CANTON, Mass., Feb. 25, 2016 /PRNewswire/ -- LoJack Corporation
(NASDAQ GS: LOJN), a provider of vehicle theft recovery systems and
fleet and equipment telematics solutions, today reported financial
results for the quarter and year ended December 31, 2015.
Revenue for the quarter ended December
31, 2015 was $34.5 million,
compared with $36.4 million in the
fourth quarter of the prior year. Net income attributable to LoJack
in the fourth quarter was $2.2
million, or $0.11 per diluted
share, compared with a net loss attributable to LoJack of
$0.9 million, or $0.05 per diluted share, in the fourth quarter of
2014.
For the year ended December 31,
2015, revenue was $129.6
million, compared with $133.6
million in the prior year. The net income attributable to
LoJack in 2015 was $3.2 million, or
$0.17 per diluted share, compared
with a net loss attributable to LoJack of $17.9 million, or $0.99 per diluted share, in 2014.
Consolidated gross profit for the fourth quarter of 2015 was
$20.2 million, or 58.7% of revenue,
compared with $18.0 million, or 49.4%
of revenue, for the same period in 2014. Consolidated gross profit
in 2015 includes a credit in cost of goods sold of $1.6 million related to cash proceeds that the
Company received from an insurance claim. The $1.6 million represents a partial payment on the
Company's claim, which is still being reviewed by the insurance
carrier, for the full $4.9 million of
coverage the Company is seeking under the relevant policy.
Consolidated non-GAAP gross profit, which excludes charges related
to the Company's quality assurance program, a partial payment
received on a related insurance claim, and restructuring charges,
was $18.6 million, or 54.0% of
revenue, for the fourth quarter of 2015, compared with $19.3 million, or 53.0% in the 2014 period. A
reconciliation of this non-GAAP financial measure to the most
directly comparable GAAP financial measure is set forth in Table 2
of this press release.
Consolidated full-year 2015 gross profit was $70.4 million, or 54.4% of revenue, compared with
$60.1 million, or 45.0% of revenue
for the prior year. Consolidated non-GAAP gross profit, which
excludes charges related to the Company's quality assurance
program, a partial payment received on a related insurance claim,
and restructuring charges, was $70.0
million, or 54.0% of revenue, for the year ended
December 31, 2015, versus
$70.2 million, or 52.5% of revenue,
in 2014.
Adjusted EBITDA for the fourth quarter of 2015 was $3.1 million, compared with $3.4 million for the comparable period in 2014.
For the year ended December 31, 2015,
Adjusted EBITDA was $7.7 million,
compared with $1.3 million in 2014. A
reconciliation of this non-GAAP financial measure to the most
directly comparable GAAP financial measure is set forth in Table 1
of this press release.
Cash and cash equivalents at December 31,
2015 totaled $21.6 million,
representing an increase of $7.0
million in 2015, excluding the $3.0
million reduction in bank debt.
Other Matters
On February 1, 2016, CalAmp Corp.
(NASDAQ: CAMP) and LoJack announced that they had entered into a
definitive merger agreement under which CalAmp would acquire all of
the outstanding shares of common stock of LoJack for $6.45 per share in an all cash transaction. The
transaction is expected to close during CalAmp's fiscal 2017 first
quarter ending May 31, 2016, subject
to customary closing conditions.
In light of the pending acquisition by CalAmp, LoJack will not
be hosting a conference call in connection with its fourth-quarter
results.
About LoJack Corporation
LoJack Corporation has helped millions of people protect their
vehicles in the event of theft over the past 25 years, and today
provides safety, security and protection for an ever-growing range
of valuable assets and people. Leveraging its core strengths,
including its well-known brand, direct integration with law
enforcement and dealer distribution network, LoJack Corporation is
expanding into new areas across the continuum from theft recovery
to fleet and equipment management services. The Company is focusing
on creating a new level of value for its dealers, customers,
international licensees, and investors by delivering innovative
offerings, in expanding geographies. For more information, visit
www.lojack.com, www.autotheftblog.com, www.youtube.com/lojack,
www.twitter.com/LoJackCorp or www.Facebook.com/LoJackCorp.
