Cover
Cover - shares | 6 Months Ended | |
Sep. 30, 2020 | Oct. 16, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-36027 | |
Entity Registrant Name | MIX TELEMATICS LIMITED | |
Entity Incorporation, State or Country Code | T3 | |
Entity Address, Address Line One | 750 Park of Commerce Blvd | |
Entity Address, Address Line Two | Suite 100 | |
Entity Address, City or Town | Boca Raton | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33487 | |
City Area Code | (877) | |
Local Phone Number | 585-1088 | |
Title of 12(b) Security | American Depositary Shares, each representing 25 Ordinary Shares, no par value | |
Trading Symbol | MIXT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 604,880,384 | |
Amendment Flag | false | |
Entity Central Index Key | 0001576914 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2020 | Mar. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 33,836 | $ 17,953 |
Restricted cash | 798 | 699 |
Accounts receivables, net of allowances for doubtful accounts of $3.6 million and $4.3 million, respectively | 18,876 | 24,100 |
Inventory, net | 3,742 | 3,271 |
Prepaid expenses and other current assets | 6,802 | 7,375 |
Total current assets | 64,054 | 53,398 |
Property and equipment, net | 27,167 | 30,019 |
Goodwill | 39,603 | 37,923 |
Intangible assets, net | 16,059 | 15,007 |
Deferred tax assets | 3,497 | 3,108 |
Other assets | 4,070 | 4,200 |
Total assets | 154,450 | 143,655 |
Current liabilities: | ||
Short-term debt | 3,185 | 2,367 |
Accounts payables | 4,863 | 5,251 |
Accrued expenses and other liabilities | 18,835 | 14,839 |
Deferred revenue | 4,521 | 5,077 |
Total current liabilities | 31,404 | 27,534 |
Deferred tax liabilities | 10,540 | 11,436 |
Long-term accrued expenses and other liabilities | 5,053 | 5,660 |
Total liabilities | 46,997 | 44,630 |
Commitments and contingencies | ||
MiX Telematics Limited stockholders’ equity | ||
Preferred stock: 100 million shares authorized but not issued | 0 | 0 |
Common stock: 600.9 million and 604.9 million no-par value shares issued and outstanding as of March 31, 2020 and September 30, 2020, respectively | 67,347 | 66,522 |
Less treasury stock at cost: 54 million shares as of March 31, 2020 and September 30, 2020 | (17,315) | (17,315) |
Retained earnings | 70,846 | 67,482 |
Accumulated other comprehensive loss | (7,425) | (11,070) |
Additional paid-in capital | (6,005) | (6,599) |
Total MiX Telematics Limited stockholders’ equity | 107,448 | 99,020 |
Non-controlling interest | 5 | 5 |
Total stockholders’ equity | 107,453 | 99,025 |
Total liabilities and stockholders’ equity | $ 154,450 | $ 143,655 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2020 | Mar. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 4,280 | $ 3,602 |
Preference shares, authorized (in shares) | 100,000,000 | 100,000,000 |
Preference shares, issued (in shares) | 0 | 0 |
Ordinary shares, issued (in shares) | 604,900,000 | 600,900,000 |
Ordinary shares, outstanding (in shares) | 604,900,000 | 600,900,000 |
Treasury stock (in shares) | 54,000,000 | 54,000,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue | ||||
Total revenue | $ 30,948 | $ 36,661 | $ 58,445 | $ 72,944 |
Cost of revenue | ||||
Total cost of revenue | 10,297 | 12,445 | 18,875 | 24,673 |
Gross profit | 20,651 | 24,216 | 39,570 | 48,271 |
Operating expenses | ||||
Sales and marketing | 2,447 | 3,148 | 5,193 | 6,729 |
Administration and other | 13,631 | 14,616 | 27,122 | 29,402 |
Total operating expenses | 16,078 | 17,764 | 32,315 | 36,131 |
Income from operations | 4,573 | 6,452 | 7,255 | 12,140 |
Other (expense)/income | (77) | (52) | (175) | 323 |
Net interest income/(expense) | (70) | 4 | (140) | 77 |
Income before income tax expense | 4,426 | 6,404 | 6,940 | 12,540 |
Income tax expense | 974 | 3,058 | 1,066 | 4,198 |
Net income | 3,452 | 3,346 | 5,874 | 8,342 |
Less: Net income attributable to non-controlling interest | 0 | 0 | 0 | 0 |
Net income attributable to MiX Telematics Limited | $ 3,452 | $ 3,346 | $ 5,874 | $ 8,342 |
Net income per ordinary share | ||||
Basic (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 |
Diluted (in dollars per share) | 0.01 | 0.01 | 0.01 | 0.01 |
Net income per American Depository Share | ||||
Basic (in dollars per share) | 0.16 | 0.15 | 0.27 | 0.37 |
Diluted (in dollars per share) | $ 0.15 | $ 0.15 | $ 0.26 | $ 0.36 |
Ordinary shares | ||||
Weighted average (in shares) | 548,008 | 554,781 | 547,569 | 558,401 |
Diluted weighted average (in shares) | 558,951 | 570,011 | 558,829 | 574,606 |
American Depository Shares | ||||
Weighted average (in shares) | 21,920 | 22,191 | 21,903 | 22,336 |
Diluted weighted average (in shares) | 22,358 | 22,800 | 22,353 | 22,984 |
Subscription | ||||
Revenue | ||||
Total revenue | $ 27,623 | $ 32,099 | $ 53,498 | $ 63,737 |
Cost of revenue | ||||
Total cost of revenue | 7,676 | 9,417 | 15,025 | 18,712 |
Hardware and other | ||||
Revenue | ||||
Total revenue | 3,325 | 4,562 | 4,947 | 9,207 |
Cost of revenue | ||||
Total cost of revenue | $ 2,621 | $ 3,028 | $ 3,850 | $ 5,961 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 3,452 | $ 3,346 | $ 5,874 | $ 8,342 |
Other comprehensive (loss)/income | ||||
Foreign currency translation adjustments, net of tax | 1,561 | (5,573) | 3,645 | (3,846) |
Total comprehensive (loss)/income | 5,013 | (2,227) | 9,519 | 4,496 |
Less: Total comprehensive income attributable to non-controlling interest | 0 | 0 | 0 | 0 |
Total comprehensive (loss)/income attributable to MiX Telematics Limited | $ 5,013 | $ (2,227) | $ 9,519 | $ 4,496 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Treasury Stock | Accumulated Other Comprehensive Income/(Loss) | Accumulated Other Comprehensive Income/(Loss)Cumulative Effect, Period of Adoption, Adjustment | Additional Paid-In Capital | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Total MiX Telematics Limited Stockholders’ Equity | Total MiX Telematics Limited Stockholders’ EquityCumulative Effect, Period of Adoption, Adjustment | Non-Controlling Interest |
Beginning balance (in shares) at Mar. 31, 2019 | 601,948 | |||||||||||
Beginning balance at Mar. 31, 2019 | $ 116,941 | $ (262) | $ 68,200 | $ (9,227) | $ 2,115 | $ (22) | $ (6,902) | $ 62,750 | $ (240) | $ 116,936 | $ (262) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | |||||||||||
Net income | $ 8,342 | 8,342 | 8,342 | |||||||||
Other comprehensive loss | (3,846) | (3,846) | (3,846) | |||||||||
Issuance of common stock in relation to stock options and SARs exercised (in shares) | 1,988 | |||||||||||
Issuance of common stock in relation to stock options and SARs exercised | 0 | |||||||||||
Stock-based compensation | 457 | 457 | 457 | |||||||||
Dividends | (3,095) | (3,095) | (3,095) | |||||||||
Purchase of treasury stock | (8,222) | (8,222) | (8,222) | |||||||||
Ending balance (in shares) at Sep. 30, 2019 | 603,936 | |||||||||||
Ending balance at Sep. 30, 2019 | 110,315 | $ 68,200 | (17,449) | (1,753) | (6,445) | 67,757 | 110,310 | $ 5 | ||||
Beginning balance (in shares) at Jun. 30, 2019 | 602,472 | |||||||||||
Beginning balance at Jun. 30, 2019 | 121,950 | $ 68,200 | (9,227) | 3,820 | (6,791) | 65,943 | 121,945 | 5 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 3,346 | 3,346 | 3,346 | |||||||||
Other comprehensive loss | (5,573) | (5,573) | (5,573) | |||||||||
Issuance of common stock in relation to stock options and SARs exercised (in shares) | 1,464 | |||||||||||
Issuance of common stock in relation to stock options and SARs exercised | 0 | |||||||||||
Stock-based compensation | 346 | 346 | 346 | |||||||||
Dividends | (1,532) | (1,532) | (1,532) | |||||||||
Purchase of treasury stock | (8,222) | (8,222) | (8,222) | |||||||||
Ending balance (in shares) at Sep. 30, 2019 | 603,936 | |||||||||||
Ending balance at Sep. 30, 2019 | $ 110,315 | $ 68,200 | (17,449) | (1,753) | (6,445) | 67,757 | 110,310 | 5 | ||||
Beginning balance (in shares) at Mar. 31, 2020 | 600,900 | 600,934 | ||||||||||
Beginning balance at Mar. 31, 2020 | $ 99,025 | $ 66,522 | (17,315) | (11,070) | (6,599) | 67,482 | 99,020 | 5 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 5,874 | 5,874 | 5,874 | |||||||||
Other comprehensive loss | 3,645 | 3,645 | 3,645 | |||||||||
Issuance of common stock in relation to stock options and SARs exercised (in shares) | 3,946 | |||||||||||
Issuance of common stock in relation to stock options and SARs exercised | 825 | $ 825 | 825 | |||||||||
Stock-based compensation | 594 | 594 | 594 | |||||||||
Dividends | $ (2,510) | (2,510) | (2,510) | |||||||||
Ending balance (in shares) at Sep. 30, 2020 | 604,900 | 604,880 | ||||||||||
Ending balance at Sep. 30, 2020 | $ 107,453 | $ 67,347 | (17,315) | (7,425) | (6,005) | 70,846 | 107,448 | 5 | ||||
Beginning balance (in shares) at Jun. 30, 2020 | 601,019 | |||||||||||
Beginning balance at Jun. 30, 2020 | 102,607 | $ 66,522 | (17,315) | (8,986) | (6,306) | 68,687 | 102,602 | 5 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 3,452 | 3,452 | 3,452 | |||||||||
Other comprehensive loss | 1,561 | 1,561 | 1,561 | |||||||||
Issuance of common stock in relation to stock options and SARs exercised (in shares) | 3,861 | |||||||||||
Issuance of common stock in relation to stock options and SARs exercised | 825 | $ 825 | 825 | |||||||||
