EX-99.1 2 camp-ex991_6.htm EX-99.1 camp-ex991_6.htm

Exhibit 99.1

CalAmp Reports Fiscal 2020 Second Quarter Financial Results

 

Second quarter consolidated revenue increased to $93 million, up 5% quarter-over-quarter

 

Record quarterly SaaS revenue of $31 million, up 65% year-over-year

 

IRVINE, CA, September 26, 2019 -- CalAmp (Nasdaq: CAMP), a technology solutions pioneer transforming the mobile connected economy, today reported its financial results for the fiscal 2020 second quarter ended August 31, 2019.

 

“We posted a solid quarter with consolidated revenue, adjusted EBITDA and non-GAAP EPS all within the higher end of the guidance range and further highlighted by a record quarter of Software and Subscription Services revenue that expanded to $31 million, or 33% of total revenue,” said Michael Burdiek, president and chief executive officer. “Our recent acquisitions performed well, generating both increased revenue opportunities as well as newly identified cost synergies. Additionally, we are beginning to see the benefits from the 3G to LTE transitions by our Telematics Systems customers, which helped contribute to solid bookings in the quarter. Overall, I am pleased with our progress on key initiatives as we advance our strategic transformation to a global SaaS solutions provider.”

Second Quarter Fiscal 2020 Financial Highlights

 

 

Consolidated revenue for the second quarter was $93.2 million, up 5% sequentially due to increased subscription revenue and down 3% year-over-year due to a decline in Telematics Systems product sales.

 

Software and Subscriptions Services revenue for the second quarter increased 65% year-over-year to $31.2 million, or 33% of consolidated revenue, driven by recent acquisitions coupled with LoJack® subscription services.

 

Telematics Systems revenue for the second quarter was $62 million, down 2% sequentially and 20% year-over-year as expected, principally due to a decline in Network & OEM products and MRM Telematics device revenues.

 

Worldwide subscribers increased to 1.3 million with the recent acquisitions of Tracker (UK) (Tracker), Car Track (LoJack Mexico) and Synovia Solutions, further accelerating the transition to a global software and solutions provider.

 

GAAP net loss for the second quarter was $7.4 million, or $0.22 per share, reflecting restructuring charges and purchase accounting adjustments related to the recent acquisitions.

 

Adjusted basis non-GAAP net income for the second quarter was $4.8 million, or $0.14 per diluted share, and at the high end of guidance.

 

Operating cash flow for the second quarter was $5.2 million, with Adjusted EBITDA of $10.6 million and Adjusted EBITDA margin of 11%.

 

Realigned organizational structure to generate operating expense synergies related to the recent acquisitions.

 

Business and Recent Highlights

 

 

A major global mail delivery and package shipping company is launching a new program utilizing the full stack of CalAmp SC iOn supply chain visibility services to optimize the real-time trailer routing for thousands of ad hoc shipments per month.

 

Announced a strategic partnership with Sprint to deliver intelligent telematics devices and software applications, along with CalAmp iOn™ Device as a Service (DaaS) subscription services. The partnership will expand access to CalAmp’s range of telematics services that improve operational efficiencies, secure high-value assets and drive greater profitability for Sprint’s enterprise customers.


 

CalAmp Reports Fiscal Year 2020 Second Quarter Financial Results

Page 2 of 10

 

 

Global enterprise accounts such as Caterpillar are initiating more aggressive LTE retrofit programs for existing fleets as the 3G network sunset becomes imminent.

 

Announced a partnership with Toyota Motor Italy making LoJack Italia Stolen Vehicle Recovery services available to the entire range of Toyota vehicles sold in Italy.

 

Adoption of Here Comes The Bus school bus tracking app dramatically accelerates across the U.S., now serving school districts from California, Arizona, Oregon, Minnesota and Nebraska to Indiana, Georgia, North Carolina, Pennsylvania, Virginia and New York City.

 

Tracker in the U.K. launched SmartDealer and SmartDrive telematics solutions to boost dealer profitability, enhance customer loyalty and deliver peace of mind to consumers, while generating recurring revenue from software-as-a-service (SaaS)-based subscriptions.

