Form 8-K CalAmp Corp. For: Oct 01
UNITED STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO
SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): | October 1, 2015 |
Exact Name of
Registrant as Specified in Its Charter: |
CALAMP CORP. |
DELAWARE | 0-12182 | 95-3647070 | ||
State or Other Jurisdiction of | Commission | I.R.S. Employer | ||
Incorporation or Organization | File Number | Identification No. |
Address of Principal Executive Offices: | 1401 N. Rice Avenue | |
Oxnard, CA 93030 | ||
Registrant's Telephone Number, Including | ||
Area Code: | (805) 987-9000 | |
Former Name or Former Address, | ||
if Changed Since Last Report: | Not applicable |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
[ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14.a-12) | |
[ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
[ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition
The information set forth in Exhibit 99.1 of this Current Report is being furnished and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information set forth in Exhibit 99.1 of this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.
On October 1, 2015, CalAmp Corp. issued a press release announcing its financial results for the second quarter ended August 31, 2015. A copy of the press release is attached as Exhibit 99.1.
A conference call with simultaneous webcast to discuss the financial results for the second quarter ended August 31, 2015 will be held today, October 1, 2015 at 4:30 p.m. Eastern Time. After the live webcast of the conference call, an audio replay will remain available until the next quarterly conference call in the Investor Relations section of CalAmp's website at www.calamp.com.
Item 9.01. Financial Statements and Exhibits
(c) Exhibits
99.1 | Press release of the Registrant dated October 1, 2015 announcing results of operations for the second quarter ended August 31, 2015. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be filed on its behalf by the undersigned hereunto duly authorized.
CALAMP CORP. | |||
October 1, 2015 | By: /s/ Richard Vitelle | ||
Date | Richard Vitelle | ||
Executive Vice President and CFO | |||
(Principal Financial Officer) |
Exhibit 99.1 | |
NEWS
BULLETIN |
FOR IMMEDIATE RELEASE
CalAmp Reports Record Fiscal 2016 Second Quarter Financial Results
OXNARD, CA, October 1, 2015 -- CalAmp (NASDAQ: CAMP), a leading provider of wireless products, services and solutions, today reported results for its second quarter ended August 31, 2015. Highlights include:
● |
Consolidated revenue up 18% year-over-year to a record $69.8 million |
● |
Wireless Datacom revenue up 23% year-over-year to a record $61.8 million |
● |
GAAP net income up 7% year-over-year with diluted GAAP EPS of $0.10 |
● |
Adjusted Basis (non-GAAP) net income up 30% with diluted non-GAAP EPS of $0.27 |
● |
Adjusted EBITDA margin of 16.9% compared to 14.1% in the second quarter last year |
● |
Operating cash flow of $12.4 million compared to $8.7 million in the second quarter last year |
● |
Total cash and marketable securities balance at August 31, 2015 of $218 million |
Commenting on the second quarter fiscal 2016 results, Michael Burdiek, CalAmp's President and Chief Executive Officer, said, We had an outstanding second quarter, posting record revenues of $69.8 million and a 30% year-over-year increase in non-GAAP net income. Our continued operational execution resulted in Adjusted EBITDA of $11.8 million and operating cash flow of $12.4 million. During the quarter we experienced robust demand for our Mobile Resource Management (MRM) products from fleet management and asset tracking customers, along with solid growth in our Wireless Networks business. Our Satellite segment revenues were in-line with expectations while a favorable product mix drove higher gross margins and strong profitability. Our momentum exiting the quarter, coupled with an expanding pipeline of opportunities, is providing CalAmp with a strong tailwind heading into the second half of fiscal 2016.
Fiscal 2016 Second
Quarter Results
Total revenue
for the fiscal 2016 second quarter was a record $69.8 million compared to $59.2
million for the second quarter of fiscal 2015. Wireless Datacom revenue
increased to $61.8 million from $50.2 million in the same period last year,
while Satellite revenue was $8.0 million in the second quarter compared to $9.0
million in the comparable quarter last year.
