IRVINE, Calif., April 22, 2021 /PRNewswire/ -- CalAmp
(Nasdaq: CAMP), a global 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 fourth quarter and fiscal year 2021 ended
February 28, 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.
"Revenue from continuing operations in the fourth quarter
increased sequentially and year-over-year due to robust customer
demand in support of the 3G-to-4G upgrade cycle, particularly at
our largest customer," commented Jeff
Gardner, CalAmp's president and chief executive officer.
"This growth was further supported by gradual improvements in
certain markets and geographies combined with sustained demand for
our SaaS solutions.
"More recently, we were very pleased to have reached an
agreement with Spireon to sell the LoJack North America business.
We are now strategically aligned and well positioned as we enter
our first fiscal quarter with near-record customer backlog. We
remain cautious as we work with our suppliers to closely manage
supply chain shortages for certain components. We are focused on
aggressively expanding our global SaaS solutions to drive margins,
profitability and cash flow in the coming fiscal year and
beyond."
Fourth Quarter and Fiscal Year 2021 Financial
Overview
- Consolidated revenue from continuing operations was
$81.9 million for the fourth quarter
and $308.6 million for fiscal year
2021, which excludes $7.6 million and
$32.7 million of LoJack North America
revenue, respectively.
- Software & Subscription Services (S&SS) revenue for the
fourth quarter was $34.7 million,
representing 42.3% of consolidated revenue, and $129.9 million for the full year, which was up
5.2% from the prior year.
- Telematics Products revenue for the quarter was $47.3 million, which was up 6.3% sequentially due
to strong demand from the 3G-to-4G transition, and down 9.9% for
the full year due to the impact of the COVID-19 pandemic.
- Sales to its largest customer reached another quarterly record
of $18.6 million, representing growth
of 12.9% sequentially, and $59.6
million for the full year, representing growth of
19.0%.
- Gross margin for the quarter increased 240 basis points
sequentially to 42.2% and increased 70 basis points for the full
year to 39.7%.
- GAAP net loss from continuing operations for the quarter was
$3.2 million, or a loss of
$0.09 per share.
- Adjusted basis non-GAAP net income for the quarter was
$4.8 million, or $0.14 per diluted share.
- Adjusted EBITDA for the quarter was $9.9
million, or 12% of revenue, and $32.1
million for the full year, or 10% of revenue.
- Total S&SS subscribers increased to 954,000, an increase of
8% from the prior year, after excluding the Automotive Vehicle
Finance business.
- Ended the quarter with $94.6
million in cash and cash equivalents with operating cash
flow from continuing operations for the year of $33.0 million.
- Free cash flow from continuing operations increased to
$21.6 million, up from an outflow of
$14.5 million in the prior year.
Other Business and Recent Highlights
- Launched new SC iOn Supply Chain Visibility solution for
refrigerated vaccines, pharmaceuticals and other high-value
shipments.
- Introduced a new flexible and data-enriched intuitive user
interface (UI) for its CalAmp iOn™ fully integrated solutions suite
of fleet and asset management applications.
- CGTE, a dealer for the Cat® Rental Store in Italy for Caterpillar machinery, selected
CalAmp's LoJack Italia to protect its rental fleet of equipment
against theft and to collect real-time data for fleet and logistics
management.
- Molly Maid, the nation's leading
residential cleaning franchise, adopted CalAmp's iOn™ fleet
tracking and asset management solution to offer franchise owners
real-time visibility into their fleet activity and mobile
workforces.
- Collaborated with Alarm.com to offer customers the benefits of
a vehicle monitoring solution as an integrated feature of its smart
home security systems.
- Signed multi-year agreement with Localiza to add more
value-added telematics to Brazil's
car rental industry.
