CalAmp (Nasdaq: CAMP), a connected intelligence
company that helps organizations monitor, track and protect their
vital assets, today reported financial results for its third
quarter of fiscal year 2024 ended November 30, 2023.
Third Quarter Fiscal Year 2024 Financial
Overview
- Revenue was $53.6 million, representing
a 13% decline QoQ and a 32% decline YoY driven primarily by softer
demand in the TSP market segment.
- Gross margin was 33%, representing a decline of approximately
340 bps QoQ and 100 bps decline YoY as a result of a shift in
product mix and a higher-than-normal reserve for excess and
obsolete inventory.
- S&SS revenue was $34.5 million, representing a 15% decline
QoQ and a 30% decline YoY.
- Telematics Products revenue was $19.2 million, representing a
10% decline QoQ and a 35% decline YoY.
- Recurring Application Subscription revenues were $17.8 million
in the quarter, representing a 5% decline QoQ as well as YoY.
- Adjusted EBITDA was $1.0 million, representing a $4.8 million
decline QoQ and a $3.7 million decline YoY.
- GAAP net loss from continuing operations was $85 million, or a
loss of $2.27 per share. This includes the impact of a $74
million goodwill impairment charge.
- Ended the quarter with $38.2 million in cash and cash
equivalents down $400K QoQ.
“In the third quarter, strength in our industrial and connected
car segments was offset by soft demand in our TSP segment.
Soft demand with TSPs led to lower than expected consolidated
revenue and Adjusted EBITDA. We continue to work closely with
our TSP customers as they rebalance inventory levels and respond to
an overall competitive environment. We are optimistic that
our rejuvenated efforts in this segment will result in a return to
revenue growth from current levels” said Interim CEO, Jason
Cohenour. “During the quarter, we also implemented initiatives to
narrow our strategic focus and to reduce cash expenses by
approximately $16 million on an annualized basis. Our
sharpened focus on core segments, combined with a more efficient
cost structure, adds considerable leverage to our operating model
as we strive for a return to profitable growth.”
Business and Recent Highlights
- Announced on January 8, 2024, the
appointment of veteran technology leader Chris Adams as President
and Chief Executive Officer, effective January 22, 2024.
- Announced on December 18, 2023, the closing of a $45 million
term loan with Lynrock Lake Master Fund LP to provide the company
with additional financial capacity in support of its business
transformation.
- CalAmp’s international connected car solution was granted
Toyota “Genuine” status, enabling port installation, and
streamlining the sales and customer delivery process.
- Released the new Vision 2.1 solution, enabling telematics
functionality through the standalone dash cam.
- Completed the technical migration of devices from legacy PULS
device management platform to DMCTC.
Summary Financial Information From
Continuing Operations:(In thousands except per share
amounts)
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
November 30, |
|
|
November 30, |
|
Description |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Software & Subscription Services (S&SS) |
|
$ |
34,456 |
|
|
$ |
49,264 |
|
|
$ |
119,766 |
|
|
$ |
133,332 |
|
Telematics Products |
|
|
19,169 |
|
|
|
29,625 |
|
|
|
66,464 |
|
|
|
83,111 |
|
|
|
$ |
53,625 |
|
|
$ |
78,889 |
|
|
$ |
186,230 |
|
|
$ |
216,443 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin |
|
|
33 |
% |
|
|
34 |
% |
|
|
36 |
% |
|
|
38 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(85,004 |
) |
|
$ |
(4,733 |
) |
|
$ |
(93,261 |
) |
|
$ |
(24,400 |
) |
Net loss per diluted
share |
|
$ |
(2.27 |
) |
|
$ |
(0.13 |
) |
|
$ |
(2.52 |
) |
|
$ |
(0.68 |
) |
Non-GAAP measures: |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
1,031 |
|
|
$ |
4,698 |
|
|
$ |
12,950 |
|
|
$ |
11,320 |
|
Adjusted EBITDA margin |
|
|
2 |
% |
|
|
6 |
% |
|
|
7 |
% |
|
|
