Not Applicable | |||||||||||||||||||||||
(State or Other Jurisdiction | (Commission | (IRS Employer | |||||||||||||||||||||
of Incorporation) | File Number) | Identification No.) | |||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||
+1 | |||||||||||||||||||||||||||||||||||
(Address of Principal Executive Offices) | Registrant’s telephone number, including area code | ||||||||||||||||||||||||||||||||||
(Former name or former address, if changed since last report) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Ordinary Shares, no par value | New York Stock Exchange (for listing purposes only) |
MIX TELEMATICS LIMITED | ||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Year Ended March 31, | ||||||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||||||
Revenue | ||||||||||||||||||||
Subscription | $ | 110,399 | $ | 123,150 | $ | 127,570 | ||||||||||||||
Hardware and other | 21,382 | 20,555 | 18,080 | |||||||||||||||||
Total revenue | 131,781 | 143,705 | 145,650 | |||||||||||||||||
Cost of revenue | ||||||||||||||||||||
Subscription | 32,555 | 34,940 | 39,828 | |||||||||||||||||
Hardware and other | 11,554 | 11,945 | 13,187 | |||||||||||||||||
Total cost of revenue | 44,109 | 46,885 | 53,015 | |||||||||||||||||
Gross profit | 87,672 | 96,820 | 92,635 | |||||||||||||||||
Operating expenses | ||||||||||||||||||||
Sales and marketing | 14,235 | 14,489 | 13,324 | |||||||||||||||||
Research and development | 6,148 | 5,989 | 5,467 | |||||||||||||||||
Administrative and other | 51,123 | 52,051 | 52,796 | |||||||||||||||||
Income from operations | 16,166 | 24,291 | 21,048 | |||||||||||||||||
Other (expense)/income | (63) | 101 | (299) | |||||||||||||||||
Net interest income | 385 | 233 | 67 | |||||||||||||||||
Income before income tax expense | 16,488 | 24,625 | 20,816 | |||||||||||||||||
Income tax expense | 2,536 | 9,815 | 9,829 | |||||||||||||||||
Net income for the year | $ | 13,952 | $ | 14,810 | $ | 10,987 | ||||||||||||||
Net income attributable to MiX Telematics Limited stockholders | $ | 13,947 | $ | 14,810 | $ | 10,987 | ||||||||||||||
Net income attributable to non-controlling interest | 5 | — | — | |||||||||||||||||
$ | 13,952 | $ | 14,810 | $ | 10,987 | |||||||||||||||
Net income per ordinary share: | ||||||||||||||||||||
-Basic | $ | 0.02 | $ | 0.03 | $ | 0.03 | ||||||||||||||
-Diluted | $ | 0.02 | $ | 0.03 | $ | 0.03 | ||||||||||||||
Net income per American Depositary Share: | ||||||||||||||||||||
-Basic | $ | 0.62 | $ | 0.66 | $ | 0.50 | ||||||||||||||
-Diluted | $ | 0.61 | $ | 0.63 | $ | 0.48 | ||||||||||||||
Ordinary shares: | ||||||||||||||||||||
-Weighted average | 561,088 | 563,578 | 553,653 | |||||||||||||||||
-Diluted weighted average | 572,824 | 583,741 | 567,879 | |||||||||||||||||
American Depositary Shares: | ||||||||||||||||||||
-Weighted average | 22,444 | 22,543 | 22,146 | |||||||||||||||||
-Diluted weighted average | 22,913 | 23,350 | 22,715 | |||||||||||||||||
MIX TELEMATICS LIMITED | ||||||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||||||
(In thousands, except share amounts) | ||||||||||||||
(Unaudited) | ||||||||||||||
March 31, | March 31, | |||||||||||||
2019 | 2020 | |||||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents, and restricted cash | $ | 27,838 | $ | 18,652 | ||||||||||
Accounts receivables, net | 21,045 | 24,100 | ||||||||||||
Inventory, net | 3,536 | 3,271 | ||||||||||||
Prepaid expenses and other current assets | 8,140 | 7,375 | ||||||||||||
Total current assets | 60,559 | 53,398 | ||||||||||||
Property and equipment, net | 31,714 | 30,019 | ||||||||||||
Goodwill | 44,352 | 37,923 | ||||||||||||
Intangible assets, net | 16,879 | 15,007 | ||||||||||||
Deferred tax assets | 3,197 | 3,108 | ||||||||||||
Other assets | 3,729 | 4,200 | ||||||||||||
Total assets | $ | 160,430 | $ | 143,655 | ||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||
Short-term debt | $ | 2,087 | $ | 2,367 | ||||||||||
Accounts payables | 6,260 | 5,251 | ||||||||||||
Accrued expenses and other liabilities | 17,423 | 14,839 | ||||||||||||
Deferred revenue | 6,107 | 5,077 | ||||||||||||
Total current liabilities | 31,877 | 27,534 | ||||||||||||
Deferred tax liabilities | 9,174 | 11,436 | ||||||||||||
Accrued expenses and other liabilities | 2,438 | 5,660 | ||||||||||||
Total liabilities | 43,489 | 44,630 | ||||||||||||
Stockholders' equity: | ||||||||||||||
Preference shares: 100 million shares authorized but not issued | — | — | ||||||||||||
Ordinary shares: 601.9 million shares and 600.9 million shares issued and outstanding as of March 31, 2019 and 2020, respectively | 68,200 | 66,522 | ||||||||||||
Less treasury stock at cost: 40 million shares and 54 million shares as of March, 31, 2019 and 2020, respectively | (9,227) | (17,315) | ||||||||||||
Retained earnings | 62,750 | 67,482 | ||||||||||||
Accumulated other comprehensive income/(loss) | 2,115 | (11,070) | ||||||||||||
Additional paid-in capital | (6,902) | (6,599) | ||||||||||||
Total MiX Telematics Limited stockholders’ equity | 116,936 | 99,020 | ||||||||||||
Non-controlling interest | 5 | 5 | ||||||||||||
Total stockholders' equity | 116,941 | 99,025 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 160,430 | $ | 143,655 | ||||||||||
MIX TELEMATICS LIMITED | ||||||||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Year Ended March 31, | ||||||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||||||
Operating activities: | ||||||||||||||||||||
Cash generated from operations | $ | 30,621 | $ | 36,942 | $ | 33,473 | ||||||||||||||
Interest received | 660 | 882 | 683 | |||||||||||||||||
Interest paid | (287) | (206) | (204) | |||||||||||||||||
Income tax paid | (4,976) | (6,163) | (5,774) | |||||||||||||||||
Net cash generated from operating activities | 26,018 | 31,455 | 28,178 | |||||||||||||||||
Investing activities: | ||||||||||||||||||||
Additions to property and equipment | (18,365) | (14,607) | (14,706) | |||||||||||||||||
Proceeds on disposal of property and equipment | 338 | 162 | 1,294 | |||||||||||||||||
Additions to intangibles | (6,503) | (4,778) | (5,666) | |||||||||||||||||
