Wrap Text
MiX Telematics reports first half of fiscal 2022 IFRS financial results
MiX TELEMATICS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1995/013858/06)
JSE share code: MIX ISIN: ZAE000125316
NYSE share code: MIXT
LEI Code: 529900S6HHR7CK7BU646
("MiX Telematics" or "the Company" or "the Group")
SHORT-FORM ANNOUNCEMENT: MiX TELEMATICS REPORTS FIRST HALF OF FISCAL 2022 IFRS FINANCIAL RESULTS
MiX Telematics changed from being a foreign private issuer to a U.S. domestic issuer, with effect from April 1, 2020.
As a result of the change in status, the Company is required to comply with and report its financial results in
accordance with accounting principles generally accepted in the United States ("GAAP") in U.S. Dollars from a Securities
and Exchange Commission ("SEC") perspective as well as International Financial Reporting Standards ("IFRS") in Rands from
a South African Companies Act 71 of 2008 and JSE Listings Requirements perspective. Therefore, this press release is being
distributed in South Africa and the Company is also releasing a press release in the United States in order to meet the
above requirements.
First Half of Fiscal 2022 Highlights:
- Subscription revenue of R891 million, representing 87% of revenue
- Net subscriber additions of 25,500, bringing the total base to over 770,000 subscribers
- Net income of R74 million
- Adjusted EBITDA of R255 million, representing a 24.9% Adjusted EBITDA margin
- Net cash and cash equivalents of R570 million at period end
"MiX is back on a growth trajectory, highlighted by our second consecutive quarter of year-over-year revenue expansion. In Q2,
we almost doubled the number of net subscriber adds compared to the first quarter, contributing to Annualized Recurring Revenue
growth of 5% since the beginning of the year. We are seeing positive trends in both our light- and premium- fleet portfolios,
and the business environment in many of our key end markets has strengthened," said Stefan Joselowitz, Chief Executive Officer
of MiX Telematics.
Joselowitz continued, "We are committed to investing in our growth initiatives while continuing to deliver high levels of
profitability. Our performance in the first half of the year positions the company well to achieve our financial and operational
objectives for fiscal 2022."
Financial performance for the first half of fiscal 2022
Subscription revenue: Subscription revenue decreased to R891.2 million, a decrease of 4.5% compared to R933.1 million
for the first half of fiscal 2021. Subscription revenue represented 87.3% of total revenue during the first half of
fiscal 2022. On a constant currency basis, subscription revenue increased by 3.1%, year over year. During the first
half of fiscal 2022, the Company's subscriber base grew by a net 25,500 subscribers.
Total revenue: Total revenue was R1,020.5 million, an increase of 0.1% compared to R1,019.4 million for the first half
of fiscal 2021. Total revenue increased by 8.5% on a constant currency basis, year over year. Hardware and other
revenue was R129.4 million, an increase of 49.9%, compared to R86.3 million for the first half of fiscal 2021.
Gross margin: Gross profit was R651.8 million, compared to R682.5 million for the first half of fiscal 2021. Gross profit
margin was 63.9%, compared to 67.0% for the first half of fiscal 2021. The decline in the gross profit margin was due to
the increase in hardware and other revenues which carry lower margins than subscription revenue. The subscription revenue
margin during the first half of fiscal year 2022 was 70.0%.
Operating margin: Operating profit was R122.7 million, compared to R127.7 million in the first half of fiscal 2021.
The operating margin was 12.0%, compared to 12.5% in the first half of fiscal 2021. Operating expenses represented
52.0% of revenue compared to 54.4% in the first half of fiscal 2021.
Adjusted EBITDA: Adjusted EBITDA was R254.6 million compared to R307.5 million for the first half of fiscal 2021.
Adjusted EBITDA margin was 24.9%, compared to 30.2% in the first half of fiscal 2021.
Profit for the period and earnings per share: Profit for the period was R74.2 million, compared to R98.2 million in the
first half of fiscal 2021. Profit for the period included a net foreign exchange loss of R0.2 million before tax, as
well as a R3.9 million deferred tax charge on a U.S. Dollar intercompany loan between MiX Telematics and MiX Telematics
Investments Proprietary Limited ("MiX Investments"), a wholly owned subsidiary of the Company. During the first half of
fiscal 2021, a net foreign exchange loss of R3.2 million was recognized while the Company incurred a R17.3 million
deferred tax credit on a U.S. Dollar intercompany loan between MiX Telematics and MiX Investments.
Earnings per diluted ordinary share were 13 South African cents, compared to 18 South African cents in the first half
of fiscal 2021. For the first half of fiscal 2022, the calculation was based on diluted weighted average ordinary shares
in issue of 565.5 million, compared to 558.2 million diluted weighted average ordinary shares in issue during the first
half of fiscal 2021.
The Company's effective tax rate was 36.1%, compared to 16.8% for the first half of fiscal 2021. Ignoring the impact
of net foreign exchange gains and losses net of tax and share-based compensation costs related to performance share
awards, net of tax, the effective tax rate, which is used in calculating adjusted earnings, was 32.1% compared to
30.0% in the first half of fiscal 2021.
Adjusted earnings for the period and adjusted earnings per share: Adjusted earnings for the period were R78.9 million,
compared to R86.9 million in the first half of fiscal 2021. Adjusted earnings per diluted ordinary share were 14 South
African cents, compared to 16 South African cents for the first half of fiscal 2021.
