IRVINE, Calif., Sept. 24,
2020 /PRNewswire/ -- CalAmp (Nasdaq: CAMP), a
global technology solutions pioneer transforming the
mobile connected economy, today reported financial results for
its second quarter ended August 31,
2020.
"Our second quarter results reflect strong sequential growth in
our Software and Subscription Services revenue primarily due to
increased installation activity across our geographies as
automotive dealerships and school districts advanced plans for
reopening, and further supported by solid demand for our K-12 fleet
management and LoJack International services," said Jeff Gardner, CalAmp's president and chief
executive officer. "Additionally, our largest customer,
Caterpillar, had a strong quarter as we continue to support their
3G-to-4G LTE upgrade."
Second Quarter Fiscal Year 2021 Financial Overview
- Consolidated revenue was $83.5
million, up 4.1% sequentially and down 10.4% year-over-year
due to a decline in Telematics Systems revenue largely attributable
to the COVID-19 impact on MRM Telematics and LoJack U.S. SVR
(Stolen Vehicle Recovery) product sales.
- Software & Subscription Services revenue was $33.7 million, up 20.2% sequentially and 8.0%
year-over-year and representing 40.3% of consolidated revenue.
- Network & OEM products revenue increased to $17.2 million, due to strong sequential growth
with its largest customer.
- LoJack U.S. SVR products revenue was $9.1 million, up 37.0% sequentially, due to an
increase in product installations as U.S. auto dealerships reopened
from government-imposed pandemic shutdowns.
- Gross margin was 36.9%, reflecting the decline in Telematics
Systems revenue as well as a one-time charge for the resolution of
a product performance matter.
- GAAP net loss was $9.5 million,
or a loss of $0.28 per share, with
adjusted basis non-GAAP net loss of $1.0
million, or a loss of $0.03
per share.
- Operating cash flow was $8.2
million, with adjusted EBITDA of $5.4
million and an adjusted EBITDA margin of 6.5%.
- Ended the quarter with $107.1
million in cash and cash equivalents and approximately
$262.6 million in outstanding debt,
including $230 million of the 2.0%
Convertible Senior Notes due in August
2025.
Business and Recent Highlights
- Received OCTANe's Best Consumer Innovation Award for Here Comes
The Bus, as well as the 2020 IoT Evolution Product of the Year
Award for CalAmp iOn Vision™ video intelligence
solutions, and CalAmp iOn™ Suite was named to Equipment
Today's 2020 Contractors' Top 50 New Products List.
- Extended relationship with Caterpillar to accelerate migration
of existing fleets to 4G LTE.
- Announced an agreement with major Italian dealership,
Maldarizzi Automotive, to install LoJack Connect on all Fiat
Chrysler Automobiles (FCA), BMW and Mercedes-Benz vehicles sold by
the dealership.
- Appointed Amal Johnson as Chair
of the Board and added new director, Kirsten Wolberg, who has extensive technology
and operations experience in the software industry.
- Released its highly-regarded Bus Guardian, a suite of digital
solutions leveraging contact tracing and hygiene verification to
help schools more safely and confidently return students to
classrooms.
