An explanation of non-IFRS measures used in this press release
is set out in the Non-IFRS financial measures section of
this press release. A reconciliation of these non-IFRS measures to
the most directly comparable IFRS measures is provided in the
financial tables that accompany this release.
References in this announcement to “R” are to South
African Rand and references to “U.S. Dollars” and “$”
are to United States Dollars. Unless otherwise stated MiX
Telematics has translated U.S. Dollar amounts from South African
Rand at the exchange rate of R13.5618 per $1.00, which was the R/$
exchange rate reported by Oanda.com as at September 30,
2017.
Highlights:
Second quarter fiscal 2018:
- Subscription revenue of R349 million
($25.8 million), up over 18% year over year on a constant currency
basis
- Net subscriber additions of 14,500
bringing the total base to over 640,000, up 9% year over
year
- Operating profit of R45 million
($3.3 million), up 73% year over year
- Adjusted EBITDA of R103 million
($7.6 million), up 56% year over year
- Adjusted EBITDA margin of 25.1%
continues the quarterly improvement trend since the start of fiscal
2017. Reported Adjusted EBITDA margins were as follows: Q1 2017
15.9%, Q2 2017 18.0%, Q3 2017 21.9%, Q4 2017 22.3%, Q1 2018 23.1%,
Q2 2018 25.1%
- Company raises full-year guidance
for both revenue and profit
First half fiscal 2018:
- Subscription revenue of R685 million
($50.5 million), up over 17% year over year on a constant currency
basis
- Operating profit of R88 million
($6.5 million), up 80% year over year
- Adjusted EBITDA of R197 million
($14.5 million), up 56% year over year
- Adjusted EBITDA margin of 24.1% up
from 17.0% during the same period last year
MiX Telematics Limited (NYSE:MIXT, JSE:MIX), a leading global
provider of fleet and mobile asset management solutions delivered
as Software-as-a-Service (SaaS), today announced financial results
for its second quarter and first half of fiscal 2018, which ended
on September 30, 2017.
“MiX reported a very strong second quarter, highlighted by our
ability to exceed expectations across all key operating metrics,”
said Stefan Joselowitz, Chief Executive Officer of MiX Telematics.
“Our 18% year over year subscription revenue growth on a constant
currency basis was broad-based, driven by uptake from our premium
fleet customers globally. Additionally, this is the fifth
consecutive quarter of adjusted EBITDA margin improvement. We are
confident in our ability to maintain the momentum as we continue to
execute our strategic initiatives and remain committed to achieving
our longer-term adjusted EBITDA margin target of 30% plus.”
Financial performance for the three months ended
September 30, 2017
Subscription revenue: Subscription revenue was R349.3
million ($25.8 million), an increase of 15.9% compared to
R301.3 million ($22.2 million) for the second quarter of
fiscal 2017. Subscription revenue increased more than 18% on a
constant currency basis. Subscription revenue benefited from an
increase of over 55,000 subscribers, representing an increase in
the subscriber base of 9.4% from September 2016 to September 2017.
Subscription revenue has also benefited from an expansion in the
average revenue per user.
Total revenue: Total revenue was R411.2 million ($30.3
million), an increase of 11.7% compared to R368.2 million
($27.1 million) for the second quarter of fiscal 2017.
Hardware and other revenue was R61.9 million ($4.6 million), a
decrease of 7.3% compared to R66.8 million ($4.9 million) for the
second quarter of fiscal 2017.
Gross Margin: Gross profit was R269.4 million ($19.9
million), compared to R253.1 million ($18.7 million) for the second
quarter of fiscal 2017. Gross profit margin was 65.5%, compared to
68.8% for the second quarter of fiscal 2017.
Operating Margin: Operating profit was R45.3 million
($3.3 million), compared to R26.2 million ($1.9 million) for the
second quarter of fiscal 2017. Operating margin was 11.0%, compared
to 7.1% for the second quarter of fiscal 2017. The margin expansion
was attributable primarily to the revenue growth leveraging our
fixed overhead, and to ongoing cost management initiatives.
Operating expenses of R224.1 million ($16.5 million) have declined
by R2.8 million ($0.2 million), or 1.3%, since the second quarter
of fiscal 2017.
Adjusted EBITDA: Adjusted EBITDA, a non-IFRS measure, was
R103.3 million ($7.6 million), compared to R66.2 million
($4.9 million) for the second quarter of fiscal 2017. Adjusted
EBITDA margin, a non-IFRS measure, for the second quarter of fiscal
2018 was 25.1%, compared to 18.0% for the second quarter of fiscal
2017.
Profit for the period and earnings per share: Profit for
the period was R24.2 million ($1.8 million), compared to
R23.2 million ($1.7 million) in the second quarter of fiscal
2017. Profit for the period includes a net foreign exchange gain of
R3.2 million ($0.2 million) before tax. During the second
quarter of fiscal 2017, profit for the period included a net
foreign exchange loss of R8.4 million ($0.6 million),
primarily relating to U.S. Dollar cash reserves, which are
sensitive to R:$ exchange rate movements.
Earnings per diluted ordinary share were 4 South African cents,
consistent with the second quarter of fiscal 2017. For the second
quarter of fiscal 2018, the calculation was based on diluted
weighted average ordinary shares in issue of 566.0 million compared
to 633.4 million diluted weighted average ordinary shares in
issue during the second quarter of fiscal 2017. The diluted
weighted average ordinary shares in issue during the second quarter
of fiscal 2018 were lower than in the second quarter of fiscal
2017, due to the weighted average impact of the share repurchases
fully described in note 7 to the unaudited Group interim financial
results for the six months ended September 30, 2017.
The Company's effective tax rate for the quarter was 50.2%
compared to (15.4%) for the second quarter of fiscal year 2017.
Ignoring the impact of net foreign exchange gains and losses, and
related tax consequences, the tax rate which is used in determining
adjusted earnings below, was 32.0% compared to 30.0% in the second
quarter of fiscal 2017.
On a U.S. Dollar basis, and using the September 30, 2017
exchange rate of R13.5618 per U.S. Dollar, and at a ratio of
25 ordinary shares to one American Depositary Share ("ADS"),
profit for the period was $1.8 million, or 8 U.S. cents per diluted
ADS.
Adjusted earnings for the period and adjusted earnings per
share: Adjusted earnings for the period, a non-IFRS measure,
was R30.9 million ($2.3 million) compared to R20.0 million ($1.5
million) for the second quarter of fiscal 2017 and excludes the net
foreign exchange gain of R3.2 million ($0.2 million) referred to
above. Adjusted earnings for the second quarter of fiscal 2017
excluded the net foreign exchange loss of R8.4 million
($0.6 million) referred to above. Adjusted earnings per
diluted ordinary share, also a non-IFRS measure, were 5 South
African cents, compared to 3 South African cents in the second
quarter of fiscal 2017.
On a U.S. Dollar basis, using the September 30, 2017
exchange rate of R13.5618 per U.S. Dollar, and at a ratio of 25
ordinary shares to one ADS, adjusted earnings for the period were
$2.3 million, or 10 U.S. cents per diluted ADS.
Statement of Financial Position and Cash Flow: At
September 30, 2017, the Company had R256.9 million ($18.9
million) of net cash and cash equivalents, compared to R311.3
million ($23.0 million) at March 31, 2017. The Company generated
R104.0 million ($7.7 million) in net cash from operating activities
for the three months ended September 30, 2017 and invested
R100.2 million ($7.4 million) in capital expenditures during the
quarter (including investments in in-vehicle devices of
R71.8 million or $5.3 million), leading to free cash flow, a
non-IFRS measure, of R3.8 million ($0.3 million) for the
second quarter of fiscal 2018, compared with negative free cash
flow of R15.8 million ($1.2 million) for the second quarter of
fiscal 2017. The Company utilized R12.6 million ($0.9 million) in
financing activities, compared to R488.8 million
($36.0 million) utilized during the second quarter of fiscal
2017. The cash utilized in financing activities during the second
quarter of fiscal 2018 mainly consists of dividends paid. The cash
utilized in financing activities during the second quarter of
fiscal 2017 included share repurchases of R473.6 million ($34.9
million) and dividends paid of R15.3 million
($1.1 million).
Financial performance for the first half of fiscal
2018
Subscription revenue: Subscription revenue increased to
R684.6 million ($50.5 million), an increase of 12.7% compared
to R607.5 million ($44.8 million) for the first half of fiscal
2017. On a constant currency basis, subscription revenue increased
by more than 17.0%. Subscription revenue benefited from an increase
of over 55,000 subscribers, representing an increase in subscribers
of 9.4% from September 2016 to September 2017. Subscription revenue
has also benefited from an expansion in the average revenue per
user.
Total revenue: Total revenue for the first half of fiscal
2018 was R816.8 million ($60.2 million), an increase of 9.3%
compared to R747.3 million ($55.1 million) for the first half of
fiscal 2017. Hardware and other revenue was R132.2 million
($9.7 million), compared to R139.7 million ($10.3 million) for
the first half of fiscal 2017.
Gross margin: Gross profit for the first half of fiscal
2018 was R541.0 million ($39.9 million), an increase of 6.3%
compared to R508.9 million ($37.5 million) for the first half of
fiscal 2017. Gross profit margin was 66.2%, compared to 68.1% for
the first half of fiscal 2017.
Operating margin: Operating profit for the first half of
fiscal 2018 was R88.2 million ($6.5 million), compared to
R49.1 million ($3.6 million) posted in the first half of
fiscal 2017. The operating margin for the first half of fiscal 2018
was 10.8%, compared to the 6.6% posted in the first half of fiscal
2017. The margin expansion was attributable primarily to the
revenue growth leveraging our fixed overhead, and to ongoing cost
management initiatives.