Stock-based compensation | 301 | 301 | 301 | |||||||||
Dividends | $ (1,293) | (1,293) | (1,293) | |||||||||
Ending balance (in shares) at Sep. 30, 2020 | 604,900 | 604,880 | ||||||||||
Ending balance at Sep. 30, 2020 | $ 107,453 | $ 67,347 | $ (17,315) | $ (7,425) | $ (6,005) | $ 70,846 | $ 107,448 | $ 5 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) | 3 Months Ended | 6 Months Ended | ||||||
Sep. 30, 2020R / shares | Sep. 30, 2020$ / shares | Sep. 30, 2019R / shares | Sep. 30, 2019$ / shares | Sep. 30, 2020R / shares | Sep. 30, 2020$ / shares | Sep. 30, 2019R / shares | Sep. 30, 2019$ / shares | |
Statement of Stockholders' Equity [Abstract] | ||||||||
Dividends declared (in ZAR/USD per share) | (per share) | R 0.04 | $ 0.3 | R 0.04 | $ 0.3 | R 0.04 | $ 0.2 | R 0.04 | $ 0.2 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities | ||
Cash generated from operations | $ 22,295 | $ 17,218 |
Interest received | 206 | 419 |
Interest paid | (153) | (156) |
Income tax paid | (1,590) | (2,915) |
Net cash provided by operating activities | 20,758 | 14,566 |
Cash flows from investing activities | ||
Acquisition of property and equipment – in-vehicle devices | (2,590) | (8,422) |
Acquisition of property and equipment – other | (160) | (516) |
Proceeds from the sale of property and equipment | 0 | 1,327 |
Acquisition of intangible assets | (1,972) | (2,641) |
Loans to external parties | 0 | (350) |
Net cash used in investing activities | (4,722) | (10,602) |
Cash flows from financing activities | ||
Proceeds from issuance of ordinary shares in relation to stock options exercised | 825 | 0 |
Cash paid for ordinary shares repurchased | 0 | (8,222) |
Cash paid on dividends to MiX Telematics Limited stockholders | (2,506) | (3,084) |
Movement in short-term debt | 740 | 539 |
Net cash used in financing activities | (941) | (10,767) |
Net (decrease)/increase in cash and cash equivalents, and restricted cash | 15,095 | (6,803) |
Cash and cash equivalents, and restricted cash at beginning of the period | 18,652 | 27,838 |
Effect of exchange rate changes on cash and cash equivalents, and restricted cash | 887 | (294) |
Cash and cash equivalents, and restricted cash at end of the period | $ 34,634 | $ 20,741 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 6 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Organization and Summary of Significant Accounting Policies | Organization and Summary of Significant Accounting Policies Nature of the Business MiX Telematics Limited (the "Company") is a leading global provider of fleet and mobile asset management solutions delivered as Software-as-a-Service ("SaaS"). The Company’s solutions provide enterprise fleets, small fleets and consumers with solutions for safety, efficiency, risk and security. The Company is incorporated and domiciled in South Africa, with the principal executive office in Boca Raton, Florida. Basis of preparation and consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States ("GAAP") and reflect, in the opinion of management, all adjustments, consisting of normal recurring adjustments and accruals, which are necessary for a fair statement of the results of the interim periods presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC"). The unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated on consolidation. These unaudited condensed consolidated financial statements should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended March 31, 2020 filed with the SEC on July 23, 2020. Use of estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires the use of estimates and assumptions that affect the amounts reported and disclosed. Significant estimates include, but are not limited to, allowances for doubtful accounts, the assessment of expected cash flows used in evaluating goodwill and long-lived assets for impairment, the amortization period for deferred commissions, the determination of useful lives of the Company’s customer relationships, contingencies, the classification of devices and other hardware as in-vehicle devices (equipment) versus inventory based on the future expectation of the different types of customer contracts, income and deferred taxes, unrecognized tax benefits and valuation allowances on deferred tax assets. Actual results could differ from those estimates, and such differences may be material to the consolidated financial statements. As of September 30, 2020, the global outbreak of COVID-19 has had and, we believe, will continue to have an adverse impact on global economies and financial markets. We have taken into account the impact of COVID-19, to the extent possible, on our financial statements. However, future changes in economic conditions related to COVID-19 could have an impact on future estimates and judgements used, particularly those relating to goodwill sensitivities and impairment assessments. Summary of significant accounting policies There have been no changes to the Company’s significant accounting policies disclosed in the Company’s Annual Report on Form 10-K for the year ended March 31, 2020, filed with the SEC on July 23, 2020, that have had a material impact on the Company’s Condensed Consolidated Financial Statements and related notes. |
Revenue from contracts with cus
Revenue from contracts with customers | 6 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from contracts with customers | Revenue from contracts with customers The Company provides fleet and mobile asset management solutions. The principal revenue streams are (1) Subscription and (2) Hardware and other. Subscription revenue is recognized over time and hardware and other revenue is recognized at a point-in-time. To provide services to customers, a device is required which collects and transmits information collected from the vehicle or other asset. Fleet customers may also obtain other items of hardware, virtually all of which are functionally-dependent on the device. Some customers obtain control of the device and other hardware (where legal title transfers to the customer); while other customers do not (where legal title remains with the Company). A contract arises on the acceptance of a customer’s purchase order, which is typically executed in writing. Contract modifications As a result of the adverse impact that the COVID-19 pandemic has had on certain of the Company’s customers, various pricing concessions relating to subscriptions, in the form of payment holidays and discounts on monthly billings, were granted during the six months ended September 30, 2020. These pricing concessions were accounted for as contract modifications under ASC 606 Revenue from Contracts with Customers ("ASC 606"), which had the effect of reducing the transaction prices allocated to the remaining distinct performance obligations in the contracts. Accordingly, the effect of the pricing concessions is being recognized as those remaining subscription services are provided. A contract asset of $0.6 million, representing amounts that will only be billed in future periods, was recognized as of September 30, 2020, and is included in Prepaid expenses and other current assets on the Condensed Consolidated Balance Sheet. Contract liabilities When customers are invoiced in advance for subscription services that will be provided over periods of more than one month, or pay in advance of service periods of more t han one month, contract liabilities are recorded. Deferred revenue as of March 31, 2020 and September 30, 2020 was $5.1 million and $4.5 million, respectively. During the quarter ended September 30, 2019 and September 30, 2020, revenue of $0.9 m illion and $0.6 million, respectively, was recognized which was included in the deferred revenue balances at the beginning of each quarter. Revenue of $2.8 million and $1.7 million was recognized for the six months ended September 30, 2019 and September 30, 2020, respectively, which had been included in deferred revenue balances at the beginning of each such financial year. Contract acquisition costs Commissions payable to sales employees and external third parties which are incurred to acquire contracts are capitalized and amortized, unless the amortization period is 12 months or less, in which instance they are expensed immediately. Deferred commissions were $3.6 million and $3.5 million as of March 31, 2020 and September 30, 2020, respectively, and are included in Other assets on the Condensed Consolidated Balance Sheet. The following is a summary of the amortization expense recognized (in thousands): Three Months Ended September 30, Six Months Ended September 30, 2019 2020 2019 2020 Amortization recognized during the quarter: $ (863) $ (782) $ (1,674) $ (1,475) – Cost of revenue (external commissions) (622) (563) (1,202) (1,048) – Sales and marketing (internal commissions) (241) (219) (472) (427) |
Credit risk related to accounts
