Wrap Text
Results for the quarter and year ended March 31, 2014
MiX Telematics Limited
Results for the quarter and year ended March 31, 2014
Incorporated in the Republic of South Africa
Registration number 1995/013858/06
JSE code: MIX NYSE code: MIXT ISIN: ZAE000125316
(“Mix Telematics” or “the Company” or “the Group”)
MiX Telematics announces Financial Results for Fourth Quarter and full Fiscal Year 2014
References in this announcement to “R” are to South African rand and references to “U.S. dollars” and “$” are to
United States dollars. Unless otherwise stated MiX Telematics has translated U.S. dollar amounts from South African rand at
the exchange rate of R10.5953 per $1.00, which was the R/$ exchange rate reported by the South African Reserve Bank as of
March 31, 2014.
Fourth Quarter and Fiscal Year 2014 Highlights:
• Fourth quarter subscription revenue of R232.6 million ($22.0 million) grew 24.9% year on year
• Fourth quarter Adjusted EBITDA of R84.6 million ($8.0 million), representing a 24.3% Adjusted EBITDA margin
• Fiscal Year subscription revenue of R853.7 million ($80.6 million) grew 24.3%
• Fiscal Year Adjusted EBITDA of R282.2 million ($26.6 million), representing a 22.2% Adjusted EBITDA margin
• Total vehicles under subscription increased by 25.3% in the full fiscal year 2014, bringing the total to over
450,000 subscribers at March 31, 2014
• In the second quarter of fiscal year 2014, the Company raised R649.9 million ($65.5 million) in proceeds before
expenses through the initial public offering of ADSs on the NYSE
Midrand, South Africa, June 5, 2014 - MiX Telematics Limited (NYSE: MIXT, JSE: MIX), a leading global provider of
fleet and mobile asset management solutions delivered as Software-as-a-Service (SaaS), today announced financial results for
its fourth quarter and full fiscal year 2014 which ended March 31, 2014.
"We are pleased to report strong fourth quarter and year end results, which were highlighted by 25% year over year
growth in subscribers and better than expected subscription revenue. We continued to see a shift to fully-bundled deals as
enterprise customers increasingly opt for the pure subscription structure rather than pay for the hardware up front,”
said Stefan Joselowitz, Chief Executive Officer of MiX Telematics.
Mr Joselowitz continued, “It was an exciting year for MiX with the listing on the NYSE being one of the highlights.
The increased visibility this yielded to our brand drove increased RFP volume and importantly aided in our success in
attracting key new sales hires particularly in the Americas. We continue to believe MiX Telematics is well positioned to be
a prime beneficiary of telematics market growth as we have already achieved meaningful scale, built a global
distribution network, and offer state-of-the-art solutions that yield a powerful return on investment for our customers.”
Financial Performance for the three months ended March 31, 2014
Revenue: Total revenue was R348.4 million ($32.9 million), an increase of 12.9% compared to R308.5 million ($29.1
million) for the fourth quarter of fiscal year 2013. Subscription revenue was R232.6 million ($22.0 million), an increase of
24.9% compared with R186.3 million ($17.6 million) for the fourth quarter of fiscal year 2013. Growth in subscription
revenue was driven primarily by an increase of over 90,800 vehicles under subscription, which resulted in an increase of
25.3% in total vehicles under subscription from March 2013 to March 2014. Hardware and other revenue was R115.8 million
($10.9 million), a decrease of 5.2% compared to R122.2 million ($11.5 million) for the fourth quarter of fiscal year
2013.
Gross profit margin: Gross profit was R241.0 million ($22.7 million) compared to R207.0 million ($19.5 million) for
the fourth quarter of fiscal year 2013. Gross profit margin was 69.2%, up from 67.1% for the fourth quarter of fiscal year
2013. In the fourth quarter of fiscal 2014, subscription revenue, which generates a higher gross profit margin than
hardware and other revenue, contributed 66.8% of total revenue compared to 60.4% in the fourth quarter of fiscal 2013. The
margin was also positively impacted by a R4.4 million ($0.4 million) reduction in the amortization expense after the
Company reassessed the useful life of certain development costs in March 2014.
Operating profit margin: Operating profit was R61.1 million ($5.8 million), representing an operating margin of 17.5%,
compared to R64.2 million ($6.1 million) for the fourth quarter of fiscal year 2013 when the operating margin was
20.8%. The Company continued its strategy of investing in sales and marketing and as a result sales and marketing costs for
the fourth quarter of fiscal 2014 increased by R11.5 million ($1.1 million) from the fourth quarter of fiscal 2013.
Adjusted EBITDA: Adjusted EBITDA, a non-IFRS measure, was R84.6 million ($8.0 million) compared to R91.7 million ($8.7
million) for the fourth quarter of fiscal year 2013. Adjusted EBITDA margin, also a non-IFRS measure, for the fourth
quarter of fiscal year 2014 was 24.3%, compared to a 29.7% Adjusted EBITDA margin in the fourth quarter of fiscal year
2013.
Profit for the period and earnings per share: Profit for the fourth quarter was R50.4 million ($4.8 million), compared
to R45.6 million ($4.3 million) in the fourth quarter of fiscal year 2013. Earnings per diluted ordinary share were 6
South African cents, compared to 7 South African cents in the fourth quarter of fiscal year 2013. For the fourth quarter
of 2014, the calculation was based on diluted weighted average ordinary shares in issue of 808.9 million compared to
680.4 million diluted weighted average ordinary shares in issue during the fourth quarter of fiscal 2013.
The Company's effective tax rate for the quarter was 25.6% in comparison to 27.8% in the fourth quarter of fiscal
2013.
On a U.S. dollar basis, and using the March 31, 2014 exchange rate of 10.5953 rand per U.S. dollar, and at a ratio of
25 ordinary shares to one ADS, profit for the period was $4.8 million, or 15 U.S. cents per diluted ADS compared to 16
U.S. cents per diluted ADS in the fourth quarter of fiscal year 2013.
Adjusted profit for the period and adjusted earnings per share: Adjusted profit for the period, a non-IFRS measure,
was R46.6 million ($4.4 million), compared to R46.5 million ($4.4 million) in the 2013 fiscal year and excludes a net
foreign exchange gain of R5.4 million ($0.5 million). The net foreign exchange gain included R6.1 million ($0.6 million)
relating to a foreign exchange gain on the IPO proceeds which are maintained in U.S dollars and are therefore sensitive to
R:$ exchange rate movements. Adjusted earnings per diluted ordinary share, also a non-IFRS measure, were 6 South African
cents, compared to 7 South African cents in the fourth quarter of fiscal year 2013.
On a U.S. dollar basis, and using the March 31, 2014 exchange rate of 10.5953 rand per U.S. dollar, and at a ratio of
25 ordinary shares to one ADS, adjusted profit for the period was $4.4 million, or 14 U.S. cents per diluted ADS
compared to $4.4 million, or 16 U.S. cents per diluted ADS in the fourth quarter of fiscal year 2013.
An explanation of non-IFRS measures used in this release, including Adjusted profit for the period, Adjusted earnings
per share, Adjusted EBITDA and Adjusted EBITDA margin, and a reconciliation of such measures to the most directly
comparable IFRS measures for the three months and year ended March 31, 2014 and 2013 are provided in the financial tables that
accompany this release.
Statement of Financial Position and Cash Flow: At March 31, 2014, the Company had R830.5 million ($78.4 million) of
cash and cash equivalents, an increase from R792.6 million ($74.8 million) in the third quarter of fiscal year 2014. The
Company generated R82.7 million ($7.8 million) in net cash from operating activities for the three months ended March 31,
2014 and invested R31.9 million ($3.0 million) in capital expenditures during the quarter, leading to free cash flow of
R50.8 million ($4.8 million) for the fourth quarter of fiscal year 2014, compared with free cash flow of R66.2 million
($6.3 million) for the fourth quarter of fiscal year 2013. Free cash flow is determined as net cash generated from
operating activities less capital expenditure per investing activities.
Financial Performance for the Fiscal Year ended March 31, 2014
Revenue: Total revenue for the full fiscal year 2014 was R1,271.7 million ($120.0 million), an increase of 8.6%
compared to R1,171.5 million ($110.6 million) for the full fiscal year 2013. Subscription revenue increased to R853.7 million
($80.6 million), up 24.3% from R686.7 million ($64.8 million) for fiscal year 2013. Subscription revenue growth was
driven primarily by the increase in vehicles under subscription since March 2013. Hardware and other revenue was R417.9
million ($39.4 million), compared to R484.8 million ($45.8 million) for fiscal year 2013. The decrease in hardware and other
revenue is primarily attributable to a combination of factors which include a significant increase in the number of
fully-bundled subscriptions in fiscal 2014 compared to fiscal 2013 as well as the ongoing decline in hardware prices.