 

 

Summary Financial Information:

 

(In thousands except per share amounts)

 

 

 

 

 

 

 

 

Three Months Ended

 

 

August 31,

 

Description

2019

 

 

2018

 

Revenues:

 

 

 

 

 

 

 

Telematics Systems

$

62,031

 

 

$

77,100

 

Software & Subscription Services

 

31,205

 

 

 

18,937

 

 

$

93,236

 

 

$

96,037

 

Gross margin

 

40

%

 

 

41

%

 

 

 

 

 

 

 

 

Net loss

$

(7,369

)

 

$

(854

)

Net loss per diluted share

$

(0.22

)

 

$

(0.02

)

Non-GAAP measures:

 

 

 

 

 

 

 

Adjusted basis net income

$

4,757

 

 

$

10,976

 

Adjusted basis net income per diluted share

$

0.14

 

 

$

0.31

 

Adjusted EBITDA

$

10,647

 

 

$

13,689

 

Adjusted EBITDA margin

 

11

%

 

 

14

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

August 31,

 

 

February 28,

 

Description

2019

 

 

2019

 

Cash and marketable securities

$

201,473

 

 

$

274,012

 

Working capital

 

130,175

 

 

 

319,905

 

Deferred revenue

 

61,899

 

 

 

51,370

 

Total debt (carrying value)

 

300,097

 

 

 

275,905

 


 

CalAmp Reports Fiscal Year 2020 Second Quarter Financial Results

Page 3 of 10

 

 

Third Quarter Fiscal 2020 Business Outlook

 

(In thousands except per share amounts)

 

 

 

 

 

 

 

 

Range

 

Description

Low

 

 

High

 

 

 

 

 

 

 

 

 

GAAP financial information:

 

 

 

 

 

 

 

Revenues

$

92,000

 

 

$

98,000

 

Net loss per diluted share

$

(0.23

)

 

$

(0.17

)

 

 

 

 

 

 

 

 

Non-GAAP financial information:

 

 

 

 

 

 

 

Adjusted EBITDA

$

9,500

 

 

$

13,500

 

Adjusted basis net income per diluted share

$

0.11

 

 

$

0.17

 

 

 

Conference Call and Webcast

 

CalAmp is hosting a conference call for analysts and investors to discuss its second quarter fiscal 2020 results and outlook for the third quarter of fiscal 2020 at 1:30 p.m. Pacific Time today.  Participants can listen in via webcast by visiting the Investor Relations section of the 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 833-868-3300 (+1-918-398-8110 for international callers) and using the Conference ID#2990451. Following the call, an audio replay will also be available by calling 855-859-2056 or +1-404-537-3406 and entering the Conference ID#2990451. The audio replay will be available through October 3, 2019.

 

About CalAmp

 

CalAmp (Nasdaq: CAMP) is a 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. LoJack® is a brand of CalAmp and a leader in stolen vehicle recovery and innovative automotive services. 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;


 

CalAmp Reports Fiscal Year 2020 Second Quarter Financial Results

Page 4 of 10

 

competitive pressures; pricing declines; rates of growth in our target markets; prolonged disruptions of our contract manufacturers’ facilities or other significant operations; our dependence on outsourced service providers for certain key business services and their ability to execute to our requirements; our ability to maintain or improve gross margin; cost-containment measures; legislative, trade, tariffs, 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; 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. Our filings with the U.S. Securities and Exchange Commission (“SEC”), which you may obtain for free at the SEC’s website at http://www.sec.gov, discuss some of the important risk factors that may affect our business, results of operations, and financial condition.  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, 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, Adjusted basis net income 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, gain from legal settlement and certain other adjustments as detailed in the accompanying non-GAAP reconciliation), and Adjusted EBITDA margin. Adjusted basis net income 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, gain on legal settlement 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 an overall understanding of the 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 for a more consistent basis of comparison and to help them evaluate our results of ongoing operations and enable more meaningful 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. We have not included a quantitative reconciliation of our quarterly financial guidance for Adjusted EBITDA and Adjusted basis net income per diluted share to revenues and net loss per share, respectively, as the GAAP measures that we exclude from our non-GAAP financial information are difficult to reliably provide at this time without unreasonable effort.

 

 

 

 



 

CalAmp Reports Fiscal Year 2020 Second Quarter Financial Results

Page 5 of 10

 

CalAmp and LoJack and the related logos are among the trademarks of CalAmp Corp. and/or its affiliates in the United States, certain other countries, and/or the European Union. Any other trademarks or trade names mentioned are the property of their respective owners.

