Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 28, 2021 | Apr. 15, 2021 | Aug. 31, 2020 | |
Cover [Abstract] | |||
Entity Registrant Name | CalAmp Corp. | ||
Entity Central Index Key | 0000730255 | ||
Entity Filer Category | Accelerated Filer | ||
ICFR Auditor Attestation Flag | true | ||
Trading Symbol | CAMP | ||
Current Fiscal Year End Date | --02-28 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Feb. 28, 2021 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 | ||
Entity File Number | 0-12182 | ||
Entity Tax Identification Number | 95-3647070 | ||
Entity Address, Address Line One | 15635 Alton Parkway | ||
Entity Address, Address Line Two | Suite 250 | ||
Entity Address, City or Town | Irvine | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 92618 | ||
City Area Code | (949) | ||
Local Phone Number | 600-5600 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Well-Known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Interactive Data Current | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 233.8 | ||
Entity Common Stock, Shares Outstanding | 35,242,197 | ||
Entity Incorporation, State or Country Code | DE | ||
Security Exchange Name | NASDAQ | ||
Title of 12(b) Security | $0.01 par value Common Stock | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s definitive Proxy Statement for the Annual Meeting of Stockholders to be held on July 29, 2021 are incorporated by reference into Part III, Items 10, 11, 12, 13 and 14 of this Form 10-K. This Proxy Statement will be filed within 120 days after the end of the fiscal year covered by this report. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Feb. 28, 2021 | Feb. 29, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 94,624 | $ 107,404 |
Accounts receivable, net | 63,325 | 64,639 |
Inventories | 23,663 | 32,472 |
Prepaid expenses and other current assets | 24,804 | 20,433 |
Current assets of discontinued operations | 7,872 | 12,918 |
Total current assets | 214,288 | 237,866 |
Property and equipment, net | 41,081 | 55,878 |
Operating lease right-of-use assets | 14,273 | 20,626 |
Deferred income tax assets | 4,889 | 4,437 |
Goodwill | 94,617 | 94,312 |
Other intangible assets, net | 37,488 | 42,954 |
Other assets | 27,169 | 24,514 |
Non-current assets of discontinued operations | 15,218 | |
Total assets | 433,805 | 495,805 |
Current liabilities: | ||
Current portion of long-term debt | 4,317 | 33,119 |
Accounts payable | 35,767 | 24,635 |
Accrued payroll and employee benefits | 12,761 | 9,049 |
Deferred revenue | 32,924 | 32,427 |
Other current liabilities | 17,380 | 14,499 |
Current liabilities of discontinued operations | 4,096 | 7,746 |
Total current liabilities | 107,245 | 121,475 |
Long-term debt, net of current portion | 182,154 | 177,088 |
Operating lease liabilities | 17,061 | 24,279 |
Other non-current liabilities | 30,487 | 32,236 |
Non-current liabilities of discontinued operations | 1,773 | 2,808 |
Total liabilities | 338,720 | 357,886 |
Commitments and contingencies (see Note 20) | ||
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; 35,229 and 34,322 shares issued and outstanding at February 28, 2021 and February 29, 2020, respectively | 352 | 343 |
Additional paid-in capital | 233,692 | 220,482 |
Accumulated deficit | (137,974) | (81,531) |
Accumulated other comprehensive loss | (985) | (1,375) |
Total stockholders' equity | 95,085 | 137,919 |
Total liabilities and stockholders' equity | $ 433,805 | $ 495,805 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Feb. 28, 2021 | Feb. 29, 2020 |
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 | 35,229,000 | 34,322,000 |
Common stock, shares outstanding | 35,229,000 | 34,322,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2019 | |
Revenues: | |||
Revenues | $ 308,587 | $ 321,773 | $ 311,538 |
Cost of revenues: | |||
Cost of revenues | 186,182 | 196,280 | 185,660 |
Gross profit | 122,405 | 125,493 | 125,878 |
Operating expenses: | |||
Research and development | 25,811 | 26,993 | 25,541 |
Selling and marketing | 46,202 | 47,379 | 37,673 |
General and administrative | 49,077 | 49,479 | 22,957 |
Intangible asset amortization | 4,781 | 5,871 | 3,931 |
Restructuring | 2,534 | 2,465 | 2,299 |
Impairment losses | 825 | 5,754 | |
Total operating expenses | 129,230 | 137,941 | 92,401 |
Operating income (loss) | (6,825) | (12,448) | 33,477 |
Non-operating income (expense): | |||
Investment income | 2,119 | 4,497 | 5,258 |
Interest expense | (15,487) | (20,096) | (16,726) |
Gain on legal settlement | 7,543 | ||
Loss on extinguishment of debt | (2,408) | (2,033) | |
Other expense, net | (403) | (113) | (672) |
Total non-operating expenses | (13,771) | (18,120) | (6,630) |
Income (loss) from continuing operations before income taxes and equity in net loss of affiliate and related impairment loss | (20,596) | (30,568) | 26,847 |
Income tax benefit (provision) from continuing operations | 561 | 20,454 | (612) |
Income (loss) from continuing operations before equity in net loss of affiliate and related impairment loss | (21,157) | (51,022) | 27,459 |
Equity in net loss of affiliate and related impairment loss | (530) | (6,787) | |
Net income (loss) from continuing operations | (21,157) | (51,552) | 20,672 |
Net loss from discontinued operations, net of tax | (35,152) | (27,752) | (2,274) |
Net income (loss) | $ (56,309) | $ (79,304) | $ 18,398 |
Earnings (loss) per share - continuing operations: | |||
Basic | $ (0.62) | $ (1.54) | $ 0.60 |
Diluted | (0.62) | (1.54) | 0.59 |
Loss per share - discontinued operations: | |||
Basic | (1.02) | (0.82) | (0.07) |
Diluted | $ (1.02) | $ (0.82) | $ (0.07) |
Shares used in computing earnings (loss) per share: | |||
Basic | 34,389 | 33,670 | 34,589 |
Diluted | 34,389 | 33,670 | 35,294 |
Comprehensive income (loss): | |||
Net income (loss) | $ (56,309) | $ (79,304) | $ 18,398 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 390 | (714) | (33) |
Unrealized income (loss) on available-for-sale securities, net of tax | (429) | ||
Total comprehensive income (loss) | (55,919) | (80,018) | 17,936 |
Products [Member] | |||
Revenues: | |||
Revenues | 193,486 | 214,374 | 246,452 |
Cost of revenues: | |||
Cost of revenues | 129,578 | 135,987 | 150,731 |
Application Subscriptions and Other Services [Member] | |||
Revenues: | |||
Revenues | 115,101 | 107,399 | 65,086 |
Cost of revenues: | |||
Cost of revenues | $ 56,604 | $ 60,293 | $ 34,929 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Total | Common Stock and Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income [Member] |
Balances at Feb. 28, 2018 | $ 198,916,000 | $ 218,574,000 | $ (19,459,000) | $ (199,000) |
Balances (ASU 2016-01 [Member]) at Feb. 28, 2018 | 429,000 | (429,000) | ||
Balances (ASC 606 [Member]) at Feb. 28, 2018 | (1,595,000) | |||
Equity component of 2025 Convertible Notes, net of tax | 51,902,000 | |||
Purchase of capped call on 2025 Convertible Notes, net of tax | (15,870,000) | |||
Debt issuance costs of 2025 Convertible Notes allocated to equity, net of tax | (1,649,000) | |||
Equity component of the repurchased 2020 Convertible Notes | (6,088,000) | |||
Unwind of note hedges and warrants of 2020 Convertible Notes | 3,122,000 | |||
Stock-based compensation expense | 11,029,000 | |||
Shares issued on net share settlement of equity awards | (3,603,000) | |||
Exercise of stock options and contributions to ESPP | 124,000 | |||
Repurchases of common stock | (49,000,000) | (49,000,000) | ||
Net income (loss) | 18,398,000 | 18,398,000 | ||
Foreign currency translation adjustments | (33,000) | |||
Balances at Feb. 28, 2019 | 205,653,000 | 208,541,000 | (2,227,000) | (661,000) |
Stock-based compensation expense | 12,421,000 | |||
Shares issued on net share settlement of equity awards | (2,007,000) | |||
Exercise of stock options and contributions to ESPP | 1,870,000 | |||
Net income (loss) | (79,304,000) | (79,304,000) | ||
Foreign currency translation adjustments | (714,000) | |||
Balances at Feb. 29, 2020 | 137,919,000 | 220,825,000 | (81,531,000) | (1,375,000) |
Balances (ASC 326 [Member]) at Feb. 29, 2020 | (134,000) | |||
Stock-based compensation expense | 12,880,000 | |||
Shares issued on net share settlement of equity awards | (1,628,000) | |||
Exercise of stock options and contributions to ESPP | 1,967,000 | |||
Net income (loss) | (56,309,000) | (56,309,000) | ||
Foreign currency translation adjustments | 390,000 | |||
Balances at Feb. 28, 2021 | $ 95,085,000 | $ 234,044,000 | $ (137,974,000) | $ (985,000) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) | $ (56,309) | $ (79,304) | $ 18,398 |
Net loss from discontinued operations, net of tax | (35,152) | (27,752) | (2,274) |
Net income (loss) from continuing operations | (21,157) | (51,552) | 20,672 |
Adjustments to reconcile net income (loss) from continuing operations to net cash provided by operating activities: | |||
Depreciation | 17,221 | 17,441 | 5,855 |
Intangible asset amortization | 4,781 | 5,871 | 3,931 |
Stock-based compensation | 11,364 | 10,667 | 9,539 |
Amortization of debt issuance costs and discount | 10,180 | 13,764 | 11,492 |
Impairment losses | 825 | 5,754 | |
Noncash operating lease cost | 421 | 1,534 | |
Loss on extinguishment of debt | 2,408 | 2,033 | |
Revenue assigned to factors | (6,291) | (6,844) | |
Tax benefits on vested and exercised equity awards | 758 | ||
Deferred tax assets, net | (1) | 18,552 | (525) |
Unrealized foreign currency transaction gains | 217 | 211 | 404 |
Equity in net loss of affiliate and related impairment loss | 530 | 6,787 | |
Changes in operating assets and liabilities of continuing operations, excluding effects from acquisitions: | |||
Accounts receivable | 1,624 | 7,549 | (4,022) |
Inventories | 8,691 | (1,439) | 5,035 |
Prepaid expenses and other current assets | (7,311) | (2,014) | (7,379) |
Accounts payable | 10,166 | (17,598) | 2,032 |
Accrued liabilities | 8,257 | 4,602 | (18,370) |
Deferred revenue | (6,199) | 1,975 | 6,065 |
Operating lease liabilities | (297) | (4,962) | |
Other | 506 | 388 | 366 |
Net cash provided by continuing operations | 32,997 | 6,837 | 44,673 |
Net cash provided by (used in) discontinued operations | (4,412) | 4,707 | 3,067 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 28,585 | 11,544 | 47,740 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Proceeds from maturities and sale of marketable securities | 6,264 | 37,055 | 56,358 |
Purchases of marketable securities | (6,264) | (19,543) | (50,364) |
Capital expenditures | (11,356) | (21,301) | (10,399) |
Acquisitions, net of cash acquired | (60,652) | (13,031) | |
Equity investments in and advances to affiliate | (530) | (2,631) | |
Other | 164 | (110) | |
Net cash used in continuing operations | (11,356) | (64,807) | (20,177) |
Net cash used in discontinued operations | (2,338) | (891) | (1,608) |
NET CASH USED IN INVESTING ACTIVITIES | (13,694) | (65,698) | (21,785) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Taxes paid related to net share settlement of vested equity awards | (1,628) | (2,007) | (3,603) |
Proceeds from exercise of stock options and contributions to employee stock purchase plan | 1,967 | 1,870 | 124 |
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 | (27,599) | (94,683) | (53,683) |
Proceeds from unwind of note hedges and warrants on 2020 Convertible Notes | 3,122 | ||
Proceeds from Paycheck Protection Program Loan | 10,000 | ||
Repayment of Paycheck Protection Program Loan | (10,000) | ||
Proceeds from revolving credit facility, net of issuance costs | 19,944 | ||
Repayment of revolving credit facility | (20,000) | ||
Repurchases of common stock | (49,000) | ||
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | (27,316) | (94,820) | 98,495 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (355) | (122) | (553) |
Net change in cash and cash equivalents | (12,780) | (149,096) | 123,897 |
Cash and cash equivalents at beginning of year | 107,404 | 256,500 | 132,603 |
Cash and cash equivalents at end of year | $ 94,624 | $ 107,404 | $ 256,500 |
DESCRIPTION OF BUSINESS AND SUM
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Feb. 28, 2021 | |
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 connected intelligence company that helps people and businesses work smarter. We partner with transportation and logistics, industrial equipment, government and automotive industries to deliver insights that enable businesses to make the right decisions. Our applications, platforms and smart devices allow them to track, monitor and recover their vital assets with real-time visibility that reduces costs, maximizes productivity and improves safety. We are a global organization that is headquartered in Irvine, California. Recent Events COVID-19 In March 2020, the World Health Organization declared COVID-19 as a pandemic. The full impact of the COVID-19 pandemic is inherently uncertain at the time of this report. The pandemic has resulted in travel restrictions and in some cases, prohibitions of non-essential activities, disruption and shutdown of businesses and greater uncertainty in global financial markets. Through fiscal 2021, our revenues were negatively impacted by COVID-19 as various small-to-medium customers postponed their capital expenditure due to the pandemic and related macro-economic uncertainties. The pandemic has also created certain global supply imbalances resulting in supply shortages in certain components that we use. It is difficult to predict the extent to which the COVID-19 pandemic will continue to impact our future business or operating results, which is highly dependent on uncertain future developments, including the severity of the continuing pandemic and the actions taken or to be taken by governments and private businesses in relation to its containment. Because our business is dependent on telematics product sales, device installations and related subscription-based services, the ultimate effect of the outbreak may not be fully reflected in our operating results until future periods. We have considered all known and reasonably available information that existed throughout fiscal 2021 and as of February 28, 2021, in making accounting judgements, estimates and disclosures. We are monitoring the potential effects of the health care related and economic conditions of COVID-19 in assessing certain matters including (but not limited to) supply chain disruptions, decreases in customer demand for our products and services, potential longer-term effects on our customer and distribution channels particularly in the U.S. and relevant end markets as well as other developments. If the impact results in longer-term closures of businesses and economic recessionary conditions, we may recognize additional material asset impairments and charges for uncollectible accounts receivable in future periods. Currently, we estimate that the existing cash, future cash flows and available borrowings under our revolving credit facility will provide sufficient cash flows for at least twelve months after the issuance date of the consolidated financial statements. Wind Down and Subsequent Sale of LoJack U.S. SVR Operations On December 16, 2020, our Board of Directors approved a plan for management to commence with the wind down of the LoJack U.S. SVR operations. This business unit has historically provided stolen vehicle recovery (SVR) products operating on a radio frequency allocated by the FCC for domestic automotive dealerships. These products and related services have been provided predominately as a hardware-based offering that no longer aligns with our core strategy. Subsequent to the public announcement of this plan, we received inbound inquiries from certain parties interested in acquiring the business. On January 22, 2021, we received a formal proposal from Spireon Holdings, L.P. (“Spireon”) to acquire the LoJack U.S. and Canadian SVR (“LoJack North America”) business for a purchase price of $8.0 million. Effective March 15, 2021, the Company and Spireon entered into a purchase agreement pursuant to which we sold certain assets and transferred certain liabilities of the LoJack North America business to Spireon. Since the LoJack North America operations were deemed a business that met the held for sale criteria under ASC 205-20-45, Presentation of Financial Statements – Discontinued Operations Discontinued Operations Unless otherwise indicated, the financial disclosures and related information provided herein relate to our continuing operations and we have recast prior period amounts. Acquisitions On February 25, 2019, we completed our acquisition of Tracker Network (UK) Limited (“Tracker UK”), a LoJack licensee and a market leader in stolen vehicle recovery (“SVR”) telematics services across the United Kingdom, for a cash purchase price of approximately $13.0 million. On March 18, 2019, we acquired Car Track, S.A. de C.V. (“LoJack Mexico”), the exclusive licensee of LoJack technology for the Mexican market and former customer. We purchased the 87.5% of the LoJack Mexico shares not currently owned by us for a purchase price, net of cash on hand, of approximately $13.0 million. 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 $49.8 million. Synovia was a customer prior to our acquisition. These acquisitions expand our fleet management and vehicle safety services portfolio and accelerate our transformation to high-value subscription-based services. Since the LoJack U.S. SVR Products operating segment is presented as discontinued operations, we now operate under two reportable segments – Telematics Products and Software & Subscription Services. Principles of Consolidation Our consolidated financial statements include the accounts of CalAmp Corp. (a Delaware corporation) and all of our wholly-owned subsidiaries. The financial position and operating results of the LoJack North America operations have been reported as discontinued operations in the consolidated financial statements for the current as well as prior comparative periods. 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 allowances for doubtful accounts; charges for excess and obsolete inventory; deferred income tax asset valuation allowances; goodwill and other long-lived assets; intellectual property and accrued royalties; stock-based compensation; legal contingencies and revenue recognition. The current COVID-19 pandemic and general economic environment, and our supplier and customer concentrations also increase the degree of uncertainty inherent in these estimates and assumptions. Revenue Recognition and Related Judgements We recognize revenue under ASC 606, Revenue from Contracts with Customers • 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. Products . 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. Software-as-a-Service (“SaaS”) . We recognize the following revenues and related cost of revenues in our revenues and cost of revenues because we enter into arrangements that combine various hardware devices as well as installation and notification services that are provided over a stipulated service period. Our integrated SaaS-based solutions for our fleet management 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 through our software applications. The transaction price for a typical SaaS arrangement includes the price for the customized device, installation and application subscriptions. We have applied our judgment in determining that these integrated arrangements typically represent single performance obligations satisfied over time. Accordingly, we defer the recognition of revenue for the customized devices that only function with our applications and are sold only on an integrated basis with our proprietary applicable subscriptions. Such customized devices and the application services are not sold separately. In such circumstances, the associated device related costs are recorded as deferred costs on 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 revenue and deferred 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 is four years in the fleet management vertical. In certain fleet management contracts, we provide devices as part of the subscription contracts but we retain control of such devices. Under such arrangements, the cost of the devices is capitalized as property and equipment and depreciated over the estimated useful life of four to five years. The related subscription revenues of these arrangements are recognized as services are rendered. 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. Accessories may also be sold to these customers. We recognize revenue for sales of accessories upon transfer of control to the customer based on estimated stand-alone selling prices. In certain customer arrangements, we sell or lease vehicle location devices together with related monitoring services as part of the contractual arrangement. The devices leased to our customers are capitalized as property and equipment and are being depreciated over the life of the devices. From time to time we sell devices and monitoring services separately to customers and sell similar devices on a stand-alone basis. Accordingly, we recognize revenues for the sales of the devices upon transfer of control to the customer and recognize revenue for the related monitoring services over the service period. The allocation of the transaction price is based on estimated stand-alone selling prices for the devices and the monitoring services. Deferred revenues consist primarily of the deferred amounts on integrated SaaS solutions and advance payments for monitoring services. Professional Services . We also provide various professional services to customers. These services include project management, engineering services and installation services, 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. 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 consolidated financial statements. During fiscal year ended February 28, 2021, we recognized $33.9 million in revenue from the deferred revenue balance of $57.1 million as of March 1, 2020. Certain incremental costs of obtaining a contract with a customer consist of sales commissions, which are recognized on a straight-line basis over the life of the corresponding contracts. Prepaid sales commissions included in and amounted to $2.1 million and $2.4 million, respectively, as of February 28, 2021. Prepaid sales commissions in are expected to be amortized within the next 12 months. We disaggregate revenue from contracts with customers into reportable segments, geography, type of goods and services and timing of revenue recognition. See Note 21 for our revenue by segment and geography. The disaggregation of revenue by type of goods and services and by timing of revenue recognition is as follows (in thousands): Year Ended February 28/29, 2021 2020 2019 Revenue by type of goods and services: Telematics devices and accessories $ 193,486 $ 214,374 $ 246,452 Rental income and other services 17,844 21,587 13,591 Recurring application subscriptions 97,257 85,812 51,495 Total $ 308,587 $ 321,773 $ 311,538 Revenue by timing of revenue recognition: Revenue recognized at a point in time $ 209,902 $ 232,971 $ 254,054 Revenue recognized over time 98,685 88,802 57,484 Total $ 308,587 $ 321,773 $ 311,538 Telematics devices and accessories 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. Remaining performance obligations from continuing operations represents contracted revenue that has not yet been recognized, which includes deferred revenue on our consolidated balance sheets and unbilled amounts that will be recognized as revenue in future periods. As of February 28, 2021 and February 29, 2020, we have estimated remaining performance obligations for contractually committed revenues of $145.1 million and $129.4 million respectively. As of February 28, 2021, we expect to recognize approximately 50% in fiscal 2022 and 22% in fiscal 2023. As of February 29, 2020, we expected to recognize approximately 44% in fiscal 2021 and 26% in fiscal 2022. 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. Revision of Previously Issued Consolidated Financial Statements . Subsequent to the issuance of the consolidated financial statements for the year ended February 29, 2020, we concluded that the presentation of revenues and cost of revenues should be adjusted to present product and service revenues and the related cost of revenues for each separately in accordance with SEC Regulation S-X, Rule 5-03(b). Additionally, certain historical information in the notes to the consolidated financial statements have been revised to reflect the impact of these and other classification corrections. We have determined that the correction of these classification errors is not material to the previously issued consolidated financial statements. The following table summarizes the impact of the immaterial adjustments. Year ended February 29, 2020 As Reported Reclassification for Discontinued Operations Adjustment As Corrected and Reclassified Revenues: Products $ 241,212 $ (37,112 ) $ 10,274 $ 214,374 Application subscriptions and other services 124,895 (7,222 ) (10,274 ) 107,399 Total revenues $ 366,107 $ (44,334 ) $ - $ 321,773 Cost of revenues: Products $ 154,654 $ (23,125 ) $ 4,458 $ 135,987 Application subscriptions and other services 68,150 (3,399 ) (4,458 ) 60,293 Total cost of revenues $ 222,804 $ (26,524 ) $ - $ 196,280 Year ended February 28, 2019 As Reported Reclassification for Discontinued Operations Adjustment As Corrected and Reclassified Revenues: Products $ 285,883 $ (42,277 ) $ 2,846 $ 246,452 Application subscriptions and other services 77,917 (9,985 ) (2,846 ) 65,086 Total revenues $ 363,800 $ (52,262 ) $ - $ 311,538 Cost of revenues: Products $ 175,009 $ (26,337 ) $ 2,059 $ 150,731 Application subscriptions and other services 41,027 (4,039 ) (2,059 ) 34,929 Total cost of revenues $ 216,036 $ (30,376 ) $ - $ 185,660 Year ended February 29, 2020 As Reported Reclassification for Discontinued Operations Adjustment As Corrected and Reclassified Revenue by type of goods and services: Telematics devices and accessories $ 258,449 $ (37,112 ) $ (6,963 ) $ 214,374 Rental income and other services 24,415 (2,733 ) (95 ) 21,587 Recurring application subscriptions 83,243 (4,489 ) 7,058 85,812 Total $ 366,107 $ (44,334 ) $ - $ 321,773 Revenue by timing of revenue recognition: Revenue recognized at a point in time $ 279,880 $ (39,845 ) $ (7,064 ) $ 232,971 Revenue recognized over time 86,227 (4,489 ) 7,064 88,802 Total $ 366,107 $ (44,334 ) $ - $ 321,773 Year ended February 28, 2019 As Reported Reclassification for Discontinued Operations Adjustment As Corrected and Reclassified Revenue by type of goods and services: Telematics devices and accessories $ 295,750 $ (42,277 ) $ (7,021 ) $ 246,452 Rental income and other services 13,293 (3,525 ) 3,823 13,591 Recurring application subscriptions 54,757 (6,460 ) 3,198 51,495 Total $ 363,800 $ (52,262 ) $ - $ 311,538 Revenue by timing of revenue recognition: Revenue recognized at a point in time $ 300,378 $ (45,802 ) $ (522 ) $ 254,054 Revenue recognized over time 63,422 (6,460 ) 522 57,484 Total $ 363,800 $ (52,262 ) $ - $ 311,538 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. We typically require payment from customers within between 30 to 60 days of our invoice date with a few exceptions that extend the credit terms up to 90 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. Due to the COVID-19 pandemic, there has been uncertainty and disruption in the global economy and financial markets. Except for the increase in expected credit losses, we are not aware of any specific event or circumstances that would require an update to our estimates or assumptions or a revision of the carrying value of our assets or liabilities as of the date of this annual report. These estimates and assumptions may change as new events occur and additional information is obtained. 