CalAmp Corp. (NASDAQ: CAMP), a leading
provider of wireless products, services and solutions, today
reported results for its fiscal 2012 second quarter ended August
31, 2011. Key elements include:
- Consolidated revenue of $33.8 million, up 14.6% over prior year
period; wireless datacom revenue of $25.5 million, up 41% over
prior year period
- GAAP net income of $1.4 million, or $0.05 per diluted share;
Adjusted Basis (non-GAAP) net income of $3.0 million, or $0.11 per
diluted share, both at the high end of the Company's guidance
range
- Net debt balance reduced by $1.6 million to $4.0 million at
August 31, 2011
Michael Burdiek, CalAmp's President and Chief Executive Officer,
commented, "Our wireless datacom business continued to experience
strong growth in the second quarter with our mobile resource
management (MRM) business posting record revenues. We have
experienced consistently strong demand for our MRM products and
services with applications in fleet management, vehicle finance,
asset tracking, stolen vehicle recovery and remote car start. In
addition, we believe we are competitively positioned for several
emerging MRM applications such as pay as you drive (PAYD)
insurance."
Mr. Burdiek added, "In wireless networks we made progress on a
number of projects in the public safety and energy sectors,
including a recent win on a smart grid project with one of our tier
one utility metering channel partners. In our Positive Train
Control rail project we achieved a key milestone in the second
quarter by completing the design phase and shipment of pilot units.
Subsequent to the second quarter we began the pre-production phase
of the project and are on track to begin shipments of radios during
the current quarter. Recent contract change orders have increased
the overall value of this project to more than $14 million and we
expect meaningful revenue from this project into the second quarter
of fiscal 2013."
Mr. Burdiek continued, "Our satellite business results were in
line with our expectations. During the second quarter we completed
the transition of our satellite business to a variable cost
operating model, further lowering our breakeven point for this
business. We expect this transition will enhance the operating
flexibility of our satellite business and we expect positive
operating income from our satellite business for the second half of
this fiscal year."
As previously announced, last month the Company renewed and
enhanced its credit facility with Square 1 Bank to reduce its
borrowing cost and provide greater financial flexibility to
capitalize on market growth opportunities. Concurrently, the
Company retired its $5 million 12% subordinated notes that were
scheduled to mature next year. As a result of these actions, the
Company expects to reduce its annual cash interest expense by
approximately $0.5 million.
Fiscal 2012 Second Quarter Results Total
revenue for the fiscal 2012 second quarter was $33.8 million
compared with $29.5 million for the second quarter of fiscal 2011.
The year-over-year increase in consolidated revenue was primarily
due to higher sales in the Company's wireless datacom business
segment. Wireless datacom revenue increased 41% to $25.5 million
from $18.1 million in the same period last year, while satellite
revenue declined to $8.3 million from $11.4 million in the same
period last year. Wireless datacom revenue in the latest quarter
includes $3.0 million generated by the sale of two patents.
Consolidated gross profit for the fiscal 2011 second quarter was
$11.8 million or 35.0% of revenue, compared to gross profit of $7.4
million or 25.0% of revenue for the same period last year. The
increases in gross profit and gross margin percentage in the latest
quarter compared to fiscal 2011 second quarter were due in large
part to the increase in wireless datacom revenue including the $3.0
million patent sale, for which there was no associated cost of
revenue.
Results of operations for the fiscal 2012 second quarter as
determined in accordance with U.S. generally accepted accounting
principles ("GAAP") was net income of $1.4 million, or $0.05 per
diluted share, compared to a net loss of $0.9 million or $0.03 per
diluted share, in the second quarter of last year. In the fiscal
2012 second quarter, in connection with the closing of its French
subsidiary, the Company recorded non-recurring charges of $1.2
million including a non-cash foreign currency translation loss of
$0.8 million. The Company also recorded non-recurring costs and
expenses of approximately $0.35 million related to the transition
of its satellite business. In addition, the Company incurred a
non-cash charge of approximately $0.5 million upon prepaying its
$5.0 million 12.0% subordinated notes for the accelerated write-off
of debt issue costs and discount that would otherwise have been
recognized as interest expense in subsequent quarters.