 

AT CALAMP:

AT SHELTON GROUP:

Kurtis Binder

Leanne K. Sievers

EVP & CFO

(949) 224.3874

ir@calamp.com

sheltonir@sheltongroup.com

 

 

 

 



 

CalAmp Reports Fiscal Year 2020 Second Quarter Financial Results

Page 6 of 10

 

 

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,

 

 

 

2019

 

 

 

2018

 

 

 

2019

 

 

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

 

93,236

 

 

$

 

96,037

 

 

$

 

182,306

 

 

$

 

190,925

 

Cost of revenues

 

 

55,566

 

 

 

 

56,216

 

 

 

 

109,225

 

 

 

 

113,013

 

Gross profit

 

 

37,670

 

 

 

 

39,821

 

 

 

 

73,081

 

 

 

 

77,912

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

7,924

 

 

 

 

7,599

 

 

 

 

14,810

 

 

 

 

14,200

 

Selling and marketing

 

 

15,868

 

 

 

 

12,523

 

 

 

 

30,515

 

 

 

 

25,020

 

General and administrative

 

 

12,893

 

 

 

 

11,991

 

 

 

 

30,377

 

 

 

 

25,427

 

Restructuring

 

 

2,272

 

 

 

 

566

 

 

 

 

2,272

 

 

 

 

3,949

 

Intangible asset amortization

 

 

3,318

 

 

 

 

2,893

 

 

 

 

6,358

 

 

 

 

5,641

 

 

 

 

42,275

 

 

 

 

35,572

 

 

 

 

84,332

 

 

 

 

74,237

 

Operating (loss) income

 

 

(4,605

)

 

 

 

4,249

 

 

 

 

(11,251

)

 

 

 

3,675

 

Non-operating income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income

 

 

1,256

 

 

 

 

1,007

 

 

 

 

3,337

 

 

 

 

1,860

 

Interest expense

 

 

(5,555

)

 

 

 

(3,767

)

 

 

 

(11,011

)

 

 

 

(6,432

)

Gain on legal settlement

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

13,333

 

Loss on extinguishment of debt

 

 

-

 

 

 

 

(2,033

)

 

 

 

-

 

 

 

 

(2,033

)

Other income (expense)

 

 

193

 

 

 

 

(277

)

 

 

 

(206

)

 

 

 

(503

)

 

 

 

(4,106

)

 

 

 

(5,070

)

 

 

 

(7,880

)

 

 

 

6,225

 

Income (loss) before income taxes and impairment loss and equity in net loss of affiliate

 

 

(8,711

)

 

 

 

(821

)

 

 

 

(19,131

)

 

 

 

9,900

 

Income tax benefit (provision)

 

 

1,342

 

 

 

 

497

 

 

 

 

3,599

 

 

 

 

(1,274

)

Income (loss) before impairment loss and equity in net loss of affiliate

 

 

(7,369

)

 

 

 

(324

)

 

 

 

(15,532

)

 

 

 

8,626

 

Impairment loss and equity in net loss of affiliate

 

 

-

 

 

 

 

(530

)

 

 

 

(530

)

 

 

 

(969

)

Net income (loss)

$

 

(7,369

)

 

$

 

(854

)

 

$

 

(16,062

)

 

$

 

7,657

 

Earnings (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Basic

$

 

(0.22

)

 

$

 

(0.02

)

 

$

 

(0.48

)

 

$

 

0.22

 

  Diluted

$

 

(0.22

)

 

$

 

(0.02

)

 

$

 

(0.48

)

 

$

 

0.21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Basic

 

 

33,568

 

 

 

 

34,850

 

 

 

 

33,475

 

 

 

 

35,141

 

  Diluted

 

 

33,568

 

 

 

 

34,850

 

 

 

 

33,475

 

 

 

 

36,073

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- more -

 

 


 

CalAmp Reports Fiscal Year 2020 Second Quarter Financial Results

Page 7 of 10

 

CALAMP CORP.

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

(Amounts in thousands)

 

(Unaudited)

 

 

 

 

 

August 31,

 

 

February 28,

 

 

 

 

 

2019

 

 

2019

 

                                Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

  Cash and cash equivalents

 

 

 

$

 

193,684

 

 

$

 

256,500

 

  Short-term marketable securities

 

 

 

 

 

7,789

 

 

 

 

17,512

 

  Accounts receivable, net

 

 

 

 

 

75,600

 

 

 

 

78,079

 

  Inventories

 

 

 

 

 

49,541

 

 

 

 

32,033

 

  Prepaid expenses and other current assets

 

 

 

 

 

24,555

 

 

 

 

19,373

 

