Focused execution following the business combination with MiX Telematics evidenced by annual revenue and AEBITDA growth of +10% and +50%, respectively Revenue Grows 10.2% annually to $75.4 million , driven by unity ecosystem and safety-centric solutions Cost synergy traction with $8.
7 million in annual run-rate savings secured by end of June quarter WOODCLIFF LAKE, N.J. , Aug.
22, 2024 /PRNewswire/ -- Powerfleet, Inc. (Nasdaq: AIOT), reported its financial results for the first quarter ended June 30, 2024 . This marks the first full quarter post-close of the MiX Telematics Ltd.
business combination with prior year comparison numbers adjusted to reflect the pro forma financial performance of the combined businesses. FIRST QUARTER 2025 HIGHLIGHTS MANAGEMENT COMMENTARY "I'm incredibly proud of the traction we've gained and the significant progress our team has made following the close of the MiX Telematics transaction in early April", said CEO Steve Towe . "The successful execution of our integration strategy is already evident in our strong financial performance this quarter, with a 10% increase in combined revenue and a remarkable 50% rise in adjusted EBITDA compared to the prior year.
This reflects our ability to drive radical change without disrupting operations, setting a solid foundation for sustained growth." "Our strategic rationale behind the MiX transaction was clear: securing scale is critical to distinguishing our combined business from competitors and aligning with market leaders as the core telematics industry rapidly transforms. By leveraging our Unity ecosystem's advanced AI platforms and next-generation data capabilities, we are poised to thrive in a market that increasingly values innovation and agility.
" "We are also off to a strong start in achieving our cost synergy commitments, securing $8.7 million in annual savings within the first 90 days. These savings have provided us with the flexibility to make targeted investments in our go-to-market and customer success teams, leading to a 30% increase in our sales force in the coming months.
As we continue to work towards our target of $27 million in savings, we remain focused on scaling our operations and driving sustainable growth as we advance toward our goal of rule 40 performance over the next two years." FIRST QUARTER 2025 FINANCIAL RESULTS Total revenue for the quarter increased by 10.2% year-over-year to $75.
4 million , up from $68.4 million in the same period last year. This growth was largely driven by the continued success of the company's differentiated safety-centric product solutions, with product revenue increasing over 29% to $18.
7 million . Service revenue grew by 5% year-over-year to $56.7 million .
This performance highlights the strength of the Unity product strategy and the benefits of operating at scale globally, which helped mitigate the impact of previously disclosed churn in the legacy MiX customer base and macro and geopolitical pressures in certain regions, such as Israel . Combined gross margin of 52.6% includes a $3.
0 million non-cash expense for the amortization of acquisition-related intangibles from the MiX business combination. Excluding this expense, adjusted gross margin was 56.5%, compared to 57.
2% in the prior year, with the current period's performance partially affected by a higher proportion of product sales. Operating expenses for the quarter totaled $57.9 million , including $20.
4 million in one-time transaction, restructuring, and accelerated stock-based compensation costs. On an adjusted basis, excluding these one-time costs, operating expenses were $37.5 million and in line with the prior year.
The company reported a net loss attributable to common stockholders of $22.3 million , or $(0.21) per share, compared to $(0.
04) in the prior year. However, after adjusting for one-time expenses and the amortization of acquisition-related intangibles, adjusted earnings per share was $0.00 for the current year.
Adjusted EBITDA increased by 52.2% to $13.7 million from $9.
0 million in the previous year. This growth was driven by strong topline performance, resulting in a $3.5 million increase in gross margin after accounting for the impact of the amortization of acquisition-related intangibles.
The company ended the quarter with net debt of $108.2 million , comprising $31.4 million in cash and $139.
6 million in total debt. After accounting for unsettled transaction costs, pro forma net debt was $114 million versus $110 million at the MiX transaction close date. The $4 million increase in pro forma net debt was primarily driven by an increase in net working capital of $7.
0 million that is directly attributable to higher receivables following strong topline performance. FULL-YEAR 2025 FINANCIAL OUTLOOK The company is reiterating its updated guidance from the August 6th fireside chat. Full-year 2025 revenue is expected to exceed $300 million , an increase from the initial guidance of approximately $300 million .