Adjusted EBITDA: Adjusted EBITDA was R197.2 million
($14.5 million) compared to R126.7 million ($9.3 million) for the
first half of fiscal 2017. The Adjusted EBITDA margin for the first
half of fiscal 2018 was 24.1%, compared to 17.0% in the first half
of fiscal 2017.
Profit for the period and earnings per share: Profit for
the first half of fiscal 2018 was R58.1 million ($4.3 million),
compared to R55.1 million ($4.1 million) in the first half of
fiscal 2017. Profit for the period includes a net foreign exchange
loss of R1.8 million ($0.1 million) before tax. During the first
half of fiscal 2017, a net foreign exchange gain of R11.5 million
($0.8 million) was recorded, primarily relating to U.S. Dollar cash
reserves which are sensitive to R:$ exchange rate movements.
Earnings per diluted ordinary share were 10 South African cents,
compared to 8 South African cents in the first half of fiscal 2017.
For the first half of fiscal 2018, the calculation was based on
diluted weighted average ordinary shares in issue of 566.7 million
compared to 697.9 million diluted weighted average ordinary shares
in issue during the first half of fiscal 2017. The diluted weighted
average ordinary shares in issue during the first half of fiscal
2018 were lower than in the first half of fiscal 2017 due to the
weighted average impact of the share repurchases fully described in
note 7 to the unaudited Group interim financial results for the six
months ended September 30, 2017.
The Company's effective tax rate for the first half of fiscal
2018 was 34.0% compared to 19.1% for the first half of fiscal
2017.
Adjusted earnings for the period and adjusted earnings per
share: Adjusted earnings for the first half of fiscal 2018, a
non-IFRS measure, was R61.6 million ($4.5 million), compared to
R37.3 million ($2.7 million) in the first half of fiscal 2017 and
excludes the net foreign exchange loss of R1.8 million ($0.1
million) referred to above. Adjusted earnings for the first half of
fiscal 2017, excludes the net foreign exchange gain of R11.5
million ($0.8 million). Adjusted earnings per diluted ordinary
share was 11 South African cents, compared to 5 South African cents
for the first half of fiscal 2017.
Ignoring the impact of net foreign exchange gains and losses,
and related tax consequences, the effective tax rate, which is used
in calculating adjusted earnings, was 31.4% compared to 34.2% in
the first half of fiscal 2017.
On a U.S. Dollar basis, and using the September 30, 2017
exchange rate of R13.5618 per U.S. Dollar, and at a ratio of 25
ordinary shares to one ADS, adjusted earnings for the first half of
fiscal 2018 were $4.5 million, or 20 U.S. cents per diluted ADS,
compared to $2.7 million, or 10 U.S. cents per diluted ADS in the
first half of fiscal 2017.
Cash Flow: The Company generated R122.3 million ($9.0
million) in net cash from operating activities for the first half
of fiscal 2018 and invested R182.5 million ($13.5 million) in
capital expenditures during the period (including investments in
in-vehicle devices of R124.5 million or $9.2 million), leading to
negative free cash flow of R60.2 million ($4.4 million), compared
with negative free cash flow of R50.0 million ($3.7 million) for
the first half of fiscal 2017. Capital expenditure was R35.3
million ($2.6 million) higher than in the first half of fiscal 2017
primarily as a result of increased investments in in-vehicle
devices due to the continued increase in the number of bundled
subscription contracts.
Segment commentary for the first half of fiscal 2018
The segment results below are presented on an integral margin
basis. In respect of revenue, this method of measurement entails
reviewing the segmental results based on external revenue only. In
respect of Adjusted EBITDA (the profit measure identified by the
Company), the margin generated by our Central Services Organization
("CSO"), net of any unrealized intercompany profit, is allocated to
the geographic region where the external revenue is recorded by our
Regional Sales Offices ("RSOs").
CSO continues as a central service organization that wholesales
our products and services to our RSOs who, in turn, interface with
our end-customers and distributors. CSO is also responsible for the
development of our hardware and software platforms and provides
common marketing, product management, technical and distribution
support to each of our other operating segments. CSO's operating
expenses are not allocated to each RSO.
Each RSO's results reflect the external revenue earned, as well
as the Adjusted EBITDA earned (or loss incurred) by each operating
segment before the CSO and corporate cost allocations.
For further information in this regard, please refer to note 3
of the unaudited Group interim financial results for the six months
ended September 30, 2017.
Segment
SubscriptionRevenueHalf-year2018R'000
Total
RevenueHalf-year2018R'000
Adjusted
EBITDAHalf-year2018R'000
% change on prior year
Adjusted
EBITDAMarginHalf-year2018
Africa 423,157 469,549 209,392
33.0% 44.6%
The subscriber base grew 8.7% year over
year. This growth and an increase in the number of bundled
subscriptions resulted in subscription revenue growth of 13.0% in
the segment. Total revenue increased by 11.8%. Enhanced scale and
stringent cost control drove an expansion in the Adjusted EBITDA
margin to 44.6% (up from the 37.5% Adjusted EBITDA margin reported
in the first half of fiscal 2017).
Europe 55,923 89,405 29,443
39.0% 32.9% The region's subscriber base grew
by 5.2% year over year and in constant currency, subscription
revenue growth was 7.0%. Total revenue increased on a constant
currency basis by 28.7% due to higher hardware revenues compared to
the first half of fiscal 2017. The region reported an Adjusted
EBITDA margin of 32.9% (up from the 27.0% Adjusted EBITDA margin
reported in the first half of fiscal 2017).
Americas
83,012 95,880 24,958 82.0% 26.0%
The Americas segment subscriber base grew by 22.5% year over
year. In addition, subscription revenue was assisted by the
market’s preference for bundled deals across new and existing
customers. Subscription revenue growth on a constant currency basis
was 60.7%. Total revenue improved by 34.9% on a constant currency
basis as hardware sales were lower. The region reported an Adjusted
EBITDA margin of 26.0% (up from the 17.5% Adjusted EBITDA margin
reported in the first half of fiscal 2017).
Middle East and Australasia
98,900 135,996 49,570 22.7%
36.4%
Subscribers increased by 5.3% year over
year while subscription revenue increased by 5.4% on a constant
currency basis. Total revenue in constant currency declined by 3.2%
as hardware and other revenues were lower than in the first half of
fiscal 2017. The region reported an Adjusted EBITDA margin of 36.4%
(up from the 26.4% Adjusted EBITDA margin reported in the first
half of fiscal 2017). The improvement in Adjusted EBITDA margin was
as a result of the restructuring plans implemented during the
fourth quarter of fiscal 2017.
Brazil 23,120 25,447 8,752
101.1% 34.4% Subscribers increased by 44.6%
year over year and subscription revenue, also aided by the market’s
preference for bundled deals, increased by 67.6% on a constant
currency basis. On a constant currency basis, total revenue
increased by 54.5%. The segment reported Adjusted EBITDA of R8.8
million in the first half of fiscal 2018, at an Adjusted EBITDA
margin of 34.4% (up from the 25.4% Adjusted EBITDA margin reported
in the first half of fiscal 2017).
Central Services Organization
("CSO") 515 553 (68,849) (7.0%)
—
CSO is responsible for the development of
our hardware and software platforms and provides common marketing,
product management, technical and distribution support to each of
our other operating segments. The negative Adjusted EBITDA reported
arises as a result of operating expenses carried by the
segment.
Business Outlook
MiX Telematics has translated U.S. Dollar amounts in this
Business Outlook paragraph from South African Rand at the exchange
rate of R14.0838 per $1.00, which was the R/$ exchange rate
reported by Oanda.com as at October 30, 2017.
Based on information as of today, November 2, 2017, the
Company is issuing the following financial guidance for the full
2018 fiscal year:
- Subscription revenue - R1,420 million
to R1,432 million ($100.8 million to $101.7 million), which would
represent subscription revenue growth of 14.5% to 15.5% compared to
fiscal 2017.
- Total revenue - R1,661 million to
R1,687 million ($117.9 million to $119.8 million), which would
represent revenue growth of 7.8% to 9.5% compared to fiscal
2017.
- Adjusted EBITDA - R403 million to R421
million ($28.6 million to $29.9 million), which would represent
Adjusted EBITDA growth of 33.6% to 39.7% compared to fiscal
2017.
- Adjusted earnings per diluted ordinary
share of 22.0 to 23.5 South African cents based on 568 million
diluted ordinary shares in issue, and based on an effective tax
rate of 28.0% to 31.0%. At a ratio of 25 ordinary shares to one
ADS, this equates to adjusted earnings per diluted ADS of 39.1 to
41.7 U.S. cents.
For the third quarter of fiscal 2018, the Company expects
subscription revenue to be in the range of R362 million to
R367 million ($25.7 million to $26.1 million) which would
represent subscription revenue growth of 16.5% to 18.1% compared to
the third quarter of fiscal 2017.
The key assumptions used in deriving the forecast are as
follows:
- Growth in subscription revenue and
vehicles under subscription are based on expected growth rates
related to market conditions and takes into account growth rates
achieved previously.
- Achieving hardware sales according to
expectations. Hardware sales are dependent on the volumes of
bundled solutions selected by customers.
- An average forecast exchange rate for
the 2018 fiscal year of R13.5000 per $1.00.
The forecast is the responsibility of the board of directors and
has not been reviewed or reported on by the Company’s external
auditors. The Company’s policy is to give guidance on a quarterly
basis, if necessary, and does not update guidance between
quarters.