Loans advanced to external parties | — | — | (344) | |||||||||||||||||
Net cash used in investing activities | (24,530) | (19,223) | (19,422) | |||||||||||||||||
Financing activities: | ||||||||||||||||||||
Share capital raised | 825 | 1,002 | — | |||||||||||||||||
Share buy back | (1,436) | (5,349) | (9,764) | |||||||||||||||||
Dividends paid to ordinary shareholders | (4,094) | (4,907) | (5,999) | |||||||||||||||||
Transaction with non-controlling interest | (104) | — | — | |||||||||||||||||
Movement in short-term debt | (23) | 650 | 312 | |||||||||||||||||
Net cash used in financing activities | (4,832) | (8,604) | (15,451) | |||||||||||||||||
Net (decrease)/increase in cash and cash equivalents, and restricted cash | (3,344) | 3,628 | (6,695) | |||||||||||||||||
Cash and cash equivalents, and restricted cash at beginning of the year | 29,007 | 27,834 | 27,838 | |||||||||||||||||
Exchange gains/(losses) on cash and cash equivalents, and restricted cash | 2,171 | (3,624) | (2,491) | |||||||||||||||||
Cash and cash equivalents, and restricted cash at the end of the year | $ | 27,834 | $ | 27,838 | $ | 18,652 | ||||||||||||||
MIX TELEMATICS LIMITED | ||||||||||||||||||||||||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, | September 30, | December 31, | March 31, | June 30, | September 30, | December 31, | March 31, | |||||||||||||||||||||||||||||||||||||||||||
2018 | 2018 | 2018 | 2019 | 2019 | 2019 | 2019 | 2020 | |||||||||||||||||||||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||||||||||||||||||||||||
Subscription | $ | 30,947 | $ | 29,801 | $ | 30,706 | $ | 31,696 | $ | 31,638 | $ | 32,099 | $ | 32,362 | $ | 31,471 | ||||||||||||||||||||||||||||||||||
Hardware and other | 5,266 | 5,451 | 5,277 | 4,561 | 4,645 | 4,562 | 4,107 | 4,766 | ||||||||||||||||||||||||||||||||||||||||||
Total revenue | 36,213 | 35,252 | 35,983 | 36,257 | 36,283 | 36,661 | 36,469 | 36,237 | ||||||||||||||||||||||||||||||||||||||||||
Cost of revenue | ||||||||||||||||||||||||||||||||||||||||||||||||||
Subscription | 8,888 | 8,383 | 8,637 | 9,032 | 9,295 | 9,417 | 10,078 | 11,038 | ||||||||||||||||||||||||||||||||||||||||||
Hardware and other | 2,839 | 2,732 | 3,558 | 2,816 | 2,933 | 3,028 | 2,842 | 4,384 | ||||||||||||||||||||||||||||||||||||||||||
Total cost of revenue | 11,727 | 11,115 | 12,195 | 11,848 | 12,228 | 12,445 | 12,920 | 15,422 | ||||||||||||||||||||||||||||||||||||||||||
Gross profit | 24,486 | 24,137 | 23,788 | 24,409 | 24,055 | 24,216 | 23,549 | 20,815 | ||||||||||||||||||||||||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||
Sales and marketing | 3,714 | 3,691 | 3,614 | 3,470 | 3,581 | 3,148 | 3,481 | 3,114 | ||||||||||||||||||||||||||||||||||||||||||
Research and development | 1,700 | 1,495 | 1,374 | 1,420 | 1,500 | 1,351 | 1,403 | 1,213 | ||||||||||||||||||||||||||||||||||||||||||
Administrative and other | 13,823 | 12,873 | 12,667 | 12,688 | 13,286 | 13,265 | 13,492 | 12,753 | ||||||||||||||||||||||||||||||||||||||||||
Income from operations | 5,249 | 6,078 | 6,133 | 6,831 | 5,688 | 6,452 | 5,173 | 3,735 | ||||||||||||||||||||||||||||||||||||||||||
Other (expense)/income | (19) | 74 | 37 | 9 | 375 | (52) | (178) | (444) | ||||||||||||||||||||||||||||||||||||||||||
Net interest income/(expense) | 68 | 31 | 14 | 120 | 73 | 4 | (20) | 10 | ||||||||||||||||||||||||||||||||||||||||||
Income before income tax expense | 5,298 | 6,183 | 6,184 | 6,960 | 6,136 | 6,404 | 4,975 | 3,301 | ||||||||||||||||||||||||||||||||||||||||||
Income tax (expense)/benefit | (4,192) | (2,192) | (2,015) | (1,416) | (1,140) | (3,058) | 119 | (5,750) | ||||||||||||||||||||||||||||||||||||||||||
Net income/(loss) for the period | $ | 1,106 | $ | 3,991 | $ | 4,169 | $ | 5,544 | $ | 4,996 | $ | 3,346 | $ | 5,094 | $ | (2,449) | ||||||||||||||||||||||||||||||||||
Net income/(loss) attributable to MiX Telematics Limited stockholders | $ | 1,106 | $ | 3,991 | $ | 4,169 | $ | 5,544 | $ | 4,996 | $ | 3,346 | $ | 5,094 | $ | (2,449) | ||||||||||||||||||||||||||||||||||
Net income/(loss) attributable to non-controlling interest | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
$ | 1,106 | $ | 3,991 | $ | 4,169 | $ | 5,544 | $ | 4,996 | $ | 3,346 | $ | 5,094 | $ | (2,449) | |||||||||||||||||||||||||||||||||||
Net income/(loss) per ordinary share: | ||||||||||||||||||||||||||||||||||||||||||||||||||
-Basic | # | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | # | $ | 0.01 | # | |||||||||||||||||||||||||||||||||||||
-Diluted | # | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | # | $ | 0.01 | # | |||||||||||||||||||||||||||||||||||||
Net income/(loss) per American Depositary Share: | ||||||||||||||||||||||||||||||||||||||||||||||||||
-Basic | $ | 0.04 | $ | 0.18 | $ | 0.19 | $ | 0.25 | $ | 0.22 | $ | 0.16 | $ | 0.23 | $ | (0.11) | ||||||||||||||||||||||||||||||||||
-Diluted | $ | 0.04 | $ | 0.17 | $ | 0.18 | $ | 0.24 | $ | 0.21 | $ | 0.15 | $ | 0.23 | $ | (0.11) | ||||||||||||||||||||||||||||||||||
Ordinary shares: | ||||||||||||||||||||||||||||||||||||||||||||||||||
-Weighted average | 564,465 | 566,025 | 561,934 | 561,859 | 562,060 | 554,781 | 550,133 | 547,664 | ||||||||||||||||||||||||||||||||||||||||||
-Diluted weighted average | 586,627 | 587,616 | 580,617 | 580,077 | 579,241 | 570,011 | 562,412 | 547,664 | ||||||||||||||||||||||||||||||||||||||||||
American Depositary Shares: | ||||||||||||||||||||||||||||||||||||||||||||||||||
-Weighted average | 22,579 | 22,641 | 22,477 | 22,474 | 22,482 | 22,191 | 22,005 | 21,907 | ||||||||||||||||||||||||||||||||||||||||||
-Diluted weighted average | 23,465 | 23,505 | 23,225 | 23,203 | 23,170 | 22,800 | 22,496 | 21,907 | ||||||||||||||||||||||||||||||||||||||||||
# Amount less than $0.01 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Subscription Revenue Growth Rate: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Due to the significant portion of our customers who are invoiced in non-U.S. Dollar denominated currencies, we also calculate our subscription revenue growth rate on a constant currency basis, thereby removing the effect of currency fluctuation on our results of operations. | ||||||||||||||||||||||||||||||||||||||||||||||||||
The unaudited table below shows our year over year subscription revenue growth rate on both an actual and constant currency basis. | ||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, | September 30, | December 31, | March 31, | June 30, | September 30, | December 31, | March 31, | |||||||||||||||||||||||||||||||||||||||||||
