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| 8-K - CURRENT REPORT - CalAmp Corp. | calamp_8k.htm |
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N E W S B U L L E T I N |
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FROM: |
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FOR IMMEDIATE RELEASE |
CalAmp Reports Fiscal 2013 Second Quarter Results
OXNARD, CA, September 25, 2012 -- CalAmp Corp. (NASDAQ: CAMP), a leading provider of wireless products, services and solutions, today reported results for its second quarter ended August 31, 2012. Highlights for the quarter include:
- Consolidated second quarter revenue of $44.0 million, up 30% compared to the second quarter last year; Wireless Datacom revenue up 34% year-over-year to an all-time high of $34.2 million.
- Second quarter GAAP net income of $3.7 million or $0.12 per diluted share, compared to $1.4 million, or $0.05 per diluted share, in second quarter of last year.
- Adjusted Basis (non-GAAP) net income of $4.9 million or $0.17 per diluted share, compared to $3.0 million, or $0.11 per diluted share, for the same period last year.
- Net cash provided by operations of $4.0 million in the second quarter, and total cash at quarter-end of $10.2 million.
Commenting on the second quarter results, Michael Burdiek, CalAmp's President and Chief Executive Officer said, “We continue to experience operating momentum with strong performance once again driven by the Wireless Datacom segment, where revenue grew 34% year-over-year to $34.2 million. This record-setting revenue was due to continued strong customer demand for our Mobile Resource Management (MRM) products and services, significant contributions from our Rail initiative and improving fundamentals in public safety. In addition, we continue to be pleased with the performance of our Satellite segment and its contribution to the bottom-line.”
Mr. Burdiek continued, “Our backlog exiting the second quarter remains robust and we have a healthy pipeline of new opportunities supporting a good tailwind as we enter the second half of fiscal 2013.”
Fiscal 2013 Second Quarter Results
Total revenue for the fiscal 2013
second quarter was $44.0 million compared to $33.8 million for the second
quarter of fiscal 2012, an increase of 30%. Wireless Datacom revenue increased
34% to $34.2 million from $25.5 million in the same period last year, and
Satellite revenue was $9.8 million compared to $8.3 million in the second
quarter last year.
Consolidated gross profit for the fiscal 2013 second quarter was $14.1 million, an increase of $2.3 million over the same quarter last year primarily as a result of higher revenue. The gross margin percentage was 32.1% in the fiscal 2013 second quarter versus 35.0% in the second quarter last year, which included a $3 million patent sale for which there was no associated cost of revenue. Excluding the effects of last year’s patent sale, the consolidated gross margin in the latest quarter was up 3.4 percentage points year-over-year due primarily to substantial improvement in Satellite margins.
CalAmp Reports Fiscal 2013 Second
Quarter Results
September 25, 2012
Page 2 of 7
GAAP net income for the fiscal 2013 second quarter was $3.7 million, or $0.12 per diluted share, compared to net income of $1.4 million, or $0.05 per diluted share, in the second quarter of last year.
Non-GAAP net income for the fiscal 2013 second quarter was $4.9 million, or $0.17 per diluted share, compared to non-GAAP net income of $3.0 million or $0.11 per diluted share for the same quarter last year. A reconciliation of the GAAP basis pretax income to the non-GAAP net income is provided in the table at the end of this press release.
Liquidity
As of August 31, 2012, the Company had cash and equivalents of
$10.2 million and total debt of $5.7 million, including the $3.2 million
carrying amount of a note payable issued in May 2012 in connection with the
Navman Wireless asset purchase and supply agreement. Net cash (reflecting total
cash less bank debt) at August 31, 2012 was $7.7 million, versus a net debt
position of $4.0 million one year ago. Cash provided by operating activities
during the second quarter was $4.0 million, and the unused borrowing capacity on
the bank revolver at the end of the second quarter was $9.5 million.
Business Outlook
Commenting on the Company's business
outlook, Mr. Burdiek said, "Based on our latest projections, we expect fiscal
2013 third quarter consolidated revenue in the range of $41 to $45 million. We
anticipate Wireless Datacom revenue in the third quarter will be significantly
higher year-over-year and up slightly on a sequential quarter basis. Satellite
revenue in the third quarter is expected to be up year-over-year but lower on a
sequential quarter basis due to normal demand fluctuations. At the bottom line,
we expect third quarter GAAP basis net income in the range of $0.10 to $0.14 per
diluted share, and non-GAAP net income in the range of $0.14 to $0.18 per
diluted share. Looking further ahead into our fourth quarter, we expect
continued strength within our Wireless segment and a strong rebound in Satellite
revenues from the third quarter, with consolidated fourth quarter revenues
projected to be in the range of $43 to $49 million.
