IRVINE, Calif.,
June 24, 2021 /PRNewswire/ --
CalAmp (Nasdaq: CAMP), a connected intelligence company
helping businesses and people track, monitor and recover vital
assets with real-time visibility and insights, today reported
financial results for its first quarter of fiscal year 2022 ended
May 31, 2021. On March 16, 2021, the Company announced that
Spireon acquired its LoJack North America business, which is being
accounted for as discontinued operations and thereby excluded from
the reported financial results from continuing
operations.
"We continued to experience strong demand for our products
and solutions throughout the quarter, resulting in record Software
and Subscription Services revenue and another solid quarter with
our largest customer," commented Jeff
Gardner, CalAmp's president and chief executive officer.
"Our SaaS business is benefiting from a strong recovery from the
prior year low-point at the onset of the pandemic, and there are
signs of increased business activity not only in the U.S. but also
in our targeted geographies around the world in support of
customers' 3G-to-4G upgrades. We are cautiously managing through
the global component shortages that persist in the supply chain and
expect revenue growth to accelerate as the situation
normalizes."
First Quarter Financial Overview
- Total revenue increased from the prior year to
$80.5 million, which includes
$0.8 million of revenue from the
LoJack North America discontinued operations.
- Software and Subscription Services (S&SS) revenue was
a record $35.0 million, representing
44.0% of consolidated revenue, which was up 26.2% from the prior
year quarter.
- Telematics Products revenue was $44.6 million, down 5.6% sequentially as supply
chain shortages affected shipments despite continuing strong demand
from customers engaged in the 3G-to-4G transition.
- Sales to its largest customer were $17.3 million, up 58.9% from the prior-year
quarter.
- Gross margin was 40.7%, an increase of 120 basis points
year-over-year and a decrease of 150 basis points sequentially due
to increased component costs attributable to supply chain
challenges.
- GAAP net loss from continuing operations was $6.0 million, or a loss of $0.17 per share.
- Adjusted basis non-GAAP net income was $2.9 million, or $0.08 per diluted share.
- Adjusted EBITDA was $8.4
million, or 11% of revenue compared to Adjusted EBITDA of
$8.3 million, or 11% of revenue in
the prior year.
- Total S&SS subscribers were 954,000, an 8% increase
from the prior-year quarter, excluding the Automotive Vehicle
Finance business.
- Ended the quarter with $96.2
million in cash and cash equivalents.
Other Business and Recent Highlights
- CalAmp's LoJack Italia subsidiary partnered with the
Koelliker Group to pre-install all SERES 3 C-SUV electric vehicles
with LoJack Connect services to improve driving habits and enhance
vehicle safety.
- CalAmp's Tracker UK subsidiary and cap hpi partnered to
help car dealers across the U.K. find new ways to serve their
pre-owned car customers while also generating incremental revenues
that they never thought they had.
- Launched new operation, LoJack España, to provide
connected intelligence and enhanced vehicle theft protection for
local fleets in Spain and
throughout the Pan-European region as part of its global expansion
strategy.
- Increased K-12 market penetration with Bus Guardian to
over 200 school districts across North
America.
- Entered new partnership with Program Autonoleggio, a
leading long- and short-term corporate fleet rental company with
13,000 cars and commercial vans active across Italy.
- Appointed retired FedEx Ground CEO, Henry J. Maier, to its Board of Directors,
further enhancing domain expertise in the Transportation and
Logistics market vertical.
- Recognized as a "3+" company by 50/50 Women on
Boards™ for having three or more women on its Board of
Directors as CalAmp continues its focus on diversity and inclusion
within the workplace.
