Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 28, 2019 | Apr. 25, 2019 | Aug. 31, 2018 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | CalAmp Corp. | ||
Entity Central Index Key | 0000730255 | ||
Entity Filer Category | Accelerated Filer | ||
Trading Symbol | CAMP | ||
Current Fiscal Year End Date | --02-28 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Feb. 28, 2019 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2019 | ||
Entity Well-Known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 684 | ||
Entity Common Stock, Shares Outstanding | 33,597,344 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Feb. 28, 2019 | Feb. 28, 2018 | ||
Current assets: | ||||
Cash and cash equivalents | $ 256,500 | $ 132,603 | ||
Short-term marketable securities | 17,512 | 23,400 | ||
Accounts receivable, net | 78,079 | 71,580 | ||
Inventories | 32,033 | 36,302 | ||
Prepaid expenses and other current assets | 19,373 | [1] | 12,000 | [2] |
Total current assets | 403,497 | 275,885 | ||
Property and equipment, net | 27,023 | 21,262 | ||
Deferred income tax assets | 22,626 | 31,581 | ||
Goodwill | 80,805 | 72,980 | ||
Other intangible assets, net | 47,165 | 52,456 | ||
Other assets | 22,510 | [1] | 18,829 | [2] |
Total assets | 603,626 | 472,993 | ||
Current liabilities: | ||||
Accounts payable | 39,898 | 35,478 | ||
Accrued payroll and employee benefits | 8,808 | 10,606 | ||
Deferred revenue | 24,264 | 17,757 | ||
Other current liabilities | 10,622 | 31,688 | ||
Total current liabilities | 83,592 | 95,529 | ||
Convertible senior unsecured notes, net | 275,905 | 154,299 | ||
Other non-current liabilities | 38,476 | [3] | 24,249 | |
Total liabilities | 397,973 | 274,077 | ||
Commitments and contingencies (see Notes 18 and 19) | ||||
Stockholders' equity: | ||||
Preferred stock, $.01 par value; 3,000 shares authorized; no shares issued or outstanding | ||||
Common stock, $.01 par value; 80,000 shares authorized; 33,555 and 35,718 shares issued and outstanding at February 28, 2019 and 2018, respectively | 336 | 357 | ||
Additional paid-in capital | 208,205 | 218,217 | ||
Accumulated deficit | (2,227) | (19,459) | ||
Accumulated other comprehensive loss | (661) | (199) | ||
Total stockholders' equity | 205,653 | 198,916 | ||
Total Liabilities and Stockholders' Equity | $ 603,626 | $ 472,993 | ||
[1] | Deferred product costs included in Prepaid expenses and other current assets and Other assets amounted to $6.2 million and $8.8 million, respectively, as of February 28, 2019. | |||
[2] | Deferred product costs included in Prepaid expenses and other current assets and Other assets amounted to $5.4 million and $6.0 million, respectively, as of March 1, 2018. | |||
[3] | The balances as of February 28, 2019 also included deferred revenue of TRACKER, which was acquired on February 25, 2019 (see Note 2). |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Feb. 28, 2019 | Feb. 28, 2018 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 3,000,000 | 3,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 80,000,000 | 80,000,000 |
Common stock, shares issued | 33,555,000 | 35,718,000 |
Common stock, shares outstanding | 33,555,000 | 35,718,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 | |
Revenues: | |||
Revenues | $ 363,800 | $ 365,912 | $ 351,102 |
Cost of revenues: | |||
Cost of revenues | 216,036 | 215,022 | 207,750 |
Gross profit | 147,764 | 150,890 | 143,352 |
Operating expenses: | |||
Research and development | 27,656 | 25,761 | 22,005 |
Selling and marketing | 49,892 | 50,096 | 49,044 |
General and administrative | 31,070 | 52,089 | 57,119 |
Restructuring (see Note 11) | 8,015 | ||
Intangible asset amortization | 11,436 | 14,989 | 15,061 |
Total operating expenses | 128,069 | 142,935 | 143,229 |
Operating income | 19,695 | 7,955 | 123 |
Non-operating income (expense): | |||
Investment income | 5,258 | 2,256 | 1,691 |
Interest expense | (16,726) | (10,280) | (9,896) |
Gain on legal settlement (see Note 19) | 18,333 | 28,333 | |
Loss on extinguishment of debt (see Note 10) | (2,033) | ||
Other income (expense), net | (672) | 445 | (101) |
Total non-operating income (expense) | 4,160 | 20,754 | (8,306) |
Income (loss) before income taxes and impairment loss and equity in net loss of affiliate | 23,855 | 28,709 | (8,183) |
Income tax benefit (provision) | 1,330 | (10,681) | 1,563 |
Income (loss) before impairment loss and equity in net loss of affiliate | 25,185 | 18,028 | (6,620) |
Impairment loss and equity in net loss of affiliate (see Note 9) | (6,787) | (1,411) | (1,284) |
Net income (loss) | $ 18,398 | $ 16,617 | $ (7,904) |
Earnings (loss) per share: | |||
Basic | $ 0.53 | $ 0.47 | $ (0.22) |
Diluted | $ 0.52 | $ 0.46 | $ (0.22) |
Shares used in computing earnings (loss) per share: | |||
Basic | 34,589 | 35,250 | 35,917 |
Diluted | 35,294 | 36,139 | 35,917 |
Comprehensive income (loss): | |||
Net income (loss) | $ 18,398 | $ 16,617 | $ (7,904) |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments, net of tax | (33) | (122) | (280) |
Unrealized income (loss) on available-for-sale securities, net of tax | (429) | 464 | (35) |
Total comprehensive income (loss) | 17,936 | 16,959 | (8,219) |
Products [Member] | |||
Revenues: | |||
Revenues | 285,883 | 301,700 | 291,685 |
Cost of revenues: | |||
Cost of revenues | 175,009 | 181,889 | 178,012 |
Application Subscriptions and Related Products and Other Services [Member] | |||
Revenues: | |||
Revenues | 77,917 | 64,212 | 59,417 |
Cost of revenues: | |||
Cost of revenues | $ 41,027 | $ 33,133 | $ 29,738 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] |
Balances at Feb. 29, 2016 | $ 189,447,000 | $ 367,000 | $ 229,159,000 | $ (39,853,000) | $ (226,000) |
Balances (in shares) at Feb. 29, 2016 | 36,667,000 | ||||
Net income (loss) | (7,904,000) | (7,904,000) | |||
Stock-based compensation expense | 7,833,000 | 7,833,000 | |||
Issuance of shares for restricted stock awards | $ 1,000 | (1,000) | |||
Issuance of shares for restricted stock awards (in shares) | 149,000 | ||||
Shares issued on net share settlement of equity awards | (1,780,000) | $ 2,000 | (1,782,000) | ||
Shares issued on net share settlement of equity awards (in shares) | 150,000 | ||||
Exercise of stock options | $ 961,000 | $ 1,000 | 960,000 | ||
Exercise of stock options (in shares) | 125,000 | 125,000 | |||
Repurchase of common stock | $ (25,000,000) | $ (18,000) | (24,982,000) | ||
Repurchase of common stock (in shares) | (1,760,563) | (1,761,000) | |||
Other comprehensive income (loss), net of tax | $ (315,000) | (315,000) | |||
Balances at Feb. 28, 2017 | 163,242,000 | $ 353,000 | 211,187,000 | (47,757,000) | (541,000) |
Balances (in shares) at Feb. 28, 2017 | 35,330,000 | ||||
Net income (loss) | 16,617,000 | 16,617,000 | |||
Cumulative adjustment upon adoption, net of tax | ASU 2016-09 [Member] | 11,681,000 | 11,681,000 | |||
Stock-based compensation expense | 9,298,000 | 9,298,000 | |||
Issuance of shares for restricted stock awards | $ 1,000 | (1,000) | |||
Issuance of shares for restricted stock awards (in shares) | 107,000 | ||||
Shares issued on net share settlement of equity awards | (2,594,000) | $ 2,000 | (2,596,000) | ||
Shares issued on net share settlement of equity awards (in shares) | 141,000 | ||||
Exercise of stock options | $ 330,000 | $ 1,000 | 329,000 | ||
Exercise of stock options (in shares) | 140,000 | 140,000 | |||
Other comprehensive income (loss), net of tax | $ 342,000 | 342,000 | |||
Balances at Feb. 28, 2018 | 198,916,000 | $ 357,000 | 218,217,000 | (19,459,000) | (199,000) |
Balances (in shares) at Feb. 28, 2018 | 35,718,000 | ||||
Net income (loss) | 18,398,000 | 18,398,000 | |||
Cumulative adjustment upon adoption, net of tax | ASC 606 [Member] | (1,595,000) | (1,595,000) | |||
Cumulative adjustment upon adoption, net of tax | ASU 2016-01 [Member] | 429,000 | (429,000) | |||
Purchase of capped call of 2025 Convertible Notes, net of tax | (15,870,000) | (15,870,000) | |||
Equity component of 2025 Convertible Notes, net of tax | 51,902,000 | 51,902,000 | |||
Debt issuance costs allocated to equity component of 2025 Convertible Notes, net of tax | (1,649,000) | (1,649,000) | |||
Unwind of note hedges and warrants of 2020 Convertible Notes | 3,122,000 | 3,122,000 | |||
Equity component of the repurchased 2020 Convertible Notes | (6,088,000) | (6,088,000) | |||
Stock-based compensation expense | 11,029,000 | 11,029,000 | |||
Issuance of shares for restricted stock awards | $ 1,000 | (1,000) | |||
Issuance of shares for restricted stock awards (in shares) | 84,000 | ||||
Shares issued on net share settlement of equity awards | (3,603,000) | $ 2,000 | (3,605,000) | ||
Shares issued on net share settlement of equity awards (in shares) | 183,000 | ||||
Exercise of stock options | $ 124,000 | $ 1,000 | 123,000 | ||
Exercise of stock options (in shares) | 66,000 | 66,000 | |||
Repurchase of common stock | $ (49,000,000) | $ (25,000) | (48,975,000) | ||
Repurchase of common stock (in shares) | (2,496,422) | (2,496,000) | |||
Other comprehensive income (loss), net of tax | $ (33,000) | (33,000) | |||
Balances at Feb. 28, 2019 | $ 205,653,000 | $ 336,000 | $ 208,205,000 | $ (2,227,000) | $ (661,000) |
Balances (in shares) at Feb. 28, 2019 | 33,555,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) | $ 18,398 | $ 16,617 | $ (7,904) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation | 8,580 | 7,968 | 8,408 |
Intangible asset amortization | 11,436 | 14,989 | 15,061 |
Stock-based compensation expense | 11,029 | 9,298 | 7,833 |
Amortization of convertible debt issue costs and discount | 11,492 | 7,472 | 7,027 |
Loss on extinguishment of debt | 2,033 | ||
Tax benefits on vested and exercised equity awards | 758 | 937 | |
Deferred tax assets, net | (1,244) | 6,372 | (2,735) |
Unrealized foreign currency transaction gains (loss) | 404 | (524) | |
Impairment loss and equity in net loss of affiliate | 6,787 | 1,411 | 1,284 |
Impairment of internal use software | 1,364 | ||
Changes in operating assets and liabilities, excluding effects from acquisitions: | |||
Accounts receivable | (4,855) | (6,447) | 3,090 |
Inventories | 5,435 | (6,516) | 221 |
Prepaid expenses and other current assets | (10,078) | (4,607) | (178) |
Accounts payable | 1,876 | 5,068 | (4,623) |
Accrued liabilities | (20,830) | 7,804 | (5,171) |
Deferred revenue | 6,153 | 7,044 | 2,151 |
Other | 366 | 8 | (32) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 47,740 | 66,894 | 25,796 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Proceeds from maturities and sale of marketable securities | 56,358 | 22,382 | 114,426 |
Purchases of marketable securities | (50,364) | (38,077) | (32,430) |
Capital expenditures | (12,007) | (8,339) | (7,962) |
Acquisitions, net of cash acquired | (13,031) | (116,982) | |
Equity investment in and advances to affiliate | (2,631) | (2,281) | (2,636) |
Other | (110) | (136) | (2) |
NET CASH USED IN INVESTING ACTIVITIES | (21,785) | (26,451) | (45,586) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Taxes paid related to net share settlement of vested equity awards | (3,603) | (2,594) | (1,780) |
Proceeds from exercise of stock options | 124 | 330 | 961 |
Proceeds from issuance of 2025 Convertible Notes | 230,000 | ||
Payment of debt issuance costs of 2025 Convertible Notes | (7,305) | ||
Purchase of capped call on 2025 Convertible Notes | (21,160) | ||
Repurchase of 2020 Convertible Notes | (53,683) | ||
Proceeds from unwind of note hedges and warrants on 2020 Convertible Notes | 3,122 | ||
Repurchases of common stock | (49,000) | (25,000) | |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 98,495 | (2,264) | (25,819) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (553) | 718 | (73) |
Net change in cash and cash equivalents | 123,897 | 38,897 | (45,682) |
Cash and cash equivalents at beginning of year | 132,603 | 93,706 | 139,388 |
Cash and cash equivalents at end of year | $ 256,500 | $ 132,603 | $ 93,706 |
DESCRIPTION OF BUSINESS AND SUM
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Feb. 28, 2019 | |
Accounting Policies [Abstract] | |
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 – DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business CalAmp Corp. (referred to herein as “CalAmp”, “the Company”, “we”, “our”, or “us”) is a telematics pioneer leading transformation in a global connected economy. We help reinvent businesses and improve lives around the globe with technology solutions that streamline complex mobile Internet of Things (“IoT”) deployments through wireless connectivity solutions and derived data intelligence. Our software applications, scalable cloud services, and intelligent devices collect and assess business-critical data anywhere in the world from industrial machines, commercial and passenger vehicles, their drivers and contents. We are a global organization that is headquartered in Irvine, California. We operate under two reportable segments: Telematics Systems and Software & Subscription Services. On February 25, 2019, we completed our acquisition of Tracker Network (UK) Limited (“TRACKER”), a LoJack licensee and a market leader in SVR telematics services across the United Kingdom, for a cash purchase price of approximately $13.0 million. See Note 2 for a description of this acquisition. In the same month, we entered into an agreement to acquire Car Track, S.A. de C.V., the exclusive licensee of LoJack technology for the Mexican market. The agreement was to purchase the 87.5% of the Car Track shares not currently owned by CalAmp for a purchase price, net of cash on hand, of approximately $13.0 million. We completed the acquisition on March 18, 2019. On April 12, 2019, we acquired Synovia Solutions (“Synovia”), a North American market leader in fleet safety and management for K-12 school bus and state and local government fleets for a purchase price, net of cash on hand, of approximately $50 million. Combined with the recent acquisitions of TRACKER and Car Track, the Synovia acquisition expands our fleet management and vehicle safety services portfolio and accelerates our transformation to high-value subscription-based services. Principles of Consolidation Our consolidated financial statements include the accounts of CalAmp Corp. (a Delaware corporation) and all of our wholly-owned subsidiaries. All intercompany transactions and accounts have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results may differ from those estimates and assumptions. Significant items subject to such estimates and assumptions include the allowance for doubtful accounts; estimate for the lower of cost or market for excess and obsolete inventory; product warranties; deferred income tax asset valuation allowances; intangible assets and other long-lived assets; intellectual property and accrued royalties; stock-based compensation; other contingencies and revenue recognition. The current economic environment, and supplier and customer concentrations also increase the degree of uncertainty inherent in these estimates and assumptions. Revenue Recognition In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (“ASC 606”). The new revenue recognition standard provides a five-step analytical framework for transactions to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In order to adhere to this core principle, we apply the following five-step approach: • identify the contract with a customer; • identify the performance obligations in the contract; • determine the transaction price; • allocate the transaction price to the performance obligations in the contract; and • recognize revenue when (or as) we satisfy a performance obligation. We only apply the five-step model to contracts when it is probable that we will collect the consideration we are entitled to in exchange for goods or services we transfer to the customer. The two permitted transition methods under the new standard are the full retrospective method or the modified retrospective method. We adopted the new standard effective March 1, 2018 using the modified retrospective method, which we applied to all contracts that were not completed on adoption date. We applied the provisions of ASC 605 to revenue recognized during each of the fiscal years ended February 28, 2018 and 2017. In the section titled Recently Issued Accounting Standards Products . In accordance with ASC 606, we recognize revenue from product sales upon transfer of control of promised products to customers in an amount that reflects the transaction price, which is generally the stand-alone selling prices of the promised goods. For product shipments made on the basis of “FOB Destination” terms, revenue is recorded when the products reach the customer. Customers generally do not have a right of return except for defective products returned during the warranty period. We record estimated commitments related to customer incentive programs as reductions of revenues. Professional Services . We also provide various professional services to customers. These include project management, engineering services, installation services and an on-going early warning automated notification service, which are typically distinct from other performance obligations and are recognized as the related services are performed. For certain professional service contracts, we recognize revenue based on the proportion of total costs incurred to-date over the estimated cost of the contract, which is an input method. Software-as-a-Service (“SaaS”) . Our SaaS-based subscriptions for our fleet management, vehicle finance and certain other verticals provide our customers with the ability to wirelessly communicate with monitoring devices installed in vehicles and other mobile or remote assets via our software applications. The transaction price for a typical SaaS arrangement includes the price for the hardware, accessories, installation and application subscriptions. Generally, we defer the recognition of revenue for the customized devices that only function with our applications and are sold on an integrated basis with applicable subscriptions. Such customized devices and the application services are not sold separately. In such circumstances, the associated product costs are recorded as deferred costs in the balance sheet. The upfront fees for the devices are not distinct from the subscription service and are combined into the subscription service performance obligation. Generally, these service arrangements do not provide the customer with the right to take possession of the software supporting the subscription service at any time. Revenues from subscription services are recognized ratably, on a straight-line basis, over the term of the subscription. The deferred product revenue and deferred product cost amounts are amortized to application subscriptions and related products and other services revenue and cost of revenue, respectively, on a straight-line basis over the estimated average in-service lives of these devices, which are three years in the vehicle finance and four years in the fleet management verticals. Our deferred revenue under ASC 606 also includes prepayments from our customers for various subscription services but does not include future subscription fees associated with customers’ unexercised contract renewal rights. The product revenues for certain customer arrangements are presented combined within Application subscription and related products and other services in our statement of comprehensive income (loss) as the products and services are customarily part of one customer contractual arrangement. In certain customer arrangements, we also sell devices together with monitoring services, for which revenues for the sales of the devices are recognized upon transfer of control to the customer and monitoring services are recognized over the service period as the devices and services are customarily part of one customer contractual arrangement. The allocation of the transaction price is based on estimated stand-alone selling prices for the devices and the monitoring services. The revenues under these arrangements are included within Application Subscription and Related Products and Other Services revenues and costs of revenues in our statement of comprehensive income (loss). Sales taxes . We exclude from the measurement of the transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by us from a customer. Contract Balances . Timing of revenue recognition may differ from the timing on our invoicing to customers. Contract liabilities are comprised of billings or payments received from our customers in advance of performance under the contract. We refer to these contract liabilities as “Deferred Revenues” in the accompanying condensed consolidated financial statements. During fiscal year ended February 28, 2019, we recognized $20.4 million in revenue from the beginning deferred revenue balance of $41.7 million on March 1, 2018. Certain incremental costs of obtaining a contract with a customer consist of deferred costs of hardware and sales commissions. The deferred costs of hardware are capitalized and amortized over the estimated useful life of the device on a straight-line basis. We determined that sales commissions are generally recognized within one year; therefore, we have elected the practical expedient to expense sales commission costs as incurred. We disaggregate revenue from contracts with customers into reportable segments, geography, type of goods and services and timing of revenue recognition. See Note 20 for our revenue by segment and geography. The disaggregation of revenue by type of goods and services and by timing of revenue recognition was as follows (in thousands): Year Ended February 28, 2019 Revenue by type of goods and services: Products $ 300,378 Professional services 5,989 Recurring application subscriptions 57,433 Total $ 363,800 Revenue by timing of revenue recognition: Revenue recognized at a point in time $ 300,378 Revenue recognized over time 63,422 Total $ 363,800 Product revenues presented in the table above include devices sold in customer arrangements that include both the device and monitoring services. Recurring application subscriptions revenues include the amortization for customized devices functional only with application subscriptions. We adopted ASC 606 under the modified retrospective method on March 1, 2018, and therefore we did not present comparative information for the years ended February 28, 2018 and 2017. As of February 28, 2019, we have estimated remaining performance obligations for contractually committed revenues of $51.4 million, of which we expect to recognize approximately 48% in fiscal 2020 and 29% in fiscal 2021. We have utilized the practical expedient exception within ASC 606 and exclude contracts that have original durations of less than one year from the aforementioned remaining performance obligation disclosure. Cash and Cash Equivalents We consider all highly liquid investments with maturities at date of purchase of three months or less to be cash equivalents. Concentrations of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash equivalents, marketable debt securities and trade accounts receivable. Cash and cash equivalents as well as investments are maintained with several financial institutions. Deposits held with banks may exceed the federally insured limits. These deposits are maintained with reputable financial institutions and are redeemable upon demand. We have not experienced any losses in such accounts. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable consists of amounts due to us from sales arrangements executed in our normal business activities and are recorded at invoiced amounts. Our payment terms generally range between 30 to 60 days and we do not offer financing options. We present the aggregate accounts receivable balance net of an allowance for doubtful accounts. Generally, collateral and other security is not obtained for outstanding accounts receivable. Credit losses, if any, are recognized based on management’s evaluation of historical collection experience, customer-specific financial conditions as well as an evaluation of current industry trends and general economic conditions. Past due balances are assessed by management on a periodic basis and balances are written off when the customer’s financial condition no longer warrants pursuit of collection. Although we expect to collect amounts due, actual collections may differ from estimated amounts. Inventories Inventories are stated at the lower of cost (using the first-in, first-out method) or market (net realizable value). Inventories are reviewed for excess quantities and obsolescence based upon demand forecasts for a specific time horizon. We record a charge to cost of revenues for the amount required to reduce the carrying value of inventory to estimated net realizable value. Ongoing changes in cellular carrier technology, supplier changes, closure of our warehouse facilities, changes in demand or significant reductions in product pricing may necessitate additional write-downs of inventory carrying value in the future, which could be material. Property and equipment Property and equipment are recorded at cost and depreciated using the straight-line method over the respective estimated useful lives of the assets ranging from two to ten years. Leasehold improvements are amortized using the straight-line method over the lesser of the lease term or the estimated useful life of the assets. Maintenance and repairs are expensed as incurred. We capitalize certain costs incurred in connection with developing or obtaining internal-use software and software embedded in our products. These costs are recorded as property and equipment in our consolidated balance sheets and are amortized over useful lives ranging from three to seven years. Business Combinations The purchase price of an acquisition is allocated to the underlying assets acquired and liabilities assumed based upon their estimated fair value at the date of acquisition. To the extent the purchase price exceeds the fair value of the net identifiable tangible and intangible assets acquired and liabilities assumed, such excess is allocated to goodwill. We determine the estimated fair values after review and consideration of relevant information, including discounted cash flows, quoted market prices and other estimates made by management. We may refine the preliminary purchase price allocation, as necessary, during the measurement period of up to one year after the acquisition closing date as we obtain more information as to facts and circumstances existing at the acquisition date impacting the asset valuations and liabilities assumed. Goodwill acquired in business combinations is assigned to the reporting unit expected to benefit from the combination as of the acquisition date. Acquisition-related costs are recognized separately from the acquisition and are expensed as incurred. Goodwill and Other Intangible Assets Goodwill is recorded as the difference between the aggregate consideration paid in a business combination and the fair value of the acquired net tangible and intangible assets. Goodwill is not amortized but rather tested for impairment on an annual or interim basis as deemed necessary. Our acquired identifiable intangible assets from business combinations consist principally of developed technology, customer lists, dealer relationships and tradenames. Our acquired intangible assets with definite lives are amortized from the date of acquisition over periods ranging from two to ten years using a method that reflects the pattern in which the economic benefits of the intangible assets are consumed or otherwise used or, if that pattern cannot be reliably determined, using a straight-line amortization method. Impairment of Goodwill and Other Long-Lived Assets We evaluate goodwill for impairment on an annual basis in the fourth quarter, or on an interim basis, if we believe indicators of impairment exist. We first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If we conclude that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we conduct a two-step quantitative goodwill impairment test. The first step of the impairment test involves comparing the fair value of the reporting unit with its carrying value. If the carrying amount of the reporting unit exceeds the reporting unit’s fair value, we perform the second step of the goodwill impairment test. The second step of the goodwill impairment test involves comparing the implied fair value of the reporting unit’s goodwill with the carrying value of the goodwill. The amount by which the carrying value of the goodwill exceeds its implied fair value will be recognized as an impairment loss. In both fiscal 2019 and 2018, we conducted a quantitative goodwill impairment test and did not identify an impairment indicator as part of our quantitative step one analysis. Long-lived assets to be held and used, including identifiable intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. These events or changes in circumstances may include a significant deterioration of operating results, changes in