Mr. Burdiek concluded, “We are experiencing strong demand as we drive expansion within our key verticals. Looking ahead to the second half of fiscal 2013 and beyond, we believe we have established a solid foundation for further revenue and earnings growth.”
Conference Call and Webcast
A conference call and simultaneous
webcast to discuss first quarter financial results and business outlook will be
held today at 4:30 p.m. Eastern / 1:30 p.m. Pacific. CalAmp's President and CEO
Michael Burdiek and CFO Rick Vitelle will host the conference call. Participants
can dial into the live conference call by calling 877-407-0784 (1-201-689-8560
for international callers) and using the Conference ID # 399613. An audio replay
will be available through October 3, 2012 by calling 877-870-5176 or
858-384-5517 and entering the Conference ID # 399613.
Additionally, a live webcast of the call will be available on CalAmp's web site at www.calamp.com. Participants are encouraged to visit the web site at least 15 minutes prior to the start of the call to register, download and install any necessary audio software. After the live webcast, a replay will remain available until the next quarterly conference call in the Investor Relations section of CalAmp's web site.
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CalAmp Reports Fiscal 2013 Second
Quarter Results
September 25, 2012
Page 3 of 7
About CalAmp
CalAmp develops and markets wireless communications solutions
that deliver data, voice and video for critical networked communications and
other applications. The Company's two business segments are Wireless DataCom,
which serves enterprise, utility and government customers, and Satellite, which
focuses on the North American Direct Broadcast Satellite market. For more
information, please visit www.calamp.com.
Forward-Looking
Statements
Statements in this press
release that are not historical in nature are forward-looking statements that
involve known and unknown risks and uncertainties. Words such as "may", "will",
"expect", "intend", "plan", "believe", "seek", "could", "estimate", "judgment",
"targeting", "should", "anticipate", "goal" and variations of these words and
similar expressions, are intended to identify forward-looking statements. Actual
results could differ materially from those implied by such forward-looking
statements due to a variety of factors, including product demand, competitive
pressures and pricing declines in the Company’s wireless and satellite markets,
the timing of customer approvals of new product designs, intellectual property
infringement claims, the effects of the proposed automatic federal budget cuts
if the scheduled sequester were to take effect in early 2013, interruption or
failure of our Internet-based systems used to wirelessly configure and
communicate with the tracking and monitoring devices that we sell, and other
risks or uncertainties that are described in the Company's Report on Form 10-K
for fiscal 2012 as filed on April 26, 2012 with the Securities and Exchange
Commission. Although the Company believes the expectations reflected in such
forward-looking statements are based upon reasonable assumptions, it can give no
assurance that its expectations will be attained. The Company undertakes no
obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
| AT CALAMP: | AT ADDO COMMUNICATIONS: | |
| Garo Sarkissian | Lasse Glassen | |
| VP, Corporate Development | (424) 238-6249 | |
| (805) 987-9000 | lasseg@addocommunications.com |
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CalAmp Reports Fiscal 2013 Second
Quarter Results
September 25, 2012
Page 4 of 7
CAL AMP CORP.