2018 | 2018 | 2018 | 2019 | 2019 | 2019 | 2019 | 2020 | |||||||||||||||||||||||||||||||||||||||||||
Actual FX rates | 21.8 | % | 12.4 | % | 11.2 | % | 2.7 | % | 2.2 | % | 7.7 | % | 5.4 | % | (0.7) | % | ||||||||||||||||||||||||||||||||||
Constant currency | 18.4 | % | 18.3 | % | 15.6 | % | 13.1 | % | 11.2 | % | 10.7 | % | 7.8 | % | 5.6 | % | ||||||||||||||||||||||||||||||||||
Adjusted EBITDA: | ||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands, unless otherwise stated) | ||||||||||||||||||||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, | September 30, | December 31, | March 31, | June 30, | September 30, | December 31, | March 31, | |||||||||||||||||||||||||||||||||||||||||||
2018 | 2018 | 2018 | 2019 | 2019 | 2019 | 2019 | 2020 | |||||||||||||||||||||||||||||||||||||||||||
Net income/(loss) for the period | $ | 1,106 | $ | 3,991 | $ | 4,169 | $ | 5,544 | $ | 4,996 | $ | 3,346 | $ | 5,094 | $ | (2,449) | ||||||||||||||||||||||||||||||||||
Plus (less): Income tax expense/(benefit) | 4,192 | 2,192 | 2,015 | 1,416 | 1,140 | 3,058 | (119) | 5,750 | ||||||||||||||||||||||||||||||||||||||||||
(Less) plus: Net interest (income)/expense | (68) | (31) | (14) | (120) | (73) | (4) | 20 | (10) | ||||||||||||||||||||||||||||||||||||||||||
Plus (less): Foreign exchange losses/(gains) | 18 | (41) | (12) | 7 | (47) | 36 | 173 | 448 | ||||||||||||||||||||||||||||||||||||||||||
Plus: Depreciation (1) | 3,041 | 3,035 | 3,149 | 3,267 | 3,277 | 3,465 | 3,821 | 5,586 | ||||||||||||||||||||||||||||||||||||||||||
Plus: Amortization (2) | 1,021 | 949 | 974 | 932 | 975 | 936 | 1,009 | 903 | ||||||||||||||||||||||||||||||||||||||||||
Plus: Impairment of long-lived assets | — | 2 | — | 60 | — | — | — | 6 | ||||||||||||||||||||||||||||||||||||||||||
Plus: Stock-based compensation costs | 160 | 153 | 120 | 78 | 111 | 178 | 144 | 227 | ||||||||||||||||||||||||||||||||||||||||||
Less: Net (profit)/loss on sale of property and equipment | (2) | (16) | (23) | (2) | (316) | (40) | (17) | 103 | ||||||||||||||||||||||||||||||||||||||||||
(Less) plus: Restructuring costs | (2) | 175 | (2) | 50 | — | (1) | — | — | ||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 9,466 | $ | 10,409 | $ | 10,376 | $ | 11,232 | $ | 10,063 | $ | 10,974 | $ | 10,125 | $ | 10,564 | ||||||||||||||||||||||||||||||||||
Adjusted EBITDA margin | 26.1 | % | 29.5 | % | 28.8 | % | 31.0 | % | 27.7 | % | 29.9 | % | 27.8 | % | 29.2 | % | ||||||||||||||||||||||||||||||||||
(1) Includes depreciation of owned property and equipment (including in-vehicle devices). | ||||||||||||||||||||||||||||||||||||||||||||||||||
(2) Includes amortization of intangible assets (including intangible assets identified as part of a business combination). | ||||||||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP Net Income and EPS: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, | September 30, | December 31, | March 31, | June 30, | September 30, | December 31, | March 31, | |||||||||||||||||||||||||||||||||||||||||||
2018 | 2018 | 2018 | 2019 | 2019 | 2019 | 2019 | 2020 | |||||||||||||||||||||||||||||||||||||||||||
Net income/(loss) for the period | $ | 1,106 | $ | 3,991 | $ | 4,169 | $ | 5,544 | $ | 4,996 | $ | 3,346 | $ | 5,094 | $ | (2,449) | ||||||||||||||||||||||||||||||||||
Net foreign exchange losses/(gains) | 18 | (41) | (12) | 7 | (47) | 36 | 173 | 448 | ||||||||||||||||||||||||||||||||||||||||||
Income tax effect of net foreign exchange losses/(gains) | 2,702 | 403 | 296 | 94 | (532) | 1,150 | (1,450) | 4,860 | ||||||||||||||||||||||||||||||||||||||||||
Non-GAAP net income | $ | 3,826 | $ | 4,353 | $ | 4,453 | $ | 5,645 | $ | 4,417 | $ | 4,532 | $ | 3,817 | $ | 2,859 | ||||||||||||||||||||||||||||||||||
Net income/(loss) per ordinary share - diluted | # | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | # | ||||||||||||||||||||||||||||||||||||
Effect of net foreign exchange losses/(gains) to net income | # | # | # | # | # | # | # | # | ||||||||||||||||||||||||||||||||||||||||||
Income tax effect of net foreign exchange losses/(gains) | # | # | # | # | # | # | # | # | ||||||||||||||||||||||||||||||||||||||||||
Non-GAAP net income per ordinary share - diluted | # | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | # | ||||||||||||||||||||||||||||||||||||
Net income/(loss) per American Depositary Share - diluted | $ | 0.04 | $ | 0.17 | $ | 0.18 | $ | 0.24 | $ | 0.21 | $ | 0.15 | $ | 0.23 | $ | (0.11) | ||||||||||||||||||||||||||||||||||
Effect of net foreign exchange losses/(gains) to net income | # | # | # | # | # | # | 0.01 | 0.02 | ||||||||||||||||||||||||||||||||||||||||||
Income tax effect of net foreign exchange losses/(gains) | 0.12 | 0.02 | 0.01 | # | (0.02) | 0.05 | (0.07) | 0.22 | ||||||||||||||||||||||||||||||||||||||||||
Non-GAAP net income per American Depositary Share - diluted | $ | 0.16 | $ | 0.19 | $ | 0.19 | $ | 0.24 | $ | 0.19 | $ | 0.20 | $ | 0.17 | $ | 0.13 | ||||||||||||||||||||||||||||||||||
# Amount less than $0.01 |
Development expenditure | ||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, | September 30, | December 31, | March 31, | June 30, | September 30, | December 31, | March 31, | |||||||||||||||||||||||||||||||||||||||||||
2018 | 2018 | 2018 | 2019 | 2019 | 2019 | 2019 | 2020 | |||||||||||||||||||||||||||||||||||||||||||
Costs capitalized (1) | $ | 1,004 | $ | 904 | $ | 901 | $ | 827 | $ | 836 | $ | 872 | $ | 830 | $ | 821 | ||||||||||||||||||||||||||||||||||
Costs expensed | 1,700 | 1,495 | 1,374 | 1,420 | 1,500 | 1,351 | 1,403 | 1,213 | ||||||||||||||||||||||||||||||||||||||||||
Total costs incurred | $ | 2,704 | $ | 2,399 | $ | 2,275 | $ | 2,247 | $ | 2,336 | $ | 2,223 | $ | 2,233 | $ | 2,034 | ||||||||||||||||||||||||||||||||||