business plans or changes in anticipated future cash flows. If an impairment indicator is present, we evaluate recoverability by a comparison of the carrying amount of the assets or asset group to future undiscounted net cash flows expected to be generated by the lowest level of asset group. Given the interdependencies of revenues across our segments, product and service verticals, and geographies, our asset groups are generally our two operating segments. If the assets or asset group are impaired, the impairment recognized is measured by the amount by which the carrying amount exceeds the fair value of the assets. Fair value is generally determined by estimates of discounted cash flows. The discount rate used in any estimate of discounted cash flows would be the rate required for similar investment of like risk. Impairment of Equity Method Investments We assess whether there are indicators that the value of our equity method investments may be impaired. An impairment charge is recognized only if we determine that a decline in the value of the investment below our carrying value is other-than-temporary. The assessment of impairment is highly subjective and involves the application of significant assumptions and judgments about our intent and ability to recover our investment given the nature and operations of the underlying investment, including the level of our involvement therein, among other factors. To the extent an impairment is deemed to be other-than-temporary, the loss is measured as the excess of the carrying amount of the investment over the estimated fair value of the investment. Impairment charges are included in Impairment loss and equity in net loss of affiliate. Fair Value Measurements Our cash equivalents, accounts receivable, accounts payable and accrued expenses approximate fair value due to the short-term maturities of these items. Our marketable securities are measured at fair value on a recurring basis. The framework for measuring fair value and related disclosure requirements about fair value measurements are provided in ASC 820, Fair Value Measurements Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Observable inputs other than quoted prices in active markets for identical assets or liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. Research and Development Costs Research and development costs are expensed as incurred. In certain cases, costs are incurred to purchase materials and equipment for future use in research and development efforts. In such cases, these costs are capitalized and expensed as consumed. Product Warranty All products have a one- or two-year limited warranty against manufacturing defects and workmanship. We estimate the future costs relating to product returns subject to our warranty and record a reserve upon shipment of our products. We periodically adjust our estimates for actual warranty claims, historical claims experience as well as the impact of known product quality issues. Patent Litigation and Other Contingencies We accrue for patent litigation and other contingencies whenever we determine that an unfavorable outcome is probable and a liability is reasonably estimable. The amount of the accrual is estimated based on a review of each claim, including the type and facts of the claim and our assessment of the merits of the claim. These accruals are reviewed at least on a quarterly basis and are adjusted to reflect the impact of recent negotiations, settlements, court rulings, advice from legal counsel and other events pertaining to the case. Such accruals, if any, are recorded as general and administrative expense in our consolidated statements of comprehensive income (loss). Although we take considerable measures to mitigate our exposure in these matters, litigation is unpredictable; however, we believe that we have valid defenses with respect to pending legal matters against us as well as adequate provisions for probable and estimable losses. All costs for legal services are expensed as incurred. Income Taxes We use the asset and liability method when accounting for income taxes. Under this method, deferred income tax assets and liabilities are recognized for future tax consequences attributable to difference between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to the taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We recognize the effect of income tax positions only if those positions are more likely than not of being sustained. Changes in recognition or measurement are reflected in the period in which the change in judgement occurs. Valuation allowances are provided against tax assets when it is determined that it is more likely than not that the assets will not be realized. In assessing valuation allowances, we review historical and future expected operating results and other factors, including cumulative earnings experience, expectations of future taxable income by jurisdiction and the carryforward periods available for reporting purposes. We recognize interest and/or penalties related to uncertain tax positions in income tax expense. Foreign Currency Translation We translate the assets and liabilities of our non-U.S. dollar functional currency subsidiaries into U.S. dollars using exchange rates in effect at the end of each period. Revenue and expenses for these subsidiaries are translated using rates that approximate those in effect during the period. Gains and losses from these translations are recognized in foreign currency translation included in Accumulated Other Comprehensive Income (Loss) during the period. The aggregate foreign currency transaction exchange rate gain (losses) included in determining income (loss) before income taxes were $(0.4) million, $0.5 million and $0.1 million in fiscal years 2019, 2018 and 2017, respectively. Stock-Based Compensation Our stock-based compensation expense resulting from grants of employee stock options, restricted stock and restricted stock units is recognized in the consolidated financial statements based on the respective grant date fair values of the awards. We generally estimate stock option grant date fair value using the Black-Scholes-Merton option pricing model and recognize the expense over a requisite service (vesting) period using the straight-line method. The measurement of stock-based compensation is based on several criteria such as the type of equity award, the valuation model used and associated input factors including the expected term of the award, stock price volatility, risk free interest rate and forfeiture rate. Certain of these inputs are subjective and are determined based in part on management's judgment. We account for forfeitures as they occur, rather than estimating expected forfeitures over the course of a vesting period. Other Comprehensive Income (Loss) Other comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss) (“OCI”). OCI refers to revenue, expenses and gains and losses that under U.S. GAAP are recorded as an element of stockholders’ equity and excluded from net income (loss). Our OCI consists of foreign currency translation adjustments from those subsidiaries not using the U.S. dollar as their functional currency. Recently Issued Accounting Standards In May 2017, the FASB issued Accounting Standards Update 2017-09, Compensation – Stock Compensation: Scope of Modification Accounting Compensation – Stock Compensation In January 2017, the FASB issued Accounting Standards Update 2017-04, Simplifying the Test for Goodwill Impairment After the adoption of this standard on a prospective basis, we will follow a one-step model for goodwill impairment In February 2016, the FASB issued ASU 2016-02, Leases We developed a cross-functional team to evaluate and implement the new guidance and we have substantially completed the implementation of a third-party software solution to facilitate compliance with the accounting and reporting requirements. The team continues to review existing lease arrangements, and has collected and loaded a significant portion of the lease portfolio into the software. Additionally, we continue to enhance our accounting systems and update business processes and controls related to the new guidance for leases. Collectively, these activities are expected to enable us to meet the new accounting and disclosure requirements upon adoption in the first quarter of fiscal 2020. We have elected to apply the transition requirements at the March 1, 2019, adoption date rather than at the beginning of the earliest comparative period presented. This approach allows for a cumulative effect adjustment in the period of adoption, and prior periods will not be restated. In addition, we have elected the package of practical expedients permitted under the transition guidance, which does not require reassessment of prior conclusions related to contracts containing a lease, lease classification and initial direct lease costs. As an accounting policy election, we will exclude short-term leases (term of 12 months or less) from the balance sheet presentation and will account for non-lease and lease components in a contract as a single lease component for certain asset classes. We are finalizing our evaluation and we estimate the impact on our consolidated balance sheet from the recognition of ROU asset and lease liability will be material. However, the impact to our consolidated statements of comprehensive income and consolidated statements of cash flows will not be material. In January 2016, the FASB issued Accounting Standards Update 2016-01, Financial Instruments–Overall: Recognition and Measurement of Financial Assets and Financial Liabilities In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers Since the modified retrospective method does not result in recasting of the prior year financial statements, ASC 606 requires us to provide additional disclosures for the amount by which each financial statement line item was affected by adoption of the standard, with an explanation of the reasons for significant changes. As a result of the adoption of ASC 606, our deferred product revenues and deferred product costs for the fleet management and auto vehicle finance verticals increased as balances are now amortized over the estimated average in-service lives of these devices. Deferred income tax assets and accumulated deficit increased as a result of the changes made to our deferred product revenues and deferred product costs. The cumulative effect of the changes made to our consolidated balance sheet for the adoption of ASC 606 were as follows (in thousands): Balance at February 28, 2018 ASC 606 Adjustments Balance at March 1, 2018 Assets Prepaid expenses and other current assets (1) $ 12,000 1,891 $ 13,891 Deferred income tax assets 31,581 532 32,113 Other assets (1) 18,829 3,145 21,974 Liabilities and Stockholders' Equity Deferred revenue $ 17,757 2,156 19,913 Other non-current liabilities 24,249 5,007 29,256 Stockholders' equity Accumulated deficit $ (19,459 ) (1,595 ) (21,054 ) (1) Deferred product costs included in Prepaid expenses and other current assets Other assets In accordance with the requirements of ASC 606, the disclosure of the impact of adoption on our consolidated balance sheet as of the fiscal year ended February 28, 2019 is as follows: As of February 28, 2019 As reported ASC 606 Adjustments Without ASC 606 Adoption Assets Prepaid expenses and other current assets (1) $ 19,373 (1,473 ) $ 17,900 Deferred income tax assets 22,626 (532 ) 22,094 Other assets (1) 22,510 (3,319 ) 19,191 Liabilities and Stockholders' Equity Deferred revenue (2) $ 24,264 (1,945 ) 22,319 Other non-current liabilities (2) 38,476 (5,353 ) 33,123 Stockholders' equity: Accumulated deficit $ (2,227 ) 1,689 (538 ) (1) Deferred product costs included in Prepaid expenses and other current assets Other assets (2) The balances as of February 28, 2019 also included deferred revenue of TRACKER, which was acquired on February 25, 2019 (see Note 2). The impact of adopting ASC 606 on our consolidated statements of comprehensive income (loss) for the fiscal year ended February 28, 2019 was immaterial. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Feb. 28, 2019 | |
Business Combinations [Abstract] | |
ACQUISITIONS | NOTE 2 – ACQUISITIONS Tracker Network (UK) Limited Effective February 25, 2019, we acquired Tracker Network (UK) Limited, a LoJack licensee, for a total purchase price of £10.0 million, or approximately $13.0 million, which was funded from our cash on hand. As a result of the acquisition, TRACKER became a wholly-owned subsidiary and is consolidated with our financial statements beginning February 25, 2019 as a component of our Software and Subscription Services reportable segment. The following is a preliminary purchase price allocation as of February 28, 2019 (in thousands): Purchase price $ 13,097 Less cash acquired, net of debt assumed (66 ) Net cash paid 13,031 Less provisional amount of working capital claim against escrowed consideration (840 ) Net consideration 12,191 Fair value of net assets and liabilities assumed: Current assets other than cash $ 3,549 Property and equipment 1,835 Customer relationships 2,354 Trade name 2,354 Developed technology 1,830 Other non-current assets 104 Current liabilities (3,030 ) Deferred revenue, current (1,976 ) Deferred revenue, non-current (1,186 ) Deferred tax liability, non-current (963 ) Other non-current liabilities (201 ) Total fair value of net assets acquired 4,670 Goodwill $ 7,521 We paid a premium (i.e., goodwill) over the fair value of the net tangible and identified intangible assets acquired, as we believe TRACKER’s highly recognizable brand and extensive law enforcement relationships across the United Kingdom will help us to drive our European expansion by leveraging our complete portfolio of telematics devices, cloud and software services to develop advanced connected car solutions targeting auto dealers, OEMs, insurance providers and other enterprise customers. This acquisition enables us to integrate our European operations around advanced SVR and telematics solutions to support key enterprise customer opportunities on a pan-European basis. The goodwill arising from the acquisition is not deductible for income tax purposes. As of February 28, 2019, we incurred approximately $0.9 million of acquisition-related costs, primarily legal expenses, which were recorded as part of our general and administrative expenses. TRACKER’s results of operations for the period between February 25 to 28, 2019 were not material. Pro forma financial statements for fiscal 2019 are not disclosed as the results are not material to our consolidated financial statements. Car Track On March 19, 2019, we acquired Car Track, S.A. de C.V., the exclusive licensee of LoJack technology for the Mexican market. Car Track will leverage our telematics and software-as-a-service solutions to expand product offering to its substantial subscriber base as well as serve auto dealers and OEMs, insurance providers and leasing companies throughout Mexico. The agreement is to purchase the 87.5% of the Car Track shares not currently owned by CalAmp for a purchase price of approximately $13.0 million. The initial 12.5% equity interest in Car Track with a carrying value of $1,700,000 as of February 28, 2019 was owned by LoJack Corporation prior to its acquisition by CalAmp in March 2016. Car Track will be consolidated with our financial statements effective March 19, 2019 as a component of our Software and Subscription Services reportable segment. Given the short period between the acquisition effective date and the Form 10-K filing date, we were not able to complete the initial accounting as of the report filing date. Pro forma financial statements for fiscal 2019 are not disclosed as the results are not material to our consolidated financial statements. Synovia In April 2019, we acquired Synovia Solutions (“Synovia”), a North American market leader in fleet safety and management for K-12 school bus and state and local government fleets, for a total purchase price of $50 million. Combined with the recent acquisitions of TRACKER and Car Track, the Synovia acquisition expands our fleet management and vehicle safety services portfolio. This acquisition also accelerates our transformation to high-value subscription-based services. Synovia will be consolidated with our financial statements effective April 12, 2019 as a component of our Software and Subscription Services reportable segment. Given the short period between the acquisition effective date and the Form 10-K filing date, we were not able to complete the initial accounting or prepare pro forma information for the business combination as of the report filing date. |
CONCENTRATION OF CUSTOMERS AND
CONCENTRATION OF CUSTOMERS AND SUPPLIERS | 12 Months Ended |
Feb. 28, 2019 | |
Risks And Uncertainties [Abstract] | |
CONCENTRATION OF CUSTOMERS AND SUPPLIERS | NOTE 3 – CONCENTRATION OF CUSTOMERS AND SUPPLIERS Significant Customers We sell telematics products to large global enterprises in the industrial equipment, telecommunications and automotive market verticals. Some of these customers accounted for more than 10% of our revenue or accounts receivable as follows: Year Ended February 28, 2019 2018 2017 Net sales: Customer A 15 % 12 % 8 % As of February 28, 2019 2018 2017 Accounts receivable: Customer A 14 % 15 % 12 % Customer B 3 % 13 % 5 % Customer B represents customers that are affiliated under common control. Significant Suppliers We purchase a significant amount of our inventory from certain manufacturers or suppliers including components, assemblies and electronic manufacturing parts. The inventory is purchased under standard supply agreements that outline the terms of the product delivery. The title and risk of loss of the product generally pass to us upon shipment from the manufacturers’ plant or warehouse. Some of these manufacturers accounted for more than 10% of our purchases and accounts payable as follows: Year Ended February 28, 2019 2018 2017 Inventory purchases: Supplier A 31 % 33 % 34 % Supplier B 20 % 16 % 14 % Supplier C 6 % 9 % 11 % As of February 28, 2019 2018 2017 Accounts Payable: Supplier A 30 % 40 % 33 % Supplier B 18 % 16 % 18 % We are currently reliant upon these suppliers for products. Although we believe that we can obtain products from other sources, the loss of a significant supplier could have a material impact on our financial condition and results of operations as the products that are being purchased may not be available on the same terms from another supplier. |
CASH, CASH EQUIVALENTS AND INVE
CASH, CASH EQUIVALENTS AND INVESTMENTS | 12 Months Ended |
Feb. 28, 2019 | |
Cash And Cash Equivalents [Abstract] | |
CASH, CASH EQUIVALENTS AND INVESTMENTS | NOTE 4 – CASH, CASH EQUIVALENTS AND INVESTMENTS The following tables summarize our financial instrument assets (in thousands): As of February 28, 2019 Balance Sheet Classification of Fair Value Unrealized Cash and Short-Term Gains Fair Cash Marketable Other Cost (Losses) Value Equivalents Securities Assets Cash $ 26,084 $ - $ 26,084 $ 26,084 $ - $ - Level 1: Money market funds 154,428 - 154,428 154,428 - - Mutual funds (1) 6,023 390 6,413 - - 6,413 International equities 296 (73 ) 223 - - 223 Level 2: Repurchase agreements 72,000 - 72,000 72,000 - - Corporate bonds 21,502 (2 ) 21,500 3,988 17,512 - Total $ 280,333 $ 315 $ 280,648 $ 256,500 $ 17,512 $ 6,636 As of February 28, 2018 Balance Sheet Classification of Fair Value Unrealized Cash and Short-Term Gains Fair Cash Marketable Other Cost (Losses) Value Equivalents Securities Assets Cash $ 51,529 $ - $ 51,529 $ 51,529 $ - $ - Level 1: Money market funds 9,034 - 9,034 9,034 - - Mutual funds (1) 4,920 721 5,641 - - 5,641 International equities 2,175 643 2,818 - 2,509 309 Level 2: Repurchase agreements 57,500 - 57,500 57,500 - - Corporate bonds 35,444 (13 ) 35,431 14,540 20,891 - Total $ 160,602 $ 1,351 $ 161,953 $ 132,603 $ 23,400 $ 5,950 (1) Amounts represent various equities, bond and money market mutual funds held in a “Rabbi Trust” and are restricted for payment obligations to non-qualified deferred compensation plan participants. See Note 9 for discussion of deferred compensation plan. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Feb. 28, 2019 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | NOTE 5 – ACCOUNTS RECEIVABLE Accounts receivable consist of the following (in thousands): February 28, 2019 2018 Accounts receivable $ 79,835 $ 72,766 Allowance for doubtful accounts (1,756 ) (1,186 ) $ 78,079 $ 71,580 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Feb. 28, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 6 – INVENTORIES Inventories consist of the following (in thousands): February 28, 2019 2018 Raw materials $ 14,141 $ 18,629 Work in process 72 567 Finished goods 17,820 17,106 $ 32,033 $ 36,302 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Feb. 28, 2019 | |
Property Plant And Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 7 – PROPERTY AND EQUIPMENT Property and equipment consist of the following (in thousands): February 28, 2019 2018 Leasehold improvements $ 3,522 $ 3,157 LoJack system components and law enforcement tracking units 20,326 20,558 Plant equipment and tooling 13,078 16,842 Office equipment, computers and furniture 11,553 14,206 Software 31,349 31,427 79,828 86,190 Less accumulated depreciation and amortization (58,641 ) (69,585 ) 21,187 16,605 Fixed assets not yet in service 5,836 4,657 $ 27,023 $ 21,262 Depreciation expense was $8.6 million, $8.0 million, and $8.4 million in fiscal years ended February 28, 2019, 2018 and 2017, respectively. Fixed assets not yet in service consist primarily of capitalized internal-use software and certain tooling and other equipment that have not been placed into service. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Feb. 28, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | NOTE 8 – GOODWILL AND OTHER INTANGIBLE ASSETS Changes in goodwill are as follows (in thousands): Year Ended February 28, 2019 2018 Balance at beginning of period $ 72,980 $ 72,980 Acquisitions (Note 2) 7,521 - Other (1) 304 - Balance at end of period $ 80,805 $ 72,980 (1) Amounts represent certain immaterial adjustments related to the LoJack acquisition. Other intangible assets are comprised as follows (in thousands): Gross Accumulated Amortization Net Useful Feb. 28, Other Feb. 28, Feb. 28, Feb. 28, Feb. 28, Feb. 28, Life 2018 Additions (1) 2019 2018 Expense 2019 2018 2019 Developed technology 2-7 years $ 22,280 1,830 (507 ) $ 23,603 $ 14,288 3,965 $ 18,253 $ 7,992 $ 5,350 Tradenames 10 years 37,729 2,362 40,091 9,087 3,557 12,644 28,642 27,447 Customer lists 4-7 years 22,950 2,354 25,304 19,623 1,684 21,307 3,327 3,997 Dealer and customer relationships 7-12 years 16,850 16,850 4,714 2,194 6,908 12,136 9,942 Patents 5 years 483 106 589 124 36 160 359 429 $ 100,292 $ 6,652 $ (507 ) $ 106,437 $ 47,836 $ 11,436 $ 59,272 $ 52,456 $ 47,165 (1) Amounts represent certain immaterial adjustments related to the LoJack acquisition. Intangible assets with finite lives are amortized on a straight-line basis over the expected period to be benefited by future cash flows. We monitor and assess these assets for impairment on a periodic basis. Our assessment includes various new product lines and services, which leverage the existing intangible assets as well as consideration of historical and projected revenues and cash flows. As of February 28, 2019, we determined that there was no impairment of intangible assets. Amortization expense of intangible assets was $11.4 million, $15.0 million and $15.1 million in fiscal years ended February 28, 2019, 2018 and 2017, respectively. Estimated future amortization expense as of February 28, 2019 is as follows (in thousands): 2020 $ 10,315 2021 8,492 2022 6,859 2023 6,638 2024 4,747 Thereafter 10,114 $ 47,165 |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Feb. 28, 2019 | |
Other Assets Noncurrent Disclosure [Abstract] | |
OTHER ASSETS | NOTE 9 – OTHER ASSETS Other assets consist of the following (in thousands): February 28, 2019 2018 Deferred compensation plan assets $ 6,413 $ 5,641 Investment in international licensees 2,263 2,349 Equity investment in and loan to ThinxNet GmbH 2,650 2,674 Equity investment in and loan to Smart Driver Club - 3,814 Deferred product cost 10,094 3,523 Other 1,090 828 $ 22,510 $ 18,829 We have a non-qualified deferred compensation plan in which certain members of management and all non-employee directors are eligible to participate. Participants may defer a portion of their compensation until retirement or another date specified by them in accordance with the plan. We are funding the plan obligations through cash deposits to a Rabbi Trust that are invested in various equity, bond and money market mutual funds in generally the same proportion as investment elections made by the participants. The deferred compensation plan liability is included in Other Non-Current Liabilities in the accompanying consolidated balance sheets. Our investment in international licensees at February 28, 2019 consists principally of a 12.5% equity interest in a Mexican licensee of $1.7 million, which became a wholly-owned subsidiary as of March 19, 2019 (see Note 2), as well as other smaller interests in Benelux and French licensees. Generally, the investments in international licensees are accounted for using the cost method of accounting and carried at cost as we do not exercise significant influence over these investees. We have received dividends from our investment in the Mexican licensee in the amount of $0.3 million, $0.3 million and $0.2 million for fiscal years ended February 28, 2019, 2018 and 2017, respectively. In September 2015, we invested £1,400,000 or approximately $2.2 million for a 49% minority ownership interest in Smart Driver Club Limited (“Smart Driver Club”), a technology and insurance startup company located in the United Kingdom. This investment has been accounted for under the equity method since we have significant influence over the investee. As of February 28, 2019, we had made loans aggregating £5,700,000 or approximately $7.6 million to Smart Driver Club bearing interest at an annual interest rate of 8%, with all principal and all unpaid interest due in 2021. Our equity in the net loss of Smart Driver Club amounted to $1.8 million, $1.4 million and $1.3 million in fiscal years ended February 28, 2019, 2018 and 2017, respectively. As of February 28, 2019, we determined that this equity method investment was subject to other than temporary impairment. This decision was dictated by the continuing operating losses and deteriorating liquidity position of Smart Driver Club. Accordingly, we recorded an impairment charge of $5.0 million in the impairment loss and equity in net loss within our consolidated statement of comprehensive income (loss). Smart Driver Club drew an additional £400,000 of debt on March 26, 2019 under a fourth amendment to the original agreement dated March 14, 2019. Effective August 24, 2017, we acquired an ownership interest valued at $1.4 million in ThinxNet GmbH, a company headquartered in Munich, Germany (“ThinxNet”). ThinxNet is an early stage company focused on commercializing cloud-based mobile device and applications in the automotive sector throughout Europe. This represents a cost basis investment as we cannot exercise significant influence over the investee. Contemporaneously, we executed an unsecured convertible note receivable for $1.27 million with an interest rate of 6%, which has a fixed term of 12 months, after which the loan can be converted into equity in ThinxNet or a loan due on demand at our option. The equity investment and note receivable were consideration we received in exchange for our outstanding accounts receivable from ThinxNet. No gain or loss was recorded on this exchange. The assets received in this exchange are included in Other Assets in the consolidated balance sheet as of February 28, 2019 and 2018. In August 2018, ThinxNet commenced a subsequent financing transaction to raise additional funds for working capital purposes. In connection with this transaction, we converted approximately $300,000 of outstanding accounts receivable due from ThinxNet into additional ownership interest in an in-kind exchange of assets. Based on the fair value of ThinxNet at the time of conversion, we revalued the initial ownership interest and recorded an impairment charge of $326,000, which is netted within Investment Income in our consolidated statement of comprehensive income (loss). Effective March 2019, we notified ThinxNet that we expect the outstanding loan to be repaid in June 2019. |
FINANCING ARRANGEMENTS
FINANCING ARRANGEMENTS | 12 Months Ended |
Feb. 28, 2019 | |
Debt Disclosure [Abstract] | |
