ACQUISITIONS (Tables)

12 Months Ended

Feb. 28, 2017

The following is the final purchase price allocation for LoJack (in thousands):

Purchase price				$	131,735
Less cash acquired, net of debt assumed					(9,303	)
Net cash paid					122,432
Fair value of net assets acquired:
Current assets other than cash	$	41,214
Property and equipment		11,910
Developed technology		8,200
Tradename		35,500
Customer lists		4,650
Dealer relationships		16,850
Other non-current assets		4,208
Deferred tax liability		(5,466	)
Current liabilities		(37,647	)
Deferred revenue, non-current		(10,883	)
Other non-current liabilities		(2,576	)
Total fair value of net assets acquired					65,960
Goodwill				$	56,472

Summary of Pro Forma Information

The following is unaudited pro forma consolidated financial information for the Company presented as if the acquisition of LoJack had occurred on March 1, 2015, the beginning of the Company’s prior fiscal year (in thousands except per share amounts).

	Pro Forma
	Year Ended February 28,
	2017		2016
Revenues	$	356,357	$	408,464
Net income	$	1,132	$	5,069
Earnings per share:
Basic	$	0.03	$	0.14
Diluted	$	0.03	$	0.14
Shares used in computing earnings per share:
Basic		35,917		36,448
Diluted		36,397		36,950

Schedule of Adjustments

The following adjustments were included in the unaudited pro forma financial information (in thousands):

	Year Ended February 28,
	2017			2016
LoJack standalone net income:
From March 1 to March 14, 2016	$	973		$	-
For the year ended December 31, 2015		-			3,197
Increase (decrease) in revenue for fair valuation of
deferred revenue		1,807			(1,807	)
(Increase) decrease in costs and expenses:
Amortization of inventory step-up		4,339			(4,339	)
Amortization of intangible assets and depreciation of
property, equipment and improvements acquired		(309	)		(7,402	)
Acquisition and integration expenses		4,513			(4,168	)
Net increase (decrease) in pretax income (loss)		11,323			(14,519	)
Income tax effects		(2,287	)		2,648
Change in net income (loss)		9,036			(11,871	)
Net income (loss) as reported		(7,904	)		16,940
Pro forma net income	$	1,132		$	5,069