IRVINE, Calif., Sept. 23, 2021 /PRNewswire/ -- CalAmp
(Nasdaq: CAMP), a connected intelligence company helping businesses
and people track, monitor and recover vital assets with real-time
visibility and insights, today reported financial results for its
second quarter of fiscal year 2022 ended August 31, 2021.
"We achieved another quarter of solid revenue growth in our
Software and Subscription Services business, which also contributed
to an increase in our consolidated gross margin," commented
Jeff Gardner, CalAmp's president and
chief executive officer. "Key to this performance was the initial
conversion of a few strategic customers to our new CTC platform as
well as the fulfillment of a major trailer retrofit program, all of
which are under recurring subscription contracts. In addition, we
continued to see ongoing orders globally in support of the 3G-to-4G
transition, but the persistent component shortages in the supply
chain have limited our ability to fully ship against our
backlog."
Second Quarter Fiscal Year 2022 Financial Overview
- Total revenue increased 6% from the prior year quarter to
$79 million.
- Software and Subscription Services (S&SS) revenue was a
record $41 million, representing 52%
of consolidated revenue, which was up 24% from the prior year
quarter.
- Telematics Products revenue was $38
million, down 16% sequentially as supply chain shortages
affected shipments despite continuing strong demand from customers
engaged in the 3G-to-4G transition.
- Sales to its largest customer were $14.0
million, up 2% from the prior-year quarter.
- Gross margin was 42%, an increase of 150 basis points
sequentially due to S&SS revenue growth and product mix.
- GAAP net loss from continuing operations was $5.4 million, or a loss of $0.15 per share.
- Adjusted basis non-GAAP net income was $2.9 million, or $0.08 per diluted share.
- Adjusted EBITDA was $8.3 million,
or 11% of revenue compared to Adjusted EBITDA of $5.0 million, or 7% of revenue in the prior
year.
- Total S&SS subscribers were 988,640, a 4% increase from the
prior-year quarter, excluding the Automotive Vehicle Finance
business.
- Ended the quarter with $101.1
million in cash and cash equivalents.
Other Business and Recent Highlights
- CalAmp's LoJack® Italia subsidiary launched CalAmp iOn™ in
Italy, a fully integrated fleet
and asset management solution that helps transportation,
industrial, government, commercial and service fleet operators
reduce costs, increase operational efficiency and improve fleet
safety.
- Teamed up with Hyundai Translead to launch HT LinkSense, which
includes CalAmp's edge-to-cloud smart trailer solution to offer
fleet managers a ground-breaking, open-platform transportation and
logistics solution with real-time, granular visibility into their
trailer health and cargo status.
- Announced the release of its new iOn Xtreme Temperature Tag for
tracking and monitoring shipments of pharmaceuticals, vaccines,
biological materials and liquid nitrogen.
Summary Financial
Information From Continuing Operations:
(In thousands except
per share amounts)
|
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
|
|
August
31,
|
|
|
August
31,
|
|
Description
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Software &
Subscription Services (S&SS)
|
|
$
|
41,434
|
|
|
$
|
33,440
|
|
|
$
|
76,477
|
|
|
$
|
61,213
|
|
Telematics
Products
|
|
|
37,577
|
|
|
|
40,957
|
|
|
|
82,208
|
|
|
|
86,915
|
|
|
|
$
|
79,011
|
|
|
$
|
74,397
|
|
|
$
|
158,685
|
|
|
$
|
148,128
|
|
Gross
margin
|
|
|
42
|
%
|
|
|
37
