Exhibit 99.1
FOR IMMEDIATE RELEASECalAmp Reports Fiscal 2014 Third Quarter Results
OXNARD, CA, December 23, 2013 -- CalAmp Corp. (NASDAQ: CAMP),a leading provider of wireless products, services and solutions, today reported results for its third quarter ended November 30, 2013. Highlights for the quarter include:
- Consolidated third quarter revenue of $63.5 million, up 43% compared to the third quarter last year with Wireless Datacom revenue up 37% over prior year third quarter to $49.7 million and Satellite revenue up 72% to $13.8 million.
- Third quarter GAAP net income of $4.2 million, or $0.12 per diluted share, compared to $4.2 million, or $0.14 per diluted share, for the third quarter last year.
- Adjusted Basis (non-GAAP) net income of $8.2 million, or $0.23 per diluted share, compared to $5.3 million, or $0.17 per diluted share, for the same period last year.
- Net cash provided by operations for the third quarter of $5.6 million, and total cash balance at November 30, 2013 of $31.1 million.
Commenting on results in the latest quarter, Michael Burdiek, CalAmp's President and Chief Executive Officer said, “CalAmp is on-track for a very strong second half of fiscal 2014. During the third quarter, Wireless Datacom segment revenue increased 37% year-over-year. In addition, Satellite segment revenue improved 72% compared to the third quarter of last year. Within the Wireless Datacom segment, our Mobile Resource Management (MRM) products continued to experience strong demand from our fleet management and asset tracking customers. Meaningful contributions from the emerging auto insurance telematics vertical also helped drive growth in the quarter. Our Wireless Networks business, which comprises the remainder of our Wireless Datacom segment, benefitted from strength in the energy markets, while our expanding pipeline of opportunities from the acquired operations of Wireless Matrix are expected to support future growth and margin expansion. In our Satellite segment, the increase in revenue and improved margins helped further expand CalAmp’s consolidated cash flow and bottom-line profitability. Also during the quarter, our strong cash flow and growing cash balance allowed us to pay off our bank term loan.”
Mr. Burdiek continued, “Subsequent to the end of the third quarter, we announced the acquisition of Radio Satellite Integrators, Inc. (RSI), a privately-held provider of fleet management solutions primarily to municipal government agencies supporting applications targeted at public works, waste management, transit and public safety. This transaction improves CalAmp’s competitive position and growth prospects in the state and local government market by augmenting CalAmp’s current range of public safety solutions. Importantly, RSI’s SaaS-based high margin revenue is expected to be accretive to CalAmp’s overall margins and non-GAAP earnings per share for our coming fiscal year.”
CalAmp Reports Fiscal 2014 Third Quarter Results
December 23, 2013
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Fiscal 2014 Third Quarter Results
Total revenue for the fiscal 2014 third quarter was $63.5 million compared to $44.3 million for the third quarter of fiscal 2013, an increase of 43%. Wireless Datacom revenue increased to $49.7 million from $36.3 million in the same period last year, and Satellite revenue was $13.8 million compared to $8.0 million in the third quarter last year.
Consolidated gross profit for the fiscal 2014 third quarter was $21.0 million, an increase of $7.0 million over the same quarter last year, primarily attributable to higher revenue. The consolidated gross margin was 33.1% in the fiscal 2014 third quarter, up from 31.6% in the third quarter last year. The increase in consolidated gross margin is due primarily to the contribution of the higher margin Software-as-a-Service (SaaS) revenue from the Wireless Matrix acquisition and margin improvement in the Satellite segment.
GAAP net income for the fiscal 2014 third quarter was $4.2 million, or $0.12 per diluted share, compared to net income of $4.2 million, or $0.14 per diluted share, in the third quarter of last year. The lower GAAP earnings per share is due in part to the elimination of substantially all of the Company’s deferred income tax asset valuation allowance at the end of fiscal 2013, which caused the Company’s effective income tax rate to revert to a level that is much closer to full statutory tax rates beginning in fiscal 2014. Despite this, on a cash basis, the Company’s pretax income is still largely sheltered from taxation by net operating loss (NOL) carryforwards, and is expected to remain so for about the next two years.
