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8-K - CURRENT REPORT - CalAmp Corp. | calamp_8k.htm |
Exhibit 99.1
N E W S B U L L E T I N
FROM:
FOR IMMEDIATE RELEASE
CalAmp Reports Fiscal 2015 Third Quarter Results
OXNARD, CA, December 23, 2014 -- CalAmp (NASDAQ: CAMP), a leading provider of wireless products, services and solutions, today reported results for its third quarter ended November 30, 2014. Highlights for the quarter include:
● | Consolidated third quarter revenue up 7% sequentially to $63.2 million and essentially flat year over year. | ||
● | Wireless Datacom revenue up 9% sequentially and 10% year over year to a record $54.6 million. | ||
● | Satellite revenue down 4% sequentially and 37% year over year to $8.6 million. | ||
● | Third quarter GAAP net income of $4.0 million, or $0.11 per diluted share, compared to $4.2 million, or $0.12 per diluted share for the third quarter last year. | ||
● | Adjusted Basis (non-GAAP) net income of $9.2 million, or $0.25 per diluted share, compared to $8.2 million, or $0.23 per diluted share, for the same period last year. | ||
● | Net cash provided by operations for the third quarter of $5.1 million, and total cash and marketable securities of $40 million at November 30, 2014. |
Commenting on the fiscal 2015 third quarter results, Michael Burdiek, CalAmp's President and Chief Executive Officer, said, We saw strong sequential growth in both revenue and earnings in the latest quarter, with consolidated gross margin expansion driven by strength in our Wireless Datacom segment. Specialized telematics device shipments to a key OEM customer in the heavy equipment industry boosted our third quarter results, and we continue to believe that this customer will be a significant growth catalyst for CalAmp over the next several quarters. In addition, important wins for fleet management SaaS solutions, as well as robust demand for fleet management and asset tracking products, are expected to drive growth in the coming quarters. Our Satellite segment revenues were in line with expectations, providing meaningful contributions to our bottom line profitability and operating cash flow. Overall, we were quite pleased with our third quarter results and expect revenue growth and earnings momentum to build through the balance of the fiscal year.
Fiscal 2015 Third
Quarter Results
Total revenue
for the fiscal 2015 third quarter was $63.2 million compared to $63.5 million
for the third quarter of fiscal 2014. Wireless Datacom revenue increased to
$54.6 million from $49.7 million in the same period last year, while Satellite
revenue was $8.6 million in the latest quarter compared to $13.8 million in the
third quarter last year.
CalAmp Reports Fiscal
2015 Third Quarter Results
December 23, 2014
Page 2 of 7
Consolidated gross profit for the fiscal 2015 third quarter was $22.1 million, an increase of $1.1 million over the same quarter last year, primarily attributable to higher Wireless Datacom revenue. Consolidated gross margin was 35% in the fiscal 2015 third quarter, compared to 33% in the third quarter last year.
GAAP net income for the fiscal 2015 third quarter was $4.0 million, or $0.11 per diluted share, compared to net income of $4.2 million, or $0.12 per diluted share, in the third quarter of last year. Although the Companys GAAP-basis effective tax rate approximates the combined US federal and state statutory tax rate, the Companys pretax income is still largely sheltered from taxation by net operating loss and research and development tax credit carryforwards, and is expected to remain so for the next several years.
Non-GAAP net income for the fiscal 2015 third quarter was $9.2 million, or $0.25 per diluted share, compared to non-GAAP earnings of $8.2 million, or $0.23 per diluted share, for the third quarter last year. Non-GAAP net income excludes the impact of intangibles amortization expense, stock-based compensation expense and acquisition-related expenses, and includes an income tax provision for cash taxes paid or payable for the period. A reconciliation of the GAAP-basis pretax income to the non-GAAP net income and earnings per diluted share is provided in the table at the end of this press release.
Liquidity
As of November 30, 2014,
the Company had total cash and marketable securities of $40 million and no bank
debt outstanding. Net cash provided by operating activities during the third
quarter was $5.1 million, and the unused borrowing capacity on the bank revolver
as of the end of the third quarter was $15 million.
