IRVINE, Calif., Sept. 28, 2017 /PRNewswire/ -- CalAmp
(NASDAQ: CAMP), a telematics pioneer leading transformation in
a global connected economy, today reported its financial results
for the second quarter ended August 31,
2017.
"We experienced accelerating momentum on multiple fronts in the
quarter, including strong financial results," said Michael Burdiek, President and Chief Executive
Officer. "We continue to be a leader and pioneer in the Connected
Vehicle and Industrial Internet of Things ("IoT") marketplace. We
announced a number of novel product releases and also expanded on
our important partnerships in the quarter, including a contract
award from a new blue-chip customer representing the largest SaaS
contract in the company's history. We also expanded our
relationship with Caterpillar and launched a new program with
another global heavy equipment customer. We continue to make
progress and achieved a number of important strategic milestones
while establishing a solid foundation for long-term growth."
Business and Q2 Financial Highlights
- Telematics Systems and Software & Subscription Services
business segments experienced solid growth, which on a combined
basis increased $6.0 million or 7.1%
year over year.
- GAAP net income was $0.34 per
diluted share while non-GAAP net income was $0.27 per diluted share.
- Our MRM Telematics product revenue grew $8.5 million or 29% year over year to a record
$38.1 million and was a key growth
driver for the Telematics Systems segment.
- Caterpillar revenues grew 7.4% sequentially to more than
$10.5 million, a new quarterly
record.
- We commenced shipments to a new global heavy equipment OEM,
which is expected to contribute revenue of approximately
$2 million in the second half of the
current fiscal year.
- We announced our V-Series Electronic Logging Device ("ELD")
designed to enable the U.S. trucking industry to meet the Federal
Motor Carrier Safety Administration ELD mandate.
- We were awarded the largest SaaS contract in the company's
history with a global freight transport company to track mobile
assets across North America. This program will roll out over
the next few quarters and is expected to contribute 10% incremental
growth in SaaS recurring revenue.
- We announced the availability of the CalAmp Telematics Suite
that enables transportation, construction, government, energy and
other companies to view detailed information about vehicles,
equipment and packages with a single software platform.
- Car Security, a LoJack licensee in Argentina, adopted CalAmp's comprehensive
telematics technology stack, including an extensive device
portfolio, and our CrashBoxx™ vehicle risk management services
platform to streamline their connected car offerings.
- We received $15 million of net
proceeds in June 2017 from a legal
settlement with a former LoJack supplier, contributing to strong
operating cash flow of $36 million
for the first six months of the year. We expect to receive
approximately $31 million of
additional net proceeds over the next four quarters thereby further
contributing to our strong free cash flows.
Fiscal 2018 Second
Quarter Financial Highlights
|
|
Quarterly
Financial Information for the three months ended:
|
(In thousands except
per share amounts)
|
|
|
|
|
|
|
|
August
31,
|
Description
|
|
2017
|
|
2016
|
|
|
|
|
|
Revenues:
|
|
|
|
|
Telematics Systems
|
|
$ 74,070
|
|
$ 68,851
|
Software & Subscription Services
|
|
15,697
|
|
14,956
|
Satellite (1)
|
|
-
|
|
6,672
|
|
|
$ 89,767
|
|
$ 90,479
|
|
|
|
|
|
Gross
margin
|
|
41.0%
|
|
41.6%
|
|
|
|
|
|
Net
income
|
|
$ 12,232
|
|
$
521
|
Net income per
diluted share
|
|
$
0.34
|
|
$
0.01
|
|
|
|
|
|
Non-GAAP
measures:
|
|
|
|
|
Adjusted basis net income
|
|
$
9,575
|
|
$ 10,084
|
Adjusted basis net income per diluted share
|
|
$
0.27
|
|
$
0.27
|
Adjusted EBITDA
|
|
$ 12,301
|
|
$ 12,853
|
Adjusted EBITDA margin
|
|
13.7%
|
|
14.2%
|
|
|
|
(1) The
Satellite business ceased operations effective August 31,
2016.