5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flow from Operations |
|
$ |
1,830 |
|
|
$ |
3,834 |
|
|
$ |
5,993 |
|
|
$ |
(21,841 |
) |
|
|
November 30, |
|
|
February 28, |
|
Description |
|
2023 |
|
|
2023 |
|
Cash and cash equivalents |
|
$ |
38,169 |
|
|
$ |
41,928 |
|
Working capital |
|
|
69,258 |
|
|
|
68,295 |
|
Deferred revenue |
|
|
37,434 |
|
|
|
36,552 |
|
Total debt (carrying
value) |
|
|
228,148 |
|
|
|
228,121 |
|
|
|
|
|
|
|
|
|
|
November 30, |
|
S&SS Supplemental Information: |
|
2023 |
|
|
2022 |
|
Remaining performance obligations |
|
$ |
186,036 |
|
|
$ |
252,200 |
|
Subscribers |
|
|
1,833 |
|
|
|
1,460 |
|
|
Three Months Ended |
|
|
Nov 30, 2023 |
|
|
Nov 30, 2022 |
|
|
Aug 31, 2023 |
|
Revenue by type of goods
and services: |
|
|
|
|
|
|
|
|
Telematics devices and accessories (1) |
$ |
31,217 |
|
|
$ |
53,331 |
|
|
$ |
37,358 |
|
Rental income and other
services |
$ |
4,583 |
|
|
|
6,307 |
|
|
$ |
5,656 |
|
Recurring application
subscriptions (2) |
$ |
17,825 |
|
|
|
19,251 |
|
|
$ |
18,700 |
|
Total |
$ |
53,625 |
|
|
$ |
78,889 |
|
|
$ |
61,714 |
|
|
|
|
|
|
|
|
|
|
Recurring application
subscriptions, excluding Automotive Vehicle Finance Business
(1) |
$ |
17,823 |
|
|
$ |
18,761 |
|
|
$ |
18,694 |
|
(1) Telematics devices and accessories during the three months
ended August 31, 2023 includes a reversal of $1.2M of revenue
related to an exchange of product in support of our customer's
specialized regional requirements.
(2) Recurring application subscriptions includes $0.0 million,
$0.5 million, and $0.0 million during the three months ended
November 30, 2023, November 30, 2022, and August 31, 2023,
respectively, attributable to the auto vehicle finance business
which has been completely wound down. The three months ended August
31, 2023 additionally includes ($0.4M) of adjustments related to
prior periods.
Fourth Quarter Fiscal Year 2024 Business
Outlook
We expect Q4 FY24 revenues to be down slightly on a sequential
basis and adjusted EBITDA to be stable.
A reconciliation of non-GAAP guidance financial
measures to corresponding GAAP guidance financial measures is not
available on a forward-looking basis without unreasonable effort
due to the uncertainty and potential variability of expenses, such
as stock-based compensation expense-related charges, that may be
incurred in the future and cannot be reasonably determined or
predicted at this time. It is important to note that these factors
could be material to our results of operations computed in
accordance with GAAP.
Conference Call and Webcast
CalAmp is hosting a conference call for analysts and investors
to discuss its third quarter fiscal year 2024 results at 2:00 p.m.
Pacific Time today. Participants can listen in via webcast by
visiting the Investor Relations section of its 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 90 days after the call.
The conference call can also be accessed by dialing 833-470-1428
(+1-404-975-4839 for international callers) and using the
Conference ID #757030. Following the call, an audio replay will
also be available by calling 866-813-9403 or 1-929-458-6194 and
entering the Replay ID # 181919. The audio replay will be available
through January 16, 2024.
About CalAmp
CalAmp (Nasdaq: CAMP) provides flexible
solutions to help organizations worldwide monitor, track and
protect their vital assets. Our unique combination of software,
devices, and platform enables commercial and government
organizations worldwide to increase efficiency, safety and
transparency while accommodating the unique ways they do business.
With over 10 million active edge devices and 275+ issued or pending
patents, CalAmp is the telematics leader organizations turn to for
innovation and dependability. For more information, visit
calamp.com, or LinkedIn, Twitter, YouTube or CalAmp Blog.
Forward-Looking Statements
This announcement contains forward-looking
statements (including within the meaning of Section 21E of the U.S.