Credit risk related to accounts receivables | 6 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Credit risk related to accounts receivables | Credit risk related to accounts receivables The movements in the allowance for doubtful accounts are as follows (in thousands): Six Months Ended September 30, 2019 2020 Balance at April 1 $ 3,019 $ 3,602 Bad debt provision 1,554 2,273 Write-offs, net of recoveries (287) (1,748) Foreign currency translation differences (162) 153 Balance at September 30 $ 4,124 $ 4,280 Overview of the Company’s exposure to credit risk from customers The maximum exposure to credit risk at the reporting date is the carrying value of each receivable and loan to external parties, net of impairment losses where relevant. Other than 18% of the gross receivable balance relating to four debtors as of September 30, 2020 (as of March 31, 2020: 15% of the gross receivable balance relating to four debtors), the Company has no significant concentration of credit risk, due to its spread of customers across various operations and geographical locations. The Company does not hold any collateral as security. Net accounts receivables as of March 31, 2020 and September 30, 2020 of $2.9 million and $1.3 million, respectively, are pledged as security for the Company’s overdraft facilities. |
Property and equipment
Property and equipment | 6 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, and equipment | Property and equipment Property and equipment comprises owned and right of use assets. The Company leases many assets including property, vehicles, machinery and IT equipment. The cost and accumulated depreciation of owned equipment are as follows (in thousands): March 31, September 30, Owned equipment Equipment, vehicles and other $ 6,114 $ 6,461 In-vehicle devices 52,824 53,564 Less: accumulated depreciation and impairments (35,397) (39,033) Owned equipment, net $ 23,541 $ 20,992 Total depreciation expense related to owned equipment during the three months ended September 30, 2019 and 2020 was $3.4 million and $3.0 million, respectively. Depreciation relating to owned equipment was $6.7 million and $5.8 million during the six months ended September 30, 2019 and 2020, respectively. Depreciation expense related to in-vehicle devices is included in subscription cost of revenue. The cost and accumulated depreciation of right-of-use property and equipment are as follows (in thousands): March 31, September 30, Right-of-use assets Property $ 7,724 $ 8,073 Equipment, vehicles and other 250 191 Less: accumulated depreciation (1,496) (2,089) Right of use property and equipment, net $ 6,478 $ 6,175 |
Intangible assets
Intangible assets | 6 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets | Intangible assets Intangible assets comprise the following (in thousands): As of March 31, 2020 As of September 30, 2020 Useful life (in years) Gross Carrying amount Accumulated amortization Net Gross Carrying amount Accumulated amortization Net Patents and trademarks 3 - 20 $ 76 $ (45) $ 31 $ 60 $ (31) $ 29 Customer relationships 2 - 15 2,600 (2,068) 532 2,643 (2,195) 448 Internal-use software, technology and other 1 - 18 26,508 (12,064) 14,444 29,785 (14,203) 15,582 Total $ 29,184 $ (14,177) $ 15,007 $ 32,488 $ (16,429) $ 16,059 |
Accrued expenses and other liab
Accrued expenses and other liabilities | 6 Months Ended |
Sep. 30, 2020 | |
Payables and Accruals [Abstract] | |
Accrued expenses and other liabilities | Accrued expenses and other liabilities Accrued expenses comprise the following (in thousands): March 31, September 30, Current: Product warranties $ 601 $ 600 Maintenance 357 504 Employee-related accruals 5,296 7,096 Lease liabilities 1,094 1,489 Accrued income tax payable 736 1,546 Other accruals 6,755 7,600 Total current $ 14,839 $ 18,835 Non-current: Lease liabilities $ 5,413 $ 4,824 Other liabilities 247 229 Total non-current $ 5,660 $ 5,053 Product warranties The Company provides warranties on certain products and undertakes to repair or replace items that fail to perform satisfactorily. Management estimates the related provision for future warranty claims based on historical warranty claim information, the product lifetime, as well as recent trends that might suggest that past cost information may differ from future claims. The table below provides details of the movement in the accrual (in thousands): Six Months Ended September 30, 2019 2020 Product warranties Balance at April 1 $ 777 $ 616 Statement of Income charge 156 43 Utilized (268) (81) Foreign currency translation difference (28) 33 Balance at September 30 $ 637 $ 611 Non-current portion (included in other liabilities) $ 18 $ 11 Current portion $ 619 $ 600 |
Income taxes
Income taxes | 6 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxesOur income tax provision reflects our estimate of the effective tax rates expected to be applicable for the full fiscal years, adjusted for any discrete events which are recorded in the period they occur. The estimates are re-evaluated each quarter based on our estimated tax expense for the full fiscal year. Our effective tax rate was 33.5% for the six months ended September 30, 2019 compared to 15.4% for the six months ended September 30, 2020. Our effective tax rate was 47.8% for the three months ended September 30, 2019 compared to 22.0% for the three months ended September 30, 2020. Ignoring the impact of foreign exchange gains and losses net of tax, the e ffective tax rate for the six months |
Earnings per share
Earnings per share | 6 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per share | Earnings per share Basic Basic earnings per share is calculated by dividing the income attributable to ordinary shareholders of the parent by the weighted average number of ordinary shares in issue during the period. The net income and weig hted average number of shares used in the calculation of basic and diluted earnings per share are as follows (in thousands, except per share data): Three Months Ended September 30, Six Months Ended September 30, 2019 2020 2019 2020 Numerator (basic) Net income attributable to ordinary shareholders $ 3,346 $ 3,452 $ 8,342 $ 5,874 Denominator (basic) Weighted-average number of ordinary shares in issue 554,781 548,008 558,401 547,569 Basic earnings per share $ 0.01 $ 0.01 $ 0.01 $ 0.01 American Depository Shares*: Net income attributable to ordinary shareholders $ 3,346 $ 3,452 $ 8,342 $ 5,874 Weighted-average number of American Depository Shares in issue 22,191 21,920 22,336 21,903 Basic earnings per American Depository share $ 0.15 $ 0.16 $ 0.37 $ 0.27 *One American Depository Share is the equivalent of 25 ordinary shares. Diluted Diluted earnings per share is calculated by dividing the diluted income attributable to ordinary shareholders by the diluted weighted average number of ordinary shares in issue during the period. Stock options, stock appreciation rights, performance share s and restricted share units g ranted to employees under the TeliMatrix Group Executive Incentive Scheme and the MiX Telematics Long-Term Incentive Plan ("LTIP") are considered to be potential ordinary shares. They have been included in the determination of diluted earnings per share if the required performance condition (if applicable) would have been met based on the performance up to the reporting date, and to the extent to which they are dilutive. Three Months Ended September 30, Six Months Ended September 30, 2019 2020 2019 2020 Numerator (diluted) Diluted net income attributable to ordinary shareholders $ 3,346 $ 3,452 $ 8,342 $ 5,874 Denominator (diluted) Weighted-average number of ordinary shares in issue 554,781 548,008 558,401 547,569 Adjusted for: – potentially dilutive effect of stock appreciation rights 13,482 9,339 14,358 9,517 – potentially dilutive effect of stock options and restricted share units 1,748 1,604 1,847 1,743 Diluted-weighted average number of ordinary shares in issue 570,011 558,951 574,606 558,829 Diluted earnings per share $ 0.01 $ 0.01 $ 0.01 $ 0.01 American Depository Shares*: Diluted net income attributable to ordinary shareholders $ 3,346 $ 3,452 $ 8,342 $ 5,874 Diluted weighted-average number of American Depository Shares in issue 22,800 22,358 22,984 22,353 Diluted earnings per American Depository share $ 0.15 $ 0.15 $ 0.36 $ 0.26 *One American Depository Share is the equivalent of 25 ordinary shares. |
Segment information
