CalAmp Reports Second Quarter Fiscal Year 2023 Financial

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Software and Subscription Services income will increase 13% sequentially to $44.5 million and 61% of complete income

Total consolidated income additionally will increase 13% sequentially to $72.8 million as backlog stays stable

IRVINE, Calif., Sept. 22, 2022 (GLOBE NEWSWIRE) — CalAmp (Nasdaq: CAMP), a related intelligence firm that helps organizations monitor, observe and shield their very important property, right now reported monetary outcomes for its second quarter of fiscal 12 months 2023 ended August 31, 2022.

“Consolidated revenue exceeded our expectations for mid to high single digit sequential growth, driven largely by Software and Subscription Services revenue that was 61% of total revenue,” stated Jeff Gardner, CalAmp’s president and CEO. “The revenue growth in both Software and Subscription Services and Telematics Products was attributable to improvements in the supply chain which enabled us to accelerate customer conversions to recurring subscription contracts and fulfill more orders for our customers. Of the existing customers eligible to convert to recurring contracts, we exceeded a cumulative total of 50% in the quarter underscoring the progress we continue to make on our SaaS transformation.”

Second Quarter Fiscal Year 2023 Financial Overview

  • Total income elevated 13% to $72.8 million, in comparison with $64.7 million within the prior quarter.
  • Software and Subscription Services (S&SS) income was a report $44.5 million, or 61% of complete income, in comparison with $39.6 million within the prior quarter.
  • Telematics Products income elevated 13% sequentially to $28.3 million as a consequence of a rise in machine shipments.
  • Gross margin within the quarter elevated to 39.8%, in comparison with 39.6% final quarter.
  • GAAP internet loss from persevering with operations was $7.5 million, or a lack of $0.21 per share.
  • Adjusted EBITDA was $4.8 million, or 7% of income, in comparison with adjusted EBITDA of $1.9 million, or 3% of income within the prior quarter.
  • Total S&SS subscribers had been 1.3 million at quarter finish, a 9% sequential enhance and a 32% enhance year-over-year.
  • Ended the quarter with $47.7 million in money and money equivalents, down from $59.0 million within the prior quarter.

Other Business and Recent Highlights

  • Converted high tier prospects Localiza and Trimble to a subscription mannequin.
  • Expanded its relationship with BMW in EMEA, including the MINI model.
  • Renewed contract with the City of Dallas to trace and monitor extra automobiles.
  • Launched Transportation & Logistics options in EMEA, providing international use instances that embrace Supply Chain visibility and fleet administration options.

Summary Financial Information From Continuing Operations:
(In 1000’s besides per share quantities)

    Three Months Ended     Six Months Ended  
    August 31,     August 31,  
Description   2022     2021     2022     2021  
Revenues:                                
Software & Subscription Services (S&SS)   $ 44,511     $ 41,434     $ 84,068     $ 76,477  
Telematics Products     28,317       37,577       53,486       82,208  
    $ 72,828     $ 79,011     $ 137,554     $ 158,685  
                                 
                                 
Gross margin     40 %     42 %     40 %     41 %
                                 
Net loss   $ (7,494 )   $ (5,425 )   $ (19,667 )   $ (11,425 )
Net loss per diluted share   $ (0.21 )   $ (0.15 )   $ (0.55 )   $ (0.33 )
Non-GAAP measures:                                
Adjusted foundation internet earnings (loss)   $ (752 )   $ 2,903     $ (4,157 )   $ 5,849  
Adjusted foundation internet earnings (loss) per diluted share   $ (0.02 )   $ 0.08     $ (0.12 )   $ 0.16  
Adjusted EBITDA   $ 4,766     $ 8,301     $ 6,622     $ 16,686  
Adjusted EBITDA margin     7 %     11 %     5 %     11 %
    August 31,     February 28,  
Description   2022     2022  
Cash and money equivalents   $ 47,721     $ 79,221  
Working capital     78,524       90,928  
Deferred income     35,412       39,670  
Total debt (carrying worth)     228,720       192,288  
                 
    August 31,  
S&SS Supplemental Information:   2022     2021  
Remaining efficiency obligations   $ 210,340     $ 136,286  
Subscribers     1,307       989  

Third Quarter Fiscal Year 2023 Business Outlook

The Company is sustaining its coverage of not offering quarterly steerage as a consequence of visibility into product shipments remaining tough to precisely assess. However, the Company does count on to realize low to mid single digit proportion level sequential income progress within the third quarter.

