Short-form announcement: MiX Telematics reports first half of fiscal 2021 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
('MiX Telematics' or 'the Company' or 'the Group')
Short-form announcement: MiX Telematics reports first half of
fiscal 2021 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 generally
accepted accounting principles 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 short-form
announcement 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 2021 Highlights:
- Subscription revenue of R933 million, representing 91.5% of revenue
- Net subscriber base of over 767,000 subscribers
- Net income of R98 million
- Adjusted EBITDA of R308 million, representing a 30.2% adjusted
- Net cash generated from operating activities of R379 million
leading to positive free cash flow of R287 million
- Cash and cash equivalents of R575 million at period end
'MiX Telematics' results were highlighted by profitability and
cash generation that was significantly ahead of expectations.
We experienced modest signs of improvement within some customer
verticals and fleet segments due to increases in usage activity
from the COVID-related shutdowns seen in the first quarter,'
said Stefan Joselowitz, Chief Executive Officer of MiX Telematics.
Joselowitz continued, 'Our sharp focus on customer success and the
tangible ROI our comprehensive telematics platform can provide to
fleet operators has reinforced MiX's strategic value in the market.
We are confident this will generate a return to meaningful
subscription revenue growth once economic conditions normalize.'
Financial performance for the first half of fiscal 2021
Subscription revenue: Subscription revenue increased to
R933.1 million, an increase of 0.7% compared to R926.2 million for
the first half of fiscal 2020. Subscription revenue represented
91.5% of total revenue during the first half of fiscal 2021. On a
constant currency basis, subscription revenue decreased by 6.6%,
year over year. The decline in constant currency subscription
revenue was primarily due to the contraction in the Company's
subscriber base as a result of economic conditions attributable
to the COVID-19 pandemic. During the first half of fiscal 2021,
the Company's subscriber base contracted by a net 50,700 subscribers.
Total revenue: Total revenue was R1,019.4 million, a decrease of
3.8% compared to R1,060.0 million for the first half of fiscal 2020.
Total revenue decreased by 11.2% on a constant currency basis, year
over year. Hardware and other revenue was R86.3 million, a decrease
of 35.5%, compared to R133.8 million for the first half of fiscal
2020 as a result of a global economic slowdown following the
disruption caused by the COVID-19 pandemic.
Gross margin: Gross profit was R682.5 million, a decrease of
1.8% compared to R695.2 million for the first half of fiscal 2020.
Gross profit margin was 67.0%, compared to 65.6% for the first half
of fiscal 2020.
Operating margin: Operating profit was R127.7 million, compared to
R173.4 million in the first half of fiscal 2020. The operating margin
was 12.5%, compared to 16.4% in the first half of fiscal 2020.
Operating expenses represented 54.4% of revenue compared to 49.2% in
the first half of fiscal 2020.
Adjusted EBITDA: Adjusted EBITDA was R307.5 million compared to
R326.3 million for the first half of fiscal 2020. Adjusted EBITDA
margin was 30.2%, compared to 30.8% in the first half of fiscal 2020.
Profit for the period and earnings per share: Profit for the period
was R98.2 million, compared to R111.2 million in the first half of
fiscal 2020. Profit for the period included a net foreign exchange
loss of R3.2 million before tax, as well as a R17.3 million deferred
tax credit 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 2020, a net foreign exchange gain of R0.2 million was recognized
while the Company incurred a R11.0 million deferred tax charge on a
U.S. Dollar intercompany loan between MiX Telematics and MiX Investments.
Earnings per diluted ordinary share were 18 South African cents,
compared to 19 South African cents in the first half of fiscal 2020.
For the first half of fiscal 2021, the calculation was based on diluted
weighted average ordinary shares in issue of 558.2 million, compared to
574.5 million diluted weighted average ordinary shares in issue during
the first half of fiscal 2020.
The Company's effective tax rate was 16.8%, compared to 35.5% for the
first half of fiscal 2020. 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 30.0% compared to 29.5% in the
first half of fiscal 2020.
Adjusted earnings for the period and adjusted earnings per share:
Adjusted earnings for the period were R86.9 million, compared to
R127.5 million in the first half of fiscal 2020. Adjusted earnings per
diluted ordinary share were 16 South African cents, compared to 22 South
African cents for the first half of fiscal 2020.
