OXNARD, Calif.--(BUSINESS WIRE)--May. 12, 2009--
CalAmp Corp. (Nasdaq:CAMP), a leading provider of wireless
products, services and solutions, today reported results for its fiscal
2009 fourth quarter and full year ended February 28, 2009. Key elements
include:
-
Consolidated fourth quarter revenues of $21.3 million; Satellite
products revenues of $8.1 million, 10% higher than prior quarter.
-
Fourth quarter GAAP loss from continuing operations of $45.8 million,
or $1.85 per diluted share, includes non-cash pretax charge of $44.7
million for impairment loss; Adjusted basis (non-GAAP) income from
continuing operations of $3.8 million or $0.15 per diluted share.
-
Fourth quarter net cash provided by operations of $10.5 million
(includes $9.0 million received from out-of-court settlement of
litigation with Rogers Corporation).
-
Bank term loan balance reduced by $7.7 million in fourth quarter to
$17.6 million while cash balance increased to $6.9 million.
Rick Gold, CalAmp’s President and Chief Executive Officer, commented,
“Our top line performance reflects the challenging economic environment
that has resulted in key customers delaying projects and postponing
orders for our wireless datacom products. However, I am encouraged with
our operating execution where we continue to make good progress on our
strategic initiatives, strengthen relationships with our key customers
and generate positive cash flow from operating activities. Our ongoing
efforts to rebuild our competitive position in the Direct Broadcast
Satellite (DBS) market are moving forward. During the fourth quarter,
unit volumes of our satellite products to our historically largest DBS
customer continued to ramp, resulting in a 10% sequential quarter
increase in satellite product revenues. I am also pleased with our
recent product development activities where we remain on-track with next
generation DBS product designs and have refreshed and extended our
wireless datacom product portfolio. We are working closely with
strategic launch customers for these new products and are well
positioned for growth in our wireless datacom business as market
conditions stabilize.”
Mr. Gold continued, “Although the recession presented the Company with
significant challenges, restructuring initiatives taken during this past
year have improved our financial flexibility while streamlining our
operations. These actions are expected to result in annualized savings
of approximately $6 million. We believe this will enable the Company to
be more responsive to changing market dynamics and customer demand as we
look ahead to fiscal 2010.”
Fiscal 2009 Fourth Quarter Results
Total revenue for the fiscal 2009 fourth quarter was $21.7 million
compared to $29.8 million for the fourth quarter of fiscal 2008. The
reduction in revenues was due primarily to lower sales of the Company’s
wireless datacom products.
Gross profit for the fiscal 2009 fourth quarter was $13.6 million, or
63.7% of revenues compared to gross profit of $7.5 million, or 25.3% of
revenue for the same period last year. Included in gross profit in the
fiscal 2009 fourth quarter is a $9.0 million gain from the settlement of
litigation with Rogers Corporation. Excluding the litigation settlement,
fiscal 2009 fourth quarter gross profit was $4.6 million, or 21.5% of
revenue. The reduction in gross profit and gross margin percentage in
the latest quarter (excluding the settlement) was due primarily to lower
wireless datacom revenues.
Results of operations for the fiscal 2009 fourth quarter as determined
in accordance with Generally Accepted Accounting Principles ("GAAP") was
a loss from continuing operations of $45.8 million, which is a loss of
$1.85 per basic and diluted share. The Company’s annual goodwill
impairment test resulted in the full impairment of the Company’s
goodwill in the amount of $28.5 million, along with partial impairments
of other intangible assets in the amount of $13.5 million and fixed
assets in the amount of $1.6 million. In addition to amounts
written-down as a result of the annual goodwill impairment test, the
Company also recorded the impairment of $1.1 million related to holdings
of preferred stock of a privately-held company. The aggregate amount of
the aforementioned impaired assets was $44.7 million. Of note, the
outcome of the impairment analysis was largely influenced by the
Company’s stock price as of the impairment test date. As of December 31,
2008, the effective date of the impairment analysis, the Company’s stock
price was $0.45 per common share, which equates to a market
capitalization of $11.3 million based on the 25.2 million common shares
outstanding.