Percentage capitalized | 37.1 | % | 37.7 | % | 39.6 | % | 36.8 | % | 35.8 | % | 39.2 | % | 37.2 | % | 40.4 | % | ||||||||||||||||||||||||||||||||||
(1) Costs capitalized relate only to the development of internal-use software. Product development costs are expensed when incurred. |
SEGMENT ANALYSIS | ||||||||||||||||||||||||||
Year Ended March 31, 2018 | ||||||||||||||||||||||||||
(In thousands) (Unaudited) | Subscription Revenue | Hardware and Other Revenue | Total Revenue | Segment Adjusted EBITDA | ||||||||||||||||||||||
Regional Sales Offices | ||||||||||||||||||||||||||
Africa | $ | 67,153 | $ | 6,528 | $ | 73,681 | $ | 33,929 | ||||||||||||||||||
Europe | 8,865 | 6,007 | 14,872 | 5,027 | ||||||||||||||||||||||
Americas | 14,998 | 2,517 | 17,515 | 6,089 | ||||||||||||||||||||||
Middle East and Australasia | 15,409 | 6,035 | 21,444 | 8,221 | ||||||||||||||||||||||
Brazil | 3,904 | 284 | 4,188 | 1,289 | ||||||||||||||||||||||
Total Regional Sales Offices | 110,329 | 21,371 | 131,700 | 54,555 | ||||||||||||||||||||||
Central Services Organization | 70 | 11 | 81 | (11,534) | ||||||||||||||||||||||
Total Segment Results | $ | 110,399 | $ | 21,382 | $ | 131,781 | $ | 43,021 | ||||||||||||||||||
Year Ended March 31, 2019 | ||||||||||||||||||||||||||
(In thousands) (Unaudited) | Subscription Revenue | Hardware and Other Revenue | Total Revenue | Segment Adjusted EBITDA | ||||||||||||||||||||||
Regional Sales Offices | ||||||||||||||||||||||||||
Africa | $ | 70,503 | $ | 5,457 | $ | 75,960 | $ | 35,238 | ||||||||||||||||||
Europe | 10,221 | 5,034 | 15,255 | 4,931 | ||||||||||||||||||||||
Americas | 21,279 | 2,646 | 23,925 | 11,097 | ||||||||||||||||||||||
Middle East and Australasia | 16,439 | 7,089 | 23,528 | 10,610 | ||||||||||||||||||||||
Brazil | 4,654 | 322 | 4,976 | 2,007 | ||||||||||||||||||||||
Total Regional Sales Offices | 123,096 | 20,548 | 143,644 | 63,883 | ||||||||||||||||||||||
Central Services Organization | 54 | 7 | 61 | (11,411) | ||||||||||||||||||||||
Total Segment Results | $ | 123,150 | $ | 20,555 | $ | 143,705 | $ | 52,472 | ||||||||||||||||||
Year Ended March 31, 2020 | ||||||||||||||||||||||||||
(In thousands) (Unaudited) | Subscription Revenue | Hardware and Other Revenue | Total Revenue | Segment Adjusted EBITDA | ||||||||||||||||||||||
Regional Sales Offices | ||||||||||||||||||||||||||
Africa | $ | 70,886 | $ | 5,870 | $ | 76,756 | $ | 33,103 | ||||||||||||||||||
Europe | 11,682 | 3,345 | 15,027 | 5,603 | ||||||||||||||||||||||
Americas | 22,322 | 2,207 | 24,529 | 10,370 | ||||||||||||||||||||||
Middle East and Australasia | 17,389 | 5,741 | 23,130 | 11,031 | ||||||||||||||||||||||
Brazil | 5,181 | 614 | 5,795 | 2,366 | ||||||||||||||||||||||
Total Regional Sales Offices | 127,460 | 17,777 | 145,237 | 62,473 | ||||||||||||||||||||||
Central Services Organization | 110 | 303 | 413 | (9,175) | ||||||||||||||||||||||
Total Segment Results | $ | 127,570 | $ | 18,080 | $ | 145,650 | $ | 53,298 | ||||||||||||||||||
Year Ended March 31, | ||||||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||||||
Segment Adjusted EBITDA | $ | 43,021 | $ | 52,472 | $ | 53,298 | ||||||||||||||
Corporate and consolidation entries | (9,018) | (8,631) | (8,366) | |||||||||||||||||
Operating lease costs (1) | — | (988) | (1,610) | |||||||||||||||||
Product development costs (2) | (1,162) | (1,449) | (1,363) | |||||||||||||||||
Loss contingency (3) | 17 | 15 | (233) | |||||||||||||||||
Expected credit losses (4) | — | 64 | — | |||||||||||||||||
Depreciation and amortization | (15,524) | (16,368) | (19,972) | |||||||||||||||||
Impairment of long-lived assets | (199) | (62) | (6) | |||||||||||||||||
Stock-based compensation costs | (797) | (511) | (660) | |||||||||||||||||
Decrease/(increase) in restructuring costs | 57 | (221) | 1 | |||||||||||||||||
Net profit on sale of property and equipment | 98 | 43 | 270 | |||||||||||||||||
Net foreign exchange (losses)/gains | (390) | 28 | (610) | |||||||||||||||||
Net interest income | 385 | 233 | 67 | |||||||||||||||||
Income before tax expense for the year | $ | 16,488 | $ | 24,625 | $ | 20,816 | ||||||||||||||
Description of reconciling items: | ||||||||||||||||||||
1.For segment reporting purposes for fiscal 2018, operating leases were expensed over the lease term on a straight-line basis, and the resultant lease expense was included in Segment Adjusted EBITDA. From fiscal 2019, 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 with a term that ended by March 31, 2019 or leases of low value assets. Where operating leases are capitalized for segment purposes, the amortization of the right-of-use asset, and the interest on the operating lease liability are excluded from the Segment Adjusted EBITDA. ASC 842 Leases was adopted early from fiscal 2019, therefore, in order to reconcile Segment Adjusted EBITDA to income before taxes for fiscal 2019 and fiscal 2020, the total lease expense in respect of operating leases needs to be deducted. | ||||||||||||||||||||
2.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. | ||||||||||||||||||||
3.For segment reporting purposes, a loss contingency (51% probability), which had been raised prior to fiscal 2018 was increased during fiscal 2018 and fiscal 2019. As of March 31, 2020, the loss contingency was no longer needed because an outflow is now considered remote. For GAAP, this loss contingency has never been recognized because the recognition requirements of ASC 450 Contingencies have never been met. Therefore, in order to reconcile Segment Adjusted EBITDA to net income before taxes, these aforementioned increases/decreases, recognized for segment reporting purposes, need to be added/deducted. | ||||||||||||||||||||
4.For segment reporting purposes, from fiscal 2019, the allowance for doubtful debts has been determined using an expected credit loss model; whereas in fiscal 2018, an incurred loss model was used. This resulted in a higher doubtful 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 GAAP purposes, which is why there is no longer a reconciling item. | ||||||||||||||||||||