Hardware and other revenue was also elevated in fiscal year 2013 as a result of upfront hardware purchases associated with
two major contracts in the Americas fleet solutions segment. Fiscal 2013 revenue also included cellular connection
incentives of R10.7 million. In July 2012, the Company opted to forgo receiving cellular connection incentives in favor of
lower monthly data fees.
Gross profit margin: Gross profit for fiscal year 2014 was R849.6 million ($80.2 million), an increase compared to
R746.9 million ($70.5 million) for fiscal year 2013. Gross profit margin was 66.8%, up from 63.8% for fiscal year 2013. In
fiscal 2014, subscription revenue, which generates a higher gross profit margin than hardware and other revenue,
contributed 67.1% of total revenue compared to 58.6% in fiscal 2013.
Operating profit margin: Operating profit for fiscal year 2014 was R171.5 million ($16.2 million), compared to R185.9
million ($17.5 million) posted in the 2013 fiscal year. The operating margin for fiscal year 2014 was 13.5%, compared to
the 15.9% posted in fiscal year 2013. This was primarily due to the impact of the expected losses incurred by the
start-up operation in Brazil. In addition, operating costs increased as a result of investments in headcount and sales and
marketing in order to support the Company's growth initiatives.
Adjusted EBITDA: Adjusted EBITDA was R282.2 million ($26.6 million) compared to R290.8 million ($27.4 million) for
fiscal 2013. The Adjusted EBITDA margin for fiscal 2014 was 22.2%, compared with the 24.8% posted in fiscal 2013.
Profit for the year and earnings per share: Profit for the fiscal year was R151.6 million ($14.3 million), compared to
R128.5 million ($12.1 million) in the 2013 fiscal year. Earnings per diluted ordinary share were 20 South African
cents, compared to 19 South African cents in fiscal year 2013. For fiscal 2014, the calculation was based on diluted weighted
average ordinary shares in issue of 768.3 million compared to 674.8 million diluted weighted average ordinary shares in
issue during fiscal 2013.
The Company's effective tax rate was 28.6% in both fiscal 2013 and fiscal 2014.
Adjusted profit for the year and adjusted earnings per share: Adjusted profit for the year, a non-IFRS measure, was
R123.9 million ($11.7 million), compared to R132.1 million ($12.5 million) in the 2013 fiscal year and excludes a net
foreign exchange gain of R38.1 million ($3.6 million). The net foreign exchange gain included R42.3 million ($4.0 million)
relating to a foreign exchange gain on the IPO proceeds which are maintained in U.S dollars and are therefore sensitive
to R:$ exchange rate movements. Adjusted earnings per diluted ordinary share were 16 South African cents, compared to 20
South African cents in fiscal year 2013.
On a U.S. dollar basis, and using the March 31, 2014 exchange rate of 10.5953 rand per U.S. dollar, and at a ratio of
25 ordinary shares to one ADS, adjusted profit for the 2014 fiscal year was $11.7 million, or 38 U.S. cents per diluted
ADS, compared to $12.5 million, or 46 U.S. cents per diluted ADS in fiscal year 2013.
Cash Flow: The Company generated R203.8 million ($19.2 million) in net cash from operating activities for the fiscal
year ended March 31, 2014 and invested R128.7 million ($12.2 million) in capital expenditures during the year, leading to
free cash flow of R75.0 million ($7.1 million) for fiscal 2014, compared with free cash flow of R117.8 million ($11.1
million) for fiscal 2013. The decrease in free cash flow is primarily attributable to an increase in capital expenditure
of R36.8 million ($3.5 million) in fiscal year 2014. As a result of the significant increase in the number of bundled
deals during fiscal 2014, additions to in-vehicle devices increased by R25.1 million ($2.4 million) in comparison to
fiscal 2013.
Segment Commentary for Fiscal Year ended March 31, 2014
Segment Revenue % Adjusted % Adjusted Comments
Fiscal change EBITDA change EBITDA
2014 on prior Fiscal on prior Margin
R'000 year 2014 year Fiscal
R'000 2014
Africa consumer solutions 355,084 3.3% 105,162 21.0% 29.6% Vehicles under subscription grew
by 30.2% during fiscal 2014.
The segment delivered strong Adjusted
EBITDA growth of 21.0% and a margin of
29.6% for the year. Revenue grew a modest
3.3% due to our decision to forgo
connection incentive bonuses from our
cellular network provider, from July 2012,
in favor of lower data costs. Fiscal 2013
revenue included R10.7 million ($1.0 million)
of connection incentive revenue.
Africa fleet solutions 325,400 15.4% 95,209 0.7% 29.3% The segment continued to show top line
growth as vehicles under subscription
increased by 29.3% in fiscal 2014.While
fleets are now supplementing their FM
systems with lower ARPU Beam-e installations,
subscription revenue grew by 22.3%. Adjusted
EBITDA margin was 29.3% even as the segment
invested in sales and marketing, headcount
and infrastructure.
Europe fleet solutions 160,639 25.4% 7,285 - 4.5% Total revenue growth was approximately 5%
on a constant currency basis, while
subscription revenue grew by about 11% on a
constant currency basis. The European business
undertook a restructuring in the first quarter
to streamline its business and ensure renewed
focus on our core services and growth
opportunities going forward. The segment reported
Adjusted EBITDA of R7.3 million in the current
year compared to an Adjusted EBITDA loss of
R4.6 million in the prior year.
Americas fleet solutions 134,213 (13.8%) (6,550) - (4.9%) We believe the Americas premium fleet market
is highly under-penetrated and are investing in
our sales and distribution capacity in the region.
In fiscal 2013, hardware revenue was elevated as
a result of upfront hardware purchases associated
with two major contracts. Vehicles under
subscription grew by 16.1% during fiscal 2014,
driving subscription revenue up by approximately
18% on a constant currency basis.
Middle East and Australasia
fleet solutions 306,450 15.4% 21,834 (33.7%) 7.1% While total revenue growth was 15.4%, the
segment's total vehicles under subscription
increased by 32.5% resulting in over 45%
subscription revenue growth (on a constant
currency basis). Adjusted EBITDA declined by
33.7% as the segment invested in the headcount
and infrastructure necessary to support continued
growth in the region.
Brazil fleet solutions 11,901 - (11,621) (463.6%) (97.6%) This was the Brazil fleet operation's first
full year of operations and despite reporting
modest revenue of R11.9 million ($1.1 million)
the region posted a planned Adjusted EBITDA
loss.
International CSO fleet
solutions and development 358,538 8.4% 102,778 8.4% 28.7% International CSO is a central services
organization that wholesales our products
and services to our regional operations and
distributors who in turn, interface with our
end-customers. International CSO benefited
from the subscriber growth throughout the Company
and reported growth at both the revenue and
Adjusted EBITDA level.
Business Outlook
MiX Telematics has translated U.S. dollar amounts in this Business Outlook paragraph from South African rand at the
exchange rate of R10.6638 per $1.00, which was the R/$ exchange rate reported by the South African Reserve Bank as of
June 3, 2014.
Based on information as of today, June 5, 2014, the Company is issuing the following financial guidance for the full
2015 fiscal year:
• Revenue - R1,385 million to R1,410 million ($129.9 million to $132.2 million), which would represent revenue growth
of 8.9% to 10.9% compared to fiscal year 2014.
• Subscription revenue - R1,020 million to R1,030 million ($95.7 million to $96.6 million), which would represent
subscription revenue growth of 19.5% to 20.6% compared to fiscal year 2014.
• Adjusted EBITDA - R295 million to R305 million ($27.7 million to $28.6 million), which would represent Adjusted
EBITDA growth of 4.5% to 8.1% compared to fiscal year 2014.
• Adjusted earnings per diluted ordinary share of 17 to 18 South African cents based on 810 million diluted ordinary
shares in issue, and based on an effective tax rate of 27% to 31%. At a ratio of 25 ordinary shares to one ADS, this
equates to adjusted earnings per diluted ADS of 40 to 42 U.S. cents.
For the first quarter of fiscal year 2015, the Company expects subscription revenue to be in the range of R237 million
to R240 million ($22.2 million to $22.5 million) which would represent subscription revenue growth of 22.0% to 23.6%
compared to the first quarter of fiscal year 2014.
The key assumptions used in deriving the forecast are as follows:
• Growth in subscription revenue and vehicles under subscription are based on expected growth rates related to market
conditions and takes into account growth rates achieved previously.
• Costs have been increased to take into account the Company's strategy of investing in sales and marketing and
development and also include costs necessary to operate as a U.S.-listed company.
The forecast is the responsibility of the board of directors and has not been reviewed or reported on by the Company’s
external auditors. The Company’s policy is to give guidance on a quarterly basis, if necessary, and does not update
guidance between quarters.