Conference Call and Webcast

CalAmp is internet hosting a convention name for analysts and traders to debate its second quarter fiscal 12 months 2023 outcomes at 2:00 p.m. Pacific Time right now. Participants can pay attention in by way of webcast by visiting the Investor Relations part of our web site at www.calamp.com. Please go to the web site a minimum of quarter-hour early to register, obtain and set up any crucial audio software program. A replay of the webcast will likely be obtainable for 90 days after the decision. The convention name may also be accessed by dialing 844-200-6205 (+1-929-526-1599 for worldwide callers) and utilizing the Conference ID #350499. Following the decision, an audio replay may even be obtainable by calling 866-813-9403 or +44-204-525-0658 and coming into the Conference ID #367233. The audio replay will likely be obtainable by way of September 29, 2022.

About CalAmp

CalAmp (Nasdaq: CAMP) offers versatile options to assist organizations worldwide monitor, observe and shield their very important property. Our distinctive mixture of software program, gadgets, and platform permits over 14,000 business and authorities organizations worldwide to extend effectivity, security and transparency whereas accommodating the distinctive methods they do business. With over 10 million energetic edge gadgets and 275+ issued or pending patents, CalAmp is the telematics chief organizations flip to for innovation and dependability. For extra info, go to calamp.com, or LinkedIn, Twitter, YouTube or CalAmp Blog.

Forward-Looking Statements

This announcement incorporates forward-looking statements (together with throughout the which means of Section 21E of the U.S. Securities Exchange Act of 1934, as amended, and Section 27A of the U.S. Securities Act of 1933, as amended) regarding CalAmp. These statements embrace, however will not be restricted to, statements that deal with our anticipated future business and monetary efficiency and statements about (i) our plans, aims and intentions with respect to future operations, providers and merchandise, (ii) our aggressive place and alternatives, and (iii) different statements recognized by phrases equivalent to equivalent to “may”, “will”, “expect”, “intend”, “plan”, “potential”, “believe”, “seek”, “could”, “estimate”, “judgment”, “targeting”, “should”, “anticipate”, “predict”, “project”, “aim”, “goal”, and related phrases, phrases or expressions. These forward-looking statements are primarily based on administration’s present expectations and beliefs, in addition to assumptions made by, and data at the moment obtainable to, administration, present market traits and market situations, and contain dangers and uncertainties, a lot of that are exterior of our management, and which can trigger precise outcomes to vary materially from these contained in forward-looking statements. Accordingly, you shouldn’t place undue reliance on such statements. Particular uncertainties that might materially have an effect on future outcomes embrace any dangers related to international financial situations and issues; the consequences of world outbreaks of pandemics or contagious illnesses or worry of such outbreaks, such because the latest coronavirus (COVID-19) pandemic; international part shortages as a consequence of provide chain constraints brought on by the COVID-19 pandemic; disruptions in gross sales, operations, relationships with prospects, suppliers, workers; our capability to efficiently and well timed accomplish our transformation to a SaaS options supplier; our transition out of the automotive car financing business; aggressive pressures; pricing declines; demand for our telematics merchandise; charges of progress in our goal markets; extended disruptions of our contract producers’ amenities or different important operations; drive majeure or force-majeure-like occasions at our contract producers’ amenities together with part shortages; the continuing diversification of our international provide chain; our dependence on outsourced service suppliers for sure key business providers and their capability to execute to our necessities; our capability to enhance gross margin; cost-containment measures; legislative, commerce, tariff, and regulatory actions; integration, sudden fees or bills in reference to acquisitions; the affect of authorized proceedings and compliance dangers; the affect on our business and repute from info know-how system failures, community disruptions, cyber-attacks, or losses or unauthorized entry to, or launch of, confidential info; the power of the Company to adjust to legal guidelines and rules relating to knowledge safety; our capability to guard our mental property and the unpredictability of any related litigation bills; any bills or reputational harm related to resolving buyer product and guarantee and indemnification claims; our capability to promote to new forms of prospects and to maintain tempo with technological advances; market acceptance of the tip merchandise into which our merchandise are designed; and different occasions and traits on a nationwide, regional and international scale, together with these of a political, financial, business, aggressive, and regulatory nature. More info on these dangers and different potential components that might have an effect on our monetary outcomes is included in our filings with the U.S. Securities and Exchange Commission (“SEC”), together with within the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our most not too long ago filed periodic studies on Form 10-Ok and Form 10-Q and subsequent filings, which you’ll receive without cost on the SEC’s web site at http://www.sec.gov. We undertake no intent or obligation to publicly replace or revise any of those forward-looking statements, whether or not on account of new info, future occasions or in any other case, which converse as of their respective dates besides as required by regulation.