Adjusted EBITDA is anticipated to exceed $60 million , inclusive of an incremental $5 million in secured exit run-rate cost synergies, compared to its initial guidance of around $60 million . INVESTOR CONFERENCE CALL As previously announced, Powerfleet will hold a conference call on Thursday, August 22, 2024 , at 8:30 a.m.
Eastern time ( 5:30 a.m. Pacific time ) to discuss results for the quarter ended June 30, 2024 .
Management will make prepared remarks followed by a question-and-answer session. Date : Thursday, August 22, 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 : 263975 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 and adjusted earnings per share. 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; TASE: PWFL) 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 . 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 transaction with MiX Telematics.
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 and MiX Telematics' businesses and the ability to recognize the anticipated synergies and benefits of the transaction with MiX Telematics; (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 transaction 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"), including our transition report on Form 10-KT for the period from January 1, 2024 to March 31, 2024 and our quarterly report on Form 10-Q for the quarter ended June 30, 2024 , 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 [email protected] Powerfleet Media Contact Andrea Hayton [email protected] +1 (610) 401-1999 POWERFLEET, INC.
AND SUBSIDIARIES Condensed Consolidated Statements of Operations (In thousands, except per share data) Three Months Ended June 30, 2023 2024 Pro Forma combined Consolidated Revenues: Products $ 14,523 $ 18,738 Services 53,920 56,692 Total revenues 68,443 75,430 Cost of revenues: Cost of products 10,931 12,751 Cost of services 18,381 23,031 Total cost of revenues 29,312 35,782 Gross profit 39,131 39,648 Operating expenses: Selling, general and administrative expenses 34,575 54,782 Research and development expenses 3,565 3,101 Total operating expenses 38,140 57,883 Gain/(loss) from operations 991 (18,235) Interest income 291 304 Interest expense (676) (2,691) Bargain purchase - Movingdots 283 — Other income, net (709) (624) Net gain/(loss) before income taxes 180 (21,246) Income tax expense (1,836) (1,053) Net loss before non-controlling interest (1,656) (22,299) Non-controlling interest (6) (13) Net loss (1,662) (22,312) Accretion of preferred stock (1,772) — Preferred stock dividend (1,128) (25) Net loss attributable to common stockholders $ (4,562) $ (22,337) Net loss per share attributable to common stockholders - basic and diluted $ (0.04) $ (0.21) Weighted average common shares outstanding - basic and diluted 106,390 107,136 POWERFLEET, INC.
AND SUBSIDIARIES Condensed Consolidated Balance Sheets (In thousands, except per share data) March 31, 2024 June 30, 2024 Pro Forma combined Consolidated ASSETS Current assets: Cash and cash equivalents $ 51,091 $ 30,242 Restricted cash 86,104 1,151 Accounts receivables 55,008 60,132 Inventory, net 25,800 25,832 Deferred costs - current 42 24 Prepaid expenses and other current assets 17,784 16,498 Total current assets 235,829 133,879 Fixed assets, net 48,306 49,705 Goodwill 121,713 300,775 Intangible assets, net 40,444 170,093 Right-of-use asset 11,222 10,722 Severance payable fund 3,796 3,760 Deferred tax asset 3,874 3,544 Other assets 19,090 12,435 Total assets $ 484,274 $ 684,913 LIABILITIES Current liabilities: Short-term bank debt and current maturities of long-term debt $ 22,109 $ 27,604 Accounts payable and accrued expenses 60,763 68,771 Deferred revenue - current 12,236 10,019 Lease liability - current 2,648 2,441 Contingent consideration — — Total current liabilities 97,756 108,835 Long-term debt - less current maturities 113,810 111,957 Deferred revenue - less current portion 4,892 4,825 Lease liability - less current portion 8,773 8,555 Accrued severance payable 4,597 4,533 Deferred tax liability 18,669 52,645 Other long-term liabilities 2,980 3,015 Total liabilities 251,477 294,365 Convertible redeemable preferred stock: 90,273 — STOCKHOLDERS' EQUITY Preferred stock — — Common stock 63,842 1,096 Additional paid-in