8-K

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): May 1, 2014

LOJACK CORPORATION

(Exact Name of Registrant as Specified in Its Charter)

Massachusetts

(State or Other Jurisdiction of Incorporation)

1-8439	04-2664794
(Commission File Number)	(IRS Employer Identification No.)

40 Pequot Way, Canton, Massachusetts	02021
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: 781-302-4200

Not Applicable

(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.

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

On May 1, 2014, LoJack Corporation, or the Company, issued a press release setting forth the Company’s results of operations and financial condition for the period ended March 31, 2014. A copy of the Company’s press release is furnished as Exhibit 99.1. Concurrent with the issuance of the press release, an investor presentation was provided on the Company's website that accompanies the Company's conference call to discuss the results. A copy of the presentation is furnished as Exhibit 99.2.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

99.1    Press Release, dated May 1, 2014.

99.2    Investor Presentation, dated May 1, 2014.

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 thereunto duly authorized.

		LoJack Corporation Registrant
Date:	May 1, 2014	By:	/s/    DONALD R. PECK
			Donald R. Peck
			Executive Vice President, Chief Financial Officer

EX-99.1

Contacts:

Donald R. Peck	Scott Solomon
Executive Vice President and	Vice President
Chief Financial Officer	Sharon Merrill Associates
LoJack Corporation	(617) 542-5300
(781) 302-4200	LOJN@investorrelations.com

LoJack Reports Financial Results for the First Quarter of 2014

• Domestic Stolen Vehicle Recovery unit volume outpaces U.S. retail auto industry for the sixth consecutive quarter

• Company continues to achieve corporate gross margin goal of 50%

• International Licensee revenue down 6% as Company awaits resumption of sales to Argentina

• LoJack maintains full year 2014 guidance

CANTON, Mass. - May 1, 2014 -LoJack Corporation (NASDAQ: LOJN) today announced revenue of $30.1 million for the quarter ended March 31, 2014 compared with $31.2 million for the same period in 2013. The net loss attributable to the Company was $5.5 million, or $0.31 per share, for the first quarter of 2014 compared with a net loss attributable to LoJack of $5.7 million, or $0.32 per share, for the first quarter of 2013.

“Despite the well documented automotive headwinds during the first quarter, the growth of our domestic stolen vehicle recovery (SVR) unit volume still outpaced the growth of the broader U.S. retail auto industry,” said LoJack Chief Executive Officer and President Randy Ortiz. “SVR unit volume increased 5.2% year-over-year in the first quarter versus an increase of 3.6% for the domestic industry as a whole. Through the first quarter of 2014, we have outperformed the broader auto market for 18 consecutive months.

“Demand began to accelerate again in the latter half of March as the weather improved, and that positive trend has continued. As a result, we believe that any weather-related impact to sales in January and February was temporary, and that those sales will shift into the second quarter and the balance of 2014.”

LoJack recorded consolidated gross profit for the first quarter of 2014 of $15.1 million, or 50.1% of revenue, compared with consolidated gross profit of $16.5 million, or 52.8% of revenue, for the same period of 2013. The decrease in consolidated gross profit was primarily related to product mix.

Total operating expenses for the first quarter of 2014 were $20.5 million, or 68% of revenue, compared with $22.1 million, or 71% of revenue, for the comparable period of 2013. Higher operating expenses in the 2013 period were associated primarily with legal expenses related to a pending arbitration case with the Company’s Brazilian licensee.

Adjusted EBITDA for the first quarter of 2014, which excludes the items reflected in Table 1, was a loss of $3.9 million compared with a loss of $4.1 million for the same period of 2013.

Cash and cash equivalents at March 31, 2014 were $25.4 million compared with $32.0 million at year-end 2013.

Fleet Telematics Update

“We have made good progress in expanding the pipeline of leads and potential units under subscription for our inaugural LoJack Fleet Management telematics product,” Ortiz said. “Our dedicated fleet sales team is now calling on prospective accounts including key verticals such as HVAC contractors, construction companies and media organizations. In addition, our LoJack sales team has launched the LoJack Dealer Referral program. Fleet telematics is a large, under penetrated and highly fragmented market. We believe that we have the brand recognition, distribution network and infrastructure plan to aggressively grow this business.”

