MiX Telematics (MIXT) Reports Q1 EPS of $0.11, Miss on Revenues; Offeres FY Revenue Outlook

MiX Telematics (NYSE: MIXT) reported Q1 EPS of $0.11. Revenue for the quarter came in at $25.7 million versus the consensus estimate of $29.26 million.

Business Outlook

MiX Telematics has translated U.S. Dollar amounts in this Business Outlook paragraph from South African Rand at the exchange rate of R13.1130 per $1.00, which was the R/$ exchange rate reported by Oanda.com as of July 31, 2017.

Based on information as of today, August 3, 2017, the Company is issuing the following financial guidance for the full 2018 fiscal year:

• Subscription revenue - R1,401 million to R1,421 million ($106.8 million to $108.4 million), which would represent subscription revenue growth of 13.0% to 14.6% compared to fiscal year 2017.
• Total revenue - R1,632 million to R1,662 million ($124.5 million to $126.7 million), which would represent revenue growth of 6.0% to 7.9% compared to fiscal year 2017.
• Adjusted EBITDA - R375 million to R395 million ($28.6 million to $30.1 million), which would represent an increase in Adjusted EBITDA of 24.3% to 31.0% compared to fiscal year 2017.
• Adjusted earnings per diluted ordinary share of 19.7 to 21.8 South African cents based on 567 million diluted ordinary shares in issue, and based on an effective tax rate of 28% to 31%. At a ratio of 25 ordinary shares to one ADS, this equates to adjusted earnings per diluted ADS of 38 to 42 U.S. cents.

For the second quarter of fiscal year 2018 the Company expects subscription revenue to be in the range of R339 million to R344 million ($25.9 million to $26.2 million) which would represent subscription revenue growth of 12.5% to 14.2% compared to the second quarter of fiscal year 2017.

The key assumptions used in deriving the forecast are as follows:

• Growth in subscription revenue and subscribers 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 R13.8000 per $1.00.

GUIDANCE:

MiX Telematics sees FY2018 EPS of $0.38-$0.42. MiX Telematics sees FY2018 revenue of $124.5-126.7 million, versus the consensus of $125.46 million.

First Quarter Highlights:

• Subscription revenue of R335 million ($25.7 million), up over 15% on a constant currency basis
• Operating profit of R43 million ($3.3 million), up 88% year over year
• Adjusted EBITDA of R94 million ($7.2 million), up 55% year over year
• Adjusted EBITDA margin of 23.1% continues the quarterly improvement trend that was observed throughout the prior year. 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%
• Total subscriber base of 625,600, up 8% year over year
• Company raises quarterly dividend to 2.5 South African cents per ordinary share (4.8 U.S. cents per American Depositary Share)
• Company raises full year guidance for Adjusted EBITDA to R375 million to R395 million ($28.6 million to $30.1 million) and Adjusted earnings per diluted share to 19.7 to 21.8 South African cents. At a ratio of 25 ordinary shares to one ADS, this equates to adjusted earnings per diluted ADS of 38 to 42 U.S. cents. Reiterates guidance for subscription revenue and total revenue, for full fiscal 2018 year. Refer to the Business Outlook section below.

For earnings history and earnings-related data on MiX Telematics (MIXT) click here.

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