Close

Form 8-K CalAmp Corp. For: Sep 27

September 27, 2018 4:12 PM EDT

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):

September 27, 2018

 

 

 

 

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:

15635 Alton Parkway, Suite 250

 

 

Irvine, CA 92618

 

 

Registrant's Telephone Number, Including Area Code:

(949) 600-5600

 

 

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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.



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 September 27, 2018, CalAmp Corp. issued a press release announcing its financial results for the second quarter ended August 31, 2018.  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, 2018 will be held today, September 27, 2018 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

 

 

 

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.

 

 

 

 

 

 

 

September 27, 2018

 

By: /s/ Kurtis Binder

 

Date

 

 

Kurtis Binder

 

 

 

 

Executive Vice President and CFO

 

 

 

(Principal Financial Officer)

 

Exhibit 99.1

CalAmp Reports Fiscal 2019 Second Quarter Financial Results

Record quarterly revenue of $96 million, up 7% year-over-year

Gross margin of 41.5%, up from 40.1% in the prior quarter

Q2 Software and Subscription Services revenue of $18.9 million, up 21% year-over-year

IRVINE, CA, September 27, 2018 -- CalAmp (Nasdaq: CAMP), a technology solutions pioneer leading transformation in a global connected economy, today reported its financial results for its fiscal 2019 second quarter ended August 31, 2018.

“We experienced accelerating growth in our Software & Subscription Services (SaaS) business, while delivering record consolidated revenue, gross margin expansion and earnings at the upper end of our guidance range. We had stronger than expected growth in Network and OEM products revenue, driven by solid demand from our heavy equipment OEM customers,” said Michael Burdiek, President and Chief Executive Officer. “Our pipeline for SaaS solutions is robust and we are energized by the range of strategic opportunities to expand SaaS offerings to existing customers as well as to deliver newer over the top services to our telematics device installed base.”

Q2 2019 Financial & Business Highlights

 

Consolidated revenue reached a new quarterly record of $96 million, up 7% year-over-year.

 

Gross margin was 41.5%, up from 40.1% in the prior quarter.

 

GAAP net loss of $0.9 million or a loss of $0.02 per diluted share due to a $2.0 million charge for the early retirement of debt.  

 

Adjusted basis net income of $11.0 million or $0.31 per diluted share.  

 

Telematics Systems revenue for the second quarter was $77.1 million driven by strong growth in Network and OEM products revenue, which was up 37% year-over-year.

 

Software & Subscription Services revenue for the second quarter was $18.9 million or 20% of consolidated revenue. Revenue growth was driven by freight transport subscriber additions and our LoJack Italia business.

 

Operating cash flow of $5.9 million, with Adjusted EBITDA of $13.7 million and Adjusted EBITDA margin of 14%.

 

We executed arrangements with large U.S. dealership groups including Salinas Valley Ford to leverage the LoJack brand and deliver telematics technology solutions to empower dealerships in delivering advanced connected car services and driver safety features to customers.

 

We announced a partnership with Premier Wireless Solutions (PWS) to provide telematics and IoT technologies coupled with data analysis to support a scooter-based, vehicle-sharing service that provides on-demand access to environmental friendly transportation alternatives in urban areas across the U.S.

 

We partnered with Hello Tractor and Aeris to equip John Deere tractors with intelligent telematics and wireless connectivity to create an “Uber for tractors” to support small farmers requiring access to tractor and other rental equipment to spur economic growth in Nigeria and other developing regions.

 

We completed a $230 million convertible debt issuance with a portion of the proceeds or approximately $54 million used to repurchase outstanding convertible notes due in May 2020 and another $15 million used to repurchase outstanding common stock.