|
%
|
|
|
41
|
%
|
|
|
38
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(5,425)
|
|
|
$
|
(7,610)
|
|
|
$
|
(11,425)
|
|
|
$
|
(14,198)
|
|
Net loss per diluted
share
|
|
$
|
(0.15)
|
|
|
$
|
(0.22)
|
|
|
$
|
(0.33)
|
|
|
$
|
(0.42)
|
|
Non-GAAP
measures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted basis net
income (loss)
|
|
$
|
2,903
|
|
|
$
|
(591)
|
|
|
$
|
5,849
|
|
|
$
|
2,379
|
|
Adjusted basis net
income (loss) per diluted share
|
|
$
|
0.08
|
|
|
$
|
(0.02)
|
|
|
$
|
0.16
|
|
|
$
|
0.07
|
|
Adjusted
EBITDA
|
|
$
|
8,301
|
|
|
$
|
5,048
|
|
|
$
|
16,686
|
|
|
$
|
13,339
|
|
Adjusted EBITDA
margin
|
|
|
11
|
%
|
|
|
7
|
%
|
|
|
11
|
%
|
|
|
9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
August
31,
|
|
|
February
28,
|
|
|
|
|
|
|
|
|
|
Description
|
|
2021
|
|
|
2021
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
101,051
|
|
|
$
|
94,624
|
|
|
|
|
|
|
|
|
|
Working
capital
|
|
|
105,752
|
|
|
|
103,267
|
|
|
|
|
|
|
|
|
|
Deferred
revenue
|
|
|
47,533
|
|
|
|
52,817
|
|
|
|
|
|
|
|
|
|
Total debt (carrying
value)
|
|
|
189,047
|
|
|
|
186,471
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
August
31,
|
|
|
August
31,
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
|
2020
|
|
|
|
|
|
|
|
|
|
S&SS
Supplemental Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
S&SS TTM
recurring revenue
|
|
$
|
94,173
|
|
|
$
|
95,697
|
|
|
|
|
|
|
|
|
|
Less: Automotive
vehicle finance and other
|
|
|
(9,067)
|
|
|
|
(10,181)
|
|
|
|
|
|
|
|
|
|
Core S&SS TTM
recurring revenue
|
|
$
|
85,106
|
|
|
$
|
85,516
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
S&SS remaining
contractual performance obligation
|
|
$
|
141,197
|
|
|
$
|
129,806
|
|
|
|
|
|
|
|
|
|
Less: Automotive
vehicle finance and other
|
|
|
(4,911)
|
|
|
|
(11,896)
|
|
|
|
|
|
|
|
|
|
Core S&SS
remaining contractual performance obligation
|
|
$
|
136,286
|
|
|
$
|
117,910
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total S&SS
subscribers
|
|
|
1,233
|
|
|
|
1,322
|
|
|
|
|
|
|
|
|
|
Less: Automotive
vehicle finance
|
|
|
(244)
|
|
|
|
(376)
|
|
|
|
|
|
|
|
|
|
Core S&SS
subscribers
|
|
|
989
|
|
|
|
946
|
|
|
|
|
|
|
|
|
|
Third Quarter Fiscal 2022 Business Outlook
The Company is maintaining its policy of not providing quarterly
guidance as visibility into product shipments still remains
uncertain due to global component supply shortages.
Conference Call and Webcast
CalAmp is hosting a conference call for analysts and investors
to discuss its second quarter fiscal year 2022 results at
2:00 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 #1638304. Following the call, an audio replay
will also be available by calling 800-585-8367 or +1-416-621-4642
and entering the Conference #1638304. The audio replay will be
available through October 1,
2021.
About CalAmp
CalAmp (Nasdaq: CAMP) is a connected intelligence company that
helps people and businesses work smarter. We partner with
transportation and logistics, industrial equipment, government and
automotive industries to deliver insights that help businesses make
the right decisions. Our applications, platform and smart devices
allow them to track, monitor and recover their vital assets with
real-time visibility that reduces costs, maximizes productivity and
improves safety. Headquartered in Irvine,
California, CalAmp has 22 million products installed and
approximately 1.2 million software and services subscribers
worldwide. For more information, visit calamp.com, or LinkedIn,
Facebook, Twitter, YouTube or CalAmp Blog.