Securities Exchange Act of 1934, as amended, and Section 27A of the
U.S. Securities Act of 1933, as amended) concerning CalAmp. These
statements include, but are not limited to, statements that address
our expected future business and financial performance and
statements about (i) our plans, objectives and intentions with
respect to future operations, services and products, (ii) our
competitive position and opportunities, (iii) our comprehensive
review of strategic alternatives focused on enhancing shareholder
value, and (iv) other statements identified by words such as such
as “may”, “will”, “expect”, “intend”, “plan”, “potential”,
“believe”, “seek”, “could”, “estimate”, “judgment”, “targeting”,
“should”, “anticipate”, “predict”, “project”, “aim”, “goal”, and
similar words, phrases or expressions. These forward-looking
statements are based on management’s current expectations and
beliefs, as well as assumptions made by, and information currently
available to, management, current market trends and market
conditions, and involve risks and uncertainties, many of which are
outside of our control, and which may cause actual results to
differ materially from those contained in forward-looking
statements. Accordingly, you should not place undue reliance on
such statements. Particular uncertainties that could materially
affect future results include any risks associated with global
economic conditions and concerns; the outcome of our comprehensive
review of strategic alternatives, including the availability of any
strategic alternatives that are worthwhile to pursue; the effects
of global outbreaks of pandemics or contagious diseases or fear of
such outbreaks, such as the recent coronavirus (COVID-19) pandemic;
global component shortages due to supply chain constraints caused
by the COVID-19 pandemic; disruptions in sales, operations,
relationships with customers, suppliers, employees; our ability to
successfully and timely accomplish our transformation to a SaaS
solutions provider; our transition out of the automotive vehicle
financing business; competitive pressures; pricing declines; demand
for our telematics products; rates of growth in our target markets;
prolonged disruptions of our contract manufacturers’ facilities or
other significant operations; force majeure or force-majeure-like
events at our contract manufacturers’ facilities including
component shortages; the ongoing diversification of our global
supply chain; our dependence on outsourced service providers for
certain key business services and their ability to execute to our
requirements; our ability to improve gross margin; cost-containment
measures; legislative, trade, tariff, and regulatory actions;
integration, unexpected charges or expenses in connection with
acquisitions; the impact of legal proceedings and compliance risks;
the impact on our business and reputation from information
technology system failures, network disruptions, cyber-attacks, or
losses or unauthorized access to, or release of, confidential
information; the ability of the Company to comply with laws and
regulations regarding data protection; our ability to protect our
intellectual property and the unpredictability of any associated
litigation expenses; any expenses or reputational damage associated
with resolving customer product and warranty and indemnification
claims; our ability to sell to new types of customers and to keep
pace with technological advances; market acceptance of the end
products into which our products are designed; and other events and
trends on a national, regional and global scale, including those of
a political, economic, business, competitive, and regulatory
nature. More information on these risks and other potential factors
that could affect our financial results is included in our filings
with the U.S. Securities and Exchange Commission (“SEC”), including
in the “Risk Factors” and “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” sections of our most
recently filed periodic reports on Form 10-K and Form 10-Q and
subsequent filings, which you may obtain for free at the SEC’s
website at http://www.sec.gov. We undertake no intent or obligation
to publicly update or revise any of these forward-looking
statements, whether as a result of new information, future events
or otherwise, which speak as of their respective dates except as
required by law.
Non-GAAP Financial Measures
“GAAP” refers to financial information presented
in accordance with U.S. Generally Accepted Accounting Principles.
This announcement includes non-GAAP financial measures, as defined
in Regulation G promulgated by the SEC. We believe that our
presentation of non-GAAP financial measures provides useful
supplementary information to investors. These non-GAAP financial
measures are provided in addition to, and not as a substitute for
measures of financial performance prepared in accordance with
GAAP.
In this announcement, we report the non-GAAP
financial measures of Adjusted EBITDA (earnings before investment
income, interest expense, taxes, depreciation, amortization,
stock-based compensation, acquisition and integration expenses,
non-cash costs and expenses arising from purchase accounting
adjustments, litigation and legal expenses, impairment losses and
certain other adjustments as detailed in the accompanying non-GAAP
reconciliation), and Adjusted EBITDA margin. We use these non-GAAP
financial measures to provide investors with additional information
about our financial performance and future prospects of our core
business activities. Internally, these non-GAAP measures are
significant measures used by management for purposes of evaluating
our core operating performance, establishing internal budgets,
calculating return on investment for development programs and
growth initiatives, comparing performance with internal forecasts
and targeted business models, strategic planning, evaluating and
valuing potential acquisition candidates and how their operations
compare to our operations, and benchmarking performance externally
against our competitors. We believe this non-GAAP financial
information provides additional insight into our ongoing
performance and have therefore chosen to provide this information
to investors to help them evaluate our results of ongoing
operations and enable additional period-to-period comparisons. The
presentation of these and other similar items in our non-GAAP
financial results should not be interpreted as implying that these
items are non-recurring, infrequent, or unusual.