FINANCING ARRANGEMENTS | NOTE 10 – FINANCING ARRANGEMENTS Revolving Credit Facility On March 30, 2018, we entered into a revolving credit facility with J.P. Morgan Chase Bank that provides for borrowings of up to $50 million. This revolving credit facility expires on March 30, 2020. Borrowings under this revolving credit facility bear interest at either a Prime or LIBOR-based variable rate as selected by us on a periodic basis. There were no borrowings outstanding under this revolving credit facility at February 28, 2019. The revolving credit facility contains certain negative and affirmative covenants including financial covenants that require us to maintain a minimum level of earnings before interest, income taxes, depreciation, amortization and other non-cash charges (EBITDA) to interest ratio and a minimum senior indebtedness ratio as well as a total indebtedness coverage ratio, both measured on a quarterly basis. Convertible Senior Unsecured Notes We have two outstanding convertible senior unsecured notes – a $122.5 million aggregate principal amount of convertible senior unsecured notes due 2020 (“2020 Convertible Notes”) and a $230.0 million aggregate principal amount of convertible senior unsecured notes due 2025 (“2025 Convertible Notes”, and collectively with the 2020 Convertible Notes, the “Notes”). The Notes are carried at their principal face amount, less unamortized debt discount and issuance costs, and are not carried at fair value at each period end. Balances attributable to the Notes consist of the following (in thousands): February 28, 2019 2018 2020 Convertible Notes Principal $ 122,527 $ 172,500 Less: Unamortized debt discount (6,461 ) (16,143 ) Unamortized debt issuance costs (817 ) (2,058 ) Net carrying amount of the 2020 Convertible Notes 115,249 154,299 2025 Convertible Notes Principal 230,000 Less: Unamortized debt discount (64,565 ) Unamortized debt issuance costs (4,779 ) Net carrying amount of the 2025 Convertible Notes 160,656 Convertible senior unsecured notes, net $ 275,905 Fair value of 2020 Convertible Notes (Level 2 measurement) $ 118,680 Fair value of 2025 Convertible Notes (Level 2 measurement) $ 184,334 Accounting guidance requires that convertible debt that can be settled for cash be separated into the liability and equity component at issuance and each be assigned a value. The value assigned to the liability component is the estimated fair value, as of the issuance date, of a similar debt without the conversion feature. The different between the principal amount of the debt and the estimated fair value of the liability component, representing the value of the embedded conversion option assigned to the equity component, is recorded as a debt discount on the issuance date. The fair value of the liability component is generally determined using a discounted cash flow analysis, in which the projected interest and principal payments were discounted back to the issuance date at a market interest rate that represents a Level 3 fair value measurement. The debt discount is amortized to interest expense using the effective interest method with an effective interest rate equal to the aforementioned market interest rate over the term of the debt. The remaining gross proceeds net of the liability component represents the fair value of the embedded conversion feature that was recorded as an increase in additional paid-in capital within the stockholders’ equity section. The associated deferred tax effect was recorded as a reduction of additional paid-in capital. The amounts recorded in additional paid-in capital is not to be remeasured as long as the embedded conversion option continues to meet the conditions for equity classification. As of February 28, 2019, the Notes continue to meet the conditions for equity classification. Further, the issuance costs related to the debt are also allocated to the liability and equity components based on the relative fair values. Issuance costs attributable to the liability component were recorded as a direct deduction from the carrying value of the debt and are being amortized to expense over the term of the debt using the effective interest method. The issuance costs attributable to the equity component were recorded as a charge to the additional paid-in capital within stockholders’ equity. Lastly, the deferred tax effect related to the equity component of the issuance costs was also recorded to additional paid-in capital as such costs are deductible for tax purposes. The table below summarizes the liability and equity components of the Notes, the issuance costs and the applicable assumptions used for the calculation (in millions except initial conversion rate and per share amounts): 2020 Convertible Notes 2025 Convertible Notes Initial conversion rate (shares per $1,000 principal amount) 36.2398 32.5256 Initial conversion price per share $ 27.5940 $ 30.7450 Fair value of liability component upon issuance $ 138.9 $ 160.8 Discount Rate 6.20 % 7.56 % Fair value measurement level Level 3 Level 3 Fair value of embedded equity component upon issuance $ 33.6 $ 69.2 Deferred tax asset effect $ 16.0 $ 17.3 Total issuance cost $ 4.3 $ 7.3 Equity component $ 1.0 $ 2.2 Deferred tax asset effect $ 0.4 $ 0.5 2020 Convertible Notes In May 2015, we issued $172.5 million aggregate principal amount of the 2020 Convertible Notes. The 2020 Convertible Notes are senior unsecured obligations and bear interest at a rate of 1.625% per year payable in cash on May 15 and November 15 of each year. The 2020 Convertible Notes mature on May 15, 2020 unless converted earlier or repurchased in accordance with their terms. We may not redeem the 2020 Convertible Notes prior to their stated maturity date and they will be convertible into cash, shares of our common stock or a combination of cash and shares of common stock, at our election, based on an initial conversion rate and initial conversion price as noted above. Holders may convert their 2020 Convertible Notes at their option at any time prior to November 15, 2019 upon the occurrence of certain events in the future, as defined in the indenture agreement dated May 6, 2015 (the “2020 Indenture”). During the period from November 15, 2019 to May 13, 2020, holders may convert all or any portion of their 2020 Convertible Notes regardless of the foregoing conditions. Our intent is to settle the principal amount of the 2020 Convertible Notes in cash upon conversion. If the conversion value exceeds the principal amount, we would deliver shares of common stock in respect to the remainder of the conversion obligation in excess of the aggregate principal amount (the “conversion spread”). The shares associated with the conversion spread, if any, would be included in the denominator for the computation of diluted earnings per share, with such shares calculated using the average closing price of our common stock during each period. As of February 28, 2019, none of the conditions allowing holders of the 2020 Convertible Notes to convert have been met as our shares have been trading under the initial conversion price. The 2020 Indenture contains customary terms and conditions, including that upon certain events of default occurring and continuing, either the Trustee or the holders of at least 25% in aggregate principal amount of the then outstanding Notes, by notice to us and the Trustee, may declare 100% of the principal amount of, and accrued and unpaid interest, if any, on all the 2020 Convertible Notes then outstanding to be due and payable immediately. Such events of default include, without limitation, the default by us or any of our subsidiaries with respect to indebtedness for borrowed money in excess of $10 million and the entry of judgments for the payment of $10 million or more against us or any of our subsidiaries which are not paid, discharged or stayed within 60 days. If we undergo a fundamental change (as defined in the Indenture), holders of the 2020 Convertible Notes may require us to repurchase their Notes at a repurchase price of 100% of the principal amount of the 2020 Convertible Notes, plus any accrued and unpaid interest, if any, to but not including the fundamental change repurchase date. In addition, following certain corporate events that occur prior to maturity, we will increase the conversion rate for a holder who elects to convert our Notes in connection with such a corporate event in certain circumstances. In such event, an aggregate of up to 2.5 million additional shares of common stock could be issued upon conversions in connection with such corporate events, subject to adjustment in the same manner as the conversion rate. In May 2016, in connection with the 2020 Convertible Notes, we entered into note hedge transactions relating to million shares of common stock with certain counterparties. The note hedges represent call options from the counterparties with respect to $ million aggregate principal amount of the 2020 Convertible Notes. We paid $ million for the note hedges and, as a result, approximately $ million, net of tax, was recorded as a reduction to additional paid-in capital within stockholders’ equity. Separately, we entered into warrant transactions with the same counterparties, giving them the right to acquire the same number of shares of common stock that underlie the 2020 Convertible Notes at a strike price of $39.42 per share which represents a premium of 100% over the last reported sale price of our common stock of $19.71 on April 30, 2015, the date on which the 2020 Convertible Notes were priced. The warrants will be exercisable in equal installments for a period of 80 trading days beginning on August 15, 2020. We received a total amount of $16.0 million in cash proceeds from the sale and issuance of the warrants. On July 20, 2018, we entered into separate, privately negotiated purchase agreements to repurchase approximately $50 million in aggregate principal amount of our 2020 Convertible Notes for $53.8 million including accrued interest, by using a portion of the net proceeds from the 2025 Convertible Notes. The repurchase is accounted for as an extinguishment of debt, not a modification of debt. We allocated the repurchase price of $53.7 million between the fair value of the liability of $47.6 million and the equity component of $6.1 million. The fair value of the liability component was determined using a discounted cash flow analysis at a market interest rate for nonconvertible debt of 4.36% based on the remaining maturity of the 2020 Convertible Notes, which represented a Level 3 fair value measurement. The carrying value of the repurchased notes was $45.6 million, resulting in a loss on extinguishment of debt of $2.0 million. We also received proceeds of $3.1 million from the unwinding of the note hedge and warrants, which was recorded as additional paid-in capital. 2025 Convertible Notes On July 20, 2018, we issued $230.0 million aggregate principal amount of the 2025 Convertible Notes. These notes were issued under an indenture, dated July 20, 2018 (the “2025 Indenture”) between us and The Bank of New York Mellon Trust Company, N.A., as trustee. The proceeds from the sale of the 2025 Convertible Notes were $222.7 million, after deducting issuance costs of $7.3 million. We used approximately $90.0 million of the net proceeds from this offering to (i) pay the cost of the capped call transactions of $21.2 million; (ii) repurchase shares of our common stock of approximately $15.0 million; and (iii) repurchase in privately negotiated transactions approximately $50 million principal of our outstanding 2020 Convertible Notes for approximately $53.8 million including accrued interest. We expect to use the remaining proceeds for working capital or other general corporate purposes, which may include but not limited to, additional repurchases of the 2020 Convertible Notes, repurchases for shares of our common stock and acquisitions or other strategic transactions. The 2025 Indenture contains customary terms and conditions, including that upon certain events of default occurring and continuing, either the Trustee, by notice to us, or the holders of at least 25% in aggregate principal amount of the then outstanding Notes, by notice to us and the Trustee, may declare the principal amount of, and all accrued and unpaid interest on, all of the 2025 Convertible Notes then outstanding to become due and payable immediately. Such events of default include, without limitation, the default by us or any of our subsidiaries with respect to indebtedness for borrowed money in excess of $10 million and the entry of judgments for the payment of $15 million or more against us or any of our subsidiaries, which are not paid, discharged or stayed within 60 days. The 2025 Convertible Notes bear interest at 2.00% per year payable semiannually in arrears in cash on February 1 and August 1 of each year, beginning on February 1, 2019. The 2025 Convertible Notes will mature on August 1, 2025, unless earlier converted, redeemed or repurchased by us in accordance with their terms. We may redeem the Notes at our option at any time on or after August 6, 2022 at a cash redemption price equal to the principal amount plus accrued interest, but only if the last reported sale price per share of our stock exceeds 130% of the conversion price on (i) each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the trading day immediately before the date we send the related redemption notice; and (ii) the trading day immediately before the date we send such notice. The 2025 Convertible Notes rank senior in right of payment to any existing or future indebtedness which is subordinated by its terms, ranks equally in right of payment to any indebtedness that is not so subordinated, is structurally subordinated to all indebtedness and liabilities of our subsidiaries and is effectively junior to our secured indebtedness to the extent of the value of the assets securing such indebtedness. The 2025 Convertible Notes are convertible into cash, shares of our common stock or a combination of both, at our election, based on an initial conversion rate and initial conversion price as noted above. Holders may convert their 2025 Convertible Notes at their option upon the occurrence of certain events, as defined in the 2025 Indenture. Upon the occurrence of a “make-whole fundamental change” (as defined in the 2025 Indenture), we will in certain circumstances increase the conversion rate for a specific period of time. Additionally, upon the occurrence of a “fundamental change” (as defined in the 2025 Indenture), holders of the notes may require us to repurchase their notes at a cash repurchase price equal to the principal amount of the notes to be repurchased, plus any accrued and unpaid interest. As of February 28, 2019, none of the conditions allowing the holders of the 2025 Convertible Notes to convert have been met. In July 2018, in connection with the 2025 Convertible Notes, we entered into capped call transactions with certain option counterparties who were initial purchasers of the 2025 Convertible Notes. The capped call transactions are expected to reduce the potential dilution of earnings per share upon conversion of the 2025 Convertible Notes. Under the capped call transactions, we purchased options that in the aggregate relate to the total number shares of 7.48 million shares of common stock underlying the notes, with a strike price equal to the conversion price of the notes and with a cap price equal to $41.3875. We paid $21.2 million for the note hedges and as a result, approximately $15.9 million, net of tax, was recorded as a reduction to additional paid-in capital within stockholders’ equity. We elected to integrate the note hedges and capped call with the Notes for federal income tax purposes pursuant to applicable U.S. Treasury Regulations. Accordingly, the cost of the note hedges will be deductible for income tax purposes as original issue discount interest over the term of Notes. |
RESTRUCTURING CHARGES
RESTRUCTURING CHARGES | 12 Months Ended |
Feb. 28, 2019 | |
Restructuring And Related Activities [Abstract] | |
RESTRUCTURING CHARGES | NOTE 11 – RESTRUCTURING CHARGES Beginning in the first quarter of fiscal 2019, we commenced a plan (the “Plan”) to capture certain synergies and cost savings related to streamlining our global operations and sales organization, as well as rationalize certain leased properties that are not fully occupied. Our Plan is aligned with our strategy to integrate the global sales organization and further outsource manufacturing functions in order to drive operational efficiency, increase supplier geographic diversity, and reduce operating expenses. On February 28, 2019, we gave notice to all employees located in our leased facility in Oxnard, California, which stated that effective August 31, 2019, we will cease operations and employees will experience layoffs. With respect to the closing of the Oxnard facility, we expect to incur a pre-tax restructuring charge of approximately $1 million, consisting primarily of cash severance and other benefits expected to be paid to terminated employees. For fiscal year ended February 28, 2019, total restructuring charges were $8.0 million, comprised of $4.3 million in severance and employee related costs, and $3.7 million for vacant office and manufacturing facility space. Restructuring charges related to vacant office and manufacturing facility space was due primarily to the vacancy in Canton, Massachusetts of $3.3 million. The anticipated rent payments for the vacant portion of leased facilities will be made through December 2025. There is no guarantee that the termination and cease use charges will not exceed the estimates or that the impact of future net costs reduction will be achieved. The following table summarizes the activity resulting from the implementation of the restructuring plan within other current and non-current liabilities: Personnel Facilities Total Restructuring liabilities as of February 28, 2018 $ — $ — $ — Charges 4,275 3,740 8,015 (Payments) (1,496 ) (763 ) (2,259 ) Restructuring liabilities as of February 28, 2019 $ 2,779 $ 2,977 $ 5,756 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Feb. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 12 – INCOME TAXES Our income (loss) before income taxes and equity in net loss of affiliate consists of the following (in thousands): Year Ended February 28, 2019 2018 2017 Domestic $ 21,367 $ 13,898 $ (11,910 ) Foreign 2,488 14,811 3,727 Total income (loss) before income taxes and equity in net loss of affiliate $ 23,855 $ 28,709 $ (8,183 ) The components of income tax benefit (provision) consists of the following (in thousands): Year Ended February 28, 2019 2018 2017 Current: Federal $ 404 $ (412 ) $ - State (256 ) (694 ) (137 ) Foreign (62 ) (2,204 ) (1,035 ) Total current 86 (3,310 ) (1,172 ) Deferred: Federal (2,015 ) (6,156 ) 1,712 State (1,183 ) (1,458 ) 539 Foreign 4,442 243 484 Total deferred 1,244 (7,371 ) 2,735 Income tax benefit (provision) $ 1,330 $ (10,681 ) $ 1,563 The income tax benefit (provision) differs from the amount obtained by applying the statutory rate as follows (in thousands): Year Ended February 28, 2019 2018 2017 Income tax benefit (provision) at U.S. statutory federal rate $ (5,010 ) $ (9,400 ) $ 2,864 State income tax provision, net of federal income tax effect (1,300 ) (574 ) 182 Foreign taxes (31 ) 2,923 68 Impact of tax reform - (8,955 ) - Valuation allowance reductions (increases) 5,915 3,046 (1,391 ) Research and development tax credits 1,658 1,034 806 Tax benefits on vested and exercised equity awards 758 937 - Other, net (660 ) 308 (966 ) Total income tax benefit (provision) $ 1,330 $ (10,681 ) $ 1,563 The components of net deferred income tax assets for income tax purposes are as follows (in thousands): February 28, 2019 2018 Net operating loss carryforwards $ 19,269 $ 22,013 Depreciation, amortization and impairments (11,945 ) (11,112 ) Research and development credits 19,189 17,432 Stock-based compensation 2,783 2,376 Other tax credits 1,018 2,015 Inventory reserve 624 292 Warranty reserve 313 429 Payroll and employee benefit accruals 2,220 1,941 Allowance for doubtful accounts 454 354 Other accrued liabilities 6,208 8,975 Convertible debt (10,822 ) (194 ) Other, net 3,281 3,904 Gross deferred tax assets 32,592 48,425 Valuation allowance (10,929 ) (16,844 ) Net deferred tax assets $ 21,663 $ 31,581 Reported as: Deferred tax assets $ 22,626 $ 31,581 Deferred tax liabilities (963 ) - Net deferred tax assets $ 21,663 $ 31,581 The net deferred tax assets as of February 28, 2018 in the above table include the deferred tax assets of our Italian and Canadian subsidiaries amounting to $7.4 million and $7.6 million, respectively, which were disclosed narratively in the fiscal 2018 Form 10-K. The deferred tax assets primarily relate to net operating losses (NOL’s) and research and development expenditure pool carryforwards. We had provided a 100% valuation allowance against these deferred tax assets at February 28, 2018, as it was more likely than not that the deferred tax assets would not be realized. As of February 28, 2019 and 2018, we maintained a valuation allowance with respect to certain of our deferred tax assets relating primarily to NOL’s in certain non-U.S. jurisdictions and certain state tax credits that we believe are not likely to be realized. During fiscal 2019, we decreased the valuation allowance against our deferred tax assets by approximately $5.9 million, as it is more likely than not that these deferred tax assets would be realized based upon the assessment of positive and negative evidence. This reduction in our valuation allowance is primarily attributable to a release of valuation allowance against foreign deferred tax assets, partially offset by an increase in valuation allowances for state tax credits. At February 28, 2019, we had net operating loss carryforwards of approximately $30.1 million, $60.8 million and $44.7 million for federal, state and foreign purposes, respectively, expiring at various dates through fiscal 2039. Approximately $18.3 million of foreign net operating loss carryforwards do not expire. The federal net operating loss carryforwards are subject to various limitations under Section 382 of the Internal Revenue Code. If substantial changes in our ownership were to occur, there may be certain annual limitations on the amount of the NOL carryforwards that can be utilized. As of February 28, 2019, we had R&D tax credit carryforwards of $9.1 million and $8.9 million for federal and state income tax purposes, respectively. The federal R&D tax credits expire at various dates through 2039. A substantial portion of the state R&D tax credits have no expiration date. We adopted the updated guidance on stock based compensation and we have tax deductions on exercised stock options and vested restricted stock awards that exceed stock compensation expense amounts recognized for financial reporting purposes. The gross excess tax deductions were $2.9 million, $2.6 and $0 in fiscal years 2019, 2018 and 2017, respectively. Under the new guidance, all excess tax benefits and tax deficiencies are recognized in the income statement as they occur. We follow ASC Topic 740, “Income Taxes,” which clarifies the accounting for income taxes by prescribing a minimum recognition threshold that a tax position is required to meet before being recognized in the financial statements. Management determined based on our evaluation of our income tax positions that we have uncertain tax benefit of $3.2 million, $1.0 million and $1.0 million on at February 28, 2019, 2018 and 2017, respectively, for which we have not yet recognized an income tax benefit for financial reporting purposes. At February 28, 2019, we increased the uncertain tax benefits related to certain foreign net operating loss carryforwards. Such deferred tax assets were previously offset by a valuation allowance so that the increase in the unrecognized tax benefit coupled with the reduction of the valuation allowance on such net operating losses did not result in an income tax expense during the current fiscal year. If total uncertain tax benefits were realized in a future period, it would result in a tax benefit of $3.2 million. As of February 28, 2019, our liabilities for uncertain tax benefits were netted against our deferred tax assets on our consolidated balance sheet. It is reasonably possible the amount of unrecognized tax benefits could be reduced within the next 12 months by at least $0.6 million. We recognize interest and/or penalties related to uncertain tax positions in income tax expense. No amounts of interest and/or penalties have been accrued as of February 28, 2019. Year Ended February 28, 2019 2018 2017 Gross amounts of unrecognized tax benefits at beginning of the period $ 1,029 $ 1,029 $ 1,029 Increases related to prior period tax positions 2,241 - - Decreases related to prior period tax positions (69 ) - - Increases related to current period tax positions - - - Settlements - - - Gross amounts of unrecognized tax benefits at end of the period $ 3,201 $ 1,029 $ 1,029 We file income tax returns in the U.S. federal jurisdiction, various U.S. states and Puerto Rico, Canada, Ireland, Italy, United Kingdom, the Netherlands, Brazil and New Zealand. Certain income tax returns for the years 2014 through 2017 remain open to examination by U.S. federal and state tax authorities. To the extent allowed by law, the tax authorities may have the right to examine prior periods in which net operating losses or tax credits were generated and carried forward, and to make adjustments up to the net operating loss or tax credit carryforward amount. Our tax returns in the foreign jurisdictions remain open for examination for varying years by jurisdiction with certain jurisdictions being open for examination from 2013 to the present. The Tax Cuts and Jobs Act The Tax Cuts and Jobs Act (“The Act”) was enacted on December 22, 2017. In addition to other items, the Act (i) reduces the U.S. federal corporate tax rate from 35% to 21%, (ii) requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred, and (iii) creates new taxes on certain foreign-sourced earnings. During fiscal year ended February 28, 2018, we recognized a reasonable estimate of the effects on our existing deferred tax balances in the amount of $6.6 million, which was included as a component of our income tax expense. The charge was principally related to the impact of remeasuring certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future. The one-time transition tax is based on our total E&P of foreign CFCs that were previously excluded from U.S. income taxes. During the fiscal year ended February 28, 2018, we recognized a reasonable estimate of our one-time transition tax liability resulting in an increase in income tax expense of $2.4 million. The transition tax is based in part on the amount of those earnings held in cash and other specified assets. A significant portion of the transition tax liability is offset by the utilization of foreign tax credits, which were previously subject to a full valuation allowance. Accordingly, the net income tax expense associated with the transition tax was zero. We completed our accounting for the income tax effects of the Tax Act in 2018, and no material adjustments were required to the provisional amounts recorded for our existing deferred tax balances and the one-time transition tax. We previously considered the earnings in our non-U.S. subsidiaries to be indefinitely reinvested and accordingly, recorded no deferred income taxes. We have reevaluated our historic assertion and no longer consider the earnings of our Irish subsidiary to be indefinitely reinvested. As a result of our change in assertion, we recorded a state income tax expense of approximately $0.3 million related to outside basis differences that are no longer permanently reinvested in fiscal 2019. We continue to assert our intention to indefinitely reinvest foreign earnings in all remaining foreign subsidiaries . |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Feb. 28, 2019 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 13 – STOCKHOLDERS' EQUITY Stock Repurchase We repurchased our common stock under share repurchase programs approved by our Board of Directors. The following table contains information with respect to these repurchases: Fiscal Year Total Number of Shares Purchased Average Price Paid per Share Total Purchased Dollar Value that may be Purchased Under the Plans Fiscal 2017 1,760,563 $ 14.20 $ 25,000,000 $ - Fiscal 2018 - $ - $ - $ - Fiscal 2019 2,496,422 $ 19.63 $ 49,000,000 $ 10,000,000 Employee Stock Purchase Plan On June 7, 2018, our Board of Directors adopted the CalAmp Corp. 2018 Employee Stock Purchase Plan (the “ESPP”), which was approved by our stockholders on July 25, 2018. The ESPP provides for the issuance of 1,750,000 shares of our common stock. The first enrollment under the ESPP Plan commenced in February 2019. Stock-based compensation expense related to the ESPP Plan for the year ended February 28, 2019 was de minimis. Stock-Based Compensation Our Board of Directors adopted the 2004 Incentive Stock Plan (the Plan) effective July 30, 2004, which provides for the granting of qualified and nonqualified stock options, restricted stock, performance stock units (PSUs), restricted stock units (RSUs), phantom stock and bonus stock to employees