Q2 FY25 revenue up 7%, to $77.0 million, and Adjusted EBITDA up 41%, to
$14.5 million year-over-year,
demonstrating continued strong execution of the immediate business
objectives post-MiX combination.
First half FY25 results exceeded expectations
with revenue up 9%, to $152.4 million
and Adjusted EBITDA up 46% year-over -year, to $28.2 million.
50% of the planned two-year annualized
cost synergy target of $27 million
secured within 6 months of the close of the MiX
combination.
WOODCLIFF LAKE, N.J., Nov. 12,
2024 /PRNewswire/ -- Powerfleet,
Inc. (Nasdaq: AIOT) reported its financial results
for the second quarter ended September 30,
2024. This marks the second full quarter following the
closing of the business combination with MiX Telematics Ltd. with
the prior year comparison numbers adjusted to reflect the pro forma
financial performance of the combined businesses.
SECOND QUARTER 2025 FINANCIAL HIGHLIGHTS
- Total revenue was $77.0 million,
up 7% year-over-year, driven by the continued strength of our Unity
safety solutions.
- Product revenue rose by 13% year-over-year to $20.3 million, with adjusted gross margins
expanding by 3% sequentially to 35%, exceeding current guidance of
+30%.
- Service revenue growth of 5% was in line with annual revenue
guidance, reaching $56.7 million,
with adjusted gross margins expanding by 1.0% to 63.7% versus the
prior year.
- Realized $13.5 million in annual
cost synergies within the first six months of the MiX combination,
achieving 50% of the two-year $27
million target. Cost synergies are the major driver of
reduction in adjusted operating expenses, which declined by over 5%
to $36.9 million versus the prior
year.
- Adjusted EBITDA, a non-GAAP metric, increased by 41% to
$14.5 million versus the prior year,
benefiting from the flow through of expanded gross profit and the
realization of cost synergies.
FIRST HALF 2025 FINANCIAL HIGHLIGHTS
- Total revenue was $152.4 million,
up 9% year-over-year, running ahead of annual guidance and
reflecting strong execution in the first six months following the
close of the MiX combination.
- Gross profit, after adjusting for the amortization of
acquisition-related intangibles and other integration expenses,
increased by $6.4 million, or 8%
versus the prior year.
- Adjusted EBITDA, a non-GAAP metric, increased by $8.9 million, or 46%, to $28.2 million versus the prior year, driven by
increased gross margin from higher sales and the benefits of cost
synergies.
MANAGEMENT COMMENTARY
"Just six months into the MiX combination, we're already seeing
the integration gain strong momentum, setting the foundation for us
to fully capitalize on the additional strategic opportunities
offered by the Fleet Complete acquisition," said CEO Steve Towe.
"In the first half of fiscal 2025, we reported revenue of
$152 million—up 9% from last year—and
a 46% increase in adjusted EBITDA to $28.2
million. We have already secured $13.5 million in annual run-rate cost synergies,
achieving 50% of our two-year $27
million target from the MiX combination within 6
months."
"We are energized by the expanded opportunities gained through
the Fleet Complete acquisition. Our strategic direction is sharply
focused on three key priorities: maximizing efficiency to
accelerate adjusted EBITDA growth, driving towards accelerated
top-line revenue expansion, and enhancing customer retention. These
priorities serve as the foundation for how we align our resources,
empower our teams, and execute initiatives for maximum impact."
"On the revenue front, we're driving the adoption of our Unity
platform, in-warehouse solutions, and AI camera offerings to meet
growing demand across North
America, Europe, and
beyond. Leveraging the Fleet Complete North American channel
relationships, we expect accelerated growth beginning in FY2026, as
well as global traction for their mid-market products and
differentiated AI camera solutions. These initiatives underscore
our strategy to capture high-demand markets while deepening
customer engagement and expanding wallet share with highly sticky
integrated solutions."
SECOND QUARTER 2025 FINANCIAL RESULTS
Total revenue for the quarter increased by 7% year-over-year to
$77.0 million, up from $72.0 million in the same period of the prior
year. This growth was largely driven by the continued success of
our differentiated safety-centric product solutions, with product
revenue, a leading indicator, increasing 13% to $20.3 million.
Service revenue grew by 5% year-over-year to $56.7 million, aligning with our annual guidance
and demonstrating the resilience of our broad offerings and global
portfolio, which more than offset the previously disclosed expected
churn in the legacy MiX customer base.
Combined gross margin of 53.7% reflects a $1.2 million non-cash amortization expense
related to acquisition-related intangibles from the MiX
combination, along with $0.7 million
in inventory write-offs due to integration efforts to streamline
product offerings. Excluding these expenses, adjusted gross margin
was 56.1%, in both the current and prior year.
Operating expenses for the quarter totaled $40.8 million, including $3.9 million in one-time transaction and
restructuring costs, versus the prior year of $41.0 million, which included $2.0 million in one-time costs. On an adjusted
basis, total operating expenses were down by 5% annually,
reflecting the success of our cost synergy program, which secured
$13.5 million in annual savings
through the end of September.
We reported a net loss attributable to common stockholders of
$1.9 million, or $(0.02) per share, compared to $(0.06) in the prior year. However, after
adjusting for one-time expenses and the amortization of
acquisition-related intangibles, adjusted earnings per basic share
was $0.02 for the current year versus
a loss of $(0.01) in the prior
period.
Adjusted EBITDA increased by 41% to $14.5
million from $10.3 million in
the previous year. This growth was driven by strong top-line
performance, resulting in a $2.9
million increase in gross margin after accounting for the
impact of the amortization of acquisition-related intangibles plus
the flow through benefits of cost synergies.
Excluding $62 million in proceeds
from the private placement related to the Fleet Complete
acquisition, we ended the quarter with net debt of $119 million. Adjusting for $1.9 million in unsettled transaction costs, pro
forma net debt stood at $121 million,
versus $110 million at the close of
the MiX combination. The $11 million
increase in pro forma net debt was primarily driven by an increase
in net working capital of $8.2
million that is directly attributable to higher net
receivables following strong top-line performance.
FULL-YEAR 2025 FINANCIAL OUTLOOK
We are reaffirming our guidance from the October 2nd fireside chat. Capturing
six months of Fleet Complete's financial performance, full-year
2025 revenue is expected to exceed $352.5
million. Adjusted EBITDA is anticipated to exceed
$72.5 million, inclusive of an
incremental $5 million in secured
exit run-rate cost synergies. This guidance reflects Fleet
Complete's pre-acquisition accounting treatment, which remains
subject to review as we work to conform to US GAAP standards.