Business Outlook
Commenting on the Company's
business outlook, Mr. Burdiek said, Looking at our fiscal 2015 fourth quarter,
we expect to achieve consolidated revenue in the range of $66 to $70 million. We
anticipate Wireless Datacom revenue in the fourth quarter will be higher on both
a year-over-year and sequential quarter basis, while Satellite segment revenue
is expected to be down modestly on a sequential quarter basis to approximately
$8 million. At the bottom line, we expect fourth quarter GAAP-basis net income
in the range of $0.12 to $0.16 per diluted share and non-GAAP net income in the
range of $0.26 to $0.30 per diluted share. We are pleased with our near term
growth prospects and anticipate that continued execution and investments in key
strategic initiatives and geographic expansion will drive profitable growth into
fiscal 2016 and beyond.
Conference Call and
Webcast
A conference call and
simultaneous webcast to discuss the fiscal 2015 third 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 listen in via webcast by visiting the
Investor Relations section of CalAmp's 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 30 days after the call.
CalAmp Reports Fiscal
2015 Third Quarter Results
December 23, 2014
Page 3 of 7
The conference call can also be accessed by dialing 877-407-0784 (+1 201-689-8560 for international callers) and using the Conference ID# 13596777. Following the call, an audio replay will also be available by calling 877-870-5176 or +1 858-384-5517 and entering the Conference ID# 13596777. The audio replay will be available through December 30, 2014.
About CalAmp
CalAmp (NASDAQ: CAMP) is a
proven leader in providing wireless communications solutions to a broad array of
vertical market applications and customers. CalAmps extensive portfolio of
intelligent communications devices, robust and scalable cloud service platform,
and targeted software applications streamline otherwise complex
Machine-to-Machine (M2M) deployments. These solutions enable customers to
optimize their operations by collecting, monitoring and efficiently reporting
business critical data and desired intelligence from high-value remote assets.
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, within the meaning of the federal securities laws including the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995,
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.
Readers are cautioned that actual results could differ materially from those
implied by such forward-looking statements due to a variety of factors,
including global economic conditions and uncertainties in the geopolitical
environment, product demand, competitive pressures and pricing declines in our
Wireless Datacom and Satellite segments, delays in the ramp-up in product
shipments to a key OEM customer in the heavy equipment industry, the timing and
acceptance of customer approvals of new product designs, intellectual property
infringement claims, interruption or failure of our Internet-based systems used
to wirelessly configure and communicate with the tracking and monitoring devices
that we sell, changes in wireless transmission standards and technologies
including 3G and 4G standards, dependence on third-party manufacturers and
component suppliers in foreign countries, and other risks or uncertainties that
are described in our Annual Report on Form 10-K for the year ended February 28,
2014 that was filed on April 24, 2014 with the Securities and Exchange
Commission. Although we believe the expectations reflected in such
forward-looking statements are based upon reasonable assumptions, we can give no
assurances that our expectations will be attained. We undertake 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 | |
SVP, Corporate Development | (424) 238-6249 | |
(805) 987-9000 | lasseg@addocommunications.com |
CalAmp Reports Fiscal
2015 Third Quarter Results
December 23, 2014
Page 4 of 7
CAL AMP
CORP.