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Non-GAAP Financial Measures

“GAAP” refers to monetary info introduced in accordance with U.S. Generally Accepted Accounting Principles. This announcement consists of non-GAAP monetary measures, as outlined in Regulation G promulgated by the SEC. We consider that our presentation of non-GAAP monetary measures offers helpful supplementary info to traders. These non-GAAP monetary measures are supplied along with, and never as an alternative choice to measures of monetary efficiency ready in accordance with GAAP.

In this announcement, we report the non-GAAP monetary measures of Adjusted foundation internet earnings (loss), Adjusted foundation internet earnings (loss) per diluted share, Adjusted EBITDA (earnings earlier than funding earnings, curiosity expense, taxes, depreciation, amortization, stock-based compensation, acquisition and integration bills, non-cash prices and bills arising from buy accounting changes, litigation and authorized bills, impairment losses and sure different changes as detailed within the accompanying non-GAAP reconciliation), and Adjusted EBITDA margin. Adjusted foundation internet earnings (loss) excludes the affect of intangible asset amortization expense, stock-based compensation, non-cash curiosity expense, acquisition and integration bills, non-cash prices and bills arising from buy accounting changes, litigation and authorized bills, earnings tax provision changes, impairment losses and sure different changes as proven within the non-GAAP reconciliation supplied within the desk on the finish of this announcement. We use these non-GAAP monetary measures to supply traders with extra details about our monetary efficiency and future prospects of our core business actions. Internally, these non-GAAP measures are important measures utilized by administration for functions of evaluating our core working efficiency, establishing inner budgets, calculating return on funding for growth packages and progress initiatives, evaluating efficiency with inner forecasts and focused business fashions, strategic planning, evaluating and valuing potential acquisition candidates and the way their operations evaluate to our operations, and benchmarking efficiency externally towards our opponents. We consider this non-GAAP monetary info offers extra perception into our ongoing efficiency and have subsequently chosen to supply this info to traders to assist them consider our outcomes of ongoing operations and allow extra period-to-period comparisons. The presentation of those and different related gadgets in our non-GAAP monetary outcomes shouldn’t be interpreted as implying that these things are non-recurring, rare, or uncommon.

CalAmp, LoJack, TRACKER, Here Comes The Bus, Bus Guardian, iOn Vision, CrashBoxx and related logos are among the many emblems of CalAmp and/or its associates within the United States, sure different nations and/or the EU. Spireon acquired the LoJack® U.S. Stolen Vehicle Recovery (SVR) business from CalAmp and holds an unique license to the LoJack mark within the United States and Canada. Any different emblems or commerce names talked about are the property of their respective house owners.

CALAMP CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in 1000’s, besides per share quantities)
(Unaudited)

  Three Months Ended     Six Months Ended  
  August 31,     August 31,  
    2022       2021       2022       2021  
                                       
Revenues $   72,828     $   79,011     $   137,554     $   158,685  
Cost of revenues     43,816         45,641         82,895         92,868  
Gross revenue     29,012         33,370         54,659         65,817  
Operating bills:                                      
Research and growth     6,757         7,729         13,757         14,669  
Selling and advertising     12,734         12,047         24,212         24,509  
General and administrative     13,530         13,198         28,692         26,220  
Intangible asset amortization     1,330         1,394         2,672         2,647  
      34,351         34,368         69,333         68,045  
Operating loss     (5,339 )       (998 )       (14,674 )       (2,228 )
Non-operating earnings (expense):                                      
Investment earnings (loss)     (58 )       420         (172 )       1,068  
Interest expense     (1,464 )       (3,804 )       (2,997 )       (7,653 )
Other expense, internet     (507 )       (710 )       (1,449 )       (1,986 )
      (2,029 )       (4,094 )       (4,618 )       (8,571 )
Loss from persevering with operations earlier than earnings taxes     (7,368 )       (5,092 )       (19,292 )       (10,799 )
Income tax provision from persevering with operations     (126 )       (333 )       (375 )       (626 )
Net loss from persevering with operations     (7,494 )       (5,425 )       (19,667 )       (11,425 )
Net earnings from discontinued operations, internet of tax                             4,052  
Net loss $   (7,494 )   $   (5,425 )   $   (19,667 )   $   (7,373 )
Loss per share – persevering with operations:                                      
Basic $   (0.21 )   $   (0.15 )   $   (0.55 )   $   (0.33 )
Diluted $   (0.21 )   $   (0.15 )   $   (0.55 )   $   (0.33 )
Earnings per share – discontinued operations:                                      
Basic $       $       $       $   0.12  
Diluted $       $       $       $   0.12  
Shares utilized in computing earnings (loss) per share:                                      
Basic     36,006         35,152         35,864         34,998  
Diluted     36,006         35,152         35,864         34,998  
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CALAMP CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in 1000’s)
(Unaudited)