 

CalAmp Reports Fiscal Year 2019 Second Quarter Financial Results

Page 2 of 9

 

Summary Financial Information:

 

 

 

 

 

 

 

 

(In thousands except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

August 31,

 

Description

 

2018

 

 

2017

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

Telematics Systems

 

$

77,100

 

 

$

74,070

 

Software & Subscription Services

 

 

18,937

 

 

 

15,697

 

 

 

$

96,037

 

 

$

89,767

 

 

 

 

 

 

 

 

 

 

Gross profit

 

$

39,821

 

 

$

36,838

 

Gross margin

 

 

41.5

%

 

 

41.0

%

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(854

)

 

$

12,232

 

Net income (loss) per diluted share

 

$

(0.02

)

 

$

0.34

 

 

 

 

 

 

 

 

 

 

Non-GAAP measures:

 

 

 

 

 

 

 

 

Adjusted basis net income

 

$

10,976

 

 

$

9,575

 

Adjusted basis net income per diluted share

 

$

0.31

 

 

$

0.27

 

Adjusted EBITDA

 

$

13,689

 

 

$

12,301

 

Adjusted EBITDA margin

 

 

14.3

%

 

 

13.7

%

 

 

 

 

 

 

 

 

 

 

 

As of August 31,

 

 

As of February 28,

 

Description

 

2018

 

 

2018

 

 

 

 

 

 

 

 

 

 

Cash and marketable securities

 

$

304,998

 

 

$

156,003

 

Working capital

 

 

325,648

 

 

 

180,356

 

Deferred revenue

 

 

46,486

 

 

 

34,520

 

Convertible senior unsecured notes (carrying value)

 

 

268,980

 

 

 

154,299

 

 

Fiscal 2019 Third Quarter Business Outlook

 

(In thousands except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Range

 

Description

 

Low

 

 

High

 

 

 

 

 

 

 

 

 

 

GAAP financial information:

 

 

 

 

 

 

 

 

Revenues

 

$

94,000

 

 

$

99,000

 

Net income per diluted share

 

$

0.07

 

 

$

0.13

 

 

 

 

 

 

 

 

 

 

Non-GAAP financial information:

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

12,000

 

 

$

16,000

 

Adjusted basis net income per diluted share

 

$

0.29

 

 

$

0.35

 

 


 

CalAmp Reports Fiscal Year 2019 Second Quarter Financial Results

Page 3 of 9

 

Effective March 1, 2018, we adopted the new revenue recognition standard entitled Accounting Standards Update 2014-09, Revenue from Contracts with Customers (“ASC 606”). The Fiscal 2019 Third Quarter Business Outlook reflects the effects of adopting this new accounting standard.  In the third quarter and fiscal year 2019, we do not expect ASC 606 to have a material impact on our revenue.

The third quarter GAAP-basis net income outlook above includes the expected gain of approximately $2.5 million related to the legal settlement with a former LoJack supplier.  This expected fiscal 2019 third quarter non-operating gain is excluded from the Non-GAAP Adjusted EBITDA and Adjusted basis net income per diluted share guidance range above.

Conference Call and Webcast  

We are hosting a conference call for analysts and investors to discuss our fiscal 2019 second quarter results and outlook for our third quarter 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 30 days after the call.  The conference call can also be accessed by dialing 855-302-8830 (+1-330-871-6073 for international callers) and using the Conference ID# 3966157. Following the call, an audio replay will also be available by calling 855-859-2056 or +1-404-537-3406 and entering the Conference ID# 3966157. The audio replay will be available through October 11, 2018.

About CalAmp

CalAmp (Nasdaq: CAMP) is a technology solutions pioneer leading transformation in a global connected economy. We help reinvent business and improve lives around the globe with technology solutions that streamline complex IoT deployments and bring intelligence to the edge.  Our software applications, scalable cloud services, and intelligent devices collect and assess business-critical data from mobile assets, cargo, companies, cities and people. We call this The New How, powering autonomous IoT interaction, facilitating efficient decision making, optimizing resource utilization, and improving road safety.  CalAmp is headquartered in Irvine, California and has been publicly traded since 1983. LoJack is a wholly owned subsidiary of CalAmp. For more information, visit calamp.com, or LinkedInTwitterYouTube or CalAmp Blog.   

