International has paid the
R8.5 million ($0.7 million) related to the S11D deductions to the South
African Revenue Service. The Group has considered this uncertain tax
position and recognized a tax asset of R8.5 million ($0.7 million) at
June 30, 2015. If the Group is unsuccessful in obtaining DST approval in
this specific matter, the Group will not recover the tax asset and will
incur an additional taxation expense of up to R8.5 million ($0.7
million) relating to the additional 50% claimed.
10. Contingent consideration paid
On November 1, 2014, the Group acquired the operating business of
Compass Fleet Management Proprietary Limited (“Compass”), a South Africa
based provider of specialized fleet management solutions in Southern
Africa that are delivered off the Group’s hardware and software
platform. During May 2015, R18.0 million ($1.5 million) previously held
in trust and disclosed within restricted cash was paid to the former
owners of Compass. The consideration was paid after it was determined
that the agreed revenue and profit targets for the period November 1,
2014 to March 31, 2015 had been achieved.

Contact: