MiX Telematics Limited (MIX) Misses Q4 EPS by 1c, Miss on Revenues; Offers FY19 Guidance

MiX Telematics Limited (NYSE: MIX) reported Q4 EPS of $0.19, $0.01 worse than the analyst estimate of $0.20. Revenue for the quarter came in at $31.6 million versus the consensus estimate of $36.74 million.

Fourth quarter fiscal 2018:

• Subscription revenue of R374 million ($31.6 million), an increase of 19.4% year over year, and up 4.1% compared to the third quarter of fiscal 2018, both on a constant currency basis
• Net subscriber additions of over 12,000 bringing the total base to over 676,000, up 9% year over year
• Operating profit of R74 million ($6.2 million), up 80% year over year
• Adjusted EBITDA of R130 million ($11.0 million), up 49% year over year
• Adjusted EBITDA margin of 28.7% 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%, Q3 2018 25.9%, Q4 2018 28.7%
• Net cash from operating activities of R121 million ($10.3 million)

Business Outlook

MiX Telematics has translated U.S. Dollar amounts in this Business Outlook paragraph from South African Rand at an exchange rate of R12.5391 per $1.00, which was the R/$ exchange rate reported by Oanda.com as at May 7, 2018.

Based on information as of today, May 10, 2018, the Company is issuing the following financial guidance for the full 2019 fiscal year:

• Subscription revenue - R1,596 million to R1,616 million ($127.3 million to $128.9 million), which would represent subscription revenue growth of 11.2% to 12.6% compared to fiscal 2018. On a constant currency basis, this would represent subscription revenuegrowth of 13.5% to 15.0%.
• Total revenue - R1,829 million to R1,859 million ($145.9 million to $148.3 million), which would represent revenue growth of 6.8% to 8.6% compared to fiscal 2018. On a constant currency basis, this would represent revenue growth of 9.1% to 10.9%.
• Adjusted EBITDA - R515 million to R535 million ($41.1 million to $42.7 million), which would represent Adjusted EBITDA growth of 16.6% to 21.1% compared to fiscal 2018.
• Adjusted earnings per diluted ordinary share of 29.6 to 31.7 South African cents based on a weighted average of 582 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 59.0 to 63.2 U.S. cents.

For the first quarter of fiscal 2019 the Company expects subscription revenue to be in the range of R379 million to R383 million ($30.2 million to $30.5 million) which would represent subscription revenue growth of 13.0% to 14.2% compared to the first quarter of fiscal 2018. On a constant currency basis, this would represent subscription revenue growth of 15.1% to 16.3%.

GUIDANCE:

MiX Telematics Limited sees FY2019 EPS of $0.59-$0.63. MiX Telematics Limited sees FY2019 revenue of $145.9-148.3 million.

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

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