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8-K
false000073025500007302552024-01-092024-01-09

 

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): January 09, 2024

 

 

CalAmp Corp.

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware

0-12182

95-3647070

(State or Other Jurisdiction
of Incorporation)

(Commission File Number)

(IRS Employer
Identification No.)

 

 

 

 

 

15635 Alton Parkway

Suite 250

 

Irvine, California

 

92618

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: (949) 600-5600

 

 

(Former Name or Former Address, if Changed Since Last Report)

 

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 240.14a-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))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class

 

Trading
Symbol(s)

 


Name of each exchange on which registered

Common stock, $0.01 per share

 

CAMP

 

Nasdaq Global Select Market

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 Item 2.02 of this Current Report on Form 8-K including Exhibit 99.1 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 Item 2.02 to this Current Report on Form 8-K including 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 January 9, 2024, CalAmp Corp. issued a press release announcing its financial results for the third quarter ended November 30, 2023. A copy of the press release is attached as Exhibit 99.1 and incorporated herein.

A conference call with simultaneous webcast to discuss the financial results for the third quarter ended November 30, 2023 will be held today, January 9, 2024 at 2:00 P.M. Pacific Time. After the live webcast of the conference call, an audio replay will remain available until January 16, 2024 in the Investor Relations section of CalAmp's website at www.calamp.com.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

 

99.1

Press release of the Registrant dated January 9, 2024 announcing its results of operations for the third quarter ended November 30, 2023.

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

CALAMP CORP.

 

 

 

 

Date:

January 9, 2024

By:

/s/ Jikun Kim

 

 

 

Jikun Kim
Senior Vice President and CFO
(Principal Financial Officer)

 


EX-99.1

Exhibit 99.1

 

 

https://cdn.kscope.io/7ccabda99d46e67a0647ea407d877ce2-img183648324_0.jpg 

 

CalAmp Reports Third Quarter Fiscal Year 2024 Financial Results

IRVINE, CA, January 9, 2024 – CalAmp (Nasdaq: CAMP), a connected intelligence company that helps organizations monitor, track and protect their vital assets, today reported financial results for its third quarter of fiscal year 2024 ended November 30, 2023.

Third Quarter Fiscal Year 2024 Financial Overview

Revenue was $53.6 million, representing a 13% decline QoQ and a 32% decline YoY driven primarily by softer demand in the TSP market segment.
Gross margin was 33%, representing a decline of approximately 340 bps QoQ and 100 bps decline YoY as a result of a shift in product mix and a higher-than-normal reserve for excess and obsolete inventory.
S&SS revenue was $34.5 million, representing a 15% decline QoQ and a 30% decline YoY.
Telematics Products revenue was $19.2 million, representing a 10% decline QoQ and a 35% decline YoY.
Recurring Application Subscription revenues were $17.8 million in the quarter, representing a 5% decline QoQ as well as YoY.
Adjusted EBITDA was $1.0 million, representing a $4.8 million decline QoQ and a $3.7 million decline YoY.
GAAP net loss from continuing operations was $85 million, or a loss of $2.27 per share. This includes the impact of a $74 million goodwill impairment charge.
Ended the quarter with $38.2 million in cash and cash equivalents down $400K QoQ.

“In the third quarter, strength in our industrial and connected car segments was offset by soft demand in our TSP segment. Soft demand with TSPs led to lower than expected consolidated revenue and Adjusted EBITDA. We continue to work closely with our TSP customers as they rebalance inventory levels and respond to an overall competitive environment. We are optimistic that our rejuvenated efforts in this segment will result in a return to revenue growth from current levels” said Interim CEO, Jason Cohenour. “During the quarter, we also implemented initiatives to narrow our strategic focus and to reduce cash expenses by approximately $16 million on an annualized basis. Our sharpened focus on core segments, combined with a more efficient cost structure, adds considerable leverage to our operating model as we strive for a return to profitable growth.”

Business and Recent Highlights

Announced on January 8, 2024, the appointment of veteran technology leader Chris Adams as President and Chief Executive Officer, effective January 22, 2024.
Announced on December 18, 2023, the closing of a $45 million term loan with Lynrock Lake Master Fund LP to provide the company with additional financial capacity in support of its business transformation.
CalAmp’s international connected car solution was granted Toyota “Genuine” status, enabling port installation, and streamlining the sales and customer delivery process.
Released the new Vision 2.1 solution, enabling telematics functionality through the standalone dash cam.
Completed the technical migration of devices from legacy PULS device management platform to DMCTC.