capital 200,218 578,514 Accumulated deficit (78,516) (177,108) Accumulated other comprehensive loss (17,133) (567) Treasury stock (25,997) (11,518) Total stockholders' equity 142,414 390,417 Non-controlling interest 110 131 Total equity 142,524 390,548 Total liabilities, convertible redeemable preferred stock, and stockholders' equity $ 484,274 $ 684,913 POWERFLEET, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (In thousands) Three Months Ended June 30, 2023 2024 Pro Forma combined Consolidated Cash flows from operating activities Net loss $ (1,662) $ (22,312) Adjustments to reconcile net loss to cash used in operating activities: Non-controlling interest 6 13 Gain on bargain purchase (283) — Inventory reserve 443 257 Stock based compensation expense 1,092 5,929 Depreciation and amortization 6,334 10,335 Right-of-use assets, non-cash lease expense 660 760 Bad debts expense 1,416 1,993 Deferred income taxes 1,990 1,021 Shares issued for transaction bonuses — 891 Other non-cash items 1,760 481 Changes in operating assets and liabilities: Accounts receivables (4,008) (6,973) Inventories 984 (624) Prepaid expenses and other current assets (38) (1,518) Deferred costs (1,677) (1,789) Deferred revenue 58 (142) Accounts payable and accrued expenses (1,991) 4,993 Lease liabilities (650) (927) Accrued severance payable, net 88 (2) Net cash generated by/(used in) operating activities 4,522 (7,615) Cash flows from investing activities Acquisition, net of cash assumed — 27,531 Capitalized software development costs (2,352) (2,308) Capital expenditures (4,582) (5,586) Net cash (used in)/provided by investing activities (6,934) 19,637 Cash flows from financing activities Repayment of long-term debt (1,875) (493) Short-term bank debt, net 2,800 4,161 Purchase of treasury stock upon vesting of restricted stock (4) (2,836) Payment of preferred stock dividend and redemption of preferred stock (1,128) (90,298) Proceeds from exercise of stock options, net 36 — Cash paid on dividends to affiliates (1,331) (4) Net cash used in financing activities (1,502) (89,470) Effect of foreign exchange rate changes on cash and cash equivalents (1,930) (824) Net decrease in cash and cash equivalents, and restricted cash (5,844) (78,272) 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 $ 49,902 $ 31,393 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 48,830 30,242 Restricted cash 1,072 1,151 Cash, cash equivalents, and restricted cash, end of the period $ 49,902 $ 31,393 Supplemental disclosure of cash flow information: Cash paid for: Taxes $ 273 $ 41 Interest $ 356 $ 3,057 Noncash investing and financing activities: Common stock issued for transaction bonus $ — $ 9 POWERFLEET, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO ADJUSTED EBITDA FINANCIAL MEASURES (In thousands) Three Months Ended June 30, 2023 2024 Pro Forma combined Consolidated Net loss attributable to common stockholders $ (4,562) $ (22,337) Non-controlling interest 6 13 Preferred stock dividend and accretion 2,901 25 Interest expense 690 2,916 Other expense, net — 1 Income tax expense 1,836 1,053 Depreciation and amortization 6,334 10,335 Stock-based compensation 1,092 5,929 Foreign Currency Translation 368 108 Restructuring Related Expenses 448 1,198 Gain on Bargain purchase - Movingdots (283) — Net profit on fixed assets (4) — Contingent consideration remeasurement (24) — Acquisition related expenses 223 14,494 Adjusted EBITDA $ 9,025 $ 13,735 POWERFLEET, INC.
AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP NET INCOME (LOSS) FINANCIAL MEASURES (In thousands) Three Months Ended June 30, 2023 2024 Pro Forma combined Consolidated Net loss $ (1,662) $ (22,312) Incremental Intangible assets amortization expense as a result of MiX Telematics business combination — 2,995 Stock-based compensation (non-recurring/accelerated cost) — 4,693 Foreign currency translation 368 108 Income tax effect of net foreign exchange gains/(losses) 425 (747) Restructuring related expenses 448 1,198 Income tax effect of restructuring costs (5) (103) Acquisition related expenses 223 14,494 Non-GAAP net (loss)/income $ (203) $ 326 Weighted average shares outstanding 106,390 $ 107,136 Non-GAAP net (loss)/income per share - basic (0.002) $ 0.003 POWERFLEET, INC.