Consolidated gross profit for the fiscal 2016 second quarter was $25.3 million, an increase of $4.8 million over the same quarter last year, primarily attributable to higher Wireless Datacom revenue. Consolidated gross margin was 36.2% in the fiscal 2016 second quarter, compared to 34.6% in the second quarter last year.
CalAmp Reports Fiscal
2016 Second Quarter Results
October 1, 2015
Page 2 of 7
GAAP net income for the fiscal 2016 second quarter was $3.5 million, or $0.10 per diluted share, compared to net income of $3.3 million, or $0.09 per diluted share, in the second quarter of last year. Although the Companys GAAP-basis effective tax rate of 37.0% in the latest quarter approximates the combined US federal and state statutory tax rate, the Companys pretax income is still largely sheltered from taxation by net operating loss and research and development tax credit carryforwards, and is expected to remain so for the next several years.
Non-GAAP net income for the fiscal 2016 second quarter was $9.8 million, or $0.27 per diluted share, compared to non-GAAP earnings of $7.5 million, or $0.21 per diluted share, for the second quarter last year. Non-GAAP net income excludes the impact of intangibles amortization expense, stock-based compensation expense and non-cash interest expense in the form of debt discount amortization, and includes an income tax provision for cash taxes paid or payable for the period. A reconciliation of the GAAP-basis pretax income to the non-GAAP net income and earnings per diluted share is provided in the table at the end of this press release.
Liquidity
As of August 31, 2015,
the Company had total cash and marketable securities of $217.7 million and total
debt outstanding of $136.7 million. Net cash provided by operating activities
was $12.4 million during the second quarter and $28.8 million for the first six
months of fiscal 2016, up from $16.1 million for the first six months of fiscal
2015. The unused borrowing capacity on CalAmps bank revolver at quarter-end was
$15 million.
Business Outlook
Commenting on the Company's
business outlook, Mr. Burdiek said, Looking at our fiscal 2016 third quarter,
we expect to achieve consolidated revenue in the range of $71 to $76 million. We
expect our Wireless Datacom and Satellite segment revenues in the third quarter
to be solidly higher on both a sequential quarter and year-over-year basis. At
the bottom line, we expect third quarter GAAP-basis net income in the range of
$0.08 to $0.12 per diluted share and non-GAAP net income in the range of $0.26
to $0.30 per diluted share.
Mr. Burdiek continued, For our fiscal 2016 full-year outlook, we continue to expect consolidated revenues to gain momentum as the year progresses. Full-year revenues are expected to be in the range of $281 to $289 million, driven by continued growth in our Wireless Datacom segment and a much stronger second half in our Satellite segment. Our increasing scale, impressive roster of global enterprise customers and ongoing strategic investments position us well to sustain our momentum into fiscal 2017 and beyond.
Conference Call and
Webcast
A conference call and
simultaneous webcast to discuss the fiscal 2016 second quarter financial results
and business outlook will be held today at 4:30 p.m. Eastern / 1:30 p.m.
Pacific. CalAmp's President and CEO Michael Burdiek and CFO Rick Vitelle will
host the conference call. 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.
CalAmp Reports Fiscal
2016 Second Quarter Results
October 1, 2015
Page 3 of 7
The conference call can also be accessed by dialing 877-407-0784 (+1 201-689-8560 for international callers) and using the Conference ID# 13617853. Following the call, an audio replay will also be available by calling 877-870-5176 or +1 858-384-5517 and entering the Conference ID# 13617853. The audio replay will be available through October 8, 2015.
About CalAmp
CalAmp (NASDAQ: CAMP) is a
proven leader in providing wireless communications solutions to a broad array of
vertical market applications and customers. CalAmps extensive portfolio of
intelligent communications devices, robust and scalable cloud service platform,
and targeted software applications streamline otherwise complex
Machine-to-Machine (M2M) deployments. These solutions enable customers to
optimize their operations by collecting, monitoring and efficiently reporting
business critical data and desired intelligence from high-value mobile and
remote assets. For more information, please visit www.calamp.com.