Non-GAAP net income for the fiscal 2014 third quarter was $8.2 million, or $0.23 per diluted share, compared to non-GAAP net income of $5.3 million, or $0.17 per diluted share, for the same quarter last year. Non-GAAP earnings exclude the impact of intangibles amortization and stock-based compensation expense, 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, 2013, the Company had total cash of $31.1 million and no bank debt outstanding. Net cash provided by operating activities during the third quarter was $5.6 million, and the unused borrowing capacity on the bank revolver as of the end of the third quarter was $15.0 million.
Business Outlook
Commenting on the Company's business outlook, Mr. Burdiek said, “Based on our current forecast, we anticipate that Wireless Datacom fourth quarter revenue will increase solidly on a sequential basis primarily driven by continued demand in our core market verticals, growing insurance telematics revenue and contribution from RSI. Due to normal quarterly fluctuations in demand from our DBS satellite customer, we currently expect Satellite fourth quarter revenues to be substantially lower on a sequential basis, more than offsetting the Wireless Datacom growth. As a result, we expect our fiscal 2014 fourth quarter consolidated revenue to be in the range of $60 to $63 million. At the bottom line, we expect fourth quarter GAAP basis net income in the range of $0.08 to $0.11 per diluted share, and non-GAAP net income in the range of $0.19 to $0.23 per diluted share.”
Conference Call and Webcast
A conference call and simultaneous webcast to discuss third quarter 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 1-877-407-0784 (1-201-689-8560 for international callers) and using the Conference ID # 13573343. An audio replay will be available through December 30, 2013 by calling 1-877-870-5176 or 1-858-384-5517 and entering the Conference ID # 13573343.
CalAmp Reports Fiscal 2014 Third Quarter Results
December 23, 2013
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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.
About CalAmp
CalAmp (NASDAQ: CAMP) is a proven leader in providing wireless communications solutions to a broad array of vertical market applications and customers. CalAmp’s 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 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. 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, 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 our Annual Report on Form 10-K that was filed on April 25, 2013 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 assurance that our expectations will be attained. We 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 |
| SVP, Corporate Development | | (424) 238-6249 |
| (805) 987-9000 | | lasseg@addocommunications.com |
CalAmp Reports Fiscal 2014 Third Quarter Results
December 23, 2013
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CAL AMP CORP.
CONSOLIDATED INCOME STATEMENTS
(Unaudited, in thousands except per share amounts)
| | Three Months Ended | | Nine Months Ended |
| | November 30, | | November 30, |
| | 2013 | | 2012 | | 2013 | | 2012 |
| Revenues | | $ | 63,503 | | | $ | 44,340 | | | $ | 176,056 | | | $ | 132,188 | |
| | | | | | | | | | | | | | | | | |
| Cost of revenues | | | 42,508 | | | | 30,308 | | | | 116,741 | | | | 90,345 | |
| | | | | | | | | | | | | | | | | |
| Gross profit | | | 20,995 | | | | 14,032 | | | | 59,315 | | | | 41,843 | |
| | | | | | | | | | | | | | | | | |
| Operating expenses: | | | | | | | | | | | | | | | | |
| Research and development | | | 5,267 | | | | 3,564 | | | | 15,721 | | | | 10,393 | |
| Selling | | | 4,920 | | | | 2,982 | | | | 14,789 | | | | 8,963 | |
| General and administrative | | | 3,291 | | | | 2,699 | | | | 10,521 | | | | 8,849 | |
| Intangible asset amortization | | | 1,485 | | | | 475 | | | | 4,618 | | | | 1,267 | |
| | | 14,963 | | | | 9,720 | | | | 45,649 | | | | 29,472 | |
| Operating income | | | 6,032 | | | | 4,312 | | | | 13,666 | | | | 12,371 | |
| | | | | | | | | | | | | | | | | |
| Non-operating expense, net | | | (77 | ) | | | (138 | ) | | | (327 | ) | | | (330 | ) |