Year Ended March 31, | ||||||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||||||
Net income for the year | $ | 13,952 | $ | 14,810 | $ | 10,987 | ||||||||||||||
Plus: Income tax expense | 2,536 | 9,815 | 9,829 | |||||||||||||||||
Less: Net interest income | (385) | (233) | (67) | |||||||||||||||||
Plus (less): Foreign exchange losses/(gains) | 390 | (28) | 610 | |||||||||||||||||
Plus: Depreciation (1) | 11,693 | 12,492 | 16,149 | |||||||||||||||||
Plus: Amortization (2) | 3,831 | 3,876 | 3,823 | |||||||||||||||||
Plus: Impairment of long-lived assets | 199 | 62 | 6 | |||||||||||||||||
Plus: Stock-based compensation costs | 797 | 511 | 660 | |||||||||||||||||
Less: Net profit on sale of property and equipment | (98) | (43) | (270) | |||||||||||||||||
(Less) plus: Restructuring costs | (57) | 221 | (1) | |||||||||||||||||
Adjusted EBITDA | $ | 32,858 | $ | 41,483 | $ | 41,726 | ||||||||||||||
Adjusted EBITDA margin | 24.9 | % | 28.9 | % | 28.6 | % | ||||||||||||||
(1) Includes depreciation of owned property and equipment (including in-vehicle devices). | ||||||||||||||||||||
(2) Includes amortization of intangible assets (including intangible assets identified as part of a business combination). | ||||||||||||||||||||
Year Ended March 31, | ||||||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||||||
Net income for the year | $ | 13,952 | $ | 14,810 | $ | 10,987 | ||||||||||||||
Net foreign exchange losses/(gains) | 390 | (28) | 610 | |||||||||||||||||
Income tax effect of net foreign exchange losses/(gains) | (2,263) | 3,495 | 4,028 | |||||||||||||||||
Non-GAAP net income | $ | 12,079 | $ | 18,277 | $ | 15,625 | ||||||||||||||
Net income per ordinary share - diluted | $ | 0.02 | $ | 0.03 | $ | 0.03 | ||||||||||||||
Effect of net foreign exchange losses/(gains) to net income | # | # | # | |||||||||||||||||
Income tax effect of net foreign exchange losses/(gains) | # | # | # | |||||||||||||||||
Non-GAAP net income per ordinary share - diluted | $ | 0.02 | $ | 0.03 | $ | 0.03 | ||||||||||||||
Net income per ADS - diluted | $ | 0.61 | $ | 0.63 | $ | 0.48 | ||||||||||||||
Effect of net foreign exchange losses/(gains) to net income | 0.02 | # | 0.03 | |||||||||||||||||
Income tax effect of net foreign exchange losses/(gains) | (0.10) | 0.15 | 0.18 | |||||||||||||||||
Non-GAAP net income per ADS - diluted | $ | 0.53 | $ | 0.78 | $ | 0.69 | ||||||||||||||
# Amount less than $0.01 |
Year Ended March 31, | ||||||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||||||
Net cash generated from operating activities | $ | 26,018 | $ | 31,455 | $ | 28,178 | ||||||||||||||
Less: Capital expenditure payments | (24,868) | (19,385) | (20,372) | |||||||||||||||||
Free cash flow | $ | 1,150 | $ | 12,070 | $ | 7,806 | ||||||||||||||
Subscription Revenue: | |||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | Year Over Year Change | Year Ended March 31, | Year Over Year Change | ||||||||||||||||||||||||||||||||
2019 | 2020 | 2019 | 2020 | ||||||||||||||||||||||||||||||||
Subscription revenue as reported | $ | 31,696 | $ | 31,471 | (0.7) | % | $ | 123,150 | $ | 127,570 | 3.6 | % | |||||||||||||||||||||||
Conversion impact U.S. Dollar/other currencies | — | 2,000 | 6.3 | % | — | 6,294 | 5.1 | % | |||||||||||||||||||||||||||
Subscription revenue on a constant currency basis | $ | 31,696 | $ | 33,471 | 5.6 | % | $ | 123,150 | $ | 133,864 | 8.7 | % | |||||||||||||||||||||||
Total Revenue: | |||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | Year Over Year Change | Year Ended March 31, | Year Over Year Change | ||||||||||||||||||||||||||||||||
2019 | 2020 | 2019 | 2020 | ||||||||||||||||||||||||||||||||
Total revenue as reported | $ | 36,257 | $ | 36,237 | (0.1) | % | $ | 143,705 | $ | 145,650 | 1.4 | % | |||||||||||||||||||||||
Conversion impact U.S. Dollar/other currencies | — | 2,195 | 6.1 | % | — | 7,108 | 4.9 | % | |||||||||||||||||||||||||||
Total revenue on a constant currency basis | $ | 36,257 | $ | 38,432 | 6.0 | % | $ | 143,705 | $ | 152,758 | 6.3 | % | |||||||||||||||||||||||
CONSOLIDATED STATEMENT OF INCOME | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Year Ended March 31, 2018 | ||||||||||||||||||||
As Reported Under GAAP | As Reported Under IFRS | Effect of Adoption | ||||||||||||||||||
Revenue | ||||||||||||||||||||
Subscription | $ | 110,399 | $ | 110,399 | $ | — | ||||||||||||||
Hardware and other | 21,382 | 21,382 | — | |||||||||||||||||
Total revenue | 131,781 | 131,781 | — | |||||||||||||||||
Cost of revenue | ||||||||||||||||||||
Subscription | 32,555 | 32,990 | (435) | |||||||||||||||||
Hardware and other | 11,554 | 12,179 | (625) | |||||||||||||||||
Total cost of revenue (1) | 44,109 | 45,169 | (1,060) | |||||||||||||||||
Gross profit | 87,672 | 86,612 | 1,060 | |||||||||||||||||
Operating expenses | ||||||||||||||||||||
Sales and marketing | 14,235 | 14,235 | — | |||||||||||||||||
Research and development (1) | 6,148 | 4,988 | 1,160 | |||||||||||||||||
Administrative and other (1) | 51,123 | 51,175 | (52) | |||||||||||||||||
Income from operations | 16,166 | 16,214 | (48) | |||||||||||||||||
Other expense (2) | 63 | 63 | — | |||||||||||||||||
Net interest income | 385 | 385 | — | |||||||||||||||||
Income before income tax expense | 16,488 | 16,536 | (48) | |||||||||||||||||
Income tax expense (3) | 2,536 | 2,593 | (57) | |||||||||||||||||
Net income for the year | $ | 13,952 | $ | 13,943 | $ | 9 | ||||||||||||||
Description of reconciling items: | ||||||||||||||||||||
1.Product development costs are capitalized under IFRS, and the related amortization is recognized in cost of revenue. Impairments of capitalized product development costs are recognized in operating expenses – administrative and other – under IFRS. Under GAAP, the product development costs capitalized under IFRS did not qualify for capitalization, and hence are expensed when incurred. They are recognized in operating expenses – research and development. | ||||||||||||||||||||
2.Foreign exchange losses of $0.4 million have been reclassified from net interest income under IFRS for comparison purposes. | ||||||||||||||||||||