The Company provides earnings guidance only on a non-IFRS basis
and does not provide a reconciliation of forward-looking Adjusted
EBITDA and Adjusted Earnings per Diluted Ordinary Share guidance to
the most directly comparable IFRS financial measures because of the
inherent difficulty in forecasting and quantifying certain amounts
that are necessary for such reconciliations, including adjustments
that could be made for foreign exchange gains/(losses) and related
tax consequences, restructuring costs, share-based compensation
costs, and other charges reflected in the Company’s reconciliation
of historic non-IFRS financial measures, the amounts of which,
based on past experience, could be material.
The information disclosed in this “Business Outlook”
paragraph complies with the disclosure requirements in terms of
paragraph 8.38 of the JSE Listings Requirements which deals with
profit forecasts.
Quarterly Reporting Policy in respect of JSE Listings
Requirements
Following the listing of the Company’s ADSs on the New York
Stock Exchange, the Company has adopted a quarterly reporting
policy. As a result of such quarterly reporting the Company is, in
terms of paragraph 3.4(b)(ix) of the JSE Listings Requirements, not
required to publish trading statements in terms of paragraph
3.4(b)(i) to (viii) of the JSE Listings Requirements.
Conference Call Information
MiX Telematics management will also host a conference call and
audio webcast at 8:00 a.m. (Eastern Daylight Time) and 2:00 p.m.
(South African Time) on November 2, 2017 to discuss the
Company's financial results and current business outlook:
- The live webcast of the call will be
available at the “Investor Information” page of the Company’s
website, http://investor.mixtelematics.com.
- To access the call, dial
+1-888-695-0609 (within the United States) or 0 800 982 089 (within
South Africa) or +1-719-457-2641 (outside of the United States).
The conference ID is 9357437.
- A replay of this conference call will
be available for a limited time at +1-844-512-2921 (within the
United States) or +1-412-317-6671 (within South Africa or outside
of the United States). The replay conference ID is 9357437.
- A replay of the webcast will also be
available for a limited time at http://investor.mixtelematics.com.
About MiX Telematics Limited
MiX Telematics is a leading global provider of fleet and mobile
asset management solutions delivered as SaaS to customers managing
over 640,000 assets in approximately 120 countries. The Company’s
products and services provide enterprise fleets, small fleets and
consumers with solutions for safety, efficiency, risk and security.
MiX Telematics was founded in 1996 and has offices in South Africa,
the United Kingdom, the United States, Uganda, Brazil, Australia,
Romania, Thailand and the United Arab Emirates as well as a network
of more than 130 fleet partners worldwide. MiX Telematics shares
are publicly traded on the Johannesburg Stock Exchange (JSE: MIX)
and MiX Telematics ADSs are listed on the New York Stock Exchange
(NYSE: MIXT). For more information visit www.mixtelematics.com.
Forward-Looking Statements
This press release includes certain “forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995, including without limitation, statements concerning our
financial guidance for the third quarter and full year of fiscal
2018, our position to execute on our growth strategy, and our
ability to expand our leadership position. These forward-looking
statements reflect our current views about our plans, intentions,
expectations, strategies and prospects, which are based on the
information currently available to us and on assumptions we have
made. Actual results may differ materially from those described in
the forward-looking statements and will be affected by a variety of
risks and factors that are beyond our control including, without
limitation, those described under the caption “Risk Factors” in the
Company’s Annual Report on Form 20-F filed with the Securities and
Exchange Commission (the "SEC") for the fiscal year ended
March 31, 2017, as updated by other reports that the
Company files with or furnishes to the SEC. The Company assumes no
obligation to update any forward-looking statements contained in
this press release as a result of new information, future events or
otherwise.
Non-IFRS financial measures
Adjusted EBITDA
To provide investors with additional information regarding its
financial results, the Company has disclosed within this press
release, Adjusted EBITDA and Adjusted EBITDA margin. Adjusted
EBITDA is a non-IFRS financial measure; it does not represent cash
flows from operations for the periods indicated and should not be
considered an alternative to net income as an indicator of the
Company's results of operations or as an alternative to cash flows
from operations as an indicator of liquidity. Adjusted EBITDA is
defined as the profit for the period before income taxes, net
finance income/(costs) including foreign exchange gains/(losses),
depreciation of property, plant and equipment including capitalized
customer in-vehicle devices, amortization of intangible assets
including capitalized in-house development costs and intangible
assets identified as part of a business combination, share-based
compensation costs, restructuring costs, profits/(losses) on the
disposal or impairments of assets or subsidiaries, insurance
reimbursements relating to impaired assets and certain litigation
costs.
The Company has included Adjusted EBITDA and Adjusted EBITDA
margin in this press release because they are key measures that the
Company's management and Board of Directors use to understand and
evaluate its core operating performance and trends; to prepare and
approve its annual budget; and to develop short- and long-term
operational plans. In particular, the exclusion of certain expenses
in calculating Adjusted EBITDA and Adjusted EBITDA margin can
provide a useful measure for period-to-period comparisons of the
Company's core business. Accordingly, the Company believes that
Adjusted EBITDA and Adjusted EBITDA margin provides useful
information to investors and others in understanding and evaluating
its operating results.
The Company's use of Adjusted EBITDA has limitations as an
analytical tool, and you should not consider this performance
measure in isolation from or as a substitute for analysis of our
results as reported under IFRS. Some of these limitations are:
- although depreciation and amortization
are non-cash charges, the assets being depreciated and amortized
may have to be replaced in the future, and Adjusted EBITDA does not
reflect cash capital expenditure requirements for such replacements
or for new capital expenditure requirements;
- Adjusted EBITDA does not reflect
changes in, or cash requirements for, our working capital
needs;
- Adjusted EBITDA does not consider the
potentially dilutive impact of equity-based compensation;
- Adjusted EBITDA does not reflect tax
payments that may represent a reduction in cash available to the
Company; and
- other companies, including companies in
our industry, may calculate Adjusted EBITDA differently, which
reduces its usefulness as a comparative measure.
Because of these limitations, you should consider Adjusted
EBITDA alongside other financial performance measures, including
operating profit, profit for the period and our other results.
Headline Earnings
Headline earnings is a profit measure required for JSE-listed
companies and is calculated in accordance with circular 2/2015
issued by the South African Institute of Chartered Accountants. The
profit measure is determined by taking the profit for the period
prior to certain separately identifiable re-measurements of the
carrying amount of an asset or liability that arose after the
initial recognition of such asset or liability net of related tax
(both current and deferred) and related non-controlling
interest.
Adjusted Earnings and Adjusted Earnings Per Share
Adjusted earnings per share is defined as profit attributable to
owners of the parent, MiX Telematics Limited, excluding net foreign
exchange gains/(losses) net of tax, divided by the weighted average
number of ordinary shares in issue during the period.
We have included Adjusted earnings per share in this press
release because it provides a useful measure for period-to-period
comparisons of the Company's core business by excluding net foreign
exchange gains/(losses) from earnings. Accordingly, we believe that
Adjusted earnings per share provides useful information to
investors and others in understanding and evaluating the Company's
operating results.
Free cash flow
Free cash flow is determined as net cash generated from
operating activities less capital expenditure for investing
activities. We believe that free cash flow provides useful
information to investors and others in understanding and evaluating
the Company’s cash flows as it provides detail of the amount
of cash the Company generates or utilizes after accounting for all
capital expenditures including investments in in-vehicle devices
and development expenditure.
Constant currency and U.S. Dollar financial
information
Financial information presented in United States Dollars ("U.S.
Dollars" and "$") and constant currency financial information
presented as part of the segment commentary constitute pro forma
financial information under the JSE Listings Requirements. Unless
otherwise stated, MiX Telematics has translated U.S. Dollar amounts
from South African Rand ("R") at the exchange rate of R13.5618 per
$1.00, which was the R/$ exchange rate reported by Oanda.com as at
September 30, 2017.
Constant currency information has been presented to illustrate
the impact of changes in currency rates on the Group’s results. The
constant currency information has been determined by adjusting the
current financial reporting period results to the prior period
average exchange rates, determined as the average of the monthly
exchange rates applicable to the period. The measurement has been
performed for each of the Group’s currencies, including the U.S.
Dollar and British Pound. The constant currency growth percentage
has been calculated by utilizing the constant currency results
compared to the prior period results.
This pro forma financial information is the responsibility of
the Group’s board of directors and is presented for illustrative
purposes. Because of its nature, the pro forma financial
information may not fairly present MiX Telematics’ financial
position, changes in equity, results of operations or cash flows.
The pro forma financial information does not constitute pro forma
information in accordance with the requirements of Regulation S-X
of the SEC or generally accepted accounting principles in the
United States. In addition, the rules and regulations related to
the preparation of pro forma financial information in other
jurisdictions may also vary significantly from the requirements
applicable in South Africa. The information contained in this
report has not been reviewed or audited by the Group's
auditors.