Use of Non-GAAP Financial Measures
In addition to financial measures prepared in accordance with
generally accepted accounting principles (GAAP), this press release
also contains certain non-GAAP financial measures including
Adjusted EBITDA and non-GAAP gross profit (and the corresponding
gross margin percentages). LoJack management believes that
the inclusion of these non-GAAP financial measures in this press
release helps investors to gain a meaningful understanding of
changes in the Company's core operating results, and can also help
investors who wish to make comparisons between LoJack and other
companies on both a GAAP and a non-GAAP basis. Management uses
these non-GAAP measures, in addition to GAAP financial measures, as
the basis for measuring its core operating performance and
comparing such performance to that of prior periods and to the
performance of its competitors. These measures are also used by
management to assist with their financial and operating decision
making.
The non-GAAP financial measures included in this press release
are not meant to be considered superior to or a substitute for the
comparable measurement that is prepared in accordance with GAAP. In
addition, the non-GAAP financial measures included in this press
release may be different from, and therefore may not be comparable
to, similar measures used by other companies. Reconciliations
of the non-GAAP financial measures used in this press release to
the most directly comparable GAAP financial measures are set forth
in the accompanying tables to this press release.
Safe Harbor Regarding Forward-Looking Statements
From time to time, information provided by the Company or
statements made by its employees may contain "forward-looking"
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 and other securities laws, which involve risks
and uncertainties. You can identify these statements by use
of the words "assumes," "believes," "estimates," "expects," "will,"
"intends," "plans," "projects" and similar expressions that do not
relate to historical matters. Any statements in this
news release that are not statements of historical fact are
forward-looking statements, including, but not limited to,
statements concerning the Company's future financial
performance and financial condition and the pending transaction
with CalAmp. Such forward-looking statements are based on a
number of assumptions and involve a number of risks and
uncertainties, and accordingly, actual results could differ
materially. Factors that may cause such differences include,
but are not limited to: (1) the ability of the parties to
satisfy the conditions to closing set forth in the merger
agreement; (2) disruptions during the pendency of the transaction
to the Company's business and relationships with employees,
licensees, other business partners or governmental entities; (3)
the continued and future acceptance of the Company's products and
services, including the Company's Pre-Install Program and inventory
management, fleet management and telematics solutions; (4) the
Company's ability to obtain financing from lenders and to satisfy
or obtain waivers for covenant requirements under its credit
facility; (5) the outcome of ongoing litigation involving the
Company; (6) the rate of growth in the industries of the Company's
customers; (7) the presence of competitors with greater technical,
marketing, and financial resources; (8) the Company's customers'
ability to access the credit markets, including changes in interest
rates; (9) the Company's ability to promptly and effectively
respond to technological change to meet evolving customer needs;
(10) the Company's ability to successfully expand its operations,
including through the introduction of new products and services;
(11) changes in general economic or geopolitical conditions; (12)
conditions in the automotive retail market and the Company's
relationships with dealers, licensees, partners, agents and local
law enforcement; (13) delays or other changes in the timing of
purchases by the Company's customers; (14) financial and
reputational risks related to product quality and liability issues;
(15) the Company's ability to re-enter the Brazilian market in a
timely manner and/or on favorable terms; and (16) trade tensions
and governmental regulations and restrictions in Argentina, Brazil and the Company's other international
markets. For a further discussion of these and other
significant factors to consider in connection with forward-looking
statements concerning the Company, reference is made to the
Company's Annual Report on Form 10-K for the year ended
December 31, 2014 and the Company's
other filings with the Securities and Exchange Commission.
Readers should not place undue reliance on any forward-looking
statements, which only speak as of the date made. Except as
required by law, the Company undertakes no obligation to release
publicly the result of any revision to the forward-looking
statements that may be made to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated
events.
Additional Information
CalAmp has filed a Tender Offer Statement on Schedule TO related
to the proposed transaction with LoJack with the SEC and may file
amendments thereto, and LoJack has filed a
Solicitation/Recommendation Statement on Schedule 14D-9 with
respect to the tender offer. CalAmp and LoJack may also file other
documents with the SEC regarding the transaction. INVESTORS AND
SECURITY HOLDERS ARE URGED TO READ THE SCHEDULE TO (INCLUDING THE
OFFER TO PURCHASE, THE RELATED LETTER OF TRANSMITTAL AND OTHER
OFFER DOCUMENTS), THE SOLICITATION/RECOMMENDATION STATEMENT ON
SCHEDULE 14D-9 AND THE OTHER RELEVANT MATERIALS WITH RESPECT TO THE
TRANSACTION CAREFULLY AND IN THEIR ENTIRETY BEFORE MAKING ANY
INVESTMENT DECISION WITH RESPECT TO THE TRANSACTION, BECAUSE THEY
CONTAIN IMPORTANT INFORMATION.