Summary Financial
Information:
|
|
|
|
|
|
|
|
(In thousands except
per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
|
August
31,
|
|
|
August
31,
|
|
Description
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Software &
Subscription Services
|
$
|
33,696
|
|
|
$
|
31,205
|
|
|
$
|
61,725
|
|
|
$
|
56,716
|
|
Telematics
Systems
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Telematics
Products
|
|
40,732
|
|
|
|
48,934
|
|
|
|
86,271
|
|
|
|
100,132
|
|
LoJack U.S. SVR
Products
|
|
9,109
|
|
|
|
13,097
|
|
|
|
15,756
|
|
|
|
25,458
|
|
|
$
|
83,537
|
|
|
$
|
93,236
|
|
|
$
|
163,752
|
|
|
$
|
182,306
|
|
Gross
margin
|
|
37
|
%
|
|
|
40
|
%
|
|
|
38
|
%
|
|
|
40
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(9,478)
|
|
|
$
|
(7,369)
|
|
|
$
|
(23,900)
|
|
|
$
|
(16,062)
|
|
Net loss per diluted
share
|
$
|
(0.28)
|
|
|
$
|
(0.22)
|
|
|
$
|
(0.70)
|
|
|
$
|
(0.48)
|
|
Non-GAAP
measures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted basis net
income (loss)
|
$
|
(1,025)
|
|
|
$
|
4,757
|
|
|
$
|
(473)
|
|
|
$
|
8,925
|
|
Adjusted basis net
income (loss) per diluted share
|
$
|
(0.03)
|
|
|
$
|
0.14
|
|
|
$
|
(0.01)
|
|
|
$
|
0.26
|
|
Adjusted
EBITDA
|
$
|
5,403
|
|
|
$
|
10,647
|
|
|
$
|
11,910
|
|
|
$
|
18,216
|
|
Adjusted EBITDA
margin
|
|
6
|
%
|
|
|
11
|
%
|
|
|
7
|
%
|
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
August
31,
|
|
|
February
29,
|
|
|
|
|
|
|
|
|
|
Description
|
2020
|
|
|
2020
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
107,145
|
|
|
$
|
107,404
|
|
|
|
|
|
|
|
|
|
Working
capital
|
|
128,284
|
|
|
|
116,391
|
|
|
|
|
|
|
|
|
|
Deferred
revenue
|
|
60,105
|
|
|
|
62,156
|
|
|
|
|
|
|
|
|
|
Total debt (carrying
value)
|
|
204,466
|
|
|
|
210,207
|
|
|
|
|
|
|
|
|
|
Third Quarter Fiscal 2021 Business Outlook
The Company is maintaining its policy of not providing quarterly
guidance as visibility into customer demand and product shipments
remains uncertain due to the ongoing effects of the COVID-19
pandemic.
Conference Call and Webcast
CalAmp is hosting a conference call for analysts and investors
to discuss its second quarter fiscal year 2021 results at
1:30 p.m. Pacific Time today.
Participants can listen in via webcast by visiting the Investor
Relations section of our 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 833-714-0868
(+1-778-560-2625 for international callers) and using the
Conference ID # 5650228. Following the call, an audio replay
will also be available by calling 800-585-8367 or +1-416-621-4642
and entering the Conference ID# 5650228. The audio replay will be
available through October 1,
2020.
About CalAmp
CalAmp (Nasdaq: CAMP) is a global technology solutions pioneer
transforming the mobile connected economy. We help reinvent
business and improve lives around the globe with technology
solutions that streamline complex mobile IoT deployments and bring
intelligence to the edge. Our software and subscription-based
services, scalable cloud platform and intelligent devices
collect and assess business-critical data from mobile assets and
their contents. We call this The New How, facilitating
efficient decision making, optimizing mobile asset utilization and
improving road safety. CalAmp, headquartered in Irvine, California, has been publicly traded
since 1983 and has 20 million products installed and over 1.3
million software and services subscribers worldwide. LoJack®,
Tracker™ and Here Comes The Bus® and Bus Guardian are CalAmp
brands. For more information, visit calamp.com, or LinkedIn,
Facebook, 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, 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 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 effects of global outbreaks
of pandemics or contagious diseases or fear of such outbreaks, such
as the recent coronavirus (COVID-19) pandemic; our ability to
successfully and timely accomplish our transformation to a SaaS
company; our transition out of the automotive vehicle financing
business; competitive pressures; pricing declines; demand for our
MRM products; rates of growth in our target markets; prolonged
disruptions of our contract manufacturers' facilities or other
significant operations; 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 our
recent acquisitions; the impact of legal proceedings and compliance
risks; implementation of our new ERP system; the impact on our
business and reputation from information technology system
failures, network disruptions 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 basis net income (loss), Adjusted basis net income
(loss) 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, impairment loss and
certain other adjustments as detailed in the accompanying non-GAAP
reconciliation), and Adjusted EBITDA margin. Adjusted basis net
income (loss) excludes the impact of intangible assets amortization
expense, stock-based compensation, non-cash interest expense,
acquisition and integration expenses, non-cash costs and expenses
arising from purchase accounting adjustments, litigation
provisions, income tax provision adjustments, impairment loss and
certain other adjustments as shown in the non-GAAP reconciliation
provided in the table at the end of this announcement. 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 and associated logos are among the trademarks of CalAmp
and/or its affiliates in the United
States, certain other countries and/or the EU. Any other
trademarks or trade names mentioned are the property of their
respective owners.