CONSOLIDATED INCOME STATEMENTS
(Unaudited, in thousands
except per share amounts)
| Three Months Ended | Six Months Ended | |||||||||||||||
| August 31, | August 31, | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Revenues | $ | 43,987 | $ | 33,801 | $ | 87,848 | $ | 68,355 | ||||||||
| Cost of revenues | 29,852 | 21,976 | 60,037 | 47,098 | ||||||||||||
| Gross profit | 14,135 | 11,825 | 27,811 | 21,257 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 3,657 | 2,679 | 6,829 | 5,783 | ||||||||||||
| Selling | 3,173 | 2,852 | 5,981 | 5,444 | ||||||||||||
| General and administrative | 3,052 | 3,030 | 6,150 | 5,529 | ||||||||||||
| Intangible asset amortization | 475 | 310 | 792 | 662 | ||||||||||||
| 10,357 | 8,871 | 19,752 | 17,418 | |||||||||||||
| Operating income | 3,778 | 2,954 | 8,059 | 3,839 | ||||||||||||
| Non-operating expense, net | (102 | ) | (1,592 | ) | (192 | ) | (1,948 | ) | ||||||||
| Income before income taxes | 3,676 | 1,362 | 7,867 | 1,891 | ||||||||||||
| Income tax provision | (17 | ) | (6 | ) | (26 | ) | (15 | ) | ||||||||
| Net income | $ | 3,659 | $ | 1,356 | $ | 7,841 | $ | 1,876 | ||||||||
| Earnings per share - basic and diluted | ||||||||||||||||
| Basic | $ | 0.13 | $ | 0.05 | $ | 0.28 | $ | 0.07 | ||||||||
| Diluted | $ | 0.12 | $ | 0.05 | $ | 0.27 | $ | 0.07 | ||||||||
| Shares used in computing earnings per share: | ||||||||||||||||
| Basic | 28,476 | 27,524 | 28,201 | 27,441 | ||||||||||||
| Diluted | 29,692 | 28,310 | 29,478 | 28,268 | ||||||||||||
BUSINESS SEGMENT
INFORMATION
(Unaudited, in thousands)
| Three Months Ended | Six Months Ended | |||||||||||||||
| August 31, | August 31, | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Revenues | ||||||||||||||||
| Wireless DataCom | $ | 34,173 | $ | 25,523 | $ | 65,844 | $ | 47,560 | ||||||||
| Satellite | 9,814 | 8,278 | 22,004 | 20,795 | ||||||||||||
| Total revenues | $ | 43,987 | $ | 33,801 | $ | 87,848 | $ | 68,355 | ||||||||
| Gross profit | ||||||||||||||||
| Wireless DataCom | $ | 12,429 | $ | 11,380 | $ | 24,174 | $ | 19,984 | ||||||||
| Satellite | 1,706 | 445 | 3,637 | 1,273 | ||||||||||||
| Total gross profit | $ | 14,135 | $ | 11,825 | $ | 27,811 | $ | 21,257 | ||||||||
| Operating income (loss) | ||||||||||||||||
| Wireless DataCom | $ | 4,002 | $ | 4,399 | $ | 8,393 | $ | 6,529 | ||||||||
| Satellite | 749 | (447 | ) | 1,829 | (735 | ) | ||||||||||
| Corporate expenses | (973 | ) | (998 | ) | (2,163 | ) | (1,955 | ) | ||||||||
| Total operating income | $ | 3,778 | $ | 2,954 | $ | 8,059 | $ | 3,839 | ||||||||
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CalAmp Reports Fiscal 2013 Second
Quarter Results
September 25, 2012
Page 5 of 7
CAL AMP CORP.
CONSOLIDATED BALANCE SHEETS
(In thousands)
| August 31, | February 28, | |||||||
| 2012 | 2012 | |||||||
| Assets | (Unaudited) | |||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 10,235 | $ | 5,601 | ||||
| Accounts receivable, net | 19,617 | 14,383 | ||||||
| Inventories | 13,012 | 10,057 | ||||||
| Deferred income tax assets | 7,183 | 5,425 | ||||||
| Prepaid expenses and other current assets | 3,951 | 4,323 | ||||||
| Total current assets | 53,998 | 39,789 | ||||||
| Property, equipment and improvements, net | 2,399 | 1,761 | ||||||
| Deferred income tax assets, less current portion | 4,739 | 6,412 | ||||||
| Goodwill and other intangible assets, net | 6,657 | 2,738 | ||||||
| Other assets | 745 | 781 | ||||||
| $ | 68,538 | $ | 51,481 | |||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Current portion of long-term debt | $ | 2,444 | $ | 1,100 | ||||
| Accounts payable | 14,318 | 9,523 | ||||||
| Accrued payroll and employee benefits | 3,593 | 4,405 | ||||||
| Deferred revenue | 6,107 | 6,305 | ||||||
| Other current liabilities | 3,191 | 2,268 | ||||||
| Total current liabilities | 29,653 | 23,601 | ||||||
| Long-term debt | 3,256 | 1,900 | ||||||
| Other non-current liabilities | 1,576 | 1,003 | ||||||
| Stockholders' equity: | ||||||||
| Common stock | 296 | 287 | ||||||
| Additional paid-in capital | 155,711 | 154,485 | ||||||
| Accumulated deficit | (121,889 | ) | (129,730 | ) | ||||
| Accumulated other comprehensive loss | (65 | ) | (65 | ) | ||||
| Total stockholders' equity | 34,053 | 24,977 | ||||||
| $ | 68,538 | $ | 51,481 | |||||
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CalAmp Reports Fiscal 2013 Second
Quarter Results
September 25, 2012
Page 6 of 7
CAL AMP CORP.