|
|
At August 31, 2017,
we had total cash and marketable securities of $130.6 million and
total debt outstanding of $150.5 million, which is the carrying
amount of our 1.625% convertible notes in the face amount of $172.5
million.
|
Fiscal 2018 Third
Quarter Business Outlook
|
(In thousands except
per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
Range
|
Description
|
|
Low
|
|
High
|
|
|
|
|
|
GAAP financial
information:
|
|
|
|
|
Revenues
|
|
$ 89,000
|
|
$ 94,000
|
Net
income per diluted share
|
|
$
0.28
|
|
$
0.34
|
|
|
|
|
|
Non-GAAP financial
information:
|
|
|
|
|
Adjusted
EBITDA
|
|
$ 12,000
|
|
$ 14,500
|
Adjusted
basis net income per diluted share
|
|
$
0.27
|
|
$
0.33
|
|
|
|
|
|
Third quarter GAAP-basis net income per diluted share above
includes $0.28 associated with the
estimated gain from the expected receipt of the second installment
of the legal settlement with a former LoJack supplier. This
expected third quarter gain is excluded from Adjusted basis
(Non-GAAP) net income per diluted share above.
Conference Call and Webcast
CalAmp is hosting a
conference call for analysts and investors to discuss its 2018
second quarter results and outlook for its 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# 81907706.
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# 81907706. The audio replay will be available through
October 12, 2017.
About CalAmp
CalAmp (NASDAQ: CAMP) is a telematics
pioneer leading transformation in a global connected economy. We
help reinvent businesses and improve lives around the globe with
technology solutions that streamline complex IoT deployments and
bring intelligence to the edge. Our software applications,
scalable cloud services, and intelligent devices collect and assess
business-critical data from mobile assets, cargo, companies, cities
and people. We call this The New How, powering autonomous
IoT interaction, facilitating efficient decision making, optimizing
resource utilization, and improving road safety. CalAmp is
headquartered in Irvine,
California and has been publicly traded since 1983. LoJack
is a wholly owned subsidiary of CalAmp. 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) CalAmp's plans,
objectives and intentions with respect to future operations and
products, (ii) CalAmp's competitive position and
opportunities, and (iii) 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 CalAmp's 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; competitive pressures; pricing
declines; rates of growth in our target markets; prolonged
disruptions of our or our contract manufacturers' manufacturing
facilities or other significant operations; our dependence on
outsourced service providers for certain key business services and
their ability to execute to our requirements; our ability to
maintain or improve gross margin; our ability to maintain tax
concessions in certain jurisdictions; 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. CalAmp's filings with the U.S. Securities and Exchange
Commission ("SEC"), which you may obtain for free at the SEC's
website at http://www.sec.gov, discuss some of the important risk
factors that may affect CalAmp's business, results of operations,
and financial condition. CalAmp undertakes no intent or
obligation to publicly update or revise any these forward-looking
statements, whether as a result of new information, future events
or otherwise, 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. CalAmp believes that its 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, or superior to, measures of financial
performance prepared in accordance with GAAP.
In this announcement, CalAmp reports the non-GAAP financial
measures of Adjusted Basis net income, Adjusted Basis net income
per diluted share, 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 provisions, gain from legal settlement and
certain other adjustments as detailed in the accompanying non-GAAP
reconciliation), and Adjusted EBITDA margin. Adjusted Basis net
income excludes the impact of intangible assets amortization
expense, stock-based compensation, non-cash interest from
amortization of debt discount, acquisition and integration
expenses, non-cash costs and expenses arising from purchase
accounting adjustments, litigation provisions, gain on legal
settlement 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. Management does not believe that these items are
reflective of CalAmp's underlying performance. However, internally,
these non-GAAP measures are significant measures used by management
for purposes of evaluating the core operating performance of
CalAmp, 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 CalAmp's
operations, and benchmarking performance externally against
CalAmp's competitors. CalAmp believes this non-GAAP financial
information provides additional insight into its ongoing
performance and has therefore chosen to provide this information to
investors for a more consistent basis of comparison and to help
them evaluate the results of CalAmp's ongoing operations and enable
more meaningful period-to-period comparisons. The presentation of
these and other similar items in CalAmp's non-GAAP financial
results should not be interpreted as implying that these items are
non-recurring, infrequent, or unusual.