Forward-Looking Statements

This press release 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 and products, (ii)  our competitive position and opportunities, and (iii) other statements identified by words such as “may”, “will”, “expect”, “intend”, “plan”, “potential”, “believe”, “seek”, “could”, “estimate”, “judgment”, “targeting”, “should”, “anticipate”, “predict” “project”, “aim”, “goal”, “outlook” 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 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; competitive pressures; pricing declines; rates of growth in our target markets; prolonged disruptions of our or our contract manufacturers’ manufacturing facilities or other significant operations; our dependence on outsourced service providers for certain key business services and their ability to execute to our requirements; our ability to maintain or improve gross margins; 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, warranty and indemnification claims; our ability to sell to new types of customers and to keep pace with technological advances; and other events and trends on a national, regional and global scale, including those of a political, economic,


 

CalAmp Reports Fiscal Year 2019 Second Quarter Financial Results

Page 4 of 9

 

business, competitive, and regulatory nature. Other risks and uncertainties are detailed in our periodic public filings with the U.S. Securities and Exchange Commission (“SEC”), including but not limited to, our Annual Report on Form 10-K for the fiscal year ended February 28, 2018, filed with the SEC on May 10, 2018 and our Quarterly Report on Form 10-Q for the quarter ended May 31, 2018 filed with the SEC on June 28, 2018. You may obtain these filings 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, 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 Interest Income, Interest Expense, Income Taxes, Depreciation, Amortization, stock-based compensation, acquisition and integration expenses, non-cash costs and expenses arising from purchase accounting adjustments, litigation provisions, gain from legal settlement, restructuring charges and certain other adjustments as detailed in the accompanying non-GAAP reconciliation), and Adjusted EBITDA margin. Adjusted Basis net income excludes the impact of intangible asset amortization expense, stock-based compensation, non-cash interest from amortization of debt discount, acquisition and integration expenses, non-cash costs and expenses arising from purchase accounting adjustments, litigation provisions, gain on legal settlement, restructuring charges and certain other adjustments as shown in the non-GAAP reconciliation provided in the table at the end of this press release.  We use these non-GAAP financial measures to enhance the investor’s overall understanding of the financial performance and future prospects of our core business activities. Management does not believe that these items are reflective of our underlying performance. However, 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 our performance 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 for a more consistent basis of comparison and to help them evaluate our results of ongoing operations and enable more meaningful period-to-period comparisons. The reconciling adjustments in our non-GAAP financial results should not be interpreted as implying that these items are non-recurring, infrequent, or unusual.

 

AT CALAMP:

 

AT NMN ADVISORS:

Kurtis Binder

 

Nicole Noutsios

EVP & CFO

 

(510) 315-1003

[email protected]

 

[email protected]

 


 

CalAmp Reports Fiscal Year 2019 Second Quarter Financial Results

Page 5 of 9

 

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

 

 

 

2018

 

 

2017

 

 

 

2018

 

 

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

96,037

 

 

$

89,767

 

 

$

 

190,925

 

 

$

 

177,848

 

Cost of revenues

 

 

56,216

 

 

 

52,929

 

 

 

 

113,013

 

 

 

 

103,567

 

Gross profit

 

 

39,821

 

 

 

36,838

 

 

 

 

77,912

 

 

 

 

74,281

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

7,599

 

 

 

6,725

 

 

 

 

14,200

 

 

 

 

12,557

 

Selling and marketing

 

 

12,523

 

 

 

12,515

 

 

 

 

25,020

 

 

 

 

25,186

 

General and administrative

 

 

11,991

 

 

 

10,756

 

 

 

 

25,427

 

 

 

 

27,166

 

Restructuring

 

 

566

 

 

 

-

 

 

 

 

3,949

 

 

 

 

-

 

Intangible asset amortization

 

 

2,893

 

 

 

3,710

 

 

 

 

5,641

 

 

 

 

7,568

 

 

 

 

35,572

 

 

 

33,706

 

 

 

 

74,237

 

 

 

 

72,477

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

4,249

 

 

 

3,132

 

 

 

 

3,675

 

 

 

 

1,804

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-operating income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income

 

 

1,007

 

 

 

396

 

 

 

 

1,860

 

 

 

 

729

 

Interest expense

 

 

(3,767

)

 

 

(2,567

)

 

 

 

(6,432

)

 

 

 

(5,085

)

Gain on legal settlement

 

 

-

 

 

 

15,032

 

 

 

 

13,333

 

 

 

 

15,032

 

Loss on extinguishment of debt

 

 

(2,033

)

 

 

-

 

 

 

 

(2,033

)

 

 

 