The tax-deductible portion of the $44.7 million impairment charge gives
rise to an income tax benefit of $12.9 million and a corresponding
increase in the deferred income tax asset balance. Based on an
evaluation of the deferred income tax asset carried out pursuant to the
applicable accounting rules, the Company increased its deferred tax
asset valuation allowance by $16.4 million. This results in an income
tax provision for the three months and year ended February 28, 2009 of
$5.9 million and $3.8 million, respectively.
The Adjusted Basis (non-GAAP) income from continuing operations for the
fiscal 2009 fourth quarter was $3.8 million, or $0.15 per basic and
diluted share. This compares to Adjusted Basis (non-GAAP) loss from
continuing operations of $2.8 million, which is a loss of $0.11 per
basic and diluted share, in the same period last year. Adjusted Basis
income (loss) from continuing operations excludes the impact of
impairment charges, changes in the deferred income tax asset valuation
allowance, amortization of intangible assets, stock-based compensation
expense and in-process research and development charges, each net of tax
to the extent applicable. A reconciliation of the GAAP basis loss from
continuing operations to Adjusted Basis income (loss) from continuing
operations is provided in the table at the end of this press release.
Liquidity
At February 28, 2009, the Company had total cash of $6.9 million, with
$17.6 million in total outstanding bank debt and a $3.5 million note
payable to a key DBS customer. Net cash provided by operating activities
was $10.5 million for the three months ended February 28, 2009, which
included $9.0 million received from the out-of-court settlement of
litigation with Rogers Corporation. For the year ended February 28,
2009, net cash generated by operating activities was $13.8 million
including the Rogers settlement. During the latest quarter, the
principal on the Company’s bank term loan was paid down by $7.7 million
and the principal on the note payable to the DBS customer was paid down
by $0.9 million.
The bank term loan has a maturity date of December 31, 2009, and
consequently the entire term loan balance is classified as a current
liability in the Consolidated Balance Sheet at February 28, 2009. The
Company believes that it will be able to refinance the term loan prior
to the maturity date from the proceeds of an asset-based loan, possibly
supplemented by proceeds from another funding source.
Business Outlook
Commenting on the Company's business outlook for the first quarter of
fiscal 2010, Mr. Gold said, “Although we believe a full economic
recovery is still several quarters ahead, there are signs that
conditions are beginning to improve within several of the vertical
markets we serve. That said, while we are forecasting sequential growth
in our satellite business, we expect our wireless datacom business to
remain sluggish in the near term. Based on our current forecast, we
believe fiscal 2010 first quarter consolidated revenues will be in the
range of $22 to $24 million, with a GAAP basis net loss in the range of
$0.15 to $0.19 per diluted share. The Adjusted Basis (non-GAAP) results
of operations for the first quarter, which exclude changes in the
deferred income tax asset valuation allowance, amortization of
intangible assets and stock-based compensation expense net of tax, are
expected to be a net loss of $0.06 to $0.10 per diluted share.
Notwithstanding this anticipated net loss, we expect to continue
generating positive operating cash flow in the first quarter.”
Conference Call and Webcast
A conference call and simultaneous webcast to discuss fiscal 2009 fourth
quarter financial results and business outlook will be held today at
4:30 p.m. Eastern / 1:30 p.m. Pacific. CalAmp's President and CEO Rick
Gold and CFO Rick Vitelle will host the conference call. Participants
can dial into the live conference call by calling 877-941-1848
(480-629-9692 for international callers). An audio replay will be
available through May 19, 2009, by calling 800-406-7325 (303-590-3030
for international callers) and entering the access code 4074352.
Additionally, a live webcast of the call is available on CalAmp's web
site at www.calamp.com.
Participants are encouraged to visit the web site at least 15 minutes
prior to the start of the call to register, download and install any
necessary audio software. After the live webcast, a replay will remain
available until the next quarterly conference call in the Investor
Relations section of CalAmp's web site.
About CalAmp Corp.