AND SUBSIDIARIES ADJUSTED GROSS PROFIT MARGINS (In thousands) Three Months Ended June 30, 2023 2024 Pro Forma combined Consolidated Revenues: Products $ 14,523 $ 18,738 Services 53,920 56,692 Total revenues 68,443 75,430 Cost of revenues: Cost of products 10,931 12,751 Cost of services 18,381 23,031 Total cost of revenues 29,312 35,782 Gross profit 39,131 39,648 Product Margin 24.7 % 32.0 % Service Margin 65.
9 % 59.4 % Total Gross profit margin 57.2 % 52.
6 % Incremental Intangible assets amortization expense as a result of MiX Telematics business combination — 2,995 Product Margin 24.7 % 32.0 % Service Margin 65.
9 % 64.7 % Adjusted Total Gross profit margin 57.2 % 56.
5 % POWERFLEET, INC. AND SUBSIDIARIES ADJUSTED OPERATING EXPENSES (In thousands) Three Months Ended June 30, 2023 2024 Pro Forma combined Consolidated Total operating expenses $ 38,140 $ 57,883 Adjusted for once-off costs Acquisition related expenses 223 14,494 Stock-based compensation (non-recurring/accelerated cost) — 4,693 Restructuring Related Expenses 448 1,198 $ 671 $ 20,385 Adjusted operating expenses $ 37,469 $ 37,498 POWERFLEET, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Operations (In thousands, except per share data) Year Ended March 31, 2023 2024 Pro Forma combined Consolidated Revenues: Products $ 70,397 $ 67,665 Services 210,072 219,239 Total revenues 280,469 286,904 Cost of revenues: Cost of products 51,143 48,316 Cost of services 71,486 79,636 Total cost of revenues 122,629 127,952 Gross profit 157,840 158,952 Operating expenses: Selling, general and administrative expenses 138,566 151,839 Research and development expenses 13,049 14,793 Total operating expenses 151,615 166,632 Gain/(loss) from operations 6,225 (7,680) Interest income 1,241 1,480 Interest expense (689) (4,521) Bargain purchase - Movingdots 7,234 1,800 Other income/(expense), net 1,622 (266) Net gain/(loss) before income taxes 15,633 (9,187) Income tax expense (9,749) (7,014) Net gain/(loss) before non-controlling interest 5,884 (16,201) Non-controlling interest 2 (50) Net gain/(loss) 5,886 (16,251) Accretion of preferred stock (6,210) (15,480) Preferred stock dividend (4,310) (4,514) Net loss attributable to common stockholders $ (4,634) $ (36,245) Net loss per share attributable to common stockholders - basic and diluted $ (0.