3.Under IFRS, the Company meets the exemption from recognizing deferred tax on its investments in subsidiaries (often referred to as 'outside basis' deferred tax). The Company does not meet the exemption under GAAP. Additional deferred tax of $0.03 million was recognized under GAAP, in addition to the tax effect of the GAAP adjustments to income before income tax expense. |
CONSOLIDATED STATEMENT OF INCOME | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Year Ended March 31, 2019 | ||||||||||||||||||||
As Reported Under GAAP | As Reported Under IFRS | Difference | ||||||||||||||||||
Revenue | ||||||||||||||||||||
Subscription | $ | 123,150 | $ | 123,150 | $ | — | ||||||||||||||
Hardware and other | 20,555 | 20,555 | — | |||||||||||||||||
Total revenue | 143,705 | 143,705 | — | |||||||||||||||||
Cost of revenue | ||||||||||||||||||||
Subscription | 34,940 | 35,312 | (372) | |||||||||||||||||
Hardware and other | 11,945 | 12,388 | (443) | |||||||||||||||||
Total cost of revenue (1) | 46,885 | 47,700 | (815) | |||||||||||||||||
Gross profit | 96,820 | 96,005 | 815 | |||||||||||||||||
Operating expenses | ||||||||||||||||||||
Sales and marketing | 14,489 | 14,489 | — | |||||||||||||||||
Research and development (1) | 5,989 | 4,540 | 1,449 | |||||||||||||||||
Administrative and other (2) | 52,051 | 52,401 | (350) | |||||||||||||||||
Income from operations | 24,291 | 24,575 | (284) | |||||||||||||||||
Other income (3) | 101 | 101 | — | |||||||||||||||||
Net interest income (4) | 233 | 73 | 160 | |||||||||||||||||
Income before income tax expense | 24,625 | 24,749 | (124) | |||||||||||||||||
Income tax expense (5) | 9,815 | 10,034 | (219) | |||||||||||||||||
Net income for the year | $ | 14,810 | $ | 14,715 | $ | 95 | ||||||||||||||
Description of reconciling items: | ||||||||||||||||||||
1.Product development costs are capitalized under IFRS, and the related amortization is recognized in cost of revenue. Impairments of capitalized product development costs are recognized in operating expenses – administrative and other – under IFRS. Under GAAP, the product development costs capitalized under IFRS did not qualify for capitalization, and hence are expensed when incurred and are recognized in operating expenses – research and development. | ||||||||||||||||||||
2.Under IFRS, the performance conditions on a certain stock-based compensation plan were treated as non-vesting conditions, and accordingly a stock-based compensation expense of $0.4 million was recognized under IFRS even though it was not probable that the performance conditions would be met. Under GAAP, these performance conditions met the requirements to be treated as vesting conditions, and hence no related stock-based compensation expense was recognized under GAAP. This accounted for a difference in administrative and other in addition to those differences mentioned in 1. and 4. | ||||||||||||||||||||
3.Foreign exchange gains of $0.03 million have been reclassified from net interest income under IFRS for comparison purposes. | ||||||||||||||||||||
4.Interest expense on operating lease liabilities is recognized as part of the total lease expense in administrative and other under GAAP. |
5.Under IFRS, the Company meets the exemption from recognizing deferred tax on its investments in subsidiaries (often referred to as 'outside basis' deferred tax). The Company does not meet the exemption under GAAP, which resulted in the recognition of additional deferred tax of $0.04 million under GAAP. Under IFRS, the deferred tax effect of eliminating unearned profits on inter-company sales of inventory is measured at the buyer's tax rate; whereas under GAAP the tax actually incurred by the seller is deferred until the inventory is sold to a third party. This resulted in an additional amount of tax of $0.05 million being deferred under GAAP. The other income tax differences are attributable to the tax effect of the GAAP adjustments to income before income tax expense. | ||||||||||||||||||||
CONSOLIDATED STATEMENT OF INCOME | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Year Ended March 31, 2020 | ||||||||||||||||||||
As Reported Under GAAP | As Reported Under IFRS | Difference | ||||||||||||||||||
Revenue | ||||||||||||||||||||
Subscription | $ | 127,570 | $ | 127,570 | $ | — | ||||||||||||||
Hardware and other | 18,080 | 18,080 | — | |||||||||||||||||
Total revenue | 145,650 | 145,650 | — | |||||||||||||||||
Cost of revenue | ||||||||||||||||||||
Subscription | 39,828 | 40,209 | (381) | |||||||||||||||||
Hardware and other | 13,187 | 13,720 | (533) | |||||||||||||||||
Total cost of revenue (1) | 53,015 | 53,929 | (914) | |||||||||||||||||
Gross profit | 92,635 | 91,721 | 914 | |||||||||||||||||
Operating expenses | ||||||||||||||||||||
Sales and marketing | 13,324 | 13,324 | — | |||||||||||||||||
Research and development (1) | 5,467 | 4,104 | 1,363 | |||||||||||||||||
Administrative and other (2) (3) | 52,796 | 53,235 | (439) | |||||||||||||||||
Income from operations | 21,048 | 21,058 | (10) | |||||||||||||||||
Other expense (3) | 299 | 601 | (302) | |||||||||||||||||
Net interest income/(expense) (4) | 67 | (348) | 415 | |||||||||||||||||
Income before income tax expense | 20,816 | 20,109 | 707 | |||||||||||||||||
Income tax expense (5) | 9,829 | 10,296 | (467) | |||||||||||||||||
Net income for the year | $ | 10,987 | $ | 9,813 | $ | 1,174 | ||||||||||||||
Description of reconciling items: | ||||||||||||||||||||
1.Product development costs are capitalized under IFRS, and the related amortization is recognized in cost of revenue. Impairments of capitalized product development costs are recognized in operating expenses – administrative and other – under IFRS. Under GAAP, the product development costs capitalized under IFRS did not qualify for capitalization, and hence are expensed when incurred and are recognized in operating expenses – research and development. | ||||||||||||||||||||