-

 

Other income (expense)

 

 

(277

)

 

 

314

 

 

 

 

(503

)

 

 

 

431

 

 

 

 

(5,070

)

 

 

13,175

 

 

 

 

6,225

 

 

 

 

11,107

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

and equity in net loss of affiliate

 

 

(821

)

 

 

16,307

 

 

 

 

9,900

 

 

 

 

12,911

 

Income tax benefit (provision)

 

 

497

 

 

 

(3,699

)

 

 

 

(1,274

)

 

 

 

(2,619

)

Income (loss) before equity in net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

loss of affiliate

 

 

(324

)

 

 

12,608

 

 

 

 

8,626

 

 

 

 

10,292

 

Equity in net loss of affiliate

 

 

(530

)

 

 

(376

)

 

 

 

(969

)

 

 

 

(713

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(854

)

 

$

12,232

 

 

$

 

7,657

 

 

$

 

9,579

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.02

)

 

$

0.35

 

 

$

 

0.22

 

 

$

 

0.27

 

Diluted

 

$

(0.02

)

 

$

0.34

 

 

$

 

0.21

 

 

$

 

0.27

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

34,850

 

 

 

35,204

 

 

 

 

35,141

 

 

 

 

35,136

 

Diluted

 

 

34,850

 

 

 

36,021

 

 

 

 

36,073

 

 

 

 

35,973

 

 


 

CalAmp Reports Fiscal Year 2019 Second Quarter Financial Results

Page 6 of 9

 

 

CALAMP CORP.

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

(Amounts in thousands)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

August 31,

2018

 

 

February 28,

2018

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

273,972

 

 

$

132,603

 

Short-term marketable securities

 

 

31,026

 

 

 

23,400

 

Accounts receivable, net

 

 

70,981

 

 

 

71,580

 

Inventories

 

 

31,194

 

 

 

36,302

 

Prepaid expenses and other current assets

 

 

14,482

 

 

 

12,000

 

Total current assets

 

 

421,655

 

 

 

275,885

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

22,405

 

 

 

21,262

 

Deferred income tax assets

 

 

21,421

 

 

 

31,581

 

Goodwill

 

 

73,284

 

 

 

72,980

 

Other intangible assets, net

 

 

46,385

 

 

 

52,456

 

Other assets

 

 

25,773

 

 

 

18,829

 

 

 

$

610,923

 

 

$

472,993

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

36,159

 

 

$

35,478

 

Accrued payroll and employee benefits

 

 

7,544

 

 

 

10,606

 

Deferred revenue

 

 

20,683

 

 

 

17,757

 

Other current liabilities

 

 

31,621

 

 

 

31,688

 

Total current liabilities

 

 

96,007

 

 

 

95,529

 

 

 

 

 

 

 

 

 

 

Convertible senior unsecured notes, net

 

 

268,980

 

 

 

154,299

 

Other non-current liabilities

 

 

36,200

 

 

 

24,249

 

 

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

348

 

 

 

357

 

Additional paid-in capital

 

 

222,981

 

 

 

218,217

 

Accumulated deficit

 

 

(12,963

)

 

 

(19,459

)

Accumulated other comprehensive loss

 

 

(630

)

 

 

(199

)

Total stockholders' equity

 

 

209,736

 

 

 

198,916

 

 

 

$

610,923

 

 

$

472,993

 

 

 

 

 

 

 

 

 

 

- more -

 

 


 

CalAmp Reports Fiscal Year 2019 Second Quarter Financial Results

Page 7 of 9

 

 

CALAMP CORP.

 

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS

 

(Amounts in thousands)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

 

August 31,

 

 

 

2018

 

 

2017

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net income

 

$

7,657

 

 

$

9,579

 

Depreciation expense

 

 

4,341

 

 

 

3,983

 

Intangible assets amortization expense

 

 

5,641

 

 

 

7,568

 

Stock-based compensation expense

 

 

5,147

 

 

 

4,044

 

Amortization of convertible debt issue costs and discount

 

 

4,537

 

 

 

3,679

 

Loss on extinguishment of debt

 

 

2,033

 

 

 

-

 

Impairment loss on cost method investment

 

 

326

 

 

 

-

 