and directors. The primary purpose of the Plan is to enhance our ability to attract, motivate, and retain the services of qualified employees, officers and directors. Any stock options under the Plan will have a term of not more than 10 years and the vesting of the awards will be at the discretion of the Compensation Committee of the Board of Directors but is not expected to exceed four years. We treat equity awards with multiple vesting tranches as a single award for expense attribution purposes and recognize compensation expense on a straight-line basis over the requisite service period of the entire award. As of February 28, 2019, there were 1,705,685 award units in the 2004 Plan that were available for grant. The following table summarizes our stock option activity (number of options and aggregate intrinsic value in thousands): Number of Options Weighted Average Exercise Price Weighted average remaining contractual life (years) Aggregate intrinsic value Outstanding at February 28, 2016 860 6.96 4.7 Granted 227 14.49 Exercised (125 ) 7.67 Forfeited or expired (7 ) 15.70 Outstanding at February 28, 2017 955 $ 8.60 5.5 Granted 165 19.31 Exercised (140 ) 2.36 Forfeited or expired - - Outstanding at February 28, 2018 980 $ 11.29 5.9 Granted 140 23.08 Exercised (66 ) 1.87 Forfeited or expired - - Outstanding at February 28, 2019 1,054 $ 13.44 5.8 $ 3,360 Exercisable at February 28, 2017 624 $ 5.03 5.5 $ 7,046 Exercisable at February 28, 2018 590 $ 7.54 4.1 $ 9,349 Exercisable at February 28, 2019 698 $ 10.22 4.4 $ 3,360 Year ended February 28, 2019 2018 2017 Weighted average grant date fair value of stock options granted during the year $ 11.94 $ 10.20 $ 6.69 We use the Black-Scholes-Merton option pricing model for valuation of stock option awards. Calculating the fair value of stock option awards requires the input of highly complex and subjective assumptions. Other reasonable assumptions could provide differing results. The fair value of stock options at the grant date was determined using the following assumptions: Year Ended February 28, Black-Scholes Valuation Assumptions 2019 2018 2017 Expected life (years) 2 - 6 6 6 Expected volatility 36% - 43% 46% 48% Risk-free interest rates 2.5% - 2.9% 2.0% 1.3% Expected dividend yield 0% 0% 0% For the years ended February 28, 2019, 2018 and 2017, the expected life of options was determined using historical experience of our stock option grants and forfeiture activities. The expected volatility is based on the historical volatility of our stock price. The risk-free interest rate is based on the implied yield currently available on U.S. Treasuries with terms which approximate the expected life of the stock options. Changes in our outstanding restricted stock shares, PSUs and RSUs at February 28, 2019, 2018 and 2017 were as follows (shares in thousands): Number of Restricted Shares, PSUs and RSUs Weighted Average Grant Date Fair Value Shares Retained to Cover Statutory Minimum Withholding Taxes Outstanding at February 28, 2016 953 16.66 Granted 766 14.63 Vested (382 ) 15.18 122 Forfeited (98 ) 15.64 Outstanding at February 28, 2017 1,239 $ 15.94 Granted 770 19.55 Vested (399 ) 15.92 133 Forfeited (176 ) 17.34 Outstanding at February 28, 2018 1,434 $ 17.72 Granted 787 22.05 Vested (478 ) 17.32 162 Forfeited (236 ) 19.59 Outstanding at February 28, 2019 1,507 $ 19.77 Stock-based compensation expense is included in the following captions of the consolidated statements of comprehensive income (loss) (in thousands): Year Ended February 28, 2019 2018 2017 Cost of revenues $ 723 $ 653 $ 374 Research and development 2,061 1,471 1,033 Selling and marketing 2,863 2,314 1,655 General and administrative 5,382 4,860 4,771 $ 11,029 $ 9,298 $ 7,833 As of February 28, 2019, there was $25.5 million of unrecognized stock-based compensation cost related to non-vested equity awards, which is expected to be recognized over a weighted-average remaining vesting period of 2.8 years. Tax Benefits from Exercise of Stock Options and Vesting of Restricted Stock and RSU Awards The aggregate fair value of stock options exercised and vested restricted stock and RSU awards as of the exercise date or vesting date was $8.6 million, $6.9 million and $6.3 million for fiscal years ended February 28, 2019, 2018 and 2017, respectively. In connection with these equity awards, the excess stock compensation tax deductions were $2.9 million, $2.6 and $0 million for fiscal years ended February 28, 2019, 2018 and 2017, respectively. |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 12 Months Ended |
Feb. 28, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | NOTE 14 – EARNINGS (LOSS) PER SHARE Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period plus the dilutive effect of outstanding stock options and restricted stock-based awards using the treasury stock method. The following table sets forth the computation of basic and diluted earnings (loss) per share (in thousands, except per share amounts): Year Ended February 28, 2019 2018 2017 Net income (loss) $ 18,398 $ 16,617 $ (7,904 ) Basic weighted average number of common shares outstanding 34,589 35,250 35,917 Effect of stock options and restricted stock units computed on treasury stock method 705 889 - Diluted weighted average number of common shares outstanding 35,294 36,139 35,917 Earnings (loss) per share: Basic $ 0.53 $ 0.47 $ (0.22 ) Diluted $ 0.52 $ 0.46 $ (0.22 ) All outstanding stock options and restricted stock-based awards in the amount of 1.0 million and 1.2 million, respectively, were excluded from the computation of diluted earnings per share for the fiscal year ended February 28, 2017 because the effect of inclusion would be antidilutive. Shares subject to anti-dilutive stock options and restricted stock-based awards of 1.9 million and 0.2 million for the fiscal years ended February 28, 2019 and 2018, respectively, were excluded from the calculations of diluted earnings per share for the years then ended. We have the option to pay cash, issue shares of common stock or any combination thereof for the aggregate amount due upon conversion of the Notes. It is our intent to settle the principal amount of the convertible senior notes with cash, and therefore, we use the treasury stock method for calculating any potential dilutive effect of the conversion option on diluted net income (loss) per share. From the time of the issuance of the Notes, the average market price of our common stock has been less than the initial conversion price of the Notes, and consequently no shares have been included in diluted earnings per share for the conversion value of the Notes. |
COMPREHENSIVE INCOME (LOSS)
COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Feb. 28, 2019 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
COMPREHENSIVE INCOME (LOSS) | NOTE 15 – COMPREHENSIVE INCOME (LOSS) The following table shows the changes in our accumulated other comprehensive income (loss) for the fiscal years ended February 28, 2019, 2018 and 2017 (in thousands): Cumulative Foreign Currency Translation Unrealized Gains/Losses on Marketable Securities Total Balances at February 28, 2016 $ (226 ) $ - $ (226 ) Other comprehensive loss, net of tax (280 ) (35 ) (315 ) Balances at February 28, 2017 (506 ) (35 ) (541 ) Other comprehensive income (loss), net of tax (122 ) 464 342 Balances at February 28, 2018 (628 ) 429 (199 ) Other comprehensive loss, net of tax (33 ) (429 ) (462 ) Balances at February 28, 2019 $ (661 ) $ - $ (661 ) |
EMPLOYEE RETIREMENT PLAN
EMPLOYEE RETIREMENT PLAN | 12 Months Ended |
Feb. 28, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
EMPLOYEE RETIREMENT PLAN | NOTE 16 – EMPLOYEE RETIREMENT PLAN We maintain a 401(k) defined-contribution plan allowing eligible U.S.-based employees to contribute up to an annual maximum amount as set periodically by the Internal Revenue Service. Our matching contributions to the plan are discretionary subject to the authorization of our Board of Directors. The current matching contribution to the plan is equal to 100% of the first 3% of participants’ compensation contribution plus 50% of the next 2% contributed by the participant. We recorded expense for the matching contributions of $2.1 million, $2.0 million and $1.3 million in fiscal years ended February 28, 2019, 2018 and 2017, respectively. |
OTHER FINANCIAL INFORMATION
OTHER FINANCIAL INFORMATION | 12 Months Ended |
Feb. 28, 2019 | |
Other Financial Information [Abstract] | |
OTHER FINANCIAL INFORMATION | NOTE 17 – OTHER FINANCIAL INFORMATION Supplemental Balance Sheet Information Other current liabilities consist of the following (in thousands): February 28, 2019 2018 Warranty reserves $ 1,398 $ 5,734 Litigation reserve (see Note 19) 1,500 17,559 Accrued restructuring costs 752 - Other 6,972 8,395 $ 10,622 $ 31,688 Other non-current liabilities consist of the following (in thousands): February 28, 2019 2018 Deferred compensation plan liability $ 6,409 $ 5,642 Deferred revenue 27,106 16,763 Accrued restructuring costs 2,175 - Deferred tax liability 963 - Deferred rent 365 200 Other 1,458 1,644 $ 38,476 $ 24,249 See Note 9 for information related to our non-qualified deferred compensation plan. Supplemental Income Statement Information Interest expense consists of the following (in thousands): Year Ended February 28, 2019 2018 2017 Interest expense on 2020 Convertible Notes: Stated interest at 1.625% per annum $ 2,308 $ 2,806 $ 2,803 Amortization of note discount 5,769 6,627 6,232 Amortization of debt issue costs 715 845 795 8,792 10,278 9,830 Interest expense on 2025 Convertible Notes: Stated interest at 2.00% per annum 2,811 - - Amortization of note discount 4,637 - - Amortization of debt issue costs 343 - - 7,791 - - Other interest expense 143 2 66 Total interest expense $ 16,726 $ 10,280 $ 9,896 Supplemental Cash Flow Information “Net cash provided by operating activities” in the consolidated statements of cash flows includes cash payments for interest and income taxes. The following is our supplemental schedule of cash payments for interest and income taxes and non-cash investing and financing activities (in thousands): Year Ended February 28, 2019 2018 2017 Cash payments for interest and income taxes: Interest expense paid $ 5,057 $ 2,844 $ 2,852 Income tax paid $ 964 $ 3,498 $ 2,259 Non-cash investing and financing activities: Accrued liability for capital expenditures $ 881 $ - $ - Equity investment in and loan to ThinxNet GmbH (see Note 9) $ 300 $ 2,674 $ - Valuation and Qualifying Accounts Following is our schedule of valuation and qualifying accounts for the last three years (in thousands): Balance at beginning of year Charged (credited) to costs and expenses Deductions Other Balance at end of year Allowance for doubtful accounts: Fiscal 2017 622 541 (201 ) - 962 Fiscal 2018 962 685 (461 ) - 1,186 Fiscal 2019 1,186 1,230 (660 ) 1,756 Warranty reserve: Fiscal 2017 (1) 1,892 1,305 (2,562 ) 5,883 6,518 Fiscal 2018 6,518 1,331 (2,115 ) - 5,734 Fiscal 2019 5,734 1,126 (5,462 ) 1,398 Deferred tax assets valuation allowance: Fiscal 2017 (1) 1,618 1,391 - 3,578 6,587 Fiscal 2018 (2) 6,587 - (4,835 ) 15,092 16,844 Fiscal 2019 16,844 799 (6,714 ) - 10,929 (1) Amounts under “Other” represent the reserves and valuation allowance assumed in acquisition of LoJack. The warranty reserve is included in the Other Current Liabilities in the consolidated balance sheets. (2) Amount under “Other” represents the valuation allowance previously netted against deferred tax assets of foreign net deferred tax assets not recorded on the balance sheet, which were disclosed narratively in the fiscal 2018 Form 10-K (see Note 12). Deferred tax assets and valuation allowances were grossed up by $15.1 million. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Feb. 28, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 18 – COMMITMENTS AND CONTINGENCIES Operating Leases We lease office space, tower infrastructure locations, vehicles, certain manufacturing equipment and office equipment under operating lease arrangements expiring through fiscal 2026. Where operating leases contain escalation clauses, rent abatements, and/or concessions, such as rent holidays and landlord or tenant incentives or allowances, we apply them in the determination of straight-line rent expense over the lease term. Certain operating leases require the payment of real estate taxes or other occupancy costs, which may be subject to escalation. 2020 $ 7,565 2021 6,386 2022 6,242 2023 6,199 2024 6,126 Thereafter 7,659 $ 40,177 Rent expense under operating leases was $9.7 million, $6.9 million and $7.0 million in fiscal years ended February 28, 2019, 2018 and 2017, respectively. Other Commitment and Contingencies See discussion of other commitments and contingencies in Note 19 on Legal Proceedings. |
LEGAL PROCEEDINGS
LEGAL PROCEEDINGS | 12 Months Ended |
Feb. 28, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
LEGAL PROCEEDINGS | NOTE 19 – LEGAL PROCEEDINGS Omega patent infringement claim As previously disclosed in our Form 10-Q for the third quarter ended November 30, 2018 that was filed with the U.S. Securities and Exchange Commission on December 20, 2018, on May 22, 2017, we filed motions with the court seeking judgment as a matter of law and for a new trial in response to the patent infringement law suit filed by Omega Patents, LLC (“Omega”) that was decided against us in 2016. The court denied our motions on November 14, 2017. We then appealed to the Court of Appeals for the Federal Circuit (the “Federal Circuit”). The appeal was fully briefed, and the court heard oral argument on January 9, 2019. On April 8, 2019, the Federal Circuit vacated the compensatory and enhanced damages and attorney’s fees awarded by the trial court to Omega. The Federal Circuit also set aside the jury’s verdict that our alleged infringement was willful, and remanded the case for a new trial. As a result, substantially all of the previously reserved legal provisions of $19.1 million as of November 30, 2018 was reversed as of our fiscal year-end. The reversal was recorded a reduction of general and administrative expenses in our consolidated statement of comprehensive income for the fiscal years ended February 28, 2019. We also initiated ex parte EVE battery claim On October 27, 2014, LoJack and LoJack Equipment Ireland DAC (“LJEI”), a wholly-owned subsidiary of LoJack, commenced arbitration proceedings against EVE Energy Co., Ltd. (“EVE”) by filing a notice of arbitration with a tribunal (the “Tribunal”) before the Hong Kong International Arbitration Centre (the “HKIAC”). LoJack and LJEI alleged that EVE breached representations and warranties made in supply agreements relating to the quality and performance of battery packs supplied by EVE. On June 2, 2017, we were notified that the Tribunal rendered a decision and awarded damages to us (the “Damage Award”) for EVE’s breach of contract. On June 9, 2017, we entered into a settlement agreement with EVE and its controlling shareholder EVE Holdings Limited to resolve the Damage Award by having EVE Holdings Limited, the parent company of EVE, make payments to us in the aggregate amount of $46.6 million, which amount is net of attorneys’ fees and insurance subrogation payment (the “Settlement”). As of February 28, 2019, we had received the entire Settlement, of which $18.3 million was received in fiscal 2019 and $28.3 million was received in fiscal 2018. The Settlement amounts were reported and disclosed as other non-operating income in our consolidated statement of comprehensive income for the fiscal years ended February 28, 2019 and 2018. Tracker South Africa claim On December 9, 2016, Tracker Connect (Pty) LTD (“Tracker”), an international licensee of LoJack located in South Africa, commenced arbitration proceedings against LoJack Ireland by filing a notice of arbitration with the International Centre for Dispute Resolution. The filing alleged breaches of the license agreement as well as misrepresentations and violation of Massachusetts General Laws chapter 93A. Tracker was seeking various relief, including monetary damages and recovery of attorneys’ fees. On March 3, 2017, LoJack Ireland filed its response to Tracker’s notice, denying their allegations and filing counterclaims against Tracker for material breaches of the parties’ license agreement and bad faith conduct. The arbitral tribunal was selected and the arbitration was conducted in March 2018 with closing arguments heard on June 25, 2018. On December 6, 2018, the arbitral tribunal issued its confidential final ruling by awarding $6.2 million to Tracker, which was paid on December 18, 2018. In connection with this legal matter, we had accrued a contingent liability of $4.0 million and therefore the net effect of the final award is recorded in General & Administrative expenses in our condensed consolidated statements of comprehensive income (loss) for the fiscal year ended February 28, 2019. At this time, we believe that all outstanding legal matters related to the EVE and Tracker matters are complete. In addition to the foregoing matters, from time to time as a normal consequence of doing business, various claims and litigation may be asserted or commenced against us. In particular, we may receive claims concerning contract performance or claims that our products or services infringe the intellectual property of third parties which are in the ordinary course of business. While the outcome of any such claims or litigation cannot be predicted with certainty, management does not believe that the outcome of such matters existing at the present time would have a material adverse effect on our consolidated results of operations, financial condition and cash flows. |
SEGMENT AND GEOGRAPHIC DATA
SEGMENT AND GEOGRAPHIC DATA | 12 Months Ended |
Feb. 28, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT AND GEOGRAPHIC DATA | NOTE 20 – SEGMENT AND GEOGRAPHIC DATA Historically, our business activities were organized into two reportable segments – Wireless DataCom and Satellite. Effective August 31, 2016, we ceased operations of the Satellite business and reported thereafter through the first quarter of fiscal 2018 under one reportable segment: Wireless DataCom. In the quarter ended August 31, 2017, we realigned our operations and now operate under two reportable segments: Telematics Systems and Software & Subscription Services. Our organizational structure is based on a number of factors that our CEO, the Chief Operating Decision Maker (“CODM”), uses to evaluate and operate the business, which include customer base, homogeneity of products, and technology. We have recast prior period amounts to conform to the way we internally manage and monitor segment performance. The Telematics Systems segment offers a portfolio of wireless data communications products, which includes asset tracking units, mobile telematics devices, fixed and mobile wireless gateways and routers. These wireless networking devices underpin a wide range of our own and third party software and service solutions worldwide and are critical for applications demanding secure, reliable and business-critical communications. Telematics Systems segment revenues consist primarily of stand-alone product sales. The Software & Subscription Services segment offers cloud-based, application enablement and telematics service platforms that facilitate integration of our own applications, as well as those of third parties, through open Applications Programing Interfaces (“APIs”) to deliver full-featured IoT solutions to a wide range of customers and markets. Our scalable proprietary SaaS offerings enable rapid and cost-effective deployment of high-value solutions for customers all around the globe. Software & Subscription Services segment revenues includes SaaS, professional services, devices sold with monitoring services and amortization of costs for customized devices functional only with application subscriptions that are not sold separately. Information by business segment is as follows (in thousands): Year ended February 28, 2019 Operating Segments Telematics Systems Software & Subscription Services Corporate Expenses Total Revenues $ 287,370 $ 76,430 $ - $ 363,800 Adjusted EBITDA $ 40,821 $ 13,093 $ (5,699 ) $ 48,215 Year ended February 28, 2018 Operating Segments Telematics Systems Software & Subscription Services Corporate Expenses Total Revenues $ 302,126 $ 63,786 $ - $ 365,912 Adjusted EBITDA $ 48,943 $ 8,233 $ (4,794 ) $ 52,382 Year ended February 28, 2017 Operating Segments Telematics Systems Software & Subscription Services Satellite Corporate Expenses Total Revenues $ 274,314 $ 61,719 $ 15,069 $ - $ 351,102 Adjusted EBITDA $ 47,432 $ 3,075 $ 2,447 $ (3,586 ) $ 49,368 Operating Segments Telematics Systems Software & Subscription Services Total Goodwill As of February 28, 2019 $ 51,203 $ 29,602 $ 80,805 As of February 28, 2018 $ 50,899 $ 22,081 $ 72,980 The amount shown for each period in the “Corporate Expenses” column above consists of expenses that are not allocated to the business segments. These unallocated corporate expenses include salaries and benefits of certain corporate staff and expenses such as audit fees, investor relations, stock listing fees, director and officer liability insurance, and director fees and expenses. Our CODM evaluates each segment based on Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”), and we therefore consider Adjusted EBITDA to be a primary measure of operating performance of our operating segments. We define Adjusted EBITDA as earnings before investment income, interest expense, taxes, depreciation, amortization and stock-based compensation and other adjustments as identified below. The adjustments to our financial results prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) to calculate Adjusted EBITDA are itemized below (in thousands): Year Ended February 28, 2019 2018 2017 Net income (loss) $ 18,398 $ 16,617 $ (7,904 ) Investment income (5,258 ) (2,256 ) (1,691 ) Interest expense 16,726 10,280 9,896 Income tax provision (benefits) (1,330 ) 10,681 (1,563 ) Depreciation and amortization 20,016 22,957 23,469 Stock-based compensation 11,029 9,298 7,833 Impairment loss and equity in net loss of affiliate 6,787 1,411 1,284 Loss on extinguishment of debt 2,033 - - Acquisition and integration related expenses 935 - 4,513 Non-recurring legal expenses, net of reversal of litigation provision (11,020 ) 10,738 9,192 Gain on LoJack battery performance legal Settlement (18,333 ) (28,333 ) - Restructuring 8,015 - - Other 217 989 4,339 Adjusted EBITDA $ 48,215 $ 52,382 $ 49,368 It is not practicable for us to report identifiable assets by segment because these businesses share resources, functions and facilities. We do not have significant long-lived assets outside the United States. Revenue by geographic area are as follows (in thousands): Year Ended February 28, 2019 2018 2017 United States $ 268,453 $ 265,613 $ 259,974 Europe, Middle East and Africa 49,496 45,830 49,918 South America 15,134 20,699 17,738 Canada 9,815 14,958 8,412 Asia and Pacific Rim 13,958 12,873 8,967 All other 6,944 5,939 6,093 $ 363,800 $ 365,912 $ 351,102 Revenues by geographic area are based upon the country of billing. The geographic location of distributors and OEM customers may be different from the geographic location of the ultimate end users of the products and services provided by us. No single non-U.S. country accounted for more than 10% of our revenue in fiscal years ended February 28, 2019, 2018 and 2017. |
QUARTERLY FINANCIAL INFORMATION
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Feb. 28, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | NOTE 21 – QUARTERLY FINANCIAL INFORMATION (UNAUDITED) The following summarizes certain quarterly statement of operations data for each of the quarters in fiscal years 2019 and 2018 (in thousands, except percentages and per share data). The operating results in any quarter are not necessarily indicative of the results that may be expected for any future period. We derived this data from the unaudited consolidated interim financial statements that, in our opinion, have been prepared on substantially the same basis as the audited financial statements contained elsewhere in this report and include all normal recurring adjustments necessary for a fair presentation of the financial information for the periods presented. These unaudited quarterly results should be read in conjunction with the financial statements and notes thereto included elsewhere in this report. Fiscal 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Total Revenues $ 94,888 $ 96,037 $ 88,495 $ 84,380 $ 363,800 Gross profit 38,091 39,821 36,381 33,471 147,764 Gross margin 40.1 % 41.5 % 41.1 % 39.7 % 40.6 % Net income (loss) 8,511 (854 ) (522 ) 11,263 18,398 Earnings (loss) per diluted share $ 0.23 $ (0.02 ) $ (0.02 ) $ 0.33 $ 0.52 Fiscal 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Total Revenues $ 88,081 $ 89,767 $ 93,669 $ 94,395 $ 365,912 Gross profit 37,443 36,838 38,187 38,422 150,890 Gross margin 42.5 % 41.0 % 40.8 % 40.7 % 41.2 % Net income (loss) (2,654 ) 12,232 11,806 (4,767 ) 16,617 Earnings (loss) per diluted share $ (0.08 ) $ 0.34 $ 0.33 $ (0.13 ) $ 0.46 The net income (loss) in the fiscal 2019 first, third and fourth quarter included a gain from legal settlement of $13.3 million, $2.5 million and $2.5 million, respectively. Substantially all of the previously reserved legal provision of $19.1 million as of November 30, 2018 relating to an alleged patent infringement was reversed in the fourth quarter of the current fiscal year. The settlement was described in Note 19 – Legal Proceedings. The net loss in fiscal 2019 second quarter included a loss of $2.0 million from extinguishment of debt. The loss was described in Note 10 – Financing Arrangements. As of February 28, 2019, we determined that our investment in Smart Driver Club was subject to other than temporary impairment of $5.0 million, which is reported as part of impairment loss and equity in net loss of affiliate in our consolidated statement of comprehensive income. The impairment was described in Note 9 – Other Assets. The net loss in the fiscal 2018 first quarter included a litigation provision of $6.1 million. The net income in the fiscal 2018 second quarter and third quarter included a gain from legal settlement of $15.0 million and $13.3 million, respectively. All of these events were described in Note 19 – Legal Proceedings. |
DESCRIPTION OF BUSINESS AND S_2
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Feb. 28, 2019 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business CalAmp Corp. (referred to herein as “CalAmp”, “the Company”, “we”, “our”, or “us”) is a telematics pioneer leading transformation in a global connected economy. We help reinvent businesses and improve lives around the globe with technology solutions that streamline complex mobile Internet of Things (“IoT”) deployments through wireless connectivity solutions and derived data intelligence. Our software applications, scalable cloud services, and intelligent devices collect and assess business-critical data anywhere in the world from industrial machines, commercial and passenger vehicles, their drivers and contents. We are a global organization that is headquartered in Irvine, California. We operate under two reportable segments: Telematics Systems and Software & Subscription Services. On February 25, 2019, we completed our acquisition of Tracker Network (UK) Limited (“TRACKER”), a LoJack licensee and a market leader in SVR telematics services across the United Kingdom, for a cash purchase price of approximately $13.0 million. See Note 2 for a description of this acquisition. In the same month, we entered into an agreement to acquire Car Track, S.A. de C.V., the exclusive licensee of LoJack technology for the Mexican market. The agreement was to purchase the 87.5% of the Car Track shares not currently owned by CalAmp for a purchase price, net of cash on hand, of approximately $13.0 million. We completed the acquisition on March 18, 2019. On April 12, 2019, we acquired Synovia Solutions (“Synovia”), a North American market leader in fleet safety and management for K-12 school bus and state and local government fleets for a purchase price, net of cash on hand, of approximately $50 million. Combined with the recent acquisitions of TRACKER and Car Track, the Synovia acquisition expands our fleet management and vehicle safety services portfolio and accelerates our transformation to high-value subscription-based services. |
Principles of Consolidation | Principles of Consolidation Our consolidated financial statements include the accounts of CalAmp Corp. (a Delaware corporation) and all of our wholly-owned subsidiaries. All intercompany transactions and accounts have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results may differ from those estimates and assumptions. Significant items subject to such estimates and assumptions include the allowance for doubtful accounts; estimate for the lower of cost or market for excess and obsolete inventory; product warranties; deferred income tax asset valuation allowances; intangible assets and other long-lived assets; intellectual property and accrued royalties; stock-based compensation; other contingencies and revenue recognition. The current economic environment, and supplier and customer concentrations also increase the degree of uncertainty inherent in these estimates and assumptions. |