Summary Financial Information From Continuing
Operations:
|
|
(In thousands except
per share amounts)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
May 31,
|
|
Description
|
|
2021
|
|
|
2020
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Software &
Subscription Services (S&SS)
|
|
$
|
35,043
|
|
|
$
|
27,773
|
|
Telematics
Products
|
|
|
44,631
|
|
|
|
45,958
|
|
|
|
$
|
79,674
|
|
|
$
|
73,731
|
|
Gross
margin
|
|
|
41
|
%
|
|
|
39
|
%
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(6,000)
|
|
|
$
|
(6,588)
|
|
Net loss per diluted
share
|
|
$
|
(0.17)
|
|
|
$
|
(0.19)
|
|
Non-GAAP
measures:
|
|
|
|
|
|
|
|
|
Adjusted basis net
income
|
|
$
|
2,946
|
|
|
$
|
2,970
|
|
Adjusted basis net
income per diluted share
|
|
$
|
0.08
|
|
|
$
|
0.09
|
|
Adjusted
EBITDA
|
|
$
|
8,385
|
|
|
$
|
8,291
|
|
Adjusted EBITDA
margin
|
|
|
11
|
%
|
|
|
11
|
%
|
|
|
|
|
|
|
|
|
|
|
|
May 31,
|
|
|
February 28,
|
|
Description
|
|
2021
|
|
|
2021
|
|
Cash and cash
equivalents
|
|
$
|
96,184
|
|
|
$
|
94,624
|
|
Working
capital
|
|
|
107,503
|
|
|
|
103,267
|
|
Deferred
revenue
|
|
|
49,899
|
|
|
|
52,817
|
|
Total debt (carrying
value)
|
|
|
187,705
|
|
|
|
186,471
|
|
|
|
|
|
|
|
|
|
|
|
|
May 31,
|
|
|
May 31,
|
|
S&SS Supplemental
Information:
|
|
2021
|
|
|
2020
|
|
S&SS TTM
recurring revenue
|
|
$
|
97,271
|
|
|
$
|
92,059
|
|
Less: Automotive
vehicle finance and other
|
|
|
(9,652)
|
|
|
|
(11,592)
|
|
Core S&SS TTM
recurring revenue
|
|
$
|
87,619
|
|
|
$
|
80,467
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
S&SS remaining
contractual performance obligation
|
|
$
|
144,288
|
|
|
$
|
135,748
|
|
Less: Automotive
vehicle finance and other
|
|
|
(7,100)
|
|
|
|
(12,841)
|
|
Core S&SS
remaining contractual performance obligation
|
|
$
|
137,188
|
|
|
$
|
122,907
|
|
|
|
|
|
|
|
|
|
|
Total S&SS
subscribers
|
|
|
1,230
|
|
|
|
1,308
|
|
Less: Automotive
vehicle finance
|
|
|
(276)
|
|
|
|
(425)
|
|
Core S&SS
subscribers
|
|
|
954
|
|
|
|
883
|
|
|
|
|
|
|
|
|
|
|
Second Quarter Fiscal 2022 Business
Outlook
The Company is maintaining its policy of not providing
quarterly guidance as visibility into product shipments remains
uncertain due to global supply shortages and the lingering effects
of the global COVID-19 pandemic.
Conference Call and Webcast
CalAmp is hosting a conference call for analysts and
investors to discuss its first quarter fiscal year 2022 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 #7796301. 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# 7796301. The audio replay will be
available through July 1,
2021.
About CalAmp
CalAmp (Nasdaq: CAMP) is a connected intelligence company
that helps people and businesses work smarter. We partner with
transportation and logistics, industrial equipment, government and
automotive industries to deliver insights that help businesses make
the right decisions. Our applications, platform and smart devices
allow them to track, monitor and recover their vital assets with
real-time visibility that reduces costs, maximizes productivity and
improves safety. Headquartered in Irvine,
California, CalAmp has 22 million products installed and
approximately 1.2 million software and services subscribers
worldwide. 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;
disruptions in sales, operations, relationships with customers,
suppliers, employees, and consumers given our sale of LoJack North
America operations; 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; implementation of our new ERP system;
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 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, impairment losses 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 asset 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 losses 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,
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® North America
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.
CALAMP CORP.