The information disclosed in this “Business Outlook” paragraph complies with the disclosure requirements in terms of
paragraph 8.38 of the JSE Listings Requirements which deals with profit forecasts.
Quarterly Reporting Policy in respect of JSE Listing Requirements
Following the listing of the Company’s ADSs on the New York Stock Exchange, the Company has adopted a quarterly
reporting policy. As a result of such quarterly reporting the Company is, in terms of paragraph 3.4(b)(ix) of the JSE Listings
Requirements, not required to publish trading statements in terms of paragraph 3.4(b)(i) to (viii) of the JSE Listings
Requirements.
Conference Call Information
MiX Telematics management will also host a conference call and audio webcast at 8:00 a.m. (Eastern Daylight Time) and
2:00 p.m. (South African Time) on June 5, 2014 to discuss the Company's financial results and current business outlook.
• The live webcast of the call will be available at the “Investor Information” page of the Company’s website,
http://investor.mixtelematics.com.
• To access the call, dial 1-888-378-4350 (within the United States) or 0 800 980 989 (within South Africa) or
1-719-457-2639 (outside of the United States and South Africa). The conference ID is 3228218.
• A replay of this conference call will be available at 11:00 a.m. (Eastern Daylight Time) and 5:00 p.m. (South
African Time) for one week at 1-877-870-5176 (within the United States) or 1-858-384-5517 (within South Africa or outside of
the United States). The replay conference ID is 3228218.
•A replay of the webcast will also be available for a limited time at http://investor.mixtelematics.com.
About MiX Telematics
MiX Telematics is a leading global provider of fleet and mobile asset management solutions delivered as SaaS to
customers in over 120 countries. The Company’s products and services provide enterprise fleets, small fleets and consumers
with solutions for safety, efficiency, risk and security. MiX Telematics was founded in 1996 and has offices in South
Africa, the United Kingdom, the United States, Uganda, Brazil, Australia and the United Arab Emirates as well as a network of
more than 130 fleet partners worldwide. MiX Telematics shares’ are publicly traded on the Johannesburg Stock Exchange
(JSE: MIX) and MiX Telematics American Depositary Shares ("ADSs") are listed on the New York Stock Exchange (NYSE: MIXT).
For more information visit www.mixtelematics.com.
Forward-Looking Statements
This press release includes certain “forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995, including without limitation, statements concerning our financial guidance for the first quarter
of fiscal year 2015 and the full year of fiscal year 2015, our position to execute on our growth strategy, and our
ability to expand our leadership position. These forward-looking statements include, but are not limited to, plans,
objectives, expectations and intentions and other statements contained in this press release that are not historical facts and
statements identified by words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" or
words of similar meaning. These forward-looking statements reflect our current views about our plans, intentions,
expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have
made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or
suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations
or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in
the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control
including, without limitation, the Company's ability to attract, sell to and retain customers; the Company's anticipated growth
strategies, including its ability to increase sales to existing customers, the introduction of new solutions and
international expansion; the Company's ability to adapt to rapid technological change in its industry; competition from
industry consolidation; loss of key personnel or the Company's failure to attract, train and retain other highly qualified
personnel; the Company's ability to integrate any businesses it acquires; the Company's dependence on its network of
dealers and distributors to sell its solutions; the Company's dependence on key suppliers and vendors to manufacture its
hardware; businesses may not continue to adopt fleet management solutions; the Company's future business development, results
of operations and financial condition; expected changes in the Company's profitability and certain cost or expense
items as a percentage of its revenue; changes in the practices of insurance companies; the impact of laws and regulations
relating to the Internet and data privacy; the Company's ability to protect its intellectual property and proprietary
technologies and address any infringement claims; significant disruption in service on, or security breaches of, the
Company's websites or computer systems; the Company's dependence on third-party technology; fluctuations in the value of the
South African rand; economic, social, political, labour and other conditions and developments in South Africa and
globally; the Company's ability to issue securities and access the capital markets in the future; and other risks set forth
under the caption “Risk Factors” in the Company’s final prospectus related to its initial public offering filed pursuant to
Rule 424(b) under the Securities Act of 1933, as amended, with the Securities and Exchange Commission (the "SEC") on
August 12, 2013, as updated by the Company's filings that it makes with the SEC. The Company assumes no obligation to
update any forward-looking statements contained in this press release as a result of new information, future events or
otherwise.
Non-IFRS financial measures
Adjusted EBITDA
To provide investors with additional information regarding the Company's financial results, it has disclosed within
this press release Adjusted EBITDA, which is a non-IFRS financial measure. Adjusted EBITDA is defined as the profit for
the period before income taxes, net interest income/(expense), depreciation of property, plant and equipment including
capitalized customer in-vehicle devices, amortization of intangible assets including capitalized in-house development
costs, share-based compensation costs, transaction costs arising from the acquisition of a business, restructuring costs,
profits/(losses) on the disposal or impairments of assets and subsidiaries, certain non-recurring initial public offering
costs, unrealized foreign exchange gains/(losses) and foreign exchange gains/(losses) related to the cash proceeds raised
through the IPO. The Company presents in the financial tables that accompany this release a reconciliation of Adjusted
EBITDA to profit for the period and Adjusted EBITDA margin to profit for the period margin, the most directly comparable
financial measures presented in accordance with IFRS.
The Company has included Adjusted EBITDA and Adjusted EBITDA margin in this press release because they are key
measures that the Company's management and Board of Directors use to understand and evaluate its core operating performance and
trends; to prepare and approve its annual forecast; and to develop short-and long-term operational plans. In
particular, the exclusion of certain expenses in calculating Adjusted EBITDA and Adjusted EBITDA margin can provide a useful
measure for period-to-period comparisons of the Company's core business. Accordingly, the Company believes that Adjusted
EBITDA and Adjusted EBITDA margin provide useful information to investors and others in understanding and evaluating its
operating results.
The Company's use of Adjusted EBITDA (and measures such as Adjusted EBITDA margin that are derived from it) has
limitations as an analytical tool, and investors should not consider this performance measure in isolation from, or as a
substitute for, analysis of the Company's results as reported under IFRS. Some of these limitations are:
• although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to
be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such
replacements or for new capital expenditure requirements;
• Adjusted EBITDA does not reflect changes in, or cash requirements for, the Company's working capital needs;
• Adjusted EBITDA does not consider the potentially dilutive impact of equity-based compensation;
• Adjusted EBITDA does not reflect tax payments that may represent a reduction in cash available to the Company;
• Adjusted EBITDA does not reflect the interest expense or the cash requirements necessary to service interest
payments on the Company's debt or any losses on the extinguishment of its debt;
• Adjusted EBITDA does not include unrealized foreign currency transaction gains and losses;
• Adjusted EBITDA does not include certain non-recurring initial public offering costs; and
• other companies, including companies in the Company's industry, may calculate Adjusted EBITDA differently, which
reduces its usefulness as a comparative measure.
Because of these limitations, investors should consider Adjusted EBITDA and Adjusted EBITDA margin alongside other
financial performance measures, including operating profit, profit for the period, profit for the period margin and the
Company's other results.
Headline Earnings
Headline earnings is a profit measure required for JSE-listed companies as defined by the South African Institute of
Chartered Accountants. The profit measure is determined by taking the profit for the year prior to separately
identifiable re-measurements of the carrying amount of an asset or liability that arose after the initial recognition of such asset
or liability net of related tax (both current and deferred) and related non-controlling interest.
A reconciliation of headline earnings to profit for the year has been included in the financial results section of
this announcement.
Adjusted Profit and Adjusted Earnings Per Share
Adjusted profit and adjusted earnings per share is defined as profit attributable to owners of the parent excluding
net foreign exchange gains/(losses) for the relevant period.
Accounting policies
The Company's consolidated full year and quarterly results included in this announcement have been prepared in
accordance with IFRS accounting policies. The basis of preparation and accounting policies have been set out in the financial
tables that accompany this press release.