CalAmp Reports Fiscal Year 2024 Third Quarter Financial Results

Page 2 of 9

 

Summary Financial Information From Continuing Operations:

(In thousands except per share amounts)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

November 30,

 

 

November 30,

 

Description

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Software & Subscription Services (S&SS)

 

$

34,456

 

 

$

49,264

 

 

$

119,766

 

 

$

133,332

 

Telematics Products

 

 

19,169

 

 

 

29,625

 

 

 

66,464

 

 

 

83,111

 

 

 

$

53,625

 

 

$

78,889

 

 

$

186,230

 

 

$

216,443

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin

 

 

33

%

 

 

34

%

 

 

36

%

 

 

38

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(85,004

)

 

$

(4,733

)

 

$

(93,261

)

 

$

(24,400

)

Net loss per diluted share

 

$

(2.27

)

 

$

(0.13

)

 

$

(2.52

)

 

$

(0.68

)

Non-GAAP measures:

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

1,031

 

 

$

4,698

 

 

$

12,950

 

 

$

11,320

 

Adjusted EBITDA margin

 

 

2

%

 

 

6

%

 

 

7

%

 

 

5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Flow from Operations

 

$

1,830

 

 

$

3,834

 

 

$

5,993

 

 

$

(21,841

)

 

 

 

November 30,

 

 

February 28,

 

Description

 

2023

 

 

2023

 

Cash and cash equivalents

 

$

38,169

 

 

$

41,928

 

Working capital

 

 

69,258

 

 

 

68,295

 

Deferred revenue

 

 

37,434

 

 

 

36,552

 

Total debt (carrying value)

 

 

228,148

 

 

 

228,121

 

 

 

 

 

 

 

 

 

 

 

November 30,

 

S&SS Supplemental Information:

 

2023

 

 

2022

 

Remaining performance obligations

 

$

186,036

 

 

$

252,200

 

Subscribers

 

 

1,833

 

 

 

1,460

 

 

 

Three Months Ended

 

 

Nov 30, 2023

 

 

Nov 30, 2022

 

 

Aug 31, 2023

 

Revenue by type of goods and services:

 

 

 

 

 

 

 

 

Telematics devices and accessories (1)

$

31,217

 

 

$

53,331

 

 

$

37,358

 

Rental income and other services

$

4,583

 

 

 

6,307

 

 

$

5,656

 

Recurring application subscriptions (2)

$

17,825

 

 

 

19,251

 

 

$

18,700

 

Total

$

53,625

 

 

$

78,889

 

 

$

61,714

 

 

 

 

 

 

 

 

 

 

Recurring application subscriptions, excluding Automotive Vehicle Finance Business (1)

$

17,823

 

 

$

18,761

 

 

$

18,694

 

(1)
Telematics devices and accessories during the three months ended August 31, 2023 includes a reversal of $1.2M of revenue related to an exchange of product in support of our customer's specialized regional requirements.
(2)
Recurring application subscriptions includes $0.0 million, $0.5 million, and $0.0 million during the three months ended November 30, 2023, November 30, 2022, and August 31, 2023, respectively, attributable to the auto vehicle finance business which has been completely wound down. The three months ended August 31, 2023 additionally includes ($0.4M) of adjustments related to prior periods.

 


CalAmp Reports Fiscal Year 2024 Third Quarter Financial Results

Page 3 of 9

 

Fourth Quarter Fiscal Year 2024 Business Outlook

 

We expect Q4 FY24 revenues to be down slightly on a sequential basis and adjusted EBITDA to be stable.

 

A reconciliation of non-GAAP guidance financial measures to corresponding GAAP guidance financial measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty and potential variability of expenses, such as stock-based compensation expense-related charges, that may be incurred in the future and cannot be reasonably determined or predicted at this time. It is important to note that these factors could be material to our results of operations computed in accordance with GAAP.