CALAMP
CORP.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(Amounts in
thousands, except per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
|
August
31,
|
|
|
August
31,
|
|
|
|
2020
|
|
|
|
2019
|
|
|
|
2020
|
|
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
|
83,537
|
|
|
$
|
|
93,236
|
|
|
$
|
|
163,752
|
|
|
$
|
|
182,306
|
|
Cost of
revenues
|
|
|
52,727
|
|
|
|
|
55,566
|
|
|
|
|
101,889
|
|
|
|
|
109,225
|
|
Gross
profit
|
|
|
30,810
|
|
|
|
|
37,670
|
|
|
|
|
61,863
|
|
|
|
|
73,081
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
6,989
|
|
|
|
|
7,924
|
|
|
|
|
13,313
|
|
|
|
|
14,810
|
|
Selling and
marketing
|
|
|
13,493
|
|
|
|
|
15,868
|
|
|
|
|
26,379
|
|
|
|
|
30,515
|
|
General and
administrative
|
|
|
13,899
|
|
|
|
|
12,893
|
|
|
|
|
27,568
|
|
|
|
|
30,377
|
|
Intangible asset
amortization
|
|
|
1,844
|
|
|
|
|
3,318
|
|
|
|
|
3,736
|
|
|
|
|
6,358
|
|
Restructuring
|
|
|
551
|
|
|
|
|
2,272
|
|
|
|
|
2,459
|
|
|
|
|
2,272
|
|
Impairment
loss
|
|
|
286
|
|
|
|
|
-
|
|
|
|
|
4,575
|
|
|
|
|
-
|
|
|
|
|
37,062
|
|
|
|
|
42,275
|
|
|
|
|
78,030
|
|
|
|
|
84,332
|
|
Operating
loss
|
|
|
(6,252)
|
|
|
|
|
(4,605)
|
|
|
|
|
(16,167)
|
|
|
|
|
(11,251)
|
|
Non-operating income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
income
|
|
|
680
|
|
|
|
|
1,256
|
|
|
|
|
698
|
|
|
|
|
3,337
|
|
Interest
expense
|
|
|
(3,857)
|
|
|
|
|
(5,555)
|
|
|
|
|
(7,934)
|
|
|
|
|
(11,011)
|
|
Other
expense
|
|
|
217
|
|
|
|
|
193
|
|
|
|
|
9
|
|
|
|
|
(206)
|
|
|
|
|
(2,960)
|
|
|
|
|
(4,106)
|
|
|
|
|
(7,227)
|
|
|
|
|
(7,880)
|
|
Loss before income
taxes and impairment loss in investment of affiliate
|
|
|
(9,212)
|
|
|
|
|
(8,711)
|
|
|
|
|
(23,394)
|
|
|
|
|
(19,131)
|
|
Income tax benefit
(provision)
|
|
|
(266)
|
|
|
|
|
1,342
|
|
|
|
|
(506)
|
|
|
|
|
3,599
|
|
Loss before
impairment loss in investment of affiliate
|
|
|
(9,478)
|
|
|
|
|
(7,369)
|
|
|
|
|
(23,900)
|
|
|
|
|
(15,532)
|
|
Impairment loss in
investment of affiliate
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(530)
|
|
Net loss
|
$
|
|
(9,478)
|
|
|
$
|
|
(7,369)
|
|
|
$
|
|
(23,900)
|
|
|
$
|
|
(16,062)
|
|
Loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
|
(0.28)
|
|
|
$
|
|
(0.22)
|
|
|
$
|
|
(0.70)
|
|
|
$
|
|
(0.48)
|
|
Diluted
|
$
|
|
(0.28)
|
|
|
$
|
|
(0.22)
|
|
|
$
|
|
(0.70)
|
|
|
$
|
|
(0.48)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing loss per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
34,256
|
|
|
|
|
33,568
|
|
|
|
|
34,140
|
|
|
|
|
33,475
|
|
Diluted
|
|
|
34,256
|
|
|
|
|
33,568
|
|
|
|
|
34,140
|
|
|
|
|
33,475
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- more -
|
|
CALAMP
CORP.