Tax benefits on vested and exercised equity awards

 

 

525

 

 

 

241

 

Deferred tax assets, net

 

 

(211

)

 

 

669

 

Unrealized foreign currency transaction losses (gains)

 

 

187

 

 

 

(385

)

Equity in net loss of affiliate

 

 

969

 

 

 

713

 

Other

 

 

(72

)

 

 

55

 

Changes in operating assets and liabilities

 

 

5,753

 

 

 

5,863

 

NET CASH PROVIDED BY OPERATING ACTIVITIES

 

 

36,833

 

 

 

36,009

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Proceeds from maturities and sale of marketable securities

 

 

32,792

 

 

 

7,268

 

Purchases of marketable securities

 

 

(40,312

)

 

 

(4,548

)

Capital expenditures

 

 

(5,770

)

 

 

(3,713

)

Advances to equity method investee

 

 

(1,063

)

 

 

(650

)

Other

 

 

(78

)

 

 

(135

)

NET CASH USED IN INVESTING ACTIVITIES

 

 

(14,431

)

 

 

(1,778

)

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Proceeds from issuance of 2025 Convertible Notes

 

 

230,000

 

 

 

-

 

Payment of debt issuance costs of 2025 Convertible Notes

 

 

(7,305

)

 

 

-

 

Purchase of capped call on 2025 Convertible Notes

 

 

(21,160

)

 

 

-

 

Repurchase of 2020 Convertible Notes

 

 

(53,683

)

 

 

-

 

Proceeds from unwind of note hedges and warrants on 2020

  Convertible Notes

 

 

3,122

 

 

 

-

 

Taxes paid related to net share settlement of vested equity awards

 

 

(3,347

)

 

 

(2,335

)

Proceeds from exercise of stock options

 

 

101

 

 

 

128

 

Repurchases of common stock

 

 

(28,564

)

 

 

-

 

NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES

 

 

119,164

 

 

 

(2,207

)

 

 

 

 

 

 

 

 

 

EFFECT OF EXCHANGE RATE CHANGE ON CASH

 

 

(197

)

 

 

906

 

Net change in cash and cash equivalents

 

 

141,369

 

 

 

32,930

 

Cash and cash equivalents at beginning of period

 

 

132,603

 

 

 

93,706

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at end of period

 

$

273,972

 

 

$

126,636

 

 



 

CalAmp Reports Fiscal Year 2019 Second Quarter Financial Results

Page 8 of 9

 

CALAMP CORP.

RECONCILIATION OF NON-GAAP MEASURES TO GAAP

(Unaudited)

GAAP refers to financial information presented in accordance with U.S. Generally Accepted Accounting Principles. This press release includes historical non-GAAP financial measures, as defined in Regulation G promulgated by the SEC. 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 press release, we report the non-GAAP financial measures of Adjusted basis net income, Adjusted basis net income per diluted share, Adjusted EBITDA (Earnings Before Interest Income, Interest Expense, Income Taxes, Depreciation, Amortization and stock-based compensation, loss on extinguishment of debt, gain on legal settlement, restructuring charges and other adjustments as identified below), and Adjusted EBITDA margin. We use these non-GAAP financial measures to enhance the investor's 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 our core business operations between current and past periods.  

The reconciliation of GAAP basis net income (loss) to Adjusted basis (non-GAAP) net income is as follows (in thousands except per share amounts):

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

August 31

 

 

August 31

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

GAAP basis net income (loss)

 

$

(854

)

 

$

12,232

 

 

$

 

7,657

 

 

$

 

9,579

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intangible assets amortization expense

 

 

2,893

 

 

 

3,710

 

 

 

 

5,641

 

 

 

 

7,568

 

Stock-based compensation expense

 

 

2,680

 

 

 

2,227

 

 

 

 

5,147

 

 

 

 

4,044

 

Non-cash interest expense from amortization of debt discount

 

 

2,355

 

 

 

1,653

 

 

 

 

4,067

 

 

 

 

3,263

 

GAAP basis income tax provision (benefit)

 

 

(497

)

 

 

3,699

 

 

 

 

1,274

 

 

 

 

2,619

 

Equity in net loss of affiliate

 

 

530

 

 