INVESTOR CONFERENCE CALL
As previously announced, Powerfleet will hold a conference call
on Tuesday, November 12, 2024, at
8:30 a.m. Eastern time (5:30 a.m. Pacific time) to discuss results for
the second quarter fiscal 2025 ended September 30, 2024.
Management will make prepared remarks followed by a
question-and-answer session.
Date: Tuesday, November 12,
2024
Time: 8:30 a.m. Eastern time
(5:30 a.m. Pacific time)
Toll Free: 888-506-0062
International: 973-528-0011
Participant Access Code: 216765
The conference call will be broadcast simultaneously and available
for replay here and via the investor section of the
company's website at ir.powerfleet.com.
NON-GAAP FINANCIAL MEASURES
To supplement its financial statements presented in accordance
with Generally Accepted Accounting Principles (GAAP), Powerfleet
provides certain non-GAAP measures of financial performance. These
non-GAAP measures include adjusted EBITDA, adjusted gross margin,
adjusted operating expenses, adjusted earnings per share, net debt
and net working capital. Reference to these non-GAAP measures
should be considered in addition to results prepared under current
accounting standards, but are not a substitute for, or superior to,
GAAP results. These non-GAAP measures are provided to enhance
investors' overall understanding of Powerfleet's current financial
performance. Specifically, Powerfleet believes the non-GAAP
measures provide useful information to both management and
investors by excluding certain expenses, gains and losses and
fluctuations in currency rates that may not be indicative of its
core operating results and business outlook. These non-GAAP
measures are not measures of financial performance or liquidity
under GAAP and, accordingly, should not be considered as an
alternative to net income, gross margin, cash flow from operating
activities or earnings per share as an indicator of operating
performance or liquidity. Because Powerfleet's method for
calculating the non-GAAP measures may differ from other companies'
methods, the non-GAAP measures may not be comparable to similarly
titled measures reported by other companies. Reconciliation of all
non-GAAP measures included in this press release to the most
directly comparable GAAP measures can be found in the financial
tables included in this press release.
ABOUT POWERFLEET
Powerfleet (Nasdaq: AIOT; JSE: PWR) is a global leader in the
artificial intelligence of things (AIoT) software-as-a-service
(SaaS) mobile asset industry. With more than 30 years of
experience, Powerfleet unifies business operations through the
ingestion, harmonization, and integration of data, irrespective of
source, and delivers actionable insights to help companies save
lives, time, and money. Powerfleet's ethos transcends our data
ecosystem and commitment to innovation; our people-centric approach
empowers our customers to realize impactful and sustained business
improvement. The company is headquartered in New Jersey, United
States, with offices around the globe. Explore more at
www.powerfleet.com. Powerfleet has a primary listing on The
Nasdaq Global Market and a secondary listing on the Main Board of
the Johannesburg Stock Exchange (JSE).
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within
the meaning of federal securities laws. Powerfleet's actual results
may differ from its expectations, estimates and projections and
consequently, you should not rely on these forward-looking
statements as predictions of future events. Forward-looking
statements may be identified by words such as "expect," "estimate,"
"project," "budget," "forecast," "anticipate," "intend," "plan,"
"may," "will," "could," "should," "believes," "predicts,"
"potential," "continue," and similar expressions.
These forward-looking statements include, without limitation,
our expectations with respect to its beliefs, plans, goals,
objectives, expectations, anticipations, assumptions, estimates,
intentions and future performance, as well as anticipated financial
impacts of our transactions with MiX Telematics and Fleet Complete.
Forward-looking statements involve significant known and unknown
risks, uncertainties and other factors, which may cause their
actual results, performance or achievements to be materially
different from the future results, performance or achievements
expressed or implied by such forward-looking statements. All
statements other than statements of historical fact are statements
that could be forward-looking statements. Most of these factors are
outside our control and are difficult to predict. The risks and
uncertainties referred to above include, but are not limited to,
risks related to: (i) future economic and business conditions,
including the conflict between Israel and Hamas; (ii) integration of our, MiX
Telematics' and Fleet Complete's businesses and the ability to
recognize the anticipated synergies and benefits of the
transactions with MiX Telematics and Fleet Complete; (iii) the loss
of any of our key customers or reduction in the purchase of our
products by any such customers; (iv) the failure of the markets for
our products to continue to develop; (v) the negative effects of
the transactions on the market price of our securities; (vi) our
inability to adequately protect our intellectual property; (vii)
our inability to manage growth; (viii) the effects of competition
from a wide variety of local, regional, national and other
providers of wireless solutions; (ix) failure to make timely
filings of our periodic reports with the Securities and Exchange
Commission ("SEC")and (x) such other factors as are set forth in
the periodic reports filed by us with the SEC, including but not
limited to those described under the heading "Risk Factors" in our
annual reports on Form 10-K, quarterly reports on Form 10-Q and any
other filings made with the SEC from time to time, which are
available via the SEC's website at http://www.sec.gov. Should one
or more of these risks or uncertainties materialize, or should
underlying assumptions prove to be incorrect, actual results may
vary materially from those indicated or anticipated by these
forward-looking statements. Therefore, you should not rely on any
of these forward-looking statements.
The forward-looking statements included in this press release
are made only as of the date of this press release, and except as
otherwise required by applicable securities law, we assume no
obligation, nor do we intend to publicly update or revise any
forward-looking statements to reflect subsequent events or
circumstances.