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(Amounts in
thousands)
|
|
(Unaudited)
|
|
|
|
|
|
August
31,
|
|
|
February
29,
|
|
|
|
|
|
2020
|
|
|
2020
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
$
|
|
107,145
|
|
|
$
|
|
107,404
|
|
Accounts
receivable, net
|
|
|
|
|
|
68,387
|
|
|
|
|
72,273
|
|
Inventories
|
|
|
|
|
|
31,495
|
|
|
|
|
36,778
|
|
Prepaid
expenses and other current assets
|
|
|
|
|
|
24,274
|
|
|
|
|
21,411
|
|
Total current assets
|
|
|
|
|
|
231,301
|
|
|
|
|
237,866
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
|
|
|
53,640
|
|
|
|
|
55,878
|
|
Operating lease
right-of-use assets
|
|
|
|
|
|
23,428
|
|
|
|
|
20,626
|
|
Deferred income tax
assets
|
|
|
|
|
|
4,565
|
|
|
|
|
4,437
|
|
Goodwill
|
|
|
|
|
|
102,162
|
|
|
|
|
106,335
|
|
Other intangible
assets, net
|
|
|
|
|
|
41,404
|
|
|
|
|
45,895
|
|
Other
assets
|
|
|
|
|
|
25,032
|
|
|
|
|
24,768
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
481,532
|
|
|
$
|
|
495,805
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
portion of long-term debt
|
|
|
|
$
|
|
5,184
|
|
|
$
|
|
33,119
|
|
Accounts
payable
|
|
|
|
|
|
31,214
|
|
|
|
|
28,450
|
|
Accrued
payroll and employee benefits
|
|
|
|
|
|
10,599
|
|
|
|
|
9,049
|
|
Deferred
revenue
|
|
|
|
|
|
35,001
|
|
|
|
|
34,704
|
|
Other current
liabilities
|
|
|
|
|
|
21,019
|
|
|
|
|
16,153
|
|
Total current liabilities
|
|
|
|
|
|
103,017
|
|
|
|
|
121,475
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt, net
of current portion
|
|
|
|
|
|
199,282
|
|
|
|
|
177,088
|
|
Operating lease
liabilities
|
|
|
|
|
|
25,225
|
|
|
|
|
24,279
|
|
Other non-current
liabilities
|
|
|
|
|
|
35,030
|
|
|
|
|
35,044
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock
|
|
|
|
|
|
350
|
|
|
|
|
343
|
|
Additional
paid-in capital
|
|
|
|
|
|
226,368
|
|
|
|
|
220,482
|
|
Accumulated
deficit
|
|
|
|
|
|
(105,565)
|
|
|
|
|
(81,531)
|
|
Accumulated
other comprehensive loss
|
|
|
|
|
|
(2,175)
|
|
|
|
|
(1,375)
|
|
Total stockholders' equity
|
|
|
|
|
|
118,978
|
|
|
|
|
137,919
|
|
|
|
|
|
$
|
|
481,532
|
|
|
$
|
|
495,805
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- more -
|
|
|
CALAMP
CORP.