Investor Contact:
Sheila Ennis
ICR for MiX Telematics
ir@mixtelematics.com
(855) 564-9835
Audited Group financial results for the year ended March 31, 2014
Summary consolidated income statement
South African Rand United States Dollar
Year Year Year Year
ended ended ended ended
March 31, March 31, March 31, March 31,
2014 2013 2014 2013
Figures are in thousands unless otherwise stated Audited Audited Unaudited Unaudited
Revenue 1,271,658 1,171,480 120,021 110,566
Cost of sales (422,034) (424,545) (39,832) (40,069)
Gross profit 849,624 746,935 80,189 70,497
Other income/(expenses) - net 2,151 4,260 203 402
Operating expenses (680,277) (565,318) (64,206) (53,355)
Sales and marketing (148,012) (132,849) (13,970) (12,538)
Administrative and other charges (532,265) (432,469) (50,236) (40,817)
Operating profit 171,498 185,877 16,186 17,544
Finance income/(cost) - net (note 12) 40,660 (6,011) 3,837 (568)
Finance income 43,264 2,018 4,083 190
Finance cost (2,604) (8,029) (246) (758)
Profit before taxation 212,158 179,866 20,023 16,976
Taxation (60,574) (51,400) (5,717) (4,851)
Profit for the year 151,584 128,466 14,306 12,125
Attributable to:
Owners of the parent 151,589 128,471 14,306 12,125
Non-controlling interests (5) (5) * *
151,584 128,466 14,306 12,125
Attributable earnings per share
- Basic (R/$) 0.21 0.20 0.02 0.02
- Diluted (R/$) 0.20 0.19 0.02 0.02
Earnings per American Depositary Share
- Basic (R/$) 5.18 4.88 0.49 0.46
- Diluted (R/$) 4.93 4.76 0.47 0.45
Ordinary shares (’000)
- In issue at March 31 784,150 659,963 784,150 659,963
- Weighted average 732,171 658,456 732,171 658,456
- Diluted weighted average 768,306 674,772 768,306 674,772
Weighted average American Depositary Share (’000)
- In issue at March 31 31,366 26,399 31,366 26,399
- Weighted average 29,287 26,338 29,287 26,338
- Diluted weighted average 30,732 26,991 30,732 26,991
*Amounts less than R1,000/$1,000
South African Rand amounts for fiscal 2014 and fiscal 2013 financial information have been translated to US Dollar at the
exchange rate of R10.5953 per $1.00, which was the R/$ exchange rate reported by the South African Reserve Bank as of
March 31, 2014. The US Dollar figures may not compute as they are rounded independently.
Summary consolidated statement of comprehensive income
South African Rand United States Dollar
Year Year Year Year
ended ended ended ended
March 31, March 31, March 31, March 31,
2014 2013 2014 2013
Figures are in thousands unless otherwise stated Audited Audited Unaudited Unaudited
Profit for the year 151,584 128,466 14,306 12,125
Other comprehensive income:
Items that may be subsequently reclassified to profit or loss
Exchange differences on translating foreign operations 45,475 37,090 4,292 3,501
Exchange differences on net investments in foreign operations 3,540 3,142 334 297
Taxation relating to components of other comprehensive income (599) - (57) -
Other comprehensive income for the year, net of tax 48,416 40,232 4,569 3,798
Total comprehensive income for the year 200,000 168,698 18,875 15,923
Attributable to:
Owners of the parent 200,005 168,703 18,875 15,923
Non-controlling interests (5) (5) * *
Total comprehensive income for the year 200,000 168,698 18,875 15,923
*Less than R1,000/$1,000
South African Rand amounts for fiscal 2014 and fiscal 2013 financial information have been translated to US Dollar at the exchange
rate of R10.5953 per $1.00, which was the R/$ exchange rate reported by the South African Reserve Bank as of March 31, 2014. The
US Dollar figures may not compute as they are rounded independently.
Headline earnings and adjusted earnings per share
South African Rand United States Dollar
Year Year Year Year
ended ended ended ended
March 31, March 31, March 31, March 31,
2014 2013 2014 2013
Figures are in thousands unless otherwise stated Audited Audited Unaudited Unaudited
Headline earnings per share
Reconciliation of headline earnings
Profit for the year attributable to owners of the parent 151,589 128,471 14,306 12,125
Adjusted for:
Profit on disposal of property, plant and equipment and intangible assets (97) (314) (9) (30)
Impairment of furniture and fittings (note 4) 316 - 30 -
Impairment of product development costs capitalised (note 4) 63 5,158 6 487
Foreign currency translation reserve released due to
liquidation of intermediary subsidiary holding company (note 4) - 394 - 37
Income tax effect on the above components (85) (1,357) (7) (128)
Headline earnings attributable to owners 151,786 132,352 14,326 12,491
of the parent
Headline earnings per share
- Basic (R/$) 0.21 0.20 0.02 0.02
- Diluted (R/$) 0.20 0.20 0.02 0.02
Headline earnings per American Depositary Share
- Basic (R/$) 5.18 5.03 0.49 0.47
- Diluted (R/$) 4.94 4.90 0.47 0.46
Adjusted earnings per share
During the 2014 fiscal year, a new profit measure was implemented,
Adjusted earnings per share. Adjusted earnings per share is defined
as profit attributable to owners of the parent excluding net foreign
exchange gains/(losses) divided by the weighted average number of
ordinary shares in issue during the year.
Reconciliation of adjusted earnings
Profit for the year attributable to owners of the parent 151,589 128,471 14,306 12,125
Net foreign exchange (gains)/losses (note 12) (38,128) 4,681 (3,599) 442
Income tax effect on the above component 10,458 (1,098) 988 (104)
Adjusted earnings attributable to owners of the parent 123,919 132,054 11,695 12,463
Adjusted earnings per share
- Basic (R/$) 0.17 0.20 0.02 0.02
- Diluted (R/$) 0.16 0.20 0.02 0.02
Adjusted earnings per American Depositary Share
- Basic (R/$) 4.23 5.01 0.40 0.47
- Diluted (R/$) 4.03 4.89 0.38 0.46
South African Rand amounts for fiscal 2014 and fiscal 2013 financial information have been translated to US Dollar at the exchange rate of
R10.5953 per $1.00, which was the R/$ exchange rate reported by the South African Reserve Bank as of March 31, 2014. The US Dollar figures
may not compute as they are rounded independently.
Summary consolidated statement of financial position
South African Rand United States Dollar
March 31, March 31, March 31, March 31,
2014 2013 2014 2013
Figures are in thousands unless otherwise stated Audited Audited Unaudited Unaudited
ASSETS
Non-current assets
Property, plant and equipment 129,079 96,547 12,183 9,112
Intangible assets 692,190 645,736 65,330 60,946
Available-for-sale financial asset - - - -
Finance lease receivable 6,677 6,359 630 600
Deferred tax assets 19,825 13,868 1,871 1,309
Total non-current assets 847,771 762,510 80,014 71,967
Current assets
Inventory 39,774 38,927 3,754 3,674
Trade and other receivables 234,839 186,987 22,164 17,648
Finance lease receivable 6,652 3,604 628 340
Taxation 7,336 4,823 692 455
Restricted cash 10,279 8,235 970 778
Cash and cash equivalents (note 6) 830,449 147,702 78,380 13,941
Total current assets 1,129,329 390,278 106,588 36,836
Total assets 1,977,100 1,152,788 186,602 108,803
EQUITY
Capital and reserves
Stated capital 1,429,250 790,491 134,895 74,608
Other reserves (58,335) (111,362) (5,506) (10,510)
Retained earnings 300,725 188,750 28,381 17,814
Equity attributable to owners of the parent 1,671,640 867,879 157,770 81,912
Non-controlling interest (10) (5) * *
Total equity 1,671,630 867,874 157,770 81,912
LIABILITIES
Non-current liabilities
Borrowings 2,462 - 232 -
Deferred tax liabilities 20,601 8,605 1,944 812
Provisions 2,282 283 215 27
Total non-current liabilities 25,345 8,888 2,391 839
Current liabilities
Trade and other payables 228,961 184,397 21,610 17,404
Borrowings 1,279 3,472 121 328
Taxation 2,912 10,691 276 1,008
Provisions 19,163 21,461 1,809 2,026
Bank overdraft 27,810 56,005 2,625 5,286
Total current liabilities 280,125 276,026 26,441 26,052
Total liabilities 305,470 284,914 28,832 26,891
Total equity and liabilities 1,977,100 1,152,788 186,602 108,803
Net cash (note 6) 798,898 88,225 75,402 8,327
Net asset value per share (R/$) 2.13 1.32 0.20 0.12
Net tangible asset value per share (R/$) 1.25 0.34 0.12 0.03
Capital expenditure
- Incurred 135,309 94,147 12,771 8,886
- Authorised but not spent 60,115 44,497 5,674 4,200
*Amounts less than R1,000/$1,000
South African Rand amounts for fiscal 2014 and fiscal 2013 financial information have been translated to US Dollar at the
exchange rate of R10.5953 per $1.00, which was the R/$ exchange rate reported by the South African Reserve Bank as of
March 31, 2014. The US Dollar figures may not compute as they are rounded independently.