       Total current assets

 

 

 

 

 

351,169

 

 

 

 

403,497

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

 

 

 

56,920

 

 

 

 

27,023

 

Operating lease right-of-use assets

 

 

 

 

 

27,977

 

 

 

 

-

 

Deferred income tax assets

 

 

 

 

 

27,863

 

 

 

 

22,626

 

Goodwill

 

 

 

 

 

104,037

 

 

 

 

80,805

 

Other intangible assets, net

 

 

 

 

 

69,322

 

 

 

 

47,165

 

Other assets

 

 

 

 

 

22,154

 

 

 

 

22,510

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

 

659,442

 

 

$

 

603,626

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                      Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

  Current portion of long-term debt

 

 

 

$

 

124,181

 

 

$

 

-

 

  Accounts payable

 

 

 

 

 

40,270

 

 

 

 

39,898

 

  Accrued payroll and employee benefits

 

 

 

 

 

9,329

 

 

 

 

8,808

 

  Deferred revenue

 

 

 

 

 

31,889

 

 

 

 

24,264

 

  Other current liabilities

 

 

 

 

 

15,325

 

 

 

 

10,622

 

      Total current liabilities

 

 

 

 

 

220,994

 

 

 

 

83,592

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt, net of current portion

 

 

 

 

 

175,916

 

 

 

 

275,905

 

Operating lease liabilities

 

 

 

 

 

29,780

 

 

 

 

-

 

Other non-current liabilities

 

 

 

 

 

39,456

 

 

 

 

38,476

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

 

 

 

 

 

 

  Common stock

 

 

 

 

 

341

 

 

 

 

336

 

  Additional paid-in capital

 

 

 

 

 

213,192

 

 

 

 

208,205

 

  Accumulated deficit

 

 

 

 

 

(18,289

)

 

 

 

(2,227

)

  Accumulated other comprehensive loss

 

 

 

 

 

(1,948

)

 

 

 

(661

)

      Total stockholders' equity

 

 

 

 

 

193,296

 

 

 

 

205,653

 

 

 

 

 

$

 

659,442

 

 

$

 

603,626

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- more -

 

 

 


 

CalAmp Reports Fiscal Year 2020 Second Quarter Financial Results

Page 8 of 10

 

CALAMP CORP.

 

 

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS

 

 

(Amounts in thousands)

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

 

August 31,

 

 

 

 

2019

 

 

 

2018

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

 

(16,062

)

 

$

 

7,657

 

 

Depreciation

 

 

9,036

 

 

 

 

4,341

 

 

Intangible asset amortization expense

 

 

6,358

 

 

 

 

5,641

 

 

Stock-based compensation expense

 

 

5,726

 

 

 

 

5,147

 

 

Amortization of debt issue costs and discount

 

 

7,606

 

 

 

 

4,537

 

 

Impairment of operating lease right-of-use (ROU) assets

 

 

1,210

 

 

 

 

-

 

 

Noncash operating lease cost

 

 

3,100

 

 

 

 

-

 

 

Revenue assigned to factors

 

 

(3,109

)

 

 

 

-

 

 

Loss on extinguishment of debt

 

 

-

 

 

 

 

2,033

 

 

Impairment loss on cost method investment

 

 

-

 

 

 

 

326

 

 

Tax benefits on vested and exercised equity awards

 

 

-

 

 

 

 

525

 

 

Deferred tax assets, net

 

 

(3,437

)

 

 

 

(211

)

 

Impairment loss and equity in net loss of affiliate

 

 

530

 

 

 

 

969

 

 

Other

 

 

456

 

 

 

 

115

 

 

Changes in operating assets and liabilities

 

 

(11,794

)

 

 

 

5,753

 

NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES

 

 

(380

)

 

 

 

36,833

 

 

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

 

 

Proceeds from maturities and sale of marketable securities

 

 

27,340

 

 

 

 

32,792

 

 

Purchases of marketable securities

 

 

(17,617

)

 

 

 

(40,312

)

 

Capital expenditures

 

 

(10,720

)

 

 

 

(5,770

)

 

Acquisition, net of cash acquired

 

 

(60,634

)

 

 

 

-

 

 

Advances to affiliate

 

 

(530

)

 

 

 

(1,063

)

 

Other

 

 

3

 

 

 

 

(78

)

NET CASH USED IN INVESTING ACTIVITIES

 

 

(62,158

)

 

 

 

(14,431

)

 

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

 

 

