DENVER, April 14, 2020 (GLOBE NEWSWIRE) -- TrackX Holdings Inc. (TSX.V:TKX | FRANKFURT:3TH) (“TrackX” or the “Company), a Software-as-a-Service (SaaS)-based enterprise asset management solution provider, announces the financial and operational highlights from its fourth quarter and fiscal year ended September 30, 2019. All results are reported in Canadian dollars unless otherwise specified. A complete set of the September 30, 2019 Consolidated Financial Statements and Management’s Discussion & Analysis has been filed on SEDAR (www.sedar.com).
Financial Highlights for the Year Ended September 30, 2019
- Positive adjusted EBITDA for Q4 2019 of $0.02 million;
- Revenue of $6.29 million versus $5.67 million in FY18, a 11% increase year-over-year;
- Recurring revenue of $2.71 million, a 33% increase over $2.04 million in FY18;
- Gross margin of 43%, as compared to 44% in FY18;
- Adjusted EBITDA loss for the year decreased to $1.94 million compared to a $2.29 million loss during FY18;
- Net loss for FY19 increased to $3.92 million or ($0.05)/share from $3.45 million or ($0.04/share) in FY18.
Annual Revenue Mix
| Revenue | FY19 | FY18 |
| Recurring and Software License | 46% | 52% |
| Hardware | 17% | 19% |
| Setup, implementation, and other fees | 33% | 28% |
| Services | 4% | 1% |
| TOTAL | 100% | 100% |
Financial Highlights for the 3-Months Ended September 30, 2019
- Revenue of $1.05 million versus $0.67 million in the year-ago quarter. The increase was due to the execution of our land and expand strategy expansion which lead to additional implementations within the Quarter;
- Recurring revenue increased 38% year-over-year to $0.71 million from $0.51 million;
- Gross margin of 55%, was up from (54%) from the fourth quarter of F18;
- Positive Adjusted EBITDA of $0.02 million compared to loss of $1.61 million in the year-ago quarter;
- Net loss of $0.51 million ($0.01/share) versus $2.14 million ($0.03/share) in Q4/F18.
Fourth Quarter Revenue Mix
| Revenue | FY19 | FY18 |
| Recurring and Software License | 67% | 77% |
| Hardware | (3)% | 7% |
| Setup, implementation, and other fees | 34% | 26% |
| Services | 2% | (10)% |
| TOTAL | 100% | 100% |
Management Commentary
“Fiscal 2019 represented a challenging year for TrackX,” said President and CEO, Tim Harvie. “Several of the Company’s larger enterprise opportunities were delayed beyond Q4 2019. In addition, the Company made a significant investment in the configuration of its GAME platform for the Cannabis industry which it was unable to monetize within Fiscal 2019. TrackX responded to these challenges aggressively and effectively. We made the changes necessary to reduce our overall operating expense while remaining focused on the execution of our core strategies. With this focus and a stronger balance sheet resulting from the recent sale of the TrackX Yard Management business to FourKites, the Company is well positioned as it looks towards the future.”
Highlights Subsequent to the Fourth Quarter
- Sale of Yard Management business to FourKites
- Expansion of GAME within America’s second largest insurance company;
- Additional expansion within a global household appliance manufacturer;
- Vehicle inventory management for Polaris, a global powersports leader
- Resignation by Kevin Shea from the Board of TrackX; and
- Restructure of the Company’s sales efforts
Selected Financial Information
| C$(000s) (except per share) | Twelve-month Period Ended September 30 | Three-month Period Ended September 30 | ||
| FY19 | FY18 | FY19 | FY18 | |
| Revenue | $6,288 | $5,668 | $1,052 | $674 |
| Gross Margin % | 43% | 44% | 55% | (54%) |
| Loss for the period | ($3,919) | ($3,452) | ($512) | ($2,142) |
| Loss per share | ($0.05) | ($0.04) | ($0.01) | ($0.03) |
| Adjusted EBITDA (Loss)* | ($1,938) | ($2,293) | $0.02 | ($1,615) |
| * Adjusted EBITDA is a non-IFRS (international financial reporting standards) measure and excludes stock-based compensation | ||||
Business Outlook
In 2019, the Company expanded its solution footprint both in terms of capabilities and number of installed locations for many customers including Carvana, a large insurance customer, a large US baked snack food manufacturer, a global household appliance manufacturer and the world’s second largest processor and marketer of beef, pork and poultry. TrackX also continued to expand and leverage its partner network, generating additional leads and pipeline opportunities expected to drive additional revenue growth in 2020. TrackX restructured its sales organization and refined its sales efforts on larger and higher margin revenue opportunities in returnable asset tracking (i.e., food racks), high value asset tracking (i.e., IT asset tracking) and supply chain management. Continued focus in these areas will result in repeatable industry solutions that more effectively leverage GAME’s capability for business process automation, analytics and support of a wide array of IIOT devices. That focus helped to drive the Company’s recently announced strategic transaction with FourKites, the Chicago-based creator of the predictive supply chain visibility category, in which FourKites acquired the TrackX Yard Management business. The FourKites transaction will not only strengthen the Company’s balance sheet and create additional sales and marketing opportunities through FourKites’ expansive customer network, but will enable TrackX to further leverage its enterprise asset management platform on high margin SaaS-based solutions which are repeatable, have a short sales cycle, and require low operating overhead.
About TrackX
TrackX, Inc. (TSX.V:TKX), based in Denver, Colorado, is an enterprise asset management company deploying SaaS-based solutions leveraging multiple auto-ID and sensor technologies for the comprehensive tracking and management of physical assets. TrackX's Global Asset Management for Enterprises (GAME) platform enables the IIoT by providing unique item level tracking, workflow processing, event management, alerting and powerful analytics to deliver solutions across a growing number of industries. TrackX delivers significant value to a growing list of Fortune 500 companies and for customers in industries such as transportation, beverage, brewery, healthcare, hi-tech, hospitality, mining, agriculture, horticulture, manufacturing and government.
For more information, please contact:
Gene McConnell, TrackX Holdings Inc.
investor@trackx.com
303-325-7300
Neither TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. All statements that address future plans, activities, events or developments that the Company believes, expects or anticipates will or may occur including the Company’s anticipated pipeline and value of current and customer deployments and future opportunities are the managements best estimates and cannot be guaranteed or relied upon and is forward-looking information. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements in this news release, whether as a result of new information, future events or otherwise, except as required by law.