Press Release Details

View all Press Releases

CalAmp Reports Fiscal 2021 Second Quarter Financial Results

09/24/20
SaaS revenue of $33.7 million, up 20% sequentially and representing 40% of total revenue
Second quarter consolidated revenue increased 4% sequentially to $83.5 million

IRVINE, Calif., Sept. 24, 2020 /PRNewswire/ -- CalAmp (Nasdaq: CAMP), a global technology solutions pioneer transforming the mobile connected economy, today reported financial results for its second quarter ended August 31, 2020. 

"Our second quarter results reflect strong sequential growth in our Software and Subscription Services revenue primarily due to increased installation activity across our geographies as automotive dealerships and school districts advanced plans for reopening, and further supported by solid demand for our K-12 fleet management and LoJack International services," said Jeff Gardner, CalAmp's president and chief executive officer. "Additionally, our largest customer, Caterpillar, had a strong quarter as we continue to support their 3G-to-4G LTE upgrade."

Second Quarter Fiscal Year 2021 Financial Overview

  • Consolidated revenue was $83.5 million, up 4.1% sequentially and down 10.4% year-over-year due to a decline in Telematics Systems revenue largely attributable to the COVID-19 impact on MRM Telematics and LoJack U.S. SVR (Stolen Vehicle Recovery) product sales.
  • Software & Subscription Services revenue was $33.7 million, up 20.2% sequentially and 8.0% year-over-year and representing 40.3% of consolidated revenue.
  • Network & OEM products revenue increased to $17.2 million, due to strong sequential growth with its largest customer.
  • LoJack U.S. SVR products revenue was $9.1 million, up 37.0% sequentially, due to an increase in product installations as U.S. auto dealerships reopened from government-imposed pandemic shutdowns.
  • Gross margin was 36.9%, reflecting the decline in Telematics Systems revenue as well as a one-time charge for the resolution of a product performance matter.
  • GAAP net loss was $9.5 million, or a loss of $0.28 per share, with adjusted basis non-GAAP net loss of $1.0 million, or a loss of $0.03 per share.
  • Operating cash flow was $8.2 million, with adjusted EBITDA of $5.4 million and an adjusted EBITDA margin of 6.5%.
  • Ended the quarter with $107.1 million in cash and cash equivalents and approximately $262.6 million in outstanding debt, including $230 million of the 2.0% Convertible Senior Notes due in August 2025.

Business and Recent Highlights

  • Received OCTANe's Best Consumer Innovation Award for Here Comes The Bus, as well as the 2020 IoT Evolution Product of the Year Award for CalAmp iOn Vision video intelligence solutions, and CalAmp iOn Suite was named to Equipment Today's 2020 Contractors' Top 50 New Products List.
  • Extended relationship with Caterpillar to accelerate migration of existing fleets to 4G LTE.
  • Announced an agreement with major Italian dealership, Maldarizzi Automotive, to install LoJack Connect on all Fiat Chrysler Automobiles (FCA), BMW and Mercedes-Benz vehicles sold by the dealership.
  • Appointed Amal Johnson as Chair of the Board and added new director, Kirsten Wolberg, who has extensive technology and operations experience in the software industry.
  • Released its highly-regarded Bus Guardian, a suite of digital solutions leveraging contact tracing and hygiene verification to help schools more safely and confidently return students to classrooms.

Summary Financial Information:








(In thousands except per share amounts)

















Three Months Ended



Six Months Ended



August 31,



August 31,


Description

2020



2019



2020



2019


Revenues:
















Software & Subscription Services

$

33,696



$

31,205



$

61,725



$

56,716


Telematics Systems
















Telematics Products


40,732




48,934




86,271




100,132


LoJack U.S. SVR Products


9,109




13,097




15,756




25,458



$

83,537



$

93,236



$

163,752



$

182,306


Gross margin


37

%



40

%



38

%



40

%

















Net loss

$

(9,478)



$

(7,369)



$

(23,900)



$

(16,062)


Net loss per diluted share

$

(0.28)



$

(0.22)



$

(0.70)



$

(0.48)


Non-GAAP measures:
















Adjusted basis net income (loss)

$

(1,025)



$

4,757



$

(473)



$

8,925


Adjusted basis net income (loss) per diluted share

$

(0.03)



$

0.14



$

(0.01)



$

0.26


Adjusted EBITDA

$

5,403



$

10,647



$

11,910



$

18,216


Adjusted EBITDA margin


6

%



11

%



7

%



10

%


































August 31,



February 29,










Description

2020



2020










Cash and cash equivalents

$

107,145



$

107,404










Working capital


128,284




116,391










Deferred revenue


60,105




62,156










Total debt (carrying value)


204,466




210,207










Third Quarter Fiscal 2021 Business Outlook

The Company is maintaining its policy of not providing quarterly guidance as visibility into customer demand and product shipments remains uncertain due to the ongoing effects of the COVID-19 pandemic.