Segment information | 6 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment information | Segment information The Company has 6 reportable segments, which are based on the geographical location of the 5 Regional Sales Offices ("RSOs") and also includes the Central Services Organization ("CSO"). CSO is the central services organization that wholesales products and services to RSOs which, in turn, interface with our end-customers, distributors and dealers. CSO is also responsible for the development of hardware and software platforms and provides common marketing, product management, technical and distribution support to each of the other reportable segments. CSO is a reportable segment because it produces discrete financial information which is reviewed by the chief operating decision maker ("CODM") and has the ability to generate external revenues. The CODM has been identified collectively as the executive committee and the Chief Executive Officer who make strategic decisions. The performance of the reportable segments has been measured and evaluated by the CODM using Segment Adjusted EBITDA, which is a measure that uses net income, determined under International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board, as a starting point. Segment assets are not disclosed because such information is not reviewed by the CODM. The following table provides revenue and Segment Adjusted EBITDA (in thousands): Three Months Ended September 30, 2019 Subscription revenue (1) Hardware and other revenue (2) Total revenue Segment Adjusted EBITDA Regional Sales Offices Africa $ 17,868 $ 1,438 $ 19,306 $ 8,585 Europe 2,862 760 3,622 1,367 Americas 5,675 454 6,129 3,006 Middle East and Australasia 4,317 1,623 5,940 2,814 Brazil 1,350 286 1,636 671 Total Regional Sales Offices 32,072 4,561 36,633 16,443 Central Services Organization 27 1 28 (2,530) Total Segment Results $ 32,099 $ 4,562 $ 36,661 $ 13,913 1. Subscription revenue is recognized over time. 2. Hardware and other revenue is recognized at a point in time. Three Months Ended September 30, 2020 Subscription revenue (1) Hardware and other revenue (2) Total revenue Segment Adjusted EBITDA Regional Sales Offices Africa $ 14,855 $ 1,635 $ 16,490 $ 7,249 Europe 2,919 474 3,393 1,536 Americas 4,786 240 5,026 2,170 Middle East and Australasia 4,118 948 5,066 2,405 Brazil 928 28 956 363 Total Regional Sales Offices 27,606 3,325 30,931 13,723 Central Services Organization 17 — 17 (1,674) Total Segment Results $ 27,623 $ 3,325 $ 30,948 $ 12,049 1. Subscription revenue is recognized over time. 2. Hardware and other revenue is recognized at a point in time. Six Months Ended September 30, 2019 Subscription revenue (1) Hardware and other revenue (2) Total revenue Segment Adjusted EBITDA Regional Sales Offices Africa $ 35,554 $ 2,819 $ 38,373 $ 16,942 Europe 5,649 1,317 6,966 2,438 Americas 11,337 1,340 12,677 5,364 Middle East and Australasia 8,578 3,246 11,824 5,568 Brazil 2,567 447 3,014 1,294 Total Regional Sales Offices 63,685 9,169 72,854 31,606 Central Services Organization 52 38 90 (5,175) Total Segment Results $ 63,737 $ 9,207 $ 72,944 $ 26,431 1. Subscription revenue is recognized over time. 2. Hardware and other revenue is recognized at a point in time. Six Months Ended September 30, 2020 Subscription revenue (1) Hardware and other revenue (2) Total revenue Segment Adjusted EBITDA Regional Sales Offices Africa $ 28,778 $ 2,236 $ 31,014 $ 14,494 Europe 5,769 608 6,377 2,838 Americas 8,961 395 9,356 3,578 Middle East and Australasia 7,999 1,657 9,656 4,323 Brazil 1,959 51 2,010 773 Total Regional Sales Offices 53,466 4,947 58,413 26,006 Central Services Organization 32 — 32 (3,537) Total Segment Results $ 53,498 $ 4,947 $ 58,445 $ 22,469 1. Subscription revenue is recognized over time. 2. Hardware and other revenue is recognized at a point in time. A reconciliation of the segment results to income before income tax expense is disclosed below (in thousands). Three Months Ended September 30, Six Months Ended September 30, 2019 2020 2019 2020 Segment Adjusted EBITDA $ 13,913 $ 12,049 $ 26,431 $ 22,469 Corporate and consolidation entries (2,221) (2,507) (3,977) (4,837) Operating lease costs (1) (419) (399) (727) (791) Product development costs (2) (299) (271) (690) (514) Depreciation and amortization (4,401) (3,836) (8,653) (7,464) Impairment of long-lived assets — (1) — (1) Stock-based compensation costs (178) (301) (289) (594) Decrease/(increase) in restructuring costs (3) 1 (153) 1 (997) Net profit/(loss) on sale of property and equipment 40 (7) 356 (8) Net foreign exchange (losses)/gains (36) (78) 11 (183) Net interest income/(expense) 4 (70) 77 (140) Income before income tax expense for the period $ 6,404 $ 4,426 $ 12,540 $ 6,940 1. For the purposes of calculating Segment Adjusted EBITDA, operating leases have been capitalized, except for leases with a term of no more than 12 months or leases of low value assets. Where operating leases are capitalized for segment purposes, the amortization of the right-of-use asset and the interest on the operating lease liability are excluded from the Segment Adjusted EBITDA. Therefore, in order to reconcile Segment Adjusted EBITDA to income before taxes, the total lease expense in respect of operating leases needs to be deducted. 2. For segment reporting purposes, product development costs, which do not meet the capitalization requirements under ASC 730 Research and Development or under ASC 985 Software , are capitalized and amortized. The amortization is excluded from Segment Adjusted EBITDA. In order to reconcile Segment Adjusted EBITDA to net income before taxes, product development costs capitalized for segment reporting purposes need to be deducted. 3. For the three months ended September 30, 2020, $0.1 million of the restructuring costs related to the North America reporting segment. For the six months ended September 30, 2020, $0.6 million, $0.2 million and $0.1 million of the restructuring costs related to the CSO, Africa, and North America reporting segments, respectively. No single customer accounted for 10% or more of the Company’s total revenue for the three or six months ended September 30, 2019 and 2020. No single customer accounted for 10% or more of the Company’s accounts receivables as of March 31, 2020 or September 30, 2020. |
Stock-based compensation plan
Stock-based compensation plan | 6 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based compensation plan | Stock-based compensation plan The Company has issued share incentives under two equity-classified incentive plans, the TeliMatrix Group Executive Incentive Scheme and the LTIP, to directors and certain key employees within the Company. Since the introduction of the LTIP during 2014, no further awards have been made in terms of the TeliMatrix Group Executive Incentive Scheme. The LTIP provides for three types of grants to be issued, namely performance shares, restricted share units ("RSUs") or stock appreciation rights ("SARs"). As of September 30, 2020, there were 47,090,000 s hares reserved for future issuance under the LTIP. The total stock-based compensation expense recognized during the three months ended September 30, 2019 and 2020 was $0.2 million and $0.3 million, respectively. T otal stock-based compensation expense recognized during the six months ended September 30, 2019 and 2020 was $0.3 million and $0.6 million, respectively. Stock appreciation rights granted under the LTIP The following table summarizes the activities for the unvested SARs: Number of SARs Weighted- Weighted Average Contractual Remaining Term (years) Aggregate Intrinsic Values (in thousands) Outstanding as of April 1, 2020 32,943,750 31 Granted 11,200,000 35 Exercised (900,470) 19 Forfeited (33,905) 19 Outstanding as of September 30, 2020 43,209,375 32 3.76 Vested and expected to vest as of September 30, 2020 41,702,500 32 2.96 3,206 Vested as of September 30, 2020 13,071,875 17 1.79 2,367 As of September 30, 2020, there was $2.4 million of unr ecogn ized compensation cost related to unvested SARs. This amount is expected to be recognized over a weighted-average p eriod of 4.62 years . Share Options During the three months ended September 30, 2020, the remaining 3,500,000 share options under the Telimatrix Group Executive Incentive Scheme were exercised by the group executives at an award price of 24 U.S. cents* per share. * The award price was denominated in South African cents. U.S. currency amounts are based on a ZAR:USD exchange rate of R17.003 as of September 30, 2020. Restricted share units granted under the LTIP Under the LTIP, RSUs may be issued to certain directors and key employees. The scheme rules allow for a maximum of 2 million RSUs to be granted in any financial year and for a maximum of 12 million RSUs to be granted in aggregate over the life of the plan. 2 million time-based RSUs were granted for the first time under the scheme on June 1, 2020, and will vest in tranches of 50% per annum, commencing on the second anniversary of the grant date. Vesting is conditional upon remaining employed with the Company. Management estimates forfeiture to be approximately 5%. Settlement will take place in the Company’s shares. The Company has no legal or constructive obligation to settle the RSUs in cash. The weighted average grant date fair value per RSU granted was 30 U.S. cents**. The grant date fair value was determined by deducting the present value of expected dividends to be paid per share prior to vesting from the closing market price of the Company’s shares on the grant date. The unrecognized compensation cost related to unvested RSUs as of September 30, 2020 was $0.5 million, which will be recognized over a weighted average period of 2.5 years. **U.S. currency amounts are based on a ZAR:USD exchange rate of R17.003 as of September 30, 2020. |
Debt