Conference Call and Webcast

CalAmp is hosting a conference call for analysts and investors to discuss its third quarter fiscal year 2024 results at 2:00 p.m. Pacific Time today. Participants can listen in via webcast by visiting the Investor Relations section of its 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 833-470-1428 (+1-404-975-4839 for international callers) and using the Conference ID #757030. Following the call, an audio replay will also be available by calling 866-813-9403 or 1-929-458-6194 and entering the Replay ID # 181919. The audio replay will be available through January 16, 2024.

 

About CalAmp

 

CalAmp (Nasdaq: CAMP) provides flexible solutions to help organizations worldwide monitor, track and protect their vital assets. Our unique combination of software, devices, and platform enables commercial and government organizations worldwide to increase efficiency, safety and transparency while accommodating the unique ways they do business. With over 10 million active edge devices and 275+ issued or pending patents, CalAmp is the telematics leader organizations turn to for innovation and dependability. For more information, visit calamp.com, or LinkedIn, 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, (iii) our comprehensive review of strategic alternatives focused on enhancing shareholder value, and (iv) 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 outcome of our comprehensive review of strategic alternatives, including the availability of any strategic alternatives that are worthwhile to pursue; the effects of global outbreaks of pandemics or contagious diseases or fear of such outbreaks, such as the recent coronavirus (COVID-19) pandemic; global component shortages due to supply chain constraints caused by the COVID-19 pandemic; disruptions in sales, operations, relationships with customers, suppliers, employees; 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; 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


CalAmp Reports Fiscal Year 2024 Third Quarter Financial Results

Page 4 of 9

 

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 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 and legal expenses, impairment losses and certain other adjustments as detailed in the accompanying non-GAAP reconciliation), and Adjusted EBITDA margin. 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® U.S. 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.

 

AT CALAMP:

AT CALAMP:

Jikun Kim

Mark Gaydos

SVP & CFO

Chief Marketing and Product Officer

ir@calamp.com

ir@calamp.com

 


CalAmp Reports Fiscal Year 2024 Third 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

 

 

Fiscal Year Ended

 

 

November 30,

 

 

November 30,

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

 

53,625

 

 

$

 

78,889

 

 

$

 

186,230

 

 

$

 

216,443

 

Cost of revenues

 

 

36,051

 

 

 $

 

52,275

 

 

 

 

119,251

 

 

 

 

135,170

 

Gross profit

 

 

17,574

 

 

 

 

26,614

 

 

 

 

66,979

 

 

 

 

81,273

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

4,051

 

 

 $

 

5,479

 

 

 

 

14,693

 

 

 

 

19,236

 

Selling and marketing

 

 

8,884

 

 

 $

 

12,486

 

 

 

 

29,525

 

 

 

 

36,698

 

General and administrative

 

 

10,114

 

 

 $

 

11,172

 

 

 

 

31,482

 

 

 

 

39,864

 

Intangible asset amortization

 

 

1,116

 

 

 $

 

1,323

 

 

 

 

3,466

 

 

 

 

3,995

 

Restructuring

 

 

1,718

 

 

 $

 

-

 

 

 

 

1,718

 

 

 

 

-

 

Impairment loss

 

 

75,106

 

 

 

 

-

 

 

 

 

75,106

 

 

 

 

-

 

Total operating expenses

 

 

100,989

 

 

 

 

30,460

 

 

 

 

155,990

 

 

 

 

99,793

 

Operating loss

 

 

(83,415

)

 

 

 

(3,846

)

 

 

 

(89,011

)

 

 

 

(18,520

)

Non-operating income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income

 

 

(124

)

 

 $

 

818

 

 

 

 

360

 

 

 

 

646

 

Interest expense

 

 

(1,410

)

 

 $

 

(1,648

)

 

 

 

(4,662

)

 

 

 

(4,645

)

Other expense, net

 

 

(17

)

 

 $

 

211

 

 

 

 

577

 

 

 

 

(1,238

)

Total non-operating expenses

 

 

(1,551

)

 

 

 

(619

)

 

 

 

(3,725

)

 

 

 

(5,237

)

Loss from operations before income taxes

 

 

(84,966

)

 

 

 

(4,465

)

 

 

 

(92,736

)

 

 

 

(23,757

)

Income tax provision

 

 