Summary Financial
Information From Continuing Operations:
|
|
|
|
|
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|
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(In thousands except
per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
Three Months
Ended
|
|
|
Fiscal Year
Ended
|
|
|
|
February
28/29
|
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|
February
28/29
|
|
Description
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Software &
Subscription Services (S&SS)
|
|
$
|
34,668
|
|
|
$
|
34,458
|
|
|
$
|
129,933
|
|
|
$
|
123,460
|
|
Telematics
Products
|
|
|
47,279
|
|
|
|
42,628
|
|
|
|
178,654
|
|
|
|
198,313
|
|
|
|
$
|
81,947
|
|
|
$
|
77,086
|
|
|
$
|
308,587
|
|
|
$
|
321,773
|
|
Gross
margin
|
|
|
42
|
%
|
|
|
38
|
%
|
|
|
40
|
%
|
|
|
39
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(3,221)
|
|
|
$
|
(39,224)
|
|
|
$
|
(21,157)
|
|
|
$
|
(51,552)
|
|
Net loss per diluted
share
|
|
$
|
(0.09)
|
|
|
$
|
(1.16)
|
|
|
$
|
(0.62)
|
|
|
$
|
(1.54)
|
|
Non-GAAP
measures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted basis net
income
|
|
$
|
4,840
|
|
|
$
|
2,440
|
|
|
$
|
10,360
|
|
|
$
|
18,370
|
|
Adjusted basis net
income per diluted share
|
|
$
|
0.14
|
|
|
$
|
0.07
|
|
|
$
|
0.30
|
|
|
$
|
0.54
|
|
Adjusted
EBITDA
|
|
$
|
9,901
|
|
|
$
|
8,719
|
|
|
$
|
32,106
|
|
|
$
|
38,909
|
|
Adjusted EBITDA
margin
|
|
|
12
|
%
|
|
|
11
|
%
|
|
|
10
|
%
|
|
|
12
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
February
28/29,
|
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|
|
|
|
|
|
|
|
Description
|
|
2021
|
|
|
2020
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
94,624
|
|
|
$
|
107,404
|
|
|
|
|
|
|
|
|
|
Working
capital
|
|
|
103,267
|
|
|
|
111,219
|
|
|
|
|
|
|
|
|
|
Deferred
revenue
|
|
|
52,817
|
|
|
|
57,071
|
|
|
|
|
|
|
|
|
|
Free cash
flows
|
|
|
21,641
|
|
|
|
(14,464)
|
|
|
|
|
|
|
|
|
|
Total debt (carrying
value)
|
|
|
186,471
|
|
|
|
210,207
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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S&SS
Supplemental Information:
|
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|
|
|
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|
|
S&SS annual
recurring revenue
|
|
$
|
97,257
|
|
|
$
|
85,812
|
|
|
|
|
|
|
|
|
|
Less: Automotive
vehicle finance
|
|
|
(9,856)
|
|
|
|
(9,884)
|
|
|
|
|
|
|
|
|
|
Other S&SS annual
recurring revenue
|
|
$
|
87,401
|
|
|
$
|
75,928
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
S&SS remaining
performance obligation
|
|
$
|
145,070
|
|
|
$
|
129,410
|
|
|
|
|
|
|
|
|
|
Less: Automotive
vehicle finance
|
|
|
(8,566)
|
|
|
|
(14,299)
|
|
|
|
|
|
|
|
|
|
Other S&SS
remaining performance obligation
|
|
$
|
136,504
|
|
|
$
|
115,111
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total S&SS
subscribers
|
|
|
1,286
|
|
|
|
1,323
|
|
|
|
|
|
|
|
|
|
Less: Automotive
vehicle finance
|
|
|
(332)
|
|
|
|
(439)
|
|
|
|
|
|
|
|
|
|
Other S&SS
subscribers
|
|
|
954
|
|
|
|
884
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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First 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
COVID-19 pandemic.
Conference Call and Webcast
CalAmp is hosting a conference call for analysts and investors
to discuss its fourth quarter and fiscal year 2021 results at
1:30 p.m. Pacific Time today.