Revenue Recognition | Revenue Recognition In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (“ASC 606”). The new revenue recognition standard provides a five-step analytical framework for transactions to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In order to adhere to this core principle, we apply the following five-step approach: • identify the contract with a customer; • identify the performance obligations in the contract; • determine the transaction price; • allocate the transaction price to the performance obligations in the contract; and • recognize revenue when (or as) we satisfy a performance obligation. We only apply the five-step model to contracts when it is probable that we will collect the consideration we are entitled to in exchange for goods or services we transfer to the customer. The two permitted transition methods under the new standard are the full retrospective method or the modified retrospective method. We adopted the new standard effective March 1, 2018 using the modified retrospective method, which we applied to all contracts that were not completed on adoption date. We applied the provisions of ASC 605 to revenue recognized during each of the fiscal years ended February 28, 2018 and 2017. In the section titled Recently Issued Accounting Standards Products . In accordance with ASC 606, we recognize revenue from product sales upon transfer of control of promised products to customers in an amount that reflects the transaction price, which is generally the stand-alone selling prices of the promised goods. For product shipments made on the basis of “FOB Destination” terms, revenue is recorded when the products reach the customer. Customers generally do not have a right of return except for defective products returned during the warranty period. We record estimated commitments related to customer incentive programs as reductions of revenues. Professional Services . We also provide various professional services to customers. These include project management, engineering services, installation services and an on-going early warning automated notification service, which are typically distinct from other performance obligations and are recognized as the related services are performed. For certain professional service contracts, we recognize revenue based on the proportion of total costs incurred to-date over the estimated cost of the contract, which is an input method. Software-as-a-Service (“SaaS”) . Our SaaS-based subscriptions for our fleet management, vehicle finance and certain other verticals provide our customers with the ability to wirelessly communicate with monitoring devices installed in vehicles and other mobile or remote assets via our software applications. The transaction price for a typical SaaS arrangement includes the price for the hardware, accessories, installation and application subscriptions. Generally, we defer the recognition of revenue for the customized devices that only function with our applications and are sold on an integrated basis with applicable subscriptions. Such customized devices and the application services are not sold separately. In such circumstances, the associated product costs are recorded as deferred costs in the balance sheet. The upfront fees for the devices are not distinct from the subscription service and are combined into the subscription service performance obligation. Generally, these service arrangements do not provide the customer with the right to take possession of the software supporting the subscription service at any time. Revenues from subscription services are recognized ratably, on a straight-line basis, over the term of the subscription. The deferred product revenue and deferred product cost amounts are amortized to application subscriptions and related products and other services revenue and cost of revenue, respectively, on a straight-line basis over the estimated average in-service lives of these devices, which are three years in the vehicle finance and four years in the fleet management verticals. Our deferred revenue under ASC 606 also includes prepayments from our customers for various subscription services but does not include future subscription fees associated with customers’ unexercised contract renewal rights. The product revenues for certain customer arrangements are presented combined within Application subscription and related products and other services in our statement of comprehensive income (loss) as the products and services are customarily part of one customer contractual arrangement. In certain customer arrangements, we also sell devices together with monitoring services, for which revenues for the sales of the devices are recognized upon transfer of control to the customer and monitoring services are recognized over the service period as the devices and services are customarily part of one customer contractual arrangement. The allocation of the transaction price is based on estimated stand-alone selling prices for the devices and the monitoring services. The revenues under these arrangements are included within Application Subscription and Related Products and Other Services revenues and costs of revenues in our statement of comprehensive income (loss). Sales taxes . We exclude from the measurement of the transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by us from a customer. Contract Balances . Timing of revenue recognition may differ from the timing on our invoicing to customers. Contract liabilities are comprised of billings or payments received from our customers in advance of performance under the contract. We refer to these contract liabilities as “Deferred Revenues” in the accompanying condensed consolidated financial statements. During fiscal year ended February 28, 2019, we recognized $20.4 million in revenue from the beginning deferred revenue balance of $41.7 million on March 1, 2018. Certain incremental costs of obtaining a contract with a customer consist of deferred costs of hardware and sales commissions. The deferred costs of hardware are capitalized and amortized over the estimated useful life of the device on a straight-line basis. We determined that sales commissions are generally recognized within one year; therefore, we have elected the practical expedient to expense sales commission costs as incurred. We disaggregate revenue from contracts with customers into reportable segments, geography, type of goods and services and timing of revenue recognition. See Note 20 for our revenue by segment and geography. The disaggregation of revenue by type of goods and services and by timing of revenue recognition was as follows (in thousands): Year Ended February 28, 2019 Revenue by type of goods and services: Products $ 300,378 Professional services 5,989 Recurring application subscriptions 57,433 Total $ 363,800 Revenue by timing of revenue recognition: Revenue recognized at a point in time $ 300,378 Revenue recognized over time 63,422 Total $ 363,800 Product revenues presented in the table above include devices sold in customer arrangements that include both the device and monitoring services. Recurring application subscriptions revenues include the amortization for customized devices functional only with application subscriptions. We adopted ASC 606 under the modified retrospective method on March 1, 2018, and therefore we did not present comparative information for the years ended February 28, 2018 and 2017. As of February 28, 2019, we have estimated remaining performance obligations for contractually committed revenues of $51.4 million, of which we expect to recognize approximately 48% in fiscal 2020 and 29% in fiscal 2021. We have utilized the practical expedient exception within ASC 606 and exclude contracts that have original durations of less than one year from the aforementioned remaining performance obligation disclosure. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid investments with maturities at date of purchase of three months or less to be cash equivalents. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash equivalents, marketable debt securities and trade accounts receivable. Cash and cash equivalents as well as investments are maintained with several financial institutions. Deposits held with banks may exceed the federally insured limits. These deposits are maintained with reputable financial institutions and are redeemable upon demand. We have not experienced any losses in such accounts. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable consists of amounts due to us from sales arrangements executed in our normal business activities and are recorded at invoiced amounts. Our payment terms generally range between 30 to 60 days and we do not offer financing options. We present the aggregate accounts receivable balance net of an allowance for doubtful accounts. Generally, collateral and other security is not obtained for outstanding accounts receivable. Credit losses, if any, are recognized based on management’s evaluation of historical collection experience, customer-specific financial conditions as well as an evaluation of current industry trends and general economic conditions. Past due balances are assessed by management on a periodic basis and balances are written off when the customer’s financial condition no longer warrants pursuit of collection. Although we expect to collect amounts due, actual collections may differ from estimated amounts. |
Inventories | Inventories Inventories are stated at the lower of cost (using the first-in, first-out method) or market (net realizable value). Inventories are reviewed for excess quantities and obsolescence based upon demand forecasts for a specific time horizon. We record a charge to cost of revenues for the amount required to reduce the carrying value of inventory to estimated net realizable value. Ongoing changes in cellular carrier technology, supplier changes, closure of our warehouse facilities, changes in demand or significant reductions in product pricing may necessitate additional write-downs of inventory carrying value in the future, which could be material. |
Property and Equipment | Property and equipment Property and equipment are recorded at cost and depreciated using the straight-line method over the respective estimated useful lives of the assets ranging from two to ten years. Leasehold improvements are amortized using the straight-line method over the lesser of the lease term or the estimated useful life of the assets. Maintenance and repairs are expensed as incurred. We capitalize certain costs incurred in connection with developing or obtaining internal-use software and software embedded in our products. These costs are recorded as property and equipment in our consolidated balance sheets and are amortized over useful lives ranging from three to seven years. |
Business Combinations | Business Combinations The purchase price of an acquisition is allocated to the underlying assets acquired and liabilities assumed based upon their estimated fair value at the date of acquisition. To the extent the purchase price exceeds the fair value of the net identifiable tangible and intangible assets acquired and liabilities assumed, such excess is allocated to goodwill. We determine the estimated fair values after review and consideration of relevant information, including discounted cash flows, quoted market prices and other estimates made by management. We may refine the preliminary purchase price allocation, as necessary, during the measurement period of up to one year after the acquisition closing date as we obtain more information as to facts and circumstances existing at the acquisition date impacting the asset valuations and liabilities assumed. Goodwill acquired in business combinations is assigned to the reporting unit expected to benefit from the combination as of the acquisition date. Acquisition-related costs are recognized separately from the acquisition and are expensed as incurred. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill is recorded as the difference between the aggregate consideration paid in a business combination and the fair value of the acquired net tangible and intangible assets. Goodwill is not amortized but rather tested for impairment on an annual or interim basis as deemed necessary. Our acquired identifiable intangible assets from business combinations consist principally of developed technology, customer lists, dealer relationships and tradenames. Our acquired intangible assets with definite lives are amortized from the date of acquisition over periods ranging from two to ten years using a method that reflects the pattern in which the economic benefits of the intangible assets are consumed or otherwise used or, if that pattern cannot be reliably determined, using a straight-line amortization method. |
Impairment of Goodwill and Other Long-Lived Assets | Impairment of Goodwill and Other Long-Lived Assets We evaluate goodwill for impairment on an annual basis in the fourth quarter, or on an interim basis, if we believe indicators of impairment exist. We first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If we conclude that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we conduct a two-step quantitative goodwill impairment test. The first step of the impairment test involves comparing the fair value of the reporting unit with its carrying value. If the carrying amount of the reporting unit exceeds the reporting unit’s fair value, we perform the second step of the goodwill impairment test. The second step of the goodwill impairment test involves comparing the implied fair value of the reporting unit’s goodwill with the carrying value of the goodwill. The amount by which the carrying value of the goodwill exceeds its implied fair value will be recognized as an impairment loss. In both fiscal 2019 and 2018, we conducted a quantitative goodwill impairment test and did not identify an impairment indicator as part of our quantitative step one analysis. Long-lived assets to be held and used, including identifiable intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. These events or changes in circumstances may include a significant deterioration of operating results, changes in business plans or changes in anticipated future cash flows. If an impairment indicator is present, we evaluate recoverability by a comparison of the carrying amount of the assets or asset group to future undiscounted net cash flows expected to be generated by the lowest level of asset group. Given the interdependencies of revenues across our segments, product and service verticals, and geographies, our asset groups are generally our two operating segments. If the assets or asset group are impaired, the impairment recognized is measured by the amount by which the carrying amount exceeds the fair value of the assets. Fair value is generally determined by estimates of discounted cash flows. The discount rate used in any estimate of discounted cash flows would be the rate required for similar investment of like risk. |
Impairment of Equity Method Investments | Impairment of Equity Method Investments We assess whether there are indicators that the value of our equity method investments may be impaired. An impairment charge is recognized only if we determine that a decline in the value of the investment below our carrying value is other-than-temporary. The assessment of impairment is highly subjective and involves the application of significant assumptions and judgments about our intent and ability to recover our investment given the nature and operations of the underlying investment, including the level of our involvement therein, among other factors. To the extent an impairment is deemed to be other-than-temporary, the loss is measured as the excess of the carrying amount of the investment over the estimated fair value of the investment. Impairment charges are included in Impairment loss and equity in net loss of affiliate. |
Fair Value Measurements | Fair Value Measurements Our cash equivalents, accounts receivable, accounts payable and accrued expenses approximate fair value due to the short-term maturities of these items. Our marketable securities are measured at fair value on a recurring basis. The framework for measuring fair value and related disclosure requirements about fair value measurements are provided in ASC 820, Fair Value Measurements Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Observable inputs other than quoted prices in active markets for identical assets or liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. |
Research and Development Costs | Research and Development Costs Research and development costs are expensed as incurred. In certain cases, costs are incurred to purchase materials and equipment for future use in research and development efforts. In such cases, these costs are capitalized and expensed as consumed. |
Product Warranty | Product Warranty All products have a one- or two-year limited warranty against manufacturing defects and workmanship. We estimate the future costs relating to product returns subject to our warranty and record a reserve upon shipment of our products. We periodically adjust our estimates for actual warranty claims, historical claims experience as well as the impact of known product quality issues. |
Patent Litigation and Other Contingencies | Patent Litigation and Other Contingencies We accrue for patent litigation and other contingencies whenever we determine that an unfavorable outcome is probable and a liability is reasonably estimable. The amount of the accrual is estimated based on a review of each claim, including the type and facts of the claim and our assessment of the merits of the claim. These accruals are reviewed at least on a quarterly basis and are adjusted to reflect the impact of recent negotiations, settlements, court rulings, advice from legal counsel and other events pertaining to the case. Such accruals, if any, are recorded as general and administrative expense in our consolidated statements of comprehensive income (loss). Although we take considerable measures to mitigate our exposure in these matters, litigation is unpredictable; however, we believe that we have valid defenses with respect to pending legal matters against us as well as adequate provisions for probable and estimable losses. All costs for legal services are expensed as incurred. |
Income Taxes | Income Taxes We use the asset and liability method when accounting for income taxes. Under this method, deferred income tax assets and liabilities are recognized for future tax consequences attributable to difference between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to the taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We recognize the effect of income tax positions only if those positions are more likely than not of being sustained. Changes in recognition or measurement are reflected in the period in which the change in judgement occurs. Valuation allowances are provided against tax assets when it is determined that it is more likely than not that the assets will not be realized. In assessing valuation allowances, we review historical and future expected operating results and other factors, including cumulative earnings experience, expectations of future taxable income by jurisdiction and the carryforward periods available for reporting purposes. We recognize interest and/or penalties related to uncertain tax positions in income tax expense. |
Foreign Currency Translation | Foreign Currency Translation We translate the assets and liabilities of our non-U.S. dollar functional currency subsidiaries into U.S. dollars using exchange rates in effect at the end of each period. Revenue and expenses for these subsidiaries are translated using rates that approximate those in effect during the period. Gains and losses from these translations are recognized in foreign currency translation included in Accumulated Other Comprehensive Income (Loss) during the period. The aggregate foreign currency transaction exchange rate gain (losses) included in determining income (loss) before income taxes were $(0.4) million, $0.5 million and $0.1 million in fiscal years 2019, 2018 and 2017, respectively. |
Stock-Based Compensation | Stock-Based Compensation Our stock-based compensation expense resulting from grants of employee stock options, restricted stock and restricted stock units is recognized in the consolidated financial statements based on the respective grant date fair values of the awards. We generally estimate stock option grant date fair value using the Black-Scholes-Merton option pricing model and recognize the expense over a requisite service (vesting) period using the straight-line method. The measurement of stock-based compensation is based on several criteria such as the type of equity award, the valuation model used and associated input factors including the expected term of the award, stock price volatility, risk free interest rate and forfeiture rate. Certain of these inputs are subjective and are determined based in part on management's judgment. We account for forfeitures as they occur, rather than estimating expected forfeitures over the course of a vesting period. |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) Other comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss) (“OCI”). OCI refers to revenue, expenses and gains and losses that under U.S. GAAP are recorded as an element of stockholders’ equity and excluded from net income (loss). Our OCI consists of foreign currency translation adjustments from those subsidiaries not using the U.S. dollar as their functional currency. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In May 2017, the FASB issued Accounting Standards Update 2017-09, Compensation – Stock Compensation: Scope of Modification Accounting Compensation – Stock Compensation In January 2017, the FASB issued Accounting Standards Update 2017-04, Simplifying the Test for Goodwill Impairment After the adoption of this standard on a prospective basis, we will follow a one-step model for goodwill impairment In February 2016, the FASB issued ASU 2016-02, Leases We developed a cross-functional team to evaluate and implement the new guidance and we have substantially completed the implementation of a third-party software solution to facilitate compliance with the accounting and reporting requirements. The team continues to review existing lease arrangements, and has collected and loaded a significant portion of the lease portfolio into the software. Additionally, we continue to enhance our accounting systems and update business processes and controls related to the new guidance for leases. Collectively, these activities are expected to enable us to meet the new accounting and disclosure requirements upon adoption in the first quarter of fiscal 2020. We have elected to apply the transition requirements at the March 1, 2019, adoption date rather than at the beginning of the earliest comparative period presented. This approach allows for a cumulative effect adjustment in the period of adoption, and prior periods will not be restated. In addition, we have elected the package of practical expedients permitted under the transition guidance, which does not require reassessment of prior conclusions related to contracts containing a lease, lease classification and initial direct lease costs. As an accounting policy election, we will exclude short-term leases (term of 12 months or less) from the balance sheet presentation and will account for non-lease and lease components in a contract as a single lease component for certain asset classes. We are finalizing our evaluation and we estimate the impact on our consolidated balance sheet from the recognition of ROU asset and lease liability will be material. However, the impact to our consolidated statements of comprehensive income and consolidated statements of cash flows will not be material. In January 2016, the FASB issued Accounting Standards Update 2016-01, Financial Instruments–Overall: Recognition and Measurement of Financial Assets and Financial Liabilities In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers Since the modified retrospective method does not result in recasting of the prior year financial statements, ASC 606 requires us to provide additional disclosures for the amount by which each financial statement line item was affected by adoption of the standard, with an explanation of the reasons for significant changes. As a result of the adoption of ASC 606, our deferred product revenues and deferred product costs for the fleet management and auto vehicle finance verticals increased as balances are now amortized over the estimated average in-service lives of these devices. Deferred income tax assets and accumulated deficit increased as a result of the changes made to our deferred product revenues and deferred product costs. The cumulative effect of the changes made to our consolidated balance sheet for the adoption of ASC 606 were as follows (in thousands): Balance at February 28, 2018 ASC 606 Adjustments Balance at March 1, 2018 Assets Prepaid expenses and other current assets (1) $ 12,000 1,891 $ 13,891 Deferred income tax assets 31,581 532 32,113 Other assets (1) 18,829 3,145 21,974 Liabilities and Stockholders' Equity Deferred revenue $ 17,757 2,156 19,913 Other non-current liabilities 24,249 5,007 29,256 Stockholders' equity Accumulated deficit $ (19,459 ) (1,595 ) (21,054 ) (1) Deferred product costs included in Prepaid expenses and other current assets Other assets In accordance with the requirements of ASC 606, the disclosure of the impact of adoption on our consolidated balance sheet as of the fiscal year ended February 28, 2019 is as follows: As of February 28, 2019 As reported ASC 606 Adjustments Without ASC 606 Adoption Assets Prepaid expenses and other current assets (1) $ 19,373 (1,473 ) $ 17,900 Deferred income tax assets 22,626 (532 ) 22,094 Other assets (1) 22,510 (3,319 ) 19,191 Liabilities and Stockholders' Equity Deferred revenue (2) $ 24,264 (1,945 ) 22,319 Other non-current liabilities (2) 38,476 (5,353 ) 33,123 Stockholders' equity: Accumulated deficit $ (2,227 ) 1,689 (538 ) (1) Deferred product costs included in Prepaid expenses and other current assets Other assets (2) The balances as of February 28, 2019 also included deferred revenue of TRACKER, which was acquired on February 25, 2019 (see Note 2). The impact of adopting ASC 606 on our consolidated statements of comprehensive income (loss) for the fiscal year ended February 28, 2019 was immaterial. |
DESCRIPTION OF BUSINESS AND S_3
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) - ASU 2014-09 [Member] | 12 Months Ended |
Feb. 28, 2019 | |
Summary of Disaggregation of Revenue by Type of Goods and Services and by Timing of Revenue Recognition | We disaggregate revenue from contracts with customers into reportable segments, geography, type of goods and services and timing of revenue recognition. See Note 20 for our revenue by segment and geography. The disaggregation of revenue by type of goods and services and by timing of revenue recognition was as follows (in thousands): Year Ended February 28, 2019 Revenue by type of goods and services: Products $ 300,378 Professional services 5,989 Recurring application subscriptions 57,433 Total $ 363,800 Revenue by timing of revenue recognition: Revenue recognized at a point in time $ 300,378 Revenue recognized over time 63,422 Total $ 363,800 Product revenues presented in the table above include devices sold in customer arrangements that include both the device and monitoring services. Recurring application subscriptions revenues include the amortization for customized devices functional only with application subscriptions. We adopted ASC 606 under the modified retrospective method on March 1, 2018, and therefore we did not present comparative information for the years ended February 28, 2018 and 2017. |