Debt | 6 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company and its subsidiaries have unlimited borrowing capacity as specified in their respective Memorandums of Incorporation. As of March 31, 2020 and September 30, 2020, debt comprised bank overdrafts of $2.4 million and $3.2 million, respectively. Net accounts receivables as of March 31, 2020 and September 30, 2020 of $2.9 million and $1.3 million, respectively, are pledged as security for the Company’s overdraft facilities. Details of undrawn facilities are shown below: Interest rate March 31, September 30, Undrawn borrowing facilities at floating rates include: – Standard Bank Limited: Overdraft SA Prime* less 1.2% $ 1,204 $ 579 Vehicle and asset finance SA Prime* less 1.2% 474 500 Working capital facility SA Prime* less 0.25% 1,395 1,470 – Nedbank Limited overdraft SA Prime* less 2% 558 588 $ 3,631 $ 3,137 *South African prime interest rate As of March 31, 2020 and September 30, 2020, the prime interest rate was 8.75 % and 7.00%, respectively. The Standard Bank Limited and Nedbank Limited facilities have no fixed renewal date and are repayable on demand. The facility from Nedbank Limited is unsecured. |
Restructuring costs
Restructuring costs | 6 Months Ended |
Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring costs | Restructuring costsDuring the three and six months ended September 30, 2020, the Company incurred $0.2 million and $1.0 million of restructuring costs, respectively, as a result of measures to minimize the adverse economic and business effect of the COVID-19 pandemic and to re-align resources with the Company's current business outlook and cost structure. The restructuring costs comprised employee termination benefits. $0.6 million, $0.2 million and $0.1 million of the restructuring costs for the six months ended September 30, 2020, related to the CSO, Africa, and North America reporting segments, respectively. As of September 30, 2020, all of the restructuring costs had been paid except for $0.1 million in respect of the Africa reporting segment, which is expected to be settled by December 31, 2020. Restructuring costs are included in Administration and other expenses in the Condensed Consolidated Statement of Income. |
Contingencies
Contingencies | 6 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Service agreement In terms of an amended network services agreement with Mobile Telephone Networks Proprietary Limited ("MTN"), MTN is entitled to claw back payments from MiX Telematics Africa Proprietary Limited, a subsidiary of the Company, in the event of early cancellation of the agreement or certain base connections not being maintained over the term of the agreement. No connection incentive s will be received in terms of the amended network services agreement. The maximum potential liability under the arrangement as of March 31, 2020 and September 2020 was $1.9 million and $1.9 million, respectively. No loss is consider ed probable under this arrangement. Competition Commission of South Africa matter On April 15, 2019 the Competition Commission of South Africa ("Commission") referred a matter to the Competition Tribunal of South Africa ("Tribunal"). The Commission contends that the Company and a number of its channel partners have engaged in market division. Should the Tribunal rule against MiX Telematics, the Company may be liable to an administrative penalty in terms of the Competition Act, No. 89 of 1998. The Company had cooperated fully with the Commission during its preliminary investigation. We cannot predict the timing of a resolution or the ultimate outcome of the matter, however, the Company and its external legal advisers continue to believe that we have consistently adhered to all applicable laws and regulations and that the referral from the Commission is without merit. We have therefore not made any provisions for this matter as we do not believe that an outflow of economic resources is probable. The Ugandan Value Added Tax ("VAT") matter The Ugandan Revenue Authorities (“URA”) have reviewed MiX Telematics’ cross-border services and assert that VAT is payable on these imported services in terms of the place of supply rules included within its local VAT legislation. On January 18, 2018, MiX Telematics East Africa Limited (“MiX East Africa”) instituted proceedings in the Tax Appeals Tribunal to challenge the URA’s decision on this matter based on the interpretation of the law and calculation errors by the URA. MiX East Africa appeared in front of the Tax Appeals Tribunal on a number of occasions to present its defense, but the Tax Appeals Tribunal ruled in favor of the URA. On September 19, 2019, MiX East Africa appealed the decision to the High Court of Uganda. This matter is ongoing, and provisions have been made based on current information at hand. |
Subsequent events
Subsequent events | 6 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent events | Subsequent events Other than the items below, the directors are not aware of any matter material or otherwise arising since September 30, 2020 and up to the date of this report, not otherwise dealt with herein. Dividend declared The Board of Directors declared, in respect of the three months ended September 30, 2020, a dividend of 4 South African cents per ordinary share and 1 South African Rand per ADS, which will be paid on December 8, 2020 to shareholders on record as of the close of business on November 20, 202 0. |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of preparation | The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States ("GAAP") and reflect, in the opinion of management, all adjustments, consisting of normal recurring adjustments and accruals, which are necessary for a fair statement of the results of the interim periods presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC"). |
Consolidation | The unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated on consolidation.These unaudited condensed consolidated financial statements should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended March 31, 2020 filed with the SEC on July 23, 2020. |
Use of estimates | Use of estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires the use of estimates and assumptions that affect the amounts reported and disclosed. Significant estimates include, but are not limited to, allowances for doubtful accounts, the assessment of expected cash flows used in evaluating goodwill and long-lived assets for impairment, the amortization period for deferred commissions, the determination of useful lives of the Company’s customer relationships, contingencies, the classification of devices and other hardware as in-vehicle devices (equipment) versus inventory based on the future expectation of the different types of customer contracts, income and deferred taxes, unrecognized tax benefits and valuation allowances on deferred tax assets. Actual results could differ from those estimates, and such differences may be material to the consolidated financial statements. As of September 30, 2020, the global outbreak of COVID-19 has had and, we believe, will continue to have an adverse impact on global economies and financial markets. We have taken into account the impact of COVID-19, to the extent possible, on our financial statements. However, future changes in economic conditions related to COVID-19 could have an impact on future estimates and judgements used, particularly those relating to goodwill sensitivities and impairment assessments. |
Revenue from contracts with c_2
Revenue from contracts with customers (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Recognized Amortization Expense | The following is a summary of the amortization expense recognized (in thousands): Three Months Ended September 30, Six Months Ended September 30, 2019 2020 2019 2020 Amortization recognized during the quarter: $ (863) $ (782) $ (1,674) $ (1,475) – Cost of revenue (external commissions) (622) (563) (1,202) (1,048) – Sales and marketing (internal commissions) (241) (219) (472) (427) |
Credit risk related to accoun_2
Credit risk related to accounts receivables (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Schedule of Movements in the Allowance for Doubtful Debts | The movements in the allowance for doubtful accounts are as follows (in thousands): Six Months Ended September 30, 2019 2020 Balance at April 1 $ 3,019 $ 3,602 Bad debt provision 1,554 2,273 Write-offs, net of recoveries (287) (1,748) Foreign currency translation differences (162) 153 Balance at September 30 $ 4,124 $ 4,280 |
Property and equipment (Tables)
Property and equipment (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | The cost and accumulated depreciation of owned equipment are as follows (in thousands): March 31, September 30, Owned equipment Equipment, vehicles and other $ 6,114 $ 6,461 In-vehicle devices 52,824 53,564 Less: accumulated depreciation and impairments (35,397) (39,033) Owned equipment, net $ 23,541 $ 20,992 The cost and accumulated depreciation of right-of-use property and equipment are as follows (in thousands): March 31, September 30, Right-of-use assets Property $ 7,724 $ 8,073 Equipment, vehicles and other 250 191 Less: accumulated depreciation (1,496) (2,089) Right of use property and equipment, net $ 6,478 $ 6,175 |
Intangible assets (Tables)
Intangible assets (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets comprise the following (in thousands): As of March 31, 2020 As of September 30, 2020 Useful life (in years) Gross Carrying amount Accumulated amortization Net Gross Carrying amount Accumulated amortization Net Patents and trademarks 3 - 20 $ 76 $ (45) $ 31 $ 60 $ (31) $ 29 Customer relationships 2 - 15 2,600 (2,068) 532 2,643 (2,195) 448 Internal-use software, technology and other 1 - 18 26,508 (12,064) 14,444 29,785 (14,203) 15,582 Total $ 29,184 $ (14,177) $ 15,007 $ 32,488 $ (16,429) $ 16,059 |