Infrastructure Investment

“We also continued to build the systems infrastructure to support a Software-as-a-Service (SaaS) subscription-based revenue model and broaden our product mix to include fleet telematics and other “connected car” offerings that complement our leadership in SVR,” Ortiz said. “As a critical element in this strategy, throughout 2014 we are preparing to launch a new Enterprise Resource Planning system. This new system will enable us to efficiently scale our pre-install business and facilitate telematics growth by providing the tools necessary to quickly analyze large sets of data, optimize our distribution and share real-time information with customers. Ultimately, the goal is to deliver the highest value products and services for the safety, security and protection of consumers.”

Business Outlook

LoJack continues to expect revenue for the 12 months ending December 31, 2014 to increase 8% to 10% over revenue for the comparable period of 2013. Based on planned investments to develop and grow its connected car business, the Company expects full-year adjusted EBITDA in the range of 5% to 7% of 2014 revenue.

Webcast Details

Randy Ortiz, chief executive officer and president, and Donald R. Peck, executive vice president and chief financial officer, will host a conference call and webcast at 8:30 a.m. ET today to discuss details of the Company’s performance for the quarter and the business outlook. The webcast can be accessed by logging on to http://investors.lojack.com/events.cfm.You also can hear the live call by dialing 877-868-1835 (domestic) or 914-495-8581 (international) and using conference ID 23971023.The presentation slides that will be discussed on the conference call are expected to be available this morning, prior to the start of the call. The slides may be downloaded from the Investor Relations section of the LoJack website. An archive of the webcast will be available after the call concludes.

About LoJack Corporation

LoJack Corporation, the company that has helped more than nine million people protect their vehicles in the event of theft over the past 25+ years, today provides safety, security and protection for an ever-growing range of valuable assets and people. Leveraging its core strengths, including its well-known brand, direct integration with law enforcement and Dealer distribution network, LoJack Corporation is expanding into new areas across the continuum from theft deterrence to recovery. The Company is focusing on creating a new level of value for its Dealer, customer and investor communities by delivering innovative offerings and multiple technologies in expanding geographies. For more information, visit www.lojack.com, www.autotheftblog.com, www.youtube.com/lojack, www.twitter.com/LoJackCorp,orwww.Facebook.com/LoJackCorp.

Use of Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this press release also contains the non-GAAP financial measure, adjusted EBITDA. The Company believes that the inclusion of this non-GAAP financial measure in this press release helps investors to gain a meaningful understanding of changes in the Company's core operating results, and can also help investors who wish to make comparisons between LoJack and other companies on both a GAAP and a non-GAAP

basis. LoJack management uses this non-GAAP measure, in addition to GAAP financial measures, as the basis for measuring our core operating performance and comparing such performance to that of prior periods and to the performance of our competitors. These measures are also used by management to assist with their financial and operating decision making.

The non-GAAP financial measures included in this press release are not meant to be considered superior to or a substitute for results of operations prepared in accordance with GAAP. In addition, the non-GAAP financial measures included in this press release may be different from, and therefore may not be comparable to, similar measures used by other companies. Reconciliations of the non-GAAP financial measures used in this press release to the most directly comparable GAAP financial measures are set forth in the text of, and the accompanying tables to, this press release.