CalAmp, LoJack, TRACKER, Here Comes The Bus, Bus
Guardian, iOn Vision, CrashBoxx and associated logos are among the
trademarks of CalAmp and/or its affiliates in the United States,
certain other countries and/or the EU. Spireon acquired the LoJack®
U.S. Stolen Vehicle Recovery (SVR) business from CalAmp and holds
an exclusive license to the LoJack mark in the United States and
Canada. Any other trademarks or trade names mentioned are the
property of their respective owners.
AT CALAMP: |
CalAmp Media |
Jikun Kim |
Contact: |
SVP & CFO |
Mark Gaydos |
ir@calamp.com |
Chief Marketing & Product Officer |
|
Mgaydos@calamp.com |
CALAMP CORP.CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(Amounts in thousands, except per share
amounts)(Unaudited) |
|
|
|
|
Three Months Ended |
|
|
Fiscal Year Ended |
|
|
November 30, |
|
|
November 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
53,625 |
|
|
$ |
78,889 |
|
|
$ |
186,230 |
|
|
$ |
216,443 |
|
Cost of revenues |
|
36,051 |
|
|
$ |
52,275 |
|
|
|
119,251 |
|
|
|
135,170 |
|
Gross profit |
|
17,574 |
|
|
|
26,614 |
|
|
|
66,979 |
|
|
|
81,273 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
4,051 |
|
|
$ |
5,479 |
|
|
|
14,693 |
|
|
|
19,236 |
|
Selling and marketing |
|
8,884 |
|
|
$ |
12,486 |
|
|
|
29,525 |
|
|
|
36,698 |
|
General and administrative |
|
10,114 |
|
|
$ |
11,172 |
|
|
|
31,482 |
|
|
|
39,864 |
|
Intangible asset amortization |
|
1,116 |
|
|
$ |
1,323 |
|
|
|
3,466 |
|
|
|
3,995 |
|
Restructuring |
|
1,718 |
|
|
$ |
- |
|
|
|
1,718 |
|
|
|
- |
|
Impairment loss |
|
75,106 |
|
|
|
- |
|
|
|
75,106 |
|
|
|
- |
|
Total operating expenses |
|
100,989 |
|
|
|
30,460 |
|
|
|
155,990 |
|
|
|
99,793 |
|
Operating loss |
|
(83,415 |
) |
|
|
(3,846 |
) |
|
|
(89,011 |
) |
|
|
(18,520 |
) |
Non-operating income
(expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment income |
|
(124 |
) |
|
$ |
818 |
|
|
|
360 |
|
|
|
646 |
|
Interest expense |
|
(1,410 |
) |
|
$ |
(1,648 |
) |
|
|
(4,662 |
) |
|
|
(4,645 |
) |
Other expense, net |
|
(17 |
) |
|
$ |
211 |
|
|
|
577 |
|
|
|
(1,238 |
) |
Total non-operating
expenses |
|
(1,551 |
) |
|
|
(619 |
) |
|
|
(3,725 |
) |
|
|
(5,237 |
) |
Loss from operations before
income taxes |
|
(84,966 |
) |
|
|
(4,465 |
) |
|
|
(92,736 |
) |
|
|
(23,757 |
) |
Income tax provision |
|
(38 |
) |
|
$ |
(268 |
) |
|
|
(525 |
) |
|
|
(643 |
) |
Net loss |
$ |
(85,004 |
) |
|
$ |
(4,733 |
) |
|
$ |
(93,261 |
) |
|
$ |
(24,400 |
) |
Loss per share - continuing
operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
(2.27 |
) |
|
$ |
(0.13 |
) |
|
$ |
(2.52 |
) |
|
$ |
(0.68 |
) |
Diluted |
$ |
(2.27 |
) |
|
$ |
(0.13 |
) |
|
$ |
(2.52 |
) |
|
$ |
(0.68 |
) |
Shares used in computing
earnings (loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
37,427 |
|
|
|
36,357 |
|
|
|
37,023 |
|
|
|
36,027 |
|
Diluted |
|
37,427 |
|
|
|
36,357 |
|
|
|
37,023 |
|
|
|
36,027 |
|
CALAMP CORP.CONDENSED CONSOLIDATED BALANCE
SHEETS(Amounts in
thousands)(Unaudited) |
|
|
|
|
|
|
|
November 30, |
|
|
February 28, |
|
|
|
|
|
2023 |
|
|
2023 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
|
$ |
38,169 |
|
|
$ |
41,928 |
|
Accounts receivable, net |
|
|
|
|
70,909 |
|
|
|
82,946 |
|