The Adjusted Basis (non-GAAP) net income for the fiscal 2012
second quarter was $3.0 million, or $0.11 per diluted share,
compared to an Adjusted Basis net loss of $0.2 million, or $0.01
loss per diluted share, for the same period last year. The Adjusted
Basis net income excludes the impact of amortization of intangible
assets, stock-based compensation expense and the non-recurring
foreign currency translation loss of $0.8 million associated with
the shut-down of the Company's French subsidiary, and includes an
income tax provision or benefit that reflects income taxes
paid/payable (or received/receivable) based on the non-GAAP pretax
income (loss) for the period. A reconciliation of the GAAP basis
pretax income (loss) to the Adjusted Basis net income (loss) is
provided in the table at the end of this press release.
Liquidity At August 31, 2011, the Company
had total cash of $4.3 million and total debt of $8.3 million
consisting of $5.3 million drawn under the bank revolver and $3.0
million outstanding under a bank term loan. Net cash provided by
operating activities was $3.1 million during the fiscal 2012 second
quarter, and the unused borrowing capacity on the bank revolver was
$3.7 million at quarter-end.
Business Outlook Commenting on the
Company's business outlook, Mr. Burdiek said, "Based on our most
recent projections, we expect fiscal 2012 third quarter
consolidated revenues in the range of $30 to $34 million, with
wireless datacom revenues, net of the second quarter patents sale,
to be up and satellite revenues to be flat. We anticipate third
quarter GAAP Basis net income per share in the range of $0.02 to
$0.06 per diluted share. The Adjusted Basis (non-GAAP) net income
for the fiscal 2012 third quarter is expected to be in the range of
$0.05 to $0.09 per diluted share."
Mr. Burdiek concluded, "Though there are macroeconomic
uncertainties in the overall business environment, based on our
current backlog and robust pipeline of opportunities, we expect
continued profitable growth in our core wireless datacom business
over the coming quarters. Likewise, prospects for our satellite
business are improving and we expect it to achieve operating
profitability in the second half of the year. On a consolidated
basis, we expect higher net income in the second half of this year
than the amount generated in the first half."
Conference Call and Webcast A conference
call and simultaneous webcast to discuss fiscal 2012 second quarter
financial results and business outlook will be held today at 4:30
p.m. Eastern / 1:30 p.m. Pacific. CalAmp's President and CEO
Michael Burdiek and CFO Rick Vitelle will host the conference call.
Participants can dial into the live conference call by calling
877-941-9205 (480-629-9692 for international callers). An audio
replay will be available through October 6, 2012, by calling
800-406-7325 (303-590-3030 for international callers) and entering
the access code 4472472.
Additionally, a live webcast of the call will be available on
CalAmp's web site at www.calamp.com. Participants are encouraged to
visit the web site at least 15 minutes prior to the start of the
call to register, download and install any necessary audio
software. After the live webcast, a replay will remain available
until the next quarterly conference call in the Investor Relations
section of CalAmp's web site.
About CalAmp CalAmp develops and markets
wireless communications solutions that deliver data, voice and
video for critical networked communications and other applications.
The Company's two business segments are Wireless DataCom, which
serves utility, governmental and enterprise customers, and
Satellite, which focuses on the North American Direct Broadcast
Satellite market. 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 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. Actual results could differ materially
from those implied by such forward-looking statements due to a
variety of factors, including product demand, competitive pressures
and pricing declines in the Company's wireless and satellite
markets, the timing of customer approvals of new product designs,
the length and extent of the global economic downturn that has and
may continue to adversely affect the Company's business, and other
risks or uncertainties that are described in the Company's Report
on Form 10-K for fiscal 2011 as filed on April 28, 2011 with the
Securities and Exchange Commission. Although the Company believes
the expectations reflected in such forward-looking statements are
based upon reasonable assumptions, it can give no assurance that
its expectations will be attained. The Company undertakes no
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or
otherwise.