CalAmp provides wireless communications solutions that enable
anytime/anywhere access to critical data and content. The Company serves
customers in the public safety, industrial monitoring and controls,
mobile resource management and direct broadcast satellite markets. The
Company’s products are marketed under the CalAmp, Dataradio, SmartLink,
Aercept, LandCell and Omega trade names. 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 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. Actual
results could differ materially from those implied by such
forward-looking statements due to a variety of factors, including
product demand, competitive pressures and pricing declines in the
Company’s Satellite and Wireless markets, the timing of customer
approvals of new product designs, the length and extent of the global
economic downturn that has and may continue to adversely affect the
Company's business, the Company's ability to refinance or extend its
bank term loan prior to the December 31, 2009 maturity date, and other
risks or uncertainties that are described in the Company's Annual Report
on Form 10-K for fiscal 2009 as filed today with the Securities and
Exchange Commission. Although the Company believes the expectations
reflected in such forward-looking statements are based upon reasonable
assumptions, it can give no assurance that its expectations will be
attained. The Company undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
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CAL AMP CORP.
|
CONSOLIDATED STATEMENTS OF OPERATIONS
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(In thousands except per share amounts)
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Three Months Ended
|
|
Year Ended
|
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February 28,
|
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February 28,
|
|
|
2009
|
|
|
2008
|
|
2009
|
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Revenues
|
|
$
|
21,327
|
|
|
|
$
|
29,785
|
|
|
$
|
98,370
|
|
|
|
$
|
140,907
|
|
|
|
|
|
|
|
|
|
|
|
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|
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Cost of revenues
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7,739
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(a)
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22,247
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|
60,244
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(a)
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122,412
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
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|
13,588
|
|
|
|
|
7,538
|
|
|
|
38,126
|
|
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|
|
18,495
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Operating expenses:
|
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Research and development
|
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3,369
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|
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|
|
3,728
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12,899
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|
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|
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15,710
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Selling
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2,384
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3,414
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8,959
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|
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|
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10,633
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General and administrative
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2,735
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4,809
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12,087
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|
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14,966
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Intangible asset amortization
|
|
|
617
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1,558
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4,429
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|
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6,418
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In-process research and development
|
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-
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-
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-
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310
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Impairment loss
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44,736
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5,531
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44,736
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71,276
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53,841
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19,040
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83,110
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119,313
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Operating loss
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(40,253
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)
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(11,502
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)
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(44,984
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)
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(100,818
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)
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Non-operating income (expense), net
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361
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(760
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)
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(911
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)
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(2,472
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)
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Loss from continuing operations before income taxes
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(39,892
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)
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(12,262
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)
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(45,895
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)
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(103,290
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)
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Income tax (provision) benefit
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(5,940
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)
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3,046
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(3,770
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)
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20,940
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|
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Loss from continuing operations
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(45,832
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)
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(9,216
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)
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(49,665
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)
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(82,350
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)
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Loss from discontinued operations, net of tax
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-
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(267
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)
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-
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(1,799
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)
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|
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Net loss
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$
|
(45,832
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)
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$
|
(9,483
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)
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$
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(49,665
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)
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|
|
$
|
(84,149
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)
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Basic and diluted loss per share:
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|
|
|
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Loss from continuing operations
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$
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(1.85
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)
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$
|
(0.37
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)
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$
|
(2.01
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)
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$
|
(3.45
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)
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Loss from discontinued operations
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-
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(0.01
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)
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-
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(0.08
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)
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Total basic and diluted loss per share
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$
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(1.85
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)
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$
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(0.38
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)
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$
|
(2.01
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)
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$
|
(3.53
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)
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Shares used in per share calculations:
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Basic
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|
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24,810
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24,660
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24,765
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23,881
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Diluted
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24,810
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24,660
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24,765
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|
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23,881
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|
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(a) Includes a $9 million gain from a legal settlement with Rogers
Corporation in January 2009.