Inventories |
|
|
|
|
34,059 |
|
|
|
23,902 |
|
Prepaid expenses and other current assets |
|
|
|
|
25,824 |
|
|
|
26,019 |
|
Total current assets |
|
|
|
|
168,961 |
|
|
|
174,795 |
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment,
net |
|
|
|
|
25,724 |
|
|
|
32,832 |
|
Operating lease right-of-use
assets |
|
|
|
|
10,168 |
|
|
|
12,293 |
|
Deferred income tax
assets |
|
|
|
|
2,927 |
|
|
|
3,275 |
|
Goodwill |
|
|
|
|
20,583 |
|
|
|
94,214 |
|
Other intangible assets,
net |
|
|
|
|
23,608 |
|
|
|
26,633 |
|
Other assets |
|
|
|
|
29,270 |
|
|
|
36,078 |
|
Total assets |
|
|
|
$ |
281,241 |
|
|
$ |
380,120 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders'
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
|
Current portion of long-term debt |
|
|
|
$ |
- |
|
|
$ |
705 |
|
Accounts payable |
|
|
|
|
46,695 |
|
|
|
52,716 |
|
Accrued payroll and employee benefits |
|
|
|
|
10,112 |
|
|
|
11,766 |
|
Deferred revenue |
|
|
|
|
26,328 |
|
|
|
25,448 |
|
Other current liabilities |
|
|
|
|
16,568 |
|
|
|
15,865 |
|
Total current liabilities |
|
|
|
|
99,703 |
|
|
|
106,500 |
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt, net of current
portion |
|
|
|
|
228,148 |
|
|
|
227,416 |
|
Operating lease
liabilities |
|
|
|
|
9,007 |
|
|
|
12,314 |
|
Other non-current
liabilities |
|
|
|
|
18,522 |
|
|
|
19,583 |
|
Total liabilities |
|
|
|
|
355,380 |
|
|
|
365,813 |
|
Stockholders' equity: |
|
|
|
|
|
|
|
|
|
|
Common stock |
|
|
|
|
379 |
|
|
|
374 |
|
Additional paid-in capital |
|
|
|
|
189,747 |
|
|
|
184,672 |
|
Accumulated deficit |
|
|
|
|
(262,077 |
) |
|
|
(168,816 |
) |
Accumulated other comprehensive loss |
|
|
|
|
(2,188 |
) |
|
|
(1,923 |
) |
Total stockholders' equity |
|
|
|
|
(74,139 |
) |
|
|
14,307 |
|
Total liabilities and stockholders' equity |
|
|
|
$ |
281,241 |
|
|
$ |
380,120 |
|
|
|
|
|
|
|
|
|
|
|
|
|
CALAMP CORP.CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS(Amounts in thousands)
(Unaudited) |
|
|
|
|
|
|
Nine Months Ended |
|
|
|
November 30, |
|
|
|
|
2023 |
|
|
|
2022 |
|
CASH FLOWS FROM
OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
Net loss |
$ |
(93,261 |
) |
|
$ |
(24,400 |
) |
|
|
|
|
|
|
|
|
|
|
Depreciation expense |
|
12,632 |
|
|
|
12,108 |
|
|
Intangible asset
amortization |
|
3,466 |
|
|
|
3,995 |
|
|
Stock-based compensation |
|
5,469 |
|
|
|
8,186 |
|
|
Amortization of debt issuance
costs and discount |
|
825 |
|
|
|
877 |
|
|
Impairment losses |
|
75,106 |
|
|
|
- |
|
|
Non-cash operating lease
cost |
|
2,575 |
|
|
|
2,591 |
|
|
Revenue assigned to
factors |
|
(798 |
) |
|
|
(2,143 |
) |
|
Deferred tax assets, net |
|
480 |
|
|
|
132 |
|
|
Other |
|
381 |
|
|
|
122 |
|
|
Changes in operating assets
and liabilities of continuing operations |
|
(882 |
) |
|
|
(23,309 |
) |
NET CASH PROVIDED
BY (USED IN) OPERATING ACTIVITIES |
|
5,993 |
|
|
|
(21,841 |
) |
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
Capital expenditures |
|
(6,176 |
) |
|
|
(9,294 |
) |
NET CASH USED IN
INVESTING ACTIVITIES |
|
(6,176 |
) |
|
|
(9,294 |
) |
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
Taxes paid related to net
share settlement of vested equity awards |
|
(520 |
) |
|
|
(1,675 |
) |
|
Proceeds from exercise of