The Tender Offer Statement on Schedule TO and the
Solicitation/Recommendation Statement on Schedule 14D-9 will be
sent free of charge to LoJack's shareholders. Such materials (and
all other offer documents filed with the SEC) will be available at
no charge on the SEC's Web site: www.sec.gov or by directing such
requests to the Information Agent for the tender offer named in the
Tender Offer Statement. In addition, copies of LoJack's filings
with the SEC may also be obtained free of charge at the "Investor
Relations" section of LoJack's website at
http://investors.lojack.com/financials.cfm.
LoJack Corporation
and Subsidiaries
Condensed
Consolidated Statements of Operations
(in thousands, except
per share amounts)
|
|
|
Three Months
Ended
December 31,
|
|
Year
Ended
December 31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(unaudited)
|
|
(unaudited)
|
Revenue
|
$
|
34,504
|
|
|
$
|
36,352
|
|
|
$
|
129,552
|
|
|
$
|
133,568
|
|
Cost of goods
sold
|
14,264
|
|
|
18,401
|
|
|
59,106
|
|
|
73,446
|
|
Gross
profit
|
20,240
|
|
|
17,951
|
|
|
70,446
|
|
|
60,122
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
Product
development
|
1,256
|
|
|
1,221
|
|
|
5,072
|
|
|
5,730
|
|
Sales and
marketing
|
7,116
|
|
|
7,491
|
|
|
28,843
|
|
|
32,663
|
|
General and
administrative
|
8,189
|
|
|
8,693
|
|
|
28,742
|
|
|
35,155
|
|
Depreciation and
amortization
|
875
|
|
|
811
|
|
|
4,077
|
|
|
3,419
|
|
Total
|
17,436
|
|
|
18,216
|
|
|
66,734
|
|
|
76,967
|
|
Operating income
(loss)
|
2,804
|
|
|
(265)
|
|
|
3,712
|
|
|
(16,845)
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
income
|
5
|
|
|
3
|
|
|
17
|
|
|
8
|
|
Interest
expense
|
(366)
|
|
|
(119)
|
|
|
(884)
|
|
|
(816)
|
|
Other, net
|
179
|
|
|
(68)
|
|
|
1,713
|
|
|
(124)
|
|
Total
|
(182)
|
|
|
(184)
|
|
|
846
|
|
|
(932)
|
|
Income (loss) before
provision for income taxes and net income (loss) attributable to
the noncontrolling interest
|
2,622
|
|
|
(449)
|
|
|
4,558
|
|
|
(17,777)
|
|
Provision for income
taxes
|
424
|
|
|
356
|
|
|
1,281
|
|
|
176
|
|
Net income
(loss)
|
2,198
|
|
|
(805)
|
|
|
3,277
|
|
|
(17,953)
|
|
Less: Net income
(loss) attributable to the noncontrolling interest
|
21
|
|
|
49
|
|
|
80
|
|
|
(29)
|
|
Net income (loss)
attributable to LoJack Corporation
|
$
|
2,177
|
|
|
$
|
(854)
|
|
|
$
|
3,197
|
|
|
$
|
(17,924)
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
diluted share attributable to LoJack Corporation
|
$
|
0.11
|
|
|
$
|
(0.05)
|
|
|
$
|
0.17
|
|
|
$
|
(0.99)
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted common shares outstanding
|
18,991
|
|
|
18,158
|
|
|
18,676
|
|
|
18,017
|
|
LoJack Corporation
and Subsidiaries
Condensed
Consolidated Balance Sheets
(in
thousands)
|
|
|
December 31,
2015
|
|
December 31,
2014
|
|
(unaudited)
|
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$
|
21,628
|
|
|
$
|
17,588
|
|
Restricted
cash
|
490
|
|
|
—
|
|
Accounts
receivable, net
|
24,528
|
|
|
23,963
|
|
Inventories
|
7,290
|
|
|
8,323
|
|
Other current
assets
|
2,973
|
|
|
4,276
|
|
Total current
assets
|
56,909
|
|
|
54,150
|
|
Property, plant &