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
|
(Amounts in thousands, except per share
amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
May 31,
|
|
|
|
|
2021
|
|
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
|
79,674
|
|
|
$
|
|
73,731
|
|
|
Cost of
revenues
|
|
|
47,227
|
|
|
|
|
44,626
|
|
|
Gross
profit
|
|
|
32,447
|
|
|
|
|
29,105
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
6,940
|
|
|
|
|
5,936
|
|
|
Selling and
marketing
|
|
|
12,462
|
|
|
|
|
10,437
|
|
|
General and
administrative
|
|
|
12,686
|
|
|
|
|
11,764
|
|
|
Intangible asset
amortization
|
|
|
1,253
|
|
|
|
|
1,176
|
|
|
Restructuring
|
|
|
336
|
|
|
|
|
1,873
|
|
|
|
|
|
33,677
|
|
|
|
|
31,186
|
|
|
Operating
loss
|
|
|
(1,230)
|
|
|
|
|
(2,081)
|
|
|
Non-operating income
(expense):
|
|
|
|
|
|
|
|
|
|
|
Investment
income
|
|
|
648
|
|
|
|
|
18
|
|
|
Interest
expense
|
|
|
(3,849)
|
|
|
|
|
(4,077)
|
|
|
Other expense,
net
|
|
|
(1,276)
|
|
|
|
|
(208)
|
|
|
|
|
|
(4,477)
|
|
|
|
|
(4,267)
|
|
|
Loss from continuing
operations before income taxes
|
|
|
(5,707)
|
|
|
|
|
(6,348)
|
|
|
Income tax provision
from continuing operations
|
|
|
(293)
|
|
|
|
|
(240)
|
|
|
Loss from continuing
operations
|
|
|
(6,000)
|
|
|
|
|
(6,588)
|
|
|
Income (loss) from
discontinued operations, net of tax
|
|
|
4,052
|
|
|
|
|
(7,834)
|
|
|
Net loss
|
$
|
|
(1,948)
|
|
|
$
|
|
(14,422)
|
|
|
Loss per share -
continuing operations:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
|
(0.17)
|
|
|
$
|
|
(0.19)
|
|
|
Diluted
|
$
|
|
(0.17)
|
|
|
$
|
|
(0.19)
|
|
|
Income (loss) per
share - discontinued operations:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
|
0.11
|
|
|
$
|
|
(0.23)
|
|
|
Diluted
|
$
|
|
0.11
|
|
|
$
|
|
(0.23)
|
|
|
Loss per
share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
|
(0.06)
|
|
|
$
|
|
(0.42)
|
|
|
Diluted
|
$
|
|
(0.06)
|
|
|
$
|
|
(0.42)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
34,844
|
|
|
|
|
34,024
|
|
|
Diluted
|
|
|
34,844
|
|
|
|
|
34,024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- more -
|
CALAMP CORP.
|
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
|
(Amounts in thousands)
|
|
(Unaudited)
|
|
|
|
May 31,
|
|
|
February 28,
|
|
|
|
2021
|
|
|
2021
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
|
96,184
|
|
|
$
|
|
94,624
|
|
Accounts
receivable, net
|
|
|
|
64,486
|
|
|
|
|
63,325
|
|
Inventories
|
|
|
|
17,950
|
|
|
|
|
23,663
|
|
Prepaid
expenses and other current assets
|
|
|
|
25,193
|
|
|
|
|
24,804
|
|
Current assets
of discontinued operations
|
|
|
|
-
|
|
|
|
|
7,872
|
|
Total current
assets
|
|
|
|
203,813
|
|
|
|
|
214,288
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
|
39,944
|
|
|
|
|
41,081
|
|
Operating lease
right-of-use assets
|
|
|
|
13,083
|
|
|
|
|
14,273
|
|
Deferred income tax
assets
|
|
|
|
4,757
|
|
|
|
|
4,889
|
|
Goodwill
|
|
|
|
95,058
|
|
|
|
|
94,617
|
|
Other intangible
assets, net
|
|
|
|
36,434
|
|
|
|
|
37,488
|
|
Other
assets
|
|
|
|
27,575
|
|
|
|
|
27,169
|
|
Total
assets
|
|
$
|
|
420,664
|
|
|
$
|
|
433,805
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
Current
portion of long-term debt
|
|
$
|
|
3,782
|
|
|
$
|
|
4,317
|
|
Accounts
payable
|
|
|
|
28,996
|
|
|
|
|
35,767
|
|
Accrued
payroll and employee benefits
|
|
|
|
11,157
|
|
|
|
|
12,761
|
|
Deferred
revenue
|
|
|
|
31,904
|
|
|
|
|
32,924
|
|
Other current
liabilities
|
|
|
|
20,471
|
|
|
|
|
17,380
|
|
Current
liabilities of discontinued operations
|
|
|
|
-
|
|
|
|
|
4,096
|
|
Total current
liabilities
|
|
|
|
96,310
|
|
|
|
|
107,245
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt, net
of current portion
|
|
|
|
183,923
|
|
|
|
|
182,154
|
|
Operating lease
liabilities
|
|
|
|
15,610
|
|
|
|
|
17,061
|
|
Other non-current
liabilities
|
|
|
|
29,094
|
|
|
|
|
30,487
|
|
Non-current
liabilities of discontinued operations
|
|
|
|
-
|
|
|
|
|
1,773
|
|
Total
liabilities
|
|
|
|
324,937
|
|
|
|
|
338,720
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
Common
stock
|
|
|
|
353
|
|
|
|
|
352
|
|
Additional
paid-in capital
|
|
|
|
235,375
|
|
|
|
|
233,692
|
|
Accumulated
deficit
|
|
|
|
(139,922)
|
|
|
|
|
(137,974)
|
|
Accumulated
other comprehensive loss
|
|
|
|
(79)
|
|
|
|
|
(985)
|
|
Total stockholders'
equity
|
|
|
|
95,727
|
|
|
|
|
95,085
|
|
Total liabilities and
stockholders' equity
|
|
$
|
|
420,664
|
|
|
$
|
|
433,805
|
|
|
|
|
|
|
|
|
|
|
|
|
- more -
|
|
|
CALAMP CORP.