04) $ (0.34) Weighted average common shares outstanding - basic and diluted 106,073 106,894 POWERFLEET, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP NET INCOME (LOSS) FINANCIAL MEASURES (In thousands) Year Ended March 31, 2023 2024 Pro Forma combined Consolidated Net loss attributable to common stockholders $ (4,634) $ (36,245) Non-controlling interest (2) 49 Preferred stock dividend and accretion 10,520 19,995 Interest expense 947 3,192 Other expense, net 67 87 Income tax expense 9,749 7,014 Depreciation and amortization 24,072 29,548 Stock-based compensation 5,220 5,214 Foreign Currency Translation (3,191) 1,493 Restructuring Related Expenses 2,445 1,065 Gain on Bargain purchase - Movingdots (7,234) (1,800) Impairment of long-lived assets 104 139 Net profit on sale of fixed assets (25) (115) Non-recurring transitional service agreement costs — 482 Contingent consideration remeasurement (504) (1,299) Acquisition related expenses 1101 14,313 Adjusted EBITDA $ 38,635 $ 43,132 POWERFLEET, INC, AND MiX TELEMATICS Condensed Consolidated Statements of Operations (In thousands, except per share data) Three Months Ended June 30, 2023 Powerfleet Inc MiX Telematics Adjustments to align disclosure Pro Forma Consolidated Revenues: Products $ 11,084 $ 4,140 $ (701) $ 14,523 Services 21,008 32,211 701 53,920 Total revenues 32,092 36,351 — 68,443 Cost of revenues: Cost of products 8,550 3,025 (644) 10,931 Cost of services 7,524 10,213 644 18,381 Total cost of revenues 16,074 13,238 — 29,312 Gross profit 16,018 23,113 — 39,131 Operating expenses: Selling, general and administrative expenses 17,198 17,377 — 34,575 Research and development expenses 2,221 1,344 — 3,565 Total operating expenses 19,419 18,721 — 38,140 (Loss)/gain from operations (3,401) 4,392 — 991 Interest income 22 269 — 291 Interest expense (174) (502) — (676) Bargain purchase - Movingdots 283 — — 283 Other expense, net — (709) — (709) Net (loss)/gain before income taxes (3,270) 3,450 — 180 Income tax benefit/(expense) 6 (1,842) — (1,836) Net (loss)/profit before non-controlling interest (3,264) 1,608 — (1,656) Non-controlling interest (6) — — (6) Net (loss)/profit (3,270) 1,608 — (1,662) Accretion of preferred stock (1,772) — — (1,772) Preferred stock dividend (1,128) — — (1,128) Net (loss)/profit attributable to common stockholders $ (6,170) $ 1,608 $ — $ (4,562) Net (loss)/profit per share attributable to common stockholders - basic and diluted $ (0.
17) $ 0.02 $ (0.04) Weighted average common shares outstanding - basic and diluted 35,605 70,785 106,390 POWERFLEET, INC, AND MiX TELEMATICS Condensed Consolidated Balance Sheets (In thousands) 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 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: 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) Three Months Ended June 30, 2023 Powerfleet Inc.
MiX Telematics Pro Forma Combined Cash flows from operating activities Net loss $ (3,270) $ 1,608 $ (1,662) Adjustments to reconcile net loss to cash used in operating activities: $ — Non-controlling interest 6 — 6 Gain on bargain purchase (283) — (283) Inventory reserve 373 70 443 Stock based compensation expense 852 240 1,092 Depreciation and amortization 2,322 4,012 6,334 Right-of-use assets, non-cash lease expense 660 — 660 Bad debts expense 598 818 1,416 Deferred income taxes (24) 2,014 1,990 Other non-cash items 29 1,731 1,760 Changes in operating assets and liabilities: — Accounts receivables (668) (3,340) (4,008) Inventories 389 595 984 Prepaid expenses and other current assets 344 (382) (38) Deferred costs 185 (1,862) (1,677) Deferred revenue 58 — 58 Accounts payable and accrued expenses (1,466) (525) (1,991) Lease liabilities (650) — (650) Accrued severance payable, net 88 — 88 Net cash (used in)/provided by operating activities (457) 4,979 4,522 Cash flows from investing activities Capitalized software development costs (997) (1,355) (2,352) Capital expenditures (966) (3,616) (4,582) Net cash used in investing activities (1,963) (4,971) (6,934) Cash flows from financing