Forward-Looking Statements
This announcement contains forward-looking statements (including
within the meaning of Section 21E of the U.S. Securities Exchange
Act of 1934, as amended, and Section 27A of the U.S. Securities Act
of 1933, as amended) concerning CalAmp. These statements include,
but are not limited to, statements that address our expected future
business and financial performance and statements about (i) our
plans, objectives and intentions with respect to future operations,
services and products, (ii) our competitive position and
opportunities, and (iii) other statements identified by words such
as such as "may", "will", "expect", "intend", "plan", "potential",
"believe", "seek", "could", "estimate", "judgment", "targeting",
"should", "anticipate", "predict" "project", "aim", "goal", and
similar words, phrases or expressions. These forward-looking
statements are based on management's current expectations and
beliefs, as well as assumptions made by, and information currently
available to, management, current market trends and market
conditions, and involve risks and uncertainties, many of which are
outside of our control, and which may cause actual results to
differ materially from those contained in forward-looking
statements. Accordingly, you should not place undue reliance
on such statements. Particular uncertainties that could materially
affect future results include any risks associated with global
economic conditions and concerns; the effects of global outbreaks
of pandemics or contagious diseases or fear of such outbreaks, such
as the recent coronavirus (COVID-19) pandemic; disruptions in
sales, operations, relationships with customers, suppliers,
employees, and consumers given our sale of LoJack North America
operations; our ability to successfully and timely accomplish our
transformation to a SaaS solutions provider; our transition out of
the automotive vehicle financing business; competitive pressures;
pricing declines; demand for our telematics products; rates of
growth in our target markets; prolonged disruptions of our contract
manufacturers' facilities or other significant operations; force
majeure or force-majeure-like events at our contract
manufacturers' facilities including component shortages; the
ongoing diversification of our global supply chain; our dependence
on outsourced service providers for certain key business services
and their ability to execute to our requirements; our ability to
improve gross margin; cost-containment measures; legislative,
trade, tariff, and regulatory actions; integration, unexpected
charges or expenses in connection with acquisitions; the impact of
legal proceedings and compliance risks; implementation of our new
ERP system; the impact on our business and reputation from
information technology system failures, network disruptions,
cyber-attacks, or losses or unauthorized access to, or release of,
confidential information; the ability of the Company to comply
with laws and regulations regarding data protection; our
ability to protect our intellectual property and the
unpredictability of any associated litigation expenses; any
expenses or reputational damage associated with resolving customer
product and warranty and indemnification claims; our ability to
sell to new types of customers and to keep pace with technological
advances; market acceptance of the end products into which our
products are designed; and other events and trends on a national,
regional and global scale, including those of a political,
economic, business, competitive, and regulatory nature. More
information on these risks and other potential factors that could
affect our financial results is included in our filings with
the U.S. Securities and Exchange Commission ("SEC"), including in
the "Risk Factors" and "Management's Discussion and Analysis of
Financial Condition and Results of Operations" sections of our most
recently filed periodic reports on Form 10-K and Form 10-Q and
subsequent filings, which you may obtain for free at the SEC's
website at http://www.sec.gov. We undertake no intent or
obligation to publicly update or revise any of
these forward-looking statements, whether as a result of new
information, future events or otherwise, which speak as of their
respective dates except as required by law.
Non-GAAP Financial Measures
"GAAP" refers to financial information presented in accordance
with U.S. Generally Accepted Accounting Principles. This
announcement includes non-GAAP financial measures, as defined in
Regulation G promulgated by the SEC. We believe that our
presentation of non-GAAP financial measures provides useful
supplementary information to investors. These non-GAAP financial
measures are provided in addition to, and not as a substitute for
measures of financial performance prepared in accordance with
GAAP.