Accrued expenses and other li_2
Accrued expenses and other liabilities (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses comprise the following (in thousands): March 31, September 30, Current: Product warranties $ 601 $ 600 Maintenance 357 504 Employee-related accruals 5,296 7,096 Lease liabilities 1,094 1,489 Accrued income tax payable 736 1,546 Other accruals 6,755 7,600 Total current $ 14,839 $ 18,835 Non-current: Lease liabilities $ 5,413 $ 4,824 Other liabilities 247 229 Total non-current $ 5,660 $ 5,053 |
Schedule of Product Warranties | The table below provides details of the movement in the accrual (in thousands): Six Months Ended September 30, 2019 2020 Product warranties Balance at April 1 $ 777 $ 616 Statement of Income charge 156 43 Utilized (268) (81) Foreign currency translation difference (28) 33 Balance at September 30 $ 637 $ 611 Non-current portion (included in other liabilities) $ 18 $ 11 Current portion $ 619 $ 600 |
Earnings per share (Tables)
Earnings per share (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Basic Earnings Per Share | The net income and weig hted average number of shares used in the calculation of basic and diluted earnings per share are as follows (in thousands, except per share data): Three Months Ended September 30, Six Months Ended September 30, 2019 2020 2019 2020 Numerator (basic) Net income attributable to ordinary shareholders $ 3,346 $ 3,452 $ 8,342 $ 5,874 Denominator (basic) Weighted-average number of ordinary shares in issue 554,781 548,008 558,401 547,569 Basic earnings per share $ 0.01 $ 0.01 $ 0.01 $ 0.01 American Depository Shares*: Net income attributable to ordinary shareholders $ 3,346 $ 3,452 $ 8,342 $ 5,874 Weighted-average number of American Depository Shares in issue 22,191 21,920 22,336 21,903 Basic earnings per American Depository share $ 0.15 $ 0.16 $ 0.37 $ 0.27 *One American Depository Share is the equivalent of 25 ordinary shares. |
Schedule of Diluted Earnings Per Share | Three Months Ended September 30, Six Months Ended September 30, 2019 2020 2019 2020 Numerator (diluted) Diluted net income attributable to ordinary shareholders $ 3,346 $ 3,452 $ 8,342 $ 5,874 Denominator (diluted) Weighted-average number of ordinary shares in issue 554,781 548,008 558,401 547,569 Adjusted for: – potentially dilutive effect of stock appreciation rights 13,482 9,339 14,358 9,517 – potentially dilutive effect of stock options and restricted share units 1,748 1,604 1,847 1,743 Diluted-weighted average number of ordinary shares in issue 570,011 558,951 574,606 558,829 Diluted earnings per share $ 0.01 $ 0.01 $ 0.01 $ 0.01 American Depository Shares*: Diluted net income attributable to ordinary shareholders $ 3,346 $ 3,452 $ 8,342 $ 5,874 Diluted weighted-average number of American Depository Shares in issue 22,800 22,358 22,984 22,353 Diluted earnings per American Depository share $ 0.15 $ 0.15 $ 0.36 $ 0.26 *One American Depository Share is the equivalent of 25 ordinary shares. |
Segment information (Tables)
Segment information (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | The following table provides revenue and Segment Adjusted EBITDA (in thousands): Three Months Ended September 30, 2019 Subscription revenue (1) Hardware and other revenue (2) Total revenue Segment Adjusted EBITDA Regional Sales Offices Africa $ 17,868 $ 1,438 $ 19,306 $ 8,585 Europe 2,862 760 3,622 1,367 Americas 5,675 454 6,129 3,006 Middle East and Australasia 4,317 1,623 5,940 2,814 Brazil 1,350 286 1,636 671 Total Regional Sales Offices 32,072 4,561 36,633 16,443 Central Services Organization 27 1 28 (2,530) Total Segment Results $ 32,099 $ 4,562 $ 36,661 $ 13,913 1. Subscription revenue is recognized over time. 2. Hardware and other revenue is recognized at a point in time. Three Months Ended September 30, 2020 Subscription revenue (1) Hardware and other revenue (2) Total revenue Segment Adjusted EBITDA Regional Sales Offices Africa $ 14,855 $ 1,635 $ 16,490 $ 7,249 Europe 2,919 474 3,393 1,536 Americas 4,786 240 5,026 2,170 Middle East and Australasia 4,118 948 5,066 2,405 Brazil 928 28 956 363 Total Regional Sales Offices 27,606 3,325 30,931 13,723 Central Services Organization 17 — 17 (1,674) Total Segment Results $ 27,623 $ 3,325 $ 30,948 $ 12,049 1. Subscription revenue is recognized over time. 2. Hardware and other revenue is recognized at a point in time. Six Months Ended September 30, 2019 Subscription revenue (1) Hardware and other revenue (2) Total revenue Segment Adjusted EBITDA Regional Sales Offices Africa $ 35,554 $ 2,819 $ 38,373 $ 16,942 Europe 5,649 1,317 6,966 2,438 Americas 11,337 1,340 12,677 5,364 Middle East and Australasia 8,578 3,246 11,824 5,568 Brazil 2,567 447 3,014 1,294 Total Regional Sales Offices 63,685 9,169 72,854 31,606 Central Services Organization 52 38 90 (5,175) Total Segment Results $ 63,737 $ 9,207 $ 72,944 $ 26,431 1. Subscription revenue is recognized over time. 2. Hardware and other revenue is recognized at a point in time. Six Months Ended September 30, 2020 Subscription revenue (1) Hardware and other revenue (2) Total revenue Segment Adjusted EBITDA Regional Sales Offices Africa $ 28,778 $ 2,236 $ 31,014 $ 14,494 Europe 5,769 608 6,377 2,838 Americas 8,961 395 9,356 3,578 Middle East and Australasia 7,999 1,657 9,656 4,323 Brazil 1,959 51 2,010 773 Total Regional Sales Offices 53,466 4,947 58,413 26,006 Central Services Organization 32 — 32 (3,537) Total Segment Results $ 53,498 $ 4,947 $ 58,445 $ 22,469 1. Subscription revenue is recognized over time. 2. Hardware and other revenue is recognized at a point in time. |
Reconciliation of Segment Results to Income Before Tax | A reconciliation of the segment results to income before income tax expense is disclosed below (in thousands). Three Months Ended September 30, Six Months Ended September 30, 2019 2020 2019 2020 Segment Adjusted EBITDA $ 13,913 $ 12,049 $ 26,431 $ 22,469 Corporate and consolidation entries (2,221) (2,507) (3,977) (4,837) Operating lease costs (1) (419) (399) (727) (791) Product development costs (2) (299) (271) (690) (514) Depreciation and amortization (4,401) (3,836) (8,653) (7,464) Impairment of long-lived assets — (1) — (1) Stock-based compensation costs (178) (301) (289) (594) Decrease/(increase) in restructuring costs (3) 1 (153) 1 (997) Net profit/(loss) on sale of property and equipment 40 (7) 356 (8) Net foreign exchange (losses)/gains (36) (78) 11 (183) Net interest income/(expense) 4 (70) 77 (140) Income before income tax expense for the period $ 6,404 $ 4,426 $ 12,540 $ 6,940 1. For the purposes of calculating Segment Adjusted EBITDA, operating leases have been capitalized, except for leases with a term of no more than 12 months or leases of low value assets. Where operating leases are capitalized for segment purposes, the amortization of the right-of-use asset and the interest on the operating lease liability are excluded from the Segment Adjusted EBITDA. Therefore, in order to reconcile Segment Adjusted EBITDA to income before taxes, the total lease expense in respect of operating leases needs to be deducted. 2. For segment reporting purposes, product development costs, which do not meet the capitalization requirements under ASC 730 Research and Development or under ASC 985 Software , are capitalized and amortized. The amortization is excluded from Segment Adjusted EBITDA. In order to reconcile Segment Adjusted EBITDA to net income before taxes, product development costs capitalized for segment reporting purposes need to be deducted. 3. For the three months ended September 30, 2020, $0.1 million of the restructuring costs related to the North America reporting segment. For the six months ended September 30, 2020, $0.6 million, $0.2 million and $0.1 million of the restructuring costs related to the CSO, Africa, and North America reporting segments, respectively. |
Stock-based compensation plan (
Stock-based compensation plan (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Unvested SARs Activities | The following table summarizes the activities for the unvested SARs: Number of SARs Weighted- Weighted Average Contractual Remaining Term (years) Aggregate Intrinsic Values (in thousands) Outstanding as of April 1, 2020 32,943,750 31 Granted 11,200,000 35 Exercised (900,470) 19 Forfeited (33,905) 19 Outstanding as of September 30, 2020 43,209,375 32 3.76 Vested and expected to vest as of September 30, 2020 41,702,500 32 2.96 3,206 Vested as of September 30, 2020 13,071,875 17 1.79 2,367 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Undrawn Facilities | Details of undrawn facilities are shown below: Interest rate March 31, September 30, Undrawn borrowing facilities at floating rates include: – Standard Bank Limited: Overdraft SA Prime* less 1.2% $ 1,204 $ 579 Vehicle and asset finance SA Prime* less 1.2% 474 500 Working capital facility SA Prime* less 0.25% 1,395 1,470 – Nedbank Limited overdraft SA Prime* less 2% 558 588 $ 3,631 $ 3,137 *South African prime interest rate |