activities Repayment of long-term debt (1,329) (546) (1,875) Short-term bank debt, net 2,737 63 2,800 Purchase of treasury stock upon vesting of restricted stock (4) — (4) Payment of preferred stock dividend and redemption of preferred stock (1,128) — (1,128) Proceeds from exercise of stock options, net 36 — 36 Cash paid on dividends to affiliates — (1,331) (1,331) Net cash from/(used in) financing activities 312 (1,814) (1,502) Effect of foreign exchange rate changes on cash and cash equivalents (943) (987) (1,930) Net decrease in cash and cash equivalents, and restricted cash (3,051) (2,793) (5,844) 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 $ 22,038 $ 27,864 $ 49,902 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 21,729 27,101 48,830 Restricted cash 309 763 1,072 Cash, cash equivalents, and restricted cash, end of the period $ 22,038 $ 27,864 $ 49,902 Supplemental disclosure of cash flow information: Cash paid for: Taxes $ 101 $ 172 $ 273 Interest $ 238 $ 118 $ 356 Noncash investing and financing activities: Common stock issued for transaction bonus $ — $ — $ — POWERFLEET INC, AND MiX TELEMATICS RECONCILIATION OF GAAP TO ADJUSTED EBITDA FINANCIAL MEASURES (In thousands) Three Months Ended June 30, 2023 Powerfleet Inc. MiX Telematics Pro Forma Combined Net loss attributable to common stockholders $ (6,170) $ 1,608 $ (4,562) Non-controlling interest 6 — 6 Preferred stock dividend and accretion 2,901 — 2,901 Interest expense, net 457 233 690 Income tax (benefit)/expense (6) 1,842 1,836 Depreciation and amortization 2,322 4,012 6,334 Stock-based compensation 852 240 1,092 Foreign Currency Translation (362) 730 368 Restructuring Related Expenses 425 23 448 Gain on Bargain purchase - Movingdots (283) — (283) Net profit on sale of fixed assets — (4) (4) Contingent consideration remeasurement — (24) (24) Acquisition related expenses 223 0 223 Adjusted EBITDA $ 365 $ 8,660 $ 9,025 POWERFLEET, INC. AND MIX TELEMATICS RECONCILIATION OF GAAP TO NON-GAAP NET INCOME (LOSS) FINANCIAL MEASURES (In thousands) Three Months Ended June 30, 2023 Powerfleet Inc.
MiX Telematics Pro Forma Combined Net (loss)/income $ (3,270) $ 1,608 $ (1,662) Foreign currency translation (362) 730 368 Income tax effect of net foreign exchange (losses)/gains — 425 425 Restructuring related expenses 425 23 448 Income tax effect of restructuring costs — (5) (5) Acquisition related expenses 223 — 223 Non-GAAP net (loss)/income $ (2,984) $ 2,781 $ (203) Weighted average shares outstanding 35,605 70,785 106,390 Non-GAAP net (loss)/income per share - basic $ (0.084) $ 0.039 $ (0.
002) POWERFLEET, INC, AND MiX TELEMATICS Condensed Consolidated Statements of Operations (In thousands, except per share data) Year Ended March 31, 2023 Powerfleet Inc MiX Telematics Adjustments to align disclosure Pro Forma Combined Revenues: Products $ 54,934 $ 18,337 $ (2,874) $ 70,397 Services 80,542 126,656 2,874 210,072 Total revenues 135,476 144,993 — 280,469 Cost of revenues: Cost of products 39,660 14,054 (2,571) 51,143 Cost of services 28,842 40,073 2,571 71,486 Total cost of revenues 68,502 54,127 — 122,629 Gross profit 66,974 90,866 — 157,840 Operating expenses: Selling, general and administrative expenses 64,856 73,710 — 138,566 Research and development expenses 7,458 5,591 — 13,049 Total operating expenses 72,314 79,301 — 151,615 (Loss)/income from operations (5,340) 11,565 — 6,225 Interest income 82 1,159 — 1,241 Interest expense 757 (1,446) — (689) Bargain purchase - Movingdots 7,234 — — 7,234 Other income, net (67) 1,689 — 1,622 Net income before income taxes 2,666 12,967 — 15,633 Income tax expense (1,304) (8,445) — (9,749) Net loss before non-controlling interest 1,362 4,522 — 5,884 Non-controlling interest 2 — — 2 Net income 1,364 4,522 — 5,886 Accretion of preferred stock (6,210) — — (6,210) Preferred stock dividend (4,310) — — (4,310) Net (loss)/income attributable to common stockholders $ (9,156) $ 4,522 $ — $ (4,634) Net (loss)/income per share attributable to common stockholders - basic and diluted $ (0.26) $ 0.06 $ — $ (0.
