Exhibit 99.1
February 13, 2020

Peter Poli
Chief Financial Officer 877-260-2010

Track Group Reports 1st Quarter Fiscal 2020 Financial Results
Revenue up 3%, Operating Income improves dramatically, Adjusted EBITDA up 3% and Net Loss shrinks 87%
NAPERVILLE, ILLINOIS – Track Group, Inc. (OTCQX: TRCK), a global leader in offender tracking and monitoring services, today announced financial results for its first quarter ended December 31, 2019 (the “First Quarter FY20”). The Company posted (i) revenue of $8.4M, an increase of 3% over the same period last year, (ii) operating income of $0.3M compared to an operating loss of $0.1M in First Quarter FY19, (iii) Adjusted EBITDA of $1.8M, up 3% compared to First Quarter FY19, and (iv) a cash balance at December 31, 2019 of $8.5M, representing an increase of 23% over September 30, 2019.
“We are please to kick off our new fiscal year with a strong first quarter that ended December 31, 2019 with revenue growth of nearly 3%, which is commendable given the impact of the strengthening of the US dollar and the subsequent reduction in revenue caused by the translation of our significant Chilean peso revenue into US dollars”, said Derek Cassell, Track Group’s CEO.
Strong quarterly revenue of $8.4M in First Quarter FY20, up 3% over First Quarter FY19 of $8.2M.
Favorable quarterly gross profit of $4.7M in First Quarter FY20, up 1% over First Quarter FY19 of $4.6M.
Total operating expense for the First Quarter FY20 of $4.4M is down 7 % versus First Quarter FY19’s $4.7M of operating expense. The decline in quarterly operating expense when combined with a favorable quarterly gross profit led to Operating Income of $301K, which is a dramatic improvement of over 600% compared to a quarterly loss of $57K in the First Quarter FY19.
Adjusted EBITDA in the First Quarter FY20 finished at $1.8M, up 3% compared to $1.7M for First Quarter FY2019.
Cash balance of $8.5M for First Quarter FY20, up 23% compared to $6.9M at September 30, 2019.
Net loss attributable to shareholders for First Quarter FY20 of ($0.2M) compared to a net loss attributable to shareholders in the First Quarter FY2019 of ($1.7M), representing an improvement of 87%.
5th Avenue Station
200 E. 5thAvenue, Suite 100
Naperville, IL 60563

FY 2018
FY 2019
FY 2020
Adjusted EBITDA Margin:
About Track Group, Inc.
Track Group designs, manufactures, and markets location tracking devices; as well as develops and sells a variety of related software, services, accessories, networking solutions, and monitoring applications. The Company's products and services are designed to empower professionals in security, law enforcement, corrections and rehabilitation organizations worldwide with single-sourced offender management solutions that integrate reliable intervention technologies to support re-socialization and monitoring initiatives.
The company currently trades under the ticker symbol "TRCK" on the OTCQX exchange. For more information, visit www.trackgrp.com.
Forward-Looking Statements
Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "expect," "forecast," "intend," "may," "plan," "project," "predict," "if", "should" and "will" and similar expressions as they relate to Track Group, Inc. and subsidiaries ("Track Group") are intended to identify such forward-looking statements. These statements are only predictions and reflect Track Group's current beliefs and expectations with respect to future events and are based on assumptions and subject to risks and uncertainties and subject to change at any time. Track Group may from time to time update these publicly announced projections, but it is not obligated to do so. Any projections of future results of operations should not be construed in any manner as a guarantee that such results will in fact occur. These projections are subject to change and could differ materially from final reported results. For a discussion of such risks and uncertainties, see "Risk Factors" in Track Group's annual report on Form 10-K, its quarterly report on Form 10-Q, and its other reports filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended. New risks emerge from time to time. Readers are cautioned not to place undue reliance on these forward- looking statements, which speak only as of the dates on which they are made.
Non-GAAP Financial Measures
This release includes financial measures defined as “non-GAAP financial measures” by the Securities and Exchange Commission including non-GAAP EBITDA. These measures may be different from non- GAAP financial measures used by other companies. The presentation of this financial information, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with generally accepted accounting principles. Reconciliations of these non-GAAP financial measures are based on the financial figures for the respective period.
Non-GAAP Adjusted EBITDA excludes items included but not limited to interest, taxes, depreciation, amortization, impairment charges, gains and losses, currency effects, one time charges or benefits that are not indicative of operations, charges to consolidate, integrate or consider recently acquired businesses, costs of closing facilities, stock based or other non-cash compensation or other stated cash and non-cash charges (the “Adjustments”).
The Company believes the non-GAAP measures provide useful information to both management and investors when factoring in the Adjustments. Specific disclosure regarding the Company’s financial results, including management’s analysis of results from operations and financial condition, are contained in the Company’s annual report on Form 10-K for the fiscal year ended September 30, 2019, and other reports filed with the Securities and Exchange Commission. Investors are encouraged to carefully read and consider such disclosure and analysis contained in the Company’s Form 10-K and other reports, including the risk factors contained in such Form 10-K.

