IRVINE, Calif., Sept. 29, 2016 /PRNewswire/ -- CalAmp
(NASDAQ: CAMP), a leading provider of wireless products,
services and solutions, today reported results for its fiscal 2017
second quarter ended August 31,
2016.
Michael Burdiek, CalAmp's
President and Chief Executive Officer, said, "The company continues
its rapid pace of innovation, expanding its product portfolio and
leadership position in the connected vehicle marketplace. Our
pipeline of opportunities is very healthy, and we recently won two
significant MRM telematics device customers who are expected to
contribute to our long-term growth. Although we have been
impacted by tough macro conditions in North America, we continue to invest in
market-leading telematics solutions, and we remain optimistic that
we will see a pick-up in growth from CalAmp's core businesses and
new opportunities emerging through LoJack channels."
Revenue for the second quarter of fiscal 2017 was $90.5 million, an increase of 30% from the second
quarter of fiscal 2016. Revenue in the second quarter of fiscal
2017 included $31.9 million from
LoJack products and services and $6.7
million from the Satellite segment.
Gross profit for the second quarter of fiscal 2017 was
$37.6 million, an increase of
$12.3 million over the same quarter
last year. Gross margin was 42% in the second quarter of fiscal
2017, up from 36% in the second quarter of fiscal 2016.
GAAP net income for the second quarter of fiscal 2017 was
$0.5 million, or $0.01 per diluted share, compared to net income
of $3.5 million, or $0.10 per diluted share, in the second quarter of
fiscal 2016. Non-GAAP adjusted basis net income for the
second quarter of fiscal 2017 was $10.1
million, or $0.27 per diluted
share, compared to non-GAAP adjusted net income of $9.8 million, or $0.27 per diluted share, in the second quarter of
fiscal 2016. Adjusted EBITDA for the second quarter of
fiscal 2017 was $12.9 million and
Adjusted EBITDA margin was 14.2%.
As of August 31, 2016, the Company
had total cash and marketable securities of $117 million and total debt outstanding of
$143 million, which is the carrying
amount of the Company's 1.625% convertible notes in the face amount
of $172.5 million. Net cash provided
by operating activities was $11.0
million during the second quarter of fiscal 2017.
During the second quarter, the company purchased and retired
approximately 580,000 shares of its common stock at an aggregate
cost of $8.5 million pursuant to a
stock repurchase plan adopted in June 2016. As of
August 31, 2016, the remaining
authorization for additional share purchases under this plan is
$16.5 million.
Recent Business Highlights
- One of the largest telematics service providers in North America has chosen various CalAmp LMU
and TTU telematics device lines for its range of fleet and asset
management solutions. This recent development follows another
significant customer win in the first quarter with Omnitracs.
- The company launched the LoJack-branded LotSmartâ„¢ and
SureDriveâ„¢ telematics applications.
- CalAmp received certification of its Instant Crash Notification
(ICN) service by independent insurance industry research company
CESVIMAP, which provides objective evaluations of crash test
results for vehicle repair and other collision damage services to
insurance companies in Europe,
Latin America and China.
- The company announced that two customers, MapAnything and
Chevin, have chosen the CalAmp Telematics Cloud suite of services
to enable their respective telematics applications offerings. With
these additional customers, CalAmp now has six companies that rely
on this innovative service platform to power their telematics
solutions.
- LoJack Italy, the wholly-owned LoJack licensee, maintained its
rapid growth at over 60% year-over-year.
Business Outlook
The Company remains cautious in the
very near-term as macro conditions in North America have continued to result in
softer-than-expected demand from key customers for MRM telematics
products. Though CalAmp has experienced weakness
through the first half of this year, the company is seeing some
firming of demand and is optimistic that the company will see MRM
product revenues begin to improve later this fiscal year and into
fiscal 2018.
Excluding CalAmp's Satellite business, which contributed
$6.7 million of revenue in the second
fiscal quarter and ceased operations at quarter-end, the outlook
for the third quarter ending November 30,
2016 is:
- Consolidated revenue in the range of $81
to $87 million, along with GAAP basis results of operations
in the range of ($0.02) net loss to
$0.02 net income per diluted share
and non-GAAP net income in the range of $0.24 to $0.30 per diluted share.
- Adjusted EBITDA in the range of $11 to
$14 million.