CONSOLIDATED INCOME
STATEMENTS
(Unaudited, in thousands except per share amounts)
Three Months Ended | Nine Months Ended | |||||||||||||||
November 30, | November 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenues | $ | 63,225 | $ | 63,503 | $ | 181,416 | $ | 176,056 | ||||||||
Cost of revenues | 41,121 | 42,508 | 118,597 | 116,741 | ||||||||||||
Gross profit | 22,104 | 20,995 | 62,819 | 59,315 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 4,852 | 5,267 | 14,986 | 15,721 | ||||||||||||
Selling | 5,162 | 4,920 | 15,260 | 14,789 | ||||||||||||
General and administrative | 4,000 | 3,291 | 11,529 | 10,521 | ||||||||||||
Intangible asset amortization | 1,635 | 1,485 | 4,952 | 4,618 | ||||||||||||
15,649 | 14,963 | 46,727 | 45,649 | |||||||||||||
Operating income | 6,455 | 6,032 | 16,092 | 13,666 | ||||||||||||
Non-operating expense, net | (34 | ) | (77 | ) | (125 | ) | (327 | ) | ||||||||
Income before income taxes | 6,421 | 5,955 | 15,967 | 13,339 | ||||||||||||
Income tax provision | (2,400 | ) | (1,748 | ) | (5,975 | ) | (4,603 | ) | ||||||||
Net income | $ | 4,021 | $ | 4,207 | $ | 9,992 | $ | 8,736 | ||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.11 | $ | 0.12 | $ | 0.28 | $ | 0.25 | ||||||||
Diluted | $ | 0.11 | $ | 0.12 | $ | 0.27 | $ | 0.24 | ||||||||
Shares used in computing earnings per share: | ||||||||||||||||
Basic | 35,901 | 35,171 | 35,735 | 34,848 | ||||||||||||
Diluted | 36,526 | 36,206 | 36,508 | 35,901 |
BUSINESS SEGMENT
INFORMATION
(Unaudited, in thousands)
Three Months Ended | Nine Months Ended | |||||||||||||||
November 30, | November 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenues | ||||||||||||||||
Wireless DataCom | $ | 54,580 | $ | 49,747 | $ | 152,631 | $ | 137,808 | ||||||||
Satellite | 8,645 | 13,756 | 28,785 | 38,248 | ||||||||||||
Total revenues | $ | 63,225 | $ | 63,503 | $ | 181,416 | $ | 176,056 | ||||||||
Gross profit | ||||||||||||||||
Wireless DataCom | $ | 20,078 | $ | 18,159 | $ | 55,440 | $ | 51,674 | ||||||||
Satellite | 2,026 | 2,836 | 7,379 | 7,641 | ||||||||||||
Total gross profit | $ | 22,104 | $ | 20,995 | $ | 62,819 | $ | 59,315 | ||||||||
Operating income | ||||||||||||||||
Wireless DataCom | $ | 6,579 | $ | 5,026 | $ | 14,904 | $ | 11,706 | ||||||||
Satellite | 914 | 1,785 | 4,070 | 4,561 | ||||||||||||
Corporate expenses | (1,038 | ) | (779 | ) | (2,882 | ) | (2,601 | ) | ||||||||
Total operating income | $ | 6,455 | $ | 6,032 | $ | 16,092 | $ | 13,666 |
- more -
CalAmp Reports Fiscal 2015
Third Quarter Results
December 23, 2014
Page 5 of 7
CAL AMP
CORP.
CONSOLIDATED BALANCE
SHEETS
(In
thousands)
November 30, | February 28, | |||||||
2014 | 2014 | |||||||
Assets | (Unaudited) | |||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 23,964 | $ | 19,233 | ||||
Short-term marketable securities | 12,963 | 8,500 | ||||||
Accounts receivable, net | 45,367 | 36,904 | ||||||
Inventories | 19,575 | 14,968 | ||||||
Deferred income tax assets | 7,465 | 7,619 | ||||||
Prepaid expenses and other current assets | 3,646 | 5,017 | ||||||
Total current assets | 112,980 | 92,241 | ||||||
Long-term marketable securities | 3,044 | 518 | ||||||
Property, equipment and improvements, net | 7,433 | 4,771 | ||||||
Deferred income tax assets, less current portion | 29,515 | 35,131 | ||||||
Goodwill | 15,479 | 15,422 | ||||||
Other intangible assets, net | 24,224 | 29,131 | ||||||
Other assets | 5,532 | 2,051 | ||||||
$ | 198,207 | $ | 179,265 | |||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Current portion of long-term debt | $ | 577 | $ | 1,156 | ||||
Accounts payable | 29,699 | 20,508 | ||||||
Accrued payroll and employee benefits | 5,082 | 6,594 | ||||||
Deferred revenue | 8,450 | 8,251 | ||||||
Other current liabilities | 6,302 | 5,609 | ||||||
Total current liabilities | 50,110 | 42,118 | ||||||
Long-term debt | 197 | 702 | ||||||
Other non-current liabilities | 4,341 | 3,298 | ||||||
Stockholders' equity: | ||||||||
Common stock | 362 | 359 | ||||||
Additional paid-in capital | 206,571 | 206,154 | ||||||
Accumulated deficit | (63,309 | ) | (73,301 | ) | ||||
Accumulated other comprehensive loss | (65 | ) | (65 | ) | ||||
Total stockholders' equity | 143,559 | 133,147 | ||||||
$ | 198,207 | $ | 179,265 |
- more -
CalAmp Reports Fiscal 2015
Third Quarter Results
December 23, 2014
Page 6 of 7
CAL AMP
CORP.