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CAL AMP CORP.
|
BUSINESS SEGMENT INFORMATION
|
( In thousands)
|
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|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Year Ended
|
|
|
|
|
February 28,
|
|
|
|
February 28,
|
|
|
|
|
2009
|
|
|
2008
|
|
|
2009
|
|
|
2008
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Satellite
|
|
|
$
|
8,126
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|
|
|
$
|
9,255
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$
|
26,327
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$
|
50,490
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Wireless DataCom
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13,201
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|
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20,530
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|
|
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72,043
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|
|
|
|
90,417
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
|
$
|
21,327
|
|
|
|
$
|
29,785
|
|
|
|
$
|
98,370
|
|
|
|
$
|
140,907
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Satellite
|
|
|
$
|
9,349
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|
(a)
|
|
$
|
722
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|
|
|
$
|
10,254
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|
(a)
|
|
$
|
(14,808
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)
|
(d)
|
Wireless DataCom
|
|
|
|
4,239
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|
|
|
|
6,816
|
|
|
|
|
27,872
|
|
|
|
|
33,303
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total gross profit
|
|
|
$
|
13,588
|
|
|
|
$
|
7,538
|
|
|
|
$
|
38,126
|
|
|
|
$
|
18,495
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Satellite
|
|
|
$
|
6,110
|
|
(a)(b)
|
|
$
|
(1,568
|
)
|
(c)
|
|
$
|
3,616
|
|
(a)(b)
|
|
$
|
(63,924
|
)
|
(c)(d)
|
Wireless DataCom
|
|
|
|
(43,886
|
)
|
(e)(f)
|
|
|
(7,485
|
)
|
(g)(h)
|
|
|
(42,206
|
)
|
(e)(f)
|
|
|
(30,473
|
)
|
(g)(h)
|
Corporate expenses
|
|
|
|
(2,477
|
)
|
(i)
|
|
|
(2,449
|
)
|
|
|
|
(6,394
|
)
|
(i)
|
|
|
(6,421
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating loss
|
|
|
$
|
(40,253
|
)
|
|
|
$
|
(11,502
|
)
|
|
|
$
|
(44,984
|
)
|
|
|
$
|
(100,818
|
)
|
|
|
|
|
(a)
|
|
Includes a $9 million gain from a legal settlement with Rogers
Corporation in January 2009.
|
|
|
|
|
(b)
|
|
Includes a Satellite segment goodwill impairment charge of $2.3
million for the three months and year ended February 28, 2009.
|
|
|
|
|
(c)
|
|
Includes a Satellite segment goodwill impairment charge of $1.2
million and $44.4 million for the three months and year ended
February 28, 2008, respectively.
|
|
|
|
(d)
|
|
Includes charges for estimated product warranty and related costs
in the year ended February 28, 2008 of $17.9 million.
|
|
|
|
|
(e)
|
|
Includes a Wireless DataCom segment impairment charge of $41.3
million for the three months and year ended February 28, 2009.
|
|
|
|
|
(f)
|
|
Includes intangible asset amortization expense in the three months
and year ended February 28, 2009 of $0.6 million and $4.4 million,
respectively.
|
|
|
|
|
(g)
|
|
Includes a Wireless DataCom segment goodwill impairment charge of
$4.3 million and $26.9 million for the three months and year ended
February 28, 2008.
|
|
|
|
(h)
|
|
Includes intangible asset amortization expense in the three months
and year ended February 28, 2008 of $1.6 million and $6.4 million,
respectively.
|
|
|
|
(i)
|
|
Includes an impairment charge on investment in preferred stock of
a privately held company of $1.1 million for the three months and
year ended February 28, 2009.
|
|
|
|
|
|
|
|
|
|
|
CAL AMP CORP.