In addition, the Company expects its core business to steadily
strengthen through the balance of this year, with momentum building
into fiscal 2018.
Conference Call and Webcast
CalAmp is
hosting a conference call for analysts and investors to discuss its
fiscal 2017 second quarter results and outlook for its fiscal 2017
third quarter at 1:30 p.m. Pacific
Time today. Participants can listen in via webcast by
visiting the Investor Relations section of CalAmp's website at
www.calamp.com. Please go to the website at least 15 minutes early
to register, download and install any necessary audio software. A
replay of the webcast will be available for 30 days after the call.
The conference call can also be accessed by dialing
855-302-8830 (+1-330-871-6073 for international callers) and using
the Conference ID# 80479544. Following the call, an audio replay
will also be available by calling 855-859-2056 or +1-404-537-3406
and entering the Conference ID# 80479544. The audio replay will be
available through October 6,
2016.
About CalAmp
CalAmp (NASDAQ: CAMP) is a proven leader
in providing wireless communications solutions to a broad array of
vertical market applications and customers. CalAmp's extensive
portfolio of intelligent communications devices, robust and
scalable cloud service platform, and targeted software applications
streamline otherwise complex Machine-to-Machine (M2M) deployments.
These solutions enable customers to optimize their operations by
collecting, monitoring and efficiently reporting business critical
data and desired intelligence from high-value mobile and remote
assets. For more information, please visit
www.calamp.com.
Forward-Looking Statements
Statements in this press
release that are not historical in nature are forward-looking
statements that, within the meaning of the federal securities laws
including the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, involve known and unknown risks and
uncertainties. Words such as "may", "will", "expect", "intend",
"plan", "believe", "seek", "could", "estimate", "judgment",
"targeting", "should", "anticipate", "goal" and variations of these
words and similar expressions, are intended to identify
forward-looking statements. The forward-looking statements in this
press release address a variety of subjects, including the outlook
for our fiscal 2017 third and fourth quarter operating results.
Readers are cautioned that actual results could differ materially
from those implied by such forward-looking statements due to a
variety of factors, including global economic conditions (including
Brexit), competitive pressures and pricing declines,
softer-than-expected demand from key customers, intellectual
property infringement claims, and other risks or uncertainties that
are described in Part I, Item 1A of our Annual Report on Form 10-K
for fiscal 2016 as filed on April 20,
2016 with the Securities and Exchange Commission. Although
we believe the expectations reflected in such forward-looking
statements are based upon reasonable assumptions, we can give no
assurances that our expectations will be attained. We undertake no
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or
otherwise.
Non-GAAP Financial Measures
"GAAP" refers to financial information presented in accordance with
U.S. Generally Accepted Accounting Principles. This press release
includes historical non-GAAP financial measures, as defined in
Regulation G promulgated by the Securities and Exchange Commission.
CalAmp believes that its presentation of historical non-GAAP
financial measures provides useful supplementary information to
investors. The presentation of historical non-GAAP financial
measures is not meant to be considered in isolation from or as a
substitute for results prepared in accordance with GAAP.
In this press release, CalAmp reports the non-GAAP financial
measures of Adjusted Basis net income, Adjusted basis net income
per diluted share, non-GAAP gross margin, Adjusted EBITDA (Earnings
Before Investment Income, Interest Expense, Taxes, Depreciation,
Amortization, Stock-Based Compensation and certain other
adjustments as detailed in the accompanying non-GAAP
reconciliation), and Adjusted EBITDA margin. Adjusted Basis net
income excludes the impact of intangibles amortization expense,
stock-based compensation, acquisition and integration expenses, and
certain other adjustments as shown in the non-GAAP reconciliation
provided in the table at the end of this press release.
CalAmp uses these non-GAAP financial measures to enhance the
investor's overall understanding of the financial performance and
future prospects of CalAmp's core business activities.
Specifically, CalAmp believes that the use of these non-GAAP
measures facilitates the comparison of results of core business
operations between its current and past periods.