        August 31,     February 28,  
        2022     2022  
Assets                    
                         
Current property:                        
Cash and money equivalents       $   47,721     $   79,221  
Accounts receivable, internet           74,802         61,544  
Inventories           22,145         18,269  
Prepaid bills and different present property           24,781         22,348  
Total present property           169,449         181,382  
                         
Property and tools, internet           34,621         37,674  
Operating lease right-of-use property           10,367         12,327  
Deferred earnings tax property           3,633         4,165  
Goodwill           93,377         94,436  
Other intangible property, internet           28,769         31,965  
Other property           30,822         29,632  
Total property       $   371,038     $   391,581  
                         
Liabilities and Stockholders’ Equity                        
                         
Current liabilities:                        
Current portion of long-term debt       $   1,828     $   2,585  
Accounts payable           39,863         31,815  
Accrued payroll and worker advantages           10,181         10,929  
Deferred income           23,378         26,174  
Other present liabilities           15,675         18,951  
Total present liabilities           90,925         90,454  
                         
Long-term debt, internet of present portion           226,892         189,703  
Operating lease liabilities           10,717         13,382  
Other non-current liabilities           20,684         22,640  
Total liabilities           349,218         316,179  
Stockholders’ fairness:                        
Common inventory           371         361  
Additional paid-in capital           180,463         242,386  
Accumulated deficit           (155,993 )       (165,965 )
Accumulated different complete loss           (3,021 )       (1,380 )
Total stockholders’ fairness           21,820         75,402  
Total liabilities and stockholders’ fairness       $   371,038     $   391,581  
                         

CALAMP CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in 1000’s)
(Unaudited)

    Six Months Ended  
    August 31,  
      2022       2021  
CASH FLOWS FROM OPERATING ACTIVITIES:                  
  Net loss $   (19,667 )   $   (7,373 )
  Less: Net earnings from discontinued operations, internet of tax             4,052  
  Net loss from persevering with operations     (19,667 )       (11,425 )
                     
  Depreciation expense     8,215         8,472  
  Intangible asset amortization     2,672         2,647  
  Stock-based compensation     6,156         5,409  
  Amortization of debt issuance prices and low cost     594         5,191  
  Noncash working lease value     1,756         1,691  
  Revenue assigned to components     (1,524 )       (2,601 )
  Deferred tax property, internet     129         250  
  Other     (67 )       200  
  Changes in working property and liabilities of constant operations     (23,939 )       1,012  
  Net money supplied by (utilized in) working actions – persevering with operations     (25,675 )       10,846  
  Net money utilized in working actions – discontinued operations             (395 )
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES     (25,675 )       10,451  
                     
CASH FLOWS FROM INVESTING ACTIVITIES:                  
  Capital expenditures     (4,891 )       (6,569 )
  Net money utilized in investing actions – persevering with operations     (4,891 )       (6,569 )
  Net money supplied by investing actions – discontinued operations             6,616  
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES     (4,891 )       47  
                     
CASH FLOWS FROM FINANCING ACTIVITIES:                  
  Taxes paid associated to internet share settlement of vested fairness awards     (1,568 )       (4,017 )
  Proceeds from train of inventory choices and contributions to worker inventory buy plan     502         900  
NET CASH USED IN FINANCING ACTIVITIES     (1,066 )       (3,117 )
                     