Revenue from contracts with c_3
Revenue from contracts with customers - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |||||
Contract asset | $ 0.6 | $ 0.6 | |||
Deferred revenue | 4.5 | 4.5 | $ 5.1 | ||
Revenue | 0.6 | $ 0.9 | 1.7 | $ 2.8 | |
Deferred commissions | $ 3.5 | $ 3.5 | $ 3.6 |
Revenue from contracts with c_4
Revenue from contracts with customers - Summary of Recognized Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Capitalized Contract Cost [Line Items] | ||||
Amortization recognized during the quarter | $ (782) | $ (863) | $ (1,475) | $ (1,674) |
Cost of Revenue | ||||
Capitalized Contract Cost [Line Items] | ||||
Amortization recognized during the quarter | (563) | (622) | (1,048) | (1,202) |
Sales and Marketing | ||||
Capitalized Contract Cost [Line Items] | ||||
Amortization recognized during the quarter | $ (219) | $ (241) | $ (427) | $ (472) |
Credit risk related to accoun_3
Credit risk related to accounts receivables - Schedule of Movements in the Allowance for Doubtful Debts (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at April 1 | $ 3,602 | $ 3,019 |
Bad debt provision | 2,273 | 1,554 |
Write-offs, net of recoveries | (1,748) | (287) |
Foreign currency translation differences | 153 | (162) |
Balance at September 30 | $ 4,280 | $ 4,124 |
Credit risk related to accoun_4
Credit risk related to accounts receivables - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Mar. 31, 2020 | |
Receivables [Abstract] | ||
Net accounts receivables pledged as security | $ 1.3 | $ 2.9 |
Receivable Benchmark | Customer Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 18.00% | 15.00% |
Property equipment - Schedule o
Property equipment - Schedule of Owned Property and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Mar. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Less: accumulated depreciation and impairments | $ (39,033) | $ (35,397) |
Owned equipment, net | 20,992 | 23,541 |
Equipment, vehicles and other | ||
Property, Plant and Equipment [Line Items] | ||
Owned equipment, gross | 6,461 | 6,114 |
In-vehicle devices | ||
Property, Plant and Equipment [Line Items] | ||
Owned equipment, gross | $ 53,564 | $ 52,824 |
Property and equipment - Narrat
Property and equipment - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 3 | $ 3.4 | $ 5.8 | $ 6.7 |
Property equipment - Schedule_2
Property equipment - Schedule of Right-of-Use Property and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Mar. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Less: accumulated depreciation | $ (2,089) | $ (1,496) |
Right of use property and equipment, net | 6,175 | 6,478 |
Property | ||
Property, Plant and Equipment [Line Items] | ||
Right of use property and equipment, gross | 8,073 | 7,724 |
Equipment, vehicles and other | ||
Property, Plant and Equipment [Line Items] | ||
Right of use property and equipment, gross | $ 191 | $ 250 |
Intangible assets - Schedule of
Intangible assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 30, 2020 | Mar. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying amount | $ 32,488 | $ 29,184 |
Accumulated amortization | (16,429) | (14,177) |
Net | 16,059 | 15,007 |
Patents and trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying amount | 60 | 76 |
Accumulated amortization | (31) | (45) |
Net | $ 29 | 31 |
Patents and trademarks | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life (in years) | 3 years | |
Patents and trademarks | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life (in years) | 20 years | |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying amount | $ 2,643 | 2,600 |
Accumulated amortization | (2,195) | (2,068) |
Net | $ 448 | 532 |
Customer relationships | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life (in years) | 2 years | |
Customer relationships | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life (in years) | 15 years | |
Internal-use software, technology and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying amount | $ 29,785 | 26,508 |
Accumulated amortization | (14,203) | (12,064) |
Net | $ 15,582 | $ 14,444 |
Internal-use software, technology and other | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life (in years) | 1 year | |
Internal-use software, technology and other | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life (in years) | 18 years |
Intangible assets - Narrative (
Intangible assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 0.9 | $ 0.9 | $ 1.7 | $ 1.9 |
Accrued expenses and other li_3
Accrued expenses and other liabilities - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 |
Current: | |||
Product warranties | $ 600 | $ 601 | $ 619 |
Maintenance | 504 | 357 | |
Employee-related accruals | 7,096 | 5,296 | |
Lease liabilities | 1,489 | 1,094 | |
Accrued income tax payable | 1,546 | 736 | |
Other accruals | 7,600 | 6,755 | |
Total current | 18,835 | 14,839 | |
Non-current: | |||
Lease liabilities | 4,824 | 5,413 | |
Other liabilities | 229 | 247 | |
Total non-current | $ 5,053 | $ 5,660 |
Accrued expenses and other li_4
Accrued expenses and other liabilities - Schedule of Product Warranties (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Mar. 31, 2020 | |
Product warranties | |||
Beginning balance | $ 616 | $ 777 | |
Statement of Income charge | 43 | 156 | |
Utilized | (81) | (268) | |
Foreign currency translation difference | 33 | (28) | |
Ending balance | 611 | 637 | |
Non-current portion (included in other liabilities) | 11 | 18 | |
Current portion | $ 600 | $ 619 | $ 601 |
Income taxes (Details)
Income taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 22.00% | 47.80% | 15.40% | 33.50% |
Effective tax rate excluding impact of foreign exchange | 28.40% | 29.60% | 29.00% | 28.60% |
Earnings per share (Details)
Earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Basic earnings per share | ||||
Net income attributable to ordinary shareholders | $ 3,452 | $ 3,346 | $ 5,874 | $ 8,342 |
Weighted average number of ordinary shares in issue (in shares) | 548,008 | 554,781 | 547,569 | 558,401 |
Basic earnings per share (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 |
Weighted average number of American Depository Shares in issue (in shares) | 21,920 | 22,191 | 21,903 | 22,336 |
Basic earnings per American Depository Share (in dollars per share) | $ 0.16 | $ 0.15 | $ 0.27 | $ 0.37 |
Diluted earnings per share | ||||
Diluted weighted average number of ordinary shares in issue (in shares) | 558,951 | 570,011 | 558,829 | 574,606 |
Diluted earnings per share (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 |
Diluted weighted average number of American Depository Shares in issue (in shares) | 22,358 | 22,800 | 22,353 | 22,984 |
Diluted earnings per American Depository Share (in dollars per share) | $ 0.15 | $ 0.15 | $ 0.26 | $ 0.36 |
SARs | ||||
Diluted earnings per share | ||||
Potentially dilutive effect of share-based payment arrangements (in shares) | 9,339 | 13,482 | 9,517 | 14,358 |
Share Options | ||||
Diluted earnings per share | ||||
Potentially dilutive effect of share-based payment arrangements (in shares) | 1,604 | 1,748 | 1,743 | 1,847 |
Segment information - Narrative
Segment information - Narrative (Details) | 6 Months Ended |
Sep. 30, 2020segmentregional_sales_office | |
Segment Reporting [Abstract] | |
Number of reportable segments | segment | 6 |
Number of regional sales offices | regional_sales_office | 5 |
Segment information - Schedule
Segment information - Schedule of Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 30,948 | $ 36,661 | $ 58,445 | $ 72,944 |
Segment Adjusted EBITDA | 12,049 | 13,913 | 22,469 | 26,431 |
Subscription revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 27,623 | 32,099 | 53,498 | 63,737 |
Hardware and other revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 3,325 | 4,562 | 4,947 | 9,207 |
Total Regional Sales Offices | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 30,931 | 36,633 | 58,413 | 72,854 |
Segment Adjusted EBITDA | 13,723 | 16,443 | 26,006 | 31,606 |
Total Regional Sales Offices | Subscription revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 27,606 | 32,072 | 53,466 | 63,685 |
Total Regional Sales Offices | Hardware and other revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 3,325 | 4,561 | 4,947 | 9,169 |
Africa | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 16,490 | 19,306 | 31,014 | 38,373 |
Segment Adjusted EBITDA | 7,249 | 8,585 | 14,494 | 16,942 |
Africa | Subscription revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 14,855 | 17,868 | 28,778 | 35,554 |
Africa | Hardware and other revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 1,635 | 1,438 | 2,236 | 2,819 |
Europe | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 3,393 | 3,622 | 6,377 | 6,966 |
Segment Adjusted EBITDA | 1,536 | 1,367 | 2,838 | 2,438 |
Europe | Subscription revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 2,919 | 2,862 | 5,769 | 5,649 |
Europe | Hardware and other revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 474 | 760 | 608 | 1,317 |
Americas | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 5,026 | 6,129 | 9,356 | 12,677 |
Segment Adjusted EBITDA | 2,170 | 3,006 | 3,578 | 5,364 |