AT
CALAMP:
|
AT NMN
ADVISORS:
|
Garo
Sarkissian
|
Nicole
Noutsios
|
SVP, Corporate
Development
|
(510)
315-1003
|
(949)
600-5600
|
nicole@nmnadvisors.com
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAL AMP
CORP.
|
CONSOLIDATED
INCOME STATEMENTS
|
(Unaudited, in
thousands except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
August 31,
|
|
August 31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
90,479
|
|
$
|
69,808
|
|
$
|
181,626
|
|
$
|
135,237
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
52,865
|
|
|
44,505
|
|
|
109,178
|
|
|
86,408
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
37,614
|
|
|
25,303
|
|
|
72,448
|
|
|
48,829
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
5,885
|
|
|
4,995
|
|
|
11,976
|
|
|
9,560
|
Selling
|
|
|
12,683
|
|
|
5,847
|
|
|
23,991
|
|
|
11,345
|
General and
administrative
|
|
|
11,284
|
|
|
4,908
|
|
|
27,267
|
|
|
9,683
|
Intangible
asset amortization
|
|
|
3,856
|
|
|
1,655
|
|
|
7,346
|
|
|
3,299
|
|
|
|
33,708
|
|
|
17,405
|
|
|
70,580
|
|
|
33,887
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
3,906
|
|
|
7,898
|
|
|
1,868
|
|
|
14,942
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
income (loss)
|
|
|
455
|
|
|
(43)
|
|
|
908
|
|
|
(15)
|
Interest
expense
|
|
|
(2,474)
|
|
|
(2,280)
|
|
|
(4,898)
|
|
|
(2,928)
|
Other income
(expense)
|
|
|
(130)
|
|
|
(18)
|
|
|
413
|
|
|
(29)
|
|
|
|
(2,149)
|
|
|
(2,341)
|
|
|
(3,577)
|
|
|
(2,972)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes and
|
|
|
|
|
|
|
|
|
|
|
|
|
equity in net loss of
affiliate
|
|
|
1,757
|
|
|
5,557
|
|
|
(1,709)
|
|
|
11,970
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit
(provision)
|
|
|
(864)
|
|
|
(2,058)
|
|
|
255
|
|
|
(4,412)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
equity in net
|
|
|
|
|
|
|
|
|
|
|
|
|
loss of
affiliate
|
|
|
893
|
|
|
3,499
|
|
|
(1,454)
|
|
|
7,558
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in net loss of
affiliate
|
|
|
(372)
|
|
|
-
|
|
|
(684)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
521
|
|
$
|
3,499
|
|
$
|
(2,138)
|
|
$
|
7,558
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.01
|
|
$
|
0.10
|
|
$
|
(0.06)
|
|
$
|
0.21
|
Diluted
|
|
$
|
0.01
|
|
$
|
0.10
|
|
$
|
(0.06)
|
|
$
|
0.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing earnings (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
36,390
|
|
|
36,135
|
|
|
36,425
|
|
|
36,049
|
Diluted
|
|
|
36,849
|
|
|
36,716
|
|
|
36,425
|
|
|
36,691
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BUSINESS SEGMENT
INFORMATION
|
(Unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
August 31,
|
|
August 31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Wireless
DataCom
|
|
$
|
83,807
|
|
$
|
61,819
|
|
$
|
166,557
|
|
$
|
119,645
|
Satellite
|
|
|
6,672
|
|
|
7,989
|
|
|
15,069
|
|
|
15,592
|
Total revenues
|
|
$
|
90,479
|
|
$
|
69,808
|
|
$
|
181,626
|
|
$
|
135,237
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
|
|
|
|
|
|
|
|
|
Wireless
DataCom
|
|
$
|
36,209
|
|
$
|
23,098
|
|
$
|
68,719
|
|
$
|
44,686
|
Satellite
|
|
|
1,405
|
|
|
2,205
|
|
|
3,729
|
|
|
4,143
|
Total gross profit
|
|
$
|
37,614
|
|
$
|
25,303
|
|
$
|
72,448
|
|
$
|
48,829
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
|
|
|
|
|
|
|
|
|
|
Wireless
DataCom
|
|
$
|
5,035
|
|
$
|
7,529
|
|
$
|
6,072
|
|
$
|
14,419
|
Satellite
|
|
|
139
|
|
|
1,557
|
|
|
1,547
|
|
|
2,777
|
Corporate
expenses
|
|
|
(1,268)
|
|
|
(1,188)
|
|
|
(5,751)
|
|
|
(2,254)
|
Total operating income
|
|
$
|
3,906
|
|
$
|
7,898
|
|
$
|
1,868
|
|
$
|
14,942
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- more -
|
|
|
|
|
|
|
|
|
|
|
|
CAL AMP
CORP.