(38

)

 

 $

 

(268

)

 

 

 

(525

)

 

 

 

(643

)

Net loss

$

 

(85,004

)

 

$

 

(4,733

)

 

$

 

(93,261

)

 

$

 

(24,400

)

Loss per share - continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

 

(2.27

)

 

$

 

(0.13

)

 

$

 

(2.52

)

 

$

 

(0.68

)

Diluted

$

 

(2.27

)

 

$

 

(0.13

)

 

$

 

(2.52

)

 

$

 

(0.68

)

Shares used in computing earnings (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Basic

 

 

37,427

 

 

 

 

36,357

 

 

 

 

37,023

 

 

 

 

36,027

 

  Diluted

 

 

37,427

 

 

 

 

36,357

 

 

 

 

37,023

 

 

 

 

36,027

 

 

- more -

 


CalAmp Reports Fiscal Year 2024 Third Quarter Financial Results

Page 6 of 9

 

CALAMP CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands)

(Unaudited)

 

 

 

 

 

November 30,

 

 

February 28,

 

 

 

 

 

2023

 

 

2023

 

                                Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

 

$

 

38,169

 

 

$

 

41,928

 

Accounts receivable, net

 

 

 

 

 

70,909

 

 

 

 

82,946

 

Inventories

 

 

 

 

 

34,059

 

 

 

 

23,902

 

Prepaid expenses and other current assets

 

 

 

 

 

25,824

 

 

 

 

26,019

 

Total current assets

 

 

 

 

 

168,961

 

 

 

 

174,795

 

 

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

 

 

 

25,724

 

 

 

 

32,832

 

Operating lease right-of-use assets

 

 

 

 

 

10,168

 

 

 

 

12,293

 

Deferred income tax assets

 

 

 

 

 

2,927

 

 

 

 

3,275

 

Goodwill

 

 

 

 

 

20,583

 

 

 

 

94,214

 

Other intangible assets, net

 

 

 

 

 

23,608

 

 

 

 

26,633

 

Other assets

 

 

 

 

 

29,270

 

 

 

 

36,078

 

Total assets

 

 

 

$

 

281,241

 

 

$

 

380,120

 

 

 

 

 

 

 

 

 

 

 

 

                      Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

Current portion of long-term debt

 

 

 

$

 

-

 

 

$

 

705

 

Accounts payable

 

 

 

 

 

46,695

 

 

 

 

52,716

 

Accrued payroll and employee benefits

 

 

 

 

 

10,112

 

 

 

 

11,766

 

Deferred revenue

 

 

 

 

 

26,328

 

 

 

 

25,448

 

Other current liabilities

 

 

 

 

 

16,568

 

 

 

 

15,865

 

Total current liabilities

 

 

 

 

 

99,703

 

 

 

 

106,500

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt, net of current portion

 

 

 

 

 

228,148

 

 

 

 

227,416

 

Operating lease liabilities

 

 

 

 

 

9,007

 

 

 

 

12,314

 

Other non-current liabilities

 

 

 

 

 

18,522

 

 

 

 

19,583

 

Total liabilities

 

 

 

 

 

355,380

 

 

 

 

365,813

 

Stockholders' equity:

 

 

 

 

 

 

 

 

 

 

  Common stock

 

 

 

 

 

379

 

 

 

 

374

 

  Additional paid-in capital

 

 

 

 

 

189,747

 

 

 

 

184,672

 

  Accumulated deficit

 

 

 

 

 

(262,077

)

 

 

 

(168,816

)

  Accumulated other comprehensive loss

 

 

 

 

 

(2,188

)

 

 

 

(1,923

)

Total stockholders' equity

 

 

 

 

 

(74,139

)

 

 

 

14,307

 

Total liabilities and stockholders' equity

 

 

 

$

 

281,241

 

 

$

 

380,120

 

 

 

 

 

 

 

 

 

 

 

 

 

- more -

 


CalAmp Reports Fiscal Year 2024 Third Quarter Financial Results

Page 7 of 9

 

CALAMP CORP.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

(Unaudited)

 

 

Nine Months Ended

 

 

 

November 30,

 

 

 

 

2023

 

 

 

2022

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net loss

$

 

(93,261

)

 

$

 

(24,400

)

