TrackX Reports a 414% Increase in Revenues Over Same Six-Month Period in Previous Year, New CFO Announced
DENVER — May 30, 2017— TrackX Holdings Inc. (TSX.V:TKX) (“TrackX” or the “Company”), announces the financial and operational highlights from its second quarter ended March 31, 2017. All results are reported in Canadian dollars. A complete set of the March 31, 2017 Consolidated Financial Statements and Management’s Discussion & Analysis have been filed on SEDAR (www.sedar.com).
Financial Highlights
- Revenues for the six months ended March 31, 2017 were $2,960,693, a 414% increase over the $576,378 reported for the six months ended March 31, 2016.
- Revenues for the three months ended March 31, 2017 were $1,327,502, a 334% increase over the $306,311 reported for the three months ended March 31, 2016.
- Gross margin for the three months ended March 31, 2017 was $454,953, representing 34.3% of revenues versus a negative gross margin of ($146,376) for the comparable three-month period ending March 31, 2016.
- Adjusted EBITDA loss for the three months ended March 31, 2017 was $885,521 compared to a loss of $410,262 for the prior year’s comparable period.
“Several catalysts occurred during the quarter that contributed to our positive growth,” said President and CEO Tim Harvie. “We expanded our reach via our partnerships with Barcoding and All Pretium. Going forward, our oversubscribed private placement solidified the Company’s balance sheet to ensure that we can capitalize on new opportunities to grow our business.”
Selected Financial Information
| (Canadian dollars – in thousands except per share) | Six-month Period Ended March 31 | Three-month Period Ended March 31 | ||
| 2017 | 2016 | 2017 | 2016 | |
| Revenue | $ 2,961 | $ 576 | $ 1,328 | $ 306 |
| Gross Margin | 904 | (192) | 455 | (146) |
| Loss for the period | (1,594) | (894) | (1,036) | (467) |
| Loss per share | (0.03) | (0.14) | (0.02) | (0.06) |
| Adjusted EBITDA (Loss)* | (1,307) | (781) | (886) | (410) |
| * Adjusted EBITDA is a non-IFRS (international financial reporting standards) measure and excludes stock based compensation | ||||
Q2 2017 and Subsequent Period Operational Highlights:
- On May 10, 2017, TrackX Holdings Inc. completed a bought deal private placement for gross proceeds of $5.2 million with a syndicate of investment dealers led by Haywood Securities Inc. and including Canaccord Genuity Corp. and Paradigm Capital Inc.
- In February, the Company announced the completion of Phase 1 of its national roll-out with a leading U.S. used car retailer.
- Also in February, the Company announced its partnership with Barcoding, Inc., a leader in supply chain efficiency, accuracy and connectivity.
- In January, the Company announced a partnership with Mexico-based All Pretium Consulting Services, a consortium that focuses on digital transformation, Internet of Things (IoT) and big data solutions for large enterprises.
New CFO Appointment
In addition, the Company has appointed Mr. Gene McConnell, CA, of Denver, CO as Chief Financial Officer. Mr. McConnell is a partner with C Squared Solutions, LLC whose more than 30-year career includes serving as Chief Financial Officer, Chief Operating Officer and Controller for companies in the technology, software, service, cable, manufacturing, finance and medical and dental products sectors. The company and wishes to thank Mr. Mark Lotz of Vancouver who served as CFO as TrackX transitioned to a public company.
About TrackX
TrackX, based in Denver, Colorado, is an enterprise Industrial Internet of Things (IIoT) software platform provider leveraging multiple auto-ID technologies for the comprehensive management of physical assets. TrackX’s Global Asset Management for the Enterprise (G.A.M.E.) enables the IIoT by providing unique item level tracking, workflow processing, event management, alerts and powerful analytics to deliver solutions across a growing number of industries. This platform creates unprecedented visibility and business intelligence of man-to-machine and machine-to-machine interaction. TrackX delivers significant value to a growing list of Fortune 500 companies and for customers in industries such as transportation, beverage, brewery, healthcare, hi-tech, hospitality, mining, agriculture, horticulture, manufacturing and government.
For more information, please contact:
Knox Henderson, TrackX Holdings Inc.
khenderson@trackx.com
778-373-2003
Sean Peasgood, Sophic Capital
Sean@SophicCapital.com
416-565-2805
Neither TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. All statements that address future plans, activities, events or developments that the Company believes, expects or anticipates will or may occur including the Company’s anticipated pipeline and value of current and customer deployments and future opportunities are the managements best estimates and cannot be guaranteed or relied upon and is forward-looking information. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements in this news release, whether as a result of new information, future events or otherwise, except as required by law.