Summary consolidated statement of cash flows
South African rand United States dollar
Year Year Year Year
ended ended ended ended
March 31, March 31, March 31, March 31,
2014 2013 2014 2013
Figures are in thousands unless otherwise stated Audited Audited Unaudited Unaudited
Operating activities
Cash generated from operations 266,169 287,847 25,121 27,167
Net financing income/(costs) 1,474 (1,541) 139 (145)
Taxation paid (63,866) (74,388) (6,028) (7,021)
Net cash generated from operating activities 203,777 211,918 19,232 20,001
Investing activities
Capital expenditure, net of government grant received (128,745) (91,940) (12,151) (8,677)
Acquisition of business, net of cash acquired (note 10) (3,606) 23 (340) 2
Deferred consideration paid (295) - (28) -
Proceeds on sale of property, plant and equipment 978 966 92 91
Increase in restricted cash (1,508) (5,103) (142) (482)
Net cash used in investing activities (133,176) (96,054) (12,569) (9,066)
Financing activities
Proceeds from share capital issued 665,710 2,889 62,831 273
Share issue expenses paid (26,951) - (2,544) -
Repayment of borrowings (3,436) (19,701) (324) (1,859)
Dividends paid (39,610) (78,874) (3,738) (7,444)
Net cash generated from/(used in) financing activities 595,713 (95,686) 56,225 (9,030)
Net increase in cash and cash equivalents 666,314 20,178 62,888 1,905
Net cash and cash equivalents at the beginning of the year 91,697 68,530 8,655 6,468
Exchange gains on cash and cash equivalents 44,628 2,989 4,212 282
Net cash and cash equivalents at the end of the year 802,639 91,697 75,755 8,655
South African Rand amounts for fiscal 2014 and fiscal 2013 financial information have been translated to US Dollar at the exchange
rate of R10.5953 per $1.00, which was the R/$ exchange rate reported by the South African Reserve Bank as of March 31, 2014. The
US Dollar figures may not compute as they are rounded independently.
Summary consolidated statement of changes in equity
Attributable to owners of the parent
South African Rand Stated Share Share Other Retained Total Non- Total
Figures are in thousands unless otherwise stated capital capital premium reserves earnings controlling equity
interest
Balance at April 1, - 13 787,589 (154,745) 139,233 772,090 - 772,090
2012 (Audited)
Total comprehensive income - - - 40,232 128,471 168,703 (5) 168,698
- Profit for the year - - - - 128,471 128,471 (5) 128,466
- Other comprehensive income - - - 40,232 - 40,232 - 40,232
Total transactions with owners 464 * 2,425 3,151 (78,954) (72,914) - (72,914)
- Shares issued in relation to share options exercised 464 * 2,425 - - 2,889 - 2,889
- Share-based payment - - - 3,151 - 3,151 - 3,151
- Dividend declared of 8 cents per share (note 8) - - - - (52,576) (52,576) - (52,576)
- Interim dividend declared of 4 cents per share (note 8) - - - - (26,378) (26,378) - (26,378)
Transfer from share capital and share premium to stated capital 790,027 (13) (790,014) - - - - -
Balance at March 31, 790,491 - - (111,362) 188,750 867,879 (5) 867,874
2013 (Audited)
Total comprehensive income - - - 48,416 151,589 200,005 (5) 200,000
- Profit for the year - - - - 151,589 151,589 (5) 151,584
- Other comprehensive income - - - 48,416 - 48,416 - 48,416
Total transactions with owners 638,759 - - 4,611 (39,614) 603,756 - 603,756
- Shares issued in relation to share options exercised 15,776 - - - - 15,776 - 15,776
- Share-based payment - - - 4,611 - 4,611 - 4,611
- Proceeds from shares issued, net of share issue costs 622,983 - - - - 622,983 - 622,983
- Dividend declared of 6 cents per share (note 8) - - - - (39,614) (39,614) - (39,614)
Balance at March 31, 1,429,250 - - (58,335) 300,725 1,671,640 (10) 1,671,630
2014 (Audited)
Summary consolidated statement of changes in equity (continued)
Attributable to owners of the parent
United Stated Dollar Stated Share Share Other Retained Total Non- Total
Figures are in thousands unless otherwise stated capital capital premium reserves earnings controlling equity
interest
Balance at April 1, - 1 74,334 (14,605) 13,141 72,871 - 72,871
2012 (Unaudited)
Total comprehensive income - - - 3,798 12,125 15,923 * 15,923
- Profit for the year - - - - 12,125 12,125 * 12,125
- Other comprehensive income - - - 3,798 - 3,798 - 3,798
Total transactions with owners 44 * 229 297 (7,452) (6,882) - (6,882)
- Shares issued in relation to share options exercised 44 * 229 - - 273 - 273
- Share-based payment - - - 297 - 297 - 297
- Dividend declared of 0.8 cents per share (note 8) - - - - (4,962) (4,962) - (4,962)
- Interim dividend declared of 0.4 cents per share (note 8) - - - - (2,490) (2,490) - (2,490)
Transfer from share capital and share premium to stated capital 74,564 (1) (74,563) - - - - -
Balance at March 31, 74,608 - - (10,510) 17,814 81,912 * 81,912
2013 (Unaudited)
Total comprehensive income - - - 4,569 14,306 18,875 * 18,875
- Profit for the year - - - - 14,306 14,306 * 14,306
- Other comprehensive income - - - 4,569 - 4,569 - 4,569
Total transactions with owners 60,287 - - 435 (3,739) 56,983 - 56,983
- Shares issued in relation to share options exercised 1,489 - - - - 1,489 - 1,489
- Share-based payment - - - 435 - 435 - 435
- Proceeds from shares issued, net of share issue costs 58,798 - - - - 58,798 - 58,798
- Dividend declared of 0.6 cents per share (note 8) - - - - (3,739) (3,739) - (3,739)
Balance at March 31, 134,895 - - (5,506) 28,381 157,770 * 157,770
2014 (Unaudited)
*Amounts less than R1,000/$1,000
South African Rand amounts for fiscal 2014 and fiscal 2013 financial information have been translated to US Dollar at
the exchange rate of R10.5953 per $1.00, which was the R/$ exchange rate reported by the South African Reserve Bank as of
March 31, 2014. The US Dollar figures may not compute as they are rounded independently.
Summary segmental analysis
South African Rand
Figures are in thousands unless otherwise stated Total Inter- Adjusted Assets
revenue segment EBITDA
Year ended March 31, 2014 (Audited) revenue
Africa Consumer solutions 355,084 (17,632) 105,162 276,643
Fleet solutions 325,400 (5,500) 95,209 131,286
Europe Fleet solutions 160,639 (977) 7,285 88,086
Americas Fleet solutions 134,213 - (6,550) 74,970
Middle East and Australasia Fleet solutions 306,450 (1,569) 21,834 162,848
Brazil Fleet solutions 11,901 (56) (11,621) 9,695
International Fleet solutions and development 358,538 (354,833) 102,778 285,825
Total 1,652,225 (380,567) 314,097 1,029,353
Corporate and consolidation entries - - (31,874) 1,136,564
Inter-segment elimination (380,567) 380,567 - (188,817)
Total 1,271,658 - 282,223 1,977,100
Year ended March 31, 2013 (Audited) Total Inter- Adjusted Assets
revenue segment EBITDA
revenue
Africa Consumer solutions 343,578 (11,910) 86,943 279,239
Fleet solutions 281,937 (5,838) 94,541 83,047
Europe Fleet solutions 128,116 (576) (4,608) 60,078
Americas Fleet solutions 155,657 - 3,039 53,067
Middle East and Australasia Fleet solutions 265,598 - 32,952 129,133
Brazil Fleet solutions - - (2,062) 4,529
International Fleet solutions and development 330,755 (315,837) 94,784 243,284
Total 1,505,641 (334,161) 305,589 852,377
Corporate and consolidation entries - - (14,768) 415,493
Inter-segment elimination (334,161) 334,161 - (115,082)
Total 1,171,480 - 290,821 1,152,788
Summary segmental analysis (continued)
United States Dollar
Figures are in thousands unless otherwise stated Total Inter- Adjusted Assets
revenue segment EBITDA
Year ended March 31, 2014 (Unaudited) revenue
Africa Consumer solutions 33,513 (1,664) 9,925 26,110
Fleet solutions 30,713 (519) 8,986 12,390
Europe Fleet solutions 15,161 (92) 688 8,314
Americas Fleet solutions 12,667 - (618) 7,076
Middle East and Australasia Fleet solutions 28,923 (148) 2,061 15,370
Brazil Fleet solutions 1,123 (5) (1,097) 915
International Fleet solutions and development 33,839 (33,490) 9,700 26,977
Total 155,939 (35,918) 29,645 97,152
Corporate and consolidation entries - - (3,008) 107,271
Inter-segment elimination (35,918) 35,918 - (17,821)
Total 120,021 - 26,637 186,602
Year ended March 31, 2013 (Unaudited) Total Inter- Adjusted Assets
revenue segment EBITDA
revenue
Africa Consumer solutions 32,427 (1,124) 8,206 26,356
Fleet solutions 26,609 (551) 8,923 7,839
Europe Fleet solutions 12,092 (54) (435) 5,670
Americas Fleet solutions 14,691 - 287 5,009
Middle East and Australasia Fleet solutions 25,068 - 3,110 12,188
Brazil Fleet solutions - - (195) 427
International Fleet solutions and development 31,217 (29,809) 8,946 22,962
Total 142,104 (31,538) 28,842 80,451
Corporate and consolidation entries - - (1,393) 39,215
Inter-segment elimination (31,538) 31,538 - (10,863)
Total 110,566 - 27,449 108,803
South African Rand amounts for fiscal 2014 and fiscal 2013 financial information have been translated to US Dollar at the
exchange rate of R10.5953 per $1.00, which was the R/$ exchange rate reported by the South African Reserve Bank as of
March 31, 2014. The US Dollar figures may not compute as they are rounded independently.