Safe Harbor Regarding Forward Looking Statements

From time to time, information provided by the Company or statements made by its employees may contain "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws, which involve risks and uncertainties. You can identify these statements by use of the words "assumes," "believes," "estimates," "expects," "will," "intends," "plans," "projects" and similar expressions that do not relate to historical matters. Any statements in this news release that are not statements of historical fact are forward-looking statements, including, but not limited to, statements concerning (a) the Company's markets, including the domestic auto market and international markets, (b) the Company's strategic initiatives, investments and plans for growth and future operations, including with respect to the Company's expansion into telematics and the connected car, (c) the Company's pre-install program and expected unit growth, (d) the development of new products and services, including telematics solutions and (e) the Company's future financial performance, including expected revenue and adjusted EBITDA for the full year. Such forward-looking statements are based on a number of assumptions and involve a number of risks and uncertainties, and accordingly, actual results could differ materially. Factors that may cause such differences include, but are not limited to: (1) the continued and future acceptance of the Company's products and services, including the Company's pre-install program and fleet management and other telematics products; (2) the Company's ability to obtain financing from lenders; (3) the outcome of ongoing litigation involving the Company; (4) the rate of growth in the industries of the Company's customers; (5) the presence of competitors with greater technical, marketing, and financial resources; (6) the Company's customers' ability to access the credit markets, including changes in interest rates; (7) the Company's ability to promptly and effectively respond to technological change to meet evolving customer needs; (8) the Company's ability to successfully expand its operations, including through the introduction of new products and services; (9) changes in general economic or geopolitical conditions, including the European debt crisis; (10) conditions in the automotive retail market and the Company's relationships with dealers, licensees, partners, agents and local law enforcement; (11) the expected timing of purchases by the Company's customers; (12) the Company's ability to achieve the expected benefits of its strategic alliance with TomTom; (13) the Company's ability to maintain the strength of its brand; and (14) trade tensions and governmental regulations and restrictions in Argentina and the Company's other international markets. For a further discussion of these and other significant factors to consider in connection with forward-looking statements concerning the Company, reference is made to the Company's Annual Report on Form 10-K for the year ended December 31, 2013 and the Company's other filings with the Securities and Exchange Commission.

Readers should not place undue reliance on any forward-looking statements, which only speak as of the date made. Except as required by law, the Company undertakes no obligation to release publicly the result of any revision to the forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Table 1 – Adjusted EBITDA Computation

GAAP to Pro Forma Non-GAAP Reconciliation

(in thousands)

			Three Months Ended		Three Months Ended
			March 31, 2014		March 31, 2013
			$		$
Net loss, as reported			(5,539	)	(5,636	)
	Adjusted for:
		Provision (benefit) income taxes	37		(74	)
		Other income (expense)	(119	)	(76	)
Operating loss			(5,383	)	(5,634	)
	Adjusted for:
		Depreciation and amortization	988		1,129
		Stock compensation expense	524		422
Adjusted EBITDA			(3,871	)	(4,083	)

LoJack Corporation and Subsidiaries

Condensed Consolidated Statement of Operations

(in thousands, except share and per share amounts)

	Three Months Ended
	March 31,
	2014			2013
	(unaudited)
Revenue	$	30,132		$	31,220
Cost of goods sold	15,039			14,748
Gross profit	15,093			16,472
Costs and expenses:
Product development	1,553			1,442
Sales and marketing	8,596			8,278
General and administrative	9,402			11,321
Depreciation and amortization	925			1,065
Total	20,476			22,106
Operating loss	(5,383		)	(5,634		)
Other income (expense):
Interest income	2			21
Interest expense	(107		)	(198		)
Other, net	(14		)	101
Total	(119		)	(76		)
Loss before provision (benefit) for income taxes	(5,502		)	(5,710		)
Provision (benefit) for income taxes	37			(74		)
Net loss	(5,539		)	(5,636		)
Net income (loss) attributable to noncontrolling interest in consolidated subsidiary	(51		)	39
Net loss attributable to LoJack Corporation	$	(5,488	)	$	(5,675	)
Net loss per diluted share attributable to LoJack Corporation	$	(0.31	)	$	(0.32	)
Weighted average diluted common shares outstanding	17,842,742			17,591,344

LoJack Corporation and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands)

	March 31, 2014			December 31, 2013
	(unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	25,434		$	31,983
Restricted cash	47			47
Marketable securities at fair value	—			—
Accounts receivable, net of allowances of $1,958 and $2,023, respectively	23,021			26,525
Inventories	8,577			7,226
Prepaid and other expenses	3,984			2,253
Prepaid and receivable income taxes	173			186
Deferred income taxes	186			10
Total current assets	61,422			68,230
PROPERTY AND EQUIPMENT, net of accumulated depreciation of $49,993 and $49,235, respectively	12,970			12,600
DEFERRED INCOME TAXES	—			—
INTANGIBLE ASSETS—NET	88			90
GOODWILL	1,245			1,245
OTHER ASSETS—NET	4,403			4,611
TOTAL ASSETS	$	80,128		$	86,776
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Short term debt	$	274		$	274
Accounts payable	5,640			6,875
Accrued and other liabilities	7,064			9,048
Current portion of deferred revenue	9,840			10,270
Accrued compensation	4,159			6,227
Total current liabilities	26,977			32,694
LONG TERM DEBT	10,000			6,000
DEFERRED REVENUE	10,203			10,648
DEFERRED INCOME TAXES	186			10
OTHER ACCRUED LIABILITIES	84			84
ACCRUED COMPENSATION	1,309			1,331
Total liabilities	48,759			50,767
COMMITMENTS AND CONTINGENT LIABILITIES	—			—
EQUITY:
Preferred stock—$.01 par value; authorized, 10,000,000 shares	—			—
Common stock—$.01 par value; authorized, 35,000,000 shares; issued and outstanding 18,511,107 at March 31, 2014 and 18,741,253 at December 31, 2013	185			187
Additional paid-in capital	25,722			25,022
Accumulated other comprehensive income	7,077			6,875
Retained earnings (accumulated deficit)	(1,584		)	3,904
Total LoJack Corporation equity	31,400			35,988
Noncontrolling interest in subsidiary	(31		)	21
Total equity	31,369			36,009
TOTAL LIABILITIES AND EQUITY	$	80,128		$	86,776