Participants can listen in via webcast by visiting the Investor
Relations section of our website at www.calamp.com. Please go to
the website at least 15 minutes early to register, download and
install any necessary audio software. A replay of the webcast will
be available for 90 days after the call. The conference call
can also be accessed by dialing 833-714-0868
(+1-778-560-2625 for international callers) and using the
Conference ID # 8681517. 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# 8681517. The audio replay will be
available through April 29, 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, platforms 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 1.3 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 to Spireon; 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 our recent acquisitions; the
impact of legal proceedings and compliance risks; implementation of
our new ERP system; the impact on our business and reputation from
information technology system failures, network disruptions,
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 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 American 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
|
|
|
Fiscal Year
Ended
|
|
|
February
28/29
|
|
|
February
28/29
|
|
|
|
2021
|
|
|
|
2020
|
|
|
|
2021
|
|
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
|
81,947
|
|
|
$
|
|
77,086
|
|
|
$
|
|
308,587
|
|
|
$
|
|
321,773
|
|
Cost of
revenues
|
|
|
47,347
|
|
|
|
|
47,500
|
|
|
|
|
186,182
|
|
|
|
|
196,280
|
|
Gross
profit
|
|
|
34,600
|
|
|
|
|
29,586
|
|
|
|
|
122,405
|
|
|
|
|
125,493
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
6,886
|
|
|
|
|
6,414
|
|
|
|
|
25,811
|
|
|
|
|
26,993
|
|
Selling and
marketing
|
|
|
12,459
|
|
|
|
|
12,348
|
|
|
|
|
46,202
|
|
|
|
|
47,379
|
|
General and
administrative
|
|
|
13,174
|
|
|
|
|
10,924
|
|
|
|
|
49,077
|
|
|
|
|
49,479
|
|
Intangible asset
amortization
|
|
|
1,214
|
|
|
|
|
1,326
|
|
|
|
|
4,781
|
|
|
|
|
5,871
|
|
Restructuring
|
|
|
617
|
|
|
|
|
1,169
|
|
|
|
|
2,534
|
|
|
|
|
2,465
|
|
Impairment
losses
|
|
|
539
|
|
|
|
|
5,754
|
|
|
|
|
825
|
|
|
|
|
5,754
|
|
|
|
|
34,889
|
|
|
|
|
37,935
|
|
|
|
|
129,230
|
|
|
|
|
137,941
|
|
Operating
loss
|
|
|
(289)
|
|
|
|
|
(8,349)
|
|
|
|
|
(6,825)
|
|
|
|
|
(12,448)
|
|
Non-operating income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
income
|
|
|
837
|
|
|
|
|
52
|
|
|
|
|
2,119
|
|
|
|
|
4,497
|
|
Interest
expense
|
|
|
(3,673)
|
|
|
|
|
(4,098)
|
|
|
|
|
(15,487)
|
|
|
|
|
(20,096)
|
|
Loss on extinguishment
of debt
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(2,408)
|
|
Other expense,
net
|
|
|
(360)
|
|
|
|
|
(139)
|
|
|
|
|
(403)
|
|
|
|
|
(113)
|
|
|
|
|
(3,196)
|
|
|
|
|
(4,185)
|
|
|
|
|
(13,771)
|
|
|
|
|
(18,120)
|
|
Loss from continuing
operations before income taxes and impairment loss on investment in
affiliate
|
|
|
(3,485)
|
|
|
|
|
(12,534)
|
|
|
|
|
(20,596)
|
|
|
|
|
(30,568)
|
|
Income tax benefit
(provision) from continuing operations
|
|
|
264
|
|
|
|
|
(26,690)
|
|
|
|
|
(561)
|
|
|
|
|
(20,454)
|
|
Loss from continuing
operations before impairment loss on investment in
affiliate
|
|
|
(3,221)
|
|
|
|
|
(39,224)
|
|
|
|
|
(21,157)
|
|
|
|
|
(51,022)
|
|
Impairment loss on
investment in affiliate
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(530)
|
|
Loss from continuing
operations
|
|
|
(3,221)
|
|
|
|
|
(39,224)
|
|
|
|
|
(21,157)
|
|
|
|
|
(51,552)
|
|
Loss from
discontinued operations, net of tax
|
|
|
(5,508)
|
|
|
|
|
(16,603)
|
|
|
|
|
(35,152)
|
|
|
|
|
(27,752)
|
|
Net loss
|
$
|
|
(8,729)
|
|
|
$
|
|
(55,827)
|
|