Cash and cash equivalents and Cash flow: At September 30, 2021, the Company had R570.1 million of net cash and cash
equivalents, compared to R653.6 million at March 31, 2021.
The Company generated R170.6 million in net cash from operating activities for the first half of fiscal 2022 and
invested R203.1 million in capital expenditures during the period (including investments in in-vehicle devices of
R140.1 million), leading to a negative free cash flow of R32.5 million, compared to free cash flow of R287.3 million
for the first half of fiscal 2021. Capital expenditures in the first half of fiscal 2021 were R91.3 million and
included in-vehicle devices of R45.2 million.
The Company utilized R51.2 million in financing activities, compared to R36.9 million utilized during the first half
of fiscal 2021. The cash utilized in financing activities during the first half of fiscal 2022 mainly consisted of
dividends paid of R44.0 million and the payment of lease liabilities of R7.2 million. The cash utilized during the
first half of fiscal 2021 consisted primarily of dividends paid of R43.7 million and the payment of lease liabilities
of R7.6 million, offset by the proceeds from the issuance of ordinary shares related to the exercise of share options
of R14.4 million.
Business Outlook
Due to the uncertainty surrounding the level of business disruption as a result of the spread of COVID-19, the Company
has suspended its practice of issuing financial guidance and as a consequence no guidance has been issued for the full
2022 fiscal year.
SUMMARIZED CONSOLIDATED INCOME STATEMENT
Six months ended Six months ended
September 30, September 30,
2021 2020
Figures are in thousands unless otherwise stated
Revenue 1,020,517 1,019,408
Operating profit 122,689 127,698
Adjusted EBITDA 254,581 307,547
Profit for the period attributable to owners of the parent 74,195 98,207
Adjusted earnings attributable to owners of the parent 1 78,891 86,943
Headline earnings attributable to owners of the parent 74,037 98,434
Basic earnings per share - (R) 0.13 0.18
Basic adjusted earnings per share - (R) 1 0.14 0.16
Basic headline earnings per share - (R) 0.13 0.18
Dividends per share - (R) 0.08 0.08
Ordinary shares ('000) 2
-in issue at September 30 552,618 551,064
-weighted average 552,124 547,569
-diluted weighted average 565,465 558,216
1 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 and share based compensation costs related to performance
share awards net of tax, divided by the weighted average number of ordinary shares in issue during the period.
2 September 30, 2021 figure excludes 53,816,750 (September 30, 2020: 53,816,750) treasury shares held by MiX
Investments, a wholly owned subsidiary of the Group.
SUMMARIZED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
September 30, March 31,
2021 2021
Figures are in thousands unless otherwise stated
ASSETS
Non-current assets 1,563,732 1,470,120
Current assets 1,124,574 1,149,456
Total assets 2,688,307 2,619,576
EQUITY AND LIABILITIES
Equity 1,935,258 1,892,178
Non-current liabilities 234,396 239,606
Current liabilities 518,653 487,792
Total equity and liabilities 2,688,307 2,619,576
Net cash 570,093 653,571
Cash and cash equivalents 602,438 678,546
Net asset value per share (R) 3.50 3.43
Dividend declared
The Board of Directors declared in respect of the second quarter of fiscal year 2022, which ended on September 30, 2021,
a dividend of 4 South African cents per ordinary share to be paid on Monday, November 22, 2021.
The details with respect to the dividends declared for ordinary shareholders are as follows:
Last day to trade cum dividend Tuesday, November 16, 2021
Securities trade ex dividend Wednesday, November 17, 2021
Record date Friday, November 19, 2021
Payment date Monday, November 22, 2021
Share certificates may not be dematerialized or rematerialized between Wednesday, November 17, 2021 and Friday,
November 19, 2021, 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 4 South African cents per ordinary share;
- the net local dividend amount is 3.2 South African cents per ordinary share for shareholders liable to pay dividends
tax;
- the issued ordinary share capital of MiX Telematics is 606,434,616 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) Thursday, November 18, 2021
Record date Friday, November 19, 2021
Approximate date of currency conversion Monday, November 22, 2021
Approximate dividend payment date Thursday, December 2, 2021
Short-form announcement
This short-form announcement is the responsibility of the Board of Directors and the contents have been approved by the
Board of Directors on October 26, 2021. This short-form announcement is a summary of the full announcement released on
SENS and published on the Group's website (https://www.mixtelematics.com/investor-relations/sens) on October 28, 2021.
This short-form announcement does not contain the complete or full announcement details. Any investment decision by
investors and/or shareholders should be based on consideration of the full announcement. The short-form announcement has
not been audited or reviewed by the Group's external auditors. A copy of the full announcement may be requested from the
Company Secretary at CelesteS@statucor.co.za or the sponsor, Java Capital at sponsor@javacapital.co.za. Any investment
decision should be based on the full announcement available on the Company's website.
The full announcement is available at https://senspdf.jse.co.za/documents/2021/jse/isse/MIX/FY-Q22021.pdf.
Directors
RA Frew* (Chairman), SB Joselowitz (CEO), SR Bruyns*# (Lead Independent Director), JR Granara (CFO), F Futwa*#,
IV Jacobs*#, F Roji Maplanka*#, CWR Tasker
* Non-executive
# Independent
Company secretary
Statucor Proprietary Limited
Auditors
Deloitte & Touche
Registered office
Matrix Corner, Howick Close, Waterfall Park, Midrand
Sponsor
Java Capital
October 28, 2021
Date: 28-10-2021 12:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