CALAMP
CORP.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited, in
thousands except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
August 31,
|
|
August 31,
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
89,767
|
|
$
|
90,479
|
|
$
|
177,848
|
|
$
|
181,626
|
Cost of
revenues
|
|
52,929
|
|
|
52,865
|
|
|
103,567
|
|
|
109,178
|
Gross
profit
|
|
36,838
|
|
|
37,614
|
|
|
74,281
|
|
|
72,448
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
6,725
|
|
|
5,885
|
|
|
12,557
|
|
|
11,976
|
Selling and
marketing
|
|
12,515
|
|
|
12,683
|
|
|
25,186
|
|
|
23,991
|
General and
administrative
|
|
10,756
|
|
|
11,284
|
|
|
27,166
|
|
|
27,267
|
Intangible
asset amortization
|
|
3,710
|
|
|
3,856
|
|
|
7,568
|
|
|
7,346
|
|
|
33,706
|
|
|
33,708
|
|
|
72,477
|
|
|
70,580
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
3,132
|
|
|
3,906
|
|
|
1,804
|
|
|
1,868
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
Investment
income
|
|
396
|
|
|
455
|
|
|
729
|
|
|
908
|
Interest
expense
|
|
(2,567)
|
|
|
(2,474)
|
|
|
(5,085)
|
|
|
(4,898)
|
Gain on legal
settlement
|
|
15,032
|
|
|
-
|
|
|
15,032
|
|
|
-
|
Other income
(expense)
|
|
314
|
|
|
(130)
|
|
|
431
|
|
|
413
|
|
|
13,175
|
|
|
(2,149)
|
|
|
11,107
|
|
|
(3,577)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes and equity in net
loss of affiliate
|
|
16,307
|
|
|
1,757
|
|
|
12,911
|
|
|
(1,709)
|
Income tax benefit
(provision)
|
|
(3,699)
|
|
|
(864)
|
|
|
(2,619)
|
|
|
255
|
Income (loss) before
equity in net loss of
affiliate
|
|
12,608
|
|
|
893
|
|
|
10,292
|
|
|
(1,454)
|
Equity in net loss of
affiliate
|
|
(376)
|
|
|
(372)
|
|
|
(713)
|
|
|
(684)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
12,232
|
|
$
|
521
|
|
$
|
9,579
|
|
$
|
(2,138)
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.35
|
|
$
|
0.01
|
|
$
|
0.27
|
|
$
|
(0.06)
|
Diluted
|
$
|
0.34
|
|
$
|
0.01
|
|
$
|
0.27
|
|
$
|
(0.06)
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing earnings (loss) per
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
35,204
|
|
|
36,390
|
|
|
35,136
|
|
|
36,425
|
Diluted
|
|
36,021
|
|
|
36,849
|
|
|
35,973
|
|
|
36,425
|
|
|
|
|
|
|
|
|
|
|
|
|
CALAMP
CORP.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
(Unaudited)
|
|
|
August 31,
|
|
February
28,
|
|
|
2017
|
|
2017
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
126,636
|
|
$
|
93,706
|
Short-term
marketable securities
|
|
|
4,002
|
|
|
6,722
|
Accounts
receivable, net
|
|
|
64,492
|
|
|
67,403
|
Inventories
|
|
|
31,103
|
|
|
29,279
|
Prepaid
expenses and other current assets
|
|
|
11,770
|
|
|
9,595
|
Total current
assets
|
|
|
238,003
|
|
|
206,705
|
|
|
|
|
|
|
|
Property, equipment
and improvements, net
|
|
|
20,935
|
|
|
21,162
|
Deferred income tax
assets
|
|
|
38,270
|
|
|
27,504
|
Goodwill
|
|
|
72,980
|
|
|
72,980
|
Other intangible
assets, net
|
|
|
59,790
|
|
|
67,223
|
Other
assets
|
|
|
16,013
|
|
|
12,565
|
|
|
|
|
|
|
|
|
|
$
|
445,991
|
|
$
|
408,139
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
34,721
|
|
$
|
30,266
|
Accrued
payroll and employee benefits
|
|
|
6,748
|
|
|
7,955
|
Deferred
revenue
|
|
|
15,804
|
|
|
14,662
|
Other current