Powerfleet Investor Contacts
Carolyn Capaccio and Jody Burfening
LHA Investor Relations
AIOTIRTeam@lhai.com
Powerfleet Media Contact
Jonathan Bates
jonathan.bates@powerfleet.com
+44 121 717-5360
|
POWERFLEET, INC. AND
SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands,
except per share data)
|
|
|
Three Months Ended
September 30,
|
|
Six Months Ended
September 30,
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
|
Pro Forma
Combined
|
|
Consolidated
|
|
Pro Forma
Combined
|
|
Consolidated
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Products
|
$
17,947
|
|
$
20,293
|
|
$
32,470
|
|
$
39,031
|
|
Services
|
54,057
|
|
56,725
|
|
107,977
|
|
113,417
|
|
Total
revenues
|
72,004
|
|
77,018
|
|
140,447
|
|
152,448
|
|
|
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
|
|
Cost of
products
|
11,454
|
|
13,929
|
|
22,385
|
|
26,680
|
|
Cost of
services
|
20,169
|
|
21,746
|
|
38,550
|
|
44,777
|
|
Total cost of
revenues
|
31,623
|
|
35,675
|
|
60,935
|
|
71,457
|
|
|
|
|
|
|
|
|
|
Gross profit
|
40,381
|
|
41,343
|
|
79,512
|
|
80,991
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
36,941
|
|
37,335
|
|
71,516
|
|
92,117
|
|
Research and
development expenses
|
4,062
|
|
3,435
|
|
7,626
|
|
6,536
|
|
Total operating
expenses
|
41,003
|
|
40,770
|
|
79,142
|
|
98,653
|
|
|
|
|
|
|
|
|
|
(Loss)/profit from
operations
|
(622)
|
|
573
|
|
370
|
|
(17,662)
|
|
|
|
|
|
|
|
|
|
Interest
income
|
221
|
|
168
|
|
512
|
|
472
|
|
Interest
expense
|
(693)
|
|
(4,042)
|
|
(1,367)
|
|
(6,733)
|
|
Bargain purchase -
Movingdots
|
—
|
|
—
|
|
283
|
|
—
|
|
Other income/(expense),
net
|
385
|
|
1,674
|
|
(324)
|
|
1,050
|
|
|
|
|
|
|
|
|
|
Net loss before income
taxes
|
(709)
|
|
(1,627)
|
|
(526)
|
|
(22,873)
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
(2,591)
|
|
(256)
|
|
(4,427)
|
|
(1,309)
|
|
|
|
|
|
|
|
|
|
Net loss before
non-controlling interest
|
(3,300)
|
|
(1,883)
|
|
(4,953)
|
|
(24,182)
|
|
Non-controlling
interest
|
—
|
|
(5)
|
|
(6)
|
|
(18)
|
|
|
|
|
|
|
|
|
|
Net loss
|
(3,300)
|
|
(1,888)
|
|
(4,959)
|
|
(24,200)
|
|
|
|
|
|
|
|
|
|
Accretion of preferred
stock
|
(1,834)
|
|
—
|
|
(3,606)
|
|
—
|
|
Preferred stock
dividend
|
(1,128)
|
|
—
|
|
(2,257)
|
|
(25)
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to common stockholders
|
$
(6,262)
|
|
$
(1,888)
|
|
$
(10,822)
|
|
$
(24,225)
|
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to common stockholders - basic and diluted
|
$
(0.06)
|
|
$
(0.02)
|
|
$
(0.10)
|
|
$
(0.23)
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding - basic and diluted
|
106,360
|
|
107,532
|
|
106,333
|
|
107,335
|
|
POWERFLEET, INC. AND
SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
(In thousands,
except per share data)
|
|
|
|
March 31,
2024
|
|
September 30,
2024
|
|
|
Pro
Forma
Combined
|
|
Consolidated
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
51,091
|
|
$
25,962
|
|
Restricted
cash
|
|
86,104
|
|
63,074
|
|
Accounts receivables,
net
|
|
55,008
|
|
64,819
|
|
Inventory,
net
|
|
25,800
|
|
23,488
|
|
Deferred costs -
current
|
|
42
|
|
13
|
|
Prepaid expenses and
other current assets
|
|
17,784
|
|
17,985
|
|
Total current
assets
|
|
235,829
|
|
195,341
|
|
Fixed assets,
net
|
|
48,306
|
|
51,928
|
|
Goodwill
|
|
121,713
|
|
300,283
|
|
Intangible assets,
net
|
|
40,444
|
|
167,320
|
|
Right-of-use
asset
|
|
11,222
|
|
9,402
|
|
Severance payable
fund
|
|
3,796
|
|
3,864
|
|
Deferred tax
asset
|
|
3,874
|
|
3,602
|
|
Other assets
|
|
19,090
|
|
16,595
|
|
Total
assets
|
|
$
484,274
|
|
$
748,335
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term bank debt
and current maturities of long-term debt
|
|
$
22,109
|
|
$
35,339
|
|
Accounts payable and
accrued expenses
|
|
60,763
|
|
66,098
|
|
Deferred revenue -
current
|
|
12,236
|
|
10,447
|
|
Lease liability -
current
|
|
2,648
|
|
2,248
|
|
Total current
liabilities
|
|
97,756
|
|
114,132
|
|
Long-term debt - less
current maturities
|
|
113,810
|
|
111,011
|
|
Deferred revenue - less
current portion
|
|
4,892
|
|
4,674
|
|
Lease liability - less
current portion
|
|
8,773
|
|
7,713
|
|
Accrued severance
payable
|
|
4,597
|
|
4,677
|
|
Deferred tax
liability
|
|
18,669
|
|
52,113
|
|
Other long-term
liabilities
|
|
2,980
|
|
2,905
|
|
Total
liabilities
|
|
251,477
|
|
297,225
|
|
|
|
|
|
|
Convertible redeemable
preferred stock: Series A
|
|
90,273
|
|
—
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
Preferred
stock
|
|
—
|
|
—
|
|
Common stock
|
|
63,842
|
|
1,096
|
|
Additional paid-in
capital
|
|
200,218
|
|
641,736
|
|
Accumulated
deficit
|
|
(78,516)
|
|
(178,996)
|
|
Accumulated other
comprehensive loss
|
|
(17,133)
|
|
(1,364)
|
|
Treasury
stock
|
|
(25,997)
|
|
(11,518)
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
142,414
|
|
450,954
|
|
Non-controlling
interest
|
|
110
|
|
156
|
|
Total
equity
|
|
142,524
|
|
451,110
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities,
convertible redeemable preferred stock, and stockholders'
equity
|
|
$
484,274
|
|
$
748,335
|
|
POWERFLEET, INC. AND
SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In
thousands)
|
|
|
|
Six Months Ended
September 30,
|
|
|
2023
|
|
2024
|
|
|
Pro Forma
Combined
|
|
Consolidated
|
|
Cash flows from
operating activities
|
|
|
|
|
|
Net loss
|
|
$
(4,959)
|
|
$
(24,200)
|
|
Adjustments to
reconcile net loss to cash (used in)/provided by operating
activities:
|
|
|
|
|
|
Non-controlling
interest
|
|
6
|
|
18
|
|
Gain on bargain
purchase
|
|
(283)
|
|
—
|
|
Inventory
reserve
|
|
650
|
|
904
|
|
Stock based
compensation expense
|
|
2,518
|
|
7,300
|
|
Depreciation and