|
$
|
|
(56,309)
|
|
|
$
|
|
(79,304)
|
|
Loss per share -
continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
|
(0.09)
|
|
|
$
|
|
(1.16)
|
|
|
$
|
|
(0.62)
|
|
|
$
|
|
(1.54)
|
|
Diluted
|
$
|
|
(0.09)
|
|
|
$
|
|
(1.16)
|
|
|
$
|
|
(0.62)
|
|
|
$
|
|
(1.54)
|
|
Loss per share -
discontinued operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
|
(0.16)
|
|
|
$
|
|
(0.49)
|
|
|
$
|
|
(1.02)
|
|
|
$
|
|
(0.82)
|
|
Diluted
|
$
|
|
(0.16)
|
|
|
$
|
|
(0.49)
|
|
|
$
|
|
(1.02)
|
|
|
$
|
|
(0.82)
|
|
Loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
|
(0.25)
|
|
|
$
|
|
(1.65)
|
|
|
$
|
|
(1.64)
|
|
|
$
|
|
(2.36)
|
|
Diluted
|
$
|
|
(0.25)
|
|
|
$
|
|
(1.65)
|
|
|
$
|
|
(1.64)
|
|
|
$
|
|
(2.36)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing loss per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
34,685
|
|
|
|
|
33,915
|
|
|
|
|
34,389
|
|
|
|
|
33,670
|
|
Diluted
|
|
|
34,685
|
|
|
|
|
33,915
|
|
|
|
|
34,389
|
|
|
|
|
33,670
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- more -
|
|
CALAMP
CORP.
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(Amounts in
thousands)
|
|
(Unaudited)
|
|
|
|
|
|
February
28/29,
|
|
|
|
|
|
2021
|
|
|
2020
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
$
|
|
94,624
|
|
|
$
|
|
107,404
|
|
Accounts
receivable, net
|
|
|
|
|
|
63,325
|
|
|
|
|
64,639
|
|
Inventories
|
|
|
|
|
|
23,663
|
|
|
|
|
32,472
|
|
Prepaid
expenses and other current assets
|
|
|
|
|
|
24,804
|
|
|
|
|
20,433
|
|
Current assets
of discontinued operations
|
|
|
|
|
|
7,872
|
|
|
|
|
12,918
|
|
Total current
assets
|
|
|
|
|
|
214,288
|
|
|
|
|
237,866
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
|
|
|
41,081
|
|
|
|
|
55,878
|
|
Operating lease
right-of-use assets
|
|
|
|
|
|
14,273
|
|
|
|
|
20,626
|
|
Deferred income tax
assets
|
|
|
|
|
|
4,889
|
|
|
|
|
4,437
|
|
Goodwill
|
|
|
|
|
|
94,617
|
|
|
|
|
94,312
|
|
Other intangible
assets, net
|
|
|
|
|
|
37,488
|
|
|
|
|
42,954
|
|
Other
assets
|
|
|
|
|
|
27,169
|
|
|
|
|
24,514
|
|
Non-current assets of
discontinued operations
|
|
|
|
|
|
-
|
|
|
|
|
15,218
|
|
Total
assets
|
|
|
|
$
|
|
433,805
|
|
|
$
|
|
495,805
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
portion of long-term debt
|
|
|
|
$
|
|
4,317
|
|
|
$
|
|
33,119
|
|
Accounts
payable
|
|
|
|
|
|
35,767
|
|
|
|
|
24,635
|
|
Accrued
payroll and employee benefits
|
|
|
|
|
|
12,761
|
|
|
|
|
9,049
|
|
Deferred
revenue
|
|
|
|
|
|
32,924
|
|
|
|
|
32,427
|
|
Other current
liabilities
|
|
|
|
|
|
17,380
|
|
|
|
|
14,499
|
|
Current
liabilities of discontinued operations
|
|
|
|
|
|
4,096
|
|
|
|
|
7,746
|
|
Total current
liabilities
|
|
|
|
|
|
107,245
|
|
|
|
|
121,475
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt, net
of current portion
|
|
|
|
|
|
182,154
|
|
|
|
|
177,088
|
|
Operating lease
liabilities
|
|
|
|
|
|
17,061
|
|
|
|
|
24,279
|
|
Other non-current
liabilities
|
|
|
|
|
|
30,487
|
|
|
|
|
32,236
|
|
Non-current
liabilities of discontinued operations
|
|
|
|
|
|
1,773
|
|
|
|
|
2,808
|
|
Total
liabilities
|
|
|
|
|
|
338,720
|
|
|
|
|
357,886
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock
|
|
|
|
|
|
352
|
|
|
|
|
343
|
|
Additional
paid-in capital
|
|
|
|
|
|
233,692
|
|
|
|
|
220,482
|
|
Accumulated
deficit
|
|
|
|
|
|
(137,974)
|
|
|
|
|
(81,531)
|
|
Accumulated
other comprehensive loss
|
|
|
|
|
|
(985)
|
|
|
|
|
(1,375)
|
|
Total stockholders'
equity
|
|
|
|
|
|
95,085
|
|
|
|
|
137,919
|
|
Total liabilities and
stockholders' equity
|
|
|
|
$
|
|
433,805
|
|
|
$
|
|
495,805
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- more -
|
|
|
CALAMP
CORP.