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. As a result, actual results could differ materially from these estimates and assumptions. We analyzed the credit risk associated with our accounts receivables and lease receivables. Our historical loss rates have not shown any significant differences between customer industries or geographies, and, upon adoption of ASU 2016-13, Financial Instruments – Credit Losses (“ASU 2016-13”) Segment Information and Geographic Data 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, 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 seven 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. The devices leased to our customers are capitalized as property and equipment and being depreciated over the life of the devices. 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 Long-lived Assets Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination. We test goodwill for impairment in accordance with the provisions of ASC 350, Intangibles – Goodwill and Other, The estimates of fair value of the reporting units are computed using either an income approach, a market approach, or a combination of both. Under the income approach, we utilize the discounted cash flow method to estimate the fair value of the reporting units. Significant assumptions inherent in estimating the fair values include the estimated future cash flows, growth assumptions for future revenues (including future gross margin rates, expense rates, capital expenditures and other estimates), and a rate used to discount estimated future cash flow projections to their present value (or estimated fair value) based on estimated weighted average cost of capital (i.e., the selected discount rate). We select assumptions used in the financial forecasts by using historical data, supplemented by current and anticipated market conditions, estimated growth rates, and management’s plans. Under the market approach, fair value is derived from metrics of publicly traded companies or historically completed transactions of comparable businesses (i.e. guideline companies). The selection of comparable businesses is based on the markets in which the reporting units operate giving consideration to risk profiles, size, geography, and diversity of products and services. 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. 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. The recoverability assessment with respect to each of the tradenames used in our operations requires us to estimate the fair value of the asset as of the assessment date. Such determination is made using discounted cash flow techniques (Level 3 determination of fair value). Significant inputs to the valuation model include future revenue and profitability projections associated with the tradename through relief of royalty approach; estimated market royalty rates that could be derived from the licensing of our tradenames to third parties in order to establish the cash flows accruing to the benefit of the Company as a result of our ownership of our tradenames; and rate used to discount the estimated royalty cash flow projections to their present value (or estimated fair value). In the fourth quarter of fiscal 2020 and throughout fiscal 2021, we determined that the prolonged secular decline in revenues from our legacy LoJack U.S. SVR products coupled with the slower than anticipated market penetration of our telematics solutions in the U.S. automotive dealership channel represented determinate indications of impairment. These factors were further exacerbated by the continuing unfavorable impact that the COVID-19 pandemic has had on the automotive end markets over the past ten months. As a result, we initiated an assessment of the carrying amount of the related goodwill, intangible and long-lived assets supporting these products including the LoJack tradename and dealer and customer relationships in both fiscal years. Based upon our assessment of economic conditions, our expectations of future business conditions and trends, our projected revenues, earnings, and cash flows, we determined that goodwill and certain of our long-lived assets were impaired in fiscal year 2021 and 2020 as follows (in thousands): Year Ended February 28/29, 2021 2020 LoJack U.S. SVR Products goodwill $ 12,023 $ - Other intangible assets: Developed technology 478 - Tradenames - 11,540 Dealer and customer relationships 1,005 6,194 Property and equipment and other assets 10,483 514 Operating lease right-of-use assets and related liabilities 658 895 Total $ 24,647 $ 19,143 Of the above amounts, $23.8 million and $13.4 million were included in discontinued operations, respectively (see Note 2, Discontinued Operations 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. Convertible Senior Notes and Capped Call Transactions We account for our convertible senior notes as separate liability and equity components. We determine the carrying amount of the liability component based on the estimated fair value of a similar debt instrument excluding the embedded conversion option at the issuance date. The carrying amount of the equity component representing the conversion option is calculated by deducting the carrying value of the liability component from the principal amount of the notes as a whole. This difference represents a debt discount that is amortized to interest expense over the term of the notes using the effective interest rate method. The equity component of the notes is included in stockholders’ equity and is not remeasured as long as it continues to meet the conditions for equity classification. We allocate transaction costs related to the issuance of the notes to the liability and equity components using the same proportions as the initial carrying value of the notes. Transaction costs attributable to the liability component are being amortized to interest expense using the effective interest method over the respective term of the notes, and transaction costs attributable to the equity components are netted with the equity component of the note in stockholders’ equity. We account for the cost of the capped calls as a reduction to additional paid-in capital. 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 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 |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Feb. 28, 2021 | |
Discontinued Operations And Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | NOTE 2 – DISCONTINUED OPERATIONS Effective March 15, 2021, a wholly owned subsidiary of the Company and Spireon entered into an agreement pursuant to which we sold certain assets and transferred certain liabilities of the LoJack North America business for an upfront cash purchase price of approximately $8.0 million. The purchase price is subject to changes for customary working capital adjustments. As part of the transaction, we also entered into a transition service agreement to support Spireon in the transition of customers to its telematics solution and to provide recovery services to the existing installed base of LoJack North America customers, as an agent of Spireon, for a period of six months commencing March 15, 2021. As consideration for these services, Spireon will reimburse us for the direct and certain indirect costs, as well as certain overhead or administrative expenses related to operating the business. Additionally, we entered into a services agreement to commence on September 15, 2021 under which we will provide certain services related to the LoJack tower infrastructure for a period no longer than fifty-four months. As consideration for these services, Spireon will pay us a monthly service fee over the stipulated contract term. Further, we entered into a license agreement pursuant to which we will license certain intellectual property rights related to the LoJack North America business in the U.S. and Canada to Spireon. Net proceeds received from the transaction was approximately $6.8 million, which is still subject to a final working capital adjustment that will occur 90 days after the transaction close date. The resulting gain or loss on sale of discontinued operations is expected to be included within the statement of operations for the quarter ended May 31, 2021. We have concluded that the LoJack North America operations are discontinued operations as the asset group represents a component of an entity, the component meets the criteria of held for sale as of February 28, 2021, and the disposal represents a strategic shift. As a result, certain items were reclassified as part of discontinued operations for comparative purposes. The below table presents the amounts by balance sheet classification related to our discontinued operations (in thousands): As of February 28/29, 2021 2020 Carrying amounts of the major classes of assets included in discontinued operations: Accounts receivable, net $ 5,050 $ 7,634 Inventories 1,721 4,306 Prepaid expenses and other current assets 1,101 978 Current assets of discontinued operations $ 7,872 $ 12,918 Goodwill $ - $ 12,023 Other intangible assets, net - 2,941 Other assets - 254 Non-current assets of discontinued operations - 15,218 $ 7,872 $ 28,136 Carrying amounts of the major classes of liabilities included in discontinued operations: Accounts payable $ 1,956 $ 3,815 Deferred revenue 1,849 2,277 Other current liabilities 291 1,654 Current liabilities of discontinued operations 4,096 7,746 Other non-current liabilities 1,773 2,808 Non-current liabilities of discontinued operations 1,773 2,808 $ 5,869 $ 10,554 The amounts in the statement of operations that are included in discontinued operations are summarized in the following table (in thousands): Year Ended February 28/29 2021 2020 2019 Revenues $ 32,692 $ 44,334 $ 52,262 Cost of revenues 21,133 26,524 30,376 Gross profit 11,559 17,810 21,886 Operating expenses: Research and development 1,441 2,443 2,115 Selling and marketing 9,988 13,155 12,219 General and administrative 7,041 8,190 8,113 Intangible asset amortization 2,199 6,450 7,505 Restructuring 2,220 1,935 5,716 Impairment losses 23,822 13,389 - Total operating expenses 46,711 45,562 35,668 Operating loss (35,152 ) (27,752 ) (13,782 ) Non-operating income - - 10,790 Loss from discontinued operations before income taxes (35,152 ) (27,752 ) (2,992 ) Income tax benefit - - 718 Net loss from discontinued operations, net of tax $ (35,152 ) $ (27,752 ) $ (2,274 ) The amounts in the statement of cash flow that are included in discontinued operations are summarized in the following table (in thousands): Year Ended February 28/29 2021 2020 2019 CASH FLOWS FROM OPERATING ACTIVITIES: Net loss from discontinued operations, net of tax $ (35,152 ) $ (27,752 ) $ (2,274 ) Adjustments to reconcile net loss from discontinued operations to net cash provided by (used in) operating activities: Depreciation 2,260 2,225 2,725 Intangible asset amortization 2,199 6,450 7,505 Stock-based compensation 1,516 1,754 1,490 Impairment losses 23,822 14,599 - Noncash operating lease cost 4,901 3,360 - Deferred tax assets, net - - (719 ) Changes in operating assets and liabilities: Accounts receivable 2,584 2,053 (833 ) Inventories 2,585 2,456 400 Prepaid expenses and other current assets (123 ) 2,376 (2,699 ) Accounts payable (1,859 ) 1,158 (156 ) Accrued liabilities (1,363 ) (627 ) (2,460 ) Deferred revenue (428 ) (70 ) 88 Operating lease liabilities (5,354 ) (3,275 ) - NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES FROM DISCONTINUED OPERATIONS (4,412 ) 4,707 3,067 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (2,338 ) (891 ) (1,608 ) NET CASH USED IN INVESTING ACTIVITIES FROM DISCONTINUED OPERATOINS (2,338 ) (891 ) (1,608 ) Net change in cash and cash equivalents (6,750 ) 3,816 1,459 |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Feb. 28, 2021 | |
Business Combinations [Abstract] | |
ACQUISITIONS | NOTE 3 – ACQUISITIONS We acquired Tracker UK, LoJack Mexico and Synovia in February 2019, March 2019 and April 2019, respectively. The following are the final purchase price allocations as of February 29, 2020 for the three acquisitions (in thousands): Tracker UK LoJack Mexico Synovia Purchase price $ 13,097 $ 14,306 $ 29,500 Add debt paid at closing - - 20,296 Less cash acquired, net of debt assumed (65 ) (1,586 ) (889 ) Net cash paid 13,032 12,720 48,907 Less provisional amount of working capital claim against escrowed consideration (973 ) - - Net consideration 12,059 12,720 48,907 Add previously held interest - 2,021 - Fair value of net assets and liabilities assumed: Current assets other than cash $ 3,549 $ 4,537 $ 9,637 Property and equipment 1,008 3,652 24,840 Customer relationships 2,354 7,000 16,700 Trade name 2,354 - 1,600 Developed technology 1,830 - 3,800 Deferred tax assets - - 2,061 Other non-current assets 104 1,301 177 Current liabilities (3,130 ) (2,586 ) (4,645 ) Due to factors - - (19,692 ) Deferred revenue (3,162 ) (4,507 ) (4,319 ) Deferred tax liability (874 ) (943 ) - Other non-current liabilities (270 ) - - Total fair value of net assets acquired 3,763 8,454 30,159 Goodwill $ 8,296 $ 6,287 $ 18,748 We paid a premium (i.e., goodwill) over the fair value of the net tangible and identified intangible assets acquired for the three acquisitions as we believe the extensive customer relationships with these businesses will expand our fleet management and vehicle safety services portfolio and increase our customer reach by gaining access to a base of high-value and low-churn subscribers in those geographic regions. We incurred acquisition-related costs of approximately $1.2 million for the acquisition of these entities in fiscal 2020 and $0.9 million in fiscal 2019. These costs were primarily legal expenses, which were recorded as part of our general and administrative expenses. Pro forma financial information for the fiscal years ended February 29/28, 2020 and 2019 for the acquired companies is not disclosed as the results are not material to our consolidated financial statements. 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 UK became a wholly-owned subsidiary and was consolidated with our financial statements beginning February 25, 2019 as a component of our Software and Subscription Services reportable segment. The goodwill arising from the acquisition of Tracker UK is not deductible for income tax purposes. LoJack Mexico On March 19, 2019, we acquired LoJack Mexico, the exclusive licensee of LoJack technology for the Mexican market. LoJack Mexico 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. We purchased the remaining 87.5% of LoJack Mexico shares that we did not own for a cash purchase price of $14.3 million. Our previously held 12.5% equity interest in LoJack Mexico was determined to have a fair value of $2.0 million at acquisition date which resulted in a gain of $0.3 million, which was recorded as investment income in our consolidated statements of comprehensive income (loss) for the fiscal year ended February 29, 2020. LoJack Mexico is consolidated with our financial statements effective March 19, 2019 as a component of our Software & Subscription Services reportable segment. The goodwill arising from the acquisition of LoJack Mexico is not deductible for income tax purposes. Synovia On April 12, 2019, we acquired 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 cash purchase price of $49.8 million. The Synovia acquisition expands our fleet management and vehicle safety services portfolio as well as accelerates our transformation to high-value subscription based services. Synovia is consolidated with our financial statements effective April 12, 2019 as a component of our Software & Subscription Services reportable segment. The goodwill arising from the acquisition of Synovia is deductible for income tax purposes. |
CONCENTRATION OF CUSTOMERS AND
CONCENTRATION OF CUSTOMERS AND SUPPLIERS | 12 Months Ended |
Feb. 28, 2021 | |
Risks And Uncertainties [Abstract] | |
CONCENTRATION OF CUSTOMERS AND SUPPLIERS | NOTE 4 – 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 28/29, 2021 2020 2019 Net sales: Customer A 19 % 16 % 18 % As of February 28/29, 2021 2020 2019 Accounts receivable: Customer A 25 % 21 % 16 % Significant Suppliers We purchase a significant amount of our inventory from certain manufacturers or suppliers including components, assemblies and electronic manufacturing parts. These suppliers are located in Asia, including China. 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. For the fiscal year ended February 28, 2021, four of our suppliers accounted for approximately 66% of our total inventory purchases, for the fiscal years ended February 29, 2020, three of our suppliers accounted for approximately 50% of our total inventory purchases, and for the fiscal years ended February 28, 2019, two of our suppliers accounted for approximately 59% of total inventory purchases. Some of these manufacturers accounted for more than 10% of accounts payable as follows: As of February 28/29, 2021 2020 2019 Accounts Payable: Supplier A 17 % 13 % 0 % Supplier B 11 % 10 % 2 % Supplier C 8 % 12 % 19 % Supplier D 5 % 0 % 33 % 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, 2021 | |
Cash And Cash Equivalents [Abstract] | |
CASH, CASH EQUIVALENTS AND INVESTMENTS | NOTE 5 – CASH, CASH EQUIVALENTS AND INVESTMENTS The following tables summarize our financial instrument assets (in thousands): As of February 28, 2021 Balance Sheet Classification of Fair Value Unrealized Cash and Gains Fair Cash Other Cost (Losses) Value Equivalents Assets Cash $ 38,823 $ - $ 38,823 $ 38,823 $ - Level 1: Money market funds 12,801 - 12,801 12,801 - Mutual funds (1) 1,810 367 2,177 - 2,177 Level 2: Repurchase agreements 43,000 - 43,000 43,000 - Total $ 96,434 $ 367 $ 96,801 $ 94,624 $ 2,177 As of February 29, 2020 Balance Sheet Classification of Fair Value Unrealized Cash and Gains Fair Cash Other Cost (Losses) Value Equivalents Assets Cash $ 31,895 $ - $ 31,895 $ 31,895 $ - Level 1: Money market funds 5,508 - 5,508 5,508 - Mutual funds (1) 3,926 26 3,952 - 3,952 Level 2: Repurchase agreements 60,000 - 60,000 60,000 - Corporate bonds 10,001 - 10,001 10,001 - Total $ 111,330 $ 26 $ 111,356 $ 107,404 $ 3,952 (1) Amounts represent various equities, bonds and money market mutual funds held in a “Rabbi Trust” and are restricted for payment obligations to non-qualified deferred compensation plan participants. In addition to the mutual funds above, our “Rabbi Trust” also included Corporate-Owned Life Insurance (COLI) starting in fiscal 2020. As of February 28, 2021, the cash surrender value of COLI was $5.0 million. See Note 10 for discussion of the deferred compensation plan. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Feb. 28, 2021 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | NOTE 6 – ACCOUNTS RECEIVABLE Accounts receivable consist of the following (in thousands): February 28/29, 2021 2020 Accounts receivable $ 66,983 $ 66,903 Allowance for doubtful accounts (3,658 ) (2,264 ) $ 63,325 $ 64,639 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Feb. 28, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 7 – INVENTORIES Inventories consist of the following (in thousands): February 28/29, 2021 2020 Raw materials $ 10,480 $ 17,034 Finished goods 13,183 15,438 $ 23,663 $ 32,472 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Feb. 28, 2021 | |
Property Plant And Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 8 – PROPERTY AND EQUIPMENT Property and equipment consist of the following (in thousands): Useful February 28/29, Life 2021 2020 Leasehold improvements 5 - 10 years $ 7,924 $ 9,425 Recovery system components and law enforcement tracking units 7 to 10 years 13,975 17,096 Leased devices 2 to 5 years 31,988 30,646 Plant equipment and tooling 2 - 5 years 9,789 13,026 Office equipment, computers and furniture 3 - 5 years 12,438 11,598 Software 3 - 7 years 49,993 50,760 126,107 132,551 Less accumulated depreciation and amortization (88,870 ) (81,079 ) 37,237 51,472 Fixed assets not yet in service 3,844 4,406 $ 41,081 $ 55,878 Depreciation expense from continuing operations was $17.2 million, $17.4 million and $5.9 million for the fiscal years ended February 28/29, 2021, 2020 and 2019, respectively. A portion of the recovery system components and law enforcement tracking units above represent the software development for and equipment attached to our tower infrastructure. During fiscal year ended February 28, 2021, we recorded impairment losses aggregating $9.0 million, which represented the net book value of property and equipment substantially related to the LoJack U.S. SVR operations. During fiscal year ended February 29, 2020, we recorded impairment losses aggregating $0.5 million, which represented the net book value of tower equipment in various leases that were terminated or planned to be terminated. Impairment losses of $8.9 million and $0.5 million for the fiscal years ended February 28/29, 2021 and 2020, respectively, are included within the Net loss from discontinued operations 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, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | NOTE 9 – GOODWILL AND OTHER INTANGIBLE ASSETS Changes in goodwill are as follows (in thousands): Software & Subscription Services Telematics Products LoJack U.S. SVR Products Total Balance as of February 29, 2020 $ 55,132 $ 39,180 $ 12,023 $ 106,335 Impairment loss - - (12,023 ) $ (12,023 ) Effect of exchange rate change on goodwill 305 - - 305 Balance as of February 28, 2021 $ 55,437 $ 39,180 $ - $ 94,617 Other intangible assets are comprised as follows (in thousands, except years): Gross Accumulated Amortization Net Useful Life Feb. 29, 2020 Currency Adjustments Impair- ment Feb. 28, 2021 Feb. 29, 2020 Expense Feb. 28, 2021 Feb. 29, 2020 Feb. 28, 2021 Developed technology (1) 4-6 years $ 27,363 109 (478 ) $ 26,994 $ 21,437 2,620 $ 24,057 $ 5,926 $ 2,937 Tradenames 10 years 30,093 164 - 30,257 16,303 2,125 18,428 13,790 11,829 Customer lists 4-7 years 25,304 - - 25,304 22,903 48 22,951 2,401 2,353 Dealer and customer relationships (1) 10-15 years 34,139 (217 ) (1,005 ) 32,917 10,753 2,149 12,902 23,386 20,015 Patents 5 years 589 - - 589 197 38 235 392 354 $ 117,488 $ 56 $ (1,483 ) $ 116,061 $ 71,593 $ 6,980 $ 78,573 $ 45,895 $ 37,488 (1) A combined total of $2.9 million as of February 29, 2020 relates to LoJack US SVR Products, which is included within Non-current assets of discontinued operations shown separately in our consolidated balance sheet. The balance was fully impaired as of February 28, 2021. 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. In both fiscal 2021 and 2020, we determined that the prolonged secular decline in legacy LoJack US SVR products revenue coupled with the slower than anticipated market penetration of our telematics solutions in the U.S. automotive dealership channel represented determinate indications of impairment. As a result, we performed an assessment of the carrying amount of the related intangible assets supporting these products including the LoJack tradename and dealer and customer relationships. Our assessment of the future cash flows generated by these assets concluded that an impairment loss was present. For the fiscal year ended February 28, 2021, we recorded an impairment loss aggregating $1.5 million, which was attributable to $1.0 million of US Dealer relationships and $0.5 million of developed technology. For the fiscal year ended February 29, 2020, we recorded an impairment loss aggregating $17.7 million, which was attributable to $11.5 million of the LoJack Tradename and $6.2 million of US Dealer relationships. $1.5 million and $12.0 million of these impairment losses are included within Net loss from discontinued operations Amortization expense of intangible assets from continuing operations was $4.8 million, $5.9 million and $3.9 million in fiscal years ended, February 28/29, 2021, 2020 and 2019, respectively. Estimated future amortization expense as of February 28, 2021 is as follows (in thousands): 2022 $ 5,541 2023 5,390 2024 4,545 2025 4,430 2026 4,108 Thereafter 13,474 $ 37,488 |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Feb. 28, 2021 | |
Other Assets Noncurrent Disclosure [Abstract] | |
OTHER ASSETS | NOTE 10 – OTHER ASSETS Other assets consist of the following (in thousands): February 28/29, 2021 2020 Deferred product cost $ 4,850 $ 7,564 Deferred compensation plan assets 7,141 6,041 Lease receivables, non-current 10,403 5,992 Prepaid commissions 2,438 2,318 Other 2,337 2,599 $ 27,169 $ 24,514 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, COLI 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 September 2015, we invested $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 was accounted for under the equity method since we had significant influence over the investee. Since September 2015 through March 2019, we made loans aggregating $8.0 million. We recognized equity in net loss of $5.3 million. 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 fiscal 2019 and $0.5 million in March 2019. |
FINANCING ARRANGEMENTS
FINANCING ARRANGEMENTS | 12 Months Ended |
Feb. 28, 2021 | |
Debt Disclosure [Abstract] | |