CAL AMP CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands except per share amounts)
Three Months Ended Six Months Ended
August 31, August 31,
------------------ ------------------
2011 2010 2011 2010
-------- -------- -------- --------
Revenues $ 33,801 $ 29,490 $ 68,355 $ 55,836
Cost of revenues 21,976 22,122 47,098 42,345
-------- -------- -------- --------
Gross profit 11,825 7,368 21,257 13,491
-------- -------- -------- --------
Operating expenses:
Research and development 2,679 2,779 5,783 5,542
Selling 2,852 2,675 5,444 5,297
General and administrative 3,030 2,200 5,529 4,709
Intangible asset amortization 310 276 662 582
-------- -------- -------- --------
8,871 7,930 17,418 16,130
-------- -------- -------- --------
Operating income (loss) 2,954 (562) 3,839 (2,639)
Non-operating expense, net (1,592) (368) (1,948) (768)
-------- -------- -------- --------
Income (loss) before income taxes 1,362 (930) 1,891 (3,407)
Income tax provision (6) - (15) -
-------- -------- -------- --------
Net income (loss) $ 1,356 $ (930) $ 1,876 $ (3,407)
======== ======== ======== ========
Earnings (loss) per share - basic
and diluted $ 0.05 $ (0.03) $ 0.07 $ (0.13)
======== ======== ======== ========
Shares used in computing earnings
(loss) per share:
Basic 27,524 27,094 27,441 27,038
Diluted 28,310 27,094 28,268 27,038
BUSINESS SEGMENT INFORMATION
(Unaudited, in thousands)
Three Months Ended Six Months Ended
August 31, August 31,
------------------ ------------------
2011 2010 2011 2010
-------- -------- -------- --------
Revenues
Wireless DataCom $ 25,523 $ 18,074 $ 47,560 $ 33,893
Satellite 8,278 11,416 20,795 21,943
-------- -------- -------- --------
Total revenues $ 33,801 $ 29,490 $ 68,355 $ 55,836
======== ======== ======== ========
Gross profit
Wireless DataCom $ 11,380 $ 6,223 $ 19,984 $ 11,553
Satellite 445 1,145 1,273 1,938
-------- -------- -------- --------
Total gross profit $ 11,825 $ 7,368 $ 21,257 $ 13,491
======== ======== ======== ========
Operating income (loss)
Wireless DataCom $ 4,399 $ 497 $ 6,529 $ (136)
Satellite (447) (129) (735) (567)
Corporate expenses (998) (930) (1,955) (1,936)
-------- -------- -------- --------
Total operating income (loss) $ 2,954 $ (562) $ 3,839 $ (2,639)
======== ======== ======== ========
CAL AMP CORP.
CONSOLIDATED BALANCE SHEETS
(In thousands)
August 31, February 28,
2011 2011
----------- ------------
Assets (Unaudited)
Current assets:
Cash and cash equivalents $ 4,256 $ 4,241
Accounts receivable, net 14,523 16,814
Inventories 11,844 9,890
Costs and estimated earnings in excess of
billings on uncompleted contracts 2,203 1,331
Deferred income tax assets 2,073 1,961
Prepaid expenses and other current assets 3,752 3,866
----------- ------------
Total current assets 38,651 38,103
Property, equipment and improvements, net 1,543 1,877
Deferred income tax assets, less current portion 9,758 9,887
Intangible assets, net 3,350 4,012
Other assets 1,078 1,606
----------- ------------
$ 54,380 $ 55,485
=========== ============
Liabilities and Stockholders' Equity
Current liabilities:
Bank working capital line of credit $ 5,274 $ 7,489
Current portion of long-term debt 500 -
Accounts payable 13,618 14,103
Accrued payroll and employee benefits 3,382 3,341
Deferred revenue 5,667 5,796
Other current liabilities 2,515 2,140
----------- ------------
Total current liabilities 30,956 32,869
----------- ------------
Long-term debt 2,500 4,460
Other non-current liabilities 570 554
Stockholders' equity:
Common stock 287 281
Additional paid-in capital 153,204 153,135
Accumulated deficit (133,072) (134,948)
Accumulated other comprehensive loss (65) (866)
----------- ------------
Total stockholders' equity 20,354 17,602
----------- ------------
$ 54,380 $ 55,485
=========== ============
CAL AMP CORP.