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
(Amounts in
thousands)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year
Ended
|
|
|
|
February
28/29
|
|
|
|
|
2021
|
|
|
|
2020
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
|
(56,309)
|
|
|
$
|
|
(79,304)
|
|
|
Less: Net loss from
discontinued operations, net of tax
|
|
|
(35,152)
|
|
|
|
|
(27,752)
|
|
|
Net loss from
continuing operations
|
|
|
(21,157)
|
|
|
|
|
(51,552)
|
|
|
Depreciation
|
|
|
17,221
|
|
|
|
|
17,441
|
|
|
Intangible asset
amortization
|
|
|
4,781
|
|
|
|
|
5,871
|
|
|
Stock-based
compensation
|
|
|
11,364
|
|
|
|
|
10,667
|
|
|
Amortization of debt
issuance costs and discount
|
|
|
10,180
|
|
|
|
|
13,764
|
|
|
Impairment
losses
|
|
|
825
|
|
|
|
|
5,754
|
|
|
Noncash operating
lease cost
|
|
|
421
|
|
|
|
|
1,534
|
|
|
Revenue assigned to
factors
|
|
|
(6,291)
|
|
|
|
|
(6,844)
|
|
|
Loss on
extinguishment of debt
|
|
|
-
|
|
|
|
|
2,408
|
|
|
Deferred tax assets,
net
|
|
|
(1)
|
|
|
|
|
18,552
|
|
|
Other
|
|
|
723
|
|
|
|
|
1,129
|
|
|
Changes in operating
assets and liabilities of continuing operations
|
|
|
14,931
|
|
|
|
|
(11,887)
|
|
|
Net cash provided by
continuing operations
|
|
|
32,997
|
|
|
|
|
6,837
|
|
|
Net cash provided by
(used in) discontinued operations
|
|
|
(4,412)
|
|
|
|
|
4,707
|
|
NET CASH PROVIDED BY
OPERATING ACTIVITIES
|
|
|
28,585
|
|
|
|
|
11,544
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
Proceeds from
maturities and sale of marketable securities
|
|
|
6,264
|
|
|
|
|
37,055
|
|
|
Purchases of
marketable securities
|
|
|
(6,264)
|
|
|
|
|
(19,543)
|
|
|
Capital
expenditures
|
|
|
(11,356)
|
|
|
|
|
(21,301)
|
|
|
Acquisitions, net of
cash acquired
|
|
|
-
|
|
|
|
|
(60,652)
|
|
|
Other
|
|
|
-
|
|
|
|
|
(366)
|
|
|
Net cash used in
continuing operations
|
|
|
(11,356)
|
|
|
|
|
(64,807)
|
|
|
Net cash used in
discontinued operations
|
|
|
(2,338)
|
|
|
|
|
(891)
|
|
NET CASH USED IN
INVESTING ACTIVITIES
|
|
|
(13,694)
|
|
|
|
|
(65,698)
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
19,944
|
|
|
|
|
-
|
|
|
Repayment of 2020
Convertible Notes
|
|
|
(27,599)
|
|
|
|
|
-
|
|
|
Repurchase of 2020
Convertible Notes
|
|
|
-
|
|
|
|
|
(94,683)
|
|
|
Repayment of
revolving credit facility
|
|
|
(20,000)
|
|
|
|
|
-
|
|
|
Taxes paid related to
net share settlement of vested equity awards
|
|
|
(1,628)
|
|
|
|
|
(2,007)
|
|
|
Proceeds from
exercise of stock options and contributions to ESPP
|
|
|
1,967
|
|
|
|
|
1,870
|
|
NET CASH USED IN
FINANCING ACTIVITIES
|
|
|
(27,316)
|
|
|
|
|
(94,820)
|
|
|
|
|
|
|
|
|
|
|
|
|
EFFECT OF EXCHANGE
RATE CHANGES ON CASH AND CASH EQUIVALENTS
|
|
|
(355)
|
|
|
|
|
(122)
|
|
Net change in cash
and cash equivalents
|
|
|
(12,780)
|
|
|
|
|
(149,096)
|
|
Cash and cash
equivalents at beginning of period
|
|
|
107,404
|
|
|
|
|
256,500