|
CONSOLIDATED
BALANCE SHEETS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
August 31,
|
|
February
29,
|
|
|
|
|
|
|
2016
|
|
2016
|
|
|
Assets
|
|
|
|
(Unaudited)
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
$
|
94,705
|
|
$
|
139,388
|
|
|
Short-term
marketable securities
|
|
|
|
|
22,299
|
|
|
88,718
|
|
|
Accounts
receivable, net
|
|
|
|
|
68,766
|
|
|
49,432
|
|
|
Inventories
|
|
|
|
|
27,999
|
|
|
16,731
|
|
|
Prepaid
expenses and other current assets
|
|
|
7,314
|
|
|
4,498
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
assets
|
|
|
|
|
221,083
|
|
|
298,767
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, equipment
and improvements, net
|
|
|
|
21,599
|
|
|
11,225
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred income tax
assets
|
|
|
|
|
28,604
|
|
|
30,213
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
|
|
63,180
|
|
|
16,508
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other intangible
assets, net
|
|
|
|
|
74,916
|
|
|
17,010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
assets
|
|
|
|
|
10,777
|
|
|
10,640
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
420,159
|
|
$
|
384,363
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
|
$
|
36,604
|
|
$
|
24,938
|
|
|
Accrued
payroll and employee benefits
|
|
|
|
|
10,800
|
|
|
6,814
|
|
|
Deferred
revenue
|
|
|
|
|
16,855
|
|
|
9,438
|
|
|
Other current
liabilities
|
|
|
|
|
17,945
|
|
|
8,375
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
|
|
|
82,204
|
|
|
49,565
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.625% convertible
senior unsecured notes
|
|
|
|
143,260
|
|
|
139,800
|
|
|
Other non-current
liabilities
|
|
|
|
|
13,500
|
|
|
5,551
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
Common
stock
|
|
|
|
|
364
|
|
|
367
|
|
|
Additional
paid-in capital
|
|
|
|
|
223,680
|
|
|
229,159
|
|
|
Accumulated
deficit
|
|
|
|
|
(41,991)
|
|
|
(39,853)
|
|
|
Accumulated
other comprehensive loss
|
|
|
|
|
(858)
|
|
|
(226)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
|
|
|
181,195
|
|
|
189,447
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
420,159
|
|
$
|
384,363
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- more -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAL AMP
CORP.
|
|
CONSOLIDATED CASH
FLOW STATEMENTS
|
|
(Unaudited - In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
|
|
|
|
|
August 31,
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
|
$
|
(2,138)
|
|
$
|
7,558
|
|
|
|
Depreciation
expense
|
|
|
|
|
4,032
|
|
|
1,675
|
|
|
|
Intangible assets
amortization expense
|
|
|
|
|
7,346
|
|
|
3,299
|
|
|
|
Stock-based
compensation expense
|
|
|
|
|
3,605
|
|
|
2,609
|
|
|
|
Amortization of
convertible debt issue costs and discount
|
|
|
|
|
3,460
|
|
|
2,019
|
|
|
|
Foreign currency
remeasurement gains
|
|
|
|
|
(460)
|
|
|
-
|
|
|
|
Deferred tax assets,
net
|
|
|
|
|
(1,091)
|
|
|
4,106
|
|
|
|
Equity in net loss of
affiliate
|
|
|
|
|
684
|
|
|
-
|
|
|
|
Impairment of
internal use software
|
|
|
|
|
1,364
|
|
|
-
|
|
|
|
Other
|
|
|
|
|
14
|
|
|
7
|
|
|
|
Changes in operating
working capital
|
|
|
|
|
2,500
|
|
|
7,489
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
provided by operating activities
|
|
|
|
|
19,316
|
|
|
28,762
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from
maturities of marketable securities
|
|
|
|
|
66,419
|
|
|
6,634
|
|
|
|
Purchases of
marketable securities
|
|
|
|
|
-
|
|
|
(114,010)
|
|
|
|
Capital
expenditures
|
|
|
|
|
(3,527)
|
|
|
(2,576)
|
|
|
|
Acquisition of
Crashboxx
|
|
|
|
|
-
|
|
|
(1,500)
|
|
|
|
Acquisition of
LoJack, net of cash acquired
|
|
|
|
|
(116,982)
|
|
|
-
|
|
|
|
Advances to
unconsolidated subsidiary
|
|
|
|
|
(737)
|
|
|
-
|
|
|
|
Other
|
|
|
|
|
(36)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
used in investing activities
|
|
|
|
|
(54,863)
|
|
|
