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Actionable news in CAMP: CalAmp Corp.,

Annual report [Section 13 and 15(d), not S-K Item 405]

Delaware 95-3647070
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)

15635 Alton Parkway, Suite 250

Irvine, California

(Address of principal executive offices) (Zip Code)

Increasing productivity, improving communications and optimizing performance of fleets and mobile workers. Applications include tracking, dispatch and route optimization, fleet diagnostics and maintenance, work flow improvement, driver behavior monitoring and training and work-alone safety initiatives.

Securing, tracking and managing financed vehicles and assets. Applications include asset tracking for sub-prime vehicle finance lenders and Buy Here Pay Here dealers, stolen vehicle recovery, dealer lot planning and management, rental equipment tracking and remote car start.

Enabling comprehensive tracking and management services for cargo and containers. Applications include local and long haul trailer tracking, management and logistics, container tracking and status, refrigerated container monitoring and control, high value asset and cargo monitoring and delivery assurance combined with local and intermodal pallet/cargo logistics and tracking.

Providing monitoring, control and automation of remote industrial equipment and critical infrastructure. Applications include freshwater and wastewater management, irrigation system control, traffic monitoring systems, oil and gas flow, transportation and distribution, automated reading of commercial utility meters, and monitor and control of substations and other critical energy grid infrastructure.

Facilitating mission critical communication and coordination among public safety and emergency services personnel and systems. Applications include real-time, two-way data access for emergency and public safety personnel and systems, vehicle area networking and peripheral equipment communications, remote and mobile video surveillance, and computer-aided dispatch and situation monitoring.

Facilitating comprehensive monitoring, tracking and telematics for heavy equipment and commercial trucking. Applications include heavy equipment maintenance, usage optimization and tracking, rental equipment tracking and usage, yellow iron and attachment management, indoor/outdoor forklift and loader location, crash detection and telematics, and transportation regulatory compliance, such as hours of service and onboard electronic recording requirements.

Enabling usage-based insurance, enhanced claims processing and the delivery of comprehensive valued-added services for the vehicle insurance industry. Applications include driver behavior, scoring and feedback, crash discrimination, automated first notice of loss, accident damage assessment and estimation, distracted driving prevention, teen driver tracking and management, roadside assistance, and predictive maintenance.

Rapidly enabling the delivery of comprehensive managed services for machine and equipment OEMs. Applications include service, maintenance, tracking, monitoring and control for generators, turbines, compressors, small engines (e.g., outboard motors, ATVs, electric carts) and power tools.

Providing reliable, easy-to-use wireless communications solutions for fixed, mobile and portable enterprise data applications. Examples include connected transport and mobile data access, digital signage, kiosk/high-value vending and video surveillance.

the timing and amount, or cancellation or rescheduling, of orders for our products or services;

our ability to develop, introduce, ship and support new products and product enhancements and manage product transitions;

announcements of new product and service introductions and reductions in the price of products and services offered by our competitors;

our ability to achieve cost reductions;

our ability to obtain sufficient supplies of sole or limited source components for our products;

our ability to achieve and maintain production volumes and quality levels for our products;

our ability to maintain the volume of products sold and the mix of distribution channels through which they are sold;

the loss of any one of our major customers or a significant reduction in orders from those customers;

increased competition, particularly from larger, better capitalized competitors;

fluctuations in demand for our products and services; and

telecommunications and wireless market conditions specifically and economic conditions generally.

use a substantial portion of our available cash;

require a significant devotion of managements time and resources in the pursuit or consummation of any acquisition;

incur substantial debt, which may not be available to us on favorable terms and may adversely affect our liquidity;

issue equity or equity-based securities that would dilute existing stockholders percentage ownership;

assume contingent liabilities; and

take substantial charges in connection with acquired assets.

actual or anticipated fluctuations in revenues or operating results;

failure to meet securities analysts or investors expectations of performance;

changes in key management personnel;

announcements of technological innovations or new products by us or our competitors;

developments in or disputes regarding patents and proprietary rights;

proposed and completed acquisitions by us or our competitors;

the mix of products and services sold;

the timing, placement and fulfillment of significant orders;

product and service pricing and discounts;

acts of war or terrorism; and

general economic conditions.

the inability to combine the businesses of LoJack with CalAmps pre-existing operations in a manner that permits us to achieve the benefits we anticipate from the acquisition, including cost savings and other synergies;
distracting management from day-to-day operations;
potential incompatibility of corporate cultures;
lost sales if customers of either LoJack or CalAmp decide not to do business with us;
the failure to retain key employees of either LoJack or us;
potential unknown liabilities and unforeseen increased expenses, delays or regulatory issues associated with the acquisition; and
difficulties in applying our operating and administrative control policies and procedures to LoJack.
Location Footage Use
Irvine, California 13,000 Corporate headquarters and Wireless DataCom offices
Oxnard, California 98,000 Satellite offices and manufacturing facility
Carlsbad, California 26,000 Wireless DataCom offices
Torrance, California 5,000 Wireless DataCom offices
Herndon, Virginia 10,000 Wireless DataCom offices
Waseca, Minnesota 8,000 Wireless DataCom offices
Eden Prairie, Minnesota 7,000 Wireless DataCom offices
Auckland, New Zealand 4,000 Wireless DataCom offices
Fiscal Year Ended February 28, 2016
1st Quarter $ 16.04 $ 21.82
2nd Quarter $ 14.01 $ 20.27
3rd