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
|
|
(Amounts in thousands)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
May 31,
|
|
|
|
2021
|
|
2020
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
Net loss
|
$
|
(1,948)
|
|
$
|
(14,422)
|
|
|
Less: Net income
(loss) from discontinued operations, net of tax
|
|
4,052
|
|
|
(7,834)
|
|
|
Net loss from
continuing operations
|
|
(6,000)
|
|
|
(6,588)
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
4,230
|
|
|
4,222
|
|
|
Intangible asset
amortization
|
|
1,253
|
|
|
1,176
|
|
|
Stock-based
compensation
|
|
2,472
|
|
|
3,247
|
|
|
Amortization of debt
issuance costs and discount
|
|
2,606
|
|
|
2,753
|
|
|
Noncash operating
lease cost
|
|
754
|
|
|
293
|
|
|
Revenue assigned to
factors
|
|
(1,365)
|
|
|
(1,744)
|
|
|
Deferred tax assets,
net
|
|
163
|
|
|
149
|
|
|
Other
|
|
215
|
|
|
289
|
|
|
Changes in operating
assets and liabilities of continuing operations
|
|
(3,855)
|
|
|
2,385
|
|
|
Net cash provided by
continuing operations
|
|
473
|
|
|
6,182
|
|
|
Net cash used in
discontinued operations
|
|
(395)
|
|
|
(241)
|
|
NET CASH PROVIDED BY
OPERATING ACTIVITIES
|
|
78
|
|
|
5,941
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
Proceeds from
maturities and sale of marketable securities
|
|
-
|
|
|
6,264
|
|
|
Purchases of
marketable securities
|
|
-
|
|
|
(6,264)
|
|
|
Capital
expenditures
|
|
(3,093)
|
|
|
(2,762)
|
|
|
Net cash used in
continuing operations
|
|
(3,093)
|
|
|
(2,762)
|
|
|
Net cash provided by
(used in) discontinued operations
|
|
6,616
|
|
|
(329)
|
|
NET CASH PROVIDED BY
(USED IN) INVESTING ACTIVITIES
|
|
3,523
|
|
|
(3,091)
|
|
|
|
|
|
|
|
|
|
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, net of issuance costs
|
|
-
|
|
|
20,000
|
|
|
Repayment of 2020
Convertible Notes
|
|
-
|
|
|
(27,599)
|
|
|
Payment of issuance
costs on revolving credit facility
|
|
-
|
|
|
(56)
|
|
|
Taxes paid related to
net share settlement of vested equity awards
|
|
(1,061)
|
|
|
(80)
|
|
|
Proceeds from
exercise of stock options and contributions to ESPP
|
|
248
|
|
|
23
|
|
NET CASH USED IN
FINANCING ACTIVITIES
|
|
(813)
|
|
|
(7,712)
|
|
|
|
|
|
|
|
|
|
EFFECT OF EXCHANGE
RATE CHANGES ON CASH AND CASH EQUIVALENTS
|
|
(1,228)
|
|
|
1,529
|
|
Net change in cash
and cash equivalents
|
|
1,560
|
|
|
(3,333)
|
|
Cash and cash
equivalents at beginning of period
|
|
94,624
|
|
|
107,404
|
|
Cash and cash
equivalents at end of period
|
$
|
96,184
|
|
$
|
104,071
|
|
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, Adjusted basis net income
per diluted share, 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
basis (non-GAAP) net income is as follows (in thousands except per
share amounts):
|
Three Months Ended
|
|
|
May 31,
|
|
|
2021
|
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
GAAP basis net
loss
|
$
|
|
(1,948)
|
|
|
$
|
|
(14,422)
|
|
|
|
|
|
|
|
|
|
|
|
Net (income) loss