amortization
|
|
13,577
|
|
19,399
|
|
Right-of-use assets,
non-cash lease expense
|
|
1,242
|
|
1,515
|
|
Derivative
mark-to-market adjustment
|
|
—
|
|
(2,197)
|
|
Bad debts
expense
|
|
3,235
|
|
4,369
|
|
Deferred income
taxes
|
|
3,268
|
|
(283)
|
|
Shares issued for
transaction bonuses
|
|
—
|
|
889
|
|
Lease termination and
modification losses
|
|
—
|
|
184
|
|
Other non-cash
items
|
|
2,613
|
|
1,522
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Accounts
receivables
|
|
(9,404)
|
|
(12,553)
|
|
Inventories
|
|
(1,558)
|
|
955
|
|
Prepaid expenses and
other current assets
|
|
47
|
|
(3,009)
|
|
Deferred
costs
|
|
(4,105)
|
|
(3,619)
|
|
Deferred
revenue
|
|
222
|
|
(99)
|
|
Accounts payable and
accrued expenses
|
|
5,453
|
|
(71)
|
|
Lease
liabilities
|
|
(1,247)
|
|
(1,856)
|
|
Accrued severance
payable, net
|
|
91
|
|
40
|
|
|
|
|
|
|
Net cash provided
by/(used in) operating activities
|
|
11,366
|
|
(10,792)
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
Acquisition, net of
cash assumed
|
|
—
|
|
27,531
|
|
Proceeds from sale of
fixed assets
|
|
—
|
|
217
|
|
Capitalized software
development costs
|
|
(4,964)
|
|
(4,676)
|
|
Capital
expenditures
|
|
(9,866)
|
|
(10,454)
|
|
Deferred consideration
paid
|
|
(267)
|
|
—
|
|
Repayment of loan
advanced to external parties
|
|
—
|
|
294
|
|
|
|
|
|
|
Net cash (used
in)/provided by investing activities
|
|
(15,097)
|
|
12,912
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
Repayment of long-term
debt
|
|
(2,656)
|
|
(978)
|
|
Short-term bank debt,
net
|
|
7,328
|
|
9,955
|
|
Purchase of treasury
stock upon vesting of restricted stock
|
|
(640)
|
|
(2,836)
|
|
Payment of preferred
stock dividend and redemption of preferred stock
|
|
(2,257)
|
|
(90,298)
|
|
Proceeds from private
placement, net
|
|
—
|
|
61,851
|
|
Proceeds from exercise
of stock options, net
|
|
36
|
|
—
|
|
Cash paid on dividends
to affiliates
|
|
(2,673)
|
|
(6)
|
|
|
|
|
|
|
Net cash used in
financing activities
|
|
(862)
|
|
(22,312)
|
|
|
|
|
|
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
|
(1,331)
|
|
(436)
|
|
Net decrease in cash
and cash equivalents, and restricted cash
|
|
(5,924)
|
|
(20,628)
|
|
Cash and cash
equivalents, and restricted cash at beginning of the
period
|
|
55,746
|
|
109,664
|
|
|
|
|
|
|
Cash and cash
equivalents, and restricted cash at end of the
period
|
|
$
49,822
|
|
$
89,036
|
|
|
|
|
|
|
Reconciliation of
cash, cash equivalents, and restricted cash, beginning of the
period
|
|
|
|
|
|
Cash and cash
equivalents
|
|
54,656
|
|
24,354
|
|
Restricted
cash
|
|
1,090
|
|
85,310
|
|
Cash, cash equivalents,
and restricted cash, beginning of the period
|
|
$
55,746
|
|
$
109,664
|
|
|
|
|
|
|
Reconciliation of
cash, cash equivalents, and restricted cash, end of the
period
|
|
|
|
|
|
Cash and cash
equivalents
|
|
48,757
|
|
25,962
|
|
Restricted
cash
|
|
1,065
|
|
63,074
|
|
Cash, cash equivalents,
and restricted cash, end of the period
|
|
$
49,822
|
|
$
89,036
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
|
|
Cash paid
for:
|
|
|
|
|
|
Taxes
|
|
$
1,270
|
|
$
774
|
|
Interest
|
|
$
875
|
|
$
6,262
|
|
|
|
|
|
|
Noncash investing
and financing activities:
|
|
|
|
|
|
Common stock issued for
transaction bonus
|
|
$
—
|
|
$
9
|
|
Shares issued in
connection with MiX Combination
|
|
$
—
|
|
$
362,005
|
|
POWERFLEET, INC. AND
SUBSIDIARIES
|
|
RECONCILIATION OF
GAAP TO ADJUSTED EBITDA FINANCIAL MEASURES
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Six Months Ended
September 30,
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
|
Pro Forma
Combined
|
|
Consolidated
|
|
Pro Forma
Combined
|
|
Consolidated
|
|
Net loss attributable
to common stockholders
|
$
(6,262)
|
|
$
(1,888)
|
|
$
(10,822)
|
|
$
(24,225)
|
|
Non-controlling
interest
|
—
|
|
5
|
|
6
|
|
18
|
|
Preferred stock
dividend and accretion
|
2,962
|
|
—
|
|
5,863
|
|
25
|
|
Interest expense,
net
|
472
|
|
3,345
|
|
1,162
|
|
6,261
|
|
Income tax
expense
|
2,591
|
|
256
|
|
4,427
|
|
1,309
|
|
Depreciation and
amortization
|
7,243
|
|
9,064
|
|
13,577
|
|
19,399
|
|
Stock-based
compensation
|
1,426
|
|
1,371
|
|
2,518
|
|
7,300
|
|
Foreign currency
losses
|
74
|
|
636
|
|
442
|
|
745
|
|
Restructuring-related
expenses
|
149
|
|
1,069
|
|
597
|
|
2,267
|
|
Gain on bargain
purchase - Movingdots
|
—
|
|
—
|
|
(283)
|
|
—
|
|
Derivative
mark-to-market adjustment
|
—
|
|
(2,197)
|
|
—
|
|
(2,197)
|
|
Net profit on fixed
assets
|
—
|
|
—
|
|
(4)
|
|
—
|
|
Contingent
consideration remeasurement
|
(514)
|
|
—
|
|
(538)
|
|
—
|
|
Acquisition related
expenses
|
2,028
|
|
1,406
|
|
2,251
|
|
15,571
|
|
Integration-related
costs
|
—
|
|
1,410
|
|
—
|
|
1,739
|
|
Non-recurring
transitional service agreement costs
|
121
|
|
—
|
|
121
|
|
—
|
|
Adjusted
EBITDA
|
$
10,290
|
|
$
14,477
|
|
$
19,317
|
|
$
28,212
|
|
POWERFLEET, INC. AND
SUBSIDIARIES
|
|
RECONCILIATION OF
GAAP TO NON-GAAP NET LOSS FINANCIAL MEASURES
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Six Months Ended
September 30,
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
|
Pro Forma
Combined
|
|
Consolidated
|
|
Pro Forma
Combined
|
|
Consolidated
|
|
Net loss
|
$
(3,300)
|
|
$
(1,888)
|
|
$
(4,959)
|
|
$
(24,200)
|
|
Incremental intangible
assets amortization expense as a result
of MiX Telematics business combination
|
—
|
|
1,163
|
|
—
|
|
4,158
|
|
Stock-based
compensation (non-recurring/accelerated cost)
|
—
|
|
—
|
|
—
|
|
4,693
|
|
Foreign currency
losses
|
74
|
|
636
|
|
442
|
|
745
|
|
Income tax effect of
net foreign exchange gains/(losses)
|
109
|
|
(1,109)
|
|
534
|
|
(1,856)
|
|
Restructuring related
