Exhibit 99.1
Track Group Reports 1st Quarter Fiscal 2021 Financial Results
Monitoring Revenue and Total Revenue up 12%, Record Quarterly Operating Income, Adjusted EBITDA up 50%, Net Loss Turnaround
NAPERVILLE, ILLINOIS – Track Group, Inc. (OTC Pink Market: TRCK), a global leader in offender tracking and monitoring services, today announced financial results for its first quarter ended December 31, 2020 (“Q1 FY21”). The Company posted (i) total revenue of $9.4 million, an increase of approximately 12% over total revenue for the same period last year (“Q1 FY20”); (ii) operating income of $1.4 million, representing an increase of 373% compared to Q1 FY20 operating income of $0.3M; (iii) adjusted EBITDA of $2.7 million in Q1 FY21, up 50% compared to $1.8 million for Q1 FY20; and (iv) net income attributable to common shareholders of $1.3M in Q1 FY21 compared to a net loss of $0.2 million in Q1 FY20.
“The strong performance of the Company during the second half of the prior fiscal year (April to September 2020) carried over into the first quarter of fiscal year 2021 (October – December 2020). As our employees continue to work closely with customers and supply partners alike, we collectively work through the challenges brought on by the Coronavirus,” said Derek Cassell, Track Group’s CEO.
Strong quarterly total revenue of $9.4 million in Q1 FY21, up 12% compared to Q1 FY20 total revenue of $8.4 million as the increase in monitoring revenue of approximately 12% was offset by a nominal decline in product sales.
Gross profit of $5.2 million in Q1 FY21 was up 12% compared to Q1 FY20 gross profit of $4.7 million.
Total operating expense for Q1 FY21 of $3.8 million was down 13% versus Q1 FY20’s operating expense of $4.4 million. The decline in quarterly operating expense when combined with the favorable increase in gross profit led to operating income in Q1 FY21 of $1.4 million compared to operating income of $0.3 million for Q1 FY20, representing an improvement of 373%.
Adjusted EBITDA in the Q1 FY21 was $2.7 million, an increase of nearly 50%, compared to $1.8 million for Q1 FY20. Adjusted EBITDA in Q1 FY21 as a percentage of revenue also increased to 28.2%, compared to 21.1% for Q1 FY20.
The cash balance of $5.9 million at December 31, 2020 was down 13% compared to $6.8 million at September 30, 2020 as the Company made significant investments in additional monitoring devices and software to accommodate increased customer demand.
Net income attributable to common shareholders in Q1 FY21 was $1.3 million compared to a net loss of $0.2M in Q1 FY20, a change principally attributable to the Company’s strong operating performance and the increase in other Income associated with a foreign currency exchange gain.

Business Outlook
As of February 10, 2021, the Coronavirus pandemic has adversely impacted both the Company’s revenue and costs by disrupting its operations in Chile, causing shortages within the supply chain and postponing sales opportunities as some government agencies have delayed new RFP (Request for Proposal) processes. In addition, we continue to operate in a rapidly changing environment so the extent to which the Coronavirus pandemic impacts our business, operations and financial results from this point forward will depend on numerous evolving factors that we cannot accurately predict. Given this uncertainty, the Company has elected not to provide specific guidance regarding fiscal 2021 operating results.
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, and 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 OTC Pink Market 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. 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 including 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, 2020, 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 $2,624,536 and $2,654,173, respectively
Prepaid expense and deposits
Inventory, net of reserves of $6,392 and $6,483, respectively
Total current assets
Property and equipment, net of accumulated depreciation of $2,746,715 and $2,531,631, respectively
Monitoring equipment, net of accumulated depreciation of $5,589,903 and $6,639,883, respectively
Intangible assets, net of accumulated amortization of $17,019,421 and $16,390,721, 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 debt, net
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 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
Other income (expense):
Interest expense, net
Currency exchange gain
Other income/expense, net
Total other income (expense)
Income (loss) before income taxes
Income tax expense
Net income (loss) attributable to common stockholders
Foreign currency translation adjustments
Comprehensive income (loss)
Net income (loss) per common share, basic and diluted
Weighted average common shares outstanding, basic and diluted

Three Months Ended
December 31,
Non-GAAP Adjusted EBITDA (in 000's, except share data)
Net Income (loss) attributable to common shareholders
Interest expense, net
Depreciation and amortization
Income taxes (1)
Board compensation and stock-based compensation
Foreign exchange gain
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.
charges may include gains or losses and non-recurring accrual adjustments.


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