EX-99.2

May 1, 2014

Forward-looking Statements Statements in this presentation that are not statements of historical fact are forward-looking statements. Such forward-looking statements, which include statements regarding the Company’s strategic plans and initiatives, markets and future financial performance, are based on a number of assumptions and involve a number of risks and uncertainties, and accordingly, actual results could differ materially. Factors that may cause such differences include, but are not limited to: (1) the continued and future acceptance of the Company’s products and services, including the Company’s pre-install program and fleet management and other telematics products; (2) the Company’s ability to obtain financing from lenders; (3) the outcome of ongoing litigation involving the Company; (4) the rate of growth in the industries of the Company’s customers; (5) the presence of competitors with greater technical, marketing, and financial resources; (6) the Company’s customers’ ability to access the credit markets, including changes in interest rates; (7) the Company’s ability to promptly and effectively respond to technological change to meet evolving customer needs; (8) the Company’s ability to successfully expand its operations, including through the introduction of new products and services; (9) changes in general economic or geopolitical conditions, including the European debt crisis; (10) conditions in the automotive retail market and the Company’s relationships with dealers, licensees, partners, agents and local law enforcement; (11) the expected timing of purchases by the Company’s customers; (12) the Company’s ability to achieve the expected benefits of its strategic alliance with TomTom; (13) the Company’s ability to maintain the strength of its brand; (14) financial and reputational risks related to product quality and liability issues; and (15) trade tensions and governmental regulations and restrictions in Argentina and the Company’s other international markets. For a further discussion of these and other significant factors to consider in connection with forward-looking statements concerning the Company, reference is made to the Company's Annual Report on Form 10-K for the year ended December 31, 2013 and the Company's other filings with the Securities and Exchange Commission. Such forward-looking statements speak only as of the date made. Except as required by law, the Company undertakes no obligation to update these forward-looking statements.

In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this presentation also contains the non-GAAP financial measure, adjusted EBITDA. The Company believes that the inclusion of this non-GAAP financial measure in this presentation helps investors to gain a meaningful understanding of changes in the Company's core operating results, and can also help investors who wish to make comparisons between LoJack and other companies on both a GAAP and a non-GAAP basis. LoJack management uses this non-GAAP measure, in addition to GAAP financial measures, as the basis for measuring our core operating performance and comparing such performance to that of prior periods and to the performance of our competitors. These measures are also used by management to assist with their financial and operating decision making. The non-GAAP financial measures included in this presentation are not meant to be considered superior to or a substitute for results of operations prepared in accordance with GAAP. In addition, the non-GAAP financial measures included in this presentation may be different from, and therefore may not be comparable to, similar measures used by other companies. Reconciliations of the non- GAAP financial measures used in this presentation to the most directly comparable GAAP financial measures are set forth in the accompanying appendix to this presentation. Use of Non-GAAP Financial Measures

Q1 Overview • Severe weather in January and February briefly slowed the pace of U.S. retail automotive sales • Despite automotive headwinds, U.S. dealer product revenues up 1% in Q1 • Domestic SVR volume continues to outpace the broader U.S. retail auto market • Gross margin remains strong at 50% • Pace of growth has picked up as the weather has improved