CONSOLIDATED CASH
FLOW STATEMENTS
(Unaudited - In thousands)
Nine Months Ended | |||||||
November 30, | |||||||
2014 | 2013 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 9,992 | $ | 8,736 | |||
Depreciation and amortization | 6,629 | 5,967 | |||||
Stock-based compensation expense | 2,924 | 2,129 | |||||
Amortization of debt issue costs and discount | 380 | 194 | |||||
Deferred tax assets, net | 5,770 | 4,469 | |||||
Other | 14 | - | |||||
Changes in operating working capital | (4,788 | ) | (2,090 | ) | |||
Net cash provided by operating activities |
20,921 | 19,405 | |||||
Cash flows from investing activities: | |||||||
Purchases of marketable securities, net of redemptions | (6,989 | ) | - | ||||
Capital expenditures | (4,398 | ) | (1,375 | ) | |||
Acquisition net of cash acquired | - | (46,837 | ) | ||||
Net cash used in investing activities | (11,387 | ) | (48,212 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from bank term loan, net of repayments | - | (1,800 | ) | ||||
Payment of acquisition-related note and contingent consideration | (2,299 | ) | (710 | ) | |||
Taxes paid related to net share settlement of vested equity awards | (3,045 | ) | (3,027 | ) | |||
Proceeds from exercise of stock options | 541 | 2,351 | |||||
Net cash used in financing activities | (4,803 | ) | (3,186 | ) | |||
Net change in cash and cash equivalents | 4,731 | (31,993 | ) | ||||
Cash and cash equivalents at beginning of period | 19,233 | 63,101 | |||||
Cash and cash equivalents at end of period | $ | 23,964 | $ | 31,108 |
- more -
CalAmp Reports Fiscal 2015
Third Quarter Results
December 23, 2014
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 | Nine Months Ended | |||||||||||||||
November 30, | November 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
GAAP Basis Pretax Income | $ | 6,421 | $ | 5,955 | $ | 15,967 | $ | 13,339 | ||||||||
Amortization of intangible assets | 1,635 | 1,485 | 4,952 | 4,618 | ||||||||||||
Stock-based compensation expense | 1,168 | 808 | 2,924 | 2,129 | ||||||||||||
Acquisition and integration expenses | - | - | - | 637 | ||||||||||||
Pretax income (non-GAAP basis) | 9,224 | 8,248 | 23,843 | 20,723 | ||||||||||||
Income tax provision (non-GAAP basis) (a) | (52 | ) | (82 | ) | (242 | ) | (146 | ) | ||||||||
Adjusted Basis Net Income | $ | 9,172 | $ | 8,166 | $ | 23,601 | $ | 20,577 | ||||||||
Adjusted Basis Net Income per diluted share | $ | 0.25 | $ | 0.23 | $ | 0.65 | $ | 0.57 | ||||||||
Weighted average common shares outstanding | ||||||||||||||||
on diluted basis | 36,526 | 36,206 | 36,508 | 35,901 |
(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 loss and tax credit carryforwards. |
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