 

376

 

 

 

 

969

 

 

 

 

713

 

Loss on extinguishment of debt

 

 

2,033

 

 

 

-

 

 

 

 

2,033

 

 

 

 

-

 

Realized gain on investment of equity securities

 

 

-

 

 

 

-

 

 

 

 

629

 

 

 

 

-

 

Gain on legal settlement

 

 

-

 

 

 

(15,032

)

 

 

 

(13,333

)

 

 

 

(15,032

)

Litigation provision

 

 

459

 

 

 

411

 

 

 

 

887

 

 

 

 

6,486

 

Legal expense for LoJack battery performance issue

 

 

564

 

 

 

430

 

 

 

 

2,250

 

 

 

 

927

 

Restructuring

 

 

566

 

 

 

-

 

 

 

 

3,949

 

 

 

 

-

 

Impairment loss on equity investment

 

 

326

 

 

 

-

 

 

 

 

326

 

 

 

 

-

 

Other

 

 

121

 

 

 

169

 

 

 

 

366

 

 

 

 

355

 

Adjusted basis income before income taxes

 

 

11,176

 

 

 

9,875

 

 

 

 

21,862

 

 

 

 

20,522

 

Income tax provision (non-GAAP basis) (a)

 

 

(200

)

 

 

(300

)

 

 

 

(400

)

 

 

 

(550

)

Adjusted basis net income

 

$

10,976

 

 

$

9,575

 

 

$

 

21,462

 

 

$

 

19,972

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted basis net income per diluted share

 

$

0.31

 

 

$

0.27

 

 

$

 

0.59

 

 

$

 

0.56

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding on diluted basis

 

 

35,718

 

 

 

36,021

 

 

 

 

36,073

 

 

 

 

35,973

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.

 

 


 

CalAmp Reports Fiscal Year 2019 Second Quarter Financial Results

Page 9 of 9

 

The reconciliation of GAAP-basis net income (loss) to Adjusted EBITDA and the calculation of Adjusted EBITDA margin are as follows (dollars in thousands):

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

August 31

 

 

August 31

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP basis net income (loss)

 

$

(854

)

 

$

12,232

 

 

$

 

7,657

 

 

$

 

9,579

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income

 

 

(1,007

)

 

 

(396

)

 

 

 

(1,860

)

 

 

 

(729

)

Interest expense

 

 

3,767

 

 

 

2,567

 

 

 

 

6,432

 

 

 

 

5,085

 

Income tax provision (benefit)

 

 

(497

)

 

 

3,699

 

 

 

 

1,274

 

 

 

 

2,619

 

Depreciation

 

 

2,298

 

 

 

1,958

 

 

 

 

4,341

 

 

 

 

3,983

 

Amortization of intangible assets

 

 

2,893

 

 

 

3,710

 

 

 

 

5,641

 

 

 

 

7,568

 

Stock-based compensation

 

 

2,680

 

 

 

2,227

 

 

 

 

5,147

 

 

 

 

4,044

 

Equity in net loss of affiliate

 

 

530

 

 

 

376

 

 

 

 

969

 

 

 

 

713

 

Loss on extinguishment of debt

 

 

2,033

 

 

 

-

 

 

 

 

2,033

 

 

 

 

-

 

Legal expense for LoJack battery performance issue

 

 

564

 

 

 

430

 

 

 

 

2,250

 

 

 

 

927

 

Litigation provision

 

 

459

 

 

 

411

 

 

 

 

887

 

 

 

 

6,486

 

Gain on legal settlement

 

 

-

 

 

 

(15,032

)

 

 

 

(13,333

)

 

 

 

(15,032

)

Restructuring

 

 

566

 

 

 

-

 

 

 

 

3,949

 

 

 

 

-

 

Other

 

 

257

 

 

 

119

 

 

 

 

479

 

 

 

 

239

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

13,689

 

 

$

12,301

 

 

$

 

25,866

 

 

$

 

25,482

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

96,037

 

 

$

89,767

 

 

$

 

190,925

 

 

$

 

177,848

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA margin

 

 

14.3

%

 

 

13.7

%

 

 

 

13.5

%

 

 

 

14.3

%

 



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

SEC Filings