FINANCING ARRANGEMENTS | NOTE 11 – FINANCING ARRANGEMENTS Balances attributable to our financing arrangements consist of the following (in thousands): Maturity Effective February 28/29, Date Interest Rate 2021 2020 2020 Convertible Notes, 1.625% fixed rate May 15, 2020 6.20% $ - $ 27,599 2025 Convertible Notes, 2.00% fixed rate August 1, 2025 7.56% 230,000 230,000 Due to factors under revenue assignments 2020 - 2024 4.70% 8,081 14,371 Total term debt 238,081 271,970 Unamortized discount and issuance costs (51,610 ) (61,763 ) Less: current portion of long-term term debt (4,317 ) (33,119 ) Long-term debt, net of current portion $ 182,154 $ 177,088 The effective interest rates for the convertible notes include the interest on the notes and debt discount. As of February 28, 2021 and February 29, 2020, the fair value of the convertible notes, based on Level 2 inputs, was $212 million and $225 million, respectively. 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 was extended on March 27, 2020 with a new maturity date of March 30, 2022. At our election, the borrowings under this revolving credit facility bear interest at (a) for base rate loans, a base rate based on the highest of (i) 0%, (ii) the rate of interest publicly announced by JP Morgan Chase Bank, N.A. (the “Agent”) as its prime rate in effect at its principal office in New York City, (iii) the overnight bank funding rate as determined by the Federal Reserve Bank of New York plus 0.50% and (iv) the LIBOR-based rate for a one-month interest period on such day plus 1%; or (b) for Eurodollar loans, the higher of (x) 1.00% and (y) the LIBOR-based rate for one, three or six months (as selected by the Company) for Eurodollar deposits. An applicable margin is added based on the Company’s senior leverage ratio, ranging from 1.50% to 2.00% for base rate loans, and from 2.50% to 3.00% for Eurodollar loans. We will also pay a commitment fee based on our senior leverage ratio ranging from 0.40% to 0.50%, payable quarterly in arrears, on the average daily unused amount of the Credit Facility. Amounts owing under the credit agreement and related credit documents are guaranteed by the Company and certain of its subsidiaries. We have also granted security interests in substantially all of our respective assets to secure these obligations. The net proceeds available under the revolving credit facility can be used for repayment of existing debt, working capital and general corporate purposes. In May 2020, we borrowed $20 million under the revolving credit facility, which was fully repaid with the accrued interest of $0.1 million on November 19, 2020. There were no borrowings outstanding under this revolving credit facility at February 28, 2021. 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 (Adjusted EBITDA) to interest ratio, a minimum senior indebtedness ratio and a total indebtedness coverage ratio, all measured on a quarterly basis. Through fiscal year 2021 and as of February 28, 2021, we were in compliance with our covenants under the revolving credit facility. Convertible Senior Unsecured Notes We have $230.0 million aggregate principal amount of convertible senior unsecured notes due in August 2025 (“2025 Convertible 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. 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 difference 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 are 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, 2021, 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 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 convertible notes that were senior unsecured obligations and with interest at a rate of 1.625% per year payable in cash on May 15 and November 15 of each year (“2020 Convertible Notes”). In July 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 was 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. February 28, 2021 In October and November 2019, we entered into separate, privately negotiated purchase agreements to repurchase approximately $94.9 million in aggregate principal amount of these notes for $94.7 million. The repurchase is accounted for as an extinguishment of debt. The entire repurchase price of $94.7 million was considered as the fair value of the liability as the equity component was de minimis. The fair value of the liability was determined using a discounted cash flow analysis at a market interest rate for nonconvertible debt 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 $92.3 million, resulting in a loss on extinguishment of debt of $2.4 million. On May 15, 2020, we repaid the remaining principal balance of $27.6 million of the 2020 Convertible Notes. 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 initially 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. 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”, we will in certain circumstances increase the conversion rate for a specific period of time. Additionally, upon the occurrence of a “fundamental change”, 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, 2021, 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 and capped call will be deductible for income tax purposes as original issue discount interest over the term of Notes. Synovia Revenue Assignments In conjunction with the acquisition of Synovia on April 12, 2019, we assumed the rights and obligations under certain revenue assignment arrangements with several financial institutions (the “Factors”). Pursuant to the terms of the arrangements, Synovia sold to the Factors rights to all future revenues of certain subscription contracts on a non-recourse basis for credit approved accounts. The sales price paid represents a percentage of the total contract value (generally 80%) due to Synovia at the beginning of the contract, with the total customer contract balance to be paid by the customers to the Factors over the contract period. The cost of the transaction was recorded as a contra-liability, and was recognized as interest expense over the term of the subscription contract using the effective interest method, while the assigned customer obligation is amortized to subscription revenues using the straight-line method. These arrangements with the Factors met the criteria in ASC 470-10-25, Sales of Future Revenues or Various Other Measures of Income Business Combination Paycheck Protection Program On April 16, 2020, we received proceeds from a loan in the amount of $10 million (the “PPP Loan”) from JPMorgan Chase Bank, N.A., as lender, pursuant to the Small Business Association (“SBA”) Paycheck Protection Program (the “PPP”) of the Coronavirus Aid, Relief, and Economic Security Act. At the time we applied for the PPP loan, we believed that we qualified to receive the funds pursuant to the PPP. On April 23, 2020, the SBA, in consultation with the Department of Treasury, issued new guidance that created uncertainty regarding the qualification requirements for a PPP loan. Out of an abundance of caution and in light of the new guidance, we repaid in full the principal and interest on the PPP Loan on April 27, 2020. |
RESTRUCTURING CHARGES
RESTRUCTURING CHARGES | 12 Months Ended |
Feb. 28, 2021 | |
Restructuring And Related Activities [Abstract] | |
RESTRUCTURING CHARGES | NOTE 12 – RESTRUCTURING CHARGES In 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 were 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. To date, total restructuring charges are $17.2 million, comprised primarily of $10.7 million in severance and employee related costs, and $6.4 million for vacant office and manufacturing facility as well as terminated tower infrastructure leases. Restructuring charges related to vacant office and manufacturing facility space were due primarily to the vacancy in Canton, Massachusetts of $3.3 million. Substantially all charges related to severance and employee costs were under the Telematics Products reportable segment. The following table summarizes the charges resulting from the implementation of the restructuring plan for the fiscal years ended February 28/29, 2021, 2020 and 2019 (in thousands): Years ended February 28/29, 2021 2020 2019 Personnel Facilities Total Personnel Facilities Total Personnel Facilities Total Cost of revenue $ 530 $ 850 $ 1,380 $ 493 $ 1,853 $ 2,346 $ 1,585 $ 1,001 $ 2,586 Research and development 33 - 33 222 - 222 412 803 1,215 Selling and marketing 820 - 820 601 - 601 1,228 1,388 2,616 General and administrative 2,521 - 2,521 1,231 - 1,231 1,050 548 1,598 Total $ 3,904 $ 850 $ 4,754 $ 2,547 $ 1,853 $ 4,400 $ 4,275 $ 3,740 $ 8,015 Total restructuring charge of $2.2 million, $1.9 million, and $5.7 million for fiscal years ended February 28/29, 2021, 2020 and 2019 were included as part of the discontinued operations, respectively. The following table summarizes the activity resulting from the implementation of the restructuring plan within other current and non-current liabilities (in thousands): Personnel Facilities Total Restructuring liabilities as of February 28, 2019 $ 2,779 $ 2,977 $ 5,756 Cease-use liability reclassified as reduction of Operating lease right-of-use assets - (2,977 ) (2,977 ) Charges 2,547 644 3,191 Payments (2,943 ) (285 ) (3,228 ) Restructuring liabilities as of February 29, 2020 $ 2,383 $ 359 $ 2,742 Charges 3,905 850 4,755 Payments (3,651 ) (318 ) (3,969 ) Restructuring liabilities as of February 28, 2021 $ 2,637 $ 891 $ 3,528 The restructuring liabilities related to personnel were included in Accrued payroll and employee benefits Operating lease right-of-use assets |
LEASES
LEASES | 12 Months Ended |
Feb. 28, 2021 | |
Leases [Abstract] | |
LEASES | NOTE 13 – LEASES On March 1, 2019, we adopted Accounting Standard Codification 842, Leases We have various non-cancelable operating leases for our offices in California, Texas, Massachusetts, Indiana and Minnesota in the United States, and Italy, Mexico and the United Kingdom. We also have various non-cancelable operating leases for towers and vehicles throughout the United States, Italy and Mexico. These leases expire at various times through 2028. Certain lease agreements contain renewal options, rent abatement, and escalation clauses that are factored into our determination of lease payments when appropriate. During the third quarter of fiscal 2020, we identified certain immaterial adjustments related to amounts recorded for the adoption of ASC 842. The revised amounts for ROU assets and lease liabilities as of March 1, 2019 are $25.6 million and $29.1 million, respectively. The table below presents lease-related assets and liabilities recorded on the consolidated balance sheet (in thousands): Classification February 28, 2021 February 29, 2020 Assets Operating lease right-of-use assets Operating lease right-of-use assets $ 14,273 $ 20,626 Liabilities Operating lease liabilities (current) Other current liabilities $ 4,926 $ 4,662 Operating lease liabilities (noncurrent) Operating lease liabilities 17,061 24,279 Total lease liabilities $ 21,987 $ 28,941 As a result of the adoption of ASC 842, effective March 1, 2019, the balance of the restructuring liability related to certain facility leases have been reclassified as a reduction of the Operating lease right-of-use assets in our consolidated balance sheet. During fiscal year ended February 29, 2020, we further impaired our operating lease right-of-use assets for the Canton, Massachusetts facility by $1.2 million, which is now considered part of the discontinued operations. Additionally, we also recorded an impairment loss aggregating $0.7 million and $0.6 million, which represented total operating lease right-of-use assets from various tower leases that were terminated or planned to be terminated as well as ceased use office facilities as of February 28/29, 2021 and 2020, respectively. Impairment loss relating to tower leases are considered as part of the discontinued operations (see Note 2) and the remaining balance is included within the total Impairment loss Lease Costs The following lease costs were included in our consolidated statements of comprehensive income (loss) as follows (in thousands): Year Ended February 28, 2021 Year Ended February 29, 2020 Operating lease cost $ 6,842 $ 6,497 Short-term lease cost 168 848 Variable lease cost 442 315 Total lease cost $ 7,452 $ 7,660 Supplemental Information The table below presents supplemental information related to operating leases during the fiscal year ended February 28, 2021 (in thousands, except weighted-average information): Year Ended February 28, 2021 Year Ended February 29, 2020 Cash paid for amounts included in the measurement of operating lease liabilities $ 7,549 $ 6,624 Right-of-use assets obtained in exchange for new operating lease liabilities $ 2,513 $ 4,071 Weighted average remaining lease term 4.7 years 7.3 years Weighted average discount rate 5.37% 5.45 % Undiscounted Cash Flows The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities recorded on the consolidated balance sheet as of February 28, 2021 (in thousands): 2022 $ 5,635 2023 5,208 2024 4,795 2025 3,107 2026 2,322 Thereafter 1,922 Total minimum lease payments 22,989 Less imputed interest (1,002 ) Present value of future minimum lease payments 21,987 Less current obligations under leases (4,926 ) Long-term lease obligations $ 17,061 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Feb. 28, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 14 – INCOME TAXES Our income (loss) before income taxes and equity in net loss of affiliate consists of the following (in thousands): Year Ended February 28/29, 2021 2020 2019 Domestic $ (16,964 ) $ (31,381 ) $ 24,359 Foreign (3,632 ) 813 2,488 Total income (loss) before income taxes and equity in net loss of affiliate $ (20,596 ) $ (30,568 ) $ 26,847 The components of income tax benefit (provision) consists of the following (in thousands): Year Ended February 28/29, 2021 2020 2019 Current: Federal $ - $ - $ 404 State 40 (273 ) (256 ) Foreign (602 ) (1,629 ) (62 ) Total current (562 ) (1,902 ) 86 Deferred: Federal (59 ) (12,852 ) (2,621 ) State (18 ) (10,645 ) (1,295 ) Foreign 78 4,945 4,442 Total deferred 1 (18,552 ) 526 Income tax benefit (provision) $ (561 ) $ (20,454 ) $ 612 The income tax benefit (provision) differs from the amount obtained by applying the statutory rate as follows (in thousands): Year Ended February 28/29, 2021 2020 2019 Income tax benefit (provision) at U.S. statutory federal rate $ 4,325 $ 6,420 $ (5,638 ) State income tax benefit (provision), net of federal income tax effect 602 117 (1,412 ) Foreign taxes benefit (provision) 900 (50 ) (31 ) U.S. taxes on foreign income (306 ) (571 ) - Valuation allowance reductions (increases) (5,825 ) (27,726 ) 5,915 Research and other tax credits 1,322 2,594 1,658 Tax benefits on vested and exercised equity awards (851 ) (606 ) 758 Non-deductible expenses (655 ) (697 ) (229 ) Other, net (73 ) 65 (409 ) Total income tax benefit (provision) $ (561 ) $ (20,454 ) $ 612 The components of net deferred income tax assets for income tax purposes are as follows (in thousands): February 28/29, 2021 2020 Net operating loss carryforwards $ 27,194 $ 22,500 Depreciation, amortization and impairments (2,117 ) (5,353 ) Research and development credits 21,917 20,603 Stock-based compensation 2,944 2,556 Other tax credits 2,197 2,172 Capitalized research costs 2,638 3,389 ROU asset (3,528 ) (5,174 ) Lease liabilities 5,472 7,455 Payroll and employee benefit accruals 1,984 2,077 Allowance for doubtful accounts 1,163 965 Other accrued liabilities 4,743 4,887 Convertible debt (8,185 ) (9,477 ) Other, net 5,137 3,275 Gross deferred tax assets 61,559 49,875 Valuation allowance (56,848 ) (45,560 ) Net deferred tax assets $ 4,711 $ 4,315 Reported as: Deferred tax assets $ 4,889 $ 4,437 Deferred tax liabilities (178 ) (122 ) Net deferred tax assets $ 4,711 $ 4,315 As of February 28, 2021, we maintained a valuation allowance with respect to certain of our deferred tax assets relating primarily to net operating losses and tax credits in domestic and certain foreign jurisdictions for which we cannot assert that they are more likely than not going to be realized. For fiscal year 2021, we increased the valuation allowance against our domestic and foreign net deferred tax assets by approximately $9.2 million and $2.1 million, respectively. For fiscal year 2020, we considered positive and negative evidence, in assessing our ability to realize our domestic net deferred tax assets and concluded that it is more likely than not that our domestic net deferred tax assets will not be realized. As such, we increased the valuation allowance against our domestic net deferred tax asset by approximately $33.0 million for fiscal year 2020. For fiscal year 2020, we increased the non-US valuation allowance against our net deferred tax assets related to net operating loss carryforwards by approximately $1.6 million. The amount of the net deferred tax assets considered realizable, however, could be adjusted in future periods in the event sufficient evidence is present to support a conclusion that it is more likely than not that all or a portion of our domestic deferred tax assets will be realized. At February 28, 2021, we had net operating loss carryforwards of approximately $50.4 million, $48.4 million and $57.1 million for federal, state and foreign purposes, respectively, expiring at various dates through fiscal year 2039. Approximately $18.6 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, 2021, we had R&D tax credit carryforwards of $10.4 million and $8.4 million for federal and state income tax purposes, respectively. The federal R&D tax credits expire at various dates through fiscal year 2040. A substantial portion of the state R&D tax credits have no expiration date. As of February 28, 2021, we had foreign tax credit carryforwards of $1.9 million for federal income tax purposes which expire beginning in fiscal year 2022 through fiscal year 2030. We accounted for stock-based compensation pursuant to ASU 2016-09 and we have tax deductions on exercised stock options and vested restricted stock awards that did not exceed stock compensation expense amounts recognized for financial reporting purposes in fiscal 2021 and 2020. The gross shortfall was $ 4.1 million and $ million in fiscal 2021 and 2020 , respectively . In fiscal 2019, there were excess tax deductions of $ 2.9 million . Under ASU 2016-09, 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 $ 1.8 million, $ 2.2 million, and $ 3.2 million at February 28/ 29 , 2021, 2020 and 2019 , respectively, for which we have not yet recognized an income tax benefit for financial reporting purposes. At February 28, 2021, we decreased the uncertain tax benefits related to certain foreign net operating loss carryforwards and domestic tax credits by $0.4 million. At February 29/28, 2020 and 2019, we decreased the uncertain tax benefits related to certain foreign net operating loss carry forwards and domestic tax credits by $1.0 million and $0.1 million, respectively. If total uncertain tax benefits were realized in a future period, it would result in a tax benefit of $1.8 million. As of February 28/29, 2021 and 2020, 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 $0.1 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 29, 2020. Year Ended February 28/29, 2020 2019 2018 Gross amounts of unrecognized tax benefits as of the beginning of the period $ 2,172 $ 3,201 $ 1,029 Increases related to prior period tax positions - - 2,241 Decreases related to prior period tax positions (422 ) (1,029 ) (69 ) Gross amounts of unrecognized tax benefits as of the end of the period $ 1,750 $ 2,172 $ 3,201 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, Mexico, Japan, Hong Kong and New Zealand. Certain income tax returns for the years 2016 through 2019 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 2015 to the present. For the fiscal years ended February 28/29, 2021 and 2020, we assert our intention to indefinitely reinvest foreign earnings in all our non-U.S. subsidiaries and accordingly, recorded no deferred income taxes on outside basis differences . |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Feb. 28, 2021 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 15 – 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 Fiscal 2019 2,496,422 $ 19.63 $ 49,000,000 There were no repurchases for the fiscal years ended February 28/29, 2021 and 2020. 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. There are two enrollment periods each year that commence on February 1st and August 1st and lasts for six months. Stock-based compensation expense related to the ESPP Plan for the years ended February 28/29, 2021 and 2020 were $0.7 million and $0.5 million, respectively. 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 2004 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 2004 Plan is to enhance our ability to attract, motivate, and retain the services of qualified employees, officers and directors. Any stock options under the 2004 Plan will have a term of not more than 10 years and the vesting of the awards will be at the discretion of the Human Capital 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, 2021, there were 854,578 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, 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 Granted 171 11.11 Exercised (154 ) 2.44 Forfeited or expired - - Outstanding at February 29, 2020 1,071 $ 14.65 6.2 Granted - - Exercised (141 ) 4.07 Forfeited or expired (152 ) 17.52 Outstanding at February 28, 2021 778 $ 16.01 6.0 $ 130 Exercisable at: February 28, 2019 698 $ 10.22 4.4 $ 3,360 February 29, 2020 633 $ 13.21 4.7 $ 850 February 28, 2021 507 $ 15.80 5.2 $ 123 Year ended February 28/29, 2021 2020 2019 Weighted average grant date fair value of stock options granted during the year $ - $ 4.82 $ 11.94 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 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 29/28, Black-Scholes Valuation Assumptions 2020 2019 Expected life (years) 6 2 - 6 Expected volatility 43% 36% - 43% Risk-free interest rates 1.9% 2.5% - 2.9% Expected dividend yield 0% 0% No options were granted in fiscal year 2021. For the years ended February 29/28, 2020 and 2019, 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 for the fiscal years ended February 28/29, 2021, 2020 and 2019 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, 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 Granted 1,597 11.28 Vested (521 ) 18.67 177 Forfeited (368 ) 16.27 Outstanding at February 29, 2020 2,215 $ 14.47 Granted 1,885 7.91 Vested (656 ) 15.07 214 Forfeited (391 ) 11.95 Outstanding at February 28, 2021 3,053 $ 10.61 Stock-based compensation expense is included in the following captions of the consolidated statements of comprehensive income (loss) (in thousands): Year Ended February 28/29, 2021 2020 2019 Cost of revenues $ 501 $ 526 $ 482 Research and development 2,690 2,213 1,342 Selling and marketing 2,333 2,647 2,663 General and administrative 4,833 5,281 5,052 Restructuring 1,007 - - $ 11,364 $ 10,667 $ 9,539 As of February 28, 2021, there was $22.8 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 3.8 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 $9.4 million, $9.6 million and $8.6 million for fiscal years ended February 28/29, 20201, 2020, and 2019, respectively. In connection with these equity awards, the excess stock compensation tax deductions were $0, $0 and $2.9 million for fiscal years ended February 28/29, 2021, 2020, and 2019, respectively. |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 12 Months Ended |
Feb. 28, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | NOTE 16 – 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 28/29, 2021 2020 2019 Income (loss) from continuing operations before equity in net loss of affiliate and related impairment loss $ (21,157 ) $ (51,022 ) $ 27,459 Equity in net loss of affiliate and related impairment loss - (530 ) (6,787 ) Net income (loss) from continuing operations (21,157 ) (51,552 ) 20,672 Net loss from discontinued operations, net of tax (35,152 ) (27,752 ) (2,274 ) Net income (loss) $ (56,309 ) $ (79,304 ) $ 18,398 Basic weighted average number of common shares outstanding 34,389 33,670 34,589 Dilutive effect of stock options and restricted stock units computed on treasury stock method - - 705 Diluted weighted average number of common shares outstanding 34,389 33,670 35,294 Basic net income (loss) per common share: Income (loss) from continuing operations $ (0.62 ) $ (1.54 ) $ 0.60 Income (loss) from discontinued operations (1.02 ) (0.82 ) (0.07 ) Net income (loss) $ (1.64 ) $ (2.36 ) $ 0.53 Diluted net income (loss) per common share: Income (loss) from continuing operations $ (0.62 ) $ (1.54 ) $ 0.59 Income (loss) from discontinued operations (1.02 ) (0.82 ) (0.07 ) Net income (loss) $ (1.64 ) $ (2.36 ) $ 0.52 All outstanding stock options and restricted stock-based awards in the amount of 0.7 million and 0.3 million, respectively, were excluded from the computation of diluted earnings per share for the fiscal year ended February 28, 2021, because the effect of inclusion would be antidilutive. Similarly, for the fiscal year ended February 29, 2020, all outstanding stock options and restricted stock-based awards in the amount of 0.9 million and 0.7 million, respectively, were excluded from the computation of diluted earnings per share because the effect would be antidilutive. Shares subject to anti-dilutive stock options and restricted stock-based awards of 1.9 million 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 convertible senior notes. It is our intent to settle the principal amount of these notes with cash, and therefore, we use the treasury stock method for calculating any potential dilutive effect of the conversion option on diluted earnings (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, 2021 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
COMPREHENSIVE INCOME (LOSS) | NOTE 17 – COMPREHENSIVE INCOME (LOSS) The following table shows the changes in our accumulated other comprehensive income (loss) for the fiscal years ended February 28/29, 2021, 2020 and 2019 (in thousands): Cumulative Foreign Currency Translation Unrealized Gains/Losses on Marketable Securities Total Balances at February 28, 2018 $ (628 ) $ 429 $ (199 ) Other comprehensive income (loss), net of tax (33 ) (429 ) (462 ) Balances at February 28, 2019 (661 ) - (661 ) Other comprehensive income (loss), net of tax (714 ) - (714 ) Balances at February 29, 2020 (1,375 ) - (1,375 ) Other comprehensive income (loss), net of tax 390 - 390 Balances at February 28, 2021 $ (985 ) $ - $ (985 ) |
EMPLOYEE RETIREMENT PLAN
EMPLOYEE RETIREMENT PLAN | 12 Months Ended |
Feb. 28, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
EMPLOYEE RETIREMENT PLAN | NOTE 18 – 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. 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 $1.9 million, $2.1 million and $2.1 million in fiscal years ended February 28/29, 2021, 2020 and 2019, respectively. |
OTHER FINANCIAL INFORMATION
OTHER FINANCIAL INFORMATION | 12 Months Ended |
Feb. 28, 2021 | |
Other Financial Information [Abstract] | |