JSE Sponsor:
Java Capital Trustees and Sponsors Proprietary Limited
Unaudited interim financial resultsfor
the six months ended September 30, 2017
CONDENSED CONSOLIDATED INCOME STATEMENTS South
African Rand
Six monthsended
Six monthsended
Three months ended
Three monthsended
Figures are in thousands unless otherwise stated
September
30, September 30,
September 30, September 30,
2017 2016
2017 2016
Unaudited
Unaudited
Unaudited Unaudited
Revenue 816,830 747,256
411,167 368,160 Cost
of sales
(275,864 ) (238,369 )
(141,732 ) (115,050 )
Gross profit
540,966 508,887
269,435 253,110 Other
income/(expenses) - net
2,879 530
(64 ) 71
Operating expenses
(455,676 ) (460,321
)
(224,116 ) (226,955 ) -Sales and
marketing
(98,238 ) (97,652 )
(49,259 )
(49,122 ) -Administration and other charges
(357,438
) (362,669 )
(174,857 )
(177,833 )
Operating profit 88,169 49,096
45,255 26,226 Finance (costs)/income - net
(84
) 18,995
3,402
(6,120 ) -Finance income
3,900 23,082
5,108 6,102
-Finance costs
(3,984 ) (4,087 )
(1,706 ) (12,222 )
Profit before
taxation 88,085 68,091
48,657 20,106 Taxation
(29,941 ) (12,973 )
(24,417 ) 3,092
Profit for the
period 58,144 55,118
24,240 23,198
Attributable
to: Owners of the parent
58,084 55,130
24,248
23,205 Non-controlling interests
60 (12
)
(8 ) (7 )
58,144
55,118
24,240
23,198 Earnings per share -basic (R)
0.10 0.08
0.04 0.04 -diluted (R)
0.10 0.08
0.04 0.04
Earnings per American Depositary Share -basic (R)
2.59 1.98
1.08 0.92 -diluted (R)
2.56 1.97
1.07 0.92 Ordinary shares ('000)1 -in issue at
September 30
559,381 562,259
559,381 562,259
-weighted average
560,677 695,746
558,824 632,113
-diluted weighted average
566,715 697,920
566,008
633,413 Weighted average American Depositary Shares ('000)1
-in issue at September 30
22,375 22,490
22,375 22,490
-weighted average
22,427 27,830
22,353 25,285
-diluted weighted average
22,669 27,917
22,640 25,337
1
September 30, 2017 figure excludes
40,000,000 (September 30, 2016: 40,000,000) treasury shares held by
MiX Telematics Investments Proprietary Limited ("MiX Investments"),
a wholly owned subsidiary of the Group.
CONDENSED CONSOLIDATED INCOME STATEMENTS
United States Dollar Six months ended
Six monthsended
Three months ended
Three monthsended
Figures are in thousands unless otherwise stated
September
30, September 30,
September 30, September 30,
2017 2016
2017 2016
Unaudited
Unaudited
Unaudited Unaudited
Revenue 60,230 55,100
30,318 27,147 Cost of
sales
(20,341 ) (17,577 )
(10,451 ) (8,483 )
Gross profit
39,889 37,523
19,867 18,664 Other income/(expenses) -
net
212 39
(5 ) 5 Operating expenses
(33,600 ) (33,943 )
(16,525
) (16,735 ) -Sales and marketing
(7,244
) (7,201 )
(3,632 ) (3,622 ) -Administration
and other charges
(26,356 ) (26,742 )
(12,893 ) (13,113 )
Operating
profit 6,501 3,619
3,337 1,934 Finance
(costs)/income - net
(6 ) 1,401
251 (451 ) -Finance income
288
1,702
377 450 -Finance costs
(294 )
(301 )
(126 ) (901 )
Profit
before taxation 6,495 5,020
3,588 1,483 Taxation
(2,208 ) (957 )
(1,800
) 228
Profit for the period
4,287 4,063
1,788
1,711
Attributable to: Owners of the
parent
4,283 4,064
1,789 1,712 Non-controlling
interests
4 (1 )
(1
) (1 )
4,287 4,063
1,788 1,711
Earnings per share -basic ($)
0.01 0.01
#
#
-diluted ($)
0.01 0.01
#
#
Earnings per American Depositary Share -basic ($)
0.19 0.15
0.08 0.07 -diluted ($)
0.19 0.15
0.08 0.07 Ordinary shares ('000)1 -in issue at
September 30
559,381 562,259
559,381 562,259
-weighted average
560,677 695,746
558,824 632,113
-diluted weighted average
566,715 697,920
566,008
633,413 Weighted average American Depositary Shares ('000)1
-in issue at September 30
22,375 22,490
22,375 22,490
-weighted average
22,427 27,830
22,353 25,285
-diluted weighted average
22,669 27,917
22,640 25,337
# Amounts less than $0.01
1
September 30, 2017 figure excludes
40,000,000 (September 30, 2016: 40,000,000) treasury shares held by
MiX Telematics Investments Proprietary Limited ("MiX Investments"),
a wholly owned subsidiary of the Group.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME South African Rand United States
Dollar Six months ended Six monthsended
Six months ended Six monthsended Figures are
in thousands unless otherwise stated
September 30, September
30,
September 30, September 30,
2017 2016
2017
2016
Unaudited Unaudited
Unaudited Unaudited
Profit for the period
58,144 55,118
4,287 4,063 Other comprehensive income:
Items that may be subsequently reclassified to profit or loss
Exchange differences on translating foreign operations
18,796 (58,619 )
1,386
(4,323 ) - Attributable to owners of the parent
18,785 (58,571 )
1,385 (4,319 ) - Attributable to
non-controlling interests
11 (48 )
1 (4 ) Taxation relating to components
of other comprehensive income
— 478
— 35
Other
comprehensive income/(loss) for the period, net of tax
18,796 (58,141 )
1,386
(4,288 )
Total comprehensive income/(loss) for the
period 76,940 (3,023 )
5,673 (225 )
Attributable to:
Owners of the parent
76,869 (2,963 )
5,668 (221 )
Non-controlling interests
71 (60 )
5 (4 )
Total comprehensive
income/(loss) for the period 76,940
(3,023 )
5,673 (225 )
HEADLINE EARNINGS Reconciliation of headline earnings
South African Rand United
States Dollar
Six months ended
Six monthsended
Six months ended
Six monthsended
Figures are in thousands unless otherwise stated
September
30, September 30,
September 30, September 30,
2017 2016
2017 2016
Unaudited
Unaudited
Unaudited Unaudited
Profit
for the period attributable to owners of the parent
58,084 55,130
4,283 4,064 Adjusted for: (Profit)/loss
on disposal of property, plant and equipment and intangible assets
(313 ) 17
(23 ) 1 Impairment of product
development costs capitalized
127 144
9 11 Income tax
effect on the above components
— (23 )
— (2 )
Headline earnings
attributable to owners of the parent 57,898
55,268
4,269 4,074
Headline earnings Headline earnings per share -basic
(R/$)
0.10 0.08
0.01 0.01 -diluted (R/$)
0.10
0.08
0.01 0.01 Headline earnings per American
Depositary Share -basic (R/$)
2.58 1.99
0.19 0.15
-diluted (R/$)
2.56 1.98
0.19 0.15
ADJUSTED
EARNINGS Reconciliation of adjusted earnings South
African Rand Six months ended Six
monthsended
Three months ended
Three monthsended
Figures are in thousands unless otherwise stated
September
30, September 30,
September 30, September 30,
2017 2016
2017 2016
Unaudited
Unaudited
Unaudited Unaudited
Profit for the period attributable to owners of the parent
58,084 55,130
24,248 23,205 Net foreign exchange
losses/(gains)
1,784 (11,496 )
(3,209 ) 8,421
Income tax effect on the above component
1,692
(6,381 )
9,853 (11,637 )
Adjusted earnings attributable to owners of the parent
61,560 37,253
30,892 19,989
Adjusted
earnings Adjusted earnings per share -basic (R)
0.11
0.05
0.06 0.03 -diluted (R)
0.11 0.05
0.05
0.03 Adjusted earnings per American Depositary Share -basic
(R)
2.74 1.34
1.38 0.79 -diluted (R)
2.72 1.33
1.36 0.79
United States Dollar Figures are in
thousands unless otherwise stated
Profit for the period attributable
to owners of the parent 4,283 4,064
1,789 1,712
Net foreign exchange losses/(gains)
132 (848 )
(237
) 621 Income tax effect on the above component
125 (471 )
726
(858 )
Adjusted earnings attributable to owners of the
parent 4,540 2,745
2,278 1,475 Adjusted earnings
per share -basic ($)
0.01
#
#
#
-diluted ($)
0.01
#
#
#
Adjusted earnings per American Depositary Share -basic ($)
0.20 0.10
0.10 0.06 -diluted ($)
0.20
0.10
0.10 0.06
# Amounts less than $0.01
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL
POSITION South African Rand United
States Dollar Figures are in thousands unless otherwise stated
September 30, March 31,
September 30,
March 31,
2017 2017
2017 2017
Unaudited Audited
Unaudited
Unaudited
ASSETS Non-current assets Property,
plant and equipment
352,503 294,120
25,992 21,687
Intangible assets
909,920 881,900
67,094 65,028
Finance lease receivable
— 22
— 2 Deferred tax assets
33,124 28,130
2,442 2,074
Total non-current
assets 1,295,547 1,204,172
95,528 88,791
Current
assets Inventory
53,738 26,449
3,962 1,950 Trade
and other receivables
299,984 260,576
22,120 19,214
Finance lease receivable
62 140
5 10 Taxation
26,689 26,302
1,968 1,939 Restricted cash
14,151 13,268
1,043 978 Cash and cash equivalents
283,526 375,782
20,906 27,709
Total current
assets 678,150 702,517
50,004 51,800
Total
assets 1,973,697 1,906,689
145,532 140,591
EQUITY
Stated capital (note 7)
837,004 854,345
61,719 62,997
Other reserves
17,788 (4,370 )
1,311 (322 ) Retained
earnings
627,371 594,514
46,260 43,837 Equity attributable to
owners of the parent
1,482,163 1,444,489
109,290