04) Weighted average common shares outstanding - basic and diluted 35,548 70,525 — 106,073 POWERFLEET, INC, AND MiX TELEMATICS Condensed Consolidated Statements of Operations (In thousands, except per share data) Year Ended March 31, 2024 Powerfleet Inc MiX Telematics Adjustments to align disclosure Pro Forma Combined Revenues: Products $ 49,313 $ 21,600 $ (3,248) $ 67,665 Services 85,311 130,680 3,248 219,239 Total revenues 134,624 152,280 — 286,904 Cost of revenues: Cost of products 36,916 14,628 (3,228) 48,316 Cost of services 31,003 45,405 3,228 79,636 Total cost of revenues 67,919 60,033 — 127,952 Gross profit 66,705 92,247 — 158,952 Operating expenses: Selling, general and administrative expenses 76,144 75,695 — 151,839 Research and development expenses 8,675 6,118 — 14,793 Total operating expenses 84,819 81,813 — 166,632 (Loss)/income from operations (18,114) 10,434 — (7,680) Interest income 338 1,142 — 1,480 Interest expense (2,174) (2,347) — (4,521) Bargain purchase - Movingdots 1,800 — — 1,800 Other income, net (87) (179) — (266) Net (loss)/income before income taxes (18,237) 9,050 — (9,187) Income tax expense (549) (6,465) — (7,014) Net (loss)/income before non-controlling interest (18,786) 2,585 — (16,201) Non-controlling interest (50) — — (50) Net (loss)/income (18,836) 2,585 — (16,251) Accretion of preferred stock (15,480) — — (15,480) Preferred stock dividend (4,514) — — (4,514) Net (loss)/income attributable to common stockholders $ (38,830) $ 2,585 $ — $ (36,245) Net (loss)/income per share attributable to common stockholders - basic and diluted $ (1.08) $ 0.04 $ (0.
34) Weighted average common shares outstanding - basic and diluted 35,813 71,081 106,894 POWERFLEET INC, AND MiX TELEMATICS RECONCILIATION OF GAAP TO ADJUSTED EBITDA FINANCIAL MEASURES (In thousands) Year Ended March 31, 2023 Powerfleet Inc. MiX Telematics Pro Forma Combined Net loss attributable to common stockholders $ (9,156) $ 4,522 $ (4,634) Non-controlling interest (2) — (2) Preferred stock dividend and accretion 10,520 — 10,520 Interest expense, net 660 287 947 Other expense, net 67 — 67 Income tax expense 1,304 8,445 9,749 Depreciation and amortization 8,463 15,609 24,072 Stock-based compensation 4,718 502 5,220 Foreign Currency Translation (2,081) (1,110) (3,191) Restructuring Related Expenses 1,423 1,022 2,445 Gain on Bargain purchase - Movingdots (7,234) — (7,234) Impairment of long-lived assets — 104 104 Net profit on sale of fixed assets — (25) (25) Contingent consideration remeasurement — (504) (504) Acquisition related expenses 317 784 1,101 Adjusted EBITDA $ 8,999 $ 29,636 $ 38,635 Year Ended March 31, 2024 Powerfleet Inc. MiX Telematics Pro Forma Combined Net loss attributable to common stockholders $ (38,830) $ 2,585 $ (36,245) Non-controlling interest 49 — 49 Preferred stock dividend and accretion 19,995 — 19,995 Interest expense, net 1,987 1,205 3,192 Other expense, net 87 — 87 Income tax expense 549 6,465 7,014 Depreciation and amortization 9,098 20,450 29,548 Stock-based compensation 4,104 1,110 5,214 Foreign Currency Translation (248) 1,741 1,493 Restructuring Related Expenses 1,035 30 1,065 Gain on Bargain purchase - Movingdots (1,800) — (1,800) Impairment of long-lived assets — 139 139 Net profit on sale of fixed assets — (115) (115) Non-recurring transitional service agreement costs — 482 482 Contingent consideration remeasurement — (1,299) (1,299) Acquisition related expenses 11218 3095 14,313 Adjusted EBITDA $ 7,244 $ 35,888 $ 43,132 View original content to download multimedia: https://www.
prnewswire.com/news-releases/powerfleet-reports-first-quarter-2025-financial-results-302228030.html SOURCE Powerfleet.