| | | | | | | | | | | | | | | | | |
| Income before income taxes | | | 5,955 | | | | 4,174 | | | | 13,339 | | | | 12,041 | |
| | | | | | | | | | | | | | | | | |
| Income tax provision | | | (1,748 | ) | | | (19 | ) | | | (4,603 | ) | | | (45 | ) |
| | | | | | | | | | | | | | | | | |
| Net income | | $ | 4,207 | | | $ | 4,155 | | | $ | 8,736 | | | $ | 11,996 | |
| |
| Earnings per share - basic and diluted | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.12 | | | $ | 0.14 | | | $ | 0.25 | | | $ | 0.42 | |
| Diluted | | $ | 0.12 | | | $ | 0.14 | | | $ | 0.24 | | | $ | 0.40 | |
| Shares used in computing earnings per share: | | | | | | | | | | | | | | | | |
| Basic | | | 35,171 | | | | 29,210 | | | | 34,848 | | | | 28,537 | |
| Diluted | | | 36,206 | | | | 30,096 | | | | 35,901 | | | | 29,684 | |
BUSINESS SEGMENT INFORMATION
(Unaudited, in thousands)
| | Three Months Ended | | Nine Months Ended |
| | November 30, | | November 30, |
| | 2013 | | 2012 | | 2013 | | 2012 |
| Revenues | | | | | | | | | | | | | | | | |
| Wireless DataCom | | $ | 49,747 | | | $ | 36,334 | | | $ | 137,808 | | | $ | 102,178 | |
| Satellite | | | 13,756 | | | | 8,006 | | | | 38,248 | | | | 30,010 | |
| Total revenues | | $ | 63,503 | | | $ | 44,340 | | | $ | 176,056 | | | $ | 132,188 | |
| |
| Gross profit | | | | | | | | | | | | | | | | |
| Wireless DataCom | | $ | 18,159 | | | $ | 12,612 | | | $ | 51,674 | | | $ | 36,786 | |
| Satellite | | | 2,836 | | | | 1,420 | | | | 7,641 | | | | 5,057 | |
| Total gross profit | | $ | 20,995 | | | $ | 14,032 | | | $ | 59,315 | | | $ | 41,843 | |
| |
| Operating income | | | | | | | | | | | | | | | | |
| Wireless DataCom | | $ | 5,026 | | | $ | 4,500 | | | $ | 11,706 | | | $ | 12,893 | |
| Satellite | | | 1,785 | | | | 498 | | | | 4,561 | | | | 2,327 | |
| Corporate expenses | | | (779 | ) | | | (686 | ) | | | (2,601 | ) | | | (2,849 | ) |
| Total operating income | | $ | 6,032 | | | $ | 4,312 | | | $ | 13,666 | | | $ | 12,371 | |
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CalAmp Reports Fiscal 2014 Third Quarter Results
December 23, 2013
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CAL AMP CORP.
CONSOLIDATED BALANCE SHEETS
(In thousands)
| | November 30, | | February 28, |
| | 2013 | | 2013 |
| Assets | | (Unaudited) | | | | |
| Current assets: | | | | | | | | |
| Cash and cash equivalents | | $ | 31,108 | | | $ | 63,101 | |
| Accounts receivable, net | | | 30,897 | | | | 19,111 | |
| Inventories | | | 12,541 | | | | 13,516 | |
| Deferred income tax assets | | | 6,363 | | | | 6,400 | |
| Prepaid expenses and other current assets | | | 4,326 | | | | 4,641 | |
| Total current assets | | | 85,235 | | | | 106,769 | |
| Property, equipment and improvements, net | | | 4,426 | | | | 2,778 | |
| Deferred income tax assets, less current portion | | | 30,184 | | | | 34,616 | |
| Goodwill | | | 18,304 | | | | 1,112 | |
| Other intangible assets, net | | | 25,667 | | | | 4,603 | |
| Other assets | | | 1,490 | | | | 893 | |
| |
| | $ | 165,306 | | | $ | 150,771 | |
| |
| Liabilities and Stockholders' Equity | | | | | | | | |
| Current liabilities: | | | | | | | | |
| Current portion of long-term debt | | $ | 1,238 | | | $ | 2,261 | |
| Accounts payable | | | 17,005 | | | | 11,871 | |
| Accrued payroll and employee benefits | | | 5,518 | | | | 5,298 | |
| Deferred revenue | | | 6,699 | | | | 6,410 | |
| Other current liabilities | | | 3,684 | | | | 3,109 | |
| |
| Total current liabilities | | | 34,144 | | | | 28,949 | |
| |
| Long-term debt | | | 1,131 | | | | 2,434 | |
| Other non-current liabilities | | | 2,293 | | | | 1,839 | |
| |
| Stockholders' equity: | | | | | | | | |
| Common stock | | | 356 | | | | 350 | |
| Additional paid-in capital | | | 203,815 | | | | 202,368 | |
| Accumulated deficit | | | (76,368 | ) | | | (85,104 | ) |
| Accumulated other comprehensive loss | | | (65 | ) | | | (65 | ) |
| |
| Total stockholders' equity | | | 127,738 | | | | 117,549 | |
| |
| | $ | 165,306 | | | $ | 150,771 | |
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CalAmp Reports Fiscal 2014 Third Quarter Results
December 23, 2013
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CAL AMP CORP.