OTHER FINANCIAL INFORMATION | NOTE 19 – OTHER FINANCIAL INFORMATION Supplemental Balance Sheet Information Other current liabilities consist of the following (in thousands): February 28/29, 2021 2020 Operating lease liabilities $ 4,926 $ 4,662 Litigation reserve 2,200 1,500 Customer deposits 2,472 1,377 Warranty reserves 1,257 987 Other 6,525 5,973 $ 17,380 $ 14,499 Other non-current liabilities consist of the following (in thousands): February 28/29, 2021 2020 Deferred revenue $ 19,893 $ 24,644 Deferred compensation plan liability 6,992 5,919 Deferred tax liability 178 122 Other 3,424 1,551 $ 30,487 $ 32,236 Supplemental Income Statement Information Interest expense consists of the following (in thousands): Year Ended February 28/29, 2021 2020 2019 Interest expense on 2020 Convertible Notes: Stated interest at 1.625% per annum $ 93 $ 1,464 $ 2,308 Amortization of discount and issuance costs 289 4,336 6,484 382 5,800 8,792 Interest expense on 2025 Convertible Notes: Stated interest at 2.00% per annum 4,587 4,613 2,811 Amortization of discount and issuance costs 9,378 8,750 4,980 13,965 13,363 7,791 Other interest expense 1,140 933 143 Total interest expense $ 15,487 $ 20,096 $ 16,726 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 28/29, 2021 2020 2019 Cash payments for interest and income taxes: Interest expense paid $ 5,320 $ 6,762 $ 5,057 Income tax paid, net of refunds $ 643 $ 220 $ 964 Non-cash investing and financing activities: Accrued liability for capital expenditures $ (604 ) $ (283 ) $ 881 Conversion of receivables to equity investment $ - $ - $ 300 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 Balance at end of year Allowance for doubtful accounts: Fiscal 2019 858 922 (577 ) 1,203 Fiscal 2020 1,203 2,214 (1,153 ) 2,264 Fiscal 2021 2,264 2,163 (769 ) 3,658 Warranty reserve: Fiscal 2019 5,734 1,126 (5,462 ) 1,398 Fiscal 2020 1,398 729 (1,140 ) 987 Fiscal 2021 987 2,729 (2,459 ) 1,257 Deferred tax assets valuation allowance: Fiscal 2019 16,844 799 (6,714 ) 10,929 Fiscal 2020 10,929 34,631 - 45,560 Fiscal 2021 45,560 11,288 - 56,848 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Feb. 28, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 20 – COMMITMENTS AND CONTINGENCIES Legal Proceedings Omega patent infringement claim In December 2013, a patent infringement lawsuit was filed against the Company by Omega Patents, LLC (“Omega”), a non-practicing entity. Omega alleged that certain of our vehicle tracking products infringed on four patents owned by Omega, (1) U.S. Patent Nos. 6,346,876 (the “’876 patent”), 6,756,885 (the “’885 patent”), 7,671,727 (the “’727” patent), and 8,032,278 (the “’278 patent”). On February 24, 2016, a jury in the U.S. District Court for the Middle District of Florida awarded Omega damages of $2.975 million, for which we recorded a reserve of $2.9 million in the fiscal 2016 fourth quarter. Following trial, Omega brought a motion seeking an injunction and requesting the court to exercise its discretion to treble damages and assess attorneys’ fees. On April 5, 2017, the court denied the request for an injunction, but granted the request for treble damages in the aggregate amount of $8.9 million. On April 24, 2017 the court awarded attorneys’ fees, costs, and prejudgment interest in the aggregate amount of $1.2 million, and directed the payment of royalties by CalAmp to Omega for any infringing sales after February 24, 2016 at a royalty rate to be determined. On May 22, 2017, we filed motions with the court seeking judgment as a matter of law and for a new trial. 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 as a reduction of general and administrative expenses in our consolidated statement of comprehensive income (loss) for the fiscal year ended February 28, 2019. The new trial began on September 23, 2019 in the U.S. District Court for the Middle District of Florida (“Trial Court”), and on September 30, 2019, the jury determined that the Company infringed two of the four patents; however, the jury found that there was no willful infringement. On the first patent (the ’727 patent), the jury found only one unit infringed, and assessed $1.00 in damages. On the second patent (the ’278 patent), the jury found direct infringement and awarded damages at a rate of $5.00 per unit, for total damages of approximately $4.6 million. On November 26, 2019 the Trial Court entered judgment, awarding Omega damages of $4.6 million, together with pre-judgment interest in the amount of $0.8 million through September 30, 2019. We filed motions with the Trial Court seeking judgment as a matter of law (“JMOL”) in our favor and, alternatively, a new trial. On March 20, 2020, the Trial Court denied our motion for JMOL, a new trial, and remittitur of damages. Also, on March 20, 2020, the Trial Court denied Omega’s motion for a new trial on willfulness. On April 1, 2020, the Trial Court denied Omega’s motion to enhance the royalty rate beyond the jury’s award of $ per unit and motion to conduct post-trial discovery on CalAmp’s other OBD-II compliant LMUs. Also on April 1, 2020, the Trial Court denied Omega’s motion to conduct post-trial discovery on CalAmp’s other OBD-II compliant LMUs. On April 3, 2020, the Trial Court denied Omega’s final motion regarding infringement of the VPODs . On April 30, 2020, we filed a notice of appeal at the Federal Circuit. Also on April 30, 2020, Omega filed notices of cross-appeal at the Federal Circuit . On March 22, 2021, the Federal Circuit scheduled argument to be heard by videoconference on Thursday, May 6, 2021 at 10:00 a.m. EDT, with the date subject to change . In connection with this claim, we have accrued our best estimate of the probable liability of $2.2 million as a litigation reserve related to this matter based on reasonable royalty rates for similar technologies. It is reasonably possible that the prior judgment awarding Omega damages of as much as $4.6 million, together with $0.8 million of pre-judgment interest, could be upheld, which would result in losses of up to $3.2 million in excess of amounts we have accrued related to this matter . We also initiated ex parte Philips patent infringement claim On December 17, 2020, Koninklijke Philips N.V. (“Philips”) filed four separate legal actions against us, and several other companies, accusing the companies of infringing Philips’s 3G and 4G wireless standard-essential patents: (1) first, in the U.S. District Court, District of Delaware, Philips v. Quectel Wireless Solutions Co. Ltd. (“Quectel”), CalAmp, Xirgo Technologies, LLC (“Xirgo”), and Laird Connectivity, Inc. (“Laird”), Philips alleges that our location monitoring units infringe certain claims of U.S. Patent No. 7,831,271 (“the ’271 patent”), U.S. Patent No. 8,199,711 (“the ’711 patent”), U.S. Patent No. 7,554,943 (“the ’943 patent”), and U.S. Patent No. 7,944,935 (“the ’935 patent”) (all four patents collectively, the “Patents”); (2) second, in the U.S. District Court, District of Delaware, Philips v. Telit Wireless Solutions, Inc., Telit Communications Plc, (collectively, “Telit”), and CalAmp, Philips alleges that our location monitoring units and certain modules therein infringe certain claims of the Patents; (3) third, in the U.S. District Court, District of Delaware, Philips v. Thales DIS AIS USA LLC (F/K/A Gemalto IoT LLC “Gemalto”) F/K/A Cinterion Wireless Modules NAFTA LLC (“Cinterion”)), Thales DIS AIS Deutschland GmbH (F/K/A Gemalto M2M GmbH), Thales USA, Inc., Thales S.A., (collectively, “Thales”), CalAmp, Xirgo, and Laird, Philips alleges that our location monitoring units infringe certain claims of the Patents, and (4) fourth, before The International Trade Commission (“ITC”), Philips v. Quectel, CalAmp, Xirgo, Laird, Thales, Gemalto, Cinterion, and Telit, Philips alleges violations of section 337 of the U.S. Tariff Act based upon our importation into the United States, the sale for importation, and the sale within the United States after importation of certain UMTS (Universal Mobile Telecommunications System) and LTE (Long Term Evolution) cellular communication modules and products containing the same by reason of our location monitoring units that allegedly infringe on certain claims of the Patents, and seeks (a) an investigation and a hearing under the Tariff Act for unlawful importation of allegedly infringing product, (b) an exclusion order excluding entry into the U.S. of all allegedly infringing communication modules, and (c) a permanent cease and desist order barring the importation, marketing, advertising, and sale of allegedly infringing products in the U.S. All four proceedings are currently pending. We intend to defend ourselves vigorously in these actions, and are investigating and/or asserting defenses and positions, including non-infringement, invalidity, and the “public interest factors” that must be considered by the ITC before issuing any exclusion order. If Phillips successfully proves infringement of the Patents, we could be required to pay significant monetary damages and could be precluded from importing into the U.S. certain products containing the allegedly infringing modules. However, we believe that we have strong defense and indemnification claims against our communication module suppliers, and are entitled to have our defense costs and any losses resulting from these proceeding paid by those suppliers, who are co-defendants in these proceedings. While it is not feasible to predict with certainty the outcome of these four legal proceedings, and no specific amount of damages has been identified, we believe that a loss is reasonably possible but not reasonably estimable. Additionally, we believe the ultimate resolution of the proceedings, including indemnification and defense by our module suppliers, will not have a material adverse effect on our consolidated results of operations, financial condition, or cash flows . 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. 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 accrued a contingent liability of $4.0 million and therefore the net effect of the final award was recorded in General & Administrative expenses in our consolidated statements of comprehensive income (loss) for the fiscal year ended February 28, 2019. 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 will have a material adverse effect on our consolidated results of operations, financial condition or cash flows. |
SEGMENT AND GEOGRAPHIC DATA
SEGMENT AND GEOGRAPHIC DATA | 12 Months Ended |
Feb. 28, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT AND GEOGRAPHIC DATA | NOTE 21 – SEGMENT AND GEOGRAPHIC DATA Since the LoJack U.S. SVR Products operating segment is presented as discontinued operations, we now operate under two reportable segments: Telematics Products 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 for the fiscal years presented. Our Telematics Products 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 Products segment revenues consist primarily of stand-alone product sales. Our 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 revenues and 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, 2021 Operating Segments Software & Subscription Services Telematics Products Corporate Expenses Total Revenues $ 129,933 $ 178,654 $ 308,587 Gross profit $ 65,411 $ 56,994 $ 122,405 Gross margin 50.3 % 31.9 % 39.7 % Adjusted EBITDA $ 32,226 $ 4,854 $ (4,974 ) $ 32,106 Year ended February 29, 2020 Operating Segments Software & Subscription Services Telematics Products Corporate Expenses Total Revenues $ 123,460 $ 198,313 $ 321,773 Gross profit $ 56,283 $ 69,210 $ 125,493 Gross margin 45.6 % 34.9 % 39.0 % Adjusted EBITDA $ 21,674 $ 21,763 $ (4,528 ) $ 38,909 Year ended February 28, 2019 Operating Segments Software & Subscription Services Telematics Products Corporate Expenses Total Revenues $ 74,842 $ 236,696 $ 311,538 Gross profit $ 36,412 $ 89,466 $ 125,878 Gross margin 48.7 % 37.8 % 40.4 % Adjusted EBITDA $ 12,429 $ 37,833 $ (5,699 ) $ 44,563 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 primarily on revenue and 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, impairment loss 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 28/29, 2021 2020 2019 Net income (loss) from continuing operations $ (21,157 ) $ (51,552 ) $ 20,672 Investment income (2,119 ) (4,497 ) (5,258 ) Interest expense 15,487 20,096 16,726 Income tax provision (benefits) 561 20,454 (612 ) Depreciation and amortization 22,002 23,312 9,786 Stock-based compensation 10,357 10,667 9,539 Impairment loss and equity in net loss of affiliate - 530 6,787 Loss on extinguishment of debt - 2,408 2,033 Acquisition and integration related expenses - 2,210 935 Non-recurring legal expenses, net of reversal of litigation provision 2,262 6,213 (11,020 ) Gain on LoJack battery performance legal Settlement - - (7,543 ) Restructuring 2,534 2,465 2,299 Impairment losses 825 5,754 - Other 1,354 849 219 Adjusted EBITDA $ 32,106 $ 38,909 $ 44,563 Our CODM does not obtain identifiable assets by segment because our 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 28/29, 2021 2020 2019 United States $ 200,665 $ 222,079 $ 216,191 Europe, Middle East and Africa 58,470 55,185 49,496 South America 27,110 21,235 15,134 Asia and Pacific Rim 12,281 9,166 13,958 All other 10,061 14,108 16,759 $ 308,587 $ 321,773 $ 311,538 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 28/29, 2021, 2020 and 2019 . |
DESCRIPTION OF BUSINESS AND S_2
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Feb. 28, 2021 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business CalAmp Corp. (referred to herein as “CalAmp”, “the Company”, “we”, “our”, or “us”) is a connected intelligence company that helps people and businesses work smarter. We partner with transportation and logistics, industrial equipment, government and automotive industries to deliver insights that enable businesses to make the right decisions. Our applications, platforms and smart devices allow them to track, monitor and recover their vital assets with real-time visibility that reduces costs, maximizes productivity and improves safety. We are a global organization that is headquartered in Irvine, California. Recent Events COVID-19 In March 2020, the World Health Organization declared COVID-19 as a pandemic. The full impact of the COVID-19 pandemic is inherently uncertain at the time of this report. The pandemic has resulted in travel restrictions and in some cases, prohibitions of non-essential activities, disruption and shutdown of businesses and greater uncertainty in global financial markets. Through fiscal 2021, our revenues were negatively impacted by COVID-19 as various small-to-medium customers postponed their capital expenditure due to the pandemic and related macro-economic uncertainties. The pandemic has also created certain global supply imbalances resulting in supply shortages in certain components that we use. It is difficult to predict the extent to which the COVID-19 pandemic will continue to impact our future business or operating results, which is highly dependent on uncertain future developments, including the severity of the continuing pandemic and the actions taken or to be taken by governments and private businesses in relation to its containment. Because our business is dependent on telematics product sales, device installations and related subscription-based services, the ultimate effect of the outbreak may not be fully reflected in our operating results until future periods. We have considered all known and reasonably available information that existed throughout fiscal 2021 and as of February 28, 2021, in making accounting judgements, estimates and disclosures. We are monitoring the potential effects of the health care related and economic conditions of COVID-19 in assessing certain matters including (but not limited to) supply chain disruptions, decreases in customer demand for our products and services, potential longer-term effects on our customer and distribution channels particularly in the U.S. and relevant end markets as well as other developments. If the impact results in longer-term closures of businesses and economic recessionary conditions, we may recognize additional material asset impairments and charges for uncollectible accounts receivable in future periods. Currently, we estimate that the existing cash, future cash flows and available borrowings under our revolving credit facility will provide sufficient cash flows for at least twelve months after the issuance date of the consolidated financial statements. Wind Down and Subsequent Sale of LoJack U.S. SVR Operations On December 16, 2020, our Board of Directors approved a plan for management to commence with the wind down of the LoJack U.S. SVR operations. This business unit has historically provided stolen vehicle recovery (SVR) products operating on a radio frequency allocated by the FCC for domestic automotive dealerships. These products and related services have been provided predominately as a hardware-based offering that no longer aligns with our core strategy. Subsequent to the public announcement of this plan, we received inbound inquiries from certain parties interested in acquiring the business. On January 22, 2021, we received a formal proposal from Spireon Holdings, L.P. (“Spireon”) to acquire the LoJack U.S. and Canadian SVR (“LoJack North America”) business for a purchase price of $8.0 million. Effective March 15, 2021, the Company and Spireon entered into a purchase agreement pursuant to which we sold certain assets and transferred certain liabilities of the LoJack North America business to Spireon. Since the LoJack North America operations were deemed a business that met the held for sale criteria under ASC 205-20-45, Presentation of Financial Statements – Discontinued Operations Discontinued Operations Unless otherwise indicated, the financial disclosures and related information provided herein relate to our continuing operations and we have recast prior period amounts. Acquisitions On February 25, 2019, we completed our acquisition of Tracker Network (UK) Limited (“Tracker UK”), a LoJack licensee and a market leader in stolen vehicle recovery (“SVR”) telematics services across the United Kingdom, for a cash purchase price of approximately $13.0 million. On March 18, 2019, we acquired Car Track, S.A. de C.V. (“LoJack Mexico”), the exclusive licensee of LoJack technology for the Mexican market and former customer. We purchased the 87.5% of the LoJack Mexico shares not currently owned by us for a purchase price, net of cash on hand, of approximately $13.0 million. 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 $49.8 million. Synovia was a customer prior to our acquisition. These acquisitions expand our fleet management and vehicle safety services portfolio and accelerate our transformation to high-value subscription-based services. Since the LoJack U.S. SVR Products operating segment is presented as discontinued operations, we now operate under two reportable segments – Telematics Products and Software & Subscription 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. The financial position and operating results of the LoJack North America operations have been reported as discontinued operations in the consolidated financial statements for the current as well as prior comparative periods. 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 allowances for doubtful accounts; charges for excess and obsolete inventory; deferred income tax asset valuation allowances; goodwill and other long-lived assets; intellectual property and accrued royalties; stock-based compensation; legal contingencies and revenue recognition. The current COVID-19 pandemic and general economic environment, and our supplier and customer concentrations also increase the degree of uncertainty inherent in these estimates and assumptions. |
Revenue Recognition and Related Judgements | Revenue Recognition and Related Judgements We recognize revenue under ASC 606, Revenue from Contracts with Customers • 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. Products . 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. Software-as-a-Service (“SaaS”) . We recognize the following revenues and related cost of revenues in our revenues and cost of revenues because we enter into arrangements that combine various hardware devices as well as installation and notification services that are provided over a stipulated service period. Our integrated SaaS-based solutions for our fleet management 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 through our software applications. The transaction price for a typical SaaS arrangement includes the price for the customized device, installation and application subscriptions. We have applied our judgment in determining that these integrated arrangements typically represent single performance obligations satisfied over time. Accordingly, we defer the recognition of revenue for the customized devices that only function with our applications and are sold only on an integrated basis with our proprietary applicable subscriptions. Such customized devices and the application services are not sold separately. In such circumstances, the associated device related costs are recorded as deferred costs on 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 revenue and deferred 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 is four years in the fleet management vertical. In certain fleet management contracts, we provide devices as part of the subscription contracts but we retain control of such devices. Under such arrangements, the cost of the devices is capitalized as property and equipment and depreciated over the estimated useful life of four to five years. The related subscription revenues of these arrangements are recognized as services are rendered. 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. Accessories may also be sold to these customers. We recognize revenue for sales of accessories upon transfer of control to the customer based on estimated stand-alone selling prices. In certain customer arrangements, we sell or lease vehicle location devices together with related monitoring services as part of the contractual arrangement. The devices leased to our customers are capitalized as property and equipment and are being depreciated over the life of the devices. From time to time we sell devices and monitoring services separately to customers and sell similar devices on a stand-alone basis. Accordingly, we recognize revenues for the sales of the devices upon transfer of control to the customer and recognize revenue for the related monitoring services over the service period. The allocation of the transaction price is based on estimated stand-alone selling prices for the devices and the monitoring services. Deferred revenues consist primarily of the deferred amounts on integrated SaaS solutions and advance payments for monitoring services. Professional Services . We also provide various professional services to customers. These services include project management, engineering services and installation services, 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. 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 consolidated financial statements. During fiscal year ended February 28, 2021, we recognized $33.9 million in revenue from the deferred revenue balance of $57.1 million as of March 1, 2020. Certain incremental costs of obtaining a contract with a customer consist of sales commissions, which are recognized on a straight-line basis over the life of the corresponding contracts. Prepaid sales commissions included in and amounted to $2.1 million and $2.4 million, respectively, as of February 28, 2021. Prepaid sales commissions in are expected to be amortized within the next 12 months. We disaggregate revenue from contracts with customers into reportable segments, geography, type of goods and services and timing of revenue recognition. See Note 21 for our revenue by segment and geography. The disaggregation of revenue by type of goods and services and by timing of revenue recognition is as follows (in thousands): Year Ended February 28/29, 2021 2020 2019 Revenue by type of goods and services: Telematics devices and accessories $ 193,486 $ 214,374 $ 246,452 Rental income and other services 17,844 21,587 13,591 Recurring application subscriptions 97,257 85,812 51,495 Total $ 308,587 $ 321,773 $ 311,538 Revenue by timing of revenue recognition: Revenue recognized at a point in time $ 209,902 $ 232,971 $ 254,054 Revenue recognized over time 98,685 88,802 57,484 Total $ 308,587 $ 321,773 $ 311,538 Telematics devices and accessories 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. Remaining performance obligations from continuing operations represents contracted revenue that has not yet been recognized, which includes deferred revenue on our consolidated balance sheets and unbilled amounts that will be recognized as revenue in future periods. As of February 28, 2021 and February 29, 2020, we have estimated remaining performance obligations for contractually committed revenues of $145.1 million and $129.4 million respectively. As of February 28, 2021, we expect to recognize approximately 50% in fiscal 2022 and 22% in fiscal 2023. As of February 29, 2020, we expected to recognize approximately 44% in fiscal 2021 and 26% in fiscal 2022. 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. Revision of Previously Issued Consolidated Financial Statements . Subsequent to the issuance of the consolidated financial statements for the year ended February 29, 2020, we concluded that the presentation of revenues and cost of revenues should be adjusted to present product and service revenues and the related cost of revenues for each separately in accordance with SEC Regulation S-X, Rule 5-03(b). Additionally, certain historical information in the notes to the consolidated financial statements have been revised to reflect the impact of these and other classification corrections. We have determined that the correction of these classification errors is not material to the previously issued consolidated financial statements. The following table summarizes the impact of the immaterial adjustments. Year ended February 29, 2020 As Reported Reclassification for Discontinued Operations Adjustment As Corrected and Reclassified Revenues: Products $ 241,212 $ (37,112 ) $ 10,274 $ 214,374 Application subscriptions and other services 124,895 (7,222 ) (10,274 ) 107,399 Total revenues $ 366,107 $ (44,334 ) $ - $ 321,773 Cost of revenues: Products $ 154,654 $ (23,125 ) $ 4,458 $ 135,987 Application subscriptions and other services 68,150 (3,399 ) (4,458 ) 60,293 Total cost of revenues $ 222,804 $ (26,524 ) $ - $ 196,280 Year ended February 28, 2019 As Reported Reclassification for Discontinued Operations Adjustment As Corrected and Reclassified Revenues: Products $ 285,883 $ (42,277 ) $ 2,846 $ 246,452 Application subscriptions and other services 77,917 (9,985 ) (2,846 ) 65,086 Total revenues $ 363,800 $ (52,262 ) $ - $ 311,538 Cost of revenues: Products $ 175,009 $ (26,337 ) $ 2,059 $ 150,731 Application subscriptions and other services 41,027 (4,039 ) (2,059 ) 34,929 Total cost of revenues $ 216,036 $ (30,376 ) $ - $ 185,660 Year ended February 29, 2020 As Reported Reclassification for Discontinued Operations Adjustment As Corrected and Reclassified Revenue by type of goods and services: Telematics devices and accessories $ 258,449 $ (37,112 ) $ (6,963 ) $ 214,374 Rental income and other services 24,415 (2,733 ) (95 ) 21,587 Recurring application subscriptions 83,243 (4,489 ) 7,058 85,812 Total $ 366,107 $ (44,334 ) $ - $ 321,773 Revenue by timing of revenue recognition: Revenue recognized at a point in time $ 279,880 $ (39,845 ) $ (7,064 ) $ 232,971 Revenue recognized over time 86,227 (4,489 ) 7,064 88,802 Total $ 366,107 $ (44,334 ) $ - $ 321,773 Year ended February 28, 2019 As Reported Reclassification for Discontinued Operations Adjustment As Corrected and Reclassified Revenue by type of goods and services: Telematics devices and accessories $ 295,750 $ (42,277 ) $ (7,021 ) $ 246,452 Rental income and other services 13,293 (3,525 ) 3,823 13,591 Recurring application subscriptions 54,757 (6,460 ) 3,198 51,495 Total $ 363,800 $ (52,262 ) $ - $ 311,538 Revenue by timing of revenue recognition: Revenue recognized at a point in time $ 300,378 $ (45,802 ) $ (522 ) $ 254,054 Revenue recognized over time 63,422 (6,460 ) 522 57,484 Total $ 363,800 $ (52,262 ) $ - $ 311,538 |
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. We typically require payment from customers within between 30 to 60 days of our invoice date with a few exceptions that extend the credit terms up to 90 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. Due to the COVID-19 pandemic, there has been uncertainty and disruption in the global economy and financial markets. Except for the increase in expected credit losses, we are not aware of any specific event or circumstances that would require an update to our estimates or assumptions or a revision of the carrying value of our assets or liabilities as of the date of this annual report. These estimates and assumptions may change as new events occur and additional information is obtained. 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. As a result, actual results could differ materially from these estimates and assumptions. We analyzed the credit risk associated with our accounts receivables and lease receivables. Our historical loss rates have not shown any significant differences between customer industries or geographies, and, upon adoption of ASU 2016-13, Financial Instruments – Credit Losses (“ASU 2016-13”) Segment Information and Geographic Data |