CONSOLIDATED CASH FLOW STATEMENTS
(Unaudited - In thousands)
| Six Months Ended | ||||||||
| August 31, | ||||||||
| 2012 | 2011 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 7,841 | $ | 1,876 | ||||
| Depreciation and amortization | 1,260 | 1,385 | ||||||
| Stock-based compensation expense | 1,672 | 1,099 | ||||||
| Amortization of debt issue costs and discount | 22 | 724 | ||||||
| Write-off of cumulative foreign currency translation account | - | 801 | ||||||
| Changes in operating working capital | (3,517 | ) | (494 | ) | ||||
| Deferred tax assets, net | (85 | ) | - | |||||
| Other | 15 | - | ||||||
| Net cash provided by operating activities | 7,208 | 5,391 | ||||||
| Cash flows from investing activities: | ||||||||
| Capital expenditures | (920 | ) | (389 | ) | ||||
| Navman Wireless asset purchase agreement | (1,000 | ) | - | |||||
| Collections on note receivable | 283 | 298 | ||||||
| Net cash used in investing activities | (1,637 | ) | (91 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Repayments of bank line of credit | - | (2,215 | ) | |||||
| Proceeds (repayments) of bank term loan | (500 | ) | 3,000 | |||||
| Repayment of subordinated notes payable | - | (5,000 | ) | |||||
| Payment of debt issue costs | - | (63 | ) | |||||
| Payment of withholding taxes on vested employee equity awards | (2,515 | ) | (1,016 | ) | ||||
| Proceeds from exercise of stock options and warrants | 2,078 | 9 | ||||||
| Net cash used in financing activities | (937 | ) | (5,285 | ) | ||||
| Net change in cash and cash equivalents | 4,634 | 15 | ||||||
| Cash and cash equivalents at beginning of period | 5,601 | 4,241 | ||||||
| Cash and cash equivalents at end of period | $ | 10,235 | $ | 4,256 | ||||
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CalAmp Reports Fiscal 2013 Second
Quarter Results
September 25, 2012
Page 7 of 7
CAL AMP CORP.
NON-GAAP EARNINGS RECONCILIATION
(Unaudited)
"GAAP" refers to financial information presented in accordance with U.S. Generally Accepted Accounting Principles. This press release includes historical non-GAAP financial measures, as defined in Regulation G promulgated by the Securities and Exchange Commission. CalAmp believes that its 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 press release, CalAmp reports the non-GAAP financial measures of Adjusted Basis Net Income and Adjusted Basis Net Income Per Diluted Share. CalAmp uses these non-GAAP financial measures to enhance the investor's overall understanding of the financial performance and future prospects of CalAmp's core business activities. Specifically, CalAmp believes that a report of Adjusted Basis Net Income and Adjusted Basis Net Income Per Diluted Share provides consistency in its financial reporting and facilitates the comparison of results of core business operations between its current and past periods.
The reconciliation of the GAAP Basis Pretax Income 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, | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| GAAP basis pretax income | $ | 3,676 | $ | 1,362 | $ | 7,867 | $ | 1,891 | ||||||||
| Amortization of intangible assets | 475 | 310 | 792 | 662 | ||||||||||||
| Stock-based compensation expense | 814 | 567 | 1,672 | 1,099 | ||||||||||||
| Write-off of cumulative foreign currency translation account | - | 801 | - | 801 | ||||||||||||
| Pretax income (non-GAAP basis) | 4,965 | 3,040 | 10,331 | 4,453 | ||||||||||||
| Income tax provision (non-GAAP basis) (a) | (51 | ) | (6 | ) | (111 | ) | (15 | ) | ||||||||
| Adjusted Basis net income | $ | 4,914 | $ | 3,034 | $ | 10,220 | $ | 4,438 | ||||||||
| Adjusted Basis net income per diluted share | $ | 0.17 | $ | 0.11 | $ | 0.35 | $ | 0.16 | ||||||||
| Weighted average common shares outstanding | ||||||||||||||||
| on diluted basis | 29,692 | 28,310 | 29,478 | 28,268 | ||||||||||||
| (a) | The non-GAAP income tax provision reflects the income taxes paid/payable (or received/receivable) based on the non-GAAP pretax income for the period. The Company has net operating loss carryforwards to offset the pre-tax book income for the three- and six-month periods ended August 31, 2012 and 2011. |
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