Forward-Looking
Statements
Statements in this
press release that are not historical in nature are forward-looking statements
that, within the meaning of the federal securities laws including the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995,
involve known and unknown risks and uncertainties. Words such as may, will,
expect, intend, plan, believe, seek, could, estimate, judgment,
targeting, should, anticipate, goal and variations of these words and
similar expressions, are intended to identify forward-looking statements.
Readers are cautioned that actual results could differ materially from those
implied by such forward-looking statements due to a variety of factors,
including global economic conditions and uncertainties in the geopolitical
environment, product demand, competitive pressures and pricing declines in our
Wireless Datacom and Satellite segments, fluctuations in product demand from a
key OEM customer in the heavy equipment industry, the timing and acceptance of
customer approvals of new product designs, intellectual property infringement
claims, interruption or failure of our Internet-based systems used to wirelessly
configure and communicate with the tracking and monitoring devices that we sell,
changes in wireless transmission standards and technologies including 3G and 4G
standards, dependence on third-party manufacturers and component suppliers in
foreign countries, and other risks or uncertainties that are described in our
Annual Report on Form 10-K filed on April 21, 2015 with the Securities and
Exchange Commission. Although we believe the expectations reflected in such
forward-looking statements are based upon reasonable assumptions, we can give no
assurances that our expectations will be attained. We undertake no obligation to
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
AT CALAMP: | AT ADDO COMMUNICATIONS: | |
Garo Sarkissian | Lasse Glassen | |
SVP, Corporate Development | (424) 238-6249 | |
(805) 987-9000 | [email protected] |
CalAmp Reports Fiscal
2016 Second Quarter Results
October 1, 2015
Page 4 of 7
CAL AMP
CORP.
CONSOLIDATED INCOME
STATEMENTS
(Unaudited, in thousands except per share amounts)
Three Months Ended | Six Months Ended | |||||||||||||||
August 31, | August 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Revenues | $ | 69,808 | $ | 59,210 | $ | 135,237 | $ | 118,191 | ||||||||
Cost of revenues | 44,505 | 38,714 | 86,408 | 77,476 | ||||||||||||
Gross profit | 25,303 | 20,496 | 48,829 | 40,715 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 4,995 | 5,016 | 9,560 | 10,134 | ||||||||||||
Selling | 5,847 | 4,921 | 11,345 | 10,098 | ||||||||||||
General and administrative | 4,908 | 3,892 | 9,683 | 7,529 | ||||||||||||
Intangible asset amortization | 1,655 | 1,634 | 3,299 | 3,317 | ||||||||||||
17,405 | 15,463 | 33,887 | 31,078 | |||||||||||||
Operating income | 7,898 | 5,033 | 14,942 | 9,637 | ||||||||||||
Non-operating income (expense): | ||||||||||||||||
Interest income (expense), net | (2,323 | ) | 5 | (2,943 | ) | (96 | ) | |||||||||
Other income (expense) | (18 | ) | (9 | ) | (29 | ) | 5 | |||||||||
(2,341 | ) | (4 | ) | (2,972 | ) | (91 | ) | |||||||||
Income before income taxes | 5,557 | 5,029 | 11,970 | 9,546 | ||||||||||||