Industry Sales Regained Momentum in March “…Beau Boeckmann, vice president of Galpin Motors, which operates dealerships in Southern California, described the last weekend of March as ‘absolutely crazy’ in terms of sales. ‘It was a signal of the strength of the market and the economy,’ he said.” Sources: The Wall Street Journal, April 1st, 2014 J.D. Power and LMC Automotive Press Releases The Wall Street Journal – April 1st, 2014 100.4% 102.0% 107.2% 96% 98% 100% 102% 104% 106% 108% Jan-14 Feb-14 Mar-14 Retail Light Vehicle Sales Volume Growth Index vs. Prior Year 12.81 12.36 13.03 12.2 12.4 12.6 12.8 13.0 13.2 Jan-14 Feb-14 Mar-14 M ill io n s o f V eh ic le s Retail Light Vehicle SAAR

Demand for Autos Continues in 2014 A slow start to 2014, but expectations continue to grow for the full year Source: J.D. Power and LMC Automotive Press Release, LoJack Corporation 12.8M 10.6M 8.6M 9.2M 10.3M 11.7M 12.8M 13.4M 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 14.0 2007 2008 2009 2010 2011 2012 2013 2014 F'cst Li gh t V eh ic le S al es ( M ill io n s) Retail U.S. Light Vehicle Sales (2007 to 2014E) -2% -17% -19% +6% +12% +10% +4% -19% +6% +14% Forecast at January ’14 13.31 million Forecast at April ’14 13.42 million

Sales Growth Expected to Accelerate 10.6% 8.8% 3.6% 14.6% 9.7% 4.3% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 2012 2013 2014 Forecast Retail U.S. Light Vehicle Sales Growth (Y/Y) Q1 Back 9 Months - Retail sales growth has accelerated during last nine months of 2012 and 2013 - Industry forecast implies a continuation of this trend in 2014 Source: J.D. Power and LMC Automotive Press Release, LoJack Corporation

70% 80% 90% 100% 110% 120% 130% 140% Auto Sales Volume - Retail (Index Y/Y) LoJack Dealer Channel Volume (Index Y/Y) LoJack: 6 consecutive Quarters Above Retail Industry Growth …Even as Prior Year Comps Increase Source: J.D. Power and LMC Automotive Press Release, LoJack Corporation 6 Consecutive Quarters Above Industry Retail Growth Retail Car Sales vs. LoJack Dealer Sales (Index vs. PY Quarter) 1Q 2014 - Retail Light Vehicle Sales Growth +3.6% - LoJack Dealer Channel Volume Growth +5.2% +8% +14% +21% +20% Growth well above industry in 2013 levying higher comps in 2014

Q1 Saw Higher Dealer Inventory Levels 40 50 60 70 80 90 100 New Cars Inventories: Days Supply Past 12 Months Days Supply (Cars) Standard Inventory level (60 Days) Source: Automotive News - Q1 realized higher than optimal inventory dealership inventory levels - Recent data indicates that lot inventories are returning to acceptable levels

Rail Backups Delayed Deliveries in Q1 “New cars and trucks—including some of the season's hottest sellers—are stacked up outside U.S. factories as auto makers and railroads struggle to overcome delays brought on by winter weather and the rise of production outside the Midwest…” The logjams have left dealers short of some popular models, such as the Ford Explorer sport-utility vehicle and Toyota RAV4, ahead of the biggest months of the year for new-car sales…” Updated April 23, 2014 6:43 p.m. ET Source: The Wall Street Journal The Wall Street Journal – April 23rd, 2014

31% 32% 34% 43% 44% 45% 46% 51% 52% 0% 10% 20% 30% 40% 50% 60% Advancing the Pre-Install Strategy Pre-Install Program Sales Mix % Share of Dealer Channel Volume LoJack continues to lay the foundation for stable recurring revenue

Commercial Segment • 5% unit growth in Q1 2014 vs. Q1 2013 • 32% unit growth during past twelve months • Continue to build strong relationships with largest construction equipment rental companies • Spring warm-up expected to create meaningful rebound in construction activity

Continued Progress on Telematics Initiative • Expect 2014 to be a year of investment as we transition to enable new subscription-driven (SaaS) business models • Ramping sales program • Expanding pipeline of prospective customers for LoJack Fleet Management • Demonstrating cost efficiencies for fleet companies • Leveraging brand elasticity, dealer network, distribution capabilities and strong ties with law enforcement

0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 Te le m at ics Un it s In st al le d (0 0 0 s) LoJack Fleet Management Source: C.J Driscoll & Associates Local Fleets: Opportunity in an Underpenetrated Addressable Market Local Fleet Management Market – Telematics Units Installed Estimates • Addressable Market Estimated at 14 million • Approximately 3.5 million Units currently in service • As of the end of 2013, penetration of the local fleet market was estimated at 25%—leaving a large portion of the addressable market still untapped.