liabilities
|
|
|
30,235
|
|
|
24,958
|
Total current
liabilities
|
|
|
87,508
|
|
|
77,841
|
|
|
|
|
|
|
|
1.625% convertible
senior unsecured notes
|
|
|
150,506
|
|
|
146,827
|
Other non-current
liabilities
|
|
|
21,766
|
|
|
20,229
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
Common
stock
|
|
|
356
|
|
|
353
|
Additional
paid-in capital
|
|
|
213,021
|
|
|
211,187
|
Accumulated
deficit
|
|
|
(26,497)
|
|
|
(47,757)
|
Accumulated
other comprehensive loss
|
|
|
(669)
|
|
|
(541)
|
Total stockholders'
equity
|
|
|
186,211
|
|
|
163,242
|
|
|
$
|
445,991
|
|
$
|
408,139
|
|
|
|
|
|
|
|
CALAMP
CORP.
|
CONDENSED
CONSOLIDATED CASH FLOW STATEMENTS
|
(Unaudited - In
thousands)
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
August 31,
|
|
|
|
2017
|
|
|
2016
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
9,579
|
|
$
|
(2,138)
|
|
Depreciation
expense
|
|
3,983
|
|
|
4,032
|
|
Intangible assets
amortization expense
|
|
7,568
|
|
|
7,346
|
|
Stock-based
compensation expense
|
|
4,044
|
|
|
3,605
|
|
Tax benefits on
vested and exercised equity awards
|
|
241
|
|
|
-
|
|
Amortization of
convertible debt issue costs and discount
|
|
3,679
|
|
|
3,460
|
|
Foreign currency
remeasurement gains
|
|
(385)
|
|
|
(460)
|
|
Deferred tax assets,
net
|
|
669
|
|
|
(1,091)
|
|
Equity in net loss of
affiliate
|
|
713
|
|
|
684
|
|
Impairment of
internal use software
|
|
-
|
|
|
1,364
|
|
Other
|
|
55
|
|
|
14
|
|
Changes in operating
working capital
|
|
5,863
|
|
|
2,500
|
|
Net cash
provided by operating activities
|
|
36,009
|
|
|
19,316
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
Proceeds from
maturities of marketable securities
|
|
7,268
|
|
|
66,419
|
|
Purchases of
marketable securities
|
|
(4,548)
|
|
|
-
|
|
Capital
expenditures
|
|
(3,713)
|
|
|
(3,527)
|
|
Acquisition of
LoJack, net of cash acquired
|
|
-
|
|
|
(116,982)
|
|
Advances to
affiliate
|
|
(650)
|
|
|
(737)
|
|
Other
|
|
(135)
|
|
|
(36)
|
|
Net cash
used in investing activities
|
|
(1,778)
|
|
|
(54,863)
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
Repurchases of common
stock
|
|
-
|
|
|
(8,451)
|
|
Taxes paid related to
net share settlement of vested equity awards
|
|
(2,335)
|
|
|
(1,416)
|
|
Proceeds from
exercise of stock options
|
|
128
|
|
|
780
|
|
Net cash
used in financing activities
|
|
(2,207)
|
|
|
(9,087)
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
|
906
|
|
|
(49)
|
Net change in cash
and cash equivalents
|
|
32,930
|
|
|
(44,683)
|
Cash and cash
equivalents at beginning of period
|
|
93,706
|
|
|
139,388
|
|
|
|
|
|
|
|
Cash and cash
equivalents at end of period
|
$
|
126,636
|
|
$
|
94,705
|
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 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, Adjusted EBITDA (Earnings Before Investment
Income, Interest Expense, Taxes, Depreciation, Amortization
and Stock-Based Compensation, gain on legal settlement 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 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,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
GAAP basis net income
(loss)
|
$
|
12,232
|
|
$
|
521
|
|
$
|
9,579
|
|
$
|
(2,138)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intangible assets