|
CONSOLIDATED BALANCE SHEETS
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
February 28,
|
|
|
2009
|
|
2008
|
Assets
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
6,913
|
|
|
$
|
6,588
|
|
Accounts receivable, net
|
|
|
13,682
|
|
|
|
20,043
|
|
Inventories
|
|
|
15,139
|
|
|
|
25,097
|
|
Deferred income tax assets
|
|
|
3,479
|
|
|
|
5,306
|
|
Prepaid expenses and other current assets
|
|
|
4,962
|
|
|
|
9,733
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
44,175
|
|
|
|
66,767
|
|
|
|
|
|
|
|
|
Equipment and improvements, net
|
|
|
2,139
|
|
|
|
5,070
|
|
|
|
|
|
|
|
|
Deferred income tax assets, less current portion
|
|
|
13,111
|
|
|
|
14,802
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
-
|
|
|
|
28,520
|
|
|
|
|
|
|
|
|
Other intangible assets, net
|
|
|
6,473
|
|
|
|
24,424
|
|
|
|
|
|
|
|
|
Other assets
|
|
|
3,749
|
|
|
|
3,458
|
|
|
|
|
|
|
|
|
|
|
$
|
69,647
|
|
|
$
|
143,041
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Current portion of long-term debt
|
|
$
|
21,078
|
|
|
$
|
5,343
|
|
Accounts payable
|
|
|
5,422
|
|
|
|
10,875
|
|
Accrued payroll and employee benefits
|
|
|
3,380
|
|
|
|
4,218
|
|
Accrued warranty costs
|
|
|
3,286
|
|
|
|
3,818
|
|
Other accrued liabilities
|
|
|
8,683
|
|
|
|
11,800
|
|
Deferred revenue
|
|
|
3,609
|
|
|
|
4,005
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
45,458
|
|
|
|
40,059
|
|
|
|
|
|
|
|
|
Long-term debt, less current portion
|
|
|
-
|
|
|
|
27,187
|
|
|
|
|
|
|
|
|
Other non-current liabilities
|
|
|
990
|
|
|
|
2,375
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
Common stock
|
|
|
252
|
|
|
|
250
|
|
Additional paid-in capital
|
|
|
144,881
|
|
|
|
144,318
|
|
Accumulated deficit
|
|
|
(120,814
|
)
|
|
|
(71,149
|
)
|
Accumulated other comprehensive income (loss)
|
|
|
(1,120
|
)
|
|
|
1
|
|
|
|
|
|
|
|
|
Total stockholders' equity
|
|
|
23,199
|
|
|
|
73,420
|
|
|
|
|
|
|
|
|
|
|
$
|
69,647
|
|
|
$
|
143,041
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAL AMP CORP.
|
CONSOLIDATED CASH FLOW STATEMENTS
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
Year Ended February 28,
|
|
|
2009
|
|
2008
|
Cash flows from operating activities:
|
|
|
|
|
|
|
Net loss
|
|
$
|
(49,665
|
)
|
|
$
|
(84,149
|
)
|
Depreciation and amortization
|
|
|
6,549
|
|
|
|
9,681
|
|
Stock-based compensation expense
|
|
|
1,268
|
|
|
|
2,238
|
|
Write-off of in-process research and development costs
|
|
|
-
|
|
|
|
310
|
|
Impairment loss
|
|
|
44,736
|
|
|
|
71,276
|
|
Deferred tax assets, net
|
|
|
3,373
|
|
|
|
(20,784
|
)
|
Loss on sale of discontinued operations, net of tax
|
|
|
-
|
|
|
|
1,202
|
|
Gain on sale of investment
|
|
|
-
|
|
|
|
(331
|
)
|
Changes in operating working capital
|
|
|
7,499
|
|
|
|
19,087
|
|
Other
|
|
|
-
|
|
|
|
(6
|
)
|
|
|
|
|
|
|
|
Net cash provided (used) by operating activities
|
|
|
13,760
|
|
|
|
(1,476
|
)
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
Capital expenditures
|
|
|
(831
|
)
|
|
|
(1,359
|
)
|
Earn-out payments on TechnoCom acquisition
|
|
|
(1,183
|
)
|
|
|
(985
|
)
|
Earn-out payments on Landcell acquisition
|
|
|
(188
|
)
|
|
|
-
|
|
Proceeds from sale of discontinued operations
|
|
|
465
|
|
|
|
4,420
|
|
Proceeds from sale of property and equipment
|
|
|
-
|
|
|
|
7
|
|
Proceeds from sale of investment
|
|
|
-
|
|
|
|
1,045
|
|
Acquisition of Aercept
|
|
|
-
|
|
|
|
(19,318
|
)
|
Acquisition of SmartLink, net of refunds from escrow fund
|
|
|
296
|
|
|
|
(7,845
|
)
|
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
|
(1,441
|
)
|
|
|
(24,035
|
)
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
Debt repayments
|
|
|
(11,452
|
)
|
|
|
(6,728
|
)
|
Proceeds from stock option exercises
|
|
|
-
|
|
|
|
213
|
|
|
|
|
|
|
|
|
Net cash used in financing activities
|
|
|
(11,452
|
)
|
|
|
(6,515
|
)
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash
|
|
|
(542
|
)
|
|
|
1,077
|
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents
|
|
|
325
|
|
|
|
(30,949
|
)
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
6,588
|
|
|
|
37,537
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period
|
|
$
|
6,913
|
|
|
$
|
6,588
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAL AMP CORP.