December 31,
September 30,
Current assets:
Accounts receivable, net of allowance for doubtful accounts of $2,556,393 and $2,454,281, respectively
Prepaid expense, deposits and right of use assets
Inventory, net of reserves of $62,147 and $26,934, respectively
Total current assets
Property and equipment, net of accumulated depreciation of $2,316,172 and $2,248,913, respectively
Monitoring equipment, net of accumulated amortization of $6,325,027 and $6,322,768, respectively
Intangible assets, net of accumulated amortization of $14,729,536 and $14,157,090, respectively
Deferred tax asset
Other assets
Total assets
   Liabilities and Stockholders’ Equity (Deficit)
Current liabilities:
Accounts payable
Accrued liabilities
Current portion of long-term debt
Total current liabilities
Long-term liabilities
Total liabilities
Commitments and contingencies
 Stockholders’ equity (deficit):
Common stock, $0.0001 par value: 30,000,000 shares authorized; 11,414,150 and 11,401,650 shares outstanding, respectively
Series A Convertible Preferred stock, $0.0001 par value: 1,200,000 shares authorized; 0 shares outstanding
Paid in capital
Accumulated deficit
Accumulated other comprehensive loss
Total equity (deficit)
Total liabilities and stockholders’ equity (deficit)
Three Months Ended December 31,
Monitoring and other related services
Product sales and other
Total revenue
Cost of revenue:
Monitoring, products and other related services
Depreciation & amortization included in cost of revenue
Total cost of revenue
Gross profit
Operating expense:
General & administrative
Selling & marketing
Research & development
Depreciation & amortization
Total operating expense
  Operating income (loss)
Other income (expense):
Interest expense, net
Currency exchange gain (loss)
Total other expense
Loss before income taxes
Income tax expense
Net loss attributable to common stockholders
Foreign currency translation adjustments
Comprehensive loss
Net loss per common share, basic and diluted
Weighted average common shares outstanding, basic and diluted

      Three Months Ended December 31, 

Non-GAAP Adjusted EBITDA
Net loss attributable to common shareholders
Interest expense, net
Depreciation and amortization
Income taxes (1)
Board compensation and stock-based compensation
Foreign exchange expense
Other charges, net (2)
Non GAAP Adjusted EBITDA
Non GAAP Adjusted EBITDA, percent of revenue
Weighted average common shares outstanding
Non-GAAP earnings per share
Currently, the Company has significant U.S. tax loss carryforwards that may be used to offset future taxable income, subject to IRS limitations. However, the Company is still subject to certain state, commonwealth, and other foreign based taxes.
Other charges may include gains or losses and non-recurring accrual adjustments.

The following information was filed by Track Group, Inc. (TRCK) on Thursday, February 13, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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