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS     132         (954 )
Net change in money and money equivalents     (31,500 )       6,427  
Cash and money equivalents at starting of interval     79,221         94,624  
Cash and money equivalents at finish of interval $   47,721     $   101,051  
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CALAMP CORP.
RECONCILIATION OF NON-GAAP MEASURES TO GAAP
(Unaudited)

GAAP refers to monetary info introduced in accordance with U.S. Generally Accepted Accounting Principles. This announcement consists of non-GAAP monetary measures, as outlined in Regulation G promulgated by the Securities and Exchange Commission.  We consider that our presentation of non-GAAP monetary measures offers helpful supplementary info to traders.  The presentation of non-GAAP monetary measures isn’t meant to be thought of in isolation from or as an alternative choice to outcomes ready in accordance with GAAP.

In this announcement, we report the non-GAAP monetary measures of Adjusted foundation internet earnings (loss), Adjusted foundation internet earnings (loss) per diluted share, Adjusted EBITDA (earnings earlier than funding earnings, curiosity expense, taxes, depreciation, amortization, stock-based compensation and different changes as recognized beneath), and Adjusted EBITDA margin. We use these non-GAAP monetary measures to supply traders with an general understanding of the monetary efficiency and future prospects of our core business actions. Specifically, we consider that the usage of these non-GAAP measures facilitates the comparability of outcomes of core business operations between present and previous intervals.  

The reconciliation of GAAP foundation internet loss to Adjusted foundation (non-GAAP) internet earnings (loss) is as follows (in 1000’s besides per share quantities):

  Three Months Ended     Six Months Ended  
  August 31,     August 31,  
  2022     2021     2022     2021  
                                       
GAAP foundation internet loss $   (7,494 )   $   (5,425 )   $   (19,667 )   $   (7,373 )
                                       
Net earnings from discontinued operations, internet of tax                             (4,052 )
Intangible property amortization     1,330         1,394         2,672         2,647  
Stock-based compensation     3,196         2,937         6,156         5,409  
Non-cash curiosity expense     290         2,585         594         5,191  
GAAP foundation earnings tax provision     126         333         375         626  
Litigation and non-recurring authorized bills     1,417         471         4,548         1,119  
Costs incurred in transition of LoJack North America business to acquiror (b)     233         482         985         1,715  
Other     310         321         520         962  
Adjusted foundation earnings (loss) earlier than earnings taxes     (592 )       3,098         (3,817 )       6,244  
Income tax provision (non-GAAP foundation) (a)     (160 )       (195 )       (340 )       (395 )
Adjusted foundation internet earnings (loss) $   (752 )   $   2,903     $   (4,157 )   $   5,849  
                                       
Adjusted foundation internet earnings (loss) per diluted share $   (0.02 )   $   0.08     $   (0.12 )   $   0.16  
                                       
Weighted common frequent shares excellent on a diluted foundation     36,006         36,122         35,864         36,083  

The reconciliation of GAAP-basis internet loss to Adjusted EBITDA and the calculation of Adjusted EBITDA margin are as follows ({dollars} in 1000’s):

  Three Months Ended     Six Months Ended  
  August 31,     August 31,  
  2022     2021     2022     2021  
                                       
GAAP foundation internet loss $   (7,494 )   $   (5,425 )   $   (19,667 )   $   (7,373 )
                                       
Net earnings from discontinued operations, internet of tax                             (4,052 )
Investment (earnings) loss     58         (420 )       172         (1,068 )
Interest expense     1,464         3,804         2,997         7,653  
Income tax provision     126         333         375         626  
Depreciation and amortization     5,389         5,636         10,887         11,119  
Stock-based compensation     3,196         2,937         6,156         5,409  
Litigation and non-recurring authorized bills     1,417         471         4,548         1,119  
Costs incurred in transition of LoJack North America business to acquiror (b)     233         482         985         1,715  
Other     377         483         169         1,538  
Adjusted EBITDA $   4,766     $   8,301     $   6,622     $   16,686  
                                       
Revenues $   72,828     $   79,011     $   137,554     $   158,685  
                                       
Adjusted EBITDA margin     7 %       11 %       5 %       11 %
(a) The non-GAAP earnings tax provision represents money taxes paid or payable for the interval after giving impact to the utilization of internet working losses and tax credit score carryforwards.
(b) Costs incurred in transition of business to acquiror are attributable to the wind-down and switch of the LoJack North America business to Spireon.





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