Other financial and operating data
South African Rand United States Dollar
Year Year Year Year
ended ended ended ended
March 31, March 31, March 31, March 31,
2014 2013 2014 2013
Figures are in thousands except for vehicle data Audited Audited Unaudited Unaudited
Subscription revenue 853,716 686,720 80,575 64,814
Adjusted EBITDA (note 4) 282,223 290,821 26,637 27,449
Cash and cash equivalents 830,449 147,702 78,380 13,941
Net cash 798,898 88,225 75,402 8,327
Capital expenditure 135,309 94,147 12,771 8,886
Vehicles under subscription (unaudited) 450,502 359,643 450,502 359,643
Exchange rates
The following major rates of exchange were used:
SA Rand: United States dollar - closing 10.60 9.24
- average 10.12 8.50
SA Rand: British Pound - closing 17.60 14.04
- average 16.11 13.43
South African Rand amounts for fiscal 2014 and fiscal 2013 financial information have been translated to US Dollar at the
exchange rate of R10.5953 per $1.00, which was the R/$ exchange rate reported by the South African Reserve Bank as of
March 31, 2014. The US Dollar figures may not compute as they are rounded independently.
Notes to the audited Group financial results for the year ended March 31, 2014
1. Independent audit
These summary consolidated financial statements for the year ended March 31, 2014 have been audited by PricewaterhouseCoopers
Inc., who expressed an unmodified opinion thereon. The auditor also expressed an unmodified opinion on the annual financial
statements from which these summary consolidated financial statements were derived.
A copy of the auditor’s report on the summary consolidated financial statements and of the auditor’s report on the annual
consolidated financial statements are available for inspection at MiX Telematics Limited’s registered office, together with
the financial statements identified in the respective auditor’s reports.
The auditor’s report does not necessarily report on all of the information contained in these financial results. Shareholders
are therefore advised that in order to obtain a full understanding of the nature of the auditor’s engagement they should
obtain a copy of the auditor’s report together with the accompanying financial information from MiX Telematics Limited’s registered
office.
2. Basis of preparation and accounting policies
The summary consolidated financial statements are prepared in accordance with the requirements of the JSE Limited Listings
Requirements for preliminary reports, and the requirements of the Companies Act applicable to summary financial statements.
The JSE Limited Listings Requirements require preliminary reports to be prepared in accordance with the framework concepts
and the measurement and recognition requirements of International Financial Reporting Standards and the SAICA Financial Reporting
Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by the Financial Reporting Standards
Council and to also, as a minimum, contain the information required by IAS 34 Interim Financial Reporting. The accounting policies
applied in the preparation of the consolidated financial statements from which the summary consolidated financial statements were
derived are in terms of International Financial Reporting Standards and are consistent with those accounting policies applied in
the preparation of the previous consolidated annual financial statements, with the exception of foreign exchange gains and losses,
which were previously classified as part of “Other income/(expenses) - net”, and now are classified as part of “Finance income/
(costs) - net” and where the Group has adopted new or revised accounting standards, as described below.
IFRS 10 Consolidated Financial Statements - Under IFRS 10, subsidiaries are all entities (including structured entities) over which
the Group has control. The Group controls an entity when the Group has power over an entity, is exposed to, or has rights to, variable
returns from its involvement with the entity and has the ability to affect these returns through its power over the entity. Subsidiaries
are fully consolidated from the date on which control is transferred to the Group. The Group has applied IFRS 10 retrospectively in
accordance with the transition provisions of IFRS 10. This has not had any impact on the Group.
IFRS 13 Fair Value Measurement - IFRS 13 measurement and disclosure requirements are applicable for the
March 31, 2014 financial year end. The Group has included the disclosures required by IAS 34. Refer to note 13.
The audited Group financial results were prepared under the supervision of the Group Financial Director, M Pydigadu CA(SA).
Presentation currency and convenience translation
The Group’s presentation currency is South African Rand. In addition to presenting these summary consolidated financial results for
the year ended March 31, 2014 in South African Rand, supplementary information in US Dollar has been prepared for the convenience of
users of the Group financial results. Unless otherwise stated, the Group has translated US Dollar amounts from South African Rand at
the exchange rate of R10.5953 per $1.00, which was the R/$ exchange rate reported by the South African Reserve Bank as of March 31, 2014.
This information is unaudited.
3. Operating segments
The Group’s businesses are managed primarily on a geographic and also on a product basis. During the year under review, a new profit
measure was implemented, namely Adjusted EBITDA. Adjusted EBITDA, which has replaced the EBITDA profit measure previously presented,
is defined as follows: profit for the year before income taxes, net finance income/(expense), depreciation of property, plant and
equipment including capitalised customer in-vehicle devices, amortisation of intangible assets including capitalised in-house
development costs, share-based compensation costs, transaction costs arising from the acquisition of a business, restructuring costs,
profits/(losses) on the disposal or impairments of assets or subsidiaries, certain non-recurring initial public offering costs,
unrealised foreign exchange gains/(losses) and foreign exchange gains/(losses) related to the cash proceeds raised through the
initial public offering. A reconciliation of Adjusted EBITDA to profit for the year is disclosed in note 4.
4. Reconciliation of Adjusted EBITDA to profit for the year
South African Rand United States Dollar
Year Year Year Year
ended ended ended ended
March 31, March 31, March 31, March 31,
2014 2013 2014 2013
Figures are in thousands unless otherwise stated Audited Audited Unaudited Unaudited
Adjusted EBITDA 282,223 290,821 26,637 27,449
Add:
Net realized foreign exchange losses - 1,669 - 158
Net profit on disposal of property, plant and equipment
and intangible assets 97 314 9 30
Less:
Depreciation(1) (47,887) (41,201) (4,520) (3,890)
Amortization(2) (44,941) (56,985) (4,242) (5,378)
Impairment(3) (379) (5,158) (36) (487)
Share-based compensation costs (4,611) (3,151) (435) (297)
Foreign currency translation reserve released due to
liquidation of intermediary subsidiary holding company - (394) - (37)
Restructuring costs (2,745) - (259) -
Transaction costs arising from the acquisition of a
business (211) (38) (20) (4)
Non-recurring initial public offering costs(4) (8,503) - (802) -
Net realized foreign exchange gains (1,545) - (146) -
Operating profit 171,498 185,877 16,186 17,544
Add: Finance income/(cost) - net 40,660 (6,011) 3,837 (568)
Less: Taxation (60,574) (51,400) (5,717) (4,851)
Profit for the year 151,584 128,466 14,306 12,125
*Amounts less than R1,000/$1,000
(1)Includes depreciation of property, plant and equipment (including in-vehicle devices).
(2)Includes amortisation of intangible assets (including product development costs).
(3)Includes impairment of product development costs and furniture and fittings.
(4)Includes R7.7 million in staff costs and R0.8 million in audit fees.
South African Rand amounts have been translated to US Dollar at the exchange rate of R10.5953 per $1.00, which was the R/$ exchange
rate reported by the South African Reserve Bank as of March 31, 2014. The US Dollar figures may not compute as they are rounded
independently.
5. Reconciliation of Adjusted EBITDA margin to profit for the year
Year Year
ended ended
March 31, March 31,
2014 2013
Audited Audited
Adjusted EBITDA margin 22.2% 24.8%
Add:
Net realized foreign exchange losses - 0.2%
Net profit on disposal of property, plant and equipment
and intangible assets 0.0% 0.0%
Less:
Depreciation (3.8%) (3.5%)
Amortization (3.5%) (4.9%)
Impairment (0.0%) (0.4%)
Share-based compensation costs (0.4%) (0.3%)
Foreign currency translation reserve released due to
liquidation of intermediary subsidiary holding company - (0.0%)
Restructuring costs (0.2%) -
Transaction costs arising from the acquisition of a business - (0.0%)
Non-recurring initial public offering costs (0.7%) -
Net realized foreign exchange gains (0.1%) -
Operating profit margin 13.5% 15.9%
Add: Finance income/(cost) - net 3.2% (0.5%)
Less: Taxation (4.8%) (4.4%)
Profit for the year margin 11.9% 11.0%
6. Net cash
Net cash is calculated as being net cash and cash equivalents, excluding restricted cash less interest-bearing borrowings.