Proceeds from issuance of 2025 Convertible Notes

 

 

-

 

 

 

 

230,000

 

 

Payment of debt issuance costs of 2025 Convertible Notes

 

 

-

 

 

 

 

(7,305

)

 

Purchase of capped call on 2025 Convertible Notes

 

 

-

 

 

 

 

(21,160

)

 

Repurchase of 2020 Convertible Notes

 

 

-

 

 

 

 

(53,683

)

 

Proceeds on unwind of note hedge and warrants on 2020 Convertible Notes

 

 

-

 

 

 

 

3,122

 

 

Taxes paid related to net share settlement of vested equity awards

 

 

(1,729

)

 

 

 

(3,347

)

 

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

 

 

995

 

 

 

 

101

 

 

Repurchases of common stock

 

 

-

 

 

 

 

(28,564

)

NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES

 

 

(734

)

 

 

 

119,164

 

 

 

 

 

 

 

 

 

 

 

 

EFFECT OF EXCHANGE RATE CHANGE ON CASH

 

 

456

 

 

 

 

(197

)

Net change in cash and cash equivalents

 

 

(62,816

)

 

 

 

141,369

 

Cash and cash equivalents at beginning of period

 

 

256,500

 

 

 

 

132,603

 

Cash and cash equivalents at end of period

$

 

193,684

 

 

$

 

273,972

 

 



 

CalAmp Reports Fiscal Year 2020 Second Quarter Financial Results

Page 9 of 10

 

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, Adjusted basis net income per diluted share, Adjusted EBITDA (Earnings Before Investment Income, Interest Expense, Taxes, Depreciation, Amortization and stock-based compensation, gain on legal settlement 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 income (loss) to Adjusted basis (non-GAAP) net income is as follows (in thousands except per share amounts):

 

  

Three Months Ended

 

 

Six Months Ended

 

 

August 31,

 

 

August 31,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

GAAP basis net income (loss)

$

 

(7,369

)

 

$

 

(854

)

 

$

 

(16,062

)

 

$

 

7,657

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intangible assets amortization expense

 

 

3,318

 

 

 

 

2,893

 

 

 

 

6,358

 

 

 

 

5,641

 

Stock-based compensation expense

 

 

3,183

 

 

 

 

2,680

 

 

 

 

5,726

 

 

 

 

5,147

 

Non-cash interest expense

 

 

3,863

 

 

 

 

2,355

 

 

 

 

7,606

 

 

 

 

4,067

 

GAAP basis income tax provision (benefit)

 

 

(1,342

)

 

 

 

(497

)

 

 

 

(3,599

)

 

 

 

1,274

 

Impairment loss and equity in net loss of affiliate

 

 

-

 

 

 

 

530

 

 

 

 

530

 

 

 

 

969

 

Acquisition and integration related expenses

 

 

46

 

 

 

 

-

 

 

 

 

1,190

 

 

 

 

-

 

Loss on extinguishment of debt

 

 

-

 

 

 

 

2,033

 

 

 

 

-

 

 

 

 

2,033

 

Realized gain on investment of equity securities

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

629

 

Gain on legal settlement

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

(13,333

)

Litigation and non-recurring legal expenses

 

 

777

 

 

 

 

1,023

 

 

 

 

4,584

 

 

 

 

3,137

 

Restructuring

 

 

2,272

 

 

 

 

566

 

 

 

 

2,272

 

 

 

 

3,949

 

Other

 

 

459

 

 

 

 

447

 

 

 

 

920

 

 

 

 

692

 

Adjusted basis income before income taxes

 

 

5,207

 

 

 

 

11,176

 

 

 

 

9,525

 

 

 

 

21,862

 

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

 

 

(450

)

 

 

 

(200

)

 

 

 

(600

)

 

 

 

(400

)

Adjusted basis net income

$

 

4,757

 

 

$

 

10,976

 

 

$

 

8,925

 

 

$

 

21,462

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted basis net income per diluted share

$

 

0.14

 

 

$

 

0.31

 

 

$

 

0.26

 

 

$

 

0.59

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding on diluted basis

 

 

33,799

 

 

 

 

35,718

 

 

 

 

33,766

 

 

 

 

36,073

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.

 



 

CalAmp Reports Fiscal Year 2020 Second Quarter Financial Results

Page 10 of 10

 

The reconciliation of GAAP-basis net income (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,

 

 

2019

 

 

2018

 

 

2019

 

 

2018