In this announcement, we report the non-GAAP financial measures
of Adjusted basis net income, Adjusted basis net income per diluted
share, Adjusted EBITDA (earnings before investment income, interest
expense, taxes, depreciation, amortization, stock-based
compensation, acquisition and integration expenses, non-cash costs
and expenses arising from purchase accounting adjustments,
litigation provisions, impairment losses and certain other
adjustments as detailed in the accompanying non-GAAP
reconciliation), and Adjusted EBITDA margin. Adjusted basis net
income (loss) excludes the impact of intangible asset amortization
expense, stock-based compensation, non-cash interest expense,
acquisition and integration expenses, non-cash costs and expenses
arising from purchase accounting adjustments, litigation
provisions, income tax provision adjustments, impairment losses and
certain other adjustments as shown in the non-GAAP reconciliation
provided in the table at the end of this announcement. We use
these non-GAAP financial measures to provide investors with
additional information about our financial performance and future
prospects of our core business activities. Internally, these
non-GAAP measures are significant measures used by management for
purposes of evaluating our core operating performance, establishing
internal budgets, calculating return on investment for development
programs and growth initiatives, comparing performance with
internal forecasts and targeted business models, strategic
planning, evaluating and valuing potential acquisition candidates
and how their operations compare to our operations, and
benchmarking performance externally against our competitors. We
believe this non-GAAP financial information provides additional
insight into our ongoing performance and have therefore chosen to
provide this information to investors to help them evaluate our
results of ongoing operations and enable additional
period-to-period comparisons. The presentation of these and other
similar items in our non-GAAP financial results should not be
interpreted as implying that these items are non-recurring,
infrequent, or unusual.
CalAmp, LoJack, TRACKER, Here Comes The Bus, Bus Guardian,
iOn Vision, CrashBoxx and associated logos are among the
trademarks of CalAmp and/or its affiliates in the United States, certain other countries
and/or the EU. Spireon acquired the LoJack® North America Stolen
Vehicle Recovery (SVR) business from CalAmp and holds an exclusive
license to the LoJack mark in the United
States and Canada. Any
other trademarks or trade names mentioned are the property of their
respective owners.
CALAMP
CORP.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in
thousands, except per share amounts)
(Unaudited)
|
|
|
|
Three Months Ended
|
|
|
Six Months
Ended
|
|
|
|
August
31,
|
|
|
August
31,
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Revenues
|
|
$
|
79,011
|
|
|
$
|
74,397
|
|
|
$
|
158,685
|
|
|
$
|
148,128
|
|
Cost of
revenues
|
|
|
45,641
|
|
|
|
46,935
|
|
|
|
92,868
|
|
|
|
91,561
|
|
Gross
profit
|
|
|
33,370
|
|
|
|
27,462
|
|
|
|
65,817
|
|
|
|
56,567
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
7,729
|
|
|
|
6,573
|
|
|
|
14,669
|
|
|
|
12,509
|
|
Selling and
marketing
|
|
|
12,047
|
|
|
|
11,476
|
|
|
|
24,509
|
|
|
|
21,913
|
|
General and
administrative
|
|
|
13,198
|
|
|
|
12,177
|
|
|
|
25,884
|
|
|
|
23,941
|
|
Intangible asset
amortization
|
|
|
1,394
|
|
|
|
1,190
|
|
|
|
2,647
|
|
|
|
2,366
|
|
Restructuring