 

 

 

 

 

 

 

 

 

 

Depreciation expense

 

 

12,632

 

 

 

 

12,108

 

 

Intangible asset amortization

 

 

3,466

 

 

 

 

3,995

 

 

Stock-based compensation

 

 

5,469

 

 

 

 

8,186

 

 

Amortization of debt issuance costs and discount

 

 

825

 

 

 

 

877

 

 

Impairment losses

 

 

75,106

 

 

 

 

-

 

 

Non-cash operating lease cost

 

 

2,575

 

 

 

 

2,591

 

 

Revenue assigned to factors

 

 

(798

)

 

 

 

(2,143

)

 

Deferred tax assets, net

 

 

480

 

 

 

 

132

 

 

Other

 

 

381

 

 

 

 

122

 

 

Changes in operating assets and liabilities of continuing operations

 

 

(882

)

 

 

 

(23,309

)

NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES

 

 

5,993

 

 

 

 

(21,841

)

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(6,176

)

 

 

 

(9,294

)

NET CASH USED IN INVESTING ACTIVITIES

 

 

(6,176

)

 

 

 

(9,294

)

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Taxes paid related to net share settlement of vested equity awards

 

 

(520

)

 

 

 

(1,675

)

 

Proceeds from exercise of stock options and contributions to employee stock purchase plan

 

 

131

 

 

 

 

502

 

NET CASH USED IN FINANCING ACTIVITIES

 

 

(389

)

 

 

 

(1,173

)

 

 

 

 

 

 

 

 

 

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS

 

 

(3,187

)

 

 

 

(2,007

)

Net change in cash and cash equivalents

 

 

(3,759

)

 

 

 

(34,315

)

Cash and cash equivalents at beginning of period

 

 

41,928

 

 

 

 

79,221

 

Cash and cash equivalents at end of period

$

 

38,169

 

 

$

 

44,906

 

 

 


CalAmp Reports Fiscal Year 2024 Third 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 announcement includes non-GAAP financial measures, as defined in Regulation G promulgated by the Securities and Exchange Commission. We believe that our 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 announcement, we report the non-GAAP financial measures of 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 EBITDA and the calculation of Adjusted EBITDA margin are as follows (dollars in thousands):

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

November 30,

 

 

November 30,

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP basis net loss

$

 

(85,004

)

 

$

 

(4,733

)

 

$

 

(93,261

)

 

$

 

(24,400

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment (income) loss

 

 

124

 

 

 

 

(818

)

 

 

 

(360

)

 

 

 

(646

)

Interest expense

 

 

1,410

 

 

 

 

1,648

 

 

 

 

4,662

 

 

 

 

4,645

 

Income tax provision

 

 

38

 

 

 

 

268

 

 

 

 

525

 

 

 

 

643

 

Depreciation and amortization

 

 

4,953

 

 

 

 

5,216

 

 

 

 

16,098

 

 

 

 

16,103

 

Stock-based compensation

 

 

1,567

 

 

 

 

2,030

 

 

 

 

5,469

 

 

 

 

8,186

 

Litigation and non-recurring legal expenses

 

 

91

 

 

 

 

86

 

 

 

 

280

 

 

 

 

4,634

 

Restructuring

 

 

1,718

 

 

 

 

-

 

 

 

 

1,718

 

 

 

 

-

 

Costs incurred in transition of LoJack North America business to acquiror (a)

 

 

(79

)

 

 

 

232

 

 

 

 

(319

)

 

 

 

1,217

 

Impairment loss

 

 

75,106

 

 

 

 

-

 

 

 

 

75,106

 

 

 

 

-

 

Other

 

 

1,107

 

 

 

 

769

 

 

 

 

3,032

 

 

 

 

938

 

Adjusted EBITDA

$

 

1,031

 

 

$

 

4,698

 

 

$

 

12,950

 

 

$

 

11,320

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

 

53,625

 

 

$

 

78,889

 

 

$

 

186,230

 

 

$

 

216,443

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA margin

 

 

2

%

 

 

 

6

%

 

 

 

7

%

 

 

 

5

%

 

(a)
Costs incurred in transition of business to acquiror are attributable to the wind-down and transfer of the LoJack North America business to Spireon.