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, 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 seven 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. The devices leased to our customers are capitalized as property and equipment and being depreciated over the life of the devices. |
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 Long-lived Assets | Goodwill and Long-lived Assets Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination. We test goodwill for impairment in accordance with the provisions of ASC 350, Intangibles – Goodwill and Other, The estimates of fair value of the reporting units are computed using either an income approach, a market approach, or a combination of both. Under the income approach, we utilize the discounted cash flow method to estimate the fair value of the reporting units. Significant assumptions inherent in estimating the fair values include the estimated future cash flows, growth assumptions for future revenues (including future gross margin rates, expense rates, capital expenditures and other estimates), and a rate used to discount estimated future cash flow projections to their present value (or estimated fair value) based on estimated weighted average cost of capital (i.e., the selected discount rate). We select assumptions used in the financial forecasts by using historical data, supplemented by current and anticipated market conditions, estimated growth rates, and management’s plans. Under the market approach, fair value is derived from metrics of publicly traded companies or historically completed transactions of comparable businesses (i.e. guideline companies). The selection of comparable businesses is based on the markets in which the reporting units operate giving consideration to risk profiles, size, geography, and diversity of products and services. 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. 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. The recoverability assessment with respect to each of the tradenames used in our operations requires us to estimate the fair value of the asset as of the assessment date. Such determination is made using discounted cash flow techniques (Level 3 determination of fair value). Significant inputs to the valuation model include future revenue and profitability projections associated with the tradename through relief of royalty approach; estimated market royalty rates that could be derived from the licensing of our tradenames to third parties in order to establish the cash flows accruing to the benefit of the Company as a result of our ownership of our tradenames; and rate used to discount the estimated royalty cash flow projections to their present value (or estimated fair value). In the fourth quarter of fiscal 2020 and throughout fiscal 2021, we determined that the prolonged secular decline in revenues from our legacy LoJack U.S. SVR products coupled with the slower than anticipated market penetration of our telematics solutions in the U.S. automotive dealership channel represented determinate indications of impairment. These factors were further exacerbated by the continuing unfavorable impact that the COVID-19 pandemic has had on the automotive end markets over the past ten months. As a result, we initiated an assessment of the carrying amount of the related goodwill, intangible and long-lived assets supporting these products including the LoJack tradename and dealer and customer relationships in both fiscal years. Based upon our assessment of economic conditions, our expectations of future business conditions and trends, our projected revenues, earnings, and cash flows, we determined that goodwill and certain of our long-lived assets were impaired in fiscal year 2021 and 2020 as follows (in thousands): Year Ended February 28/29, 2021 2020 LoJack U.S. SVR Products goodwill $ 12,023 $ - Other intangible assets: Developed technology 478 - Tradenames - 11,540 Dealer and customer relationships 1,005 6,194 Property and equipment and other assets 10,483 514 Operating lease right-of-use assets and related liabilities 658 895 Total $ 24,647 $ 19,143 Of the above amounts, $23.8 million and $13.4 million were included in discontinued operations, respectively (see Note 2, Discontinued Operations |
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. |
Convertible Senior Notes and Capped Call Transactions | Convertible Senior Notes and Capped Call Transactions We account for our convertible senior notes as separate liability and equity components. We determine the carrying amount of the liability component based on the estimated fair value of a similar debt instrument excluding the embedded conversion option at the issuance date. The carrying amount of the equity component representing the conversion option is calculated by deducting the carrying value of the liability component from the principal amount of the notes as a whole. This difference represents a debt discount that is amortized to interest expense over the term of the notes using the effective interest rate method. The equity component of the notes is included in stockholders’ equity and is not remeasured as long as it continues to meet the conditions for equity classification. We allocate transaction costs related to the issuance of the notes to the liability and equity components using the same proportions as the initial carrying value of the notes. Transaction costs attributable to the liability component are being amortized to interest expense using the effective interest method over the respective term of the notes, and transaction costs attributable to the equity components are netted with the equity component of the note in stockholders’ equity. We account for the cost of the capped calls as a reduction to additional paid-in capital. |
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 |
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. We recognize interest and/or penalties related to uncertain tax positions in income tax expense. Valuation allowances are provided against net deferred 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. In the fourth quarter of fiscal 2020, management assessed the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit the use of the existing net deferred tax assets. Due to the decrease in profitability, three-year cumulative loss position considering forecasts of future profitability and weighing all other positive and negative objective evidence, we determined that it was more likely than not that our domestic net deferred tax assets will not be realized, as such a valuation allowance against our domestic net deferred tax assets was established during the three months ended February 29, 2020. In fiscal 2021, we maintained a valuation allowance with respect to certain of our domestic and foreign deferred tax assets. The amount of the deferred tax assets considered realizable, however, could be adjusted in future periods in the event sufficient evidence is present to support a conclusion that it is more likely than not that all or a portion of our domestic deferred tax assets will be realized. |
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 losses included in determining income (loss) before income taxes were $0.2 million , $ million and $ million in fiscal years 2021 , 2020 and 2019 , 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 use the Black-Scholes option-pricing method for valuing stock options and shares granted under the employee stock purchase plan and recognize the expense over a requisite service (vesting) period using the straight-line method. Restricted stock units, or RSUs, are valued based on the fair value of our common stock on the date of grant. 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 Not Yet Adopted | Recently Issued Accounting Standards Not Yet Adopted In August 2020, the FASB issued ASU 2020-06, Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40) In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes Recently Adopted Accounting Pronouncements In August 2018, the FASB issued Accounting Standards Update 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
DESCRIPTION OF BUSINESS AND S_3
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Feb. 28, 2021 | |
Summary of Impact of Immaterial Adjustments Related to the Presentation of Revenues and Cost of Revenues between Products and Services | Subsequent to the issuance of the consolidated financial statements for the year ended February 29, 2020, we concluded that the presentation of revenues and cost of revenues should be adjusted to present product and service revenues and the related cost of revenues for each separately in accordance with SEC Regulation S-X, Rule 5-03(b). Additionally, certain historical information in the notes to the consolidated financial statements have been revised to reflect the impact of these and other classification corrections. We have determined that the correction of these classification errors is not material to the previously issued consolidated financial statements. The following table summarizes the impact of the immaterial adjustments. Year ended February 29, 2020 As Reported Reclassification for Discontinued Operations Adjustment As Corrected and Reclassified Revenues: Products $ 241,212 $ (37,112 ) $ 10,274 $ 214,374 Application subscriptions and other services 124,895 (7,222 ) (10,274 ) 107,399 Total revenues $ 366,107 $ (44,334 ) $ - $ 321,773 Cost of revenues: Products $ 154,654 $ (23,125 ) $ 4,458 $ 135,987 Application subscriptions and other services 68,150 (3,399 ) (4,458 ) 60,293 Total cost of revenues $ 222,804 $ (26,524 ) $ - $ 196,280 Year ended February 28, 2019 As Reported Reclassification for Discontinued Operations Adjustment As Corrected and Reclassified Revenues: Products $ 285,883 $ (42,277 ) $ 2,846 $ 246,452 Application subscriptions and other services 77,917 (9,985 ) (2,846 ) 65,086 Total revenues $ 363,800 $ (52,262 ) $ - $ 311,538 Cost of revenues: Products $ 175,009 $ (26,337 ) $ 2,059 $ 150,731 Application subscriptions and other services 41,027 (4,039 ) (2,059 ) 34,929 Total cost of revenues $ 216,036 $ (30,376 ) $ - $ 185,660 |
Summary of Long-lived Assets Impaired | In the fourth quarter of fiscal 2020 and throughout fiscal 2021, we determined that the prolonged secular decline in revenues from our legacy LoJack U.S. SVR products coupled with the slower than anticipated market penetration of our telematics solutions in the U.S. automotive dealership channel represented determinate indications of impairment. These factors were further exacerbated by the continuing unfavorable impact that the COVID-19 pandemic has had on the automotive end markets over the past ten months. As a result, we initiated an assessment of the carrying amount of the related goodwill, intangible and long-lived assets supporting these products including the LoJack tradename and dealer and customer relationships in both fiscal years. Based upon our assessment of economic conditions, our expectations of future business conditions and trends, our projected revenues, earnings, and cash flows, we determined that goodwill and certain of our long-lived assets were impaired in fiscal year 2021 and 2020 as follows (in thousands): Year Ended February 28/29, 2021 2020 LoJack U.S. SVR Products goodwill $ 12,023 $ - Other intangible assets: Developed technology 478 - Tradenames - 11,540 Dealer and customer relationships 1,005 6,194 Property and equipment and other assets 10,483 514 Operating lease right-of-use assets and related liabilities 658 895 Total $ 24,647 $ 19,143 |
ASU 2014-09 [Member] | |
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 21 for our revenue by segment and geography. The disaggregation of revenue by type of goods and services and by timing of revenue recognition is as follows (in thousands): Year Ended February 28/29, 2021 2020 2019 Revenue by type of goods and services: Telematics devices and accessories $ 193,486 $ 214,374 $ 246,452 Rental income and other services 17,844 21,587 13,591 Recurring application subscriptions 97,257 85,812 51,495 Total $ 308,587 $ 321,773 $ 311,538 Revenue by timing of revenue recognition: Revenue recognized at a point in time $ 209,902 $ 232,971 $ 254,054 Revenue recognized over time 98,685 88,802 57,484 Total $ 308,587 $ 321,773 $ 311,538 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Feb. 28, 2021 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Summary of Financial Results of Discontinued Operations | The below table presents the amounts by balance sheet classification related to our discontinued operations (in thousands): As of February 28/29, 2021 2020 Carrying amounts of the major classes of assets included in discontinued operations: Accounts receivable, net $ 5,050 $ 7,634 Inventories 1,721 4,306 Prepaid expenses and other current assets 1,101 978 Current assets of discontinued operations $ 7,872 $ 12,918 Goodwill $ - $ 12,023 Other intangible assets, net - 2,941 Other assets - 254 Non-current assets of discontinued operations - 15,218 $ 7,872 $ 28,136 Carrying amounts of the major classes of liabilities included in discontinued operations: Accounts payable $ 1,956 $ 3,815 Deferred revenue 1,849 2,277 Other current liabilities 291 1,654 Current liabilities of discontinued operations 4,096 7,746 Other non-current liabilities 1,773 2,808 Non-current liabilities of discontinued operations 1,773 2,808 $ 5,869 $ 10,554 The amounts in the statement of operations that are included in discontinued operations are summarized in the following table (in thousands): Year Ended February 28/29 2021 2020 2019 Revenues $ 32,692 $ 44,334 $ 52,262 Cost of revenues 21,133 26,524 30,376 Gross profit 11,559 17,810 21,886 Operating expenses: Research and development 1,441 2,443 2,115 Selling and marketing 9,988 13,155 12,219 General and administrative 7,041 8,190 8,113 Intangible asset amortization 2,199 6,450 7,505 Restructuring 2,220 1,935 5,716 Impairment losses 23,822 13,389 - Total operating expenses 46,711 45,562 35,668 Operating loss (35,152 ) (27,752 ) (13,782 ) Non-operating income - - 10,790 Loss from discontinued operations before income taxes (35,152 ) (27,752 ) (2,992 ) Income tax benefit - - 718 Net loss from discontinued operations, net of tax $ (35,152 ) $ (27,752 ) $ (2,274 ) The amounts in the statement of cash flow that are included in discontinued operations are summarized in the following table (in thousands): Year Ended February 28/29 2021 2020 2019 CASH FLOWS FROM OPERATING ACTIVITIES: Net loss from discontinued operations, net of tax $ (35,152 ) $ (27,752 ) $ (2,274 ) Adjustments to reconcile net loss from discontinued operations to net cash provided by (used in) operating activities: Depreciation 2,260 2,225 2,725 Intangible asset amortization 2,199 6,450 7,505 Stock-based compensation 1,516 1,754 1,490 Impairment losses 23,822 14,599 - Noncash operating lease cost 4,901 3,360 - Deferred tax assets, net - - (719 ) Changes in operating assets and liabilities: Accounts receivable 2,584 2,053 (833 ) Inventories 2,585 2,456 400 Prepaid expenses and other current assets (123 ) 2,376 (2,699 ) Accounts payable (1,859 ) 1,158 (156 ) Accrued liabilities (1,363 ) (627 ) (2,460 ) Deferred revenue (428 ) (70 ) 88 Operating lease liabilities (5,354 ) (3,275 ) - NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES FROM DISCONTINUED OPERATIONS (4,412 ) 4,707 3,067 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (2,338 ) (891 ) (1,608 ) NET CASH USED IN INVESTING ACTIVITIES FROM DISCONTINUED OPERATOINS (2,338 ) (891 ) (1,608 ) Net change in cash and cash equivalents (6,750 ) 3,816 1,459 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Feb. 28, 2021 | |
Business Combinations [Abstract] | |
Summary of Final Purchase Price Allocations | The following are the final purchase price allocations as of February 29, 2020 for the three acquisitions (in thousands): Tracker UK LoJack Mexico Synovia Purchase price $ 13,097 $ 14,306 $ 29,500 Add debt paid at closing - - 20,296 Less cash acquired, net of debt assumed (65 ) (1,586 ) (889 ) Net cash paid 13,032 12,720 48,907 Less provisional amount of working capital claim against escrowed consideration (973 ) - - Net consideration 12,059 12,720 48,907 Add previously held interest - 2,021 - Fair value of net assets and liabilities assumed: Current assets other than cash $ 3,549 $ 4,537 $ 9,637 Property and equipment 1,008 3,652 24,840 Customer relationships 2,354 7,000 16,700 Trade name 2,354 - 1,600 Developed technology 1,830 - 3,800 Deferred tax assets - - 2,061 Other non-current assets 104 1,301 177 Current liabilities (3,130 ) (2,586 ) (4,645 ) Due to factors - - (19,692 ) Deferred revenue (3,162 ) (4,507 ) (4,319 ) Deferred tax liability (874 ) (943 ) - Other non-current liabilities (270 ) - - Total fair value of net assets acquired 3,763 8,454 30,159 Goodwill $ 8,296 $ 6,287 $ 18,748 |
CONCENTRATION OF CUSTOMERS AN_2
CONCENTRATION OF CUSTOMERS AND SUPPLIERS (Tables) | 12 Months Ended |
Feb. 28, 2021 | |
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 28/29, 2021 2020 2019 Net sales: Customer A 19 % 16 % 18 % As of February 28/29, 2021 2020 2019 Accounts receivable: Customer A 25 % 21 % 16 % As of February 28/29, 2021 2020 2019 Accounts Payable: Supplier A 17 % 13 % 0 % Supplier B 11 % 10 % 2 % Supplier C 8 % 12 % 19 % Supplier D 5 % 0 % 33 % |
CASH, CASH EQUIVALENTS AND IN_2
CASH, CASH EQUIVALENTS AND INVESTMENTS (Tables) | 12 Months Ended |
Feb. 28, 2021 | |
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, 2021 Balance Sheet Classification of Fair Value Unrealized Cash and Gains Fair Cash Other Cost (Losses) Value Equivalents Assets Cash $ 38,823 $ - $ 38,823 $ 38,823 $ - Level 1: Money market funds 12,801 - 12,801 12,801 - Mutual funds (1) 1,810 367 2,177 - 2,177 Level 2: Repurchase agreements 43,000 - 43,000 43,000 - Total $ 96,434 $ 367 $ 96,801 $ 94,624 $ 2,177 As of February 29, 2020 Balance Sheet Classification of Fair Value Unrealized Cash and Gains Fair Cash Other Cost (Losses) Value Equivalents Assets Cash $ 31,895 $ - $ 31,895 $ 31,895 $ - Level 1: Money market funds 5,508 - 5,508 5,508 - Mutual funds (1) 3,926 26 3,952 - 3,952 Level 2: Repurchase agreements 60,000 - 60,000 60,000 - Corporate bonds 10,001 - 10,001 10,001 - Total $ 111,330 $ 26 $ 111,356 $ 107,404 $ 3,952 (1) Amounts represent various equities, bonds and money market mutual funds held in a “Rabbi Trust” and are restricted for payment obligations to non-qualified deferred compensation plan participants. In addition to the mutual funds above, our “Rabbi Trust” also included Corporate-Owned Life Insurance (COLI) starting in fiscal 2020. As of February 28, 2021, the cash surrender value of COLI was $5.0 million. See Note 10 for discussion of the deferred compensation plan. |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Feb. 28, 2021 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable consist of the following (in thousands): February 28/29, 2021 2020 Accounts receivable $ 66,983 $ 66,903 Allowance for doubtful accounts (3,658 ) (2,264 ) $ 63,325 $ 64,639 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Feb. 28, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following (in thousands): February 28/29, 2021 2020 Raw materials $ 10,480 $ 17,034 Finished goods 13,183 15,438 $ 23,663 $ 32,472 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Feb. 28, 2021 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consist of the following (in thousands): Useful February 28/29, Life 2021 2020 Leasehold improvements 5 - 10 years $ 7,924 $ 9,425 Recovery system components and law enforcement tracking units 7 to 10 years 13,975 17,096 Leased devices 2 to 5 years 31,988 30,646 Plant equipment and tooling 2 - 5 years 9,789 13,026 Office equipment, computers and furniture 3 - 5 years 12,438 11,598 Software 3 - 7 years 49,993 50,760 126,107 132,551 Less accumulated depreciation and amortization (88,870 ) (81,079 ) 37,237 51,472 Fixed assets not yet in service 3,844 4,406 $ 41,081 $ 55,878 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Feb. 28, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in goodwill are as follows (in thousands): Software & Subscription Services Telematics Products LoJack U.S. SVR Products Total Balance as of February 29, 2020 $ 55,132 $ 39,180 $ 12,023 $ 106,335 Impairment loss - - (12,023 ) $ (12,023 ) Effect of exchange rate change on goodwill 305 - - 305 Balance as of February 28, 2021 $ 55,437 $ 39,180 $ - $ 94,617 |
Schedule of Other Intangible Assets | Other intangible assets are comprised as follows (in thousands, except years): Gross Accumulated Amortization Net Useful Life Feb. 29, 2020 Currency Adjustments Impair- ment Feb. 28, 2021 Feb. 29, 2020 Expense Feb. 28, 2021 Feb. 29, 2020 Feb. 28, 2021 Developed technology (1) 4-6 years $ 27,363 109 (478 ) $ 26,994 $ 21,437 2,620 $ 24,057 $ 5,926 $ 2,937 Tradenames 10 years 30,093 164 - 30,257 16,303 2,125 18,428 13,790 11,829 Customer lists 4-7 years 25,304 - - 25,304 22,903 48 22,951 2,401 2,353 Dealer and customer relationships (1) 10-15 years 34,139 (217 ) (1,005 ) 32,917 10,753 2,149 12,902 23,386 20,015 Patents 5 years 589 - - 589 197 38 235 392 354 $ 117,488 $ 56 $ (1,483 ) $ 116,061 $ 71,593 $ 6,980 $ 78,573 $ 45,895 $ 37,488 (1) A combined total of $2.9 million as of February 29, 2020 relates to LoJack US SVR Products, which is included within Non-current assets of discontinued operations shown separately in our consolidated balance sheet. The balance was fully impaired as of February 28, 2021. |
Schedule of Future Amortization Expense | Estimated future amortization expense as of February 28, 2021 is as follows (in thousands): 2022 $ 5,541 2023 5,390 2024 4,545 2025 4,430 2026 4,108 Thereafter 13,474 $ 37,488 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Feb. 28, 2021 | |
Other Assets Noncurrent Disclosure [Abstract] | |
Schedule of Other Assets | Other assets consist of the following (in thousands): February 28/29, 2021 2020 Deferred product cost $ 4,850 $ 7,564 Deferred compensation plan assets 7,141 6,041 Lease receivables, non-current 10,403 5,992 Prepaid commissions 2,438 2,318 Other 2,337 2,599 $ 27,169 $ 24,514 |
FINANCING ARRANGEMENTS (Tables)
FINANCING ARRANGEMENTS (Tables) | 12 Months Ended |
Feb. 28, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Balances Attributable to Financing Arrangements | Balances attributable to our financing arrangements consist of the following (in thousands): Maturity Effective February 28/29, Date Interest Rate 2021 2020 2020 Convertible Notes, 1.625% fixed rate May 15, 2020 6.20% $ - $ 27,599 2025 Convertible Notes, 2.00% fixed rate August 1, 2025 7.56% 230,000 230,000 Due to factors under revenue assignments 2020 - 2024 4.70% 8,081 14,371 Total term debt 238,081 271,970 Unamortized discount and issuance costs (51,610 ) (61,763 ) Less: current portion of long-term term debt (4,317 ) (33,119 ) Long-term debt, net of current portion $ 182,154 $ 177,088 |
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 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, 2021 | |
Restructuring And Related Activities [Abstract] | |
Summary of Charges and Activity Resulting from Implementation of Restructuring Plan within Other Current and Non-current Liabilities | The following table summarizes the charges resulting from the implementation of the restructuring plan for the fiscal years ended February 28/29, 2021, 2020 and 2019 (in thousands): Years ended February 28/29, 2021 2020 2019 Personnel Facilities Total Personnel Facilities Total Personnel Facilities Total Cost of revenue $ 530 $ 850 $ 1,380 $ 493 $ 1,853 $ 2,346 $ 1,585 $ 1,001 $ 2,586 Research and development 33 - 33 222 - 222 412 803 1,215 Selling and marketing 820 - 820 601 - 601 1,228 1,388 2,616 General and administrative 2,521 - 2,521 1,231 - 1,231 1,050 548 1,598 Total $ 3,904 $ 850 $ 4,754 $ 2,547 $ 1,853 $ 4,400 $ 4,275 $ 3,740 $ 8,015 The following table summarizes the activity resulting from the implementation of the restructuring plan within other current and non-current liabilities (in thousands): Personnel Facilities Total Restructuring liabilities as of February 28, 2019 $ 2,779 $ 2,977 $ 5,756 Cease-use liability reclassified as reduction of Operating lease right-of-use assets - (2,977 ) (2,977 ) Charges 2,547 644 3,191 Payments (2,943 ) (285 ) (3,228 ) Restructuring liabilities as of February 29, 2020 $ 2,383 $ 359 $ 2,742 Charges 3,905 850 4,755 Payments (3,651 ) (318 ) (3,969 ) Restructuring liabilities as of February 28, 2021 $ 2,637 $ 891 $ 3,528 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Feb. 28, 2021 | |
Leases [Abstract] | |
Summary of Lease-related Assets and Liabilities | The table below presents lease-related assets and liabilities recorded on the consolidated balance sheet (in thousands): Classification February 28, 2021 February 29, 2020 Assets Operating lease right-of-use assets Operating lease right-of-use assets $ 14,273 $ 20,626 Liabilities Operating lease liabilities (current) Other current liabilities $ 4,926 $ 4,662 Operating lease liabilities (noncurrent) Operating lease liabilities 17,061 24,279 Total lease liabilities $ 21,987 $ 28,941 |
Summary of Lease Costs Included in Consolidated Statements of Comprehensive Income (Loss) | The following lease costs were included in our consolidated statements of comprehensive income (loss) as follows (in thousands): Year Ended February 28, 2021 Year Ended February 29, 2020 Operating lease cost $ 6,842 $ 6,497 Short-term lease cost 168 848 Variable lease cost 442 315 Total lease cost $ 7,452 $ 7,660 |
Schedule of Supplemental Information Related to Operating Leases | The table below presents supplemental information related to operating leases during the fiscal year ended February 28, 2021 (in thousands, except weighted-average information): Year Ended February 28, 2021 Year Ended February 29, 2020 Cash paid for amounts included in the measurement of operating lease liabilities $ 7,549 $ 6,624 Right-of-use assets obtained in exchange for new operating lease liabilities $ 2,513 $ 4,071 Weighted average remaining lease term 4.7 years 7.3 years Weighted average discount rate 5.37% 5.45 % |
Schedule of Reconciles the Undiscounted Cash Flows for Operating Lease Liabilities | The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities recorded on the consolidated balance sheet as of February 28, 2021 (in thousands): 2022 $ 5,635 2023 5,208 2024 4,795 2025 3,107 2026 2,322 Thereafter 1,922 Total minimum lease payments 22,989 Less imputed interest (1,002 ) Present value of future minimum lease payments 21,987 Less current obligations under leases (4,926 ) Long-term lease obligations $ 17,061 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Feb. 28, 2021 | |