Conference Call and Webcast

CalAmp is hosting a conference call for analysts and investors to discuss its second quarter fiscal year 2021 results at 1:30 p.m. Pacific Time today.  Participants can listen in via webcast by visiting the Investor Relations section of our website at www.calamp.com. Please go to the website at least 15 minutes early to register, download and install any necessary audio software. A replay of the webcast will be available for 90 days after the call.  The conference call can also be accessed by dialing 833-714-0868 (+1-778-560-2625 for international callers) and using the Conference ID # 5650228. Following the call, an audio replay will also be available by calling 800-585-8367 or +1-416-621-4642 and entering the Conference ID# 5650228. The audio replay will be available through October 1, 2020.

About CalAmp

CalAmp (Nasdaq: CAMP) is a global technology solutions pioneer transforming the mobile connected economy. We help reinvent business and improve lives around the globe with technology solutions that streamline complex mobile IoT deployments and bring intelligence to the edge. Our software and subscription-based services, scalable cloud platform and intelligent devices collect and assess business-critical data from mobile assets and their contents. We call this The New How, facilitating efficient decision making, optimizing mobile asset utilization and improving road safety. CalAmp, headquartered in Irvine, California, has been publicly traded since 1983 and has 20 million products installed and over 1.3 million software and services subscribers worldwide. LoJack®,Tracker™ and Here Comes The Bus® and Bus Guardian are CalAmp brands. 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; our ability to successfully and timely accomplish our transformation to a SaaS company; our transition out of the automotive vehicle financing business; competitive pressures; pricing declines; demand for our MRM products; rates of growth in our target markets; prolonged disruptions of our contract manufacturers' facilities or other significant operations; the ongoing diversification of our global supply chain; our dependence on outsourced service providers for certain key business services and their ability to execute to our requirements; our ability to improve gross margin; cost-containment measures; legislative, trade, tariff, and regulatory actions; integration, unexpected charges or expenses in connection with our recent acquisitions; the impact of legal proceedings and compliance risks; implementation of our new ERP system; the impact on our business and reputation from information technology system failures, network disruptions 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 (loss), Adjusted basis net income (loss) 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 loss 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 assets 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 loss and certain other adjustments as shown in the non-GAAP reconciliation provided in the table at the end of this announcement.  We use these non-GAAP financial measures to provide investors with additional information about our financial performance and future prospects of our core business activities. Internally, these non-GAAP measures are significant measures used by management for purposes of evaluating our core operating performance, establishing internal budgets, calculating return on investment for development programs and growth initiatives, comparing performance with internal forecasts and targeted business models, strategic planning, evaluating and valuing potential acquisition candidates and how their operations compare to our operations, and benchmarking performance externally against our competitors. We believe this non-GAAP financial information provides additional insight into our ongoing performance and have therefore chosen to provide this information to investors to help them evaluate our results of ongoing operations and enable additional period-to-period comparisons. The presentation of these and other similar items in our non-GAAP financial results should not be interpreted as implying that these items are non-recurring, infrequent, or unusual.

CalAmp, LoJack, TRACKER, Here Comes The Bus, Bus Guardian, iOn Vision and associated logos are among the trademarks of CalAmp and/or its affiliates in the United States, certain other countries and/or the EU. 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,




2020




2019




2020




2019






















Revenues

$


83,537



$


93,236



$


163,752



$


182,306


Cost of revenues



52,727





55,566





101,889





109,225


Gross profit



30,810





37,670





61,863





73,081


Operating expenses:




















Research and development



6,989





7,924





13,313





14,810


Selling and marketing



13,493





15,868





26,379





30,515


General and administrative



13,899





12,893





27,568





30,377


Intangible asset amortization



1,844





3,318





3,736





6,358


Restructuring



551





2,272





2,459





2,272


Impairment loss



286





-





4,575





-





37,062





42,275





78,030





84,332


Operating loss



(6,252)