Schedule of Cumulative Effect of Changes Made to Consolidated Balance Sheet for Adoption | The cumulative effect of the changes made to our consolidated balance sheet for the adoption of ASC 606 were as follows (in thousands): Balance at February 28, 2018 ASC 606 Adjustments Balance at March 1, 2018 Assets Prepaid expenses and other current assets (1) $ 12,000 1,891 $ 13,891 Deferred income tax assets 31,581 532 32,113 Other assets (1) 18,829 3,145 21,974 Liabilities and Stockholders' Equity Deferred revenue $ 17,757 2,156 19,913 Other non-current liabilities 24,249 5,007 29,256 Stockholders' equity Accumulated deficit $ (19,459 ) (1,595 ) (21,054 ) (1) Deferred product costs included in Prepaid expenses and other current assets Other assets In accordance with the requirements of ASC 606, the disclosure of the impact of adoption on our consolidated balance sheet as of the fiscal year ended February 28, 2019 is as follows: As of February 28, 2019 As reported ASC 606 Adjustments Without ASC 606 Adoption Assets Prepaid expenses and other current assets (1) $ 19,373 (1,473 ) $ 17,900 Deferred income tax assets 22,626 (532 ) 22,094 Other assets (1) 22,510 (3,319 ) 19,191 Liabilities and Stockholders' Equity Deferred revenue (2) $ 24,264 (1,945 ) 22,319 Other non-current liabilities (2) 38,476 (5,353 ) 33,123 Stockholders' equity: Accumulated deficit $ (2,227 ) 1,689 (538 ) (1) Deferred product costs included in Prepaid expenses and other current assets Other assets (2) The balances as of February 28, 2019 also included deferred revenue of TRACKER, which was acquired on February 25, 2019 (see Note 2). |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Feb. 28, 2019 | |
Business Combinations [Abstract] | |
Summary of Preliminary Purchase Price Allocation | The following is a preliminary purchase price allocation as of February 28, 2019 (in thousands): Purchase price $ 13,097 Less cash acquired, net of debt assumed (66 ) Net cash paid 13,031 Less provisional amount of working capital claim against escrowed consideration (840 ) Net consideration 12,191 Fair value of net assets and liabilities assumed: Current assets other than cash $ 3,549 Property and equipment 1,835 Customer relationships 2,354 Trade name 2,354 Developed technology 1,830 Other non-current assets 104 Current liabilities (3,030 ) Deferred revenue, current (1,976 ) Deferred revenue, non-current (1,186 ) Deferred tax liability, non-current (963 ) Other non-current liabilities (201 ) Total fair value of net assets acquired 4,670 Goodwill $ 7,521 |
CONCENTRATION OF CUSTOMERS AN_2
CONCENTRATION OF CUSTOMERS AND SUPPLIERS (Tables) | 12 Months Ended |
Feb. 28, 2019 | |
Risks And Uncertainties [Abstract] | |
Schedule of Significant Customers and Significant Suppliers Concentration Risk Percentage | Some of these customers accounted for more than 10% of our revenue or accounts receivable as follows: Year Ended February 28, 2019 2018 2017 Net sales: Customer A 15 % 12 % 8 % As of February 28, 2019 2018 2017 Accounts receivable: Customer A 14 % 15 % 12 % Customer B 3 % 13 % 5 % Year Ended February 28, 2019 2018 2017 Inventory purchases: Supplier A 31 % 33 % 34 % Supplier B 20 % 16 % 14 % Supplier C 6 % 9 % 11 % As of February 28, 2019 2018 2017 Accounts Payable: Supplier A 30 % 40 % 33 % Supplier B 18 % 16 % 18 % |
CASH, CASH EQUIVALENTS AND IN_2
CASH, CASH EQUIVALENTS AND INVESTMENTS (Tables) | 12 Months Ended |
Feb. 28, 2019 | |
Cash And Cash Equivalents [Abstract] | |
Schedule of Cash and Marketable Securities | The following tables summarize our financial instrument assets (in thousands): As of February 28, 2019 Balance Sheet Classification of Fair Value Unrealized Cash and Short-Term Gains Fair Cash Marketable Other Cost (Losses) Value Equivalents Securities Assets Cash $ 26,084 $ - $ 26,084 $ 26,084 $ - $ - Level 1: Money market funds 154,428 - 154,428 154,428 - - Mutual funds (1) 6,023 390 6,413 - - 6,413 International equities 296 (73 ) 223 - - 223 Level 2: Repurchase agreements 72,000 - 72,000 72,000 - - Corporate bonds 21,502 (2 ) 21,500 3,988 17,512 - Total $ 280,333 $ 315 $ 280,648 $ 256,500 $ 17,512 $ 6,636 As of February 28, 2018 Balance Sheet Classification of Fair Value Unrealized Cash and Short-Term Gains Fair Cash Marketable Other Cost (Losses) Value Equivalents Securities Assets Cash $ 51,529 $ - $ 51,529 $ 51,529 $ - $ - Level 1: Money market funds 9,034 - 9,034 9,034 - - Mutual funds (1) 4,920 721 5,641 - - 5,641 International equities 2,175 643 2,818 - 2,509 309 Level 2: Repurchase agreements 57,500 - 57,500 57,500 - - Corporate bonds 35,444 (13 ) 35,431 14,540 20,891 - Total $ 160,602 $ 1,351 $ 161,953 $ 132,603 $ 23,400 $ 5,950 (1) Amounts represent various equities, bond and money market mutual funds held in a “Rabbi Trust” and are restricted for payment obligations to non-qualified deferred compensation plan participants. See Note 9 for discussion of deferred compensation plan. |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Feb. 28, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable consist of the following (in thousands): February 28, 2019 2018 Accounts receivable $ 79,835 $ 72,766 Allowance for doubtful accounts (1,756 ) (1,186 ) $ 78,079 $ 71,580 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Feb. 28, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following (in thousands): February 28, 2019 2018 Raw materials $ 14,141 $ 18,629 Work in process 72 567 Finished goods 17,820 17,106 $ 32,033 $ 36,302 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Feb. 28, 2019 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consist of the following (in thousands): February 28, 2019 2018 Leasehold improvements $ 3,522 $ 3,157 LoJack system components and law enforcement tracking units 20,326 20,558 Plant equipment and tooling 13,078 16,842 Office equipment, computers and furniture 11,553 14,206 Software 31,349 31,427 79,828 86,190 Less accumulated depreciation and amortization (58,641 ) (69,585 ) 21,187 16,605 Fixed assets not yet in service 5,836 4,657 $ 27,023 $ 21,262 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Feb. 28, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in goodwill are as follows (in thousands): Year Ended February 28, 2019 2018 Balance at beginning of period $ 72,980 $ 72,980 Acquisitions (Note 2) 7,521 - Other (1) 304 - Balance at end of period $ 80,805 $ 72,980 (1) Amounts represent certain immaterial adjustments related to the LoJack acquisition. |
Schedule of Other Intangible Assets | Other intangible assets are comprised as follows (in thousands): Gross Accumulated Amortization Net Useful Feb. 28, Other Feb. 28, Feb. 28, Feb. 28, Feb. 28, Feb. 28, Life 2018 Additions (1) 2019 2018 Expense 2019 2018 2019 Developed technology 2-7 years $ 22,280 1,830 (507 ) $ 23,603 $ 14,288 3,965 $ 18,253 $ 7,992 $ 5,350 Tradenames 10 years 37,729 2,362 40,091 9,087 3,557 12,644 28,642 27,447 Customer lists 4-7 years 22,950 2,354 25,304 19,623 1,684 21,307 3,327 3,997 Dealer and customer relationships 7-12 years 16,850 16,850 4,714 2,194 6,908 12,136 9,942 Patents 5 years 483 106 589 124 36 160 359 429 $ 100,292 $ 6,652 $ (507 ) $ 106,437 $ 47,836 $ 11,436 $ 59,272 $ 52,456 $ 47,165 |
Schedule of Future Amortization Expense | Estimated future amortization expense as of February 28, 2019 is as follows (in thousands): 2020 $ 10,315 2021 8,492 2022 6,859 2023 6,638 2024 4,747 Thereafter 10,114 $ 47,165 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Feb. 28, 2019 | |
Other Assets Noncurrent Disclosure [Abstract] | |
Schedule of Other Assets | Other assets consist of the following (in thousands): February 28, 2019 2018 Deferred compensation plan assets $ 6,413 $ 5,641 Investment in international licensees 2,263 2,349 Equity investment in and loan to ThinxNet GmbH 2,650 2,674 Equity investment in and loan to Smart Driver Club - 3,814 Deferred product cost 10,094 3,523 Other 1,090 828 $ 22,510 $ 18,829 |
FINANCING ARRANGEMENTS (Tables)
FINANCING ARRANGEMENTS (Tables) | 12 Months Ended |
Feb. 28, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Balances Attributable to the Notes | Balances attributable to the Notes consist of the following (in thousands): February 28, 2019 2018 2020 Convertible Notes Principal $ 122,527 $ 172,500 Less: Unamortized debt discount (6,461 ) (16,143 ) Unamortized debt issuance costs (817 ) (2,058 ) Net carrying amount of the 2020 Convertible Notes 115,249 154,299 2025 Convertible Notes Principal 230,000 Less: Unamortized debt discount (64,565 ) Unamortized debt issuance costs (4,779 ) Net carrying amount of the 2025 Convertible Notes 160,656 Convertible senior unsecured notes, net $ 275,905 Fair value of 2020 Convertible Notes (Level 2 measurement) $ 118,680 Fair value of 2025 Convertible Notes (Level 2 measurement) $ 184,334 |
Summary of Liability and Equity Components of Notes, Issuance Costs and Applicable Assumptions Used for Calculation | The table below summarizes the liability and equity components of the Notes, the issuance costs and the applicable assumptions used for the calculation (in millions except initial conversion rate and per share amounts): 2020 Convertible Notes 2025 Convertible Notes Initial conversion rate (shares per $1,000 principal amount) 36.2398 32.5256 Initial conversion price per share $ 27.5940 $ 30.7450 Fair value of liability component upon issuance $ 138.9 $ 160.8 Discount Rate 6.20 % 7.56 % Fair value measurement level Level 3 Level 3 Fair value of embedded equity component upon issuance $ 33.6 $ 69.2 Deferred tax asset effect $ 16.0 $ 17.3 Total issuance cost $ 4.3 $ 7.3 Equity component $ 1.0 $ 2.2 Deferred tax asset effect $ 0.4 $ 0.5 |
RESTRUCTURING CHARGES (Tables)
RESTRUCTURING CHARGES (Tables) | 12 Months Ended |
Feb. 28, 2019 | |
Restructuring And Related Activities [Abstract] | |
Summary of Activity Resulting from Implementation of Restructuring Plan within Other Current and Non-current Liabilities | The following table summarizes the activity resulting from the implementation of the restructuring plan within other current and non-current liabilities: Personnel Facilities Total Restructuring liabilities as of February 28, 2018 $ — $ — $ — Charges 4,275 3,740 8,015 (Payments) (1,496 ) (763 ) (2,259 ) Restructuring liabilities as of February 28, 2019 $ 2,779 $ 2,977 $ 5,756 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Feb. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Before Income Taxes | Our income (loss) before income taxes and equity in net loss of affiliate consists of the following (in thousands): Year Ended February 28, 2019 2018 2017 Domestic $ 21,367 $ 13,898 $ (11,910 ) Foreign 2,488 14,811 3,727 Total income (loss) before income taxes and equity in net loss of affiliate $ 23,855 $ 28,709 $ (8,183 ) |
Components of Income Tax Benefit (Provision) | The components of income tax benefit (provision) consists of the following (in thousands): Year Ended February 28, 2019 2018 2017 Current: Federal $ 404 $ (412 ) $ - State (256 ) (694 ) (137 ) Foreign (62 ) (2,204 ) (1,035 ) Total current 86 (3,310 ) (1,172 ) Deferred: Federal (2,015 ) (6,156 ) 1,712 State (1,183 ) (1,458 ) 539 Foreign 4,442 243 484 Total deferred 1,244 (7,371 ) 2,735 Income tax benefit (provision) $ 1,330 $ (10,681 ) $ 1,563 |
Reconciliation of Effective Income Tax Benefit (Provision) | The income tax benefit (provision) differs from the amount obtained by applying the statutory rate as follows (in thousands): Year Ended February 28, 2019 2018 2017 Income tax benefit (provision) at U.S. statutory federal rate $ (5,010 ) $ (9,400 ) $ 2,864 State income tax provision, net of federal income tax effect (1,300 ) (574 ) 182 Foreign taxes (31 ) 2,923 68 Impact of tax reform - (8,955 ) - Valuation allowance reductions (increases) 5,915 3,046 (1,391 ) Research and development tax credits 1,658 1,034 806 Tax benefits on vested and exercised equity awards 758 937 - Other, net (660 ) 308 (966 ) Total income tax benefit (provision) $ 1,330 $ (10,681 ) $ 1,563 |
Schedule of Net Deferred Tax Income Assets | The components of net deferred income tax assets for income tax purposes are as follows (in thousands): February 28, 2019 2018 Net operating loss carryforwards $ 19,269 $ 22,013 Depreciation, amortization and impairments (11,945 ) (11,112 ) Research and development credits 19,189 17,432 Stock-based compensation 2,783 2,376 Other tax credits 1,018 2,015 Inventory reserve 624 292 Warranty reserve 313 429 Payroll and employee benefit accruals 2,220 1,941 Allowance for doubtful accounts 454 354 Other accrued liabilities 6,208 8,975 Convertible debt (10,822 ) (194 ) Other, net 3,281 3,904 Gross deferred tax assets 32,592 48,425 Valuation allowance (10,929 ) (16,844 ) Net deferred tax assets $ 21,663 $ 31,581 Reported as: Deferred tax assets $ 22,626 $ 31,581 Deferred tax liabilities (963 ) - Net deferred tax assets $ 21,663 $ 31,581 |
Summary of Unrecognized Tax Benefits | Year Ended February 28, 2019 2018 2017 Gross amounts of unrecognized tax benefits at beginning of the period $ 1,029 $ 1,029 $ 1,029 Increases related to prior period tax positions 2,241 - - Decreases related to prior period tax positions (69 ) - - Increases related to current period tax positions - - - Settlements - - - Gross amounts of unrecognized tax benefits at end of the period $ 3,201 $ 1,029 $ 1,029 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Feb. 28, 2019 | |
Equity [Abstract] | |
Schedule of Repurchase of Common Stock under Share Repurchase Program | We repurchased our common stock under share repurchase programs approved by our Board of Directors. The following table contains information with respect to these repurchases: Fiscal Year Total Number of Shares Purchased Average Price Paid per Share Total Purchased Dollar Value that may be Purchased Under the Plans Fiscal 2017 1,760,563 $ 14.20 $ 25,000,000 $ - Fiscal 2018 - $ - $ - $ - Fiscal 2019 2,496,422 $ 19.63 $ 49,000,000 $ 10,000,000 |
Summary of Stock Option Activity | The following table summarizes our stock option activity (number of options and aggregate intrinsic value in thousands): Number of Options Weighted Average Exercise Price Weighted average remaining contractual life (years) Aggregate intrinsic value Outstanding at February 28, 2016 860 6.96 4.7 Granted 227 14.49 Exercised (125 ) 7.67 Forfeited or expired (7 ) 15.70 Outstanding at February 28, 2017 955 $ 8.60 5.5 Granted 165 19.31 Exercised (140 ) 2.36 Forfeited or expired - - Outstanding at February 28, 2018 980 $ 11.29 5.9 Granted 140 23.08 Exercised (66 ) 1.87 Forfeited or expired - - Outstanding at February 28, 2019 1,054 $ 13.44 5.8 $ 3,360 Exercisable at February 28, 2017 624 $ 5.03 5.5 $ 7,046 Exercisable at February 28, 2018 590 $ 7.54 4.1 $ 9,349 Exercisable at February 28, 2019 698 $ 10.22 4.4 $ 3,360 Year ended February 28, 2019 2018 2017 Weighted average grant date fair value of stock options granted during the year $ 11.94 $ 10.20 $ 6.69 |
Summary of Fair Value of Stock Options at Grant Date | We use the Black-Scholes-Merton option pricing model for valuation of stock option awards. Calculating the fair value of stock option awards requires the input of highly complex and subjective assumptions. Other reasonable assumptions could provide differing results. The fair value of stock options at the grant date was determined using the following assumptions: Year Ended February 28, Black-Scholes Valuation Assumptions 2019 2018 2017 Expected life (years) 2 - 6 6 6 Expected volatility 36% - 43% 46% 48% Risk-free interest rates 2.5% - 2.9% 2.0% 1.3% Expected dividend yield 0% 0% 0% |
Summary of Outstanding Restricted Stock Shares, PSUs and RSUs Activity | Changes in our outstanding restricted stock shares, PSUs and RSUs at February 28, 2019, 2018 and 2017 were as follows (shares in thousands): Number of Restricted Shares, PSUs and RSUs Weighted Average Grant Date Fair Value Shares Retained to Cover Statutory Minimum Withholding Taxes Outstanding at February 28, 2016 953 16.66 Granted 766 14.63 Vested (382 ) 15.18 122 Forfeited (98 ) 15.64 Outstanding at February 28, 2017 1,239 $ 15.94 Granted 770 19.55 Vested (399 ) 15.92 133 Forfeited (176 ) 17.34 Outstanding at February 28, 2018 1,434 $ 17.72 Granted 787 22.05 Vested (478 ) 17.32 162 Forfeited (236 ) 19.59 Outstanding at February 28, 2019 1,507 $ 19.77 |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense is included in the following captions of the consolidated statements of comprehensive income (loss) (in thousands): Year Ended February 28, 2019 2018 2017 Cost of revenues $ 723 $ 653 $ 374 Research and development 2,061 1,471 1,033 Selling and marketing 2,863 2,314 1,655 General and administrative 5,382 4,860 4,771 $ 11,029 $ 9,298 $ 7,833 |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 12 Months Ended |
Feb. 28, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | The following table sets forth the computation of basic and diluted earnings (loss) per share (in thousands, except per share amounts): Year Ended February 28, 2019 2018 2017 Net income (loss) $ 18,398 $ 16,617 $ (7,904 ) Basic weighted average number of common shares outstanding 34,589 35,250 35,917 Effect of stock options and restricted stock units computed on treasury stock method 705 889 - Diluted weighted average number of common shares outstanding 35,294 36,139 35,917 Earnings (loss) per share: Basic $ 0.53 $ 0.47 $ (0.22 ) Diluted $ 0.52 $ 0.46 $ (0.22 ) |
COMPREHENSIVE INCOME (LOSS) (Ta
COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Feb. 28, 2019 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) | The following table shows the changes in our accumulated other comprehensive income (loss) for the fiscal years ended February 28, 2019, 2018 and 2017 (in thousands): Cumulative Foreign Currency Translation Unrealized Gains/Losses on Marketable Securities Total Balances at February 28, 2016 $ (226 ) $ - $ (226 ) Other comprehensive loss, net of tax (280 ) (35 ) (315 ) Balances at February 28, 2017 (506 ) (35 ) (541 ) Other comprehensive income (loss), net of tax (122 ) 464 342 Balances at February 28, 2018 (628 ) 429 (199 ) Other comprehensive loss, net of tax (33 ) (429 ) (462 ) Balances at February 28, 2019 $ (661 ) $ - $ (661 ) |
OTHER FINANCIAL INFORMATION (Ta
OTHER FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Feb. 28, 2019 | |
Other Financial Information [Abstract] | |
Schedule of Supplemental Balance Sheet Information | Supplemental Balance Sheet Information Other current liabilities consist of the following (in thousands): February 28, 2019 2018 Warranty reserves $ 1,398 $ 5,734 Litigation reserve (see Note 19) 1,500 17,559 Accrued restructuring costs 752 - Other 6,972 8,395 $ 10,622 $ 31,688 Other non-current liabilities consist of the following (in thousands): February 28, 2019 2018 Deferred compensation plan liability $ 6,409 $ 5,642 Deferred revenue 27,106 16,763 Accrued restructuring costs 2,175 - Deferred tax liability 963 - Deferred rent 365 200 Other 1,458 1,644 $ 38,476 $ 24,249 |
Schedule of Interest Expense | Interest expense consists of the following (in thousands): Year Ended February 28, 2019 2018 2017 Interest expense on 2020 Convertible Notes: Stated interest at 1.625% per annum $ 2,308 $ 2,806 $ 2,803 Amortization of note discount 5,769 6,627 6,232 Amortization of debt issue costs 715 845 795 8,792 10,278 9,830 Interest expense on 2025 Convertible Notes: Stated interest at 2.00% per annum 2,811 - - Amortization of note discount 4,637 - - Amortization of debt issue costs 343 - - 7,791 - - Other interest expense 143 2 66 Total interest expense $ 16,726 $ 10,280 $ 9,896 |
Schedule of Supplemental Cash Payments for Interest and Income Taxes and Non-cash Investing and Financing Activities | “Net cash provided by operating activities” in the consolidated statements of cash flows includes cash payments for interest and income taxes. The following is our supplemental schedule of cash payments for interest and income taxes and non-cash investing and financing activities (in thousands): Year Ended February 28, 2019 2018 2017 Cash payments for interest and income taxes: Interest expense paid $ 5,057 $ 2,844 $ 2,852 Income tax paid $ 964 $ 3,498 $ 2,259 Non-cash investing and financing activities: Accrued liability for capital expenditures $ 881 $ - $ - Equity investment in and loan to ThinxNet GmbH (see Note 9) $ 300 $ 2,674 $ - |
Schedule of Valuation and Qualifying Accounts Disclosure | Following is our schedule of valuation and qualifying accounts for the last three years (in thousands): Balance at beginning of year Charged (credited) to costs and expenses Deductions Other Balance at end of year Allowance for doubtful accounts: Fiscal 2017 622 541 (201 ) - 962 Fiscal 2018 962 685 (461 ) - 1,186 Fiscal 2019 1,186 1,230 (660 ) 1,756 Warranty reserve: Fiscal 2017 (1) 1,892 1,305 (2,562 ) 5,883 6,518 Fiscal 2018 6,518 1,331 (2,115 ) - 5,734 Fiscal 2019 5,734 1,126 (5,462 ) 1,398 Deferred tax assets valuation allowance: Fiscal 2017 (1) 1,618 1,391 - 3,578 6,587 Fiscal 2018 (2) 6,587 - (4,835 ) 15,092 16,844 Fiscal 2019 16,844 799 (6,714 ) - 10,929 (1) Amounts under “Other” represent the reserves and valuation allowance assumed in acquisition of LoJack. The warranty reserve is included in the Other Current Liabilities in the consolidated balance sheets. (2) Amount under “Other” represents the valuation allowance previously netted against deferred tax assets of foreign net deferred tax assets not recorded on the balance sheet, which were disclosed narratively in the fiscal 2018 Form 10-K (see Note 12). Deferred tax assets and valuation allowances were grossed up by $15.1 million. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Feb. 28, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Future Payments of Operating Lease Commitments | Following is our summary of future payments of operating lease commitments (in thousands): 2020 $ 7,565 2021 6,386 2022 6,242 2023 6,199 2024 6,126 Thereafter 7,659 $ 40,177 |
SEGMENT AND GEOGRAPHIC DATA (Ta
SEGMENT AND GEOGRAPHIC DATA (Tables) | 12 Months Ended |
Feb. 28, 2019 | |
Segment Reporting [Abstract] | |
Summary of Segment Information | Information by business segment is as follows (in thousands): Year ended February 28, 2019 Operating Segments Telematics Systems Software & Subscription Services Corporate Expenses Total Revenues $ 287,370 $ 76,430 $ - $ 363,800 Adjusted EBITDA $ 40,821 $ 13,093 $ (5,699 ) $ 48,215 Year ended February 28, 2018 Operating Segments Telematics Systems Software & Subscription Services Corporate Expenses Total Revenues $ 302,126 $ 63,786 $ - $ 365,912 Adjusted EBITDA $ 48,943 $ 8,233 $ (4,794 ) $ 52,382 Year ended February 28, 2017 Operating Segments Telematics Systems Software & Subscription Services Satellite Corporate Expenses Total Revenues $ 274,314 $ 61,719 $ 15,069 $ - $ 351,102 Adjusted EBITDA $ 47,432 $ 3,075 $ 2,447 $ (3,586 ) $ 49,368 Operating Segments Telematics Systems Software & Subscription Services Total Goodwill As of February 28, 2019 $ 51,203 $ 29,602 $ 80,805 As of February 28, 2018 $ 50,899 $ 22,081 $ 72,980 |
Summary of Adjusted EBITDA | The adjustments to our financial results prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) to calculate Adjusted EBITDA are itemized below (in thousands): Year Ended February 28, 2019 2018 2017 Net income (loss) $ 18,398 $ 16,617 $ (7,904 ) Investment income (5,258 ) (2,256 ) (1,691 ) Interest expense 16,726 10,280 9,896 Income tax provision (benefits) (1,330 ) 10,681 (1,563 ) Depreciation and amortization 20,016 22,957 23,469 Stock-based compensation 11,029 9,298 7,833 Impairment loss and equity in net loss of affiliate 6,787 1,411 1,284 Loss on extinguishment of debt 2,033 - - Acquisition and integration related expenses 935 - 4,513 Non-recurring legal expenses, net of reversal of litigation provision (11,020 ) 10,738 9,192 Gain on LoJack battery performance legal Settlement (18,333 ) (28,333 ) - Restructuring 8,015 - - Other 217 989 4,339 Adjusted EBITDA $ 48,215 $ 52,382 $ 49,368 |
Summary of Revenues by Geographic Area | Revenue by geographic area are as follows (in thousands): Year Ended February 28, 2019 2018 2017 United States $ 268,453 $ 265,613 $ 259,974 Europe, Middle East and Africa 49,496 45,830 49,918 South America 15,134 20,699 17,738 Canada 9,815 14,958 8,412 Asia and Pacific Rim 13,958 12,873 8,967 All other 6,944 5,939 6,093 $ 363,800 $ 365,912 $ 351,102 |
QUARTERLY FINANCIAL INFORMATI_2
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Feb. 28, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Fiscal 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Total Revenues $ 94,888 $ 96,037 $ 88,495 $ 84,380 $ 363,800 Gross profit 38,091 39,821 36,381 33,471 147,764 Gross margin 40.1 % 41.5 % 41.1 % 39.7 % 40.6 % Net income (loss) 8,511 (854 ) (522 ) 11,263 18,398 Earnings (loss) per diluted share $ 0.23 $ (0.02 ) $ (0.02 ) $ 0.33 $ 0.52 Fiscal 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Total Revenues $ 88,081 $ 89,767 $ 93,669 $ 94,395 $ 365,912 Gross profit 37,443 36,838 38,187 38,422 150,890 Gross margin 42.5 % 41.0 % 40.8 % 40.7 % 41.2 % Net income (loss) (2,654 ) 12,232 11,806 (4,767 ) 16,617 Earnings (loss) per diluted share $ (0.08 ) $ 0.34 $ 0.33 $ (0.13 ) $ 0.46 |
DESCRIPTION OF BUSINESS AND S_4
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) £ in Millions | Apr. 12, 2019USD ($) | Mar. 19, 2019USD ($) | Feb. 25, 2019USD ($) | Feb. 25, 2019GBP (£) | Aug. 30, 2016Segment | Feb. 28, 2019USD ($) | Aug. 31, 2017Segment | May 31, 2017Segment | Feb. 28, 2019USD ($)Segment | Feb. 28, 2018USD ($) | Feb. 28, 2017USD ($) | Mar. 01, 2018USD ($) |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Number of reportable segments | Segment | 2 | 2 | 1 | 2 | ||||||||
Purchase price, net of cash on hand | $ 13,031,000 | $ 116,982,000 | ||||||||||
Revenue recognized | 20,400,000 | |||||||||||
Deferred revenue | $ 24,264,000 | 24,264,000 | $ 17,757,000 | $ 41,700,000 | ||||||||
Contracted not recognized revenue | 51,400,000 | 51,400,000 | ||||||||||
Foreign transaction exchange gains (losses) | (400,000) | $ 500,000 | ||||||||||
ASU 2016-01 [Member] | ||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Reclassificiation of unrealized gain for available sale equity securities to accumulated deficit | $ 400,000 | |||||||||||
Minimum [Member] | ||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Accounts receivable payment period | 30 days | |||||||||||
Finite-lived intangible asset, useful life | 2 years | |||||||||||
Product warranty term against manufacturing defects and workmanship | 1 year | |||||||||||
Maximum [Member] | ||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Accounts receivable payment period | 60 days | |||||||||||
Finite-lived intangible asset, useful life | 10 years | |||||||||||
Product warranty term against manufacturing defects and workmanship | 2 years | |||||||||||
Vehicle Finance Vertical [Member] | ||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Deferred revenue contract in-service life | 3 years | |||||||||||
Fleet Management Vertical [Member] | ||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Deferred revenue contract in-service life | 4 years | |||||||||||
Tracker Network (UK) Limited [Member] | ||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Purchase price | $ 13,000,000 | £ 10 | $ 13,097,000 | |||||||||
Purchase price, net of cash on hand | $ 13,031,000 | |||||||||||
Car Track, S.A. de C.V [Member] | ||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Purchase price, net of cash on hand | $ 13,000,000 | $ 13,000,000 | $ 1,700,000 | |||||||||
Percentage of shares purchase in business combination | 87.50% | 87.50% | 87.50% | 12.50% | 12.50% | |||||||
Synovia Solutions (“Synovia”) [Member] | Subsequent Event [Member] | ||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Purchase price | $ 50,000,000 | |||||||||||
Purchase price, net of cash on hand | $ 50,000,000 |
DESCRIPTION OF BUSINESS AND S_5
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Summary of Disaggregation of Revenue by Type of Goods and Services and by Timing of Revenue Recognition) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 | |
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues | $ 84,380 | $ 88,495 | $ 96,037 | $ 94,888 | $ 94,395 | $ 93,669 | $ 89,767 | $ 88,081 | $ 363,800 | $ 365,912 | $ 351,102 |
Products [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues | 300,378 | ||||||||||
Professional Services [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues | 5,989 | ||||||||||
Recurring Application Subscriptions [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues | 57,433 | ||||||||||
Revenue Recognized At Point In Time [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues | 300,378 | ||||||||||
Revenue Recognized Over Time [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues | $ 63,422 |
DESCRIPTION OF BUSINESS AND S_6
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative 1) (Details) | Feb. 28, 2019 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-03-01 | |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |
Revenue, remaining performance obligation expect to recognize in percentage | 48.00% |
Revenue, remaining Performance obligation, expected timing of satisfaction, year | 2020 |
Revenue, remaining Performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-03-01 | |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |
Revenue, remaining performance obligation expect to recognize in percentage | 29.00% |
Revenue, remaining Performance obligation, expected timing of satisfaction, year | 2021 |
Revenue, remaining Performance obligation, expected timing of satisfaction, period | 1 year |
DESCRIPTION OF BUSINESS AND S_7
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Useful Lives of Assets) (Details) | 12 Months Ended |
Feb. 28, 2019 | |
Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 2 years |