|
|
|
CONDENSED
CONSOLIDATED CASH FLOW STATEMENTS
|
|
|
(Amounts in
thousands)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
|
August
31,
|
|
|
|
|
2020
|
|
|
|
2019
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
|
(23,900)
|
|
|
$
|
|
(16,062)
|
|
|
Depreciation
|
|
|
9,983
|
|
|
|
|
9,036
|
|
|
Intangible asset
amortization expense
|
|
|
3,736
|
|
|
|
|
6,358
|
|
|
Stock-based
compensation expense
|
|
|
6,469
|
|
|
|
|
5,726
|
|
|
Amortization of debt
issue costs and discount
|
|
|
5,219
|
|
|
|
|
7,606
|
|
|
Impairment
losses
|
|
|
4,575
|
|
|
|
|
1,210
|
|
|
Noncash operating
lease cost
|
|
|
2,588
|
|
|
|
|
3,100
|
|
|
Revenue assigned to
factors
|
|
|
(3,349)
|
|
|
|
|
(3,109)
|
|
|
Deferred tax assets,
net
|
|
|
(105)
|
|
|
|
|
(3,437)
|
|
|
Other
|
|
|
301
|
|
|
|
|
986
|
|
|
Changes in operating
assets and liabilities
|
|
|
8,604
|
|
|
|
|
(11,794)
|
|
NET CASH PROVIDED BY
(USED IN) OPERATING ACTIVITIES
|
|
|
14,121
|
|
|
|
|
(380)
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
Proceeds from
maturities and sale of marketable securities
|
|
|
6,264
|
|
|
|
|
27,340
|
|
|
Purchases of
marketable securities
|
|
|
(6,264)
|
|
|
|
|
(17,617)
|
|
|
Capital
expenditures
|
|
|
(7,563)
|
|
|
|
|
(10,720)
|
|
|
Acquisition, net of
cash acquired
|
|
|
-
|
|
|
|
|
(60,634)
|
|
|
Other
|
|
|
-
|
|
|
|
|
(527)
|
|
NET CASH USED IN
INVESTING ACTIVITIES
|
|
|
(7,563)
|
|
|
|
|
(62,158)
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
Proceeds from
Paycheck Protection Program Loan
|
|
|
10,000
|
|
|
|
|
-
|
|
|
Repayment of Paycheck
Protection Program Loan
|
|
|
(10,000)
|
|
|
|
|
-
|
|
|
Proceeds from
revolving credit facility
|
|
|
20,000
|
|
|
|
|
-
|
|
|
Repayment of 2020
Convertible Notes
|
|
|
(27,599)
|
|
|
|
|
-
|
|
|
Payments of issuance
cost of the revolving credit facility
|
|
|
(56)
|
|
|
|
|
-
|
|
|
Taxes paid related to
net share settlement of vested equity awards
|
|
|
(1,485)
|
|
|
|
|
(1,729)
|
|
|
Proceeds from
exercise of stock options and contributions to ESPP
|
|
|
909
|
|
|
|
|
995
|
|
NET CASH USED IN
FINANCING ACTIVITIES
|
|
|
(8,231)
|
|
|
|
|
(734)
|
|
|
|
|
|
|
|
|
|
|
|
|
EFFECT OF EXCHANGE
RATE CHANGE ON CASH
|
|
|
1,414
|
|
|
|
|
456
|
|
Net change in cash
and cash equivalents
|
|
|
(259)
|
|
|
|
|
(62,816)
|
|
Cash and cash
equivalents at beginning of period
|
|
|
107,404
|
|
|
|
|
256,500
|
|
Cash and cash
equivalents at end of period
|
$
|
|
107,145
|
|
|
$
|
|
193,684
|
|
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 historical non-GAAP financial measures,
as defined in Regulation G promulgated by the Securities and
Exchange Commission. We believe that our 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 announcement, we report the non-GAAP financial measures
of Adjusted basis net income (loss), Adjusted basis net income
(loss) per diluted share, Adjusted EBITDA (Earnings Before
Investment Income, Interest Expense, Taxes, Depreciation,
Amortization and stock-based compensation, impairment loss 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 its current and past
periods.
