Track Group, Inc. Reports Strong Financial Growth for FY24
Financial Results Overview
Track Group, Inc. (OTCQB: TRCK), a prominent player in offender tracking and monitoring services, has recently released its financial outcomes for the fiscal year that concluded on September 30, 2024. The company achieved a noteworthy total revenue of $36.9 million, which is a remarkable growth of approximately 7% compared to the previous year's revenue of $34.5 million. However, despite the revenue increase, the company recorded an operating loss of $1.9 million, which is higher than the operating loss of $1.5 million for 2023.
Key Financial Highlights
Revenue and Gross Profit
For the fiscal year 2024, Track Group reported total revenue of $36.9 million, reflecting a robust 7% increase from $34.5 million in FY23. This surge can largely be attributed to an uptick in the number of individuals monitored through the company's services, particularly in key markets. Gross profit also saw a significant rise, reaching $17.2 million in FY24, a 12.5% rise from $15.3 million in FY23, driven by reduced operational costs.
Operating Loss and Net Loss
The adjusted operating loss for FY24 stood at $1.9 million, compared to the previous year's loss of $1.5 million. This increase is primarily due to one-time expenses, including an impairment charge of approximately $0.8 million related to assets classified as held for sale and a settlement of around $1.0 million from a contractual dispute.
EBITDA Performance
Adjusted EBITDA for FY24 was reported at $5.4 million, an increase from $3.8 million in the previous year. The company's adjusted EBITDA margin improved significantly, rising to 14.6% of total revenue from 11.1% in FY23, indicative of better cost management and operational efficiencies.
Future Business Outlook
Track Group is optimistic about sustaining its growth trajectory as it enters FY25. The management's focus on strategic investments in technology and the successful implementation of new monitoring programs positions the company advantageously for future expansion. The preliminary financial outlook for FY25 points towards expected revenues between $35 million and $36 million. Furthermore, the adjusted EBITDA margin is anticipated to remain strong, forecasted between 14% and 15%.
About Track Group, Inc.
Track Group, Inc. specializes in designing, manufacturing, and selling advanced location tracking devices. Their comprehensive suite of services caters to security, law enforcement, and rehabilitation sectors, providing innovative offender management solutions. This integrated approach supports rehabilitation initiatives through reliable tracking and monitoring technologies.
For further inquiries about the company, you may contact:
James Berg
Chief Financial Officer
jim.berg@trackgrp.com
Frequently Asked Questions
What were Track Group's total revenues in FY24?
Track Group reported total revenues of $36.9 million in FY24.
How did the company's gross profit change in FY24?
Gross profit increased to $17.2 million, up 12.5% from $15.3 million in FY23.
What is the company's outlook for FY25?
The company anticipates revenue between $35 million and $36 million for FY25.
What was the adjusted EBITDA for FY24?
Adjusted EBITDA for FY24 was reported at $5.4 million, reflecting improved operational efficiency.
Who should I contact for more information about Track Group?
You can reach out to James Berg, CFO at jim.berg@trackgrp.com.
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