|
|
|
—
|
|
|
|
144
|
|
|
|
336
|
|
|
|
2,017
|
|
Impairment
losses
|
|
|
—
|
|
|
|
286
|
|
|
|
—
|
|
|
|
286
|
|
Total operating
expenses
|
|
|
34,368
|
|
|
|
31,846
|
|
|
|
68,045
|
|
|
|
63,032
|
|
Operating
loss
|
|
|
(998)
|
|
|
|
(4,384)
|
|
|
|
(2,228)
|
|
|
|
(6,465)
|
|
Non-operating income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
income
|
|
|
420
|
|
|
|
680
|
|
|
|
1,068
|
|
|
|
698
|
|
Interest
expense
|
|
|
(3,804)
|
|
|
|
(3,857)
|
|
|
|
(7,653)
|
|
|
|
(7,934)
|
|
Other income
(expense), net
|
|
|
(710)
|
|
|
|
217
|
|
|
|
(1,986)
|
|
|
|
9
|
|
Total non-operating
expenses
|
|
|
(4,094)
|
|
|
|
(2,960)
|
|
|
|
(8,571)
|
|
|
|
(7,227)
|
|
Loss from continuing
operations before income taxes
|
|
|
(5,092)
|
|
|
|
(7,344)
|
|
|
|
(10,799)
|
|
|
|
(13,692)
|
|
Income tax provision
from continuing operations
|
|
|
(333)
|
|
|
|
(266)
|
|
|
|
(626)
|
|
|
|
(506)
|
|
Net loss from
continuing operations
|
|
|
(5,425)
|
|
|
|
(7,610)
|
|
|
|
(11,425)
|
|
|
|
(14,198)
|
|
Net income (loss)
from discontinued operations, net of tax
|
|
|
—
|
|
|
|
(1,868)
|
|
|
|
4,052
|
|
|
|
(9,702)
|
|
Net loss
|
|
$
|
(5,425)
|
|
|
$
|
(9,478)
|
|
|
$
|
(7,373)
|
|
|
$
|
(23,900)
|
|
Loss per share -
continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.15)
|
|
|
$
|
(0.22)
|
|
|
$
|
(0.33)
|
|
|
|
(0.42)
|
|
Diluted
|
|
$
|
(0.15)
|
|
|
$
|
(0.22)
|
|
|
$
|
(0.33)
|
|
|
$
|
(0.42)
|
|
Income (loss) per
share - discontinued operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
—
|
|
|
$
|
(0.06)
|
|
|
$
|
0.12
|
|
|
$
|
(0.28)
|
|
Diluted
|
|
$
|
—
|
|
|
$
|
(0.06)
|
|
|
$
|
0.12
|
|
|
$
|
(0.28)
|
|
Loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.15)
|
|
|
$
|
(0.28)
|
|
|
$
|
(0.21)
|
|
|
$
|
(0.70)
|
|
Diluted
|
|
$
|
(0.15)
|
|
|
$
|
(0.28)
|
|
|
$
|
(0.21)
|
|
|
$
|
(0.70)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
35,152
|
|
|
|
34,256
|
|
|
|
34,998
|
|
|
|
34,140
|
|
Diluted
|
|
|
35,152
|
|
|
|
34,256
|
|
|
|
34,998
|
|
|
|
34,140
|
|
CALAMP
CORP.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Amounts in
thousands)
(Unaudited)
|
|
|
|
August
31,
|
|
|
February
28,
|
|
|
|
2021
|
|
|
2021
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
101,051
|
|
|
$
|
94,624
|
|
Accounts receivable,
net
|
|
|
62,293
|
|
|
|
63,325
|
|
Inventories
|
|
|
17,161
|
|
|
|
23,663
|
|
Prepaid expenses and
other current assets
|
|
|
24,862
|
|
|
|
24,804
|
|
Current assets of
discontinued operations
|
|
|
—
|
|
|
|
7,872
|
|
Total current
assets
|
|
|
205,367
|
|
|
|
214,288
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
38,742
|
|
|
|
41,081
|
|
Operating lease
right-of-use assets
|
|
|
14,131
|
|
|
|
14,273
|
|
Deferred income tax
assets
|
|
|
4,529
|
|
|
|
4,889
|
|
Goodwill
|
|
|
94,716
|
|
|
|
94,617
|
|
Other intangible
assets, net
|
|
|
34,911
|
|
|
|
37,488
|
|
Other
assets
|
|
|
26,793
|
|
|
|
27,169
|
|
Total
assets
|
|
$
|
419,189
|
|
|
$
|
433,805
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Current portion of
long-term debt
|
|
$
|
3,386
|
|
|
$
|
4,317
|
|
Accounts
payable
|
|
|
30,518
|
|
|
|
35,767
|
|
Accrued payroll and
employee benefits
|
|
|
12,131
|
|
|
|
12,761
|
|
Deferred
revenue
|
|
|
31,401
|
|
|
|
32,924
|
|
Other current
liabilities
|
|
|
22,179
|
|
|
|
17,380
|
|
Current liabilities of
discontinued operations
|
|
|
—
|
|
|
|
4,096
|
|
Total current
liabilities
|
|
|
99,615
|
|
|
|
107,245
|
|
|
|
|
|
|
|
|
|
|
Long-term debt, net
of current portion
|
|
|
185,661
|
|
|
|
182,154
|