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 28/29, 2021 2020 2019 Domestic $ (16,964 ) $ (31,381 ) $ 24,359 Foreign (3,632 ) 813 2,488 Total income (loss) before income taxes and equity in net loss of affiliate $ (20,596 ) $ (30,568 ) $ 26,847 |
Components of Income Tax Benefit (Provision) | The components of income tax benefit (provision) consists of the following (in thousands): Year Ended February 28/29, 2021 2020 2019 Current: Federal $ - $ - $ 404 State 40 (273 ) (256 ) Foreign (602 ) (1,629 ) (62 ) Total current (562 ) (1,902 ) 86 Deferred: Federal (59 ) (12,852 ) (2,621 ) State (18 ) (10,645 ) (1,295 ) Foreign 78 4,945 4,442 Total deferred 1 (18,552 ) 526 Income tax benefit (provision) $ (561 ) $ (20,454 ) $ 612 |
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 28/29, 2021 2020 2019 Income tax benefit (provision) at U.S. statutory federal rate $ 4,325 $ 6,420 $ (5,638 ) State income tax benefit (provision), net of federal income tax effect 602 117 (1,412 ) Foreign taxes benefit (provision) 900 (50 ) (31 ) U.S. taxes on foreign income (306 ) (571 ) - Valuation allowance reductions (increases) (5,825 ) (27,726 ) 5,915 Research and other tax credits 1,322 2,594 1,658 Tax benefits on vested and exercised equity awards (851 ) (606 ) 758 Non-deductible expenses (655 ) (697 ) (229 ) Other, net (73 ) 65 (409 ) Total income tax benefit (provision) $ (561 ) $ (20,454 ) $ 612 |
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 28/29, 2021 2020 Net operating loss carryforwards $ 27,194 $ 22,500 Depreciation, amortization and impairments (2,117 ) (5,353 ) Research and development credits 21,917 20,603 Stock-based compensation 2,944 2,556 Other tax credits 2,197 2,172 Capitalized research costs 2,638 3,389 ROU asset (3,528 ) (5,174 ) Lease liabilities 5,472 7,455 Payroll and employee benefit accruals 1,984 2,077 Allowance for doubtful accounts 1,163 965 Other accrued liabilities 4,743 4,887 Convertible debt (8,185 ) (9,477 ) Other, net 5,137 3,275 Gross deferred tax assets 61,559 49,875 Valuation allowance (56,848 ) (45,560 ) Net deferred tax assets $ 4,711 $ 4,315 Reported as: Deferred tax assets $ 4,889 $ 4,437 Deferred tax liabilities (178 ) (122 ) Net deferred tax assets $ 4,711 $ 4,315 |
Summary of Unrecognized Tax Benefits | Year Ended February 28/29, 2020 2019 2018 Gross amounts of unrecognized tax benefits as of the beginning of the period $ 2,172 $ 3,201 $ 1,029 Increases related to prior period tax positions - - 2,241 Decreases related to prior period tax positions (422 ) (1,029 ) (69 ) Gross amounts of unrecognized tax benefits as of the end of the period $ 1,750 $ 2,172 $ 3,201 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Feb. 28, 2021 | |
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 Fiscal 2019 2,496,422 $ 19.63 $ 49,000,000 |
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, 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 Granted 171 11.11 Exercised (154 ) 2.44 Forfeited or expired - - Outstanding at February 29, 2020 1,071 $ 14.65 6.2 Granted - - Exercised (141 ) 4.07 Forfeited or expired (152 ) 17.52 Outstanding at February 28, 2021 778 $ 16.01 6.0 $ 130 Exercisable at: February 28, 2019 698 $ 10.22 4.4 $ 3,360 February 29, 2020 633 $ 13.21 4.7 $ 850 February 28, 2021 507 $ 15.80 5.2 $ 123 Year ended February 28/29, 2021 2020 2019 Weighted average grant date fair value of stock options granted during the year $ - $ 4.82 $ 11.94 |
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 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 29/28, Black-Scholes Valuation Assumptions 2020 2019 Expected life (years) 6 2 - 6 Expected volatility 43% 36% - 43% Risk-free interest rates 1.9% 2.5% - 2.9% Expected dividend yield 0% 0% |
Summary of Restricted Stock Shares (RSU's), and Performance Stock Units (PSU's) Activity | Changes in our outstanding restricted stock shares, PSUs and RSUs for the fiscal years ended February 28/29, 2021, 2020 and 2019 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, 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 Granted 1,597 11.28 Vested (521 ) 18.67 177 Forfeited (368 ) 16.27 Outstanding at February 29, 2020 2,215 $ 14.47 Granted 1,885 7.91 Vested (656 ) 15.07 214 Forfeited (391 ) 11.95 Outstanding at February 28, 2021 3,053 $ 10.61 |
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 28/29, 2021 2020 2019 Cost of revenues $ 501 $ 526 $ 482 Research and development 2,690 2,213 1,342 Selling and marketing 2,333 2,647 2,663 General and administrative 4,833 5,281 5,052 Restructuring 1,007 - - $ 11,364 $ 10,667 $ 9,539 |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 12 Months Ended |
Feb. 28, 2021 | |
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 28/29, 2021 2020 2019 Income (loss) from continuing operations before equity in net loss of affiliate and related impairment loss $ (21,157 ) $ (51,022 ) $ 27,459 Equity in net loss of affiliate and related impairment loss - (530 ) (6,787 ) Net income (loss) from continuing operations (21,157 ) (51,552 ) 20,672 Net loss from discontinued operations, net of tax (35,152 ) (27,752 ) (2,274 ) Net income (loss) $ (56,309 ) $ (79,304 ) $ 18,398 Basic weighted average number of common shares outstanding 34,389 33,670 34,589 Dilutive effect of stock options and restricted stock units computed on treasury stock method - - 705 Diluted weighted average number of common shares outstanding 34,389 33,670 35,294 Basic net income (loss) per common share: Income (loss) from continuing operations $ (0.62 ) $ (1.54 ) $ 0.60 Income (loss) from discontinued operations (1.02 ) (0.82 ) (0.07 ) Net income (loss) $ (1.64 ) $ (2.36 ) $ 0.53 Diluted net income (loss) per common share: Income (loss) from continuing operations $ (0.62 ) $ (1.54 ) $ 0.59 Income (loss) from discontinued operations (1.02 ) (0.82 ) (0.07 ) Net income (loss) $ (1.64 ) $ (2.36 ) $ 0.52 |
COMPREHENSIVE INCOME (LOSS) (Ta
COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Feb. 28, 2021 | |
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 28/29, 2021, 2020 and 2019 (in thousands): Cumulative Foreign Currency Translation Unrealized Gains/Losses on Marketable Securities Total Balances at February 28, 2018 $ (628 ) $ 429 $ (199 ) Other comprehensive income (loss), net of tax (33 ) (429 ) (462 ) Balances at February 28, 2019 (661 ) - (661 ) Other comprehensive income (loss), net of tax (714 ) - (714 ) Balances at February 29, 2020 (1,375 ) - (1,375 ) Other comprehensive income (loss), net of tax 390 - 390 Balances at February 28, 2021 $ (985 ) $ - $ (985 ) |
OTHER FINANCIAL INFORMATION (Ta
OTHER FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Feb. 28, 2021 | |
Other Financial Information [Abstract] | |
Schedule of Supplemental Balance Sheet Information | Supplemental Balance Sheet Information Other current liabilities consist of the following (in thousands): February 28/29, 2021 2020 Operating lease liabilities $ 4,926 $ 4,662 Litigation reserve 2,200 1,500 Customer deposits 2,472 1,377 Warranty reserves 1,257 987 Other 6,525 5,973 $ 17,380 $ 14,499 Other non-current liabilities consist of the following (in thousands): February 28/29, 2021 2020 Deferred revenue $ 19,893 $ 24,644 Deferred compensation plan liability 6,992 5,919 Deferred tax liability 178 122 Other 3,424 1,551 $ 30,487 $ 32,236 |
Schedule of Interest Expense | Supplemental Income Statement Information Interest expense consists of the following (in thousands): Year Ended February 28/29, 2021 2020 2019 Interest expense on 2020 Convertible Notes: Stated interest at 1.625% per annum $ 93 $ 1,464 $ 2,308 Amortization of discount and issuance costs 289 4,336 6,484 382 5,800 8,792 Interest expense on 2025 Convertible Notes: Stated interest at 2.00% per annum 4,587 4,613 2,811 Amortization of discount and issuance costs 9,378 8,750 4,980 13,965 13,363 7,791 Other interest expense 1,140 933 143 Total interest expense $ 15,487 $ 20,096 $ 16,726 |
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 28/29, 2021 2020 2019 Cash payments for interest and income taxes: Interest expense paid $ 5,320 $ 6,762 $ 5,057 Income tax paid, net of refunds $ 643 $ 220 $ 964 Non-cash investing and financing activities: Accrued liability for capital expenditures $ (604 ) $ (283 ) $ 881 Conversion of receivables to equity investment $ - $ - $ 300 |
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 Balance at end of year Allowance for doubtful accounts: Fiscal 2019 858 922 (577 ) 1,203 Fiscal 2020 1,203 2,214 (1,153 ) 2,264 Fiscal 2021 2,264 2,163 (769 ) 3,658 Warranty reserve: Fiscal 2019 5,734 1,126 (5,462 ) 1,398 Fiscal 2020 1,398 729 (1,140 ) 987 Fiscal 2021 987 2,729 (2,459 ) 1,257 Deferred tax assets valuation allowance: Fiscal 2019 16,844 799 (6,714 ) 10,929 Fiscal 2020 10,929 34,631 - 45,560 Fiscal 2021 45,560 11,288 - 56,848 |
SEGMENT AND GEOGRAPHIC DATA (Ta
SEGMENT AND GEOGRAPHIC DATA (Tables) | 12 Months Ended |
Feb. 28, 2021 | |
Segment Reporting [Abstract] | |
Summary of Segment Information | Information by business segment is as follows (in thousands): Year ended February 28, 2021 Operating Segments Software & Subscription Services Telematics Products Corporate Expenses Total Revenues $ 129,933 $ 178,654 $ 308,587 Gross profit $ 65,411 $ 56,994 $ 122,405 Gross margin 50.3 % 31.9 % 39.7 % Adjusted EBITDA $ 32,226 $ 4,854 $ (4,974 ) $ 32,106 Year ended February 29, 2020 Operating Segments Software & Subscription Services Telematics Products Corporate Expenses Total Revenues $ 123,460 $ 198,313 $ 321,773 Gross profit $ 56,283 $ 69,210 $ 125,493 Gross margin 45.6 % 34.9 % 39.0 % Adjusted EBITDA $ 21,674 $ 21,763 $ (4,528 ) $ 38,909 Year ended February 28, 2019 Operating Segments Software & Subscription Services Telematics Products Corporate Expenses Total Revenues $ 74,842 $ 236,696 $ 311,538 Gross profit $ 36,412 $ 89,466 $ 125,878 Gross margin 48.7 % 37.8 % 40.4 % Adjusted EBITDA $ 12,429 $ 37,833 $ (5,699 ) $ 44,563 |
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 28/29, 2021 2020 2019 Net income (loss) from continuing operations $ (21,157 ) $ (51,552 ) $ 20,672 Investment income (2,119 ) (4,497 ) (5,258 ) Interest expense 15,487 20,096 16,726 Income tax provision (benefits) 561 20,454 (612 ) Depreciation and amortization 22,002 23,312 9,786 Stock-based compensation 10,357 10,667 9,539 Impairment loss and equity in net loss of affiliate - 530 6,787 Loss on extinguishment of debt - 2,408 2,033 Acquisition and integration related expenses - 2,210 935 Non-recurring legal expenses, net of reversal of litigation provision 2,262 6,213 (11,020 ) Gain on LoJack battery performance legal Settlement - - (7,543 ) Restructuring 2,534 2,465 2,299 Impairment losses 825 5,754 - Other 1,354 849 219 Adjusted EBITDA $ 32,106 $ 38,909 $ 44,563 |
Summary of Revenues by Geographic Area | Revenue by geographic area are as follows (in thousands): Year Ended February 28/29, 2021 2020 2019 United States $ 200,665 $ 222,079 $ 216,191 Europe, Middle East and Africa 58,470 55,185 49,496 South America 27,110 21,235 15,134 Asia and Pacific Rim 12,281 9,166 13,958 All other 10,061 14,108 16,759 $ 308,587 $ 321,773 $ 311,538 |
DESCRIPTION OF BUSINESS AND S_4
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) $ in Thousands, £ in Millions | Jan. 22, 2021USD ($) | Apr. 12, 2019USD ($) | Mar. 18, 2019USD ($) | Feb. 25, 2019USD ($) | Feb. 25, 2019GBP (£) | Feb. 28, 2021USD ($)Segment | Feb. 29, 2020USD ($) | Feb. 28, 2019USD ($) | Mar. 01, 2020USD ($) |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Purchase price, net of cash on hand | $ 60,652 | $ 13,031 | |||||||
Number of reportable segments | Segment | 2 | ||||||||
Revenue recognized | $ 33,900 | ||||||||
Unearned revenue | 32,924 | 32,427 | $ 57,100 | ||||||
Contracted not recognized revenue | 145,100 | 129,400 | |||||||
Foreign transaction exchange gains (losses) | 200 | 200 | $ 400 | ||||||
ASC 326 [Member] | |||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Addition to allowance for doubtful accounts | 100 | ||||||||
Prepaid Expenses and Other Current Assets [Member] | |||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Prepaid sales commissions | 2,100 | ||||||||
Other Assets [Member] | |||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Prepaid sales commissions | $ 2,400 | ||||||||
Minimum [Member] | |||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Estimated useful life | 2 years | ||||||||
Accounts receivable payment period | 30 days | ||||||||
Product warranty term against manufacturing defects and workmanship | 1 year | ||||||||
Maximum [Member] | |||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Estimated useful life | 7 years | ||||||||
Accounts receivable payment period | 60 days | ||||||||
Accounts receivable payment extended period | 90 days | ||||||||
Product warranty term against manufacturing defects and workmanship | 2 years | ||||||||
Fleet Management Vertical [Member] | |||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Deferred revenue contract in-service life | 4 years | ||||||||
Software-as-a-Service [Member] | Minimum [Member] | |||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Estimated useful life | 4 years | ||||||||
Software-as-a-Service [Member] | Maximum [Member] | |||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Estimated useful life | 5 years | ||||||||
Spireon Holdings, L.P. [Member] | |||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Purchase price | $ 8,000 | ||||||||
Tracker Network (UK) Limited [Member] | |||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Purchase price | $ 13,000 | £ 10 | |||||||
Car Track, S.A. de C.V ("LoJack Mexico") [Member] | |||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Purchase price, net of cash on hand | $ 13,000 | ||||||||
Percentage of shares purchase in business combination | 87.50% | ||||||||
Synovia Solutions LLC (“Synovia”) [Member] | |||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Purchase price | $ 49,800 | 29,500 | |||||||
Purchase price, net of cash on hand | $ 49,800 | $ 48,907 |
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 | 12 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2019 | |
Disaggregation Of Revenue [Line Items] | |||
Revenues | $ 308,587 | $ 321,773 | $ 311,538 |
Telematics Devices and Accessories [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 193,486 | 214,374 | 246,452 |
Rental Income and Other Services [Memer] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 17,844 | 21,587 | 13,591 |
Recurring Application Subscriptions [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 97,257 | 85,812 | 51,495 |
Revenue Recognized At Point In Time [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 209,902 | 232,971 | 254,054 |
Revenue Recognized Over Time [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | $ 98,685 | $ 88,802 | $ 57,484 |
DESCRIPTION OF BUSINESS AND S_6
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative 1) (Details) | Feb. 28, 2021 | Feb. 29, 2020 |
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 | 44.00% | |
Revenue, remaining Performance obligation, expected timing of satisfaction, year | 2021 | |
Revenue, remaining Performance obligation, expected timing of satisfaction, period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-03-01 | ||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||
Revenue, remaining performance obligation expect to recognize in percentage | 50.00% | 26.00% |
Revenue, remaining Performance obligation, expected timing of satisfaction, year | 2022 | 2022 |
Revenue, remaining Performance obligation, expected timing of satisfaction, period | 1 year | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-03-01 | ||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||
Revenue, remaining performance obligation expect to recognize in percentage | 22.00% | |
Revenue, remaining Performance obligation, expected timing of satisfaction, year | 2023 | |
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 (Summary of Impact of Immaterial Adjustments Related to the Presentation of Revenues and Cost of Revenues between Products and Services) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2019 | |
Revenues: | |||
Revenues | $ 308,587 | $ 321,773 | $ 311,538 |
Cost of revenues: | |||
Cost of revenues | 186,182 | 196,280 | 185,660 |
Telematics Devices and Accessories [Member] | |||
Revenues: | |||
Revenues | 193,486 | 214,374 | 246,452 |
Rental Income and Other Services [Memer] | |||
Revenues: | |||
Revenues | 17,844 | 21,587 | 13,591 |
Recurring Application Subscriptions [Member] | |||
Revenues: | |||
Revenues | 97,257 | 85,812 | 51,495 |
Revenue Recognized At Point In Time [Member] | |||
Revenues: | |||
Revenues | 209,902 | 232,971 | 254,054 |
Revenue Recognized Over Time [Member] | |||
Revenues: | |||
Revenues | 98,685 | 88,802 | 57,484 |
Products [Member] | |||
Revenues: | |||
Revenues | 193,486 | 214,374 | 246,452 |
Cost of revenues: | |||
Cost of revenues | $ 129,578 | 135,987 | 150,731 |
Application Subscriptions and Other Services [Member] | |||
Revenues: | |||
Revenues | 107,399 | 65,086 | |
Cost of revenues: | |||
Cost of revenues | 60,293 | 34,929 | |
Reclassification for Discontinued Operations [Member] | |||
Revenues: | |||
Revenues | (44,334) | (52,262) | |
Cost of revenues: | |||
Cost of revenues | (26,524) | (30,376) | |
Reclassification for Discontinued Operations [Member] | Telematics Devices and Accessories [Member] | |||
Revenues: | |||
Revenues | (37,112) | (42,277) | |
Reclassification for Discontinued Operations [Member] | Rental Income and Other Services [Memer] | |||
Revenues: | |||
Revenues | (2,733) | (3,525) | |
Reclassification for Discontinued Operations [Member] | Recurring Application Subscriptions [Member] | |||
Revenues: | |||
Revenues | (4,489) | (6,460) | |
Reclassification for Discontinued Operations [Member] | Revenue Recognized At Point In Time [Member] | |||
Revenues: | |||
Revenues | (39,845) | (45,802) | |
Reclassification for Discontinued Operations [Member] | Revenue Recognized Over Time [Member] | |||
Revenues: | |||
Revenues | (4,489) | (6,460) | |
Reclassification for Discontinued Operations [Member] | Products [Member] | |||
Revenues: | |||
Revenues | (37,112) | (42,277) | |
Cost of revenues: | |||
Cost of revenues | (23,125) | (26,337) | |
Reclassification for Discontinued Operations [Member] | Application Subscriptions and Other Services [Member] | |||
Revenues: | |||
Revenues | (7,222) | (9,985) | |
Cost of revenues: | |||
Cost of revenues | (3,399) | (4,039) | |
As Reported [Member] | |||
Revenues: | |||
Revenues | 366,107 | 363,800 | |
Cost of revenues: | |||
Cost of revenues | 222,804 | 216,036 | |
As Reported [Member] | Telematics Devices and Accessories [Member] | |||
Revenues: | |||
Revenues | 258,449 | 295,750 | |
As Reported [Member] | Rental Income and Other Services [Memer] | |||
Revenues: | |||
Revenues | 24,415 | 13,293 | |
As Reported [Member] | Recurring Application Subscriptions [Member] | |||
Revenues: | |||
Revenues | 83,243 | 54,757 | |
As Reported [Member] | Revenue Recognized At Point In Time [Member] | |||
Revenues: | |||
Revenues | 279,880 | 300,378 | |
As Reported [Member] | Revenue Recognized Over Time [Member] | |||
Revenues: | |||
Revenues | 86,227 | 63,422 | |
As Reported [Member] | Products [Member] | |||
Revenues: | |||
Revenues | 241,212 | 285,883 | |
Cost of revenues: | |||
Cost of revenues | 154,654 | 175,009 | |
As Reported [Member] | Application Subscriptions and Other Services [Member] | |||
Revenues: | |||
Revenues | 124,895 | 77,917 | |
Cost of revenues: | |||
Cost of revenues | 68,150 | 41,027 | |
Adjustment [Member] | Telematics Devices and Accessories [Member] | |||
Revenues: | |||
Revenues | (6,963) | (7,021) | |
Adjustment [Member] | Rental Income and Other Services [Memer] | |||
Revenues: | |||
Revenues | (95) | 3,823 | |
Adjustment [Member] | Recurring Application Subscriptions [Member] | |||
Revenues: | |||
Revenues | 7,058 | 3,198 | |
Adjustment [Member] | Revenue Recognized At Point In Time [Member] | |||
Revenues: | |||
Revenues | (7,064) | (522) | |
Adjustment [Member] | Revenue Recognized Over Time [Member] | |||
Revenues: | |||
Revenues | 7,064 | 522 | |
Adjustment [Member] | Products [Member] | |||
Revenues: | |||
Revenues | 10,274 | 2,846 | |
Cost of revenues: | |||
Cost of revenues | 4,458 | 2,059 | |
Adjustment [Member] | Application Subscriptions and Other Services [Member] | |||
Revenues: | |||
Revenues | (10,274) | (2,846) | |
Cost of revenues: | |||
Cost of revenues | $ (4,458) | $ (2,059) |
DESCRIPTION OF BUSINESS AND S_8
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Useful Lives of Assets) (Details) - USD ($) | 12 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Impairment losses | $ 825,000 | $ 5,754,000 | |
LoJack U.S. SVR Products goodwill | 12,023,000 | ||
Lo Jack U S S V R | |||
Property, Plant and Equipment [Line Items] | |||
Impairment losses | 24,647,000 | 19,143,000 | |
LoJack U.S. SVR Products goodwill | 12,023,000 | $ 0 | |
Lo Jack U S S V R | Discontinued Operations [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Impairment losses | $ 23,800,000 | $ 13,400,000 | |
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 | 7 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_9
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Summary of Long-lived Assets Impaired) (Details) - USD ($) | 12 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2019 | |
Impaired Long Lived Assets Held And Used [Line Items] | |||
LoJack U.S. SVR Products goodwill | $ 12,023,000 | ||
Other intangible assets | 1,483,000 | $ 17,700,000 | |
Operating lease right-of-use assets and related liabilities | 700,000 | 600,000 | |
Total | 825,000 | 5,754,000 | |
Lo Jack U S S V R | |||
Impaired Long Lived Assets Held And Used [Line Items] | |||
LoJack U.S. SVR Products goodwill | 12,023,000 | $ 0 | |
Property and equipment and other assets | 10,483,000 | 514,000 | |
Operating lease right-of-use assets and related liabilities | 658,000 | 895,000 | |
Total | 24,647,000 | 19,143,000 | |
Developed Technology [Member] | |||
Impaired Long Lived Assets Held And Used [Line Items] | |||
Other intangible assets | 478,000 | ||
Developed Technology [Member] | Lo Jack U S S V R | |||
Impaired Long Lived Assets Held And Used [Line Items] | |||
Other intangible assets | 478,000 | ||
Trade Names [Member] | |||
Impaired Long Lived Assets Held And Used [Line Items] | |||
Other intangible assets | 11,500,000 | ||
Trade Names [Member] | Lo Jack U S S V R | |||
Impaired Long Lived Assets Held And Used [Line Items] | |||
Other intangible assets | 11,540,000 | ||
Dealer and Customer Relationships [Member] | |||
Impaired Long Lived Assets Held And Used [Line Items] | |||
Other intangible assets | 1,005,000 | ||
Dealer and Customer Relationships [Member] | Lo Jack U S S V R | |||
Impaired Long Lived Assets Held And Used [Line Items] | |||
Other intangible assets | $ 1,005,000 | $ 6,194,000 |
DISCONTINUED OPERATIONS (Narrat
DISCONTINUED OPERATIONS (Narrative) (Details) - LoJack North America [Member] - USD ($) $ in Millions | 3 Months Ended | |
May 31, 2021 | Mar. 15, 2021 | |
Scenario Forecast [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Net proceeds received from licensing intellectual property rights | $ 6.8 | |
Subsequent Event [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Discontinued operation, upfront cash consideration | $ 8 |
DISCONTINUED OPERATIONS (Summar
DISCONTINUED OPERATIONS (Summary of Balance Sheet Classification Related to Discontinued Operations) (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Feb. 29, 2020 |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Current assets of discontinued operations | $ 7,872 | $ 12,918 |
Non-current assets of discontinued operations | 15,218 | |
Current liabilities of discontinued operations | 4,096 | 7,746 |
Non-current liabilities of discontinued operations | 1,773 | 2,808 |
LoJack North America [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Accounts receivable, net | 5,050 | 7,634 |
Inventories | 1,721 | 4,306 |
Prepaid expenses and other current assets | 1,101 | 978 |
Current assets of discontinued operations | 7,872 | 12,918 |
Goodwill | 12,023 | |
Other intangible assets, net | 2,941 | |
Other assets | 254 | |
Non-current assets of discontinued operations | 15,218 | |
Carrying amount of the major classes of assets included in discontinued operations | 7,872 | 28,136 |
Accounts payable | 1,956 | 3,815 |
Deferred revenue | 1,849 | 2,277 |
Other current liabilities | 291 | 1,654 |
Current liabilities of discontinued operations | 4,096 | 7,746 |
Other non-current liabilities | 1,773 | 2,808 |
Non-current liabilities of discontinued operations | 1,773 | 2,808 |
Carrying amount of the major classes of liabilities included in discontinued operations | $ 5,869 | $ 10,554 |
DISCONTINUED OPERATIONS (Summ_2
DISCONTINUED OPERATIONS (Summary of Statement of Operations Included in Discontinued Operations) (Details) - LoJack North America [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2019 | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Revenues | $ 32,692 | $ 44,334 | $ 52,262 |
Cost of revenues | 21,133 | 26,524 | 30,376 |
Gross profit | 11,559 | 17,810 | 21,886 |
Operating expenses: | |||
Research and development | 1,441 | 2,443 | 2,115 |
Selling and marketing | 9,988 | 13,155 | 12,219 |
General and administrative | 7,041 | 8,190 | 8,113 |
Intangible asset amortization | 2,199 | 6,450 | 7,505 |
Restructuring | 2,220 | 1,935 | 5,716 |
Impairment losses | 23,822 | 13,389 | |
Total operating expenses | 46,711 | 45,562 | 35,668 |
Operating loss | (35,152) | (27,752) | (13,782) |
Non-operating income | 10,790 | ||
Loss from discontinued operations before income taxes | (35,152) | (27,752) | (2,992) |
Income tax benefit | 718 | ||
Net loss from discontinued operations, net of tax | $ (35,152) | $ (27,752) | $ (2,274) |
DISCONTINUED OPERATIONS (Summ_3
DISCONTINUED OPERATIONS (Summary of Statement of Cash Flow That Are Included in Discontinued Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2019 | |
Changes in operating assets and liabilities: | |||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES FROM DISCONTINUED OPERATIONS | $ (4,412) | $ 4,707 | $ 3,067 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Net cash used in discontinued operations | (2,338) | (891) | (1,608) |
LoJack North America [Member] | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net loss from discontinued operations, net of tax | (35,152) | (27,752) | (2,274) |
Adjustments to reconcile net loss from discontinued operations to net cash provided by (used in) operating activities: | |||
Depreciation | 2,260 | 2,225 | 2,725 |
Intangible asset amortization | 2,199 | 6,450 | 7,505 |
Stock-based compensation | 1,516 | 1,754 | 1,490 |
Impairment losses | 23,822 | 14,599 | |
Noncash operating lease cost | 4,901 | 3,360 | |
Deferred tax assets, net | (719) | ||
Changes in operating assets and liabilities: | |||
Accounts receivable | 2,584 | 2,053 | (833) |
Inventories | 2,585 | 2,456 | 400 |
Prepaid expenses and other current assets | (123) | 2,376 | (2,699) |
Accounts payable | (1,859) | 1,158 | (156) |
Accrued liabilities | (1,363) | (627) | (2,460) |
Deferred revenue | (428) | (70) | 88 |
Operating lease liabilities | (5,354) | (3,275) | |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES FROM DISCONTINUED OPERATIONS | (4,412) | 4,707 | 3,067 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | (2,338) | (891) | (1,608) |
