ERoad lifts annual sales 62%, meeting guidance, as North American growth accelerates
By Paul McBeth
April 6 (BusinessDesk) - ERoad's annual sales of contracted units rose 62 percent, meeting guidance, as the logistics and fleet management firm's North American expansion continues to accelerate.
Total contracted units rose to 77,600 in the year ended March 31 from 48,041, of which units in North America surged 191 percent to 17,757 and Australia/New Zealand units climbed 43 percent to 59,843. The Auckland-based company had expected contracted units to reach 77,000 at the year-end. Quarterly sales rose 12 percent.
"Total contracted units growth in the quarter of 8,209 units represents the second biggest growth in units for a quarter in ERoad’s history, and completes a record year for unit sales of 29,559, an increase of 61.5 percent for the year," chief executive Steven Newman said in a statement. "The unit sales results represent a record in the ANZ market and the fourth consecutive quarter of growth. It also represented the second-best quarter of unit sales in North America."
ERoad's sales gained traction in the US after the introduction of compliance regime requiring logistics firms to use electronic logging devices from December last year. That deadline had been delayed as North American buyers lobbied to push out the introduction of the regime, holding up sales of ERoad's systems.
The company raised $21.5 million in a placement and share purchase plan to support the expansion of its US business, upgrading customer support, repaying debt, and developing new products to capture and analyse transport data.
ERoad didn't comment on whether it met revenue guidance of between $46.9 million and $47.6 million or forecast earnings before interest tax, depreciation and amortisation of between $12.8 million and $13.3 million.
The shares last traded at $3.78 and have gained 5.6 percent so far this year, while the S&P/NZX All Index fell 1.5 percent over the same period.