expenses
|
149
|
|
1,069
|
|
597
|
|
2,267
|
|
Income tax effect of
restructuring costs
|
(2)
|
|
(21)
|
|
(7)
|
|
(124)
|
|
Acquisition-related
expenses
|
2,028
|
|
1,406
|
|
2,251
|
|
15,571
|
|
Integration-related
expenses
|
—
|
|
1,410
|
|
—
|
|
1,739
|
|
Non-recurring
transitional service agreement costs
|
121
|
|
—
|
|
121
|
|
—
|
|
Contingent
consideration remeasurement
|
(514)
|
|
—
|
|
(538)
|
|
—
|
|
Income tax effect of
contingent consideration remeasurement
|
(5)
|
|
—
|
|
—
|
|
—
|
|
Non-GAAP net
(loss)/profit
|
$
(1,340)
|
|
$
2,666
|
|
$
(1,559)
|
|
$
2,993
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding
|
106,360
|
|
107,532
|
|
106,333
|
|
107,335
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
(loss)/profit per share - basic
|
$
(0.01)
|
|
$
0.02
|
|
$
(0.01)
|
|
$
0.03
|
|
POWERFLEET, INC. AND
SUBSIDIARIES
|
|
ADJUSTED GROSS
PROFIT MARGINS
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Six Months Ended
September 30,
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
|
Pro Forma
Combined
|
|
Consolidated
|
|
Pro Forma
Combined
|
|
Consolidated
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Products
|
$
17,947
|
|
$
20,293
|
|
$
32,470
|
|
$
39,031
|
|
Services
|
54,057
|
|
56,725
|
|
107,977
|
|
113,417
|
|
Total
revenues
|
72,004
|
|
77,018
|
|
140,447
|
|
152,448
|
|
|
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
|
|
Cost of
products
|
11,454
|
|
13,929
|
|
22,385
|
|
26,680
|
|
Cost of
services
|
20,169
|
|
21,746
|
|
38,550
|
|
44,777
|
|
Total cost of
revenues
|
31,623
|
|
35,675
|
|
60,935
|
|
71,457
|
|
|
|
|
|
|
|
|
|
Gross profit
|
$
40,381
|
|
$
41,343
|
|
$
79,512
|
|
$
80,991
|
|
|
|
|
|
|
|
|
|
Product
margin
|
36.2 %
|
|
31.4 %
|
|
31.1 %
|
|
31.6 %
|
|
Service
margin
|
62.7 %
|
|
61.7 %
|
|
64.3 %
|
|
60.5 %
|
|
Total gross profit
margin
|
56.1 %
|
|
53.7 %
|
|
56.6 %
|
|
53.1 %
|
|
|
|
|
|
|
|
|
|
Incremental intangible
assets amortization expense
as a result of MiX Telematics business combination
|
$
—
|
|
$
1,163
|
|
$
—
|
|
$
4,158
|
|
Inventory
rationalization
|
$
—
|
|
$
734
|
|
$
—
|
|
$
734
|
|
|
|
|
|
|
|
|
|
Product
margin
|
36.2 %
|
|
35.0 %
|
|
31.1 %
|
|
33.5 %
|
|
Service
margin
|
62.7 %
|
|
63.7 %
|
|
64.3 %
|
|
64.2 %
|
|
Adjusted total gross
profit margin
|
56.1 %
|
|
56.1 %
|
|
56.6 %
|
|
56.3 %
|
|
POWERFLEET, INC. AND
SUBSIDIARIES
|
|
ADJUSTED OPERATING
EXPENSES
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Six Months Ended
September 30,
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
|
Pro Forma
Combined
|
|
Consolidated
|
|
Pro Forma
Combined
|
|
Consolidated
|
|
Total operating
expenses
|
$
41,003
|
|
$
40,770
|
|
$
79,142
|
|
$
98,653
|
|
Adjusted for once-off
costs
|
|
|
|
|
|
|
|
|
Acquisition-related
expenses
|
2,028
|
|
1,406
|
|
2,251
|
|
15,571
|
|
Integration-related
costs
|
—
|
|
1,410
|
|
—
|
|
1,739
|
|
Stock-based
compensation (non-recurring/accelerated cost)
|
—
|
|
—
|
|
—
|
|
4,693
|
|
Restructuring-related
expenses
|
156
|
|
1,069
|
|
627
|
|
2,267
|
|
2,184
|
|
3,885
|
|
2,878
|
|
24,270
|
|
|
|
|
|
|
|
|
|
Adjusted operating
expenses
|
$
38,819
|
|
$
36,885
|
|
$
76,264
|
|
$
74,383
|
|
POWERFLEET, INC. AND
MiX TELEMATICS
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands,
except per share data)
|
|
|
Three Months Ended
September 30, 2023
|
|
Powerfleet
Inc.
|
|
MiX
Telematics
|
|
Adjustments to
align disclosure
|
|
Pro Forma
Combined
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Products
|
$
13,233
|
|
$
5,324
|
|
$
(610)
|
|
$
17,947
|
|
Services
|
21,010
|
|
32,437
|
|
610
|
|
54,057
|
|
Total
revenues
|
34,243
|
|
37,761
|
|
—
|
|
72,004
|
|
|
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
|
|
Cost of
products
|
8,842
|
|
3,269
|
|
(657)
|
|
11,454
|
|
Cost of
services
|
8,294
|
|
11,218
|
|
657
|
|
20,169
|
|
Total cost of
revenues
|
17,136
|
|
14,487
|
|
—
|
|
31,623
|
|
|
|
|
|
|
|
|
|
Gross profit
|
17,107
|
|
23,274
|
|
—
|
|
40,381
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
17,778
|
|
19,163
|
|
—
|
|
36,941
|
|
Research and
development expenses
|
2,426
|
|
1,636
|
|
—
|
|
4,062
|
|
Total operating
expenses
|
20,204
|
|
20,799
|
|
—
|
|
41,003
|
|
|
|
|
|
|
|
|
|
(Loss)/income from
operations
|
(3,097)
|
|
2,475
|
|
—
|
|
(622)
|
|
|
|
|
|
|
|
|
|
Interest
income
|
23
|
|
198
|
|
—
|
|
221
|
|
Interest
expense
|
(154)
|
|
(539)
|
|
—
|
|
(693)
|
|
Bargain purchase -
Movingdots
|
—
|
|
—
|
|
—
|
|
—
|
|
Other (expense)/income,
net
|
(25)
|
|
410
|
|
—
|
|
385
|
|
|
|
|
|
|
|
|
|
Net (loss)/income
before income taxes
|
(3,253)
|
|
2,544
|
|
—
|
|
(709)
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
(295)
|
|
(2,296)
|
|
—
|
|
(2,591)
|
|
|
|
|
|
|
|
|
|
Net (loss)/income
before non-controlling interest
|
(3,548)
|
|
248
|
|
—
|
|
(3,300)
|
|
Non-controlling
interest
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
Net
(loss)/income
|
(3,548)
|
|
248
|
|
—
|
|
(3,300)
|
|
|
|
|
|
|
|
|
|
Accretion of preferred
stock
|
(1,834)
|
|
—
|
|
—
|
|
(1,834)
|
|
Preferred stock
dividend
|
(1,128)
|
|
—
|
|
—
|
|
(1,128)
|
|
|
|
|
|
|
|
|
|
Net (loss)/income
attributable to common stockholders
|
$
(6,510)
|
|
$
248
|
|
$
—
|
|
$
(6,262)
|
|
|
|
|
|
|
|
|
|
Net (loss)/income per
share attributable to common
stockholders - basic and diluted
|
$
(0.18)
|
|
$
0.004
|
|
|
|
$
(0.06)
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding - basic
|
35,653
|
|
70,707
|
|
|
|
106,360
|
|
POWERFLEET, INC. AND
MiX TELEMATICS
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands,
except per share data)
|
|
|
Six Months Ended
September 30, 2023
|
|
Powerfleet
Inc.