Cash and Cash Equivalents and Cash Flow: At September 30, 2020, the
Company had R521.1 million of net cash and cash equivalents, compared
to R275.7 million at March 31, 2020.
The Company generated R378.7 million in net cash from operating activities
for the first half of fiscal 2021 and invested R91.3 million in capital
expenditures during the period (including investments in in-vehicle devices
of R45.2 million), leading to free cash flow of R287.3 million, compared to
free cash flow of R50.4 million for the first half of fiscal 2020. Capital
expenditures in the first half of fiscal 2020 were R178.3 million and
included in-vehicle devices of R122.4 million.
The Company utilized R36.9 million in financing activities, compared to
R171.3 million utilized during the first half of fiscal 2020. The cash
utilized in financing activities during the first half of fiscal 2021
mainly consisted 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.
The cash utilized during the first half of fiscal 2020 consisted primarily of
dividends paid of R44.8 million, share repurchases of R119.5 million and the
payment of lease liabilities of R7.0 million.
Global outbreak of COVID-19 could harm our business and impact operations and
The effects of the COVID-19 outbreak and measures taken in response thereto
are detailed in Item 1A. Risk Factors of our Quarterly Report on Form 10-Q for
Quarter 1 of fiscal 2021 filed with the SEC.
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 2021 fiscal year.
Summarized consolidated income statement
Six months ended Six months ended
September 30, September 30,
Figures are in thousands unless otherwise
Revenue 1,019,408 1,059,961
Operating profit 127,698 173,404
Adjusted EBITDA 307,547 326,293
Profit for the period attributable to
owners of the parent 98,207 111,204
Adjusted earnings attributable to owners
of the parent (1) 86,943 127,496
Headline earnings attributable to owners
of the parent 98,434 112,720
Basic earnings per share - (R) 0.18 0.20
Basic adjusted earnings per share - (R)(1) 0.16 0.23
Basic headline earnings per share - (R) 0.18 0.20
Dividends per share - (R) 0.08 0.08
Ordinary shares ('000)(2)
- in issue at September 30 551,064 550,118
- weighted average 547,569 558,401
- diluted weighted average 558,216 574,462
(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, 2020 figure excludes 53,816,750 (September 30, 2019: 53,816,750)
treasury shares held by MiX Investments, a wholly owned subsidiary of
Summarized consolidated statement of financial position
September 30, March 31,
Figures are in thousands unless otherwise
Non-current assets 1,606,517 1,686,866
Current assets 1,083,183 951,254
Total assets 2,689,700 2,638,120
EQUITY AND LIABILITIES
Equity 1,869,018 1,817,545
Non-current liabilities 286,674 327,117
Current liabilities 534,008 493,458
Total equity and liabilities 2,689,700 2,638,120
Net cash 521,145 275,655
Cash and cash equivalents 575,303 318,071
Net asset value per share (R) 3.39 3.32
The Board of Directors declared in respect of the second quarter of fiscal year
2021, which ended on September 30, 2020, a dividend of 4 South African cents per
ordinary share to be paid on Monday, November 23, 2020.
The details with respect to the dividends declared for ordinary shareholders
are as follows:
Last day to trade cum dividend Tuesday, November 17, 2020
Securities trade ex dividend Wednesday, November 18, 2020
Record date Friday, November 20, 2020
Payment date Monday, November 23, 2020
Share certificates may not be dematerialized or rematerialized between
Wednesday, November 18, 2020 and Friday, November 20, 2020, 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 604,880,384 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
Ex dividend on New York Stock Exchange (NYSE) Thursday, November 19, 2020
Record date Friday, November 20, 2020
Approximate date of currency conversion Monday, November 23, 2020
Approximate dividend payment date Tuesday, December 8, 2020
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 27,
2020. This short-form announcement is a summary of the full announcement
released on SENS, and published on the Group's website (FY-Q22021.pdf.) on
October 29, 2020. 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
email@example.com. Any investment decision should be based on the full
announcement available on the Company's website.
The full announcement is available at
RA Frew* (Chairman), SB Joselowitz (CEO), SR Bruyns*+ (Lead Independent
Director), JR Granara (CFO), F Futwa*+, IV Jacobs*+, F Roji Maplanka*+,
Company secretary Registered office
Statucor Proprietary Limited Matrix Corner, Howick Close, Waterfall
Deloitte & Touche Java Capital
October 29, 2020
Date: 29-10-2020 12:00:00
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