stock options and contributions to employee stock purchase
plan |
|
131 |
|
|
|
502 |
|
NET CASH USED IN
FINANCING ACTIVITIES |
|
(389 |
) |
|
|
(1,173 |
) |
|
|
|
|
|
|
|
|
|
EFFECT OF EXCHANGE
RATE CHANGES ON CASH AND CASH EQUIVALENTS |
|
(3,187 |
) |
|
|
(2,007 |
) |
Net change in cash
and cash equivalents |
|
(3,759 |
) |
|
|
(34,315 |
) |
Cash and cash
equivalents at beginning of period |
|
41,928 |
|
|
|
79,221 |
|
Cash and cash
equivalents at end of period |
$ |
38,169 |
|
|
$ |
44,906 |
|
CALAMP
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 announcement includes non-GAAP financial measures, as defined
in Regulation G promulgated by the Securities and Exchange
Commission. We believe that our presentation of non-GAAP financial
measures provides useful supplementary information to investors.
The presentation of 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 announcement, we report the non-GAAP
financial measures of Adjusted EBITDA (earnings before investment
income, interest expense, taxes, depreciation, amortization,
stock-based compensation and other adjustments as identified
below), and Adjusted EBITDA margin. We use these non-GAAP financial
measures to provide investors with an overall understanding of the
financial performance and future prospects of our core business
activities. Specifically, we believe that the use of these non-GAAP
measures facilitates the comparison of results of core business
operations between current and past periods.
The reconciliation of GAAP-basis net loss to
Adjusted EBITDA and the calculation of Adjusted EBITDA margin are
as follows (dollars in thousands):
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
November 30, |
|
|
November 30, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP basis net loss |
$ |
(85,004 |
) |
|
$ |
(4,733 |
) |
|
$ |
(93,261 |
) |
|
$ |
(24,400 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment (income) loss |
|
124 |
|
|
|
(818 |
) |
|
|
(360 |
) |
|
|
(646 |
) |
Interest expense |
|
1,410 |
|
|
|
1,648 |
|
|
|
4,662 |
|
|
|
4,645 |
|
Income tax provision |
|
38 |
|
|
|
268 |
|
|
|
525 |
|
|
|
643 |
|
Depreciation and
amortization |
|
4,953 |
|
|
|
5,216 |
|
|
|
16,098 |
|
|
|
16,103 |
|
Stock-based compensation |
|
1,567 |
|
|
|
2,030 |
|
|
|
5,469 |
|
|
|
8,186 |
|
Litigation and non-recurring
legal expenses |
|
91 |
|
|
|
86 |
|
|
|
280 |
|
|
|
4,634 |
|
Restructuring |
|
1,718 |
|
|
|
- |
|
|
|
1,718 |
|
|
|
- |
|
Costs incurred in transition of
LoJack North America business to acquiror (a) |
|
(79 |
) |
|
|
232 |
|
|
|
(319 |
) |
|
|
1,217 |
|
Impairment loss |
|
75,106 |
|
|
|
- |
|
|
|
75,106 |
|
|
|
- |
|
Other |
|
1,107 |
|
|
|
769 |
|
|
|
3,032 |
|
|
|
938 |
|
Adjusted EBITDA |
$ |
1,031 |
|
|
$ |
4,698 |
|
|
$ |
12,950 |
|
|
$ |
11,320 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
53,625 |
|
|
$ |
78,889 |
|
|
$ |
186,230 |
|
|
$ |
216,443 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin |
|
2 |
% |
|
|
6 |
% |
|
|
7 |
% |
|
|
5 |
% |
(a) Costs incurred in transition of business to
acquiror are attributable to the wind-down and transfer of the
LoJack North America business to Spireon.
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