Minimum [Member] | Software Development [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Maximum [Member] | Software Development [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 7 years |
DESCRIPTION OF BUSINESS AND S_8
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Cumulative Effect of Changes Made to Consolidated Balance Sheet for Adoption) (Details) - USD ($) $ in Thousands | Feb. 28, 2019 | Mar. 01, 2018 | Feb. 28, 2018 | |||
Assets | ||||||
Prepaid expenses and other current assets | $ 19,373 | [1] | $ 12,000 | [2] | ||
Deferred income tax assets | 22,626 | 31,581 | ||||
Other assets | 22,510 | [1] | 18,829 | [2] | ||
Liabilities and Stockholders' Equity | ||||||
Deferred revenue | 24,264 | [3] | 17,757 | |||
Other non-current liabilities | 38,476 | [3] | 24,249 | |||
Stockholders' equity: | ||||||
Accumulated deficit | $ (2,227) | $ (19,459) | ||||
ASU 2014-09 [Member] | ||||||
Assets | ||||||
Prepaid expenses and other current assets | [2] | $ 13,891 | ||||
Deferred income tax assets | 32,113 | |||||
Other assets | [2] | 21,974 | ||||
Liabilities and Stockholders' Equity | ||||||
Deferred revenue | 19,913 | |||||
Other non-current liabilities | 29,256 | |||||
Stockholders' equity: | ||||||
Accumulated deficit | (21,054) | |||||
ASU 2014-09 [Member] | Topic ASC 606 Adjustments [Member] | ||||||
Assets | ||||||
Prepaid expenses and other current assets | [2] | 1,891 | ||||
Deferred income tax assets | 532 | |||||
Other assets | [2] | 3,145 | ||||
Liabilities and Stockholders' Equity | ||||||
Deferred revenue | 2,156 | |||||
Other non-current liabilities | 5,007 | |||||
Stockholders' equity: | ||||||
Accumulated deficit | $ (1,595) | |||||
[1] | Deferred product costs included in Prepaid expenses and other current assets and Other assets amounted to $6.2 million and $8.8 million, respectively, as of February 28, 2019. | |||||
[2] | Deferred product costs included in Prepaid expenses and other current assets and Other assets amounted to $5.4 million and $6.0 million, respectively, as of March 1, 2018. | |||||
[3] | The balances as of February 28, 2019 also included deferred revenue of TRACKER, which was acquired on February 25, 2019 (see Note 2). |
DESCRIPTION OF BUSINESS AND S_9
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Cumulative Effect of Changes Made to Consolidated Balance Sheet for Adoption) (Parenthetical) (Details) - USD ($) $ in Millions | Feb. 28, 2019 | Mar. 01, 2018 |
Prepaid Expenses and Other Current Assets [Member] | ||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||
Deferred product costs | $ 6.2 | $ 5.4 |
Other Assets [Member] | ||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||
Deferred product costs | $ 8.8 | $ 6 |
DESCRIPTION OF BUSINESS AND _10
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Impact of Adoption on Condensed Consolidated Balance Sheet) (Details) - USD ($) $ in Thousands | Feb. 28, 2019 | Feb. 28, 2018 | |||
Assets | |||||
Prepaid expenses and other current assets | $ 19,373 | [1] | $ 12,000 | [2] | |
Deferred income tax assets | 22,626 | 31,581 | |||
Other assets | 22,510 | [1] | 18,829 | [2] | |
Liabilities and Stockholders' Equity | |||||
Deferred revenue | 24,264 | [3] | 17,757 | ||
Other non-current liabilities | 38,476 | [3] | 24,249 | ||
Stockholders' equity: | |||||
Accumulated deficit | (2,227) | $ (19,459) | |||
ASU 2014-09 [Member] | |||||
Assets | |||||
Prepaid expenses and other current assets | [1] | 17,900 | |||
Deferred income tax assets | 22,094 | ||||
Other assets | [1] | 19,191 | |||
Liabilities and Stockholders' Equity | |||||
Deferred revenue | [3] | 22,319 | |||
Other non-current liabilities | [3] | 33,123 | |||
Stockholders' equity: | |||||
Accumulated deficit | (538) | ||||
ASU 2014-09 [Member] | Topic ASC 606 Adjustments [Member] | |||||
Assets | |||||
Prepaid expenses and other current assets | [1] | (1,473) | |||
Deferred income tax assets | (532) | ||||
Other assets | [1] | (3,319) | |||
Liabilities and Stockholders' Equity | |||||
Deferred revenue | [3] | (1,945) | |||
Other non-current liabilities | [3] | (5,353) | |||
Stockholders' equity: | |||||
Accumulated deficit | $ 1,689 | ||||
[1] | Deferred product costs included in Prepaid expenses and other current assets and Other assets amounted to $6.2 million and $8.8 million, respectively, as of February 28, 2019. | ||||
[2] | Deferred product costs included in Prepaid expenses and other current assets and Other assets amounted to $5.4 million and $6.0 million, respectively, as of March 1, 2018. | ||||
[3] | The balances as of February 28, 2019 also included deferred revenue of TRACKER, which was acquired on February 25, 2019 (see Note 2). |
DESCRIPTION OF BUSINESS AND _11
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Impact of Adoption on Condensed Consolidated Balance Sheet) (Parenthetical) (Details) - USD ($) $ in Millions | Feb. 28, 2019 | Mar. 01, 2018 |
Prepaid Expenses and Other Current Assets [Member] | ||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||
Deferred product costs | $ 6.2 | $ 5.4 |
Other Assets [Member] | ||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||
Deferred product costs | $ 8.8 | $ 6 |
ACQUISITIONS (Narrative) (Detai
ACQUISITIONS (Narrative) (Details) £ in Millions | Apr. 12, 2019USD ($) | Mar. 19, 2019USD ($) | Feb. 25, 2019USD ($) | Feb. 25, 2019GBP (£) | Feb. 28, 2019USD ($) | Feb. 28, 2019USD ($) | Feb. 28, 2017USD ($) |
Business Acquisition [Line Items] | |||||||
Acquisition related costs | $ 935,000 | $ 4,513,000 | |||||
Purchase price, net of cash on hand | 13,031,000 | $ 116,982,000 | |||||
General and Administrative Expenses [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition related costs | 900,000 | ||||||
Tracker Network (UK) Limited [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price | $ 13,000,000 | £ 10 | 13,097,000 | ||||
Purchase price, net of cash on hand | $ 13,031,000 | ||||||
Car Track, S.A. de C.V [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price, net of cash on hand | $ 13,000,000 | $ 13,000,000 | $ 1,700,000 | ||||
Percentage of shares purchase in business combination | 87.50% | 87.50% | 87.50% | 12.50% | 12.50% | ||
Synovia Solutions (“Synovia”) [Member] | Subsequent Event [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price | $ 50,000,000 | ||||||
Purchase price, net of cash on hand | $ 50,000,000 |
ACQUISITIONS (Summary of Prelim
ACQUISITIONS (Summary of Preliminary Purchase Price Allocation) (Details) $ in Thousands, £ in Millions | Feb. 25, 2019USD ($) | Feb. 25, 2019GBP (£) | Feb. 28, 2019USD ($) | Feb. 28, 2017USD ($) | Feb. 28, 2018USD ($) |
Business Acquisition [Line Items] | |||||
Net cash paid | $ 13,031 | $ 116,982 | |||
Fair value of net assets and liabilities assumed: | |||||
Goodwill | 80,805 | $ 72,980 | $ 72,980 | ||
Tracker Network (UK) Limited [Member] | |||||
Business Acquisition [Line Items] | |||||
Purchase price | $ 13,000 | £ 10 | 13,097 | ||
Less cash acquired, net of debt assumed | (66) | ||||
Net cash paid | 13,031 | ||||
Less provisional amount of working capital claim against escrowed consideration | (840) | ||||
Net consideration | 12,191 | ||||
Fair value of net assets and liabilities assumed: | |||||
Current assets other than cash | 3,549 | ||||
Property and equipment | 1,835 | ||||
Other non-current assets | 104 | ||||
Current liabilities | (3,030) | ||||
Deferred revenue, current | (1,976) | ||||
Deferred revenue, non-current | (1,186) | ||||
Deferred tax liability, non-current | (963) | ||||
Other non-current liabilities | (201) | ||||
Total fair value of net assets acquired | 4,670 | ||||
Goodwill | 7,521 | ||||
Tracker Network (UK) Limited [Member] | Dealer Relationships [Member] | |||||
Fair value of net assets and liabilities assumed: | |||||
Finite-lived intangible assets | 2,354 | ||||
Tracker Network (UK) Limited [Member] | Trade Names [Member] | |||||
Fair value of net assets and liabilities assumed: | |||||
Finite-lived intangible assets | 2,354 | ||||
Tracker Network (UK) Limited [Member] | Developed Technology [Member] | |||||
Fair value of net assets and liabilities assumed: | |||||
Finite-lived intangible assets | $ 1,830 |
CONCENTRATION OF CUSTOMERS AN_3
CONCENTRATION OF CUSTOMERS AND SUPPLIERS - Schedule of Significant Customers and Significant Suppliers Concentration Risk Percentage (Details) | 12 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 | |
Revenues [Member] | Customer Concentration Risk [Member] | Customer A [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 15.00% | 12.00% | 8.00% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer A [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 14.00% | 15.00% | 12.00% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer B [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 3.00% | 13.00% | 5.00% |
Inventory Purchases [Member] | Supplier Concentration Risk [Member] | Supplier A [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 31.00% | 33.00% | 34.00% |
Inventory Purchases [Member] | Supplier Concentration Risk [Member] | Supplier B [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 20.00% | 16.00% | 14.00% |
Inventory Purchases [Member] | Supplier Concentration Risk [Member] | Supplier C [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 6.00% | 9.00% | 11.00% |
Accounts Payable [Member] | Supplier Concentration Risk [Member] | Supplier A [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 30.00% | 40.00% | 33.00% |
Accounts Payable [Member] | Supplier Concentration Risk [Member] | Supplier B [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 18.00% | 16.00% | 18.00% |
CASH, CASH EQUIVALENTS AND IN_3
CASH, CASH EQUIVALENTS AND INVESTMENTS (Details) - USD ($) $ in Thousands | Feb. 28, 2019 | Feb. 28, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cost | $ 280,333 | $ 160,602 | |
Unrealized Gains (Losses) | 315 | 1,351 | |
Fair Value | 280,648 | 161,953 | |
Cash and Cash Equivalents [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 256,500 | 132,603 | |
Short Term Marketable Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 17,512 | 23,400 | |
Other Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 6,636 | 5,950 | |
Cash [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cost | 26,084 | 51,529 | |
Unrealized Gains (Losses) | |||
Fair Value | 26,084 | 51,529 | |
Cash [Member] | Cash and Cash Equivalents [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 26,084 | 51,529 | |
Cash [Member] | Short Term Marketable Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | |||
Cash [Member] | Other Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | |||
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cost | 154,428 | 9,034 | |
Unrealized Gains (Losses) | |||
Fair Value | 154,428 | 9,034 | |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | Cash and Cash Equivalents [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 154,428 | 9,034 | |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | Short Term Marketable Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | |||
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | Other Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | |||
Mutual Fund [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cost | [1] | 6,023 | 4,920 |
Unrealized Gains (Losses) | [1] | 390 | 721 |
Fair Value | [1] | 6,413 | 5,641 |
Mutual Fund [Member] | Fair Value, Inputs, Level 1 [Member] | Cash and Cash Equivalents [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | [1] | ||
Mutual Fund [Member] | Fair Value, Inputs, Level 1 [Member] | Short Term Marketable Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | [1] | ||
Mutual Fund [Member] | Fair Value, Inputs, Level 1 [Member] | Other Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | [1] | 6,413 | 5,641 |
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cost | 296 | 2,175 | |
Unrealized Gains (Losses) | (73) | 643 | |
Fair Value | 223 | 2,818 | |
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Cash and Cash Equivalents [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | |||
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Short Term Marketable Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 2,509 | ||
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Other Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 223 | 309 | |
Repurchase Agreements [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cost | 72,000 | 57,500 | |
Unrealized Gains (Losses) | |||
Fair Value | 72,000 | 57,500 | |
Repurchase Agreements [Member] | Fair Value, Inputs, Level 2 [Member] | Cash and Cash Equivalents [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 72,000 | 57,500 | |
Repurchase Agreements [Member] | Fair Value, Inputs, Level 2 [Member] | Short Term Marketable Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | |||
Repurchase Agreements [Member] | Fair Value, Inputs, Level 2 [Member] | Other Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | |||
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cost | 21,502 | 35,444 | |
Unrealized Gains (Losses) | (2) | (13) | |
Fair Value | 21,500 | 35,431 | |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Cash and Cash Equivalents [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 3,988 | 14,540 | |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Short Term Marketable Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 17,512 | $ 20,891 | |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Other Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | |||
[1] | Amounts represent various equities, bond and money market mutual funds held in a “Rabbi Trust” and are restricted for payment obligations to non-qualified deferred compensation plan participants. See Note 9 for discussion of deferred compensation plan. |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands | Feb. 28, 2019 | Feb. 28, 2018 |
Receivables [Abstract] | ||
Accounts receivable | $ 79,835 | $ 72,766 |
Allowance for doubtful accounts | (1,756) | (1,186) |
Accounts receivable, net | $ 78,079 | $ 71,580 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Feb. 28, 2019 | Feb. 28, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 14,141 | $ 18,629 |
Work in process | 72 | 567 |
Finished goods | 17,820 | 17,106 |
Inventories | $ 32,033 | $ 36,302 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | Feb. 28, 2019 | Feb. 28, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property, equipment and improvements, net of accumulated depreciation and amortization | $ 27,023 | $ 21,262 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and improvements, gross | 3,522 | 3,157 |
LoJack system components and law enforcement tracking units [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and improvements, gross | 20,326 | 20,558 |
Plant equipment and tooling [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and improvements, gross | 13,078 | 16,842 |
Office equipment, computers and furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and improvements, gross | 11,553 | 14,206 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and improvements, gross | 31,349 | 31,427 |
Property and Equipment, Excluding Fixed Assets Not Yet In Service [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and improvements, gross | 79,828 | 86,190 |
Less accumulated depreciation and amortization | (58,641) | (69,585) |
Property, equipment and improvements, net of accumulated depreciation and amortization | 21,187 | 16,605 |
Fixed Assets Not Yet in Service [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and improvements, gross | $ 5,836 | $ 4,657 |
PROPERTY AND EQUIPMENT (Narrati
PROPERTY AND EQUIPMENT (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $ 8,580 | $ 7,968 | $ 8,408 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Schedule of Goodwill) (Details) $ in Thousands | 12 Months Ended | |
Feb. 28, 2019USD ($) | ||
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Balance at beginning of period | $ 72,980 | |
Acquisitions (Note 2) | 7,521 | |
Other | 304 | [1] |
Balance at end of period | $ 80,805 | |
[1] | Amounts represent certain immaterial adjustments related to the LoJack acquisition. |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS (Schedule of Other Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross, Beginning balance | $ 100,292 | ||
Additions | 6,652 | ||
Other | (507) | ||
Gross, Ending balance | 106,437 | $ 100,292 | |
Accumulated Amortization, Beginning balance | 47,836 | ||
Expense | 11,436 | 14,989 | $ 15,061 |
Accumulated Amortization, Ending balance | 59,272 | 47,836 | |
Net beginning | 52,456 | ||
Net ending | $ 47,165 | 52,456 | |
Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 2 years | ||
Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 10 years | ||
Developed Technology Rights [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross, Beginning balance | $ 22,280 | ||
Additions | 1,830 | ||
Other | (507) | ||
Gross, Ending balance | 23,603 | 22,280 | |
Accumulated Amortization, Beginning balance | 14,288 | ||
Expense | 3,965 | ||
Accumulated Amortization, Ending balance | 18,253 | 14,288 | |
Net beginning | 7,992 | ||
Net ending | $ 5,350 | 7,992 | |
Developed Technology Rights [Member] | Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 2 years | ||
Developed Technology Rights [Member] | Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 7 years | ||
Trade Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 10 years | ||
Gross, Beginning balance | $ 37,729 | ||
Additions | 2,362 | ||
Other | 0 | ||
Gross, Ending balance | 40,091 | 37,729 | |
Accumulated Amortization, Beginning balance | 9,087 | ||
Expense | 3,557 | ||
Accumulated Amortization, Ending balance | 12,644 | 9,087 | |
Net beginning | 28,642 | ||
Net ending | 27,447 | 28,642 | |
Customer Lists [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross, Beginning balance | 22,950 | ||
Additions | 2,354 | ||
Other | 0 | ||
Gross, Ending balance | 25,304 | 22,950 | |
Accumulated Amortization, Beginning balance | 19,623 | ||
Expense | 1,684 | ||
Accumulated Amortization, Ending balance | 21,307 | 19,623 | |
Net beginning | 3,327 | ||
Net ending | $ 3,997 | 3,327 | |
Customer Lists [Member] | Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 4 years | ||
Customer Lists [Member] | Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 7 years | ||
Dealer and Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross, Beginning balance | $ 16,850 | ||
Additions | 0 | ||
Other | 0 | ||
Gross, Ending balance | 16,850 | 16,850 | |
Accumulated Amortization, Beginning balance | 4,714 | ||
Expense | 2,194 | ||
Accumulated Amortization, Ending balance | 6,908 | 4,714 | |
Net beginning | 12,136 | ||
Net ending | $ 9,942 | 12,136 | |
Dealer and Customer Relationships [Member] | Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 7 years | ||
Dealer and Customer Relationships [Member] | Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 12 years | ||
Patents [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 5 years | ||
Gross, Beginning balance | $ 483 | ||
Additions | 106 | ||
Other | 0 | ||
Gross, Ending balance | 589 | 483 | |
Accumulated Amortization, Beginning balance | 124 | ||
Expense | 36 | ||
Accumulated Amortization, Ending balance | 160 | 124 | |
Net beginning | 359 | ||
Net ending | $ 429 | $ 359 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Impairment of intangible assets | $ 0 | ||
Expense | $ 11,436,000 | $ 14,989,000 | $ 15,061,000 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS (Schedule of Future Amortization Expense) (Details) - USD ($) $ in Thousands | Feb. 28, 2019 | Feb. 28, 2018 |
Fiscal Year | ||
2020 | $ 10,315 | |
2021 | 8,492 | |
2022 | 6,859 | |
2023 | 6,638 | |
2024 | 4,747 | |
Thereafter | 10,114 | |
Net | $ 47,165 | $ 52,456 |
OTHER ASSETS (Schedule of Other
OTHER ASSETS (Schedule of Other Assets) (Details) - USD ($) $ in Thousands | Feb. 28, 2019 | Feb. 28, 2018 | ||
Other Assets Non Current [Line Items] | ||||
Deferred compensation plan assets | $ 6,413 | $ 5,641 | ||
Investment in international licensees | 2,263 | 2,349 | ||
Deferred product cost | 10,094 | 3,523 | ||
Other | 1,090 | 828 | ||
Total | 22,510 | [1] | 18,829 | [2] |
ThinxNet GmbH [Member] | ||||
Other Assets Non Current [Line Items] | ||||
Equity investment in and loan to equity investee | $ 2,650 | 2,674 | ||
Smart Driver Club Limited [Member] | ||||
Other Assets Non Current [Line Items] | ||||
Equity investment in and loan to equity investee | $ 3,814 | |||
[1] | Deferred product costs included in Prepaid expenses and other current assets and Other assets amounted to $6.2 million and $8.8 million, respectively, as of February 28, 2019. | |||
[2] | Deferred product costs included in Prepaid expenses and other current assets and Other assets amounted to $5.4 million and $6.0 million, respectively, as of March 1, 2018. |
OTHER ASSETS (Details)
OTHER ASSETS (Details) $ in Thousands | Mar. 26, 2019GBP (£) | Aug. 31, 2018USD ($) | Aug. 24, 2017USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2015GBP (£) | Feb. 28, 2019USD ($) | Feb. 28, 2018USD ($) | Feb. 28, 2017USD ($) | Feb. 28, 2019GBP (£) |
Schedule of Equity Method Investments [Line Items] | |||||||||
Ownership in cost method investments | $ 2,263 | $ 2,349 | |||||||
Investment in equity method investment | 2,631 | 2,281 | $ 2,636 | ||||||
Impairment charge | $ 5,000 | ||||||||
ThinxNet [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Ownership in cost method investments | $ 1,400 | ||||||||
Unsecured convertible note receivable | $ 1,270 | ||||||||
Interest rate on notes receivable | 6.00% | ||||||||
Notes receivables term | 12 months | ||||||||
Accounts receivable due converted into additional ownership interest in an in-kind exchange of assets | $ 300,000 | ||||||||
Impairment charges on other assets | $ 326,000 | ||||||||
Mexican licensee [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Ownership percentage of cost-method investments | 12.50% | 12.50% | |||||||
Ownership in cost method investments | $ 1,700 | ||||||||
Dividend Income | $ 300 | 300 | 200 | ||||||
Smart Driver Club Limited [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Investment in equity method investment | $ 2,200 | ||||||||
Ownership percentage of equity-method investments | 49.00% | 49.00% | |||||||
Equity in net loss of affiliate | $ 1,800 | $ 1,400 | $ 1,300 | ||||||
Debt instrument, face amount | $ 7,600 | ||||||||
Interest rate on advance | 8.00% | ||||||||
Impairment charge | $ 5,000 | ||||||||
Smart Driver Club Limited [Member] | GBP [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Investment in equity method investment | £ | £ 1,400,000 | ||||||||
Debt instrument, face amount | £ | £ 5,700,000 | ||||||||
Smart Driver Club Limited [Member] | GBP [Member] | Subsequent Event [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Additional borrowed debt | £ | £ 400,000 |
FINANCING ARRANGEMENTS (Details
FINANCING ARRANGEMENTS (Details) | Jul. 28, 2018USD ($) | Jul. 20, 2018USD ($) | Mar. 30, 2018USD ($) | May 28, 2015USD ($) | Apr. 30, 2015$ / shares | Jul. 31, 2018USD ($)shares | May 31, 2016USD ($)shares | May 31, 2015USD ($)shares | Aug. 31, 2018USD ($) | Feb. 28, 2019USD ($)Note | Feb. 28, 2017USD ($) | Feb. 28, 2018USD ($) |
Debt Instrument [Line Items] | ||||||||||||
Loss on extinguishment of debt | $ 2,000,000 | $ 2,033,000 | ||||||||||
Repurchase of common stock | $ 49,000,000 | $ 25,000,000 | ||||||||||
Convertible Senior Unsecured Notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Number of outstanding convertible senior unsecured notes | Note | 2 | |||||||||||
2020 Convertible Notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount | $ 122,527,000 | $ 172,500,000 | ||||||||||
Debt instrument, face amount | $ 172,500,000 | $ 172,500,000 | ||||||||||
Interest rate (as a percent) | 1.625% | |||||||||||
Maturity date | May 15, 2020 | |||||||||||
Minimum percentage of aggregate principal by holders | 25.00% | |||||||||||
Percentage of repurchase price of the principal amount | 100.00% | |||||||||||
Indebtedness for excess money borrowed | $ 10,000,000 | |||||||||||
Indebtedness, entry of judgments for payment | $ 10,000,000 | |||||||||||
Debt instrument, covenant description | The 2020 Indenture contains customary terms and conditions, including that upon certain events of default occurring and continuing, either the Trustee or the holders of at least 25% in aggregate principal amount of the then outstanding Notes, by notice to us and the Trustee, may declare 100% of the principal amount of, and accrued and unpaid interest, if any, on all the 2020 Convertible Notes then outstanding to be due and payable immediately. Such events of default include, without limitation, the default by us or any of our subsidiaries with respect to indebtedness for borrowed money in excess of $10 million and the entry of judgments for the payment of $10 million or more against us or any of our subsidiaries which are not paid, discharged or stayed within 60 days. | |||||||||||
Maximum number of shares of common stock that could be issued, following certain corporate events that occur prior to maturity | shares | 2,500,000 | |||||||||||
Number of common stock with hedge transactions | shares | 6,250,000 | |||||||||||
Payments for notes hedges | $ 31,300,000 | |||||||||||
Purchase of note hedges, net of tax | $ 19,300,000 | |||||||||||
Warrants will be exercisable in equal installments | 80 days | |||||||||||
Proceeds from issuance of warrants | $ 16,000,000 | |||||||||||
Aggregate amount of notes repurchase | $ 50,000,000 | |||||||||||
Repurchases of notes including accrued interest | 53,800,000 | |||||||||||
Allocated notes repurchase price | 53,700,000 | |||||||||||
Notes repurchase price, fair value of liability | 47,600,000 | |||||||||||
Notes repurchase price, equity component | 6,100,000 | |||||||||||
Carrying value of repurchased notes | 45,600,000 | |||||||||||
Loss on extinguishment of debt | $ 2,000,000 | |||||||||||
Issuance costs | $ 4,300,000 | 817,000 | $ 2,058,000 | |||||||||
Conversion rate of shares of common stock | 36.2398 | |||||||||||
2020 Convertible Notes [Member] | Discount Rate [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Market interest rate used to discount nonconvertible debt | 0.0436 | |||||||||||
2020 Convertible Notes [Member] | Warrant [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Strike price of underlie convertible notes (in dollars per share) | $ / shares | $ 39.42 | |||||||||||
Percentage of premium on sale price of common stock | 100.00% | |||||||||||
Share price (in dollars per share) | $ / shares | $ 19.71 | |||||||||||
2020 Convertible Notes [Member] | Additional Paid-in Capital [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Proceeds from unwind of the note hedge and warrants | $ 3,100,000 | |||||||||||
2020 Convertible Notes [Member] | Maximum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, default judgment payment period | 60 days | |||||||||||
2025 Convertible Notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount | $ 230,000,000 | |||||||||||
Debt instrument, face amount | $ 230,000,000 | |||||||||||
Interest rate (as a percent) | 2.00% | |||||||||||
Maturity date | Aug. 1, 2025 | |||||||||||
Indebtedness for excess money borrowed | $ 10,000,000 | |||||||||||
Indebtedness, entry of judgments for payment | 15,000,000 | |||||||||||
Debt instrument, covenant description | The 2025 Indenture contains customary terms and conditions, including that upon certain events of default occurring and continuing, either the Trustee, by notice to us, or the holders of at least 25% in aggregate principal amount of the then outstanding Notes, by notice to us and the Trustee, may declare the principal amount of, and all accrued and unpaid interest on, all of the 2025 Convertible Notes then outstanding to become due and payable immediately. Such events of default include, without limitation, the default by us or any of our subsidiaries with respect to indebtedness for borrowed money in excess of $10 million and the entry of judgments for the payment of $15 million or more against us or any of our subsidiaries, which are not paid, discharged or stayed within 60 days. | |||||||||||
Number of common stock with hedge transactions | shares | 7,480,000 | |||||||||||
Payments for notes hedges | $ 21,200,000 | |||||||||||
Purchase of note hedges, net of tax | 21,200,000 | $ 15,900,000 | ||||||||||
Proceeds from sale of notes | 222,700,000 | |||||||||||
Issuance costs | $ 7,300,000 | 7,300,000 | $ 4,779,000 | |||||||||
Amount utilized from net proceeds of offering | 90,000,000 | |||||||||||
Repurchase of common stock | $ 15,000,000 | |||||||||||
Debt instrument, redemption, description | We may redeem the Notes at our option at any time on or after August 6, 2022 at a cash redemption price equal to the principal amount plus accrued interest, but only if the last reported sale price per share of our stock exceeds 130% of the conversion price on (i) each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the trading day immediately before the date we send the related redemption notice; and (ii) the trading day immediately before the date we send such notice. | |||||||||||