Expanding Our Expertise in Fleet & Commercial Welcoming Joe Castelli to the LoJack Team: • Joe Castelli is joining LoJack as Vice President, LoJack Fleet and Commercial Operations • Mr. Castelli has 30 years of automotive, fleet and commercial sales experience with global companies, brands and markets • Previously the Vice President, Commercial Vehicles & Fleet, for Nissan North America, Inc. • Prior to joining the Nissan North America executive team, Mr. Castelli spent more than 23 years at Ford Motor Company where he was responsible for expanding the company's market share of light, medium and heavy duty trucks.

Q1 Revenues ($ in millions) Q1 2014 Q1 2013 % change Consolidated revenues $ 30.1 $ 31.2 (3%) U.S. revenues $ 21.1 $ 21.6 (3%) International licensees $ 5.4 $ 5.7 (5%) Canada $ 1.5 $ 1.9 (21%) Italy $ 1.1 $ 0.8 34% All other $ 1.0 $ 1.1 (10%) • U.S. dealer product revenues up 1% on 5.2% increase in unit volume • Pre-installs represented 52% of U.S. unit sales vs. 44% in Q1 2013 • Larger percentage of pre-installs enables fixed costs to be spread over increased unit volumes

Q1 Consolidated Results Highlights $ in millions, except per share data Q114 Q113 Revenue $ 30,132 $ 31,220 Y/Y change (3.5%) Gross profit 15,094 16,472 Y/Y change (8.4%) Gross profit margin 50.1% 52.8% Operating expenses 20,476 22,106 Adjusted EBITDA* (3,871) (4,083) Y/Y change (5.2%) Operating loss (5,383) (5,634) Y/Y change (4.5%) Net loss attributable to LoJack Corporation $ (5,488) $ (5,675) Net loss per diluted share $ (0.31) $ (0.32) *Please refer to Appendix for reconciliation of non-GAAP items

Balance Sheet Highlights ($ in millions) Mar. 31, 2014 Dec. 31, 2013 Cash and cash equivalents $ 25.4 $ 32.0 Accounts receivable, net $ 23.0 $ 26.5 Inventories $ 8.6 $ 7.2 Total assets $ 80.1 $ 86.8 Long-term debt $ 10.0 $ 6.0 Deferred revenue, current portion $ 9.8 $ 10.3 Deferred revenue, long term $ 10.2 $ 10.6 Total liabilities $ 48.8 $ 50.8 Total equity $ 31.4 $ 36.0

2014 Guidance • Continued growth of base stolen vehicle recovery business in the U.S. and internationally • Full-year revenue growth in the range of 8-10% • International revenues could be lumpy; ongoing trade restrictions in Argentina could hamper ability to ship product there • Continued investments to expand beyond stolen vehicle recovery to initiatives focused on the connected car • Continued implementation of ERP system to support subscription- based business and broaden telematics offerings • Full-year adjusted EBITDA in the range of 5-7% of revenues

Summary • Pace of U.S. retail automotive growth has increased after a challenging Q1 • Domestic SVR business remains strong on the continued growth of our pre-install program • Building systems infrastructure to support a subscription-based revenue model

22

May 1, 2014

Appendix: GAAP to Pro Forma Non-GAAP Reconciliation ($ in thousands) Three Months Ended Three Months Ended March 31, 2014 March 31, 2013 $ $ Net loss, as reported (5,539 ) (5,636 ) Adjusted for: Provision (benefit) income taxes 37 (74 ) Other income (expense) (119 ) (76 ) Operating loss (5,383 ) (5,634 ) Adjusted for: Depreciation and amortization 988 1,129 Stock compensation expense 524 422 Adjusted EBITDA (3,871 ) (4,083 )