The reconciliation of GAAP basis net 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,
|
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
GAAP basis net
loss
|
$
|
|
(9,478)
|
|
|
$
|
|
(7,369)
|
|
|
$
|
|
(23,900)
|
|
|
$
|
|
(16,062)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intangible assets
amortization expense
|
|
|
1,844
|
|
|
|
|
3,318
|
|
|
|
|
3,736
|
|
|
|
|
6,358
|
|
Stock-based
compensation expense
|
|
|
2,846
|
|
|
|
|
3,183
|
|
|
|
|
5,594
|
|
|
|
|
5,726
|
|
Non-cash interest
expense
|
|
|
2,466
|
|
|
|
|
3,863
|
|
|
|
|
5,219
|
|
|
|
|
7,606
|
|
GAAP basis income tax
provision (benefit)
|
|
|
266
|
|
|
|
|
(1,342)
|
|
|
|
|
506
|
|
|
|
|
(3,599)
|
|
Acquisition and
integration related expenses
|
|
|
-
|
|
|
|
|
46
|
|
|
|
|
-
|
|
|
|
|
1,190
|
|
Litigation and
non-recurring legal expenses
|
|
|
170
|
|
|
|
|
777
|
|
|
|
|
963
|
|
|
|
|
4,584
|
|
Impairment
loss
|
|
|
286
|
|
|
|
|
-
|
|
|
|
|
4,575
|
|
|
|
|
-
|
|
Restructuring
|
|
|
551
|
|
|
|
|
2,272
|
|
|
|
|
2,459
|
|
|
|
|
2,272
|
|
Other
|
|
|
174
|
|
|
|
|
459
|
|
|
|
|
655
|
|
|
|
|
1,450
|
|
Adjusted basis income
(loss) before income taxes
|
|
|
(875)
|
|
|
|
|
5,207
|
|
|
|
|
(193)
|
|
|
|
|
9,525
|
|
Income tax provision
(non-GAAP basis) (a)
|
|
|
(150)
|
|
|
|
|
(450)
|
|
|
|
|
(280)
|
|
|
|
|
(600)
|
|
Adjusted basis net
income (loss)
|
$
|
|
(1,025)
|
|
|
$
|
|
4,757
|
|
|
$
|
|
(473)
|
|
|
$
|
|
8,925
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted basis net
income (loss) per diluted share
|
$
|
|
(0.03)
|
|
|
$
|
|
0.14
|
|
|
$
|
|
(0.01)
|
|
|
$
|
|
0.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding on a diluted basis
|
|
|
34,256
|
|
|
|
|
33,799
|
|
|
|
|
34,140
|
|
|
|
|
33,766
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other favorable
(unfavorable) impacts to Adjusted basis net income (loss)
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred revenue
purchase accounting adjustment
|
$
|
|
(816)
|
|
|
$
|
|
(2,524)
|
|
|
$
|
|
(1,757)
|
|
|
$
|
|
(5,198)
|
|
Resolution of a
product performance matter
|
|
|
(1,400)
|
|
|
|
|
-
|
|
|
|
|
(1,400)
|
|
|
|
|
-
|
|
Inventory excess and
obsolescence
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(596)
|
|
|
|
|
-
|
|
Total other favorable
(unfavorable) impacts to Adjusted basis net income
(loss)
|
$
|
|
(2,216)
|
|
|
$
|
|
(2,524)
|
|
|
$
|
|
(3,753)
|
|
|
$
|
|
(5,198)
|
|
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
|
|
|
Six Months
Ended
|
|
|
August
31,
|
|
|
August
31,
|
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP basis net income
(loss)
|
$
|
|
(9,478)
|
|
|
$
|
|
(7,369)
|
|
|
$