|
Operating lease
liabilities
|
|
|
15,986
|
|
|
|
17,061
|
|
Other non-current
liabilities
|
|
|
27,615
|
|
|
|
30,487
|
|
Non-current
liabilities of discontinued operations
|
|
|
—
|
|
|
|
1,773
|
|
Total
liabilities
|
|
|
328,877
|
|
|
|
338,720
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
Common
stock
|
|
|
359
|
|
|
|
352
|
|
Additional paid-in
capital
|
|
|
236,002
|
|
|
|
233,692
|
|
Accumulated
deficit
|
|
|
(145,347)
|
|
|
|
(137,974)
|
|
Accumulated other
comprehensive loss
|
|
|
(702)
|
|
|
|
(985)
|
|
Total stockholders'
equity
|
|
|
90,312
|
|
|
|
95,085
|
|
Total liabilities and
stockholders' equity
|
|
$
|
419,189
|
|
|
$
|
433,805
|
|
CALAMP
CORP.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in
thousands)
(Unaudited)
|
|
|
|
Six Months
Ended
|
|
|
|
August
31,
|
|
|
|
2021
|
|
|
2020
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(7,373)
|
|
|
$
|
(23,900)
|
|
Less: Net income
(loss) from discontinued operations, net of tax
|
|
|
4,052
|
|
|
|
(9,702)
|
|
Net loss from
continuing operations
|
|
|
(11,425)
|
|
|
|
(14,198)
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
8,472
|
|
|
|
8,496
|
|
Intangible asset
amortization
|
|
|
2,647
|
|
|
|
2,366
|
|
Stock-based
compensation
|
|
|
5,409
|
|
|
|
5,720
|
|
Amortization of debt
issuance costs and discount
|
|
|
5,191
|
|
|
|
5,219
|
|
Noncash operating
lease cost
|
|
|
1,691
|
|
|
|
1,385
|
|
Revenue assigned to
factors
|
|
|
(2,601)
|
|
|
|
(3,349)
|
|
Deferred tax assets,
net
|
|
|
250
|
|
|
|
(105)
|
|
Other
|
|
|
200
|
|
|
|
587
|
|
Changes in operating
assets and liabilities of continuing operations
|
|
|
1,012
|
|
|
|
9,393
|
|
Net cash provided by
operating activities - continuing operations
|
|
|
10,846
|
|
|
|
15,514
|
|
Net cash used in
operating activities - discontinued operations
|
|
|
(395)
|
|
|
|
(1,393)
|
|
NET CASH PROVIDED BY
OPERATING ACTIVITIES
|
|
|
10,451
|
|
|
|
14,121
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Proceeds from
maturities and sale of marketable securities
|
|
|
—
|
|
|
|
6,264
|
|
Purchases of
marketable securities
|
|
|
—
|
|
|
|
(6,264)
|
|
Capital
expenditures
|
|
|
(6,569)
|
|
|
|
(5,740)
|
|
Net cash used in
investing activities - continuing operations
|
|
|
(6,569)
|
|
|
|
(5,740)
|
|
Net cash provided by
(used in) investing activities - discontinued operations
|
|
|
6,616
|
|
|
|
(1,823)
|
|
NET CASH PROVIDED BY
(USED IN) INVESTING ACTIVITIES
|
|
|
47
|
|
|
|
(7,563)
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Proceeds from Paycheck
Protection Program Loan
|
|
|
—
|
|
|
|
10,000
|
|
Repayment of Paycheck
Protection Program Loan
|
|
|
—
|
|
|
|
(10,000)
|
|
Proceeds from
revolving credit facility, net of issuance costs
|
|
|
—
|
|
|
|
20,000
|
|
Repayment of 2020
Convertible Notes
|
|
|
—
|
|
|
|
(27,599)
|
|
Payment of issuance
costs on revolving credit facility
|
|
|
—
|
|
|
|
(56)
|
|
Taxes paid related to
net share settlement of vested equity awards
|
|
|
(4,017)
|
|
|
|
(1,485)
|
|
Proceeds from exercise
of stock options and contributions to ESPP
|
|
|
900
|
|
|
|
909
|
|
NET CASH USED IN
FINANCING ACTIVITIES
|
|
|
(3,117)
|
|
|
|
(8,231)
|
|
|
|
|
|
|
|
|
|
|
EFFECT OF EXCHANGE
RATE CHANGES ON CASH AND CASH EQUIVALENTS
|
|
|
(954)
|
|
|
|
1,414
|
|
Net change in cash
and cash equivalents
|
|
|
6,427
|
|
|
|
(259)
|
|
Cash and cash
equivalents at beginning of period
|
|
|
94,624
|
|
|
|
107,404
|
|
Cash and cash
equivalents at end of period
|
|
$
|
101,051
|
|
|
$
|
107,145
|
|
CALAMP CORP.