|
NON-GAAP EARNINGS RECONCILIATION
|
(Unaudited, in thousands except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Earnings
Reconciliation
|
"GAAP" refers to financial information presented in accordance
with Generally Accepted Accounting Principles in the United
States. 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 accounting principles generally
accepted in the United States.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In this press release, CalAmp reports the non-GAAP financial
measures of Adjusted Basis Income (Loss) from Continuing
Operations and Adjusted Basis Income (Loss) from Continuing
Operations Per Diluted Share. 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 a report
of Adjusted Basis Income (Loss) from Continuing Operations and
Adjusted Basis Income (Loss) from Continuing Operations Per
Diluted Share provides consistency in its financial reporting and
facilitates the comparison of results of core business operations
between its current and past periods.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The reconciliation of the GAAP Basis Loss from Continuing
Operations to Adjusted Basis Income (Loss) from Continuing
Operations is as follows:
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
February 28,
|
|
February 28,
|
|
|
2009
|
|
2008
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Basis Loss from Continuing Operations
|
|
$
|
(45,832
|
)
|
|
$
|
(9,216
|
)
|
|
$
|
(49,665
|
)
|
|
$
|
(82,350
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile to Adjusted Basis Loss from Continuing
Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment charge
|
|
|
32,558
|
|
|
|
5,069
|
|
|
|
32,558
|
|
|
|
62,776
|
|
Valuation allowance on deferred tax assets
|
|
|
16,396
|
|
|
|
-
|
|
|
|
16,396
|
|
|
|
-
|
|
Amortization of intangible assets, net of tax
|
|
|
379
|
|
|
|
953
|
|
|
|
2,718
|
|
|
|
3,925
|
|
Stock-based compensation expense, net of tax
|
|
|
264
|
|
|
|
387
|
|
|
|
778
|
|
|
|
1,369
|
|
In-process R&D, net of tax
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Basis Income (Loss) from Continuing Operations
|
|
$
|
3,765
|
|
|
$
|
(2,807
|
)
|
|
$
|
2,785
|
|
|
$
|
(14,090
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Basis Income (Loss) from Continuing Operations per
Diluted Share
|
|
$
|
0.15
|
|
|
$
|
(0.11
|
)
|
|
$
|
0.11
|
|
|
$
|
(0.59
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding on diluted basis
|
|
|
24,810
|
|
|
|
24,660
|
|
|
|
24,765
|
|
|
|
23,881
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The reconciling items above are tax effected using the
year-to-date effective tax rate. The computation of the
year-to-date effective income tax rate is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
|
|
|
|
|
|
|
February 28,
|
|
|
|
|
|
|
|
|
2009
|
|
2008
|
Pretax loss from continuing operations, as reported
|
|
$
|
(45,895
|
)
|
|
$
|
(103,290
|
)
|
Add back nondeductible portion of impairment loss
|
|
|
13,220
|
|
|
|
49,397
|
|
|
|
|
|
|
|
|
|
|
Pretax loss from continuing operations before nondeductible item
|
|
|
(32,675
|
)
|
|
|
(53,893
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (provision) benefit, as reported
|
|
|
(3,770
|
)
|
|
|
20,940
|
|
Add back valuation allowance
|
|
|
16,396
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit, as adjusted
|
|
|
12,626
|
|
|
|
20,940
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective income tax rate
|
|
|
38.6
|
%
|
|
|
38.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Source: CalAmp Corp.
CalAmp Corp.:
Rick Vitelle, Chief Financial Officer,
805-987-9000
or
Financial Relations Board:
General
Information, Lasse Glassen, 213-486-6546
lglassen@frbir.com