Americas | Subscription revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 4,786 | 5,675 | 8,961 | 11,337 |
Americas | Hardware and other revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 240 | 454 | 395 | 1,340 |
Middle East and Australasia | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 5,066 | 5,940 | 9,656 | 11,824 |
Segment Adjusted EBITDA | 2,405 | 2,814 | 4,323 | 5,568 |
Middle East and Australasia | Subscription revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 4,118 | 4,317 | 7,999 | 8,578 |
Middle East and Australasia | Hardware and other revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 948 | 1,623 | 1,657 | 3,246 |
Brazil | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 956 | 1,636 | 2,010 | 3,014 |
Segment Adjusted EBITDA | 363 | 671 | 773 | 1,294 |
Brazil | Subscription revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 928 | 1,350 | 1,959 | 2,567 |
Brazil | Hardware and other revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 28 | 286 | 51 | 447 |
Central Services Organization | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 17 | 28 | 32 | 90 |
Segment Adjusted EBITDA | (1,674) | (2,530) | (3,537) | (5,175) |
Central Services Organization | Subscription revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 17 | 27 | 32 | 52 |
Central Services Organization | Hardware and other revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 0 | $ 1 | $ 0 | $ 38 |
Segment information - Reconcili
Segment information - Reconciliation of Segment Results to Income Before Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Segment Adjusted EBITDA | $ 12,049 | $ 13,913 | $ 22,469 | $ 26,431 |
Stock-based compensation costs | (300) | (200) | (600) | (300) |
Net interest income/(expense) | (70) | 4 | (140) | 77 |
Income before income tax expense | 4,426 | 6,404 | 6,940 | 12,540 |
Restructuring costs | 200 | 1,000 | ||
North America | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring costs | 100 | |||
North America | Employee Severance | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring costs | 100 | |||
Central Services Organization | ||||
Segment Reporting Information [Line Items] | ||||
Segment Adjusted EBITDA | (1,674) | (2,530) | (3,537) | (5,175) |
Central Services Organization | Employee Severance | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring costs | 600 | |||
Africa | ||||
Segment Reporting Information [Line Items] | ||||
Segment Adjusted EBITDA | 7,249 | 8,585 | 14,494 | 16,942 |
Africa | Employee Severance | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring costs | 200 | |||
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Segment Adjusted EBITDA | 12,049 | 13,913 | 22,469 | 26,431 |
Corporate and Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Corporate and consolidation entries | (2,507) | (2,221) | (4,837) | (3,977) |
Segment Reconciling Items, Costs and Expenses | ||||
Segment Reporting Information [Line Items] | ||||
Operating lease costs | (399) | (419) | (791) | (727) |
Product development costs | (271) | (299) | (514) | (690) |
Depreciation and amortization | (3,836) | (4,401) | (7,464) | (8,653) |
Impairment of long-lived assets | (1) | 0 | (1) | 0 |
Stock-based compensation costs | (301) | (178) | (594) | (289) |
Decrease/(Increase) in restructuring costs | (153) | 1 | (997) | 1 |
Net profit/(loss) on sale of property and equipment | (7) | 40 | (8) | 356 |
Net foreign exchange (losses)/gains | (78) | (36) | (183) | 11 |
Net interest income/(expense) | $ (70) | $ 4 | $ (140) | $ 77 |
Stock-based compensation plan -
Stock-based compensation plan - Narrative (Details) $ / shares in Units, $ in Thousands | Jun. 01, 2020shares | Sep. 30, 2020USD ($)plan$ / sharesshares | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)planshares | Sep. 30, 2019USD ($) | Mar. 31, 2014shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of equity-classified incentive plans | plan | 2 | 2 | ||||
Stock-based compensation expense | $ | $ 300 | $ 200 | $ 600 | $ 300 | ||
SARs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation cost | $ | 2,400 | $ 2,400 | ||||
Expected period for recognition of unvested awards | 4 years 7 months 13 days | |||||
RSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation cost | $ | $ 500 | $ 500 | ||||
Expected period for recognition of unvested awards | 2 years 6 months | |||||
Weighted-average grant-date fair value (in dollars per share) | $ / shares | $ 0.3 | |||||
Number of shares granted (in shares) | 2,000,000 | |||||
Award vesting percentage | 50.00% | |||||
Estimated forfeiture rate | 5.00% | |||||
LTIP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares reserved for future issuance (in shares) | 47,090,000 | 47,090,000 | ||||
LTIP | RSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Maximum shares to be granted (in shares) | 2,000,000 | 2,000,000 | 12,000,000 | |||
Telimatrix Group Executive Incentive Scheme | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Remaining number of share options (in shares) | 3,500,000 | 3,500,000 | ||||
Award exercise price (in dollars per share) | $ / shares | $ 0.24 |
Stock-based compensation plan_2
Stock-based compensation plan - Summary of Unvested SARs Activity (Details) $ / shares in Units, $ in Thousands | 6 Months Ended |
Sep. 30, 2020USD ($)$ / sharesshares | |
Weighted- Average Award Price in U.S. Cents | |
Weighted average remaining contractual term, outstanding | 3 years 9 months 3 days |
SARs | |
Number of SARs | |
Unvested as of beginning of period (in shares) | shares | 32,943,750 |
Granted (in shares) | shares | 11,200,000 |
Exercised (in shares) | shares | (900,470) |
Forfeited (in shares) | shares | (33,905) |
Unvested as of end of period (in shares) | shares | 43,209,375 |
Vested and expected to vest (in shares) | shares | 41,702,500 |
Vested (in shares) | shares | 13,071,875 |
Weighted- Average Award Price in U.S. Cents | |
Outstanding as of beginning of period (in dollars per share) | $ / shares | $ 0.31 |
Granted (in dollars per share) | $ / shares | 0.35 |
Exercised (in dollars per share) | $ / shares | 0.19 |
Forfeited (in dollars per share) | $ / shares | 0.19 |
Outstanding as of end of period (in dollars per share) | $ / shares | 0.32 |
Vested and expected to vest (in dollars per share) | $ / shares | 0.32 |
Vested (in dollars per share) | $ / shares | $ 0.17 |
Weighted average remaining contractual term, vested and expected to vest | 2 years 11 months 15 days |
Weighted average remaining contractual term, vested | 1 year 9 months 14 days |
Aggregate intrinsic value, vested and expected to vest | $ | $ 3,206 |
Aggregate intrinsic value, vested | $ | $ 2,367 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Mar. 31, 2020 |
Debt Disclosure [Abstract] | ||
Debt | $ 3,185 | $ 2,367 |
Net accounts receivables pledged as security | $ 1,300 | $ 2,900 |
Debt - Schedule of Undrawn Faci
Debt - Schedule of Undrawn Facilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Mar. 31, 2020 |
Line of Credit Facility [Line Items] | ||
Undrawn borrowing remaining | $ 3,137 | $ 3,631 |
Standard Bank Limited | Overdraft | ||
Line of Credit Facility [Line Items] | ||
Percentage deducted from interest rate | 1.20% | 1.20% |
Undrawn borrowing remaining | $ 579 | $ 1,204 |
Standard Bank Limited | Vehicle and asset finance | ||
Line of Credit Facility [Line Items] | ||
Percentage deducted from interest rate | 1.20% | 1.20% |
Undrawn borrowing remaining | $ 500 | $ 474 |
Standard Bank Limited | Working capital facility | ||
Line of Credit Facility [Line Items] | ||
Percentage deducted from interest rate | 0.25% | |
Undrawn borrowing remaining | $ 1,470 | $ 1,395 |
Nedbank Limited | Overdraft | ||
Line of Credit Facility [Line Items] | ||
Percentage deducted from interest rate | 2.00% | 2.00% |
Undrawn borrowing remaining | $ 588 | $ 558 |
Restructuring costs (Details)
Restructuring costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | $ 0.2 | $ 1 | |
Africa | Forecast | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost settled | $ 0.1 | ||
North America | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | $ 0.1 | ||
Employee Severance | Central Services Organization | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 0.6 | ||
Employee Severance | Africa | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 0.2 | ||
Employee Severance | North America | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | $ 0.1 |
Contingencies (Details)
Contingencies (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Mar. 31, 2020 |
Amended Network Service Agreement with MTN | Maximum | ||
Loss Contingencies [Line Items] | ||
Estimate of possible loss | $ 1.9 | $ 1.9 |
Subsequent events (Details)
Subsequent events (Details) | 3 Months Ended | 6 Months Ended | ||||||
Sep. 30, 2020R / shares | Sep. 30, 2020$ / shares | Sep. 30, 2019R / shares | Sep. 30, 2019$ / shares | Sep. 30, 2020R / shares | Sep. 30, 2020$ / shares | Sep. 30, 2019R / shares | Sep. 30, 2019$ / shares | |
Subsequent Events [Abstract] | ||||||||
Dividends declared per share (in ZAR per share) | (per share) | R 0.04 | $ 0.3 | R 0.04 | $ 0.3 | R 0.04 | $ 0.2 | R 0.04 | $ 0.2 |
Dividends declared per ADS (in ZAR per share) | R 1 |