RECONCILIATION OF NON-GAAP MEASURES TO GAAP
(Unaudited)
GAAP refers to financial information presented in accordance
with U.S. Generally Accepted Accounting Principles. This
announcement includes historical non-GAAP financial measures,
as defined in Regulation G promulgated by the Securities and
Exchange Commission. We believe that our presentation of
historical non-GAAP financial measures provides useful
supplementary information to investors. The presentation of
historical non-GAAP financial measures is not meant to be
considered in isolation from or as a substitute for results
prepared in accordance with GAAP.
In this announcement, we report the non-GAAP financial measures
of Adjusted basis net income, Adjusted basis net income per diluted
share, Adjusted EBITDA (earnings before investment income,
interest expense, taxes, depreciation,
amortization, stock-based compensation and other adjustments
as identified below), and Adjusted EBITDA margin. We use these
non-GAAP financial measures to provide investors with an
overall understanding of the financial performance and future
prospects of our core business activities. Specifically, we
believe that the use of these non-GAAP measures facilitates the
comparison of results of core business operations between current
and past periods.
The reconciliation of GAAP basis net loss to Adjusted basis
(non-GAAP) net income (loss) is as follows (in thousands except per
share amounts):
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
|
|
August
31,
|
|
|
August
31,
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
GAAP basis net
loss
|
|
$
|
(5,425)
|
|
|
$
|
(9,478)
|
|
|
$
|
(7,373)
|
|
|
$
|
(23,900)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (income) loss
from discontinued operations, net of tax
|
|
|
—
|
|
|
|
1,868
|
|
|
|
(4,052)
|
|
|
|
9,702
|
|
Intangible asset
amortization
|
|
|
1,394
|
|
|
|
1,190
|
|
|
|
2,647
|
|
|
|
2,366
|
|
Stock-based
compensation
|
|
|
2,937
|
|
|
|
2,473
|
|
|
|
5,409
|
|
|
|
4,845
|
|
Non-cash interest
expense
|
|
|
2,585
|
|
|
|
2,466
|
|
|
|
5,191
|
|
|
|
5,219
|
|
GAAP basis income tax
provision
|
|
|
333
|
|
|
|
266
|
|
|
|
626
|
|
|
|
506
|
|
Litigation and
non-recurring legal expenses
|
|
|
471
|
|
|
|
170
|
|
|
|
1,119
|
|
|
|
963
|
|
Restructuring
|
|
|
—
|
|
|
|
144
|
|
|
|
336
|
|
|
|
2,017
|
|
Costs incurred in
transition of LoJack North America business to acquiror
(b)
|
|
|
482
|
|
|
|
—
|
|
|
|
1,715
|
|
|
|
—
|
|
Other
|
|
|
321
|
|
|
|
460
|
|
|
|
626
|
|
|
|
941
|
|
Adjusted basis income
before income taxes
|
|
|
3,098
|
|
|
|
(441)
|
|
|
|
6,244
|
|
|
|
2,659
|
|
Income tax provision
(non-GAAP basis) (a)
|
|
|
(195)
|
|
|
|
(150)
|
|
|
|
(395)
|
|
|
|
(280)
|
|
Adjusted basis net
income (loss)
|
|
$
|
2,903
|
|
|
$
|
(591)
|
|
|
$
|
5,849
|
|
|
$
|
2,379
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted basis net
income (loss) per diluted share
|
|
$
|
0.08
|
|
|
$
|
(0.02)
|
|
|
$
|
0.16
|
|
|
$
|
0.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding on a diluted basis
|
|
|
36,122
|
|
|
|
34,256
|
|
|
|
36,083
|
|
|
|
34,304
|
|