from discontinued operations, net of tax
|
|
|
(4,052)
|
|
|
$
|
|
7,834
|
|
Intangible asset
amortization
|
|
|
1,253
|
|
|
|
|
1,176
|
|
Stock-based
compensation
|
|
|
2,472
|
|
|
|
|
2,372
|
|
Non-cash interest
expense
|
|
|
2,606
|
|
|
|
|
2,753
|
|
GAAP basis income tax
provision
|
|
|
293
|
|
|
|
|
240
|
|
Litigation and
non-recurring legal expenses
|
|
|
648
|
|
|
|
|
793
|
|
Restructuring
|
|
|
336
|
|
|
|
|
1,873
|
|
Costs incurred in
transition of LoJack North America business to acquiror
(b)
|
|
|
1,233
|
|
|
|
|
-
|
|
Other
|
|
|
305
|
|
|
|
|
481
|
|
Adjusted basis income
before income taxes
|
|
|
3,146
|
|
|
|
|
3,100
|
|
Income tax provision
(non-GAAP basis) (a)
|
|
|
(200)
|
|
|
|
|
(130)
|
|
Adjusted basis net
income
|
$
|
|
2,946
|
|
|
$
|
|
2,970
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted basis net
income per diluted share
|
$
|
|
0.08
|
|
|
$
|
|
0.09
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding on a diluted basis
|
|
|
36,044
|
|
|
|
|
34,146
|
|
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
|
|
May 31,
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
GAAP basis net
loss
|
$
|
(1,948)
|
|
|
$
|
(14,422)
|
|
|
|
|
|
|
|
|
|
Net (income) loss
from discontinued operations, net of tax
|
|
(4,052)
|
|
|
|
7,834
|
|
Investment
income
|
|
(648)
|
|
|
|
(18)
|
|
Interest
expense
|
|
3,849
|
|
|
|
4,077
|
|
Income tax
provision
|
|
293
|
|
|
|
240
|
|
Depreciation and
amortization
|
|
5,483
|
|
|
|
5,398
|
|
Stock-based
compensation
|
|
2,472
|
|
|
|
2,372
|
|
Litigation and
non-recurring legal expenses
|
|
648
|
|
|
|
793
|
|
Restructuring
|
|
336
|
|
|
|
1,873
|
|
Costs incurred in
transition of LoJack North America business to acquiror
(b)
|
|
1,233
|
|
|
|
-
|
|
Other
|
|
719
|
|
|
|
144
|
|
Adjusted
EBITDA
|
$
|
8,385
|
|
|
$
|
8,291
|
|
|
|
|
|
|
|
|
|
Other favorable
(unfavorable) impacts to Adjusted basis net income and Adjusted
EBITDA (c)
|
|
|
|
|
|
|
|
Deferred revenue
purchase accounting adjustment
|
$
|
(457)
|
|
|
$
|
(941)
|
|
Inventory excess and
obsolescence
|
|
-
|
|
|
|
(596)
|
|
Total other favorable
(unfavorable) impacts to Adjusted EBITDA
|
$
|
(457)
|
|
|
$
|
(1,537)
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
79,674
|
|
|
$
|
73,731
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
margin
|
|
11
|
%
|
|
|
11
|
%
|
|
|
(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)
|
Costs incurred in
transition of business to acquiror are attributable to the wind
down and transfer of the LoJack North America business to
Spireon.
|
(c)
|
Other favorable
(unfavorable) impacts to Adjusted basis net income 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
adjustments resulting from business acquisitions which reduces
revenue and gross profit and inventories related to the automotive
vehicle finance business that are obsolete or in excess of demand
forecast.
|
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SOURCE CalAmp