Conversion rate of shares of common stock | 32.5256 | 41.3875 | ||||||||||
2025 Convertible Notes [Member] | Maximum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, default judgment payment period | 60 days | |||||||||||
Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum borrowing capacity | $ 50,000,000 | |||||||||||
Maturity date | Mar. 30, 2020 | |||||||||||
Borrowings outstanding | $ 0 |
FINANCING ARRANGEMENTS (Schedul
FINANCING ARRANGEMENTS (Schedule of Balances Attributable to Notes) (Details) - USD ($) $ in Thousands | Feb. 28, 2019 | Jul. 28, 2018 | Jul. 20, 2018 | Feb. 28, 2018 | May 28, 2015 |
Debt Instrument [Line Items] | |||||
Net carrying amount of the Convertible Notes | $ 275,905 | $ 154,299 | |||
2020 Convertible Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal | 122,527 | 172,500 | |||
Less: Unamortized debt discount | (6,461) | (16,143) | |||
Unamortized debt issuance costs | (817) | (2,058) | $ (4,300) | ||
Net carrying amount of the Convertible Notes | 115,249 | $ 154,299 | |||
Fair value of the convertible notes | $ 47,600 | ||||
2020 Convertible Notes [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Debt Instrument [Line Items] | |||||
Fair value of the convertible notes | 118,680 | ||||
2025 Convertible Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal | 230,000 | ||||
Less: Unamortized debt discount | (64,565) | ||||
Unamortized debt issuance costs | (4,779) | $ (7,300) | $ (7,300) | ||
Net carrying amount of the Convertible Notes | 160,656 | ||||
2025 Convertible Notes [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Debt Instrument [Line Items] | |||||
Fair value of the convertible notes | $ 184,334 |
FINANCING ARRANGEMENTS (Summary
FINANCING ARRANGEMENTS (Summary of Liability and Equity Components of Notes, Issuance Costs and Applicable Assumptions Used for Calculation) (Details) $ / shares in Units, $ in Thousands | Jul. 28, 2018USD ($)$ / shares | May 28, 2015USD ($)$ / shares | Jul. 31, 2018 | Feb. 28, 2019USD ($) | Jul. 20, 2018USD ($) | Feb. 28, 2018USD ($) |
2020 Convertible Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Initial conversion rate (shares per $1,000 principal amount) | 36.2398 | |||||
Initial conversion price per share | $ / shares | $ 27.5940 | |||||
Fair value of liability component upon issuance | $ 138,900 | |||||
Discount Rate | 0.0620 | |||||
Debt Instrument, Measurement Input [Extensible List] | us-gaap:MeasurementInputDiscountRateMember | |||||
Fair value measurement level | Level 3 | |||||
Fair value of embedded equity component upon issuance | $ 33,600 | |||||
Deferred tax asset effect | 16,000 | |||||
Total issuance cost | 4,300 | $ 817 | $ 2,058 | |||
Equity component | 1,000 | |||||
Deferred tax asset effect | $ 400 | |||||
2025 Convertible Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Initial conversion rate (shares per $1,000 principal amount) | 32.5256 | 41.3875 | ||||
Initial conversion price per share | $ / shares | $ 30.7450 | |||||
Fair value of liability component upon issuance | $ 160,800 | |||||
Discount Rate | 0.0756 | |||||
Debt Instrument, Measurement Input [Extensible List] | us-gaap:MeasurementInputDiscountRateMember | |||||
Fair value measurement level | Level 3 | |||||
Fair value of embedded equity component upon issuance | $ 69,200 | |||||
Deferred tax asset effect | 17,300 | |||||
Total issuance cost | 7,300 | $ 4,779 | $ 7,300 | |||
Equity component | 2,200 | |||||
Deferred tax asset effect | $ 500 |
FINANCING ARRANGEMENTS (Summa_2
FINANCING ARRANGEMENTS (Summary of Liability and Equity Components of Notes, Issuance Costs and Applicable Assumptions Used for Calculation) (Parenthetical) (Details) - USD ($) | Jul. 28, 2018 | May 28, 2015 |
2020 Convertible Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument conversion, principal amount of each note converted | $ 1,000 | |
2025 Convertible Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument conversion, principal amount of each note converted | $ 1,000 |
RESTRUCTURING CHARGES (Narrativ
RESTRUCTURING CHARGES (Narrative) (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | Feb. 28, 2019 |
Restructuring Cost And Reserve [Line Items] | ||
Restructuring charges | $ 8,015 | |
Severance and employee related costs | 4,300 | |
Restructuring charges | 3,700 | |
Canton, Massachusetts [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring charges | $ 3,300 | |
Scenario, Forecast [Member] | Oxnard Facility [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring charge | $ 1,000 |
RESTRUCTURING CHARGES - Summary
RESTRUCTURING CHARGES - Summary of Activity Resulting from Implementation of Restructuring Plan within Other Current and Non-current Liabilities (Details) $ in Thousands | 12 Months Ended |
Feb. 28, 2019USD ($) | |
Restructuring Cost And Reserve [Line Items] | |
Charges | $ 8,015 |
(Payments) | (2,259) |
Restructuring liabilities as of February 28, 2019 | 5,756 |
Personnel [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Charges | 4,275 |
(Payments) | (1,496) |
Restructuring liabilities as of February 28, 2019 | 2,779 |
Facilities [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Charges | 3,740 |
(Payments) | (763) |
Restructuring liabilities as of February 28, 2019 | $ 2,977 |
INCOME TAXES (Income Before Inc
INCOME TAXES (Income Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 21,367 | $ 13,898 | $ (11,910) |
Foreign | 2,488 | 14,811 | 3,727 |
Income (loss) before income taxes and impairment loss and equity in net loss of affiliate | $ 23,855 | $ 28,709 | $ (8,183) |
INCOME TAXES (Components of Inc
INCOME TAXES (Components of Income Tax Benefit (Provision)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 | |
Current: | |||
Federal | $ 404 | $ (412) | |
State | (256) | (694) | $ (137) |
Foreign | (62) | (2,204) | (1,035) |
Total current | 86 | (3,310) | (1,172) |
Deferred: | |||
Federal | (2,015) | (6,156) | 1,712 |
State | (1,183) | (1,458) | 539 |
Foreign | 4,442 | 243 | 484 |
Total deferred | 1,244 | (7,371) | 2,735 |
Income tax benefit (provision) | $ 1,330 | $ (10,681) | $ 1,563 |
INCOME TAXES (Reconciliation of
INCOME TAXES (Reconciliation of Income Tax Benefit (Provision)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 | |
Income Tax Disclosure [Abstract] | |||
Income tax benefit (provision) at U.S. statutory federal rate | $ (5,010) | $ (9,400) | $ 2,864 |
State income tax provision, net of federal income tax effect | (1,300) | (574) | 182 |
Foreign taxes | (31) | 2,923 | 68 |
Impact of tax reform | (8,955) | ||
Valuation allowance reductions (increases) | 5,915 | 3,046 | (1,391) |
Research and development tax credits | 1,658 | 1,034 | 806 |
Tax benefits on vested and exercised equity awards | 758 | 937 | |
Other, net | (660) | 308 | (966) |
Income tax benefit (provision) | $ 1,330 | $ (10,681) | $ 1,563 |
INCOME TAXES (Deferred Tax Asse
INCOME TAXES (Deferred Tax Assets) (Details) - USD ($) $ in Thousands | Feb. 28, 2019 | Feb. 28, 2018 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforwards | $ 19,269 | $ 22,013 |
Depreciation, amortization and impairments | (11,945) | (11,112) |
Research and development credits | 19,189 | 17,432 |
Stock-based compensation | 2,783 | 2,376 |
Other tax credits | 1,018 | 2,015 |
Inventory reserve | 624 | 292 |
Warranty reserve | 313 | 429 |
Payroll and employee benefit accruals | 2,220 | 1,941 |
Allowance for doubtful accounts | 454 | 354 |
Other accrued liabilities | 6,208 | 8,975 |
Convertible debt | (10,822) | (194) |
Other, net | 3,281 | 3,904 |
Gross deferred tax assets | 32,592 | 48,425 |
Valuation allowance | (10,929) | (16,844) |
Net deferred tax assets | 21,663 | 31,581 |
Reported as: | ||
Deferred tax assets | 22,626 | 31,581 |
Deferred tax liabilities | (963) | |
Net deferred tax assets | $ 21,663 | $ 31,581 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) | 10 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 | |
Operating Loss Carryforwards [Line Items] | ||||
Valuation allowance percentage | 100.00% | |||
Change in valuation allowance | $ 5,900,000 | |||
Gross excess tax deductions from share-based payment arrangements | 2,900,000 | $ 2,600,000 | $ 0 | |
Unrecognized tax benefit from uncertain tax position | 3,200,000 | 1,000,000 | 1,000,000 | |
Accrued interest and/or penalties | $ 0 | |||
Federal corporate tax rate | 35.00% | 21.00% | ||
Tax Cuts and Jobs Act, Income tax expense | 6,600,000 | |||
One-time transition tax liability, increase in income tax expense | 2,400,000 | |||
Income tax expense associated with transition tax | $ 0 | |||
Deferred income taxes recognized | 0 | |||
Income tax expense | (1,330,000) | 10,681,000 | $ (1,563,000) | |
Minimum [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Income tax benefit attributable to reduction in unrecognized tax benefits | 600,000 | |||
Domestic Tax Authority [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | 30,100,000 | |||
Domestic Tax Authority [Member] | Research Tax Credit Carryforward [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax credit carryforwards | 9,100,000 | |||
State and Local Jurisdiction [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | 60,800,000 | |||
Income tax expense | 300,000 | |||
State and Local Jurisdiction [Member] | Research Tax Credit Carryforward [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax credit carryforwards | 8,900,000 | |||
Foreign Tax Authority [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | 44,700 | |||
Unexpire operating loss carryforwards | $ 18,300 | |||
Italy [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Foreign deferred tax assets | 7,400,000 | |||
Canada [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Foreign deferred tax assets | $ 7,600,000 |
INCOME TAXES (Summary of Unreco
INCOME TAXES (Summary of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 | |
Income Tax Disclosure [Abstract] | |||
Gross amounts of unrecognized tax benefits at beginning of the period | $ 1,029 | $ 1,029 | $ 1,029 |
Increases related to prior period tax positions | 2,241 | 0 | 0 |
Decreases related to prior period tax positions | (69) | 0 | 0 |
Gross amounts of unrecognized tax benefits at end of the period | $ 3,201 | $ 1,029 | $ 1,029 |
STOCKHOLDERS' EQUITY (Schedule
STOCKHOLDERS' EQUITY (Schedule of Repurchase of Common Stock Under Share Repurchase Program) (Details) - USD ($) | 12 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2017 | |
Equity [Abstract] | ||
Total Number of Shares Purchased | 2,496,422 | 1,760,563 |
Average Price Paid per Share | $ 19.63 | $ 14.20 |
Total Purchased | $ 49,000,000 | $ 25,000,000 |
Dollar Value that may be Purchased Under the Plans | $ 10,000,000 |
STOCKHOLDERS' EQUITY (Narrative
STOCKHOLDERS' EQUITY (Narrative) (Details) - USD ($) $ in Millions | Jun. 07, 2018 | Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Issuance of common stock under ESPP | 1,750,000 | |||
Shares available for grant | 1,705,685 | |||
Unrecognized share-based compensation cost | $ 25.5 | |||
Unrecognized compensation cost, recognition period | 2 years 9 months 18 days | |||
Aggregate fair value of stock options exercised and vested restricted stock-based awards | $ 8.6 | $ 6.9 | $ 6.3 | |
Excess tax deductions from equity awards | $ 2.9 | $ 2.6 | $ 0 | |
Employee Stock Option [Member] | 2004 Incentive Stock Plan [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiration term | 10 years | |||
Vesting period | 4 years |
STOCKHOLDERS' EQUITY (Summary o
STOCKHOLDERS' EQUITY (Summary of Stock Option Activity) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | |
Number of Options | ||||
Outstanding, beginning balance | 980 | 955 | 860 | |
Granted | 140 | 165 | 227 | |
Exercised | (66) | (140) | (125) | |
Forfeited or expired | (7) | |||
Outstanding, ending balance | 1,054 | 980 | 955 | 860 |
Exercisable | 698 | 590 | 624 | |
Weighted Average Exercise Price | ||||
Outstanding, beginning balance | $ 11.29 | $ 8.60 | $ 6.96 | |
Granted | 23.08 | 19.31 | 14.49 | |
Exercised | 1.87 | 2.36 | 7.67 | |
Forfeited or expired | 15.70 | |||
Outstanding, ending balance | 13.44 | 11.29 | 8.60 | $ 6.96 |
Exercisable | $ 10.22 | $ 7.54 | $ 5.03 | |
Weighted average remaining contractual life, Outstanding | 5 years 9 months 18 days | 5 years 10 months 24 days | 5 years 6 months | 4 years 8 months 12 days |
Weighted average remaining contractual life, Exercisable | 4 years 4 months 24 days | 4 years 1 month 6 days | 5 years 6 months | |
Aggregate intrinsic value, Outstanding | $ 3,360 | |||
Aggregate intrinsic value, Exercisable | $ 3,360 | $ 9,349 | $ 7,046 | |
Weighted average grant date fair value of stock options granted during the year | $ 11.94 | $ 10.20 | $ 6.69 |
STOCKHOLDERS' EQUITY (Fair Valu
STOCKHOLDERS' EQUITY (Fair Value Assumptions) (Details) - Employee Stock Option [Member] | 12 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life (years) | 6 years | 6 years | |
Expected volatility, minimum | 36.00% | ||
Expected volatility, maximum | 43.00% | ||
Expected volatility | 46.00% | 48.00% | |
Risk-free interest rates, minimum | 2.50% | ||
Risk-free interest rates, maximum | 2.90% | ||
Risk-free interest rates | 2.00% | 1.30% | |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life (years) | 2 years | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life (years) | 6 years |
STOCKHOLDERS' EQUITY (Summary_2
STOCKHOLDERS' EQUITY (Summary of Outstanding Restricted Stock Shares, PSUs and RSUs Activity) (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 | |
Number of Restricted Shares, PSUs and RSUs | |||
Outstanding, beginning balance | 1,434 | 1,239 | 953 |
Granted | 787 | 770 | 766 |
Vested | (478) | (399) | (382) |
Forfeited | (236) | (176) | (98) |
Outstanding, ending balance | 1,507 | 1,434 | 1,239 |
Weighted Average Grant Date Fair Value | |||
Outstanding, beginning balance | $ 17.72 | $ 15.94 | $ 16.66 |
Granted | 22.05 | 19.55 | 14.63 |
Vested | 17.32 | 15.92 | 15.18 |
Forfeited | 19.59 | 17.34 | 15.64 |
Outstanding, ending balance | $ 19.77 | $ 17.72 | $ 15.94 |
Vested, Shares Retained to Cover Statutory Minimum Withholding Taxes | 162 | 133 | 122 |
STOCKHOLDERS' EQUITY (Schedul_2
STOCKHOLDERS' EQUITY (Schedule of Stock-based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $ 11,029 | $ 9,298 | $ 7,833 |
Cost of Revenues [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 723 | 653 | 374 |
Research and Development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 2,061 | 1,471 | 1,033 |
Selling and Marketing [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 2,863 | 2,314 | 1,655 |
General and Administrative Expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $ 5,382 | $ 4,860 | $ 4,771 |
EARNINGS (LOSS) PER SHARE (Deta
EARNINGS (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Net income (loss) | $ 11,263 | $ (522) | $ (854) | $ 8,511 | $ (4,767) | $ 11,806 | $ 12,232 | $ (2,654) | $ 18,398 | $ 16,617 | $ (7,904) |
Basic weighted average number of common shares outstanding | 34,589 | 35,250 | 35,917 | ||||||||
Effect of stock options and restricted stock units computed on treasury stock method | 705 | 889 | |||||||||
Diluted weighted average number of common shares outstanding | 35,294 | 36,139 | 35,917 | ||||||||
Earnings (loss) per share: | |||||||||||
Basic | $ 0.53 | $ 0.47 | $ (0.22) | ||||||||
Diluted | $ 0.33 | $ (0.02) | $ (0.02) | $ 0.23 | $ (0.13) | $ 0.33 | $ 0.34 | $ (0.08) | $ 0.52 | $ 0.46 | $ (0.22) |
EARNINGS (LOSS) PER SHARE (Narr
EARNINGS (LOSS) PER SHARE (Narrative) (Details) - shares | 12 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Diluted earnings per share for the conversion value of the notes | 0 | 0 | 0 |
Stock Options [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive securities | 1,900,000 | 200,000 | 1,000,000 |
Restricted Stock Units (RSUs) [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive securities | 1,900,000 | 200,000 | 1,200,000 |
COMPREHENSIVE INCOME (LOSS) (Sc
COMPREHENSIVE INCOME (LOSS) (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balances | $ (199) | $ (541) | $ (226) |
Other comprehensive income (loss), net of tax | (462) | 342 | (315) |
Balances | (661) | (199) | (541) |
Cumulative Foreign Currency Translation [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balances | (628) | (506) | (226) |
Other comprehensive income (loss), net of tax | (33) | (122) | (280) |
Balances | (661) | (628) | (506) |
Unrealized Gains/Losses on Marketable Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balances | 429 | (35) | 0 |
Other comprehensive income (loss), net of tax | (429) | 464 | (35) |
Balances | $ 0 | $ 429 | $ (35) |
EMPLOYEE RETIREMENT PLAN (Detai
EMPLOYEE RETIREMENT PLAN (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Expense recorded related to matching contributions | $ 2.1 | $ 2 | $ 1.3 |
Defined Contribution Plan Threshold One [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Percent of employee contribution matched by the Company | 100.00% | ||
Percent of employee compensation contributed | 3.00% | ||
Defined Contribution Plan Threshold Two [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Percent of employee contribution matched by the Company | 50.00% | ||
Percent of employee compensation contributed | 2.00% |
OTHER FINANCIAL INFORMATION (Sc
OTHER FINANCIAL INFORMATION (Schedule of Other Current Liabilities) (Details) - USD ($) $ in Thousands | Feb. 28, 2019 | Feb. 28, 2018 |
Other Financial Information Schedule Of Other Current Liabilities Details [Abstract] | ||
Warranty reserves | $ 1,398 | $ 5,734 |
Litigation reserve (see Note 19) | 1,500 | 17,559 |
Accrued restructuring costs | 752 | |
Other | 6,972 | 8,395 |
Total other current liabilities | $ 10,622 | $ 31,688 |
OTHER FINANCIAL INFORMATION (_2
OTHER FINANCIAL INFORMATION (Schedule of Other Non-Current Liabilities) (Details) - USD ($) $ in Thousands | Feb. 28, 2019 | Feb. 28, 2018 | |
Other Financial Information [Abstract] | |||
Deferred compensation plan liability | $ 6,409 | $ 5,642 | |
Deferred revenue | 27,106 | 16,763 | |
Accrued restructuring costs | 2,175 | ||
Deferred tax liability | 963 | ||
Deferred rent | 365 | 200 | |
Other | 1,458 | 1,644 | |
Total other non-current liabilities | $ 38,476 | [1] | $ 24,249 |
[1] | The balances as of February 28, 2019 also included deferred revenue of TRACKER, which was acquired on February 25, 2019 (see Note 2). |
OTHER FINANCIAL INFORMATION (_3
OTHER FINANCIAL INFORMATION (Schedule of Interest Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 | |
Condensed Income Statements, Captions [Line Items] | |||
Total interest expense | $ 16,726 | $ 10,280 | $ 9,896 |
2020 Convertible Notes [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Stated interest | 2,308 | 2,806 | 2,803 |
Amortization of note discount | 5,769 | 6,627 | 6,232 |
Amortization of debt issue costs | 715 | 845 | 795 |
Interest expense on convertible notes | 8,792 | 10,278 | 9,830 |
2025 Convertible Notes [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Stated interest | 2,811 | ||
Amortization of note discount | 4,637 | ||
Amortization of debt issue costs | 343 | ||
Interest expense on convertible notes | 7,791 | ||
Other interest expense | 143 | 2 | 66 |
Total interest expense | $ 16,726 | $ 10,280 | $ 9,896 |
OTHER FINANCIAL INFORMATION (_4
OTHER FINANCIAL INFORMATION (Schedule of Interest Expense) (Parenthetical) (Details) | Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 |
2020 Convertible Notes [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Interest rate (as a percent) | 1.625% | 1.625% | 1.625% |
2025 Convertible Notes [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Interest rate (as a percent) | 2.00% | 2.00% | 2.00% |
OTHER FINANCIAL INFORMATION (_5
OTHER FINANCIAL INFORMATION (Schedule of Supplemental Cash Payments for Interest and Income Taxes and Non-cash Investing and Financing Activities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 | |
Cash payments for interest and income taxes: | |||
Interest expense paid | $ 5,057 | $ 2,844 | $ 2,852 |
Income tax paid | 964 | 3,498 | $ 2,259 |
Non-cash investing and financing activities: | |||
Accrued liability for capital expenditures | 881 | ||
ThinxNet GmbH [Member] | |||
Non-cash investing and financing activities: | |||
Equity investment in and loan to ThinxNet GmbH (see Note 9) | $ 300 | $ 2,674 |
OTHER FINANCIAL INFORMATION (_6
OTHER FINANCIAL INFORMATION (Schedule of Valuation and Qualifying Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 | |||||
Allowance for Doubtful Accounts [Member] | |||||||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||||||
Balance at beginning of year | $ 1,186 | $ 962 | $ 622 | ||||
Charged (credited) to costs and expenses | 1,230 | 685 | 541 | ||||
Deductions | (660) | (461) | (201) | ||||
Other | 0 | 0 | 0 | ||||
Balance at end of year | 1,756 | 1,186 | 962 | ||||
Warranty Reserves [Member] | |||||||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||||||
Balance at beginning of year | 5,734 | 6,518 | [1] | 1,892 | [1] | ||
Charged (credited) to costs and expenses | 1,126 | 1,331 | 1,305 | [1] | |||
Deductions | (5,462) | (2,115) | (2,562) | [1] | |||
Other | [1] | 5,883 | |||||
Balance at end of year | 1,398 | 5,734 | 6,518 | [1] | |||
Deferred Tax Assets Valuation Allowance [Member] | |||||||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||||||
Balance at beginning of year | 16,844 | [2] | 6,587 | [1],[2] | 1,618 | [1] | |
Charged (credited) to costs and expenses | 799 | 1,391 | [1] | ||||
Deductions | (6,714) | (4,835) | [2] | ||||
Other | 15,100 | 15,092 | [2] | 3,578 | [1] | ||
Balance at end of year | $ 10,929 | $ 16,844 | [2] | $ 6,587 | [1],[2] | ||
[1] | Amounts under “Other” represent the reserves and valuation allowance assumed in acquisition of LoJack. The warranty reserve is included in the Other Current Liabilities in the consolidated balance sheets. | ||||||
[2] | Amount under “Other” represents the valuation allowance previously netted against deferred tax assets of foreign net deferred tax assets not recorded on the balance sheet, which were disclosed narratively in the fiscal 2018 Form 10-K (see Note 12). Deferred tax assets and valuation allowances were grossed up by $15.1 million. |
OTHER FINANCIAL INFORMATION (_7
OTHER FINANCIAL INFORMATION (Schedule of Valuation and Qualifying Accounts) (Parenthetical) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 | |||
Deferred Tax Assets Valuation Allowance [Member] | |||||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||||
Deferred tax assets valuation allowance | $ 15,100 | $ 15,092 | [1] | $ 3,578 | [2] |
[1] | Amount under “Other” represents the valuation allowance previously netted against deferred tax assets of foreign net deferred tax assets not recorded on the balance sheet, which were disclosed narratively in the fiscal 2018 Form 10-K (see Note 12). Deferred tax assets and valuation allowances were grossed up by $15.1 million. | ||||
[2] | Amounts under “Other” represent the reserves and valuation allowance assumed in acquisition of LoJack. The warranty reserve is included in the Other Current Liabilities in the consolidated balance sheets. |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Summary of Future Payments of Operating Lease Commitments) (Details) $ in Thousands | Feb. 28, 2019USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2020 | $ 7,565 |
2021 | 6,386 |
2022 | 6,242 |
2023 | 6,199 |
2024 | 6,126 |
Thereafter | 7,659 |
Future payments of operating lease commitments | $ 40,177 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Rent expense | $ 9.7 | $ 6.9 | $ 7 |
LEGAL PROCEEDINGS (Legal Procee
LEGAL PROCEEDINGS (Legal Proceedings) (Details) - USD ($) $ in Millions | Dec. 06, 2018 | Jun. 09, 2017 | Feb. 28, 2019 | Feb. 28, 2018 | Nov. 30, 2018 |
Gain (Loss) Contingencies [Line Items] | |||||
Legal provision previously reserved | $ 19.1 | ||||
EVE Holdings Limited [Member] | |||||
Gain (Loss) Contingencies [Line Items] | |||||
Amount of damages sought by company in litigation matter | $ 46.6 | ||||
Proceeds from litigation settlement | $ 18.3 | $ 28.3 | |||
General and Administrative Expenses [Member] | EVE Holdings Limited [Member] | |||||
Gain (Loss) Contingencies [Line Items] | |||||
Accrued liability | $ 4 | ||||
Tracker Connect Pty Ltd [Member] | EVE Holdings Limited [Member] | |||||
Gain (Loss) Contingencies [Line Items] | |||||
Litigation settlement, amount awarded to other party | $ 6.2 |
SEGMENT AND GEOGRAPHIC DATA (Na
SEGMENT AND GEOGRAPHIC DATA (Narrative) (Details) - Segment | Aug. 30, 2016 | Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2019 |
Segment Reporting [Abstract] | ||||
Number of reportable segments | 2 | 2 | 1 | 2 |
SEGMENT AND GEOGRAPHIC DATA (Sc
SEGMENT AND GEOGRAPHIC DATA (Schedule of Business Segment Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 84,380 | $ 88,495 | $ 96,037 | $ 94,888 | $ 94,395 | $ 93,669 | $ 89,767 | $ 88,081 | $ 363,800 | $ 365,912 | $ 351,102 |
Adjusted EBITDA | 48,215 | 52,382 | 49,368 | ||||||||
Goodwill | 80,805 | 72,980 | 80,805 | 72,980 | 72,980 | ||||||
Operating Segments [Member] | Telematics Systems [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 287,370 | 302,126 | 274,314 | ||||||||
Adjusted EBITDA | 40,821 | 48,943 | 47,432 | ||||||||
Goodwill | 51,203 | 50,899 | 51,203 | 50,899 | |||||||
Operating Segments [Member] | Software & Subscription Services [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 76,430 | 63,786 | 61,719 | ||||||||
Adjusted EBITDA | 13,093 | 8,233 | 3,075 | ||||||||
Goodwill | $ 29,602 | $ 22,081 | 29,602 | 22,081 | |||||||
Operating Segments [Member] | Satellite [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 15,069 | ||||||||||
Adjusted EBITDA | 2,447 | ||||||||||
Corporate Expenses [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Adjusted EBITDA | $ (5,699) | $ (4,794) | $ (3,586) |
SEGMENT AND GEOGRAPHIC DATA (Su
SEGMENT AND GEOGRAPHIC DATA (Summary of Adjusted EBITDA) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 | |
Segment Information Summary Of Adjustments Results Of Ebitda Details [Abstract] | |||||||||||
Net income (loss) | $ 11,263 | $ (522) | $ (854) | $ 8,511 | $ (4,767) | $ 11,806 | $ 12,232 | $ (2,654) | $ 18,398 | $ 16,617 | $ (7,904) |
Investment income | (5,258) | (2,256) | (1,691) | ||||||||
Interest expense | 16,726 | 10,280 | 9,896 | ||||||||
Income tax provision (benefits) | (1,330) | 10,681 | (1,563) | ||||||||
Depreciation and amortization | 20,016 | 22,957 | 23,469 | ||||||||
Stock-based compensation | 11,029 | 9,298 | 7,833 | ||||||||
Impairment loss and equity in net loss of affiliate | 6,787 | 1,411 | 1,284 | ||||||||
Loss on extinguishment of debt | $ 2,000 | 2,033 | |||||||||
Acquisition and integration related expenses | 935 | 4,513 | |||||||||
Non-recurring legal expenses, net of reversal of litigation provision | (11,020) | 10,738 | 9,192 | ||||||||
Gain on LoJack battery performance legal Settlement | $ (2,500) | $ (2,500) | $ (13,300) | $ (13,300) | $ (15,000) | (18,333) | (28,333) | ||||
Restructuring | 8,015 | ||||||||||
Other | 217 | 989 | 4,339 | ||||||||
Adjusted EBITDA | $ 48,215 | $ 52,382 | $ 49,368 |
SEGMENT AND GEOGRAPHIC DATA (_2
SEGMENT AND GEOGRAPHIC DATA (Summary of Revenues by Geographic Area) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 84,380 | $ 88,495 | $ 96,037 | $ 94,888 | $ 94,395 | $ 93,669 | $ 89,767 | $ 88,081 | $ 363,800 | $ 365,912 | $ 351,102 |
United States [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 268,453 | 265,613 | 259,974 | ||||||||
Europe, Middle East and Africa [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 49,496 | 45,830 | 49,918 | ||||||||
South America [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 15,134 | 20,699 | 17,738 | ||||||||
Canada [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 9,815 | 14,958 | 8,412 | ||||||||
Asia and Pacific Rim [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 13,958 | 12,873 | 8,967 | ||||||||
All other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 6,944 | $ 5,939 | $ 6,093 |
QUARTERLY FINANCIAL INFORMATI_3
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 84,380 | $ 88,495 | $ 96,037 | $ 94,888 | $ 94,395 | $ 93,669 | $ 89,767 | $ 88,081 | $ 363,800 | $ 365,912 | $ 351,102 |
Gross profit | $ 33,471 | $ 36,381 | $ 39,821 | $ 38,091 | $ 38,422 | $ 38,187 | $ 36,838 | $ 37,443 | $ 147,764 | $ 150,890 | 143,352 |
Gross margin | 39.70% | 41.10% | 41.50% | 40.10% | 40.70% | 40.80% | 41.00% | 42.50% | 40.60% | 41.20% | |
Net income (loss) | $ 11,263 | $ (522) | $ (854) | $ 8,511 | $ (4,767) | $ 11,806 | $ 12,232 | $ (2,654) | $ 18,398 | $ 16,617 | $ (7,904) |
Earnings (loss) per diluted share | $ 0.33 | $ (0.02) | $ (0.02) | $ 0.23 | $ (0.13) | $ 0.33 | $ 0.34 | $ (0.08) | $ 0.52 | $ 0.46 | $ (0.22) |
Gain from legal settlement | $ 2,500 | $ 2,500 | $ 13,300 | $ 13,300 | $ 15,000 | $ 18,333 | $ 28,333 | ||||
Loss on extinguishment of debt | $ 2,000 | 2,033 | |||||||||
Legal provision previously reserved | $ 19,100 | ||||||||||
Temporary impairment | $ 5,000 | ||||||||||
Accrual for litigation | $ 6,100 |