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
|
|
|
Six Months
Ended
|
|
|
|
August
31,
|
|
|
August
31,
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP basis net
loss
|
|
$
|
(5,425)
|
|
|
$
|
(9,478)
|
|
|
$
|
(7,373)
|
|
|
$
|
(23,900)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (income) loss
from discontinued operations, net of tax
|
|
|
—
|
|
|
|
1,868
|
|
|
|
(4,052)
|
|
|
|
9,702
|
|
Investment
income
|
|
|
(420)
|
|
|
|
(680)
|
|
|
|
(1,068)
|
|
|
|
(698)
|
|
Interest
expense
|
|
|
3,804
|
|
|
|
3,857
|
|
|
|
7,653
|
|
|
|
7,934
|
|
Income tax
provision
|
|
|
333
|
|
|
|
266
|
|
|
|
626
|
|
|
|
506
|
|
Depreciation and
amortization
|
|
|
5,636
|
|
|
|
5,464
|
|
|
|
11,119
|
|
|
|
10,862
|
|
Stock-based
compensation
|
|
|
2,937
|
|
|
|
2,473
|
|
|
|
5,409
|
|
|
|
4,845
|
|
Litigation and
non-recurring legal expenses
|
|
|
471
|
|
|
|
170
|
|
|
|
1,119
|
|
|
|
963
|
|
Restructuring
|
|
|
—
|
|
|
|
144
|
|
|
|
336
|
|
|
|
2,017
|
|
Costs incurred in
transition of LoJack North America business to acquiror
(b)
|
|
|
482
|
|
|
|
—
|
|
|
|
1,715
|
|
|
|
—
|
|
Other
|
|
|
483
|
|
|
|
964
|
|
|
|
1,202
|
|
|
|
1,108
|
|
Adjusted
EBITDA
|
|
$
|
8,301
|
|
|
$
|
5,048
|
|
|
$
|
16,686
|
|
|
$
|
13,339
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other favorable
(unfavorable) impacts to Adjusted basis net income and Adjusted
EBITDA (c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred revenue
purchase accounting adjustment
|
|
$
|
(344)
|
|
|
$
|
(816)
|
|
|
$
|
(801)
|
|
|
$
|
(1,757)
|
|
Resolution of a
product performance matter
|
|
|
—
|
|
|
|
(1,400)
|
|
|
|
—
|
|
|
|
(1,400)
|
|
Inventory excess and
obsolescence
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(596)
|
|
Total other favorable
(unfavorable) impacts to Adjusted EBITDA
|
|
$
|
(344)
|
|
|
$
|
(2,216)
|
|
|
$
|
(801)
|
|
|
$
|
(3,753)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
79,011
|
|
|
$
|
74,397
|
|
|
$
|
158,685
|
|
|
$
|
148,128
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
margin
|
|
|
11
|
%
|
|
|
7
|
%
|
|
|
11
|
%
|
|
|
9
|
%
|
|
|
(a)
|
The non-GAAP income
tax provision represents cash taxes paid or payable for the period
after giving effect to the utilization of net operating losses and
tax credit carryforwards.
|
(b)
|
Costs incurred in
transition of business to acquiror are attributable to the wind
down and transfer of the LoJack North America business to
Spireon.
|
(c)
|
Other favorable
(unfavorable) impacts to Adjusted basis net income and Adjusted
EBITDA represent financial impacts that cannot be included in these
Non-GAAP measures, but management believes can provide insights
into underlying operational earnings for the periods presented
above. These items include deferred revenue purchase accounting
adjustments resulting from business acquisitions which reduces
revenue and gross profit, resolution of a product performance
matter with a customer, and inventories related to the automotive
vehicle finance business that are obsolete or in excess of demand
forecast.
|
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SOURCE CalAmp