(4,605)





(16,167)





(11,251)


Non-operating income (expense):




















Investment income



680





1,256





698





3,337


Interest expense



(3,857)





(5,555)





(7,934)





(11,011)


Other expense



217





193





9





(206)





(2,960)





(4,106)





(7,227)





(7,880)


Loss before income taxes and impairment loss in investment of affiliate



(9,212)





(8,711)





(23,394)





(19,131)


Income tax benefit (provision)



(266)





1,342





(506)





3,599


Loss before impairment loss in investment of affiliate



(9,478)





(7,369)





(23,900)





(15,532)


Impairment loss in investment of affiliate



-





-





-





(530)


Net loss

$


(9,478)



$


(7,369)



$


(23,900)



$


(16,062)


Loss per share:




















  Basic

$


(0.28)



$


(0.22)



$


(0.70)



$


(0.48)


  Diluted

$


(0.28)



$


(0.22)



$


(0.70)



$


(0.48)






















Shares used in computing loss per share:




















  Basic



34,256





33,568





34,140





33,475


  Diluted



34,256





33,568





34,140





33,475






















- more -


 

 

CALAMP CORP.


CONDENSED CONSOLIDATED BALANCE SHEETS


(Amounts in thousands)


(Unaudited)






August 31,



February 29,






2020



2020


                                Assets
























Current assets:













  Cash and cash equivalents




$


107,145



$


107,404


  Accounts receivable, net






68,387





72,273


  Inventories






31,495





36,778


  Prepaid expenses and other current assets






24,274





21,411


       Total current assets






231,301





237,866















Property and equipment, net






53,640





55,878


Operating lease right-of-use assets






23,428





20,626


Deferred income tax assets






4,565





4,437


Goodwill






102,162





106,335


Other intangible assets, net






41,404





45,895


Other assets






25,032





24,768



















$


481,532



$


495,805















                      Liabilities and Stockholders' Equity


























Current liabilities:













  Current portion of long-term debt




$


5,184



$


33,119


  Accounts payable






31,214





28,450


  Accrued payroll and employee benefits






10,599





9,049


  Deferred revenue






35,001





34,704


  Other current liabilities






21,019





16,153


      Total current liabilities






103,017





121,475















Long-term debt, net of current portion






199,282





177,088


Operating lease liabilities






25,225





24,279


Other non-current liabilities






35,030





35,044















Stockholders' equity:













  Common stock






350





343


  Additional paid-in capital






226,368





220,482


  Accumulated deficit






(105,565)





(81,531)


  Accumulated other comprehensive loss






(2,175)





(1,375)


      Total stockholders' equity






118,978





137,919






$


481,532



$


495,805















- more -


 

 


CALAMP CORP.



CONDENSED CONSOLIDATED CASH FLOW STATEMENTS



(Amounts in thousands)



(Unaudited)















Six Months Ended




August 31,





2020




2019


CASH FLOWS FROM OPERATING ACTIVITIES:











Net loss

$


(23,900)



$


(16,062)



Depreciation



9,983





9,036



Intangible asset amortization expense



3,736





6,358



Stock-based compensation expense



6,469





5,726



Amortization of debt issue costs and discount



5,219





7,606



Impairment losses



4,575





1,210



Noncash operating lease cost



2,588





3,100



Revenue assigned to factors



(3,349)





(3,109)



Deferred tax assets, net



(105)





(3,437)



Other



301





986



Changes in operating assets and liabilities



8,604





(11,794)


NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES



14,121





(380)













CASH FLOWS FROM INVESTING ACTIVITIES:











Proceeds from maturities and sale of marketable securities



6,264





27,340



Purchases of marketable securities



(6,264)





(17,617)



Capital expenditures



(7,563)





(10,720)



Acquisition, net of cash acquired



-





(60,634)



Other



-





(527)


NET CASH USED IN INVESTING ACTIVITIES



(7,563)





(62,158)













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



20,000





-



Repayment of 2020 Convertible Notes



(27,599)





-



Payments of issuance cost of the revolving credit facility



(56)





-



Taxes paid related to net share settlement of vested equity awards



(1,485)





(1,729)