|
|
MiX
Telematics
|
|
Adjustments to
align disclosure
|
|
Pro Forma
Combined
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Products
|
$
24,317
|
|
$
9,464
|
|
$
(1,311)
|
|
$
32,470
|
|
Services
|
42,018
|
|
64,648
|
|
1,311
|
|
107,977
|
|
Total
revenues
|
66,335
|
|
74,112
|
|
—
|
|
140,447
|
|
|
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
|
|
Cost of
products
|
17,392
|
|
6,294
|
|
(1,301)
|
|
22,385
|
|
Cost of
services
|
15,818
|
|
21,431
|
|
1,301
|
|
38,550
|
|
Total cost of
revenues
|
33,210
|
|
27,725
|
|
—
|
|
60,935
|
|
|
|
|
|
|
|
|
|
Gross profit
|
33,125
|
|
46,387
|
|
—
|
|
79,512
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
34,976
|
|
36,540
|
|
—
|
|
71,516
|
|
Research and
development expenses
|
4,646
|
|
2,980
|
|
—
|
|
7,626
|
|
Total operating
expenses
|
39,622
|
|
39,520
|
|
79,142
|
|
79,142
|
|
|
|
|
|
|
|
|
|
(Loss)/income from
operations
|
(6,497)
|
|
6,867
|
|
—
|
|
370
|
|
|
|
|
|
|
|
|
|
Interest
income
|
45
|
|
467
|
|
—
|
|
512
|
|
Interest
expense
|
(327)
|
|
(1,040)
|
|
—
|
|
(1,367)
|
|
Bargain purchase -
Movingdots
|
283
|
|
—
|
|
—
|
|
283
|
|
Other expense,
net
|
(25)
|
|
(299)
|
|
—
|
|
(324)
|
|
|
|
|
|
|
|
|
|
Net (loss)/income
before income taxes
|
(6,521)
|
|
5,995
|
|
—
|
|
(526)
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
(289)
|
|
(4,138)
|
|
—
|
|
(4,427)
|
|
|
|
|
|
|
|
|
|
Net (loss)/income
before non-controlling interest
|
(6,810)
|
|
1,857
|
|
—
|
|
(4,953)
|
|
Non-controlling
interest
|
(6)
|
|
—
|
|
—
|
|
(6)
|
|
|
|
|
|
|
|
|
|
Net
(loss)/income
|
(6,816)
|
|
1,857
|
|
—
|
|
(4,959)
|
|
|
|
|
|
|
|
|
|
Accretion of preferred
stock
|
(3,606)
|
|
—
|
|
—
|
|
(3,606)
|
|
Preferred stock
dividend
|
(2,257)
|
|
—
|
|
—
|
|
(2,257)
|
|
|
|
|
|
|
|
|
|
Net (loss)/income
attributable to common stockholders
|
$
(12,679)
|
|
$
1,857
|
|
$
—
|
|
$
(10,822)
|
|
|
|
|
|
|
|
|
|
Net (loss)/income per
share attributable to common
stockholders - basic
|
$
(0.36)
|
|
$
0.03
|
|
|
|
$
(0.10)
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding - basic
|
35,629
|
|
70,704
|
|
|
|
106,333
|
|
POWERFLEET, INC. AND
MiX TELEMATICS
CONDENSED
CONSOLIDATED BALANCE SHEETS
(In thousands,
except per share data)
|
|
|
March 31,
2024
|
|
Powerfleet
Inc.