|
|
Cash and cash
equivalents at end of period
|
$
|
|
94,624
|
|
|
$
|
|
107,404
|
|
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
and stock-based compensation, impairment loss and other
adjustments as identified below), and Adjusted EBITDA margin. We
use these non-GAAP financial measures to provide investors
with an overall understanding of the financial performance and
future prospects of our core business
activities. Specifically, we believe that the use of these
non-GAAP measures facilitates the comparison of results of core
business operations between 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
|
|
|
Fiscal Year
Ended
|
|
|
February
28/29
|
|
|
February
28/29
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP basis net
loss
|
$
|
|
(8,729)
|
|
|
$
|
|
(55,827)
|
|
|
$
|
|
(56,309)
|
|
|
$
|
|
(79,304)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from
discontinued operations, net of tax
|
|
|
5,508
|
|
|
$
|
|
16,603
|
|
|
$
|
|
35,152
|
|
|
$
|
|
27,752
|
|
Intangible assets
amortization
|
|
|
1,214
|
|
|
|
|
1,326
|
|
|
|
|
4,781
|
|
|
|
|
5,871
|
|
Stock-based
compensation
|
|
|
2,870
|
|
|
|
|
2,644
|
|
|
|
|
10,357
|
|
|
|
|
10,667
|
|
Non-cash interest
expense
|
|
|
2,468
|
|
|
|
|
2,723
|
|
|
|
|
10,180
|
|
|
|
|
13,764
|
|
GAAP basis income tax
provision (benefit)
|
|
|
(264)
|
|
|
|
|
26,690
|
|
|
|
|
561
|
|
|
|
|
20,454
|
|
Acquisition and
integration related expenses
|
|
|
-
|
|
|
|
|
638
|
|
|
|
|
-
|
|
|
|
|
2,210
|
|
Loss on
extinguishment of debt
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
2,408
|
|
Litigation and
non-recurring legal expenses
|
|
|
689
|
|
|
|
|
672
|
|
|
|
|
2,262
|
|
|
|
|
6,213
|
|
Impairment
losses
|
|
|
539
|
|
|
|
|
5,754
|
|
|
|
|
825
|
|
|
|
|
5,754
|
|
Restructuring
|
|
|
617
|
|
|
|
|
1,169
|
|
|
|
|
2,534
|
|
|
|
|
2,465
|
|
Other
|
|
|
148
|
|
|
|
|
198
|
|
|
|
|
667
|
|
|
|
|
1,166
|
|
Adjusted basis income
before income taxes
|
|
|
5,060
|
|
|
|
|
2,590
|
|
|
|
|
11,010
|
|
|
|
|
19,420
|
|
Income tax provision
(non-GAAP basis) (a)
|
|
|
(220)
|
|
|
|
|
(150)
|
|
|
|
|
(650)
|
|
|
|
|
(1,050)
|
|
Adjusted basis net
income
|
$
|
|
4,840
|
|
|
$
|
|
2,440
|
|
|
$
|
|
10,360
|
|
|
$
|
|
18,370
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted basis net
income per diluted share
|
$
|
|
0.14
|
|
|
$
|
|
0.07
|
|
|
$
|
|
0.30
|
|
|
$
|
|
0.54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding on a diluted basis
|
|
|
35,606
|
|
|
|
|
34,162
|
|
|
|
|
34,768
|
|
|
|
|
33,934
|
|
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
|
|
|
Fiscal Year
Ended
|
|
|
February
28/29
|
|
|
February
28/29
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP basis net
loss
|
$
|
|
(8,729)
|
|
|
$
|
|
(55,827)
|
|
|
$
|
|
(56,309)
|
|
|
$
|
|
(79,304)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from