Proceeds from the New York Stock Exchange listing have significantly increased cash and cash equivalents. Refer to note 14.
7. Restructuring
During June 2013, the Europe fleet solutions segment implemented a restructuring plan. The total cost of the restructuring
was R2.7 million ($0.3 million). The restructuring has resulted in operating cost savings for the segment in the current
year and is expected to continue to do so in future years.
8. Dividends
A final dividend of R39.6 million or $3.7 million (2013: R52.6 million or $5.0 million) was declared during the year and paid
on July 8, 2013. Using shares in issue of 660.2 million (2012: 657.2 million), this equated to a dividend of 6.0 or $0.6
(2013: 8.0 or $0.8) cents per share.
Following the completion of its initial public offering of American Depositary Shares (“ADSs”), the Company discontinued its
policy of declaring regular dividends in order to increase the funds available to pursue opportunities for more rapid growth.
As a result no interim dividend was declared in fiscal 2014 (2013: 4.0 or $0.4 cents per share).
9. Contingent liabilities
Network services agreement
In terms of a network services agreement with Mobile Telephone Networks Proprietary Limited (“MTN”), MTN is entitled to claw
back payments from MiX Telematics Africa Proprietary Limited in the event of early cancellation of the agreement or certain
base connections not being maintained over the term of the agreement. The maximum potential liability under the arrangement
is R58.1 million ($5.5 million) (2013: R65.1 or $6.1 million). No loss is considered probable under this arrangement.
10. Business combination
Acquisition of proprietary software development business
On December 19, 2013, the Group acquired a proprietary software development business constituting employees and specific assets
and liabilities from Roitech Proprietary Limited. The business acquired has developed customisable software which comprises a
smartphone application and a web-based user interface, and uses mobile and geographic information systems (“GIS”) technologies
for the effective management of in-field data collection, distribution and tracking which may be applied to areas such as sales
teams, research teams, meter readers and vehicle tracking, and driver monitoring. The services offered by the business complement
the Group’s existing fleet management solutions and the acquisition broadens the array of services offered to current and future
fleet management customers.
The acquisition was considered to be a business combination as defined by International Financial Reporting Standards, and as a
result has been accounted for under the requirements of IFRS 3. The Group acquired the power to control the operating and financial
activities of the acquired business on December 19, 2013, and the assets acquired and liabilities assumed have been recorded at
their fair values.
From the acquisition date, no revenue has been recorded by the business acquired and losses of R0.6 million ($0.1 million) have
been included in profit or loss. Had the software business been consolidated from April 1, 2013 the consolidated income statement
would show nil pro forma revenue and a net loss of R2.4 million ($0.2 million) in respect of this business.
R’000 $’000
Consideration at December 19, 2013
Total consideration payable 7,606 718
Cash consideration transferred at effective date (3,606) (340)
Deferred consideration payable 4,000 378
Recognised amounts of identifiable assets acquired and liabilities assumed
Fair value
R’000 $’000
Software 4,000 378
Deferred tax asset 1,032 97
Trade and other payables (82) (8)
Total identifiable net assets 4,950 467
Goodwill 2,656 251
Acquisition date fair value of consideration paid 7,606 718
Acquisition-related expenses of R0.2 million ($0.02 million) were incurred and have been charged to administrative and other
expenses in the consolidated income statement for the 2014 fiscal year. The goodwill of R2.7 million ($0.3 million) arising from
the acquisition is attributable to the workforce acquired and the synergies expected from combining the business acquired and the Group.
By year-end, R0.1 million ($0.01 million) interest on the deferred consideration was charged to profit or loss for the 2014 fiscal year.
11. Reclassification
During the current fiscal year, the Group changed its classification of foreign exchange gains and losses in the income statement.
Foreign exchange gains and losses, which were previously classified as part of “Other income/(expenses) - net”, are now classified
as part of “Finance income/(cost) - net”. The change is considered a more relevant presentation of such items in the income statement
since the majority of foreign exchange gains and losses in 2014 relate to translation differences on foreign currency cash and cash
equivalents arising from the initial public offering proceeds.
The reclassification has been adopted retrospectively, and the comparative amounts for the year ended March 31, 2013 have been adjusted
accordingly. The impact of the reclassification results in an increase of R4.7 million ($0.4 million) in “Operating profit” with a
corresponding additional cost in “Finance income/(cost)” of R4.7 million ($0.4 million). Profit before taxation and profit for the
year remains unchanged.
12. Finance income/(cost) - net
As detailed in note 11 above, the Group changed its classification of foreign exchange gains and losses in the income statement. "Finance
income/(cost) - net" includes the following net foreign exchange gains/(losses):
South African Rand United States Dollar
Year Year Year Year
ended ended ended ended
March 31, March 31, March 31, March 31,
2014 2013 2014 2013
Figures are in thousands unless otherwise stated Audited Audited Unaudited Unaudited
Net foreign exchange gains/(losses) 38,128 (4,681) 3,599 (442)
13. Fair value of financial assets and liabilities measured at amortized cost
The fair value of the Group’s financial assets and liabilities approximate their carrying amounts at March 31, 2014.
14. New York Stock Exchange listing and proceeds from shares issued
On August 9, 2013, following a successful US initial public offering of American Depositary Shares or “ADSs”, each of which
represents 25 ordinary shares at no par value, the Company’s ADSs were listed on the NYSE and are traded under the symbol MIXT.
As part of the US initial public offering of ADSs, the Company issued 4,400,000 ADSs on August 14, 2013 and raised R650 million
($65.5 million) for the Company (before expenses). Selling shareholders sold an additional 2,840,512 ADSs, resulting in a total
capital raise by the Company and selling shareholders, prior to underwriting discount, of R1,150 million ($115.8 million). The
Company did not receive any proceeds from ADSs that were sold by the selling shareholders.
South African United States
Rand Dollar
’000 ’000
Audited Unaudited
Reconciliation of initial public offering price and proceeds received, net of expenses:
Initial public offering price 1,150,013 115,848
Underwriting discount (80,501) (8,109)
Proceeds received by selling shareholders (before expenses) (419,578) (42,267)
Proceeds received by Company (before expenses) 649,934 65,472
Share issue expenses (26,951) (2,715)
Proceeds from shares issued, net of share issue costs 622,983 62,757
The Group has translated the above US Dollar amounts from South African Rand at the exchange rate of R9.9269 per $1.00, which was
the R/$ exchange rate on August 14, 2013, the date that the shares were settled on the JSE Limited.
15. Subsequent events
The directors are not aware of any matter material or otherwise arising since March 31, 2014 and up to the date of this report,
not otherwise dealt with herein.
16. Preference share capital
In terms of a special resolution approved on August 1, 2013 a new class of no par value shares, consisting of 100 million preference
shares was created. No preference shares have been issued to date.
17. Changes to the Board
On May 13, 2013, E Banda was appointed as an independent non-executive director and as a member of the audit and risk committee.
F Roji resigned as non-executive director of the Board of Directors and has been appointed as an alternate director to H Brody with
effect from May 13, 2013.
The following Board of Director members resigned, with effect from August 9, 2013:
• R Shough, an independent non-executive director;
• R Botha, executive director responsible for special projects;
• T Buzer, executive director responsible for development and engineering;
• H Scott, executive director responsible for strategy and acquisition; and
R Botha, T Buzer and H Scott continued to serve as full-time Group executive committee members.
With effect from April 3, 2014, C Ewing stepped down as Chairman of the audit and risk committee but remains a member of the committee.
A Welton, an independent non-executive director of the Company, replaced C Ewing as Chairman of the committee. C Ewing then assumed the
chairmanship of the social and ethics committee from A Welton.
18. Annual general meeting
The annual general meeting of shareholders of MiX Telematics Limited will be held at Matrix Corner, Howick Close, Waterfall Park,
Midrand, Johannesburg on Wednesday, September 17, 2014 at 11:30am (South African time).
For South African shareholders, the last day to trade in order to be eligible to participate in and vote at the annual general meeting is
Friday, September 5, 2014 and the record date for voting purposes is Friday, September 12, 2014.