106,512 Non-controlling interest
14
(1,558 )
1 (115 )
Total equity
1,482,177 1,442,931
109,291 106,397
LIABILITIES
Non-current liabilities Deferred tax liabilities
111,743 100,067
8,240 7,379 Provisions
1,981 1,833
146
135
Total non-current liabilities
113,724 101,900
8,386
7,514
Current liabilities Trade and
other payables
321,783 309,110
23,724 22,791 Taxation
6,872 4,521
507 333 Provisions
21,126 28,778
1,558 2,122 Share-based payment liability
1,353 —
100 — Bank overdraft
26,662
19,449
1,966 1,434
Total current liabilities 377,796
361,858
27,855 26,680
Total liabilities 491,520
463,758
36,241 34,194
Total equity and liabilities 1,973,697
1,906,689
145,532 140,591
Net cash (note 6) 256,864
356,333
18,940 26,275 Net
asset value per share (R/$)
2.65 2.56
0.20 0.19 Net
tangible asset value per share (R/$)
1.02 1.00
0.08
0.07
Capital expenditure -incurred
177,127 289,418
13,061 21,341 -authorized but not spent
50,448
132,836
3,720
9,795
CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS South African Rand United
States Dollar Six months ended Six
monthsended
Six months ended Six monthsended
September 30, September 30,
September 30, September
30, Figures are in thousands unless otherwise stated
2017
2016
2017 2016
Unaudited Unaudited
Unaudited Unaudited
Operating
activities Cash generated from operations
141,163
124,340
10,409 9,168 Net financing income
1,703 7,666
126 565 Taxation paid
(20,582 )
(34,792 )
(1,518 ) (2,565 )
Net cash
generated from operating activities 122,284
97,214
9,017 7,168
Cash flows from investing activities Capital
expenditure payments
(182,516 ) (147,187 )
(13,458 ) (10,853 ) Deferred consideration paid
— (735 )
— (54 ) Proceeds on sale of property, plant
and equipment and intangible assets
1,218 198
90 15
Decrease in restricted cash
22 3,765
2 278 Increase
in restricted cash
(689 ) (566 )
(51 ) (42 )
Net cash used in investing
activities (181,965 ) (144,525 )
(13,417 ) (10,656 )
Cash flows from
financing activities Proceeds from issuance of ordinary shares
1,325 4,529
98 334 Share repurchase
(18,666
) (473,601 )
(1,376 ) (34,922 ) Dividends paid
to Company's owners
(25,200 ) (30,458 )
(1,858 ) (2,246 )
Net cash used in
financing activities (42,541 )
(499,530 )
(3,136 ) (36,834 )
Net
decrease in cash and cash equivalents (102,222
) (546,841 )
(7,536 )
(40,322 )
Net cash and cash equivalents at the beginning of the
period 356,333 860,762
26,275 63,470 Exchange
gains/(losses) on cash and cash equivalents
2,753
(2,593 )
201 (191 )
Net cash and cash equivalents at the end of the period
256,864 311,328
18,940 22,957
FREE
CASH FLOW Reconciliation of free cash flow to net cash
generated from operating activities Six months
ended Six monthsended
Three months
ended
Three monthsended
South African Rand September 30, September 30,
September 30, September 30, Figures are in thousands unless
otherwise stated
2017 2016
2017 2016
Unaudited Unaudited
Unaudited
Unaudited
Net cash generated from operating
activities 122,284 97,214
103,960 69,113 Capital
expenditure payments
(182,516 )
(147,187 )
(100,172 ) (84,960 )
Free
cash flow (60,232 ) (49,973 )
3,788 (15,847 )
United States
Dollar Figures are in thousands unless otherwise stated
Net cash
generated from operating activities 9,017 7,168
7,666 5,096 Capital expenditure payments
(13,458 ) (10,853 )
(7,386
) (6,265 )
Free cash flow (4,441
) (3,685 )
280 (1,169 )
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN
EQUITY Attributable to owners of the parent
South African Rand
Figures are in thousands unless otherwise
stated
Statedcapital
Otherreserves Retainedearnings
Total Non-controlling
interest Totalequity Balance at
April 1, 2016 (Audited) 1,320,955 74,262
526,082 1,921,299 (1,491 ) 1,919,808
Total
comprehensive income — (58,093 ) 55,130
(2,963 ) (60 ) (3,023 ) Profit for the
period — — 55,130 55,130 (12 ) 55,118 Other comprehensive loss —
(58,093 ) — (58,093 ) (48
) (58,141 )
Transactions with owners (469,153
) 5,435 (30,489 ) (494,207 ) —
(494,207 ) Shares issued in relation to share options
exercised 4,529 — — 4,529 — 4,529 Share-based payment — 5,435 —
5,435 — 5,435 Dividends declared — — (30,489 ) (30,489 ) — (30,489
) Share repurchase (note 7) (473,682 ) —
— (473,682 ) — (473,682 )
Balance at September 30, 2016 (Unaudited) 851,802
21,604 550,723 1,424,129
(1,551 ) 1,422,578
Total
comprehensive income — (22,786 ) 66,328
43,542 (7 ) 43,535 Profit
for the period — — 66,328 66,328 (5 ) 66,323 Other comprehensive
income — (22,786 ) — (22,786 )
(2 ) (22,788 )
Transactions with owners
2,543 (3,188 ) (22,537 ) (23,182 )
— (23,182 ) Shares issued in relation to share
options exercised 2,543 — — 2,543 — 2,543 Share-based payment —
(3,188 ) — (3,188 ) — (3,188 )
Dividends declared
— — (22,537 ) (22,537 )
— (22,537 )
Balance
at March 31, 2017 (Audited) 854,345 (4,370
) 594,514 1,444,489 (1,558 )
1,442,931
Total comprehensive income
— 18,785 58,084
76,869 71
76,940 Profit for the period
— —
58,084 58,084 60 58,144 Other
comprehensive income
— 18,785
— 18,785 11
18,796 Transactions with
owners (17,341 ) 3,373
(25,227 ) (39,195 )
1,501 (37,694 ) Shares
issued in relation to share options exercised
1,325 —
— 1,325 — 1,325 Share-based payment
— 4,874 — 4,874 — 4,874
Dividends declared (note 8)
— — (25,227
) (25,227 ) — (25,227 )
Share repurchase (note 7)
(18,666 ) — —
(18,666 ) — (18,666 )
Transactions with non-controlling interests (note 9)
— (1,501 ) —
(1,501 ) 1,501
— Balance at September 30, 2017
(Unaudited) 837,004 17,788
627,371 1,482,163
14 1,482,177
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Attributable to owners of the parent
United States DollarFigures are in
thousands unless otherwise stated
Statedcapital
Otherreserves Retainedearnings
Total Non-controlling
interest Totalequity Balance at
April 1, 2016 (Unaudited) 97,403 5,476
38,791 141,670 (110 ) 141,560
Total comprehensive
income — (4,284 ) 4,065 (219
) (5 ) (224 ) Profit for the period — — 4,065 4,065
(1 ) 4,064 Other comprehensive loss — (4,284 )
— (4,284 ) (4 ) (4,288 )
Transactions with owners (34,594 ) 401
(2,248 ) (36,441 ) — (36,441 ) Shares
issued in relation to share options exercised 334 — — 334 — 334
Share-based payment — 401 — 401 — 401 Dividends declared — — (2,248
) (2,248 ) — (2,248 ) Share repurchase (note 7) (34,928 )
— — (34,928 ) —
(34,928 )
Balance at September 30, 2016 (Unaudited)
62,809 1,593 40,608
105,010 (115 ) 104,895
Total comprehensive income — (1,680 )
4,891 3,211
*
3,211 Profit for the period — — 4,891 4,891
*
4,891 Other comprehensive income — (1,680 ) —
(1,680 )
*
(1,680 )
Transactions with owners 188
(235 ) (1,662 ) (1,709 ) —
(1,709 ) Shares issued in relation to share options
exercised 188 — — 188 — 188 Share-based payment — (235 ) — (235 ) —
(235 )
Dividends declared
— — (1,662 ) (1,662 )
— (1,662 )
Balance at March 31, 2017
(Unaudited) 62,997 (322 ) 43,837
106,512 (115 ) 106,397
Total comprehensive income —
1,385 4,283 5,668
5 5,673 Profit for
the period
— — 4,283 4,283 4
4,287 Other comprehensive income
—
1,385 — 1,385
1 1,386
Transactions with owners (1,278 )
248 (1,860 )
(2,890 ) 111
(2,779 ) Shares issued in relation to share options
exercised
98 — — 98 — 98
Share-based payment
— 359 — 359
— 359 Dividends declared (note 8)
— —
(1,860 ) (1,860 ) —
(1,860 ) Share repurchase (note 7)
(1,376
) — — (1,376 ) —
(1,376 ) Transactions with non-controlling interests
(note 9)
— (111 )
— (111 ) 111
— Balance at September 30, 2017
(Unaudited) 61,719 1,311
46,260 109,290
1 109,291
* Amount less than $1000.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL RESULTS
1. Basis of preparation and accounting policies
Condensed unaudited Group interim financial results for the half
year ended September 30, 2017
These condensed unaudited Group interim financial results for
the half year ended September 30, 2017 have been prepared in
accordance with International Financial Reporting Standard
("IFRS"), IAS 34: Interim financial reporting, the SAICA Financial
Reporting Guides as issued by the Accounting Practices Committee,
Financial Pronouncements as issued by the Financial Reporting
Standards Council ("FRSC"), the JSE Listings Requirements and the
requirements of the South African Companies Act, No. 71 of 2008.
The interim financial results have not been audited or reviewed by
the Group’s external auditors.
The condensed unaudited Group interim financial results do not
include all the information and disclosures required in the annual
financial statements and should be read in conjunction with the
Group’s annual financial statements for the year ended March 31,
2017, which have been prepared in accordance with IFRS.