(111,452)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from
issuance of convertible notes
|
|
|
|
|
-
|
|
|
172,500
|
|
|
|
Payments of debt
issuance costs
|
|
|
|
|
-
|
|
|
(5,291)
|
|
|
|
Purchase of
convertible note hedges
|
|
|
|
|
-
|
|
|
(31,343)
|
|
|
|
Proceeds from
issuance of warrants
|
|
|
|
|
-
|
|
|
15,991
|
|
|
|
Payment of
acquisition-related note and contingent consideration
|
|
|
-
|
|
|
(1,262)
|
|
|
|
Repurchases of common
stock
|
|
|
|
|
(8,451)
|
|
|
-
|
|
|
|
Taxes paid related to
net share settlement of vested equity awards
|
|
(1,416)
|
|
|
(2,478)
|
|
|
|
Proceeds from
exercise of stock options
|
|
|
|
|
780
|
|
|
487
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
provided (used) by financing activities
|
|
|
|
|
(9,087)
|
|
|
148,604
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
|
|
|
|
(49)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash
and cash equivalents
|
|
|
|
|
(44,683)
|
|
|
65,914
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
|
|
|
|
139,388
|
|
|
34,184
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at end of period
|
|
|
|
$
|
94,705
|
|
$
|
100,098
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- more -
|
|
|
CAL AMP
CORP.
|
|
RECONCILIATION OF
NON-GAAP MEASURES TO GAAP
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
"GAAP" refers to
financial information presented in accordance with U.S. Generally
Accepted Accounting Principles. This press release
includes
|
|
|
|
historical non-GAAP
financial measures, as defined in Regulation G promulgated by the
Securities and Exchange Commission. CalAmp believes
that
|
|
|
|
its presentation of
historical non-GAAP financial measures provides useful
supplementary information to investors. The presentation of
historical
|
|
|
|
non-GAAP financial
measures is not meant to be considered in isolation from or as a
substitute for results prepared in accordance with GAAP.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In this press
release, CalAmp reports the non-GAAP financial measures of Adjusted
basis net income, Adjusted basis net income per diluted
share,
|
|
|
|
non-GAAP gross
margin, Adjusted EBITDA (Earnings Before Investment Income,
Interest Expense, Taxes, Depreciation, Amortization and
|
|
|
|
|
|
Stock-Based
Compensation and other adjustments as identified below), and
Adjusted EBITDA margin. CalAmp uses these non-GAAP
financial
|
|
|
|
measures to enhance
the investor's overall understanding of the financial performance
and future prospects of CalAmp's core business
activities.
|
|
|
|
Specifically, CalAmp
believes that the use of these non-GAAP measures facilitates the
comparison of results of core business operations between
its
|
|
|
|
current and past
periods.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The reconciliation
of the GAAP basis net income (loss) to Adjusted basis (non-GAAP)
net income is as follows (in thousands except per
|
|
|
|
share
amounts):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
|
|
|
August 31,
|
|
August 31,
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
GAAP basis net income
(loss)
|
|
|
$
|
521
|
|
$
|
3,499
|
|
$
|
(2,138)
|
|
$
|
7,558
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intangible assets
amortization expense
|
|
|
|
3,856
|
|
|
1,655
|
|
|
7,346
|
|
|
3,299
|
|
|
|
Stock-based
compensation expense
|
|
|
|
1,621
|
|
|
1,389
|
|
|
3,605
|
|
|
2,609
|
|
|
|
Non-cash interest
expense from amortization of debt discount
|
|
|
|
1,562
|
|
|
1,353
|
|
|
3,069
|
|
|
1,736
|
|
|
|
GAAP basis income tax
provision (benefit)
|
|
|
|
864
|
|
|
2,058
|
|
|
(255)
|
|
|
4,412
|
|
|
|
Equity in net loss of
affiliate
|
|
|
|
372
|
|
|
-
|
|
|
684
|
|
|
-
|
|
|
|
Acquisition and
integration expenses
|
|
|
|
-
|
|
|
-
|
|
|
3,539
|
|
|
-
|
|
|
|
Non-cash cost of
sales and depreciation on markup of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LoJack