For and on behalf of the Board:
SR Bruyns SB Joselowitz
Midrand
June 3, 2014
Unaudited Group consolidated financial results for the quarter ended March 31, 2014
Condensed consolidated income statement
South African Rand United States Dollar
Three Three Three Three
months months months months
ended ended ended ended
March 31, March 31, March 31, March 31,
2014 2013 2014 2013
Figures are in thousands unless otherwise stated Unaudited Unaudited Unaudited Unaudited
Revenue 348,427 308,540 32,882 29,118
Cost of sales (107,471) (101,566) (10,142) (9,585)
Gross profit 240,956 206,974 22,740 19,533
Other income/(expenses) - net 236 (1,753) 22 (165)
Operating expenses (180,080) (141,008) (16,995) (13,307)
- Sales and marketing (42,594) (31,113) (4,020) (2,936)
- Administrative and other charges (137,486) (109,895) (12,975) (10,371)
Operating profit 61,112 64,213 5,767 6,061
Finance income/(cost) - net 6,614 (1,098) 624 (103)
- Finance income 7,219 579 681 55
- Finance cost (605) (1,677) (57) (158)
Profit before taxation 67,726 63,115 6,391 5,958
Taxation (17,347) (17,532) (1,637) (1,655)
Profit for the period 50,379 45,583 4,754 4,303
Attributable to:
Owners of the parent 50,384 45,588 4,754 4,303
Non-controlling interests (5) (5) * *
50,379 45,583 4,754 4,303
Attributable earnings per share
- Basic (R/$) 0.06 0.07 0.01 0.01
- Diluted (R/$) 0.06 0.07 0.01 0.01
Earnings per American Depositary Share
- Basic (R/$) 1.62 1.73 0.15 0.16
- Diluted (R/$) 1.56 1.68 0.15 0.16
Attributable adjusted earnings per share
- Basic (R/$) 0.06 0.07 0.01 0.01
- Diluted (R/$) 0.06 0.07 0.01 0.01
Adjusted earnings per American Depositary Share
- Basic (R/$) 1.50 1.76 0.14 0.17
- Diluted (R/$) 1.44 1.71 0.14 0.16
Ordinary shares (’000)
- In issue at March 31 784,150 659,963 784,150 659,963
- Weighted average 778,720 659,803 778,720 659,803
- Diluted weighted average 808,871 680,399 808,871 680,399
Weighted average American Depositary Share (’000)
- In issue at March 31 31,366 26,399 31,366 26,399
- Weighted average 31,149 26,392 31,149 26,392
- Diluted weighted average 32,355 27,216 32,355 27,216
*Amounts less than R1,000/$1,000
South African Rand amounts have been translated to US Dollar at the exchange rate of R10.5953 per $1.00, which was the R/$ exchange rate
reported by the South African Reserve Bank as of March 31, 2014. The US Dollar figures may not compute as they are rounded independently.
Notes to the unaudited Group consolidated financial results for the quarter ended March 31, 2014
1. Basis of preparation and accounting policies
Financial results for the fourth quarter of fiscal year 2014
In addition to the Group’s financial results for the year ended March 31, 2014, additional financial information in respect of
the fourth quarter of fiscal year 2014 has been presented together with the relevant comparative information. The quarterly
information comprises a condensed consolidated income statement, a reconciliation of adjusted EBITDA to profit for the period
and other financial and operating data.
The accounting policies used in preparing the financial results for the fourth quarter of fiscal year 2014 are consistent in all
material respects with those applied in the preparation of the condensed audited Group financial results for the year ended
March 31, 2014.
The quarterly financial results have not been audited or reviewed by the Group’s external auditors.
The condensed unaudited Group quarterly financial results do not include all the information and disclosures required in the
annual financial statements and should be read in conjunction with the Group’s annual financial statements for the year ended
March 31, 2014, which have been prepared in accordance with IFRS.
2. Reclassification
The reclassification, set out in full in note 11 to the audited Group financial results, has been applied retrospectively, and
the comparative amounts for the three months ended March 31, 2013 have been adjusted accordingly. The impact of the reclassification
results in an increase of R1.2 million ($0.1 million) in “Operating profit” with a corresponding additional cost in “Finance
income/(cost) - net” of R1.2 million ($0.1 million) for the three months ended March 31, 2013. Profit before taxation and profit for
the period remain unchanged for the period.
3. Reconciliation of adjusted earnings
South African Rand United States Dollar
Three Three Three Three
months months months months
ended ended ended ended
March 31, March 31, March 31, March 31,
2014 2013 2014 2013
Figures are in thousands unless otherwise stated Unaudited Unaudited Unaudited Unaudited
Reconciliation of adjusted earnings
Profit for the period attributable to owners of the parent 50,384 45,588 4,754 4,303
Net foreign exchange (gains)/losses (5,408) 1,223 (510) 115
Income tax effect on the above component 1,619 (262) 153 (25)
Adjusted earnings attributable to owners of the parent 46,595 46,549 4,397 4,393
South African Rand amounts have been translated to US Dollar at the exchange rate of R10.5953 per $1.00, which was the R/$ exchange
rate reported by the South African Reserve Bank as of March 31, 2014. The US Dollar figures may not compute as they are rounded
independently.
4. Reconciliation of Adjusted EBITDA to profit for the period
South African Rand United States Dollar
Three Three Three Three
months months months months
ended ended ended ended
March 31, March 31, March 31, March 31,
2014 2013 2014 2013
Figures are in thousands unless otherwise stated Unaudited Unaudited Unaudited Unaudited
Adjusted EBITDA 84,601 91,735 7,984 8,660
Add:
Net profit on disposal of property, plant and equipment and
intangible assets - 300 - 28
Less:
Depreciation(1) (12,803) (12,173) (1,208) (1,149)
Amortization(2) (8,343) (13,166) (787) (1,243)
Impairment(3) 35 (1,092) 3 (103)
Share-based compensation costs (843) (1,140) (79) (108)
Foreign currency translation reserve released due to
liquidation of intermediary subsidiary holding company - 5 - *
Restructuring costs 17 - 1 -
Transaction costs arising from the acquisition of a business (166) (12) (16) (1)
Net loss on sale of property, plant and equipment and intangible
assets (74) - (7) -
Net realized foreign exchange gains (1,312) (244) (124) (23)
Operating profit 61,112 64,213 5,767 6,061
Add: Finance income/(cost) - net 6,614 (1,098) 624 (103)
Less: Taxation (17,347) (17,532) (1,637) (1,655)
Profit for the period 50,379 45,583 4,754 4,303
*Amounts less than R1,000/$1,000
(1)Includes depreciation of property, plant and equipment (including in-vehicle devices).
(2)Includes amortization of intangible assets (including product development costs).
(3)Includes impairment of product development costs and furniture and fittings.
South African Rand amounts have been translated to US Dollar at the exchange rate of R10.5953 per $1.00, which was the R/$ exchange
rate reported by the South African Reserve Bank as of March 31, 2014. The US Dollar figures may not compute as they are rounded
independently.
5. Reconciliation of Adjusted EBITDA margin to profit for the period margin
Three Three
months months
ended ended
March 31, March 31,
2014 2013
Unaudited Unaudited
Adjusted EBITDA margin 24.3% 29.7%
Add:
Net profit on disposal of property, plant and equipment and intangible assets - 0.1%
Less:
Depreciation (3.7%) (3.9%)
Amortization (2.4%) (4.3%)
Impairment 0.0% (0.4%)
Share-based compensation costs (0.2%) (0.4%)
Foreign currency translation reserve released due to liquidation of intermediary
subsidiary holding company - 0.0%
Restructuring costs 0.0% -
Transaction costs arising from the acquisition of a business (0.0%) (0.0%)
Net loss on sale of property, plant and equipment and intangible assets (0.0%) -
Net realized foreign exchange gains (0.4%) (0.1%)
Operating profit margin 17.6% 20.7%
Add: Finance income/(cost) - net 1.9% (0.4%)
Taxation (5.0%) (5.8%)
Profit for the period margin 14.5% 14.5%
6. Other financial and operating data
South African Rand United States Dollar
Three Three Three Three
months months months months
ended ended ended ended
March 31, March 31, March 31, March 31,
2014 2013 2014 2013
Figures are in thousands except for vehicle data Unaudited Unaudited Unaudited Unaudited
Subscription revenue 232,609 186,294 21,954 17,583
Adjusted EBITDA 84,601 91,735 7,984 8,660
Cash and cash equivalents 830,449 147,702 78,380 13,941
Net cash 798,898 88,225 75,402 8,327
Capital expenditure 31,925 47,953 3,013 4,526
Vehicles under subscription 450,502 359,643 450,502 359,643
South African Rand amounts have been translated to US Dollar at the exchange rate of R10.5953 per $1.00, which was the R/$
exchange rate reported by the South African Reserve Bank as of March 31, 2014. The US Dollar figures may not compute as
they are rounded independently.
Registered office
Matrix Corner, Howick Close, Waterfall Park, Midrand
Directors
SR Bruyns* (Chairman), SB Joselowitz (CEO), E Banda*, HR Brody*, CH Ewing*, RA Frew*,
ML Pydigadu, F Roji (Alternate to HR Brody)*, CWR Tasker; AR Welton*
* Non-executive
Company secretary
Java Capital Trustees and Sponsors Proprietary Limited
Auditors
PricewaterhouseCoopers Inc.
Sponsor
Java Capital
5 June 2014
For more information on our results, please visit our website at: www.mixtelematics.com
Date: 05/06/2014 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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