The preparation of interim financial results requires management
to make judgments, estimates and assumptions that affect the
application of accounting policies and the reported amounts of
assets and liabilities, income and expenses. In preparing these
condensed interim financial results, the significant judgments made
by management in applying the Group’s accounting policies and the
key sources of estimation and uncertainty were the same as those
applied to the consolidated financial statements for the year ended
March 31, 2017.
The condensed unaudited Group interim financial results were
prepared under the supervision of the Interim Group Chief Financial
Officer, PM Dell, CA (SA). The results were made available on
November 2, 2017.
The Group has adopted all the new, revised or amended accounting
pronouncements as issued by the International Accounting Standards
Board (IASB) which were effective for the Group from April 1, 2017,
none of which had a material impact on the Group.
Financial results for the second quarter of fiscal 2018
In addition to the condensed unaudited Group interim financial
results for the half year ended September 30, 2017, additional
financial information in respect of the second quarter of fiscal
2018 has been presented together with the relevant comparative
information. The quarterly information comprises a condensed
consolidated income statement, a reconciliation of adjusted
earnings to profit for the period, a reconciliation of Adjusted
EBITDA to profit for the period (note 4) and other financial and
operating data (note 11).
The quarterly financial results have not been audited or
reviewed by the Group’s external auditors.
Presentation currency and convenience translation
The Group’s presentation currency is South African Rand. In
addition to presenting these interim financial results in South
African Rand, supplementary information in U.S. Dollars has been
prepared for the convenience of users of the Group interim
financial results. Unless otherwise stated, the Group has
translated U.S. Dollar amounts from South African Rand at the
exchange rate of R13.5618 per $1.00, which was the R/$ exchange
rate reported by Oanda.com as at September 30, 2017. The U.S.
Dollar figures may not compute as they are rounded
independently.
The supplementary information prepared in U.S. Dollars
constitutes pro forma financial information under the JSE Listings
Requirements. This pro forma financial information is the
responsibility of the Group’s Board of Directors and is presented
for illustrative purposes. Because of its nature, the pro forma
financial information may not fairly present MiX Telematics’
financial position, changes in equity, results of operations or
cash flows. The pro forma financial information does not constitute
pro forma information in accordance with the requirements of
Regulation S-X of the SEC or generally accepted accounting
principles in the United States. In addition, the rules and
regulations related to the preparation of pro forma financial
information in other jurisdictions may also vary significantly from
the requirements applicable in South Africa.
2. Accounting policies
The accounting policies used in preparing these financial
results are in terms of IFRS and are consistent in all material
respects with those applied in the preparation of the Group’s
annual financial statements for the year ended
March 31, 2017.
3. Segment information
Our operating segments are based on the geographical location of
our Regional Sales Offices (“RSOs”) and also include our Central
Services Organization (“CSO”). CSO is our central services
organization that wholesales our products and services to our RSOs
who, in turn, interface with our end-customers, distributors and
dealers. CSO is also responsible for the development of our
hardware and software platforms and provides common marketing,
product management, technical and distribution support to each of
our other operating segments.
The chief operating decision maker ("CODM") reviews the segment
results on an integral margin basis as defined by management. The
CODM, who is responsible for allocating resources and assessing
performance of the operating segments, has been identified
collectively as the executive committee and the Chief Executive
Officer who make strategic decisions. In respect of revenue, this
method of measurement entails reviewing the segmental results based
on external revenue only. In respect of Adjusted EBITDA (the profit
measure identified by the CODM), the margin generated by CSO, net
of any unrealized intercompany profit, is allocated to the
geographic region where the external revenue is recorded by our
RSOs. The costs remaining in CSO relate mainly to research and
development of hardware and software platforms, common marketing,
product management and technical and distribution support to each
of the RSOs. CSO is a reportable segment of the Group because it
produces discrete financial information which is reviewed by the
CODM and has the ability to generate external revenues.
Each RSO's results therefore reflect the external revenue
earned, as well as the Adjusted EBITDA earned (or loss incurred) by
each operating segment before the remaining CSO and corporate costs
allocations. Segment assets are not disclosed as segment
information is not reviewed on such a basis by the CODM.
3. Segment information (continued)
South African Rand Figures are in
thousands unless otherwise stated
Subscriptionrevenue
Hardware andother
revenue
Totalrevenue
Adjusted EBITDA
Six months ended September 30, 2017 (unaudited)
Africa
423,157 46,392 469,549 209,392
Europe
55,923 33,482 89,405 29,443
Americas
83,012 12,868 95,880 24,958
Middle East and Australasia
98,900 37,096
135,996 49,570 Brazil
23,120
2,327 25,447
8,752 Total Regional Sales Offices
684,112 132,165 816,277 322,115 Central
Services Organization
515 38
553 (68,849 )
Total Segment Results 684,627 132,203
816,830 253,266 Corporate and consolidation entries
— — —
(56,070 ) Total
684,627 132,203
816,830 197,196 Six
months ended September 30, 2016 (unaudited)
Subscriptionrevenue
Hardware andother revenue
Totalrevenue
AdjustedEBITDA
Africa 374,377 45,520 419,897 157,386 Europe 59,097 19,256 78,353
21,185 Americas 56,958 21,403 78,361 13,713 Middle East and
Australasia 102,271 50,774 153,045 40,412 Brazil 14,365
2,792 17,157 4,351
Total Regional Sales Offices 607,068 139,745 746,813 237,047
Central Services Organization 443 —
443 (64,354 )
Total Segment Results
607,511 139,745 747,256 172,693 Corporate and consolidation entries
— — — (46,014 )
Total 607,511 139,745
747,256 126,679
3. Segment information (continued)
United States Dollar Figures are in thousands unless
otherwise stated
Subscriptionrevenue
Hardware andother
revenue
Totalrevenue
Adjusted EBITDA
Six months ended September
30, 2017 (unaudited) Africa
31,202 3,421
34,623 15,440 Europe
4,124 2,468
6,592 2,171 Americas
6,121 949
7,070 1,840 Middle East and Australasia
7,292
2,736 10,028 3,655 Brazil
1,705
171 1,876
645 Total Regional Sales Offices
50,444 9,745 60,189 23,751 Central
Services Organization
38 3
41 (5,077 )
Total Segment Results 50,482 9,748
60,230 18,674 Corporate and consolidation entries
— — —
(4,134 ) Total
50,482 9,748
60,230 14,540
Six months ended September 30, 2016 (unaudited)
Subscriptionrevenue
Hardware andother revenue
Totalrevenue
AdjustedEBITDA
Africa 27,605 3,357 30,962 11,605 Europe 4,358 1,419 5,777 1,562
Americas 4,200 1,578 5,778 1,011 Middle East and Australasia 7,541
3,744 11,285 2,980 Brazil 1,059 206
1,265 321
Total Regional
Sales Offices 44,763 10,304 55,067 17,479 Central Services
Organization 33 — 33
(4,745 )
Total Segment Results 44,796 10,304
55,100 12,734 Corporate and consolidation entries —
— — (3,393 )
Total
44,796 10,304 55,100
9,341
4. Reconciliation of
Adjusted EBITDA to Profit for the Period South African
Rand Six months ended Six
monthsended
Three months ended
Three monthsended
Figures are in thousands unless otherwise stated
September
30, September 30,
September 30, September 30,
2017 2016
2017 2016
Unaudited
Unaudited
Unaudited Unaudited
Adjusted EBITDA 197,196 126,679
103,313 66,230
Add: Decrease in restructuring cost provision
— 431
—
— Net profit on sale of property, plant and equipment and
intangible assets
313 —
— 43 Less:
Depreciation (1)
(71,576 ) (45,525 )
(37,096
) (24,586 ) Amortization (2)
(31,387 ) (25,829
)
(16,823 ) (12,297 ) Impairment of product
development costs capitalized
(127 ) (144 )
(35 ) (144 ) Share-based compensation costs
(6,226 ) (6,499 )
(4,079
) (3,020 ) Equity-settled share-based compensation
costs
(4,874 ) (5,435 )
(2,727 ) (3,020
) Cash-settled share-based compensation costs
(1,352
) (1,064 )
(1,352 ) —
Net loss on sale of property, plant and equipment and
intangible assets
— (17 )
(19 ) — Increase in
restructuring cost provision
(24 ) —
(6 ) —
Operating
profit 88,169 49,096
45,255 26,226 Add: Finance
(costs)/income - net
(84 ) 18,995
3,402 (6,120
) Less: Taxation
(29,941 ) (12,973 )
(24,417 ) 3,092
Profit for
the period 58,144 55,118
24,240 23,198 (1)
Includes depreciation of property, plant and equipment (including
in-vehicle devices). (2) Includes amortization of intangible assets
(including product development costs and intangible assets
identified as part of a business combination).
4.