inventory and fixed assets
|
|
|
|
671
|
|
|
-
|
|
|
4,681
|
|
|
-
|
|
|
|
Legal arbitration
expenses for LoJack battery claim
|
|
|
|
1,080
|
|
|
-
|
|
|
1,460
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted basis income
before income taxes
|
|
|
|
10,547
|
|
|
9,954
|
|
|
21,991
|
|
|
19,614
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax provision
(non-GAAP basis) (a)
|
|
|
|
(463)
|
|
|
(116)
|
|
|
(847)
|
|
|
(287)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted basis net
income
|
|
|
$
|
10,084
|
|
$
|
9,838
|
|
$
|
21,144
|
|
$
|
19,327
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted basis net
income per diluted share
|
|
|
$
|
0.27
|
|
$
|
0.27
|
|
$
|
0.57
|
|
$
|
0.53
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding on diluted basis
|
|
|
|
36,849
|
|
|
36,716
|
|
|
36,931
|
|
|
36,691
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) The
non-GAAP income tax provision represents cash taxes paid or payable
for the period after giving effect to the utilization of net
operating
|
|
|
|
|
loss and tax credit
carryforwards.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The reconciliation
of GAAP basis net income (loss) to Adjusted EBITDA, and the
calculation of Adjusted EBITDA margin, are as
follows
|
|
|
|
(dollars in
thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
|
|
|
August 31,
|
|
August 31,
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP basis net income
(loss)
|
|
|
$
|
521
|
|
$
|
3,499
|
|
$
|
(2,138)
|
|
$
|
7,558
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
income
|
|
|
|
(455)
|
|
|
43
|
|
|
(908)
|
|
|
15
|
|
|
|
Interest
expense
|
|
|
|
2,474
|
|
|
2,280
|
|
|
4,898
|
|
|
2,928
|
|
|
|
GAAP basis income tax
provision (benefit)
|
|
|
|
864
|
|
|
2,058
|
|
|
(255)
|
|
|
4,412
|
|
|
|
Depreciation
expense
|
|
|
|
2,211
|
|
|
883
|
|
|
4,032
|
|
|
1,675
|
|
|
|
Intangible assets
amortization expense
|
|
|
|
3,856
|
|
|
1,655
|
|
|
7,346
|
|
|
3,299
|
|
|
|
Stock-based
compensation expense
|
|
|
|
1,621
|
|
|
1,389
|
|
|
3,605
|
|
|
2,609
|
|
|
|
Equity in net loss of
affiliate
|
|
|
|
372
|
|
|
-
|
|
|
684
|
|
|
-
|
|
|
|
Acquisition and
integration expenses
|
|
|
|
-
|
|
|
-
|
|
|
3,539
|
|
|
-
|
|
|
|
Non-cash cost of
sales on markup of LoJack inventory
|
|
|
|
309
|
|
|
-
|
|
|
4,319
|
|
|
-
|
|
|
|
Legal arbitration
expenses for LoJack battery claim
|
|
|
|
1,080
|
|
|
-
|
|
|
1,460
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
$
|
12,853
|
|
$
|
11,807
|
|
$
|
26,582
|
|
$
|
22,496
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$
|
90,479
|
|
$
|
69,808
|
|
$
|
181,626
|
|
$
|
135,237
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
margin
|
|
|
|
14.2%
|
|
|
16.9%
|
|
|
14.6%
|
|
|
16.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The calculation of
non-GAAP gross margin is as follows (dollars in
thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
|
|
|
August 31,
|
|
August 31,
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP basis gross
profit
|
|
|
$
|
37,614
|
|
$
|
25,303
|
|
$
|
72,448
|
|
$
|
48,829
|
|
|
|
Non-cash cost of
sales on markup of LoJack inventory and fixed assets
|
|
|
357
|
|
|
-
|
|
|
4,367
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP gross
profit
|
|
|
$
|
37,971
|
|
$
|
25,303
|
|
$
|
76,815
|
|
$
|
48,829
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$
|
90,479
|
|
$
|
69,808
|
|
$
|
181,626
|
|
$
|
135,237
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Non-GAAP gross
margin
|
|
|
|
42.0%
|
|
|
36.2%
|
|
|
42.3%
|
|
|
36.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
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# # #
|
Logo -
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To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/calamp-reports-fiscal-2017-second-quarter-financial-results-300336751.html
SOURCE CalAmp