UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
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Not applicable |
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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:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14.a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition
The information set forth in Exhibit 99.1 of this Current Report is being furnished and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information set forth in Exhibit 99.1 of this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.
On September 24, 2020, CalAmp Corp. issued a press release announcing its financial results for the second quarter ended August 31, 2020. A copy of the press release is attached as Exhibit 99.1.
A conference call with simultaneous webcast to discuss the financial results for the second quarter ended August 31, 2020 will be held today, September 24, 2020 at 4:30 p.m. Eastern Time. After the live webcast of the conference call, an audio replay will remain available until October 1, 2020 in the Investor Relations section of CalAmp's website at www.calamp.com.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
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104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be filed on its behalf by the undersigned hereunto duly authorized.
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CALAMP CORP. |
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September 24, 2020 |
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By: /s/ Kurtis Binder |
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Date |
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Kurtis Binder |
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Executive Vice President and CFO |
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(Principal Financial Officer) |
Exhibit 99.1
CalAmp Reports Fiscal 2021 Second Quarter Financial Results
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, CA, September 24, 2020 -- 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
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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. |
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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. |
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Network & OEM products revenue increased to $17.2 million, due to strong sequential growth with its largest customer. |
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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. |
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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. |
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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. |
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Operating cash flow was $8.2 million, with adjusted EBITDA of $5.4 million and an adjusted EBITDA margin of 6.5%. |
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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
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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. |
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Extended relationship with Caterpillar to accelerate migration of existing fleets to 4G LTE. |
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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. |
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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. |
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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. |
CalAmp Reports Fiscal Year 2021 Second Quarter Financial Results
Page 2 of 9
Summary Financial Information: |
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(In thousands except per share amounts) |
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Three Months Ended |
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Six Months Ended |
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August 31, |
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August 31, |
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Description |
2020 |
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2019 |
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2020 |
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2019 |
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Revenues: |
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Software & Subscription Services |
$ |
33,696 |
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$ |
31,205 |
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$ |
61,725 |
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$ |
56,716 |
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Telematics Systems |
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Telematics Products |
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40,732 |
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48,934 |
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86,271 |
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100,132 |
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LoJack U.S. SVR Products |
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9,109 |
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13,097 |
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15,756 |
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25,458 |
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$ |
83,537 |
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$ |
93,236 |
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$ |
163,752 |
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$ |
182,306 |
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Gross margin |
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37 |
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40 |
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38 |
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40 |
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Net loss |
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(9,478 |
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(7,369 |
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(23,900 |
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(16,062 |
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Net loss per diluted share |
$ |
(0.28 |
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$ |
(0.22 |
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$ |
(0.70 |
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$ |
(0.48 |
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Non-GAAP measures: |
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Adjusted basis net income (loss) |
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(1,025 |
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4,757 |
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(473 |
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$ |
8,925 |
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Adjusted basis net income (loss) per diluted share |
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(0.03 |
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0.14 |
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(0.01 |
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0.26 |
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Adjusted EBITDA |
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5,403 |
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$ |
10,647 |
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$ |
11,910 |
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$ |
18,216 |
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Adjusted EBITDA margin |
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6 |
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11 |
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7 |
% |
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10 |
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August 31, |
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February 29, |
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Description |
2020 |
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2020 |
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Cash and cash equivalents |
$ |
107,145 |
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$ |
107,404 |
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Working capital |
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128,284 |
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116,391 |
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Deferred revenue |
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60,105 |
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62,156 |
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Total debt (carrying value) |
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204,466 |
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210,207 |
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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.
CalAmp Reports Fiscal Year 2021 Second Quarter Financial Results
Page 3 of 9
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
CalAmp Reports Fiscal Year 2021 Second Quarter Financial Results
Page 4 of 9
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.
AT CALAMP: |
AT SHELTON GROUP: |
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Kurtis Binder |
Leanne K. Sievers |
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EVP & CFO |
(949) 224.3874 |
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ir@calamp.com |
sheltonir@sheltongroup.com |
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CalAmp Reports Fiscal Year 2021 Second Quarter Financial Results
Page 5 of 9
CALAMP CORP. |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
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(Amounts in thousands, except per share amounts) |
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(Unaudited) |
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Three Months Ended |
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Six Months Ended |
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August 31, |
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August 31, |
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2020 |
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2019 |
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2020 |
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2019 |
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Revenues |
$ |
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83,537 |
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$ |
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93,236 |
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$ |
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163,752 |
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$ |
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182,306 |
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Cost of revenues |
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52,727 |
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55,566 |
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101,889 |
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109,225 |
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Gross profit |
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30,810 |
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37,670 |
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61,863 |
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73,081 |
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Operating expenses: |
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Research and development |
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6,989 |
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7,924 |
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13,313 |
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14,810 |
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Selling and marketing |
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13,493 |
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15,868 |
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26,379 |
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30,515 |
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General and administrative |
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13,899 |
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12,893 |
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27,568 |
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30,377 |
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Intangible asset amortization |
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1,844 |
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3,318 |
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3,736 |
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6,358 |
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Restructuring |
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551 |
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2,272 |
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2,459 |
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2,272 |
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Impairment loss |
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286 |
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- |
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4,575 |
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- |
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37,062 |
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42,275 |
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78,030 |
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84,332 |
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Operating loss |
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(6,252 |
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(4,605 |
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(16,167 |
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(11,251 |
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Non-operating income (expense): |
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Investment income |
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680 |
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1,256 |
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698 |
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3,337 |
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Interest expense |
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(3,857 |
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(5,555 |
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(7,934 |
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(11,011 |
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Other expense |
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217 |
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193 |
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9 |
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(206 |
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(2,960 |
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(4,106 |
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(7,227 |
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(7,880 |
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Loss before income taxes and impairment loss in investment of affiliate |
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(9,212 |
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(8,711 |
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(23,394 |
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(19,131 |
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Income tax benefit (provision) |
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(266 |
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1,342 |
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(506 |
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3,599 |
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Loss before impairment loss in investment of affiliate |
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(9,478 |
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(7,369 |
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(23,900 |
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(15,532 |
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Impairment loss in investment of affiliate |
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- |
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- |
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- |
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(530 |
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Net loss |
$ |
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(9,478 |
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$ |
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(7,369 |
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$ |
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(23,900 |
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$ |
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(16,062 |
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Loss per share: |
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Basic |
$ |
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(0.28 |
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$ |
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(0.22 |
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$ |
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(0.70 |
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$ |
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(0.48 |
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Diluted |
$ |
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(0.28 |
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$ |
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(0.22 |
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$ |
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(0.70 |
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$ |
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(0.48 |
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Shares used in computing loss per share: |
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Basic |
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34,256 |
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33,568 |
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34,140 |
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33,475 |
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Diluted |
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34,256 |
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33,568 |
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34,140 |
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33,475 |
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- more - |
|
CalAmp Reports Fiscal Year 2021 Second Quarter Financial Results
Page 6 of 9
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 Reports Fiscal Year 2021 Second Quarter Financial Results
Page 7 of 9
|
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 Reports Fiscal Year 2021 Second Quarter Financial Results
Page 8 of 9
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 |
) |
CalAmp Reports Fiscal Year 2021 Second Quarter Financial Results
Page 9 of 9
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. |
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