Reconciliation of Adjusted EBITDA to Profit for the Period
(continued) United States Dollar Six
months ended Six monthsended
Three
months ended Three monthsended Figures are in
thousands unless otherwise stated
September 30, September
30,
September 30, September 30,
2017 2016
2017
2016
Unaudited Unaudited
Unaudited Unaudited
Adjusted EBITDA
14,540 9,341
7,618 4,884 Add: Decrease in
restructuring cost provision
— 32
— — Net profit on
sale of property, plant and equipment and intangible assets
23 —
— 3 Less: Depreciation (1)
(5,278
) (3,357 )
(2,735 ) (1,813 ) Amortization (2)
(2,314 ) (1,905 )
(1,240 ) (907 )
Impairment of product development costs capitalized
(9
) (11 )
(4 ) (10 ) Share-based compensation
costs
(459 ) (479 )
(301
) (223 ) Equity-settled share-based compensation
costs
(359 ) (401 )
(201 ) (223 )
Cash-settled share-based compensation costs
(100
) (78 )
(100 ) —
Net loss on sale of property, plant and equipment and intangible
assets
— (1 )
(1 ) — Increase in restructuring
cost provision
(2 ) —
*
—
Operating profit 6,501 3,619
3,337 1,934 Add: Finance (costs)/income - net
(6
) 1,401
251 (451 ) Less: Taxation
(2,208 ) (957 )
(1,800 )
228
Profit for the period 4,287
4,063
1,788 1,711
(1) Includes depreciation of property, plant
and equipment (including in-vehicle devices). (2) Includes
amortization of intangible assets (including product development
costs and intangible assets identified as part of a business
combination).
* Amount less than $1000.
5. Reconciliation of Adjusted EBITDA margin to Profit for
the Period margin Six months ended
Six monthsended
Three months ended
Three monthsended
September 30, September 30,
September
30, September 30,
2017 2016
2017 2016
Unaudited Unaudited
Unaudited
Unaudited
Adjusted EBITDA margin 24.1
% 17.0 %
25.1 % 18.0 % Add: Decrease in
restructuring cost provision
— 0.1 %
— — Net profit
on sale of property, plant and equipment and intangible assets
0.0 % —
— 0.0 % Less: Depreciation
(8.7
%) (6.1 %)
(9.0 %) (6.8 %) Amortization
(3.8 %) (3.5 %)
(4.1 %) (3.3 %)
Impairment of product development costs capitalized
(0.0
%)
(0.0
%)
(0.0 %)
(0.0
%)
Share-based compensation costs
(0.8 %)
(0.9 %)
(1.0 %) (0.8 %) Equity-settled
share-based compensation costs
(0.6 %) (0.7 %)
(0.7 %) (0.8 %) Cash-settled share-based compensation
costs
(0.2 %) (0.2 %)
(0.3 %) — Net loss on sale of property,
plant and equipment and intangible assets
— (0.0 %)
(0.0 %) — Increase in restructuring cost provision
(0.0 %) —
(0.0
%) —
Operating profit margin
10.8 % 6.6 %
11.0 % 7.1 %
Add: Finance (costs)/income - net
(0.0 %) 2.5 %
0.8 % (1.6 %) Less:
Taxation
(3.7 %) (1.7 %)
(5.9 %) 0.8 %
Profit for the period
margin 7.1 % 7.4 %
5.9 % 6.3 %
6. Net Cash
Net cash is calculated as being net cash and cash equivalents,
excluding restricted cash less interest bearing borrowings.
7. Share Repurchase
Fiscal 2018
On May 23, 2017, the MiX Telematics Board approved a share
repurchase program of up to R270 million ($19.9 million) under
which the Company may repurchase its ordinary shares, including
American Depositary Shares ("ADSs"). The Company may repurchase its
shares from time to time at its discretion through open market
transactions and block trades, based on ongoing assessments of the
capital needs of the Company, the market price of its securities
and general market conditions. This share repurchase program may be
discontinued at any time by the Board of Directors, and the Company
has no obligation to repurchase any amount of its securities under
the program. The repurchase program will be funded out of existing
cash resources.
At September 30, 2017, the following purchases had been made
under the share repurchase program:
South African RandFigures are in
thousands unless otherwise stated
Total number
ofsharesrepurchased
Averageprice paidper
share (1)
Sharescanceled
under the
sharerepurchaseprogram
Total value
ofsharespurchased as
partofpubliclyannouncedprogram
Maximum value ofshares that may
yetbe purchased underthe program
June 2017 5,015,660
3.72 5,015,660
18,666 251,334
5,015,660 5,015,660
18,666 251,334
United States Dollar
Figures are in thousands unless otherwise
stated
Total number ofshares
repurchased
Averageprice paidper
share (1)
Shares canceledunder the
share repurchase program
Total value of
sharespurchased as part of publicly
announced program
Maximum value ofshares that may
yet be purchased under the program
June 2017 5,015,660
0.27 5,015,660
1,376 18,532
5,015,660 5,015,660
1,376 18,532 (1)
Including transaction costs.
Subsequent to the repurchase, the shares were de-listed and now
form part of the authorized unissued share capital of the Company.
At September 30, 2017, the Company had 559,380,738 ordinary shares
of no par value in issue (excluding 40,000,000 treasury shares held
by MiX Investments).
Fiscal 2017
On April 29, 2016, the Company entered into an agreement (the
“share repurchase agreement”) with Imperial Holdings Limited
("Imperial Holdings") and Imperial Corporate Services Proprietary
Limited ("Imperial Corporate Services"), a wholly owned subsidiary
of Imperial Holdings, to repurchase all 200,828,260 of the
Company’s shares held by Imperial Corporate Services (the
“repurchase shares”) at R2.36 ($0.17) per repurchase share, for an
aggregate repurchase consideration of R474.0 million or $34.9
million (the “repurchase”). At the general meeting held on August
1, 2016, shareholders of the Company approved the repurchase in
terms of the JSE Listings Requirements and the South African
Companies Act, No. 71 of 2008, at which point the transaction was
accounted for in terms of IFRS. The repurchase was implemented on
August 29, 2016. Subsequent to the repurchase, the shares were
delisted and now form part of the authorized unissued share capital
of the Company.
The financial effect of the transaction was as follows:
Figures are in thousands unless otherwise stated
South African Rand United States Dollar
Aggregate repurchase consideration
473,955
34,948 Impact of discounting related to fiscal 2017 share
repurchase transaction
(3,222 ) (238 )
Transaction costs capitalized
2,949
218 Total share repurchase cost
473,682 34,928
8. Dividends Paid
The following dividends were declared by the Company during the
six months ended September 30, 2017 (excluding dividends paid on
treasury shares):
- In respect of the fourth quarter of
fiscal year 2017, a dividend of R11.3 million ($0.8 million) was
declared on May 23, 2017 and paid on June 19, 2017. Using shares in
issue of 563,514,561 (excluding 40,000,000 treasury shares), this
equated to a dividend of 2 South African cents or 0.1 U.S. cents
per ordinary share; and
- In respect of the first quarter of
fiscal 2018, a dividend of R14.0 million ($1.0 million) was
declared on August 1, 2017 and paid on August 28, 2017. Using
shares in issue of 558,498,901 (excluding 40,000,000 treasury
shares), this equated to a dividend of 2.5 South African cents or
1.8 U.S. cents per share.
9. Acquisition of non-controlling interest
In June 2014, the Group entered into an agreement with Edge
Gestão Empresarial LTDA (“Edge”), whereby Edge was granted a 5%
holding in the equity interest of MiX Brazil. Prior to this
agreement Edge held a non-controlling interest in MiX Brazil of
0.0025%. Edge is a Brazilian-based investment company controlled by
Luiz Munhoz, the Managing Director of MiX Brazil. The increase in
the equity interests granted to Edge was in respect of services
provided by Luiz Munhoz to MiX Brazil, in his role as Managing
Director of MiX Brazil. In terms of the quotaholders agreement Edge
had an option to transfer its interest in MiX Brazil back to the
Group at fair value. The agreement with Edge represented a
cash-settled share-based payment.
In September 2017 Edge exercised the put option in the
quotaholders agreement. In terms of the sale agreement MiX
Investments acquired Edge’s 5% equity interest in MiX Brazil for
R1.4 million ($0.1 million) which increased the Group's interest in
MiX Brazil to 100%. As a result, the Group recognised a
cash-settled share-based payment expense and liability of R1.4
million ($0.1 million). The non-controlling interest related to MiX
Brazil of R1.5 million ($0.1 million) was also transferred to other
reserves within equity.
10. Contingent Liabilities
Service agreement
In terms of an amended network services agreement with Mobile
Telephone Networks Proprietary Limited (“MTN”), MTN is entitled to
claw back payments from MiX Telematics Africa Proprietary Limited
in the event of early cancellation of the agreement or certain base
connections not being maintained over the term of the agreement. No
connection incentives will be received in terms of the amended
network services agreement. The maximum potential liability under
the arrangement is R46.1 million or $3.4 million. No loss is
considered probable under this arrangement.
11. Other Operating and Financial Data South African
Rand Six months ended Six
monthsended
Three months ended
Three monthsended
Figures are in thousands except for subscribers
September
30, September 30,
September 30, September 30,
2017 2016
2017 2016
Unaudited
Unaudited
Unaudited Unaudited
Subscription revenue
684,627 607,511
349,262 301,337
Adjusted EBITDA
197,196 126,679
103,313 66,230 Cash
and cash equivalents
283,526 346,873
283,526 346,873
Net cash
256,864 310,960
256,864 310,960 Capital
expenditure incurred
177,127 146,638
98,003 83,808 Property, plant
and equipment expenditure
127,452 95,852
72,846
56,560 Intangible asset expenditure
49,675
50,786
25,157 27,248
Total development cost incurred
67,342
73,264
34,167 36,034 Development
cost capitalized
32,804 40,337
16,148 21,028
Development cost expensed within administration and other charges
34,538 32,927
18,019 15,006 Subscribers
640,158 584,994
640,158
584,994
United
States Dollar Six months ended Six monthsended
Three months ended
Three monthsended
Figures are in thousands except for subscribers
September
30, September 30,
September 30, September 30,
2017 2016
2017 2016
Unaudited
Unaudited
Unaudited Unaudited
Subscription revenue
50,482 44,796
25,753 22,219
Adjusted EBITDA
14,540 9,341
7,618 4,884 Cash and
cash equivalents
20,906 25,577
20,906 25,577 Net cash
18,940 22,929
18,940 22,929 Capital expenditure
incurred
13,061 10,813
7,226 6,180 Property, plant and equipment
expenditure
9,398 7,068
5,371 4,171 Intangible asset
expenditure
3,663 3,745
1,855 2,009 Total development cost incurred
4,966 5,402
2,520
2,657 Development cost capitalized
2,419 2,974
1,191 1,551 Development cost expensed within administration
and other charges
2,547 2,428
1,329 1,106 Subscribers
640,158 584,994
640,158
584,994
Exchange Rates
The following major rates of exchange were
used:
South African Rand: United States
Dollar
-closing
13.56
13.86
13.56
13.86
-average
13.18
14.53
13.17
14.06
South African Rand: British Pound
-closing
18.13
17.98
18.13
17.98
-average
17.05
19.99
17.23
18.46
12. Fair Value of Financial Assets and Liabilities Measured
at Amortized Cost
The fair values of trade and other receivables, restricted cash,
cash and cash equivalents, trade payables, accruals, bank overdraft
and other payables approximate their book values as the impact of
discounting is not considered material due to the short-term nature
of both the receivables and payables.