equipment, net
|
15,372
|
|
|
16,791
|
|
Other non-current
assets
|
5,724
|
|
|
5,319
|
|
Total
assets
|
$
|
78,005
|
|
|
$
|
76,260
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current liabilities,
excluding deferred revenue
|
$
|
23,326
|
|
|
$
|
24,729
|
|
Debt
|
86
|
|
|
3,500
|
|
Current portion of
deferred revenue
|
6,516
|
|
|
7,535
|
|
Total current
liabilities
|
29,928
|
|
|
35,764
|
|
Long-term
debt
|
7,478
|
|
|
6,978
|
|
Deferred
revenue
|
9,815
|
|
|
9,609
|
|
Other long-term
liabilities
|
2,922
|
|
|
3,464
|
|
Total
liabilities
|
50,143
|
|
|
55,815
|
|
Stockholders'
equity
|
27,862
|
|
|
20,445
|
|
Total liabilities
and stockholders' equity
|
$
|
78,005
|
|
|
$
|
76,260
|
|
Table 1 – Adjusted
EBITDA Computation
GAAP to Pro Forma
Non-GAAP Reconciliation
(unaudited, in
thousands)
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss), as
reported
|
|
$
|
2,198
|
|
|
$
|
(805)
|
|
|
$
|
3,277
|
|
|
$
|
(17,953)
|
|
|
Adjusted
for:
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
366
|
|
|
119
|
|
|
884
|
|
|
816
|
|
|
|
Provision for income
taxes
|
|
424
|
|
|
356
|
|
|
1,281
|
|
|
176
|
|
|
|
Depreciation and
amortization
|
|
1,112
|
|
|
906
|
|
|
4,556
|
|
|
3,713
|
|
EBITDA
|
|
4,100
|
|
|
576
|
|
|
9,998
|
|
|
(13,248)
|
|
|
|
Stock compensation
expense
|
|
356
|
|
|
389
|
|
|
1,494
|
|
|
1,682
|
|
|
|
Licensee agreement
modification
|
|
—
|
|
|
—
|
|
|
(2,000)
|
|
|
—
|
|
|
|
Brazil legal
settlement
|
|
—
|
|
|
—
|
|
|
(2,000)
|
|
|
—
|
|
|
|
Quality assurance
program
|
|
—
|
|
|
—
|
|
|
1,076
|
|
|
8,040
|
|
|
|
Insurance
proceeds
|
|
(1,600)
|
|
|
—
|
|
|
(1,600)
|
|
|
—
|
|
|
|
ICMS Tax
Settlement
|
|
—
|
|
|
—
|
|
|
—
|
|
|
707
|
|
|
|
Restructuring
costs
|
|
281
|
|
|
2,396
|
|
|
767
|
|
|
4,125
|
|
Adjusted
EBITDA
|
|
$
|
3,137
|
|
|
$
|
3,361
|
|
|
$
|
7,735
|
|
|
$
|
1,306
|
|
Table 2 – Non-GAAP
Gross Margin Percentage Calculation
GAAP to Non-GAAP
Gross Margin Percentage Reconciliation
(unaudited, in
thousands)
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
$
|
|
% of
Revenue
|
|
$
|
|
% of
Revenue
|
|
$
|
|
% of
Revenue
|
|
$
|
|
% of
Revenue
|
Gross profit, as
reported
|
|
20,240
|
|
|
58.7
|
%
|
|
17,951
|
|
|
49.4
|
%
|
|
70,446
|
|
|
54.4
|
%
|
|
60,122
|
|
|
45.0
|
%
|
|
Adjusted
for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
costs
|
|
—
|
|
|
—
|
%
|
|
1,300
|
|
|
3.6
|
%
|
|
70
|
|
|
0.1
|
%
|
|
2,000
|
|
|
1.5
|
%
|
|
|
Quality assurance
program
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
1,076
|
|
|
0.8
|
%
|
|
8,040
|
|
|
6.0
|
%
|
|
|
Insurance
proceeds
|
|
(1,600)
|
|
|
(4.6)
|
%
|
|
—
|
|
|
—
|
%
|
|
(1,600)
|
|
|
(1.2)
|
%
|
|
—
|
|
|
—
|
%
|
Non-GAAP gross
profit
|
|
18,640
|
|
|
54.0
|
%
|
|
19,251
|
|
|
53.0
|
%
|
|
69,992
|
|
|
54.0
|
%
|
|
70,162
|
|
|
52.5
|
%
|
CONTACT:
|
|
|
Ken Dumas
|
|
Scott
Solomon
|
Senior Vice President
and CFO
|
|
Senior Vice
President
|
LoJack
Corporation
|
|
Sharon Merrill
Associates, Inc.
|
(781)
302-4200
|
|
(617)
542-5300
|
|
|
LOJN@investorrelations.com
|
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SOURCE LoJack Corporation