Proceeds from exercise of stock options and contributions to ESPP



909





995


NET CASH USED IN FINANCING ACTIVITIES



(8,231)





(734)













EFFECT OF EXCHANGE RATE CHANGE ON CASH



1,414





456


Net change in cash and cash equivalents



(259)





(62,816)


Cash and cash equivalents at beginning of period



107,404





256,500


Cash and cash equivalents at end of period

$


107,145



$


193,684


 

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 (loss), Adjusted basis net income (loss) per diluted share, Adjusted EBITDA (Earnings Before Investment Income, Interest Expense, Taxes, Depreciation, Amortization and stock-based compensation, impairment loss and other adjustments as identified below), and Adjusted EBITDA margin. We use these non-GAAP financial measures to provide investors with an overall understanding of the financial performance and future prospects of our core business activities. Specifically, we believe that the use of these non-GAAP measures facilitates the comparison of results of core business operations between its 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,



2020



2019



2020



2019


GAAP basis net loss

$


(9,478)



$


(7,369)



$


(23,900)



$


(16,062)






















Intangible assets amortization expense



1,844





3,318





3,736





6,358


Stock-based compensation expense



2,846





3,183





5,594





5,726


Non-cash interest expense



2,466





3,863





5,219





7,606


GAAP basis income tax provision (benefit)



266





(1,342)





506





(3,599)


Acquisition and integration related expenses



-





46





-





1,190


Litigation and non-recurring legal expenses



170





777





963





4,584


Impairment loss



286





-





4,575





-


Restructuring



551





2,272





2,459





2,272


Other



174





459





655





1,450


Adjusted basis income (loss) before income taxes



(875)





5,207





(193)





9,525


Income tax provision (non-GAAP basis) (a)



(150)





(450)





(280)





(600)


Adjusted basis net income (loss)

$


(1,025)



$


4,757



$


(473)



$


8,925






















Adjusted basis net income (loss) per diluted share

$


(0.03)



$


0.14



$


(0.01)



$


0.26






















Weighted average common shares outstanding on a diluted basis



34,256





33,799





34,140





33,766






















Other favorable (unfavorable) impacts to Adjusted basis net income (loss) (b)




















Deferred revenue purchase accounting adjustment

$


(816)



$


(2,524)



$


(1,757)



$


(5,198)


Resolution of a product performance matter



(1,400)





-





(1,400)





-


Inventory excess and obsolescence



-





-





(596)





-


Total other favorable (unfavorable) impacts to Adjusted basis net income (loss)

$


(2,216)



$


(2,524)



$


(3,753)



$


(5,198)


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,



2020



2019



2020



2019






















GAAP basis net income (loss)

$


(9,478)



$


(7,369)



$


(23,900)



$


(16,062)






















Investment income



(680)





(1,256)





(698)





(3,337)


Interest expense



3,857





5,555





7,934





11,011


Income tax provision (benefit)



266





(1,342)





506





(3,599)


Depreciation and amortization



6,917





8,509





13,719





15,394


Stock-based compensation



2,846





3,183





5,594





5,726


Acquisition and integration related expenses



-





46





-





1,190


Litigation and non-recurring legal expenses



170





777





963





4,584


Impairment loss



286





-





4,575





-


Restructuring



551





2,272





2,459





2,272


Other



668





272





758





1,037


Adjusted EBITDA

$


5,403



$


10,647



$


11,910



$


18,216






















Other favorable (unfavorable) impacts to Adjusted EBITDA (b)




















Deferred revenue purchase accounting adjustment

$


(816)



$


(2,524)



$


(1,757)



$


(5,198)


Resolution of a product performance matter



(1,400)





-





(1,400)





-


Inventory excess and obsolescence



-





-





(596)





-


Total other favorable (unfavorable) impacts to Adjusted EBITDA

$


(2,216)



$


(2,524)



$


(3,753)



$


(5,198)






















Revenue

$


83,537



$


93,236



$


163,752



$


182,306






















Adjusted EBITDA margin



6

%




11

%




7

%




10

%

 

(a)    

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

(b)    

Other favorable (unfavorable) impacts to Adjusted basis net income (loss) 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 adjustment 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 financing business that are obsolete or in excess of demand forecast.

 

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/calamp-reports-fiscal-2021-second-quarter-financial-results-301137845.html

SOURCE CalAmp

Categories: Press Releases
View all Press Releases