|
|
MiX
Telematics
|
|
Pro Forma
Combined
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
24,354
|
|
$
26,737
|
|
$
51,091
|
|
Restricted
cash
|
85,310
|
|
794
|
|
86,104
|
|
Accounts receivables,
net
|
30,333
|
|
24,675
|
|
55,008
|
|
Inventory,
net
|
21,658
|
|
4,142
|
|
25,800
|
|
Deferred costs -
current
|
42
|
|
—
|
|
42
|
|
Prepaid expenses and
other current assets
|
8,091
|
|
9,693
|
|
17,784
|
|
Total current
assets
|
169,788
|
|
66,041
|
|
235,829
|
|
Fixed assets,
net
|
12,719
|
|
35,587
|
|
48,306
|
|
Goodwill
|
83,487
|
|
38,226
|
|
121,713
|
|
Intangible assets,
net
|
19,652
|
|
20,792
|
|
40,444
|
|
Right-of-use
asset
|
7,428
|
|
3,794
|
|
11,222
|
|
Severance payable
fund
|
3,796
|
|
—
|
|
3,796
|
|
Deferred tax
asset
|
2,781
|
|
1,093
|
|
3,874
|
|
Other assets
|
9,029
|
|
10,061
|
|
19,090
|
|
Total
assets
|
$
308,680
|
|
$
175,594
|
|
$
484,274
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Short-term bank debt
and current maturities of long-term debt
|
$
1,951
|
|
$
20,158
|
|
$
22,109
|
|
Accounts payable and
accrued expenses
|
34,008
|
|
26,755
|
|
60,763
|
|
Deferred revenue -
current
|
5,842
|
|
6,394
|
|
12,236
|
|
Lease liability -
current
|
1,789
|
|
859
|
|
2,648
|
|
Total current
liabilities
|
43,590
|
|
54,166
|
|
97,756
|
|
Long-term debt - less
current maturities
|
113,810
|
|
—
|
|
113,810
|
|
Deferred revenue - less
current portion
|
4,892
|
|
—
|
|
4,892
|
|
Lease liability - less
current portion
|
5,921
|
|
2,852
|
|
8,773
|
|
Accrued severance
payable
|
4,597
|
|
—
|
|
4,597
|
|
Deferred tax
liability
|
4,465
|
|
14,204
|
|
18,669
|
|
Other long-term
liabilities
|
2,496
|
|
484
|
|
2,980
|
|
Total
liabilities
|
179,771
|
|
71,706
|
|
251,477
|
|
|
|
|
|
|
|
Convertible redeemable
preferred stock: Series A
|
90,273
|
|
—
|
|
90,273
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
Preferred
stock
|
—
|
|
—
|
|
—
|
|
Common stock
|
387
|
|
63,455
|
|
63,842
|
|
Additional paid-in
capital
|
202,607
|
|
(2,389)
|
|
200,218
|
|
Accumulated
deficit
|
(154,796)
|
|
76,280
|
|
(78,516)
|
|
Accumulated other
comprehensive loss
|
(985)
|
|
(16,148)
|
|
(17,133)
|
|
Treasury
stock
|
(8,682)
|
|
(17,315)
|
|
(25,997)
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
38,531
|
|
103,883
|
|
142,414
|
|
Non-controlling
interest
|
105
|
|
5
|
|
110
|
|
Total
equity
|
38,636
|
|
103,888
|
|
142,524
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities,
convertible redeemable preferred
stock, and stockholders' equity
|
$
308,680
|
|
$
175,594
|
|
$
484,274
|
|
POWERFLEET, INC. AND
MiX TELEMATICS
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In
thousands)
|
|
|
Six Months Ended
September 30, 2023
|
|
Powerfleet
Inc.
|
|
MiX
Telematics
|
|
Pro Forma
Combined
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
Net
(loss)/income
|
$
(6,816)
|
|
$
1,857
|
|
$
(4,959)
|
|
Adjustments to
reconcile net (loss)/income to cash
(used in)/provided by operating activities:
|
|
|
|
|
|
|
Non-controlling
interest
|
6
|
|
—
|
|
6
|
|
Gain on bargain
purchase
|
(283)
|
|
—
|
|
(283)
|
|
Inventory
reserve
|
617
|
|
33
|
|
650
|
|
Stock based
compensation expense
|
1,953
|
|
565
|
|
2,518
|
|
Depreciation and
amortization
|
4,807
|
|
8,770
|
|
13,577
|
|
Right-of-use assets,
non-cash lease expense
|
1,242
|
|
—
|
|
1,242
|
|
Bad debts
expense
|
933
|
|
2,302
|
|
3,235
|
|
Deferred income
taxes
|
285
|
|
2,983
|
|
3,268
|
|
Other non-cash
items
|
126
|
|
2,487
|
|
2,613
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Accounts
receivables
|
(3,866)
|
|
(5,538)
|
|
(9,404)
|
|
Inventories
|
(2,023)
|
|
465
|
|
(1,558)
|
|
Prepaid expenses and
other current assets
|
51
|
|
(4)
|
|
47
|
|
Deferred
costs
|
332
|
|
(4,437)
|
|
(4,105)
|
|
Deferred
revenue
|
222
|
|
—
|
|
222
|
|
Accounts payable and
accrued expenses
|
1,498
|
|
3,955
|
|
5,453
|
|
Lease
liabilities
|
(1,247)
|
|
—
|
|
(1,247)
|
|
Accrued severance
payable, net
|
91
|
|
—
|
|
91
|
|
|
|
|
|
|
|
Net cash (used
in)/provided by operating activities
|
(2,072)
|
|
13,438
|
|
11,366
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
Capitalized software
development costs
|
(2,047)
|
|
(2,917)
|
|
(4,964)
|
|
Capital
expenditures
|
(1,441)
|
|
(8,425)
|
|
(9,866)
|
|
Deferred consideration
paid
|
—
|
|
(267)
|
|
(267)
|
|
|
|
|
|
|
|
Net cash used in
investing activities
|
(3,488)
|
|
(11,609)
|
|
(15,097)
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
Repayment of long-term
debt
|
(2,656)
|
|
—
|
|
(2,656)
|
|
Short-term bank debt,
net
|
4,996
|
|
2,332
|
|
7,328
|
|
Purchase of treasury
stock upon vesting of restricted stock
|
(94)
|
|
(546)
|
|
(640)
|
|
Payment of preferred
stock dividend and redemption of preferred stock
|
(2,257)
|
|
—
|
|
(2,257)
|
|
Proceeds from exercise
of stock options, net
|
36
|
|
—
|
|
36
|
|
Cash paid on dividends
to affiliates
|
—
|
|
(2,673)
|
|
(2,673)
|
|
|
|
|
|
|
|
Net cash from/(used in)
financing activities
|
25
|
|
(887)
|
|
(862)
|
|
|
|
|
|
|
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
53
|
|
(1,384)
|
|
(1,331)
|
|
Net decrease in cash
and cash equivalents, and restricted cash
|
(5,482)
|
|
(442)
|
|
(5,924)
|
|
Cash and cash
equivalents, and restricted cash at beginning of the
period
|
25,089
|
|
30,657
|
|
55,746
|
|
|
|
|
|
|
|
Cash and cash
equivalents, and restricted cash at end of the
period
|
$
19,607
|
|
$
30,215
|
|
$
49,822
|
|
|
|
|
|
|
|
Reconciliation of
cash, cash equivalents, and restricted
cash, beginning of the period
|
|
|
|
|
|
|
Cash and cash
equivalents
|
24,780
|
|
29,876
|
|
54,656
|
|
Restricted
cash
|
309
|
|
781
|
|
1,090
|
|
Cash, cash equivalents,
and restricted cash, beginning of the period
|
$
25,089
|
|
$
30,657
|
|
$
55,746
|
|
|
|
|
|
|
|
Reconciliation of
cash, cash equivalents, and restricted
cash, end of the period
|
|
|
|
|
|
|
Cash and cash
equivalents
|
19,297
|
|
29,460
|
|
48,757
|
|
Restricted
cash
|
310
|
|
755
|
|
1,065
|
|
Cash, cash equivalents,
and restricted cash, end of the period
|
$
19,607
|
|
$
30,215
|
|
$
49,822
|
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
|
|
|
Cash paid
for:
|
|
|
|
|
|
|
Taxes
|
$
115
|
|
$
1,155
|
|
$
1,270
|
|
Interest
|
$
538
|
|
$
337
|
|
$
875
|
|
POWERFLEET, INC. AND
MiX TELEMATICS
|
|
RECONCILIATION OF
GAAP TO ADJUSTED EBITDA FINANCIAL MEASURES
|
|
(In
thousands)
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2023
|
|
Powerfleet
Inc.