Net cash used in discontinued operations | (2,338) | (891) | (1,608) |
Net change in cash and cash equivalents | $ (6,750) | $ 3,816 | $ 1,459 |
ACQUISITIONS (Summary of Final
ACQUISITIONS (Summary of Final Purchase Price Allocations) (Details) - USD ($) $ in Thousands | Apr. 12, 2019 | Mar. 19, 2019 | Feb. 28, 2019 | Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2021 |
Business Acquisition [Line Items] | ||||||
Add debt paid at closing | $ 7,305 | |||||
Net cash paid | $ 60,652 | $ 13,031 | ||||
Fair value of net assets and liabilities assumed: | ||||||
Goodwill | 94,312 | $ 94,617 | ||||
Tracker UK [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price | 13,097 | |||||
Less cash acquired, net of debt assumed | (65) | |||||
Net cash paid | 13,032 | |||||
Less provisional amount of working capital claim against escrowed consideration | (973) | |||||
Net consideration | 12,059 | |||||
Fair value of net assets and liabilities assumed: | ||||||
Current assets other than cash | 3,549 | |||||
Property and equipment | 1,008 | |||||
Other non-current assets | 104 | |||||
Current liabilities | (3,130) | |||||
Deferred revenue | (3,162) | |||||
Deferred tax liability | (874) | |||||
Other non-current liabilities | (270) | |||||
Total fair value of net assets acquired | 3,763 | |||||
Goodwill | 8,296 | |||||
LoJack Mexico [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price | 14,306 | |||||
Less cash acquired, net of debt assumed | (1,586) | |||||
Net cash paid | $ 14,300 | $ 2,000 | 12,720 | |||
Net consideration | 12,720 | |||||
Add previously held interest | 2,021 | |||||
Fair value of net assets and liabilities assumed: | ||||||
Current assets other than cash | 4,537 | |||||
Property and equipment | 3,652 | |||||
Other non-current assets | 1,301 | |||||
Current liabilities | (2,586) | |||||
Deferred revenue | (4,507) | |||||
Deferred tax liability | (943) | |||||
Total fair value of net assets acquired | 8,454 | |||||
Goodwill | 6,287 | |||||
Synovia [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price | $ 49,800 | 29,500 | ||||
Add debt paid at closing | 20,296 | |||||
Less cash acquired, net of debt assumed | (889) | |||||
Net cash paid | $ 49,800 | 48,907 | ||||
Net consideration | 48,907 | |||||
Fair value of net assets and liabilities assumed: | ||||||
Current assets other than cash | 9,637 | |||||
Property and equipment | 24,840 | |||||
Deferred tax assets | 2,061 | |||||
Other non-current assets | 177 | |||||
Current liabilities | (4,645) | |||||
Due to factors | (19,692) | |||||
Deferred revenue | (4,319) | |||||
Total fair value of net assets acquired | 30,159 | |||||
Goodwill | 18,748 | |||||
Dealer Relationships [Member] | Tracker UK [Member] | ||||||
Fair value of net assets and liabilities assumed: | ||||||
Finite-lived intangible assets | 2,354 | |||||
Dealer Relationships [Member] | LoJack Mexico [Member] | ||||||
Fair value of net assets and liabilities assumed: | ||||||
Finite-lived intangible assets | 7,000 | |||||
Dealer Relationships [Member] | Synovia [Member] | ||||||
Fair value of net assets and liabilities assumed: | ||||||
Finite-lived intangible assets | 16,700 | |||||
Trade Names [Member] | Tracker UK [Member] | ||||||
Fair value of net assets and liabilities assumed: | ||||||
Finite-lived intangible assets | 2,354 | |||||
Trade Names [Member] | Synovia [Member] | ||||||
Fair value of net assets and liabilities assumed: | ||||||
Finite-lived intangible assets | 1,600 | |||||
Developed Technology [Member] | Tracker UK [Member] | ||||||
Fair value of net assets and liabilities assumed: | ||||||
Finite-lived intangible assets | 1,830 | |||||
Developed Technology [Member] | Synovia [Member] | ||||||
Fair value of net assets and liabilities assumed: | ||||||
Finite-lived intangible assets | $ 3,800 |
ACQUISITIONS (Narrative) (Detai
ACQUISITIONS (Narrative) (Details) $ in Thousands, £ in Millions | Apr. 12, 2019USD ($) | Mar. 19, 2019USD ($) | Feb. 25, 2019USD ($) | Feb. 25, 2019GBP (£) | Feb. 28, 2019USD ($) | Feb. 29, 2020USD ($) | Feb. 28, 2019USD ($) |
Business Acquisition [Line Items] | |||||||
Acquisition related costs | $ 2,210 | $ 935 | |||||
Purchase price, net of cash on hand | 60,652 | $ 13,031 | |||||
Tracker Network (UK) Limited [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price | $ 13,000 | £ 10 | |||||
LoJack Mexico [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price | 14,306 | ||||||
Purchase price, net of cash on hand | $ 14,300 | $ 2,000 | 12,720 | ||||
Percentage of shares purchase in business combination | 87.50% | 12.50% | 12.50% | ||||
Gain on equity ownership | 300 | ||||||
Synovia [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price | $ 49,800 | 29,500 | |||||
Purchase price, net of cash on hand | $ 49,800 | 48,907 | |||||
General and Administrative Expenses [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition related costs | $ 1,200 | $ 900 |
CONCENTRATION OF CUSTOMERS AN_3
CONCENTRATION OF CUSTOMERS AND SUPPLIERS (Narrative) (Details) - Supplier | 12 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2019 | |
Customer Concentration Risk [Member] | Major Customer One [Member] | Minimum [Member] | Revenues [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 10.00% | ||
Customer Concentration Risk [Member] | Major Customer One [Member] | Minimum [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 10.00% | ||
Supplier Concentration Risk [Member] | Inventory Purchases [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 66.00% | 50.00% | 59.00% |
Number of suppliers | 4 | 3 | 2 |
Supplier Concentration Risk [Member] | Minimum [Member] | Accounts Payable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 10.00% |
CONCENTRATION OF CUSTOMERS AN_4
CONCENTRATION OF CUSTOMERS AND SUPPLIERS - Schedule of Significant Customers and Significant Suppliers Concentration Risk Percentage (Details) | 12 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2019 | |
Revenues [Member] | Customer Concentration Risk [Member] | Customer A [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 19.00% | 16.00% | 18.00% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer A [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 25.00% | 21.00% | 16.00% |
Accounts Payable [Member] | Supplier Concentration Risk [Member] | Supplier A [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 17.00% | 13.00% | 0.00% |
Accounts Payable [Member] | Supplier Concentration Risk [Member] | Supplier B [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 11.00% | 10.00% | 2.00% |
Accounts Payable [Member] | Supplier Concentration Risk [Member] | Supplier C [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 8.00% | 12.00% | 19.00% |
Accounts Payable [Member] | Supplier Concentration Risk [Member] | Supplier D [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 5.00% | 0.00% | 33.00% |
CASH, CASH EQUIVALENTS AND IN_3
CASH, CASH EQUIVALENTS AND INVESTMENTS (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Feb. 29, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cost | $ 96,434 | $ 111,330 | |
Unrealized Gains (Losses) | 367 | 26 | |
Fair Value | 96,801 | 111,356 | |
Cash and Cash Equivalents [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 94,624 | 107,404 | |
Other Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 2,177 | 3,952 | |
Cash [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cost | 38,823 | 31,895 | |
Unrealized Gains (Losses) | |||
Fair Value | 38,823 | 31,895 | |
Cash [Member] | Cash and Cash Equivalents [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 38,823 | 31,895 | |
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 | 12,801 | 5,508 | |
Unrealized Gains (Losses) | |||
Fair Value | 12,801 | 5,508 | |
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 | 12,801 | 5,508 | |
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] | 1,810 | 3,926 |
Unrealized Gains (Losses) | [1] | 367 | 26 |
Fair Value | [1] | 2,177 | 3,952 |
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] | Other Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | [1] | 2,177 | 3,952 |
Repurchase Agreements [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cost | 43,000 | 60,000 | |
Unrealized Gains (Losses) | |||
Fair Value | 43,000 | 60,000 | |
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 | 43,000 | 60,000 | |
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 | 10,001 | ||
Unrealized Gains (Losses) | |||
Fair Value | 10,001 | ||
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 | 10,001 | ||
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, bonds and money market mutual funds held in a “Rabbi Trust” and are restricted for payment obligations to non-qualified deferred compensation plan participants. In addition to the mutual funds above, our “Rabbi Trust” also included Corporate-Owned Life Insurance (COLI) starting in fiscal 2020. As of February 28, 2021, the cash surrender value of COLI was $5.0 million. See Note 10 for discussion of the deferred compensation plan. |
CASH, CASH EQUIVALENTS AND IN_4
CASH, CASH EQUIVALENTS AND INVESTMENTS (Parenthetical) (Details) $ in Millions | Feb. 28, 2021USD ($) |
Cash And Cash Equivalents [Abstract] | |
Cash surrender value of Corporate-Owned Life Insurance (COLI) | $ 5 |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Feb. 29, 2020 |
Receivables [Abstract] | ||
Accounts receivable | $ 66,983 | $ 66,903 |
Allowance for doubtful accounts | (3,658) | (2,264) |
Accounts receivable, net | $ 63,325 | $ 64,639 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Feb. 29, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 10,480 | $ 17,034 |
Finished goods | 13,183 | 15,438 |
Inventories | $ 23,663 | $ 32,472 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Property, equipment and improvements, net of accumulated depreciation and amortization | $ 41,081 | $ 55,878 |
Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 2 years | |
Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 7 years | |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and improvements, gross | $ 7,924 | 9,425 |
Leasehold improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 5 years | |
Leasehold improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 10 years | |
Recovery system components and law enforcement tracking units [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and improvements, gross | $ 13,975 | 17,096 |
Recovery system components and law enforcement tracking units [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 7 years | |
Recovery system components and law enforcement tracking units [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 10 years | |
Leased devices [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and improvements, gross | $ 31,988 | 30,646 |
Leased devices [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 2 years | |
Leased devices [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 5 years | |
Plant equipment and tooling [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and improvements, gross | $ 9,789 | 13,026 |
Plant equipment and tooling [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 2 years | |
Plant equipment and tooling [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 5 years | |
Office equipment, computers and furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and improvements, gross | $ 12,438 | 11,598 |
Office equipment, computers and furniture [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Office equipment, computers and furniture [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 5 years | |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and improvements, gross | $ 49,993 | 50,760 |
Software [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Software [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 7 years | |
Property and Equipment, Excluding Fixed Assets Not Yet In Service [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and improvements, gross | $ 126,107 | 132,551 |
Less accumulated depreciation and amortization | (88,870) | (81,079) |
Property, equipment and improvements, net of accumulated depreciation and amortization | 37,237 | 51,472 |
Fixed Assets Not Yet in Service [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and improvements, gross | $ 3,844 | $ 4,406 |
PROPERTY AND EQUIPMENT (Narrati
PROPERTY AND EQUIPMENT (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 17,221 | $ 17,441 | $ 5,855 |
Net Loss from Discontinued Operations [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Impairment losses | 8,900 | 500 | |
Tower Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Impairment losses | $ 500 | ||
Property and Equipment [Member] | Lo Jack U S S V R | |||
Property, Plant and Equipment [Line Items] | |||
Impairment losses | $ 9,000 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Schedule of Goodwill) (Details) $ in Thousands | 12 Months Ended |
Feb. 28, 2021USD ($) | |
Goodwill [Line Items] | |
Balance as of February 29, 2020 | $ 106,335 |
Impairment loss | (12,023) |
Effect of exchange rate change on goodwill | 305 |
Balance as of February 28, 2021 | 94,617 |
Software & Subscription Services [Member] | |
Goodwill [Line Items] | |
Balance as of February 29, 2020 | 55,132 |
Effect of exchange rate change on goodwill | 305 |
Balance as of February 28, 2021 | 55,437 |
Telematics Products [Member] | |
Goodwill [Line Items] | |
Balance as of February 29, 2020 | 39,180 |
Balance as of February 28, 2021 | 39,180 |
LoJack U.S. SVR Products [Member] | |
Goodwill [Line Items] | |
Balance as of February 29, 2020 | 12,023 |
Impairment loss | $ (12,023) |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS (Schedule of Other Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross, Beginning balance | $ 117,488 | |
Currency Adjustments | 56 | |
Impairment | (1,483) | $ (17,700) |
Gross, Ending balance | 116,061 | 117,488 |
Accumulated Amortization, Beginning balance | 71,593 | |
Expense | 6,980 | |
Accumulated Amortization, Ending balance | 78,573 | 71,593 |
Net beginning | 45,895 | |
Net ending | 37,488 | 45,895 |
Developed Technology Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross, Beginning balance | 27,363 | |
Currency Adjustments | 109 | |
Impairment | (478) | |
Gross, Ending balance | 26,994 | 27,363 |
Accumulated Amortization, Beginning balance | 21,437 | |
Expense | 2,620 | |
Accumulated Amortization, Ending balance | 24,057 | 21,437 |
Net beginning | 5,926 | |
Net ending | 2,937 | $ 5,926 |
Developed Technology Rights [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization period | 4 years | |
Developed Technology Rights [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization period | 6 years | |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization period | 10 years | |
Gross, Beginning balance | 30,093 | |
Currency Adjustments | 164 | |
Impairment | $ (11,500) | |
Gross, Ending balance | 30,257 | 30,093 |
Accumulated Amortization, Beginning balance | 16,303 | |
Expense | 2,125 | |
Accumulated Amortization, Ending balance | 18,428 | 16,303 |
Net beginning | 13,790 | |
Net ending | 11,829 | 13,790 |
Customer Lists [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross, Beginning balance | 25,304 | |
Gross, Ending balance | 25,304 | 25,304 |
Accumulated Amortization, Beginning balance | 22,903 | |
Expense | 48 | |
Accumulated Amortization, Ending balance | 22,951 | 22,903 |
Net beginning | 2,401 | |
Net ending | 2,353 | $ 2,401 |
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 | 34,139 | |
Currency Adjustments | (217) | |
Impairment | (1,005) | |
Gross, Ending balance | 32,917 | $ 34,139 |
Accumulated Amortization, Beginning balance | 10,753 | |
Expense | 2,149 | |
Accumulated Amortization, Ending balance | 12,902 | 10,753 |
Net beginning | 23,386 | |
Net ending | 20,015 | $ 23,386 |
Dealer and Customer Relationships [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization period | 10 years | |
Dealer and Customer Relationships [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization period | 15 years | |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization period | 5 years | |
Gross, Beginning balance | 589 | |
Gross, Ending balance | 589 | $ 589 |
Accumulated Amortization, Beginning balance | 197 | |
Expense | 38 | |
Accumulated Amortization, Ending balance | 235 | 197 |
Net beginning | 392 | |
Net ending | $ 354 | $ 392 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS (Schedule of Other Intangible Assets) (Parenthetical) (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Feb. 29, 2020 |
Finite Lived Intangible Assets [Line Items] | ||
Intangible asset net | $ 78,573 | $ 71,593 |
Discontinued Operations [Member] | Development Technology, Dealer and Customer Relationships [Member] | Lo Jack U S S V R | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible asset net | $ 2,900 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2019 | |
Finite Lived Intangible Assets [Line Items] | |||
Impairment loss | $ 1,483 | $ 17,700 | |
Intangible assets amortization expense | 4,781 | 5,871 | $ 3,931 |
Net Loss from Discontinued Operations [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Impairment loss | 1,500 | 12,000 | |
Trade Names [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Impairment loss | 11,500 | ||
Dealer Relationships [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Impairment loss | 1,000 | $ 6,200 | |
Developed Technology [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Impairment loss | $ 478 |
GOODWILL AND OTHER INTANGIBLE_7
GOODWILL AND OTHER INTANGIBLE ASSETS (Schedule of Future Amortization Expense) (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Feb. 29, 2020 |
Fiscal Year | ||
2022 | $ 5,541 | |
2023 | 5,390 | |
2024 | 4,545 | |
2025 | 4,430 | |
2026 | 4,108 | |
Thereafter | 13,474 | |
Net | $ 37,488 | $ 42,954 |
OTHER ASSETS (Schedule of Other
OTHER ASSETS (Schedule of Other Assets) (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Feb. 29, 2020 |
Other Assets Noncurrent Disclosure [Abstract] | ||
Deferred product cost | $ 4,850 | $ 7,564 |
Deferred compensation plan assets | 7,141 | 6,041 |
Lease receivables, non-current | 10,403 | 5,992 |
Prepaid commissions | 2,438 | 2,318 |
Other | 2,337 | 2,599 |
Total | $ 27,169 | $ 24,514 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | 43 Months Ended | ||
Mar. 31, 2019 | Sep. 30, 2015 | Feb. 29, 2020 | Feb. 28, 2019 | Mar. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||||
Investment in equity method investment | $ 530 | $ 2,631 | |||
Equity in net loss | $ 530 | 6,787 | |||
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% | ||||
Impairment charge | $ 500 | $ 5,000 | |||
Aggregate loan amount | $ 8,000 | $ 8,000 | |||
Equity in net loss | $ 5,300 |
FINANCING ARRANGEMENTS (Summary
FINANCING ARRANGEMENTS (Summary of Balances Attributable to Financing Arrangements) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Debt Instrument [Line Items] | ||
Total term debt | $ 238,081 | $ 271,970 |
Unamortized discount and issuance costs | (51,610) | (61,763) |
Less: current portion of long-term term debt | (4,317) | (33,119) |
Long-term debt, net of current portion | $ 182,154 | 177,088 |
2020 Convertible Notes, 1.625% Fixed Rate [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | May 15, 2020 | |
Effective Interest Rate | 6.20% | |
Total term debt | 27,599 | |
2025 Convertible Notes, 2.00% Fixed Rate [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | Aug. 1, 2025 | |
Effective Interest Rate | 7.56% | |
Total term debt | $ 230,000 | 230,000 |
Due to Factors Under Revenue Assignment [Member] | ||
Debt Instrument [Line Items] | ||
Effective Interest Rate | 4.70% | |
Maturity Date | 2020 2021 2022 2023 2024 | |
Total term debt | $ 8,081 | $ 14,371 |
FINANCING ARRANGEMENTS (Summa_2
FINANCING ARRANGEMENTS (Summary of Balances Attributable to Financing Arrangements) (Parenthetical) (Details) | Feb. 28, 2021 | Feb. 29, 2020 |
2020 Convertible Notes, 1.625% Fixed Rate [Member] | ||
Debt Instrument [Line Items] | ||
Fixed interest rate | 1.625% | 1.625% |
2025 Convertible Notes, 2.00% Fixed Rate [Member] | ||
Debt Instrument [Line Items] | ||
Fixed interest rate | 2.00% | 2.00% |
FINANCING ARRANGEMENTS (Details
FINANCING ARRANGEMENTS (Details) | Nov. 19, 2020USD ($) | May 15, 2020USD ($) | Apr. 16, 2020USD ($) | Jul. 28, 2018USD ($) | Jul. 20, 2018USD ($) | Mar. 30, 2018USD ($) | May 28, 2015USD ($) | Nov. 30, 2019USD ($) | Jul. 31, 2018USD ($)shares | Feb. 28, 2021USD ($) | Feb. 29, 2020USD ($) | Feb. 28, 2019USD ($) | May 31, 2020USD ($) | Apr. 12, 2019USD ($) | May 31, 2015USD ($) |
Debt Instrument [Line Items] | |||||||||||||||
Fair value of convertible notes | $ 212,000,000 | $ 225,000,000 | |||||||||||||
Repayment of revolving credit facility | 20,000,000 | ||||||||||||||
Loss on extinguishment of debt | (2,408,000) | $ (2,033,000) | |||||||||||||
Repayments of convertible debt | 27,599,000 | 94,683,000 | 53,683,000 | ||||||||||||
Repurchase of common stock | $ 49,000,000 | ||||||||||||||
Synovia Solutions LLC (“Synovia”) [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Percentage of subscription contract value on sales price paid | 80.00% | ||||||||||||||
Fair value of debt | $ 19,700,000 | ||||||||||||||
Pre-tax cost of debt percentage | 4.70% | ||||||||||||||
Unamortized discount | $ 1,500,000 | ||||||||||||||
Interest expense related to debt recognized | 500,000 | 700,000 | |||||||||||||
Non-cash revenue recognized from arrangements with financial institutions | 6,300,000 | $ 6,800,000 | |||||||||||||
2025 Convertible Notes [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Aggregate principal amount | $ 230,000,000 | ||||||||||||||
Debt instrument, face amount | $ 230,000,000 | ||||||||||||||
Fixed interest rate | 2.00% | ||||||||||||||
Proceeds from sale of notes | $ 222,700,000 | ||||||||||||||
Issuance costs | $ 7,300,000 | 7,300,000 | |||||||||||||
Amount utilized from net proceeds of offering | 90,000,000 | ||||||||||||||
Purchase of note hedges, net of tax | 21,200,000 | $ 15,900,000 | |||||||||||||
Repurchase of common stock | 15,000,000 | ||||||||||||||
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. | ||||||||||||||
Maturity date | Aug. 1, 2025 | ||||||||||||||
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. | ||||||||||||||
Number of common stock with hedge transactions | shares | 7,480,000 | ||||||||||||||
Conversion rate of shares of common stock | 32.5256 | 41.3875 | |||||||||||||
Payments for notes hedges | $ 21,200,000 | ||||||||||||||
2020 Convertible Notes [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Fair value of convertible notes | $ 47,600,000 | ||||||||||||||
Debt instrument, face amount | $ 172,500,000 | ||||||||||||||
Fixed interest rate | 1.625% | ||||||||||||||
Aggregate amount of notes repurchase | 50,000,000 | $ 94,900,000 | |||||||||||||
Repurchases of notes including accrued interest | 53,800,000 | 94,700,000 | |||||||||||||
Allocated notes repurchase price | 53,700,000 | ||||||||||||||
Notes repurchase price, equity component | 6,100,000 | ||||||||||||||
Carrying value of repurchased notes | 45,600,000 | 92,300,000 | |||||||||||||
Loss on extinguishment of debt | (2,000,000) | (2,400,000) | |||||||||||||
Fair value of the liability | $ 94,700,000 | ||||||||||||||
Repayments of convertible debt | $ 27,600,000 | ||||||||||||||
Issuance costs | $ 4,300,000 | ||||||||||||||
Conversion rate of shares of common stock | 36.2398 | ||||||||||||||
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] | Discount Rate [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Market interest rate used to discount nonconvertible debt | 0.0436 | ||||||||||||||
Paycheck Protection Program [Member] | JPMorgan Chase Bank, N.A [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Proceeds from loan amount | $ 10,000,000 | ||||||||||||||
Maximum [Member] | 2025 Convertible Notes [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, 2022 | ||||||||||||||
Credit facility bear interest | highest of (i) 0%, (ii) the rate of interest publicly announced by JP Morgan Chase Bank, N.A. (the “Agent”) as its prime rate in effect at its principal office in New York City, (iii) the overnight bank funding rate as determined by the Federal Reserve Bank of New York plus 0.50% and (iv) the LIBOR-based rate for a one-month interest period on such day plus 1%; or (b) for Eurodollar loans, the higher of (x) 1.00% and (y) the LIBOR-based rate for one, three or six months (as selected by the Company) for Eurodollar deposits. An applicable margin is added based on the Company’s senior leverage ratio, ranging from 1.50% to 2.00% for base rate loans, and from 2.50% to 3.00% for Eurodollar loans. We will also pay a commitment fee based on our senior leverage ratio ranging from 0.40% to 0.50%, payable quarterly in arrears, on the average daily unused amount of the Credit Facility. | ||||||||||||||
Credit facility interest rate | 0.00% | ||||||||||||||
Borrowings outstanding | $ 0 | $ 20,000,000 | |||||||||||||
Repayment of revolving credit facility | $ 20,000,000 | ||||||||||||||
Accrued interest | $ 100,000 | ||||||||||||||
Revolving Credit Facility | Federal Home Loan Bank Of New York [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Variable interest rate | 0.50% | ||||||||||||||
Revolving Credit Facility | LIBOR [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Variable interest rate | 1.00% | ||||||||||||||
Description of variable rate basis | LIBOR-based rate for one, three or six months | ||||||||||||||
Revolving Credit Facility | Eurodollar [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Variable interest rate | 1.00% | ||||||||||||||
Revolving Credit Facility | Minimum [Member] | Eurodollar [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Senior leverage ratio | 2.50% | ||||||||||||||
Revolving Credit Facility | Minimum [Member] | Base Rate [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Senior leverage ratio | 1.50% | ||||||||||||||
Revolving Credit Facility | Minimum [Member] | Prime Rate [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Senior leverage ratio | 0.40% | ||||||||||||||
Revolving Credit Facility | Maximum [Member] | Eurodollar [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Senior leverage ratio | 3.00% | ||||||||||||||
Revolving Credit Facility | Maximum [Member] | Base Rate [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Senior leverage ratio | 2.00% | ||||||||||||||
Revolving Credit Facility | Maximum [Member] | Prime Rate [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Senior leverage ratio | 0.50% |
FINANCING ARRANGEMENTS (Summa_3
FINANCING ARRANGEMENTS (Summary of Liability and Equity Components of Notes, Issuance Costs and Applicable Assumptions Used for Calculation) (Details) $ / shares in Units, $ in Millions | Jul. 28, 2018USD ($)$ / shares | May 28, 2015USD ($)$ / shares | Jul. 31, 2018 | Jul. 20, 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 | $ 138.9 | |||
Debt Instrument, Measurement Input [Extensible List] | Discount Rate [Member] | |||
Fair value measurement level | Level 3 | |||
Fair value of embedded equity component upon issuance | $ 33.6 | |||
Deferred tax asset effect | 16 | |||
Total issuance cost | 4.3 | |||
Equity component | 1 | |||
Deferred tax asset effect | $ 0.4 | |||
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 | $ 160.8 | |||