CONSOLIDATED CASH FLOW STATEMENTS
(Unaudited - In thousands)
Six Months Ended
August 31,
------------------
2011 2010
-------- --------
Cash flows from operating activities:
Net income (loss) $ 1,876 $ (3,407)
Depreciation and amortization 1,385 1,253
Stock-based compensation expense 1,099 1,004
Non-cash interest expense 724 268
Write-off of cumulative foreign currency translation
account 801 -
Deferred tax assets, net - 807
Changes in operating working capital (494) 104
Other - 9
-------- --------
Net cash provided by operating activities 5,391 38
-------- --------
Cash flows from investing activities:
Capital expenditures (389) (712)
Collections on note receivable 298 229
-------- --------
Net cash used in investing activities (91) (483)
-------- --------
Cash flows from financing activities:
Proceeds (repayments) of bank line of credit (2,215) 1,898
Proceeds from bank term loan 3,000 -
Repayment of subordinated notes payable (5,000) -
Payment of debt issue costs (63) -
Taxes paid related to net share settlement of vested
equity awards (1,016) (388)
Proceeds from exercise of stock options 9 -
-------- --------
Net cash provided by (used in) financing activities (5,285) 1,510
-------- --------
Net change in cash and cash equivalents 15 1,065
Cash and cash equivalents at beginning of period 4,241 2,986
-------- --------
Cash and cash equivalents at end of period $ 4,256 $ 4,051
======== ========
CAL AMP CORP. NON-GAAP EARNINGS
RECONCILIATION (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 (Loss) and Adjusted Basis Net
Income (Loss) Per Diluted Share. 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 a report of
Adjusted Basis Net Income (Loss) and Adjusted Basis Net Income
(Loss) Per Diluted Share provides consistency in its financial
reporting and facilitates the comparison of results of core
business operations between its current and past periods.
The reconciliation of the GAAP Basis Pretax Income (Loss) to
Adjusted Basis (non-GAAP) Net Income (Loss) is as follows (in
thousands except per share amounts):
Three Months Ended Six Months Ended
August 31, August 31,
-------------------- --------------------
2011 2010 2011 2010
--------- --------- --------- ---------
GAAP basis pretax income (loss) $ 1,362 $ (930) $ 1,891 $ (3,407)
Amortization of intangible
assets 310 276 662 582
Stock-based compensation expense 567 481 1,099 1,004
Write-off of cumulative foreign
currency translation account 801 - 801 -
--------- --------- --------- ---------
Pretax income (loss) (non-GAAP
basis) 3,040 (173) 4,453 (1,821)
Income tax provision (non-GAAP
basis) (a) (6) - (15) -
--------- --------- --------- ---------
Adjusted Basis net income (loss) $ 3,034 $ (173) $ 4,438 $ (1,821)
========= ========= ========= =========
Adjusted Basis net income (loss)
per diluted share $ 0.11 $ (0.01) $ 0.16 $ (0.07)
Weighted average common shares
outstanding on diluted basis 28,310 27,094 28,268 27,038
(a) The non-GAAP income tax provision reflects the income taxes
paid/payable (or received/receivable) based on on the non-GAAP pretax
income (loss) for the period. The Company has net operating loss
carryforwards to offset the pre-tax book income for the three- and six-
month periods ended August 31, 2011.
AT THE COMPANY: Rick Vitelle Chief Financial Officer
(805) 987-9000 AT FINANCIAL RELATIONS BOARD: Marilynn Meek
General Information (212) 827-3773 mmeek@mww.com
CalAmp (NASDAQ:CAMP)
Historical Stock Chart
From Aug 2024 to Sep 2024
CalAmp (NASDAQ:CAMP)
Historical Stock Chart
From Sep 2023 to Sep 2024