Income tax provision | (2,058 | ) | (1,751 | ) | (4,412 | ) | (3,575 | ) | ||||||||
Net income | $ | 3,499 | $ | 3,278 | $ | 7,558 | $ | 5,971 | ||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.10 | $ | 0.09 | $ | 0.21 | $ | 0.17 | ||||||||
Diluted | $ | 0.10 | $ | 0.09 | $ | 0.21 | $ | 0.16 | ||||||||
Shares used in computing earnings per share: | ||||||||||||||||
Basic | 36,135 | 35,732 | 36,049 | 35,652 | ||||||||||||
Diluted | 36,716 | 36,472 | 36,691 | 36,498 |
BUSINESS SEGMENT
INFORMATION
(Unaudited, in thousands)
Three Months Ended | Six Months Ended | |||||||||||||||
August 31, | August 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Revenues | ||||||||||||||||
Wireless DataCom | $ | 61,819 | $ | 50,204 | $ | 119,645 | $ | 98,051 | ||||||||
Satellite | 7,989 | 9,006 | 15,592 | 20,140 | ||||||||||||
Total revenues | $ | 69,808 | $ | 59,210 | $ | 135,237 | $ | 118,191 | ||||||||
Gross profit | ||||||||||||||||
Wireless DataCom | $ | 23,098 | $ | 18,047 | $ | 44,686 | $ | 35,362 | ||||||||
Satellite | 2,205 | 2,449 | 4,143 | 5,353 | ||||||||||||
Total gross profit | $ | 25,303 | $ | 20,496 | $ | 48,829 | $ | 40,715 | ||||||||
Operating income | ||||||||||||||||
Wireless DataCom | $ | 7,917 | $ | 4,657 | $ | 15,215 | $ | 8,325 | ||||||||
Satellite | 1,169 | 1,300 | 1,981 | 3,156 | ||||||||||||
Corporate expenses | (1,188 | ) | (924 | ) | (2,254 | ) | (1,844 | ) | ||||||||
Total operating income | $ | 7,898 | $ | 5,033 | $ | 14,942 | $ | 9,637 |
- more -
CalAmp Reports Fiscal
2016 Second Quarter Results
October 1, 2015
Page 5 of 7
CAL AMP
CORP.
CONSOLIDATED BALANCE
SHEETS
(In
thousands)
August 31, | February 28, | |||||||
2015 | 2015 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 100,098 | $ | 34,184 | ||||
Short-term marketable securities | 104,984 | 10,177 | ||||||
Accounts receivable, net | 45,802 | 47,917 | ||||||
Inventories | 22,572 | 18,666 | ||||||
Deferred income tax assets | 11,489 | 11,367 | ||||||
Prepaid expenses and other current assets | 4,011 | 5,110 | ||||||
Total current assets | 288,956 | 127,421 | ||||||
Long-term marketable securities | 12,569 | - | ||||||
Property, equipment and improvements, net | 11,349 | 10,525 | ||||||
Deferred income tax assets, less current portion | 18,740 | 23,455 | ||||||
Goodwill | 16,508 | 15,483 | ||||||
Other intangible assets, net | 20,297 | 22,596 | ||||||
Other assets | 3,969 | 3,137 | ||||||
$ | 372,388 | $ | 202,617 | |||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Current portion of long-term debt | $ | 97 | $ | 688 | ||||
Accounts payable | 33,499 | 24,012 | ||||||
Accrued payroll and employee benefits | 4,884 | 5,522 | ||||||
Deferred revenue | 9,099 | 10,748 | ||||||
Other current liabilities | 6,139 | 6,035 | ||||||
Total current liabilities | 53,718 | 47,005 | ||||||
Long-term debt | 136,557 | - | ||||||
Other non-current liabilities | 5,781 | 4,227 | ||||||
Stockholders' equity: | ||||||||
Common stock | 366 | 362 | ||||||
Additional paid-in capital | 225,266 | 207,881 | ||||||
Accumulated deficit | (49,235 | ) | (56,793 | ) | ||||
Accumulated other comprehensive loss | (65 | ) | (65 | ) | ||||
Total stockholders' equity | 176,332 | 151,385 | ||||||
$ | 372,388 | $ | 202,617 |
- more -
CalAmp Reports Fiscal
2016 Second Quarter Results
October 1, 2015
Page 6 of 7
CAL AMP
CORP.