|
|
MiX
Telematics
|
|
Pro Forma
Combined
|
|
Net (loss)/profit
attributable to common stockholders
|
$
(6,510)
|
|
$
248
|
|
$
(6,262)
|
|
Non-controlling
interest
|
—
|
|
—
|
|
—
|
|
Preferred stock
dividend and accretion
|
2,962
|
|
—
|
|
2,962
|
|
Interest expense,
net
|
131
|
|
341
|
|
472
|
|
Income tax
expense
|
295
|
|
2,296
|
|
2,591
|
|
Depreciation and
amortization
|
2,485
|
|
4,758
|
|
7,243
|
|
Stock-based
compensation
|
1,101
|
|
325
|
|
1,426
|
|
Foreign currency
(gains)/losses
|
(49)
|
|
123
|
|
74
|
|
Restructuring-related
expenses
|
142
|
|
7
|
|
149
|
|
Contingent
consideration remeasurement
|
—
|
|
(514)
|
|
(514)
|
|
Acquisition related
expenses
|
1,232
|
|
796
|
|
2,028
|
|
Non-recurring
transitional service agreement costs
|
—
|
|
121
|
|
121
|
|
Adjusted
EBITDA
|
$
1,789
|
|
$
8,501
|
|
$
10,290
|
|
POWERFLEET, INC. AND
MiX TELEMATICS
|
|
RECONCILIATION OF
GAAP TO ADJUSTED EBITDA FINANCIAL MEASURES
|
|
(In
thousands)
|
|
|
|
|
|
|
|
Six Months Ended
September 30, 2023
|
|
Powerfleet
Inc.
|
|
MiX
Telematics
|
|
Pro Forma
Combined
|
|
Net (loss)/profit
attributable to common stockholders
|
$
(12,679)
|
|
$
1,857
|
|
$
(10,822)
|
|
Non-controlling
interest
|
6
|
|
—
|
|
6
|
|
Preferred stock
dividend and accretion
|
5,863
|
|
—
|
|
5,863
|
|
Interest expense,
net
|
588
|
|
574
|
|
1,162
|
|
Income tax
expense
|
289
|
|
4,138
|
|
4,427
|
|
Depreciation and
amortization
|
4,807
|
|
8,770
|
|
13,577
|
|
Stock-based
compensation
|
1,953
|
|
565
|
|
2,518
|
|
Foreign currency
translation
|
(411)
|
|
853
|
|
442
|
|
Restructuring related
expenses
|
567
|
|
30
|
|
597
|
|
Gain on Bargain
purchase - Movingdots
|
(283)
|
|
—
|
|
(283)
|
|
Net profit on fixed
assets
|
—
|
|
(4)
|
|
(4)
|
|
Contingent
consideration remeasurement
|
—
|
|
(538)
|
|
(538)
|
|
Acquisition related
expenses
|
1,455
|
|
796
|
|
2,251
|
|
Non-recurring
transitional service agreement costs
|
—
|
|
121
|
|
121
|
|
Adjusted
EBITDA
|
$
2,155
|
|
$
17,162
|
|
$
19,317
|
|
POWERFLEET, INC. AND
MiX TELEMATICS
|
|
RECONCILIATION OF
GAAP TO NON-GAAP NET (LOSS)/INCOME FINANCIAL
MEASURES
|
|
(In
thousands)
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2023
|
|
Powerfleet
Inc.
|
|
MiX
Telematics
|
|
Pro Forma
Combined
|
|
Net
(loss)/income
|
$
(3,548)
|
|
$
248
|
|
$
(3,300)
|
|
Foreign currency
(gains)/losses
|
(49)
|
|
123
|
|
74
|
|
Income tax effect of
net foreign exchange gains/(losses)
|
—
|
|
109
|
|
109
|
|
Restructuring related
expenses
|
142
|
|
7
|
|
149
|
|
Income tax effect of
restructuring costs
|
—
|
|
(2)
|
|
(2)
|
|
Acquisition related
expenses
|
1,232
|
|
796
|
|
2,028
|
|
Non-recurring
transitional service agreement costs
|
—
|
|
121
|
|
121
|
|
Contingent
consideration remeasurement
|
—
|
|
(514)
|
|
(514)
|
|
Income tax effect of
contingent consideration remeasurement
|
—
|
|
(5)
|
|
(5)
|
|
Non-GAAP net
(loss)/income
|
$
(2,223)
|
|
$
883
|
|
$
(1,340)
|
|
|
|
|
|
|
|
Weighted average shares
outstanding
|
35,653
|
|
70,707
|
|
106,360
|
|
|
|
|
|
|
|
Non-GAAP net
(loss)/income per share - basic
|
$
(0.06)
|
|
$
0.01
|
|
$
(0.01)
|
|
POWERFLEET, INC. AND
MiX TELEMATICS
|
|
RECONCILIATION OF
GAAP TO NON-GAAP NET (LOSS)/INCOME FINANCIAL
MEASURES
|
|
(In
thousands)
|
|
|
|
|
|
|
|
Six Months Ended
September 30, 2023
|
|
Powerfleet
Inc.
|
|
MiX
Telematics
|
|
Pro Forma
Combined
|
|
Net
(loss)/income
|
$
(6,816)
|
|
$
1,857
|
|
$
(4,959)
|
|
Foreign currency
(gains)/losses
|
(411)
|
|
853
|
|
442
|
|
Income tax effect of
net foreign exchange gains
|
—
|
|
534
|
|
534
|
|
Restructuring related
expenses
|
567
|
|
30
|
|
597
|
|
Income tax effect of
restructuring costs
|
—
|
|
(7)
|
|
(7)
|
|
Acquisition related
expenses
|
1,455
|
|
796
|
|
2,251
|
|
Non-recurring
transitional service agreement costs
|
—
|
|
121
|
|
121
|
|
Contingent
consideration remeasurement
|
—
|
|
(538)
|
|
(538)
|
|
Non-GAAP net
(loss)/income
|
$
(5,205)
|
|
$
3,646
|
|
$
(1,559)
|
|
|
|
|
|
|
|
Weighted average shares
outstanding
|
35,629
|
|
70,704
|
|
106,333
|
|
|
|
|
|
|
|
Non-GAAP net
(loss)/income per share - basic
|
$
(0.15)
|
|
$
0.05
|
|
$
(0.01)
|
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multimedia:https://www.prnewswire.com/news-releases/powerfleet-reports-second-quarter-2025-financial-results-302301670.html
SOURCE Powerfleet