Debt Instrument, Measurement Input [Extensible List] | Discount Rate [Member] | |||
Fair value measurement level | Level 3 | |||
Fair value of embedded equity component upon issuance | $ 69.2 | |||
Deferred tax asset effect | 17.3 | |||
Total issuance cost | 7.3 | $ 7.3 | ||
Equity component | 2.2 | |||
Deferred tax asset effect | $ 0.5 |
FINANCING ARRANGEMENTS (Summa_4
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 | 12 Months Ended | 33 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2021 | |
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring charges | $ 2,534 | $ 2,465 | $ 2,299 | $ 17,200 |
Severance and employee related costs | 10,700 | |||
Restructuring charges | 6,400 | |||
Decrease in operating lease right of use assets | 1,200 | |||
Discontinued Operations [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring charges | $ 2,200 | $ 1,900 | $ 5,700 | |
Canton, Massachusetts [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring charges | $ 3,300 |
RESTRUCTURING CHARGES - Summary
RESTRUCTURING CHARGES - Summary of Charges Resulting from Implementation of Restructuring Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2019 | |
Restructuring Cost And Reserve [Line Items] | |||
Restructuring charges | $ 4,754 | $ 4,400 | $ 8,015 |
Personnel [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring charges | 3,904 | 2,547 | 4,275 |
Facilities [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring charges | 850 | 1,853 | 3,740 |
Cost of Revenue [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring charges | 1,380 | 2,346 | 2,586 |
Cost of Revenue [Member] | Personnel [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring charges | 530 | 493 | 1,585 |
Cost of Revenue [Member] | Facilities [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring charges | 850 | 1,853 | 1,001 |
Research and Development [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring charges | 33 | 222 | 1,215 |
Research and Development [Member] | Personnel [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring charges | 33 | 222 | 412 |
Research and Development [Member] | Facilities [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring charges | 803 | ||
Selling and Marketing [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring charges | 820 | 601 | 2,616 |
Selling and Marketing [Member] | Personnel [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring charges | 820 | 601 | 1,228 |
Selling and Marketing [Member] | Facilities [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring charges | 1,388 | ||
General and Administrative Expenses [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring charges | 2,521 | 1,231 | 1,598 |
General and Administrative Expenses [Member] | Personnel [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring charges | $ 2,521 | $ 1,231 | 1,050 |
General and Administrative Expenses [Member] | Facilities [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring charges | $ 548 |
RESTRUCTURING CHARGES - Summa_2
RESTRUCTURING CHARGES - Summary of Activity Resulting from Implementation of Restructuring Plan within Other Current and Non-current Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Restructuring Cost And Reserve [Line Items] | ||
Restructuring liabilities, Beginning Balance | $ 2,742 | $ 5,756 |
Cease-use liability reclassified as reduction of Operating lease right-of-use assets | (2,977) | |
Charges | 4,755 | 3,191 |
Payments | (3,969) | (3,228) |
Restructuring liabilities, Ending Balance | 3,528 | 2,742 |
Personnel [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring liabilities, Beginning Balance | 2,383 | 2,779 |
Charges | 3,905 | 2,547 |
Payments | (3,651) | (2,943) |
Restructuring liabilities, Ending Balance | 2,637 | 2,383 |
Facilities [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring liabilities, Beginning Balance | 359 | 2,977 |
Cease-use liability reclassified as reduction of Operating lease right-of-use assets | (2,977) | |
Charges | 850 | 644 |
Payments | (318) | (285) |
Restructuring liabilities, Ending Balance | $ 891 | $ 359 |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Mar. 01, 2019 | |
Lessee Lease Description [Line Items] | |||
Operating lease right-of-use assets | $ 14,273 | $ 20,626 | $ 25,600 |
Lease liabilities | 21,987 | 28,941 | $ 29,100 |
Impairment loss on operating lease | $ 700 | 600 | |
Canton, Massachusetts [Member] | |||
Lessee Lease Description [Line Items] | |||
Restructuring cost on operating lease | $ 1,200 |
LEASES (Summary of Lease-relate
LEASES (Summary of Lease-related Assets and Liabilities) (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Feb. 29, 2020 | Mar. 01, 2019 |
Schedule Of Lease Assets And Liabilities [Abstract] | |||
Operating lease right-of-use assets | $ 14,273 | $ 20,626 | $ 25,600 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | camp:OperatingLeaseRightOfUseAssetsMember | ||
Operating lease liabilities (current) | $ 4,926 | 4,662 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherCurrentLiabilitiesMember | ||
Operating lease liabilities | $ 17,061 | 24,279 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | camp:OperatingLeaseLiabilitiesMember | ||
Total lease liabilities | $ 21,987 | $ 28,941 | $ 29,100 |
LEASES (Summary of Lease Costs
LEASES (Summary of Lease Costs Included in Consolidated Statements of Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Lease Cost [Abstract] | ||
Operating lease cost | $ 6,842 | $ 6,497 |
Short-term lease cost | 168 | 848 |
Variable lease cost | 442 | 315 |
Total lease cost | $ 7,452 | $ 7,660 |
LEASES (Schedule of Supplementa
LEASES (Schedule of Supplemental Information Related to Operating Leases) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 7,549 | $ 6,624 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 2,513 | $ 4,071 |
Weighted average remaining lease term | 4 years 8 months 12 days | 7 years 3 months 18 days |
Weighted average discount rate | 5.37% | 5.45% |
LEASES (Schedule of Reconciles
LEASES (Schedule of Reconciles the Undiscounted Cash Flows for Operating Lease Liabilities) (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Feb. 29, 2020 | Mar. 01, 2019 |
Operating Lease Liabilities Payments Due [Abstract] | |||
2022 | $ 5,635 | ||
2023 | 5,208 | ||
2024 | 4,795 | ||
2025 | 3,107 | ||
2026 | 2,322 | ||
Thereafter | 1,922 | ||
Total minimum lease payments | 22,989 | ||
Less imputed interest | (1,002) | ||
Total lease liabilities | 21,987 | $ 28,941 | $ 29,100 |
Less current obligations under leases | (4,926) | (4,662) | |
Long-term lease obligations | $ 17,061 | $ 24,279 |
INCOME TAXES (Income Before Inc
INCOME TAXES (Income Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2019 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (16,964) | $ (31,381) | $ 24,359 |
Foreign | (3,632) | 813 | 2,488 |
Income (loss) from continuing operations before income taxes and equity in net loss of affiliate and related impairment loss | $ (20,596) | $ (30,568) | $ 26,847 |
INCOME TAXES (Components of Inc
INCOME TAXES (Components of Income Tax Benefit (Provision)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2019 | |
Current: | |||
Federal | $ 404 | ||
State | $ 40 | $ (273) | (256) |
Foreign | (602) | (1,629) | (62) |
Total current | (562) | (1,902) | 86 |
Deferred: | |||
Federal | (59) | (12,852) | (2,621) |
State | (18) | (10,645) | (1,295) |
Foreign | 78 | 4,945 | 4,442 |
Total deferred | 1 | (18,552) | 526 |
Income tax benefit (provision) | $ (561) | $ (20,454) | $ 612 |
INCOME TAXES (Reconciliation of
INCOME TAXES (Reconciliation of Income Tax Benefit (Provision)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income tax benefit (provision) at U.S. statutory federal rate | $ 4,325 | $ 6,420 | $ (5,638) |
State income tax benefit (provision), net of federal income tax effect | 602 | 117 | (1,412) |
Foreign taxes benefit (provision) | 900 | (50) | (31) |
U.S. taxes on foreign income | (306) | (571) | |
Valuation allowance reductions (increases) | (5,825) | (27,726) | 5,915 |
Research and other tax credits | 1,322 | 2,594 | 1,658 |
Tax benefits on vested and exercised equity awards | (851) | (606) | 758 |
Non-deductible expenses | (655) | (697) | (229) |
Other, net | (73) | 65 | (409) |
Income tax benefit (provision) | $ (561) | $ (20,454) | $ 612 |
INCOME TAXES (Deferred Tax Asse
INCOME TAXES (Deferred Tax Assets) (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Feb. 29, 2020 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforwards | $ 27,194 | $ 22,500 |
Depreciation, amortization and impairments | (2,117) | (5,353) |
Research and development credits | 21,917 | 20,603 |
Stock-based compensation | 2,944 | 2,556 |
Other tax credits | 2,197 | 2,172 |
Capitalized research costs | 2,638 | 3,389 |
ROU asset | (3,528) | (5,174) |
Lease liabilities | 5,472 | 7,455 |
Payroll and employee benefit accruals | 1,984 | 2,077 |
Allowance for doubtful accounts | 1,163 | 965 |
Other accrued liabilities | 4,743 | 4,887 |
Convertible debt | (8,185) | (9,477) |
Other, net | 5,137 | 3,275 |
Gross deferred tax assets | 61,559 | 49,875 |
Valuation allowance | (56,848) | (45,560) |
Net deferred tax assets | 4,711 | 4,315 |
Reported as: | ||
Deferred tax assets | 4,889 | 4,437 |
Deferred tax liabilities | (178) | (122) |
Net deferred tax assets | $ 4,711 | $ 4,315 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Operating Loss Carryforwards [Line Items] | ||||
Change in valuation allowance deferred tax asset | $ 9,200,000 | $ 33,000,000 | ||
Gross excess tax deductions from share-based payment arrangements | $ 2,900,000 | |||
Tax deficiency from share-based payment arrangements | 4,100,000 | 2,400,000 | ||
Unrecognized tax benefit from uncertain tax position | 1,800,000 | 2,200,000 | 3,200,000 | $ 1,800,000 |
Accrued interest and/or penalties | 0 | |||
Deferred income taxes recognized | 0 | 0 | ||
Minimum [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Income tax benefit attributable to reduction in unrecognized tax benefits | 100,000 | 100,000 | ||
Foreign Tax Authority [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Change in valuation allowance deferred tax asset | 2,100,000 | 1,600,000 | ||
Net operating loss carryforwards | 57,100,000 | |||
Unexpire operating loss carryforwards | 18,600,000 | |||
Tax credit carryforwards | 1,900,000 | |||
Domestic Tax Authority [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | 50,400,000 | |||
Unrecognized tax benefits, period increase (decrease) | (400,000) | $ (1,000,000) | $ (100,000) | |
Domestic Tax Authority [Member] | Research Tax Credit Carryforward [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax credit carryforwards | 10,400,000 | |||
State and Local Jurisdiction [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | 48,400,000 | |||
State and Local Jurisdiction [Member] | Research Tax Credit Carryforward [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax credit carryforwards | $ 8,400,000 |
INCOME TAXES (Summary of Unreco
INCOME TAXES (Summary of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Income Tax Disclosure [Abstract] | |||
Gross amounts of unrecognized tax benefits as of the beginning of the period | $ 2,172 | $ 3,201 | $ 1,029 |
Increases related to prior period tax positions | 0 | 2,241 | |
Decreases related to prior period tax positions | (422) | (1,029) | (69) |
Gross amounts of unrecognized tax benefits as of the end of the period | $ 1,750 | $ 2,172 | $ 3,201 |
STOCKHOLDERS' EQUITY (Schedule
STOCKHOLDERS' EQUITY (Schedule of Repurchase of Common Stock Under Share Repurchase Program) (Details) - USD ($) | 12 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2019 | |
Equity [Abstract] | |||
Total Number of Shares Purchased | 0 | 0 | 2,496,422 |
Average Price Paid per Share | $ 19.63 | ||
Total Purchased | $ 49,000,000 |
STOCKHOLDERS' EQUITY (Narrative
STOCKHOLDERS' EQUITY (Narrative) (Details) - USD ($) $ in Thousands | Jun. 07, 2018 | Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares repurchased | 0 | 0 | 2,496,422 | |
Issuance of common stock under ESPP | 1,750,000 | |||
Stock-based compensation | $ 11,364 | $ 10,667 | $ 9,539 | |
Shares available for grant | 854,578 | |||
Number of options granted | 0 | |||
Unrecognized share-based compensation cost | $ 22,800 | |||
Unrecognized compensation cost, recognition period | 3 years 9 months 18 days | |||
Aggregate fair value of stock options exercised and vested restricted stock-based awards | $ 9,400 | 9,600 | 8,600 | |
Excess tax deductions from equity awards | 0 | 0 | $ 2,900 | |
Employee Stock Purchase Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 700 | $ 500 | ||
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, 2021 | Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Number of Options | ||||
Outstanding, beginning balance | 1,071 | 1,054 | 980 | |
Granted | 171 | 140 | ||
Exercised | (141) | (154) | (66) | |
Forfeited or expired | (152) | |||
Outstanding, ending balance | 778 | 1,071 | 1,054 | 980 |
Exercisable | 507 | 633 | 698 | |
Weighted Average Exercise Price | ||||
Outstanding, beginning balance | $ 14.65 | $ 13.44 | $ 11.29 | |
Granted | 11.11 | 23.08 | ||
Exercised | 4.07 | 2.44 | 1.87 | |
Forfeited or expired | 17.52 | |||
Outstanding, ending balance | 16.01 | 14.65 | 13.44 | $ 11.29 |
Exercisable | $ 15.80 | $ 13.21 | $ 10.22 | |
Weighted average remaining contractual life, Outstanding | 6 years | 6 years 2 months 12 days | 5 years 9 months 18 days | 5 years 10 months 24 days |
Weighted average remaining contractual life, Exercisable | 5 years 2 months 12 days | 4 years 8 months 12 days | 4 years 4 months 24 days | |
Aggregate intrinsic value, Outstanding | $ 130 | |||
Aggregate intrinsic value, Exercisable | $ 123 | $ 850 | $ 3,360 | |
Weighted average grant date fair value of stock options granted during the year | $ 4.82 | $ 11.94 |
STOCKHOLDERS' EQUITY (Fair Valu
STOCKHOLDERS' EQUITY (Fair Value Assumptions) (Details) - Employee Stock Option [Member] | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life (years) | 6 years | |
Expected volatility, minimum | 36.00% | |
Expected volatility, maximum | 43.00% | |
Expected volatility | 43.00% | |
Risk-free interest rates, minimum | 2.50% | |
Risk-free interest rates, maximum | 2.90% | |
Risk-free interest rates | 1.90% | |
Expected dividend yield | 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 Restricted Stock Shares and RSUs Activity) (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2019 | |
Number of Restricted Shares, PSUs and RSUs | |||
Outstanding, beginning balance | 2,215 | 1,507 | 1,434 |
Granted | 1,885 | 1,597 | 787 |
Vested | (656) | (521) | (478) |
Forfeited | (391) | (368) | (236) |
Outstanding, ending balance | 3,053 | 2,215 | 1,507 |
Weighted Average Grant Date Fair Value | |||
Outstanding, beginning balance | $ 14.47 | $ 19.77 | $ 17.72 |
Granted | 7.91 | 11.28 | 22.05 |
Vested | 15.07 | 18.67 | 17.32 |
Forfeited | 11.95 | 16.27 | 19.59 |
Outstanding, ending balance | $ 10.61 | $ 14.47 | $ 19.77 |
Vested, Shares Retained to Cover Statutory Minimum Withholding Taxes | 214 | 177 | 162 |
STOCKHOLDERS' EQUITY (Schedul_2
STOCKHOLDERS' EQUITY (Schedule of Stock-based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | $ 11,364 | $ 10,667 | $ 9,539 |
Cost of Revenues [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | 501 | 526 | 482 |
Research and Development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | 2,690 | 2,213 | 1,342 |
Selling and Marketing [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | 2,333 | 2,647 | 2,663 |
General and Administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | 4,833 | $ 5,281 | $ 5,052 |
Restructuring [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | $ 1,007 |
EARNINGS (LOSS) PER SHARE (Deta
EARNINGS (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2019 | |
Earnings Per Share [Abstract] | |||
Income (loss) from continuing operations before equity in net loss of affiliate and related impairment loss | $ (21,157) | $ (51,022) | $ 27,459 |
Equity in net loss of affiliate and related impairment loss | (530) | (6,787) | |
Net income (loss) from continuing operations | (21,157) | (51,552) | 20,672 |
Net loss from discontinued operations, net of tax | (35,152) | (27,752) | (2,274) |
Net income (loss) | $ (56,309) | $ (79,304) | $ 18,398 |
Basic weighted average number of common shares outstanding | 34,389 | 33,670 | 34,589 |
Dilutive effect of stock options and restricted stock units computed on treasury stock method | 705 | ||
Diluted weighted average number of common shares outstanding | 34,389 | 33,670 | 35,294 |
Basic net income (loss) per common share: | |||
Income (loss) from continuing operations | $ (0.62) | $ (1.54) | $ 0.60 |
Income (loss) from discontinued operations | (1.02) | (0.82) | (0.07) |
Net income (loss) | (1.64) | (2.36) | 0.53 |
Diluted net income (loss) per common share: | |||
Income (loss) from continuing operations | (0.62) | (1.54) | 0.59 |
Income (loss) from discontinued operations | (1.02) | (0.82) | (0.07) |
Net income (loss) | $ (1.64) | $ (2.36) | $ 0.52 |
EARNINGS (LOSS) PER SHARE (Narr
EARNINGS (LOSS) PER SHARE (Narrative) (Details) - shares | 12 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2019 | |
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 |
Restricted Stock Units (RSUs) [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive securities | 300,000 | 700,000 | 1,900,000 |
Employee Stock Option [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive securities | 700,000 | 900,000 | 1,900,000 |
COMPREHENSIVE INCOME (LOSS) (Sc
COMPREHENSIVE INCOME (LOSS) (Schedule of Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2019 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balances | $ (1,375) | $ (661) | $ (199) |
Other comprehensive income (loss), net of tax | 390 | (714) | (462) |
Balances | (985) | (1,375) | (661) |
Cumulative Foreign Currency Translation [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balances | (1,375) | (661) | (628) |
Other comprehensive income (loss), net of tax | 390 | (714) | (33) |
Balances | $ (985) | $ (1,375) | (661) |
Unrealized Gains/Losses on Marketable Securities [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balances | 429 | ||
Other comprehensive income (loss), net of tax | $ (429) |
EMPLOYEE RETIREMENT PLAN (Detai
EMPLOYEE RETIREMENT PLAN (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2019 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Expense recorded related to matching contributions | $ 1.9 | $ 2.1 | $ 2.1 |
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, 2021 | Feb. 29, 2020 |
Other Financial Information Schedule Of Other Current Liabilities Details [Abstract] | ||
Operating lease liabilities | $ 4,926 | $ 4,662 |
Litigation reserve | 2,200 | 1,500 |
Customer deposits | 2,472 | 1,377 |
Warranty reserves | 1,257 | 987 |
Other | 6,525 | 5,973 |
Total other current liabilities | $ 17,380 | $ 14,499 |
OTHER FINANCIAL INFORMATION (_2
OTHER FINANCIAL INFORMATION (Schedule of Other Non-Current Liabilities) (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Feb. 29, 2020 |
Other Financial Information [Abstract] | ||
Deferred revenue | $ 19,893 | $ 24,644 |
Deferred compensation plan liability | 6,992 | 5,919 |
Deferred tax liability | 178 | 122 |
Other | 3,424 | 1,551 |
Total other non-current liabilities | $ 30,487 | $ 32,236 |
OTHER FINANCIAL INFORMATION (_3
OTHER FINANCIAL INFORMATION (Schedule of Interest Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2019 | |
Condensed Income Statements, Captions [Line Items] | |||
Amortization of discount and issuance costs | $ 10,180 | $ 13,764 | $ 11,492 |
Other interest expense | 1,140 | 933 | 143 |
Total interest expense | 15,487 | 20,096 | 16,726 |
2020 Convertible Notes [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Stated interest | 93 | 1,464 | 2,308 |
Amortization of discount and issuance costs | 289 | 4,336 | 6,484 |
Interest expense on convertible notes | 382 | 5,800 | 8,792 |
2025 Convertible Notes [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Stated interest | 4,587 | 4,613 | 2,811 |
Amortization of discount and issuance costs | 9,378 | 8,750 | 4,980 |
Interest expense on convertible notes | $ 13,965 | $ 13,363 | $ 7,791 |
OTHER FINANCIAL INFORMATION (_4
OTHER FINANCIAL INFORMATION (Schedule of Interest Expense) (Parenthetical) (Details) | Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2019 |
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, 2021 | Feb. 29, 2020 | Feb. 28, 2019 | |
Cash payments for interest and income taxes: | |||
Interest expense paid | $ 5,320 | $ 6,762 | $ 5,057 |
Income tax paid, net of refunds | 643 | 220 | 964 |
Non-cash investing and financing activities: | |||
Accrued liability for capital expenditures | $ (604) | $ (283) | 881 |
Conversion of receivables to equity investment | $ 300 |
OTHER FINANCIAL INFORMATION (_6
OTHER FINANCIAL INFORMATION (Schedule of Valuation and Qualifying Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2019 | |
Allowance for Doubtful Accounts [Member] | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of year | $ 2,264 | $ 1,203 | $ 858 |
Charged (credited) to costs and expenses | 2,163 | 2,214 | 922 |
Deductions | (769) | (1,153) | (577) |
Balance at end of year | 3,658 | 2,264 | 1,203 |
Warranty Reserves [Member] | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of year | 987 | 1,398 | 5,734 |
Charged (credited) to costs and expenses | 2,729 | 729 | 1,126 |
Deductions | (2,459) | (1,140) | (5,462) |
Balance at end of year | 1,257 | 987 | 1,398 |
Deferred Tax Assets Valuation Allowance [Member] | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of year | 45,560 | 10,929 | 16,844 |
Charged (credited) to costs and expenses | 11,288 | 34,631 | 799 |
Deductions | (6,714) | ||
Balance at end of year | $ 56,848 | $ 45,560 | $ 10,929 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) | Nov. 26, 2019USD ($) | Sep. 30, 2019USD ($)PatentUnit | Dec. 06, 2018USD ($) | Jun. 09, 2017USD ($) | Apr. 24, 2017USD ($) | Apr. 05, 2017USD ($) | Feb. 24, 2016USD ($) | Feb. 29, 2016USD ($) | Feb. 28, 2021USD ($)Legalaction | Feb. 28, 2019USD ($) | Feb. 28, 2018USD ($) | Nov. 30, 2018USD ($) |
Gain Loss On Contingencies [Line Items] | ||||||||||||
Damages assessed and awarded | $ 4,600,000 | $ 1,200,000 | $ 8,900,000 | $ 2,975,000 | $ 4,600,000 | |||||||
Damages reserve | $ 2,900,000 | |||||||||||
Legal provision previously reserved | $ 19,100,000 | |||||||||||
Legal proceedings settlement agreement, court | U.S. District Court for the Middle District of Florida | |||||||||||
Number of patents | Patent | 4 | |||||||||||
Number of patents infringed | Patent | 2 | |||||||||||
Pre-judgment interest amount | $ 800,000 | $ 800,000 | ||||||||||
Estimated Litigation Liability | $ 2,200,000 | |||||||||||
Loss related to settlement | $ (7,543,000) | |||||||||||
Number of legal actions filed | Legalaction | 4 | |||||||||||
Number of legal proceedings pending | Legalaction | 4 | |||||||||||
Maximum [Member] | ||||||||||||
Gain Loss On Contingencies [Line Items] | ||||||||||||
Loss related to settlement | $ 3,200,000 | |||||||||||
First Patent (the 727 patent) [Member] | ||||||||||||
Gain Loss On Contingencies [Line Items] | ||||||||||||
Damages assessed and awarded | $ 1 | |||||||||||
Number of units infringed | Unit | 1 | |||||||||||
Second Patent (the 278 patent) [Member] | ||||||||||||
Gain Loss On Contingencies [Line Items] | ||||||||||||
Damages assessed and awarded | $ 4,600,000 | |||||||||||
Damages assessed and awarded, per unit | 5 | |||||||||||
EVE Holdings Limited [Member] | ||||||||||||
Gain Loss On Contingencies [Line Items] | ||||||||||||
Amount of damages sought by company in litigation matter | $ 46,600,000 | |||||||||||
Proceeds from litigation settlement | $ 18,300,000 | $ 28,300,000 | ||||||||||
General and Administrative Expenses [Member] | EVE Holdings Limited [Member] | ||||||||||||
Gain Loss On Contingencies [Line Items] | ||||||||||||
Accrued liability | $ 4,000,000 | |||||||||||
Tracker Connect Pty Ltd [Member] | EVE Holdings Limited [Member] | ||||||||||||
Gain Loss On Contingencies [Line Items] | ||||||||||||
Litigation settlement, amount awarded to other party | $ 6,200,000 |
SEGMENT AND GEOGRAPHIC DATA (Na
SEGMENT AND GEOGRAPHIC DATA (Narrative) (Details) | 12 Months Ended |
Feb. 28, 2021Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
SEGMENT AND GEOGRAPHIC DATA (Sc
SEGMENT AND GEOGRAPHIC DATA (Schedule of Business Segment Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2019 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 308,587 | $ 321,773 | $ 311,538 |
Gross profit | $ 122,405 | $ 125,493 | $ 125,878 |
Gross margin | 39.70% | 39.00% | 40.40% |
Adjusted EBITDA | $ 32,106 | $ 38,909 | $ 44,563 |
Operating Segments [Member] | Software & Subscription Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 129,933 | 123,460 | 74,842 |
Gross profit | $ 65,411 | $ 56,283 | $ 36,412 |
Gross margin | 50.30% | 45.60% | 48.70% |
Adjusted EBITDA | $ 32,226 | $ 21,674 | $ 12,429 |
Operating Segments [Member] | Telematics Products [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 178,654 | 198,313 | 236,696 |
Gross profit | $ 56,994 | $ 69,210 | $ 89,466 |
Gross margin | 31.90% | 34.90% | 37.80% |
Adjusted EBITDA | $ 4,854 | $ 21,763 | $ 37,833 |
Corporate Expenses [Member] | |||
Segment Reporting Information [Line Items] | |||
Adjusted EBITDA | $ (4,974) | $ (4,528) | $ (5,699) |
SEGMENT AND GEOGRAPHIC DATA (Su
SEGMENT AND GEOGRAPHIC DATA (Summary of Adjusted EBITDA) (Details) - USD ($) $ in Thousands | 12 Months Ended | 33 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2021 | |
Segment Information Summary Of Adjustments Results Of Ebitda Details [Abstract] | ||||
Net income (loss) from continuing operations | $ (21,157) | $ (51,552) | $ 20,672 | |
Investment income | (2,119) | (4,497) | (5,258) | |
Interest expense | 15,487 | 20,096 | 16,726 | |
Income tax provision (benefits) | 561 | 20,454 | (612) | |
Depreciation and amortization | 22,002 | 23,312 | 9,786 | |
Stock-based compensation | 10,357 | 10,667 | 9,539 | |
Equity in net loss of affiliate and related impairment loss | 530 | 6,787 | ||
Loss on extinguishment of debt | 2,408 | 2,033 | ||
Acquisition and integration related expenses | 2,210 | 935 | ||
Non-recurring legal expenses, net of reversal of litigation provision | 2,262 | 6,213 | (11,020) | |
Loss related to settlement | (7,543) | |||
Restructuring | 2,534 | 2,465 | 2,299 | $ 17,200 |
Impairment losses | 825 | 5,754 | ||
Other | 1,354 | 849 | 219 | |
Adjusted EBITDA | $ 32,106 | $ 38,909 | $ 44,563 |
SEGMENT AND GEOGRAPHIC DATA (_2
SEGMENT AND GEOGRAPHIC DATA (Summary of Revenues by Geographic Area) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2019 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 308,587 | $ 321,773 | $ 311,538 |
United States [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 200,665 | 222,079 | 216,191 |
Europe, Middle East and Africa [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 58,470 | 55,185 | 49,496 |
South America [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 27,110 | 21,235 | 15,134 |
Asia and Pacific Rim [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 12,281 | 9,166 | 13,958 |
All other [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 10,061 | $ 14,108 | $ 16,759 |