|
|
(23,900)
|
|
|
$
|
|
(16,062)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
income
|
|
|
(680)
|
|
|
|
|
(1,256)
|
|
|
|
|
(698)
|
|
|
|
|
(3,337)
|
|
Interest
expense
|
|
|
3,857
|
|
|
|
|
5,555
|
|
|
|
|
7,934
|
|
|
|
|
11,011
|
|
Income tax provision
(benefit)
|
|
|
266
|
|
|
|
|
(1,342)
|
|
|
|
|
506
|
|
|
|
|
(3,599)
|
|
Depreciation and
amortization
|
|
|
6,917
|
|
|
|
|
8,509
|
|
|
|
|
13,719
|
|
|
|
|
15,394
|
|
Stock-based
compensation
|
|
|
2,846
|
|
|
|
|
3,183
|
|
|
|
|
5,594
|
|
|
|
|
5,726
|
|
Acquisition and
integration related expenses
|
|
|
-
|
|
|
|
|
46
|
|
|
|
|
-
|
|
|
|
|
1,190
|
|
Litigation and
non-recurring legal expenses
|
|
|
170
|
|
|
|
|
777
|
|
|
|
|
963
|
|
|
|
|
4,584
|
|
Impairment
loss
|
|
|
286
|
|
|
|
|
-
|
|
|
|
|
4,575
|
|
|
|
|
-
|
|
Restructuring
|
|
|
551
|
|
|
|
|
2,272
|
|
|
|
|
2,459
|
|
|
|
|
2,272
|
|
Other
|
|
|
668
|
|
|
|
|
272
|
|
|
|
|
758
|
|
|
|
|
1,037
|
|
Adjusted
EBITDA
|
$
|
|
5,403
|
|
|
$
|
|
10,647
|
|
|
$
|
|
11,910
|
|
|
$
|
|
18,216
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other favorable
(unfavorable) impacts to Adjusted EBITDA (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred revenue
purchase accounting adjustment
|
$
|
|
(816)
|
|
|
$
|
|
(2,524)
|
|
|
$
|
|
(1,757)
|
|
|
$
|
|
(5,198)
|
|
Resolution of a
product performance matter
|
|
|
(1,400)
|
|
|
|
|
-
|
|
|
|
|
(1,400)
|
|
|
|
|
-
|
|
Inventory excess and
obsolescence
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(596)
|
|
|
|
|
-
|
|
Total other favorable
(unfavorable) impacts to Adjusted EBITDA
|
$
|
|
(2,216)
|
|
|
$
|
|
(2,524)
|
|
|
$
|
|
(3,753)
|
|
|
$
|
|
(5,198)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
|
83,537
|
|
|
$
|
|
93,236
|
|
|
$
|
|
163,752
|
|
|
$
|
|
182,306
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
margin
|
|
|
6
|
%
|
|
|
|
11
|
%
|
|
|
|
7
|
%
|
|
|
|
10
|
%
|
(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.
|
(b)
|
Other favorable
(unfavorable) impacts to Adjusted basis net income (loss) and
Adjusted EBITDA represent financial impacts that cannot be included
in these Non-GAAP measures, but management believes can provide
insights into underlying operational earnings for the periods
presented above. These items include deferred revenue purchase
accounting adjustment resulting from business acquisitions which
reduces revenue and gross profit, resolution of a product
performance matter with a customer and inventories related to the
automotive vehicle financing business that are obsolete or in
excess of demand forecast.
|
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SOURCE CalAmp