13. Subsequent Events
The directors are not aware of any matter material or otherwise
arising since September 30, 2017 and up to the date of this report,
not otherwise dealt with herein.
14. Dividend Declared
On October 31, 2017 the Board declared in respect of the second
quarter of fiscal year 2018, which ended on
September 30, 2017, a dividend of 2.5 South African cents
(0.2 U.S. cents) per ordinary share to be paid on Monday,
November 27, 2017.
The details with respect to the dividends declared for ordinary
shareholders are as follows:
Last day to trade cum dividend
Tuesday, November 21, 2017
Securities trade ex dividend
Wednesday, November 22, 2017 Record date Friday, November 24, 2017
Payment date Monday, November 27, 2017
Share certificates may not be dematerialized or rematerialized
between Wednesday, November 22, 2017 and
Friday, November 24, 2017, both days inclusive.
Shareholders are advised of the following additional
information:
- the dividend has been declared out of
income reserves;
- the local dividends tax rate is
20%;
- the gross local dividend amounts to 2.5
South African cents per ordinary share;
- the net local dividend amount is 2.0
South African cents per ordinary share for shareholders liable to
pay dividends tax;
- the issued ordinary share capital of
MiX Telematics is 599,380,738 ordinary shares of no par value;
and
- the Company’s tax reference number is
9155/661/84/7.
The details with respect to the dividends declared for holders
of our ADSs are as follows:
Ex dividend on New York Stock Exchange
(NYSE)
Wednesday, November 22, 2017
Record date Friday, November 24, 2017 Approximate date of currency
conversion Monday, November 27, 2017 Approximate dividend payment
date Tuesday, December 12, 2017
15. Changes to the Board
With effect from October 3, 2017, Fundiswa Roji-Maplanka, was
appointed as an independent non-executive director to the Board of
Directors, and a member of the Audit and Risk Committee, as well as
the Social and Ethics Committee. Fundiswa was previously a
non-executive director of MiX Telematics from August 2007 to
November 2014.
16. Development costs historical data
The table below sets out development costs incurred and
capitalized for each of the last eight quarters including the
period ended September 30, 2017.
South African
Rand Figures are in thousands (Unaudited)
Three months
ended
September
30, June 30, March 31, December 31,
September 30,
June 30, March 31, December 31,
2017
2017 2017 2016 2016 2016 2016
2015 Total development costs incurred
34,167 33,175 32,152 36,696
36,034 37,230 28,693 28,016 Development costs
capitalized
16,148 16,656 17,268 20,415 21,028 19,309 12,136
16,308 Development costs expensed within administration and other
charges
18,019 16,519 14,884
16,281 15,006 17,921 16,557 11,708
United States Dollar
Figures are in thousands (Unaudited)
Three months ended
September 30, June
30, March 31, December 31,
September 30,
June 30, March 31, December 31,
2017
2017 2017 2016 2016 2016 2016
2015 Total development costs incurred
2,520 2,446 2,370 2,706 2,657
2,745 2,116 2,065 Development costs
capitalized
1,191 1,228 1,273 1,505 1,551 1,424 895 1,202
Development costs expensed within administration and other charges
1,329 1,218 1,097 1,201
1,106 1,321 1,221 863
17. Taxation
Section 11D Allowances relating to tax assets recognized
MiX Telematics International Proprietary Limited (“MiX
International”), a subsidiary of the Group, historically claimed a
150% allowance for research and development spend in terms of
section 11D (“S11D”) of the South African Income Tax Act No. 58 of
1962 (“the Act”). As of October 1, 2012, the legislation relating
to the allowance was amended. The amendment requires pre-approval
of development project expenditure on a project specific basis by
the South African Department of Science and Technology (“DST”) in
order to claim a deduction of the additional 50% over and above the
expenditure incurred (150% allowance). Since the amendments to S11D
of the Act, MiX International had been claiming the 150% deduction
resulting in a recognized tax benefit. MiX International has
complied with the amended legislation by submitting all required
documentation to the DST in a timely manner, commencing in October
2012.
In June 2014, correspondence was received from the DST
indicating that the research and development expenditure on certain
projects for which the 150% allowance was claimed in the 2013 and
2014 fiscal years did not, in the DST’s opinion, constitute
qualifying expenditure in terms of the Act. MiX International,
through due legal process, had formally requested a review of the
DST’s decision not to approve this expenditure. While approvals
were obtained for a portion of this project expenditure as a result
of a further review performed by the DST in February 2017, we
continue to seek approval for the remaining projects and as such
the legal process is ongoing. In addition to the approvals that
were subject to the legal process, further approvals have been
obtained for certain project expenditure, relating to both current
and prior financial years. However, at period end, an uncertain tax
position remains in relation to S11D deductions in respect of which
approvals remain pending.
Since the introduction of the DST pre-approval process, the
Group has recognized in the income statement cumulative tax
incentives in addition to the incurred cost of R19.6 million ($1.4
million) in respect of S11D deductions, of which R1.4 million ($0.1
million) was recognized during the six months ended September 30,
2017. R16.8 million ($1.2 million) relates to deductions in respect
of development project expenditure which has been approved by the
DST. R2.8 million ($0.2 million) relates to an uncertain tax
position in respect of projects where approvals have not yet been
received from the DST. If the Group is unsuccessful in this regard,
the Group will not recover the R2.8 million ($0.2 million) raised
at September 30, 2017.
Impact of foreign exchange movements
The impact of foreign exchange movements and the related tax
effects on the Group's effective tax rate is shown below:
South African Rand Six months ended
September 2017 Six months ended September 2016
Unaudited
Unaudited
Profit forthe period
Foreignexchangelosses
Adjustedearnings
Profit for theperiod
Foreignexchangegains
Adjustedearnings
Profit before tax
88,085
1,784 89,869 68,091 (11,496 ) 56,595 Taxation
(29,941 ) 1,692
(28,249 ) (12,973 ) (6,381 )
(19,354 )
Profit after tax 58,144
3,476 61,620
55,118 (17,877 ) 37,241
Attributable
to: Owners of the parent
58,084 3,476
61,560 55,130 (17,877 ) 37,253
Non-controlling interests
60 — 60
(12 ) — (12 )
58,144 3,476
61,620 55,118 (17,877 )
37,241 Effective tax rate
34.0 %
—
31.4
%
19.1
%
— 34.2 %
United States
Dollar Six months ended September 2017 Six months ended
September 2016
Unaudited Unaudited
Profit forthe period
Foreignexchangelosses
Adjustedearnings
Profit for theperiod
Foreignexchangegains
Adjustedearnings
Profit before tax
6,495
132 6,627 5,020 (848 ) 4,172 Taxation
(2,208 ) 125
(2,083 ) (957 ) (471 ) (1,428 )
Profit after tax 4,287
257 4,544 4,063
(1,319 ) 2,744
Attributable to: Owners
of the parent
4,283 257 4,540 4,064 (1,319 )
2,745
Non-controlling interests
4 — 4
(1 ) — (1 )
4,287 257 4,544
4,063 (1,319 ) 2,744
Effective tax rate
34.0 % —
31.4
%
19.1 % — 34.2 %
Excluding the impact of foreign exchange gains and losses and
its related tax consequences, the effective tax rate is 2.8% lower
than the first six months of fiscal 2017.
For and on behalf of the Board:
RA Frew SB Joselowitz Midrand October 31, 2017
For more information please visit our website at:
www.mixtelematics.com
MiX Telematics Limited
(Incorporated in the Republic of South Africa) (Registration
number: 1995/013858/06) JSE share code: MIX NYSE code: MIXT ISIN:
ZAE000125316 (“MiX Telematics” or “the Company” or “the Group”)
Registered office
Matrix Corner, Howick Close, Waterfall Park, Midrand
Directors RA Frew* (Chairman), SB Joselowitz (CEO), EN Banda*, SR
Bruyns* (Lead Independent Director), PM Dell, CH Ewing*, IV
Jacobs*, F Roji-Maplanka*, CWR Tasker, AR Welton* * Non-executive
Company secretary
Java Capital Trustees and Sponsors Proprietary Limited
Auditors
Deloitte & Touche
Sponsor
Java Capital Trustees and Sponsors Proprietary Limited
November 2, 2017
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171102005127/en/
Investors:ICR for MiX TelematicsSeth Potter,
+1-855-564-9835ir@mixtelematics.com
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