amortization expense
|
|
3,710
|
|
|
3,856
|
|
|
7,568
|
|
|
7,346
|
Stock-based
compensation expense
|
|
2,227
|
|
|
1,621
|
|
|
4,044
|
|
|
3,605
|
Non-cash interest
expense from amortization of debt discount
|
|
1,653
|
|
|
1,562
|
|
|
3,263
|
|
|
3,069
|
GAAP basis income tax
provision (benefit)
|
|
3,699
|
|
|
864
|
|
|
2,619
|
|
|
(255)
|
Equity in net loss of
affiliate
|
|
376
|
|
|
372
|
|
|
713
|
|
|
684
|
Acquisition and
integration expenses
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3,539
|
Non-cash cost of
sales and depreciation on markup of LoJack inventory and fixed
assets
|
|
169
|
|
|
671
|
|
|
355
|
|
|
4,681
|
Gain on legal
settlement
|
|
(15,032)
|
|
|
-
|
|
|
(15,032)
|
|
|
-
|
Litigation
provision
|
|
411
|
|
|
-
|
|
|
6,486
|
|
|
-
|
Legal expense for
LoJack battery performance issue
|
|
430
|
|
|
1,080
|
|
|
927
|
|
|
1,460
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted basis income
before income taxes
|
|
9,875
|
|
|
10,547
|
|
|
20,522
|
|
|
21,991
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax provision
(non-GAAP basis) (a)
|
|
(300)
|
|
|
(463)
|
|
|
(550)
|
|
|
(847)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted basis net
income
|
$
|
9,575
|
|
$
|
10,084
|
|
$
|
19,972
|
|
$
|
21,144
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted basis net
income per diluted share
|
$
|
0.27
|
|
$
|
0.27
|
|
$
|
0.56
|
|
$
|
0.57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding on diluted basis
|
|
36,021
|
|
|
36,849
|
|
|
35,973
|
|
|
36,931
|
|
(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 losses 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,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP basis net income
(loss)
|
$
|
12,232
|
|
$
|
521
|
|
$
|
9,579
|
|
$
|
(2,138)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
income
|
|
(396)
|
|
|
(455)
|
|
|
(729)
|
|
|
(908)
|
Interest
expense
|
|
2,567
|
|
|
2,474
|
|
|
5,085
|
|
|
4,898
|
Income tax provision
(benefits)
|
|
3,699
|
|
|
864
|
|
|
2,619
|
|
|
(255)
|
Depreciation
|
|
1,958
|
|
|
2,211
|
|
|
3,983
|
|
|
4,032
|
Amortization of
intangible assets
|
|
3,710
|
|
|
3,856
|
|
|
7,568
|
|
|
7,346
|
Stock-based
compensation
|
|
2,227
|
|
|
1,621
|
|
|
4,044
|
|
|
3,605
|
Equity in net loss of
affiliate
|
|
376
|
|
|
372
|
|
|
713
|
|
|
684
|
Acquisition and
integration expenses
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3,539
|
Non-cash COGS from
inventory fair value write-up
|
|
-
|
|
|
309
|
|
|
-
|
|
|
4,319
|
Legal expense for
LoJack battery performance issue
|
|
430
|
|
|
1,080
|
|
|
927
|
|
|
1,460
|
Litigation
provision
|
|
411
|
|
|
-
|
|
|
6,486
|
|
|
-
|
Gain on legal
settlement
|
|
(15,032)
|
|
|
-
|
|
|
(15,032)
|
|
|
-
|
Other
|
|
119
|
|
|
-
|
|
|
239
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
12,301
|
|
$
|
12,853
|
|
$
|
25,482
|
|
$
|
26,582
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
89,767
|
|
$
|
90,479
|
|
$
|
177,848
|
|
$
|
181,626
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
margin
|
|
13.7%
|
|
|
14.2%
|
|
|
14.3%
|
|
|
14.6%
|
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SOURCE CalAmp