2.Under IFRS, the performance conditions on a certain stock-based compensation plan were treated as non-vesting conditions, and accordingly a stock-based compensation expense of $0.9 million was recognized under IFRS even though it was not probable that the performance conditions would be met. Under GAAP, these performance conditions met the requirements to be treated as vesting conditions, and hence no related stock-based compensation expense was recognized under GAAP. Under IFRS, a provision of $0.2 million was reversed since it was no longer needed. Under GAAP, this reversal was not recognized because the provision had previously not been recognized under GAAP due to the recognition threshold not being met. Both of these differences are reflected in the differences in administrative and other, in addition to the differences mentioned in 1.and 4. | ||||||||||||||||||||
3.Under IFRS the gain on a property sale and leaseback was calculated in respect of only the proportion of the property that was not retained via the leaseback, and the right-of-use asset was recognized initially at the proportion of the carrying value of the property retained via the lease. Under GAAP the gain was calculated in the same manner as an outright sale, and the leaseback was recognized in the same manner as an independent lease, resulting in the right-of-use asset being recognized initially at an amount equal to the initial lease liability. Other expense is lower under GAAP due to the gain on the sale and leaseback being $0.3 million higher than under IFRS. Foreign exchange losses of $0.6 million have been reclassified from net interest income under IFRS for comparison purposes. |
4.Interest expense on operating lease liabilities is recognized as part of the total lease expense in administrative and other under GAAP. | ||||||||||||||||||||
5.Under IFRS, a tax asset, relating to certain tax allowances that previously were disallowed by the tax authority in South Africa, had been raised. Given that it was considered that the chance of success was only 50%, the tax asset was measured to reflect this. Under GAAP, this tax asset had not been raised because it was not considered probable. During fiscal 2020, the tax authority has confirmed that these tax allowances will be granted. Accordingly, under GAAP, the current tax asset that had previously not been recognized, was recognized. This resulted in a reduction of $0.2 million in the GAAP tax expense as compared to IFRS. Under IFRS, before stock options are exercised, the tax effect of any potential tax benefit, to be received upon exercise, in excess of the cumulative stock-based compensation expense recognized, is recognized as deferred tax directly in equity in the stock-based compensation reserve. Upon exercise, the deferred tax is reversed through equity, and the tax effect of the tax benefit received in excess of the cumulative stock-based compensation expense recognized, is also recognized directly in equity, in the stock-based compensation reserve. Under GAAP, no deferred tax is recognized in respect of the potential excess tax benefit, and upon exercise, the tax effect of the total tax benefit received, including the excess, is recognized in the Statement of Income. This resulted in the income tax expense under GAAP being $0.2 million lower. Under IFRS, the Company meets the exemption from recognizing deferred tax on its investments in subsidiaries (often referred to as 'outside basis' deferred tax). The Company does not meet the exemption under GAAP, which resulted in a reduction of deferred tax of $0.04 million under GAAP. Under IFRS, the deferred tax effect of eliminating unearned profits on inter-company sales of inventory is measured at the buyer's tax rate; whereas under GAAP the actual tax incurred by the seller is deferred until the inventory is sold to a third party. This resulted in additional tax of $0.01 million being deferred under GAAP. The other income tax differences are attributable to the tax effect of the GAAP adjustments to income before income tax expense. |
MIX TELEMATICS LIMITED | ||||||||||||||||||||
CONSOLIDATED STATEMENT OF CASH FLOWS | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Year Ended March 31, 2018 | ||||||||||||||||||||
As Reported Under GAAP | As Reported Under IFRS | Difference | ||||||||||||||||||
Operating activities: | ||||||||||||||||||||
Cash generated from operations (1) | $ | 30,621 | $ | 31,784 | $ | (1,163) | ||||||||||||||
Interest received | 660 | 660 | — | |||||||||||||||||
Interest paid | (287) | (287) | — | |||||||||||||||||
Income tax paid | (4,976) | (4,976) | — | |||||||||||||||||
Net cash generated from operating activities | 26,018 | 27,181 | (1,163) | |||||||||||||||||
Investing activities: | ||||||||||||||||||||
Additions to property and equipment | (18,365) | (18,365) | — | |||||||||||||||||
Proceeds on disposal of property and equipment | 338 | 338 | — | |||||||||||||||||
Additions to intangibles (1) | (6,503) | (7,666) | 1,163 | |||||||||||||||||
Net cash used in investing activities | (24,530) | (25,693) | 1,163 | |||||||||||||||||
Financing activities: | ||||||||||||||||||||
Share capital raised | 825 | 825 | — | |||||||||||||||||
Share buy back | (1,436) | (1,436) | — | |||||||||||||||||
Dividends paid to ordinary shareholders | (4,094) | (4,094) | — | |||||||||||||||||
Transaction with non-controlling interest | (104) | (104) | — | |||||||||||||||||
Movement in short-term debt (2) | (23) | (23) | ||||||||||||||||||
Net cash used in financing activities | (4,832) | (4,809) | (23) | |||||||||||||||||
Net decrease in cash and cash equivalents (2), and restricted cash (3) | (3,344) | (3,321) | (23) | |||||||||||||||||
Cash and cash equivalents (2), and restricted cash (3) at beginning of the year | 29,007 | 27,557 | 1,450 | |||||||||||||||||
Exchange gains on cash and cash equivalents (2), and restricted cash (3) | 2,171 | 2,100 | 71 | |||||||||||||||||
Cash and cash equivalents (2), and restricted cash (3) at the end of the year | $ | 27,834 | $ | 26,336 | $ | 1,498 | ||||||||||||||
Description of reconciling items: | ||||||||||||||||||||
1.Product development costs are capitalized under IFRS; whereas they are expensed as incurred under GAAP. | ||||||||||||||||||||