discontinued operations, net of tax
|
|
|
5,508
|
|
|
|
|
16,603
|
|
|
|
|
35,152
|
|
|
|
|
27,752
|
|
Investment
income
|
|
|
(837)
|
|
|
|
|
(52)
|
|
|
|
|
(2,119)
|
|
|
|
|
(4,497)
|
|
Interest
expense
|
|
|
3,673
|
|
|
|
|
4,098
|
|
|
|
|
15,487
|
|
|
|
|
20,096
|
|
Income tax provision
(benefit)
|
|
|
(264)
|
|
|
|
|
26,690
|
|
|
|
|
561
|
|
|
|
|
20,454
|
|
Depreciation and
amortization
|
|
|
5,345
|
|
|
|
|
6,476
|
|
|
|
|
22,002
|
|
|
|
|
23,312
|
|
Stock-based
compensation
|
|
|
2,870
|
|
|
|
|
2,644
|
|
|
|
|
10,357
|
|
|
|
|
10,667
|
|
Loss on
extinguishment of debt
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
2,408
|
|
Acquisition and
integration related expenses
|
|
|
-
|
|
|
|
|
638
|
|
|
|
|
-
|
|
|
|
|
2,210
|
|
Litigation and
non-recurring legal expenses
|
|
|
689
|
|
|
|
|
672
|
|
|
|
|
2,262
|
|
|
|
|
6,213
|
|
Impairment
losses
|
|
|
539
|
|
|
|
|
5,754
|
|
|
|
|
825
|
|
|
|
|
5,754
|
|
Restructuring
|
|
|
617
|
|
|
|
|
1,169
|
|
|
|
|
2,534
|
|
|
|
|
2,465
|
|
Other
|
|
|
490
|
|
|
|
|
(146)
|
|
|
|
|
1,354
|
|
|
|
|
1,379
|
|
Adjusted
EBITDA
|
$
|
|
9,901
|
|
|
$
|
|
8,719
|
|
|
$
|
|
32,106
|
|
|
$
|
|
38,909
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other favorable
(unfavorable) impacts to Adjusted basis net
income and Adjusted EBITDA (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred revenue
purchase accounting adjustment
|
$
|
|
(564)
|
|
|
$
|
|
(1,450)
|
|
|
$
|
|
(3,099)
|
|
|
$
|
|
(8,622)
|
|
Resolution of a
product performance matter
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(1,400)
|
|
|
|
|
-
|
|
Manufacturing
variances
|
|
|
-
|
|
|
|
|
(1,849)
|
|
|
|
|
-
|
|
|
|
|
(4,326)
|
|
Inventory excess and
obsolescence
|
|
|
-
|
|
|
|
|
(1,038)
|
|
|
|
|
(596)
|
|
|
|
|
(2,896)
|
|
Total other favorable
(unfavorable) impacts to Adjusted
EBITDA
|
$
|
|
(564)
|
|
|
$
|
|
(4,337)
|
|
|
$
|
|
(5,095)
|
|
|
$
|
|
(15,844)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
|
81,947
|
|
|
$
|
|
77,086
|
|
|
$
|
|
308,587
|
|
|
$
|
|
321,773
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
margin
|
|
|
12
|
%
|
|
|
|
11
|
%
|
|
|
|
10
|
%
|
|
|
|
12
|
%
|
(a)
|
The non-GAAP income
tax provision represents cash taxes paid or payable for the period
after giving effect to the utilization of net operating losses and
tax credit carryforwards.
|
(b)
|
Other favorable
(unfavorable) impacts to Adjusted basis net income 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, resolution of a product performance
matter with a customer, manufacturing variances for
under-absorption of labor and overhead into our inventory during
the closure of our U.S. manufacturing facility and
inventories related to the automotive vehicle finance business that
are obsolete or in excess of demand forecast.
|
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SOURCE CalAmp