CONSOLIDATED CASH FLOW STATEMENTS
(Unaudited - In thousands)
| | Nine Months Ended |
| | November 30, |
| | 2013 | | 2012 |
| Cash flows from operating activities: | | | | | | | | |
| Net income | | $ | 8,736 | | | $ | 11,996 | |
| Depreciation and amortization | | | 5,967 | | | | 1,995 | |
| Stock-based compensation expense | | | 2,129 | | | | 2,292 | |
| Amortization of debt issue costs and discount | | | 194 | | | | 248 | |
| Deferred tax assets, net | | | 4,469 | | | | - | |
| Changes in operating working capital | | | (2,090 | ) | | | (5,723 | ) |
| Other | | | - | | | | 15 | |
| |
| Net cash provided by operating activities | | | 19,405 | | | | 10,823 | |
| |
| Cash flows from investing activities: | | | | | | | | |
| Capital expenditures | | | (1,375 | ) | | | (1,396 | ) |
| Navman Wireless asset purchase agreement | | | - | | | | (1,000 | ) |
| Wireless Matrix acquisition, net of cash acquired | | | (46,837 | ) | | | - | |
| Collections on note receivable | | | - | | | | 430 | |
| Other | | | - | | | | (8 | ) |
| |
| Net cash used in investing activities | | | (48,212 | ) | | | (1,974 | ) |
| |
| Cash flows from financing activities: | | | | | | | | |
| Proceeds from bank term loan | | | 5,000 | | | | - | |
| Debt repayments | | | (7,510 | ) | | | (960 | ) |
| Taxes paid related to net share settlement of vested equity awards | | | (3,027 | ) | | | (2,551 | ) |
| Proceeds from exercise of stock options and warrants | | | 2,351 | | | | 2,621 | |
| |
| Net cash used in financing activities | | | (3,186 | ) | | | (890 | ) |
| |
| Net change in cash and cash equivalents | | | (31,993 | ) | | | 7,959 | |
| |
| Cash and cash equivalents at beginning of period | | | 63,101 | | | | 5,601 | |
| |
| Cash and cash equivalents at end of period | | $ | 31,108 | | | $ | 13,560 | |
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CalAmp Reports Fiscal 2014 Third Quarter Results
December 23, 2013
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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, |
| | 2013 | | 2012 | | 2013 | | 2012 |
| GAAP basis pretax income | | $ | 5,955 | | | $ | 4,174 | | | $ | 13,339 | | | $ | 12,041 | |
| | | | | | | | | | | | | | | | | |
| Amortization of intangible assets | | | 1,485 | | | | 475 | | | | 4,618 | | | | 1,267 | |
| Stock-based compensation expense | | | 808 | | | | 620 | | | | 2,129 | | | | 2,292 | |
| Acquisition and integration expenses | | | - | | | | - | | | | 637 | | | | - | |
| Pretax income (non-GAAP basis) | | | 8,248 | | | | 5,269 | | | | 20,723 | | | | 15,600 | |
| | | | | | | | | | | | | | | | | |
| Income tax provision (non-GAAP basis) (a) | | | (82 | ) | | | (19 | ) | | | (146 | ) | | | (45 | ) |
| Adjusted Basis net income | | $ | 8,166 | | | $ | 5,250 | | | $ | 20,577 | | | $ | 15,555 | |
| | | | | | | | | | | | | | | | | |
| Adjusted Basis net income per diluted share | | $ | 0.23 | | | $ | 0.17 | | | $ | 0.57 | | | $ | 0.52 | |
| | | | | | | | | | | | | | | | | |
| Weighted average common shares outstanding | | | | | | | | | | | | | | | | |
| on diluted basis | | | 36,206 | | | | 30,096 | | | | 35,901 | | | | 29,684 | |
| (a) | | The non-GAAP income tax provision represents cash taxes paid for the period after giving effect to the utilization of net operating loss and tax credit carryforwards. |
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