CONSOLIDATED CASH
FLOW STATEMENTS
(Unaudited - In thousands)
Six Months Ended | ||||||||
August 31, | ||||||||
2015 | 2014 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 7,558 | $ | 5,971 | ||||
Depreciation and amortization | 4,974 | 4,640 | ||||||
Stock-based compensation expense | 2,609 | 1,756 | ||||||
Amortization of debt discount and issuance costs | 2,019 | 280 | ||||||
Deferred tax assets, net | 4,106 | 3,384 | ||||||
Other | 7 | 42 | ||||||
Changes in operating working capital | 7,489 | (8 | ) | |||||
Net cash provided by operating activities | 28,762 | 16,065 | ||||||
Cash flows from investing activities: | ||||||||
Purchases of marketable securities, net of redemptions | (107,376 | ) | (4,572 | ) | ||||
Capital expenditures | (2,576 | ) | (3,367 | ) | ||||
Acquisition of Crashboxx | (1,500 | ) | - | |||||
Net cash used in investing activities | (111,452 | ) | (7,939 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of convertible notes | 172,500 | - | ||||||
Payments of debt issuance costs | (5,291 | ) | - | |||||
Purchase of convertible note hedges | (31,343 | ) | - | |||||
Proceeds from issuance of warrants | 15,991 | - | ||||||
Payment of acquisition-related note and contingent consideration | (1,262 | ) | (1,591 | ) | ||||
Taxes paid related to net share settlement of vested equity awards | (2,478 | ) | (3,013 | ) | ||||
Proceeds from exercise of stock options | 487 | 541 | ||||||
Net cash provided (used) by financing activities | 148,604 | (4,063 | ) | |||||
Net change in cash and cash equivalents | 65,914 | 4,063 | ||||||
Cash and cash equivalents at beginning of period | 34,184 | 19,233 | ||||||
Cash and cash equivalents at end of period | $ | 100,098 | $ | 23,296 |
- more -
CalAmp Reports Fiscal
2016 Second Quarter Results
October 1, 2015
Page 7 of 7
CAL AMP
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 Interest, Taxes, Depreciation, Amortization and Stock-Based Compensation), 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 the GAAP Basis Pretax Income 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, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
GAAP basis pretax income | $ | 5,557 | $ | 5,029 | $ | 11,970 | $ | 9,546 | ||||||||
Amortization of intangible assets | 1,655 | 1,634 | 3,299 | 3,317 | ||||||||||||
Stock-based compensation expense | 1,389 | 936 | 2,609 | 1,756 | ||||||||||||
Non-cash interest expense from amortization of debt discount | 1,353 | - | 1,736 | - | ||||||||||||
Pretax income (non-GAAP basis) | 9,954 | 7,599 | 19,614 | 14,619 | ||||||||||||
Income tax provision (non-GAAP basis) (a) | (116 | ) | (65 | ) | (287 | ) | (190 | ) | ||||||||
Adjusted Basis net income | $ | 9,838 | $ | 7,534 | $ | 19,327 | $ | 14,429 | ||||||||
Adjusted Basis net income per diluted share | $ | 0.27 | $ | 0.21 | $ | 0.53 | $ | 0.40 | ||||||||
Weighted average common shares outstanding | ||||||||||||||||
on diluted basis | 36,716 | 36,472 | 36,691 | 36,498 |
(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 loss and tax credit carryforwards. |
The reconciliation of pretax income, the most directly comparable GAAP financial measure, 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, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
GAAP basis pretax income | $ | 5,557 | $ | 5,029 | $ | 11,970 | $ | 9,546 | ||||||||
Interest expense (income), net | 2,323 | (5 | ) | 2,943 | 96 | |||||||||||
Depreciation expense | 883 | 748 | 1,675 | 1,323 | ||||||||||||
Amortization of intangible assets | 1,655 | 1,634 | 3,299 | 3,317 | ||||||||||||
Stock-based compensation expense | 1,389 | 936 | 2,609 | 1,756 | ||||||||||||
Adjusted EBITDA | $ | 11,807 | $ | 8,342 | $ | 22,496 | $ | 16,038 | ||||||||
Revenue | $ | 69,808 | $ | 59,210 | $ | 135,237 | $ | 118,191 | ||||||||
EBITDA Margin | 16.9 | % | 14.1 | % | 16.6 | % | 13.6 | % |
# # #
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