2.The bank overdraft is included in cash and cash equivalents under IFRS. The movement in bank overdraft (short-term debt) is included in financing activities under GAAP. | ||||||||||||||||||||
3.Restricted cash under IFRS has been reclassified from investing activities and included here to conform with GAAP presentation for comparison purposes. |
MIX TELEMATICS LIMITED | ||||||||||||||||||||
CONSOLIDATED STATEMENT OF CASH FLOWS | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Year Ended March 31, 2019 | ||||||||||||||||||||
As Reported Under GAAP | As Reported Under IFRS | Difference | ||||||||||||||||||
Operating activities: | ||||||||||||||||||||
Cash generated from operations (1)(2)(4) | $ | 36,942 | $ | 39,379 | $ | (2,437) | ||||||||||||||
Interest received | 882 | 882 | — | |||||||||||||||||
Interest paid (2) | (206) | (362) | 156 | |||||||||||||||||
Income tax paid | (6,163) | (6,163) | — | |||||||||||||||||
Net cash generated from operating activities | 31,455 | 33,736 | (2,281) | |||||||||||||||||
Investing activities: | ||||||||||||||||||||
Additions to property and equipment | (14,607) | (14,607) | — | |||||||||||||||||
Proceeds on disposal of property and equipment | 162 | 162 | — | |||||||||||||||||
Additions to intangibles (1) | (4,778) | (6,227) | 1,449 | |||||||||||||||||
Net cash used in investing activities | (19,223) | (20,672) | 1,449 | |||||||||||||||||
Financing activities: | ||||||||||||||||||||
Share capital raised | 1,002 | 1,002 | — | |||||||||||||||||
Share buy back | (5,349) | (5,349) | — | |||||||||||||||||
Dividends paid to ordinary shareholders | (4,907) | (4,907) | — | |||||||||||||||||
Payments of lease liability (3) | (832) | 832 | ||||||||||||||||||
Movement in short-term debt (4) | 650 | 650 | ||||||||||||||||||
Net cash used in financing activities | (8,604) | (10,086) | 1,482 | |||||||||||||||||
Net increase in cash and cash equivalents (4), and restricted cash (5) | 3,628 | 2,978 | 650 | |||||||||||||||||
Cash and cash equivalents (4), and restricted cash (5) at beginning of the year | 27,834 | 26,336 | 1,498 | |||||||||||||||||
Exchange losses on cash and cash equivalents (4) and restricted cash (5) | (3,624) | (3,563) | (61) | |||||||||||||||||
Cash and cash equivalents (4), and restricted cash (5) at the end of the year | $ | 27,838 | $ | 25,751 | $ | 2,087 | ||||||||||||||
Description of reconciling items: | ||||||||||||||||||||
1.Product development costs are capitalized under IFRS; whereas they are expensed as incurred under GAAP. | ||||||||||||||||||||
2.Interest payments on operating lease liabilities are not classified as interest under GAAP. These cash flows are included in cash generated from operations under GAAP. | ||||||||||||||||||||
3.Capital repayments on operating lease liabilities are included in cash generated from operations under GAAP. | ||||||||||||||||||||
4.The bank overdraft is included in cash and cash equivalents under IFRS. The movement in bank overdraft (short-term debt) is included in financing activities under GAAP. | ||||||||||||||||||||
5.Restricted cash under IFRS has been reclassified from investing activities and included here to conform with GAAP presentation for comparison purposes. |
MIX TELEMATICS LIMITED | ||||||||||||||||||||
CONSOLIDATED STATEMENT OF CASH FLOWS | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Year Ended March 31, 2020 | ||||||||||||||||||||
As Reported Under GAAP | As Reported Under IFRS | Difference | ||||||||||||||||||
Operating activities: | ||||||||||||||||||||
Cash generated from operations (1)(2)(3) | $ | 33,473 | $ | 36,322 | $ | (2,849) | ||||||||||||||
Interest received | 683 | 683 | — | |||||||||||||||||
Interest paid (2) | (204) | (547) | 343 | |||||||||||||||||
Income tax paid | (5,774) | (5,774) | — | |||||||||||||||||
Net cash generated from operating activities | 28,178 | 30,684 | (2,506) | |||||||||||||||||
Investing activities: | ||||||||||||||||||||
Additions to property and equipment | (14,706) | (14,706) | — | |||||||||||||||||
Proceeds on disposal of property and equipment | 1,294 | 1,294 | — | |||||||||||||||||
Additions to intangibles (1) | (5,666) | (7,029) | 1,363 | |||||||||||||||||
Loans advanced to external parties | (344) | (344) | — | |||||||||||||||||
Net cash used in investing activities | (19,422) | (20,785) | 1,363 | |||||||||||||||||
Financing activities: | ||||||||||||||||||||
Share buy back | (9,764) | (9,764) | — | |||||||||||||||||
Dividends paid to ordinary shareholders | (5,999) | (5,999) | — | |||||||||||||||||
Payments of lease liability (3) | (1,143) | 1,143 | ||||||||||||||||||
Movement in short-term debt (4) | 312 | 312 | ||||||||||||||||||
Net cash used in financing activities | (15,451) | (16,906) | 1,455 | |||||||||||||||||
Net decrease in cash and cash equivalents (4), and restricted cash (5) | (6,695) | (7,007) | 312 | |||||||||||||||||
Cash and cash equivalents (4), and restricted cash (5) at beginning of the year | 27,838 | 25,751 | 2,087 | |||||||||||||||||
Exchange losses on cash and cash equivalents (4) and restricted cash (5) | (2,491) | (2,459) | (32) | |||||||||||||||||
Cash and cash equivalents (4), and restricted cash (5) at the end of the year | $ | 18,652 | $ | 16,285 | $ | 2,367 | ||||||||||||||
Description of reconciling items: | ||||||||||||||||||||
1.Product development costs are capitalized under IFRS; whereas they are expensed as incurred under GAAP. | ||||||||||||||||||||
2.Interest payments on operating lease liabilities are not classified as interest under GAAP. These cash flows are included in cash generated from operations under GAAP. | ||||||||||||||||||||
3.Capital repayments on operating lease liabilities are included in cash generated from operations under GAAP. | ||||||||||||||||||||
4.The bank overdraft is included in cash and cash equivalents under IFRS. The movement in bank overdraft (short-term debt) is included in financing activities under GAAP. | ||||||||||||||||||||
5.Restricted cash under IFRS has been reclassified from investing activities and included here to conform with GAAP presentation for comparison purposes. |