Print Page  Close Window
Press Releases
CalAmp Reports Fourth Quarter and Fiscal Year 2017 Financial Results

IRVINE, Calif., April 18, 2017 /PRNewswire/ --

  • Q4 revenue up 22% year-over-year; FY 2017 revenue up 25% year-over-year
  • Record fiscal 2017 international revenue at $91 million, up 90% year-over-year
  • Q4 gross margin was 41.6%, up from 38.9% in the prior year

CalAmp (NASDAQ: CAMP), a leading provider of Internet of Things (IoT) enablement solutions, today reported results for its fourth quarter and fiscal year ended February 28, 2017.

Revenue for the fiscal 2017 fourth quarter was $86.1 million, an increase of 22% from the fourth quarter of fiscal 2016, with LoJack contributing $27.8 million.  Excluding last year's revenue of the Satellite business, which ceased operations effective August 31, 2016, revenue in the latest quarter was up 46% from $58.9 million in the fourth quarter of fiscal 2016.

Michael Burdiek, CalAmp's President and Chief Executive Officer, said, "As we close out fiscal 2017, we are pleased with the progress we have made on a number of financial and business objectives, which have helped set the stage for long-term growth and profitability.  We completed the integration of LoJack, expanded our product and service offerings, and made significant progress with international expansion. In addition, we are pleased that fourth quarter revenue from MRM telematics products grew for the second consecutive quarter, reaching the highest revenue level in over a year."

Gross profit for the fourth quarter of fiscal 2017 was $35.8 million, an increase of $8.2 million over the same quarter last year. Gross margin was 41.6% in the fourth quarter of fiscal 2017, up from 38.9% in the fourth quarter of fiscal 2016.  

The GAAP-basis net loss in the fourth quarter of fiscal 2017 was ($3.5) million, or ($0.10) per diluted share, compared to net income of $5.5 million, or $0.15 per diluted share, in the fiscal 2016 fourth quarter.  GAAP-basis fourth quarter operating results were impacted by a $6.0 million pre-tax charge, or $0.11 per diluted share, recorded for the recent court ruling in the Omega patent infringement case. Non-GAAP adjusted basis net income for the fiscal 2017 fourth quarter was $9.9 million, or $0.28 per diluted share, compared to non-GAAP adjusted basis net income of $11.7 million, or $0.32 per diluted share, in the fourth quarter of fiscal 2016.    

Adjusted EBITDA for the fourth quarter of fiscal 2017 was $12.8 million and Adjusted EBITDA margin was 14.9%, compared to Adjusted EBITDA of $13.7 million and Adjusted EBITDA margin of 19.3% in the fourth quarter of fiscal 2016.

Revenue for fiscal year 2017 was a record $351.1 million, an increase of 25% from fiscal 2016, and included revenue of $117.5 million from LoJack products and services.  Excluding the discontinued Satellite business, fiscal 2017 revenue was up 39% year over year.

Gross profit for fiscal 2017 was $143.4 million, an increase of $40.4 million over last year. Gross margin was 40.8% in fiscal 2017, up from 36.7% in fiscal 2016. 

The GAAP-basis net loss in fiscal 2017 was ($7.2) million, or ($0.20) per diluted share, compared to net income of $16.9 million, or $0.46 per diluted share, in fiscal 2016.  Non-GAAP adjusted basis net income for fiscal 2017 was $38.6 million, or $1.06 per diluted share, compared to non-GAAP adjusted basis net income of $42.4 million, or $1.15 per diluted share, in fiscal 2016.   

Adjusted EBITDA for fiscal 2017 was $49.4 million and Adjusted EBITDA margin was 14.1%, compared to Adjusted EBITDA of $49.0 million and Adjusted EBITDA margin of 17.5% in fiscal 2017.

As of February 28, 2017, the company had total cash and marketable securities of $100.4 million and total debt outstanding of $146.8 million, which is the carrying amount of the company's 1.625% convertible notes in the face amount of $172.5 million. Net cash provided by operating activities was $6.0 million during the fourth quarter and $25.8 million for fiscal 2017 as a whole.

During fiscal 2017, the company purchased and retired 1.8 million shares of its common stock at an aggregate cost of $25 million pursuant to a stock repurchase plan adopted in June 2016.   Of these amounts, 0.2 million shares were purchased in the fiscal 2017 fourth quarter at an aggregate cost of $3.1 million

Business and Financial Highlights

  • Fiscal 2017 international revenue was up 90% year-over-year to $91 million, from $48 million in the prior year.
  • Fiscal 2017 recurring revenue was $59.4 million, up 39% year-over-year.
  • In Q4 MRM telematics product sales grew 4% sequentially and 13% year-over-year, reaching the highest revenue level of the past five quarters.
  • In January 2017, CalAmp announced the nationwide availability of the first LoJack-branded telematics services, LotSmart and SureDrive, a significant milestone in the evolution of this venerable Stolen Vehicle Recovery brand.
  • In March 2017, the company also announced the availability of AssetOutlook™, developed on CalAmp's Telematics Cloud service platform as a customized solution for the construction industry to enhance equipment management, improve operating efficiency and help prevent unauthorized use and theft.

Business Outlook
The outlook for the fiscal 2018 first quarter ending May 31, 2017 is:

  • Consolidated revenue in the range of $84 to $90 million.
  • GAAP basis net income in the range of $0.01 to $0.09 per diluted share and non-GAAP net income in the range of $0.24 to $0.32 per diluted share.
  • Adjusted EBITDA in the range of $11 to $14 million.

Conference Call and Webcast  
CalAmp is hosting a conference call for analysts and investors to discuss its fourth quarter and fiscal year 2017 results and outlook for its fiscal 2018 first quarter at 1:30 p.m. Pacific Time today.  Participants can listen in via webcast by visiting the Investor Relations section of CalAmp's website at www.calamp.com. Please go to the website at least 15 minutes early to register, download and install any necessary audio software. A replay of the webcast will be available for 30 days after the call.  The conference call can also be accessed by dialing 855-302-8830 (+1-330-871-6073 for international callers) and using the Conference ID# 94872270. 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# 94872270. The audio replay will be available through April 25, 2017.

About CalAmp
CalAmp (NASDAQ: CAMP) is a pure-play pioneer in the connected vehicle and broader Industrial IoT marketplace. The company's extensive portfolio of intelligent communications devices, robust and scalable telematics cloud services, and targeted software applications streamline otherwise complex IoT deployments. These solutions enable customers to optimize their operations by collecting, monitoring and efficiently reporting business-critical data and desired intelligence from high-value mobile and remote assets. CalAmp is headquartered in Irvine, California and has been publicly traded since 1983. For more information, please visit www.calamp.com.

Forward-Looking Statements
Statements in this press release that are not historical in nature are forward-looking statements that, within the meaning of the federal securities laws including the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, involve known and unknown risks and uncertainties. Words such as "may", "will", "expect", "intend", "plan", "believe", "seek", "could", "estimate", "judgment", "targeting", "should", "anticipate", "goal" and variations of these words and similar expressions, are intended to identify forward-looking statements. The forward-looking statements in this press release address a variety of subjects, including the outlook for our fiscal 2018 first quarter operating results. Readers are cautioned that actual results could differ materially from those implied by such forward-looking statements due to a variety of factors, including global economic conditions, competitive pressures and pricing declines, intellectual property infringement claims, and other risks or uncertainties that are described in our filings with the Securities and Exchange Commission. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurances that our expectations will be attained. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Measures
"GAAP" refers to financial information presented in accordance with U.S. Generally Accepted Accounting Principles. This press release includes non-GAAP financial measures, as defined in Regulation G promulgated by the Securities and Exchange Commission. CalAmp believes that its presentation of non-GAAP financial measures provides useful supplementary information to investors. The presentation of non-GAAP financial measures is not meant to be considered in isolation from or as a substitute for results prepared in accordance with GAAP.

In this press release, CalAmp reports the non-GAAP financial measures of Adjusted Basis net income, Adjusted Basis net income per diluted share, Adjusted EBITDA (Earnings Before Investment Income, Interest Expense, Taxes, Depreciation, Amortization, Stock-Based Compensation 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 assets amortization expense, stock-based compensation, acquisition and integration expenses, and certain other adjustments as shown in the non-GAAP reconciliation provided in the table at the end of this press release.  CalAmp uses these non-GAAP financial measures to enhance the investor's overall understanding of the financial performance and future prospects of CalAmp's core business activities. Specifically, CalAmp believes that the use of these non-GAAP measures facilitates the comparison of results of core business operations between its current and past periods.

 

CAL AMP CORP.

CONSOLIDATED INCOME STATEMENTS 

(Unaudited - in thousands except per share amounts)
















Three Months Ended


Year Ended



February 28,


February 29,


February 28,


February 29,



2017


2016


2017


2016














Revenues


$

86,126


$

70,807


$

351,102


$

280,719














Cost of revenues



50,339



43,251



207,750



177,760














Gross profit



35,787



27,556



143,352



102,959














Operating expenses:













  Research and development



4,732



5,122



22,005



19,803

  Selling



12,235



6,060



49,044



23,380

  General and administrative



17,282



10,180



55,901



25,065

  Intangible asset amortization



3,858



1,664



15,061



6,626




38,107



23,026



142,011



74,874














Operating income (loss)



(2,320)



4,530



1,341



28,085














Non-operating income (expense):













  Investment income



582



1,448



1,691



1,871

  Interest expense



(2,519)



(2,415)



(9,896)



(7,595)

  Other income (expense)



73



3



(101)



(20)




(1,864)



(964)



(8,306)



(5,744)














Income (loss) before income taxes and equity in net loss of affiliate



(4,184)



3,566



(6,965)



22,341














Income tax benefit (provision)



978



2,443



1,098



(4,572)














Income (loss) before equity in net  loss of affiliate



(3,206)



6,009



(5,867)



17,769














Equity in net loss of affiliate



(280)



(503)



(1,284)



(829)














Net income (loss)


$

(3,486)


$

5,506


$

(7,151)


$

16,940














Earnings (loss) per share:













  Basic


$

(0.10)


$

0.15


$

(0.20)


$

0.46

  Diluted


$

(0.10)


$

0.15


$

(0.20)


$

0.46














Shares used in computing earnings (loss) per share:













  Basic



35,066



36,607



35,917



36,448

  Diluted



35,066



37,082



35,917



36,950
















BUSINESS SEGMENT INFORMATION

(Unaudited, in thousands)
















Three Months Ended


Year Ended



February 28,


February 29,


February 28,


February 29,



2017


2016


2017


2016










Revenues













  Wireless DataCom


$

86,126


$

58,900


$

336,033


$

241,387

  Satellite



-



11,907



15,069



39,332

    Total revenues


$

86,126


$

70,807


$

351,102


$

280,719














Gross profit 













  Wireless DataCom


$

35,787


$

23,874


$

139,623


$

91,976

  Satellite



-



3,682



3,729



10,983

    Total gross profit


$

35,787


$

27,556


$

143,352


$

102,959














Operating income (loss)













  Wireless DataCom


$

(1,088)


$

5,112


$

8,155


$

26,501

  Satellite



-



2,453



1,547



8,064

  Corporate expenses



(1,232)



(3,035)



(8,361)



(6,480)

    Total operating income (loss)


$

(2,320)


$

4,530


$

1,341


$

28,085

 

CAL AMP CORP.

CONSOLIDATED BALANCE SHEETS

(Unaudited - in thousands)











February 28,


February 29,




2017


2016


                                Assets







Current assets:








  Cash and cash equivalents


$

93,706


$

139,388


  Short-term marketable securities



6,722



88,718


  Accounts receivable, net



67,403



49,432


  Inventories



29,279



16,731


  Prepaid expenses and other current assets



9,595



4,498










       Total current assets



206,705



298,767


















Property, equipment and improvements, net



21,162



11,225










Deferred income tax assets



27,039



30,213










Goodwill



72,980



16,508










Other intangible assets, net



67,223



17,010










Other assets



12,565



10,640












$

407,674


$

384,363










                      Liabilities and Stockholders' Equity








Current liabilities:








  Accounts payable


$

30,266


$

24,938


  Accrued payroll and employee benefits



7,955



6,814


  Deferred revenue



14,662



9,438


  Other current liabilities



23,740



8,375










      Total current liabilities



76,623



49,565










1.625% convertible senior unsecured notes



146,827



139,800


Other non-current liabilities



20,229



5,551










Stockholders' equity:








  Common stock



353



367


  Additional paid-in capital



211,187



229,159


  Accumulated deficit



(47,004)



(39,853)


  Accumulated other comprehensive loss



(541)



(226)










      Total stockholders' equity



163,995



189,447












$

407,674


$

384,363


 


CAL AMP CORP.


CONSOLIDATED CASH FLOW STATEMENTS


(Unaudited - in thousands)














Year Ended





February 28,


February 29,





2017


2016


Cash flows from operating activities:









Net income (loss)


$

(7,151)


$

16,940



Depreciation expense



8,408



3,582



Intangible assets amortization expense



15,061



6,626



Stock-based compensation expense



7,833



5,854



Amortization of convertible debt issue costs and discount



7,027



5,201



Deferred tax assets, net



(2,270)



4,122



Gain on investment in LoJack common stock



-



(1,416)



Equity in net loss of affiliate



1,284



829



Impairment of internal use software



1,364



-



Changes in operating working capital



(5,728)



5,728



Other



(32)



(66)












   Net cash provided by operating activities



25,796



47,400











Cash flows from investing activities:









Proceeds from maturities of marketable securities



114,426



71,991



Purchases of marketable securities



(32,430)



(150,532)



Capital expenditures



(7,962)



(4,317)



Acquisition of Crashboxx



-



(1,500)



Acquisition of LoJack, net of cash acquired



(116,982)



(4,050)



Advances to unconsolidated subsidiary



(2,636)



(2,156)



Other



(2)



(110)












   Net cash used in investing activities



(45,586)



(90,674)











Cash flows from financing activities:









Proceeds from issuance of convertible notes



-



172,500



Payments of debt issuance costs



-



(5,291)



Purchase of convertible note hedges



-



(31,343)



Proceeds from issuance of warrants



-



15,991



Payment of acquisition-related note and contingent consideration



-



(2,037)



Repurchases of common stock



(25,000)



-



Taxes paid related to net share settlement of vested equity awards



(1,780)



(2,625)



Proceeds from exercise of stock options



961



1,283












   Net cash provided (used) by financing activities



(25,819)



148,478











Effect of exchange rate changes on cash



(73)



-











Net change in cash and cash equivalents



(45,682)



105,204











Cash and cash equivalents at beginning of period



139,388



34,184











Cash and cash equivalents at end of period


$

93,706


$

139,388


 

CAL AMP CORP.

RECONCILIATION OF NON-GAAP MEASURES TO GAAP

(Unaudited)















"GAAP" refers to financial information presented in accordance with U.S. Generally Accepted Accounting Principles. This press release includes historical non-GAAP financial measures, as defined in Regulation G promulgated by the Securities and Exchange Commission.  CalAmp believes that its presentation of historical non-GAAP financial measures provides useful supplementary information to investors.  The presentation of historical non-GAAP financial measures is not meant to be considered in isolation from or as a substitute for results prepared in accordance with GAAP.















In this press release, CalAmp reports the non-GAAP financial measures of Adjusted basis net income, Adjusted basis net income per diluted share, Adjusted EBITDA (Earnings Before Investment Income, Interest Expense, Taxes, Depreciation, Amortization and Stock-Based Compensation and other adjustments as identified below), and Adjusted EBITDA margin. CalAmp uses these non-GAAP financial measures to enhance the investor's overall understanding of the financial performance and future prospects of CalAmp's core business activities. Specifically, CalAmp believes that the use of these non-GAAP measures facilitates the comparison of results of core business operations between its current and past periods.  















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

















Three Months Ended


Year Ended




February 28,


February 29,


February 28,


February 29,




2017


2016


2017


2016

GAAP basis net income (loss)


$

(3,486)


$

5,506


$

(7,151)


$

16,940















Intangible assets amortization expense



3,858



1,664



15,061



6,626

Stock-based compensation expense



2,164



1,643



7,833



5,854

Non-cash interest expense from amortization of debt discount



1,601



1,507



6,232



4,613

GAAP basis income tax provision (benefit)



(978)



(2,443)



(1,098)



4,572

Equity in net loss of affiliate



280



503



1,284



829

Acquisition and integration expenses



344



1,980



4,513



1,980

Non-cash cost of sales and depreciation on markup of














 LoJack inventory and fixed assets 



206



-



5,073



-

Legal arbitration expenses for LoJack battery claim



292



-



1,948



-

Litigation provision



6,026



2,900



6,026



2,900

Gain on investment in LoJack common stock



-



(1,364)



-



(1,416)















Adjusted basis income before income taxes



10,307



11,896



39,721



42,898















Income tax provision, non-GAAP basis (a)



(455)



(155)



(1,164)



(499)















Adjusted basis net income


$

9,852


$

11,741


$

38,557


$

42,399















Adjusted basis net income per diluted share


$

0.28


$

0.32


$

1.06


$

1.15















Weighted average common shares outstanding on diluted basis



35,577



37,082



36,397



36,950















(a)

The non-GAAP income tax provision represents cash taxes paid or payable for the period after giving effect to the utilization of net operating loss and tax credit carryforwards.

















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

















Three Months Ended


Year Ended




February 28,


February 29,


February 28,


February 29,




2017


2016


2017


2016















GAAP basis net income (loss)


$

(3,486)


$

5,506


$

(7,151)


$

16,940















Investment income



(582)



(1,448)



(1,691)



(1,871)

Interest expense



2,519



2,415



9,896



7,595

GAAP basis income tax provision (benefit) 



(978)



(2,443)



(1,098)



4,572

Depreciation expense



2,374



974



8,408



3,582

Intangible assets amortization expense



3,858



1,664



15,061



6,626

Stock-based compensation expense



2,164



1,643



7,833



5,854

Equity in net loss of affiliate



280



503



1,284



829

Acquisition and integration expenses



344



1,980



4,513



1,980

Non-cash cost of sales on markup of LoJack inventory



20



-



4,339



-

Legal arbitration expenses for LoJack battery claim



292



-



1,948



-

Litigation provision



6,026



2,900



6,026



2,900















Adjusted EBITDA


$

12,831


$

13,694


$

49,368


$

49,007















Revenue


$

86,126


$

70,807


$

351,102


$

280,719















Adjusted EBITDA margin



14.9%



19.3%



14.1%



17.5%

 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/calamp-reports-fourth-quarter-and-fiscal-year-2017-financial-results-300441308.html

SOURCE CalAmp

At CalAmp, Garo Sarkissian, SVP, Corporate Development, (949) 600-5600; or At NMN Advisors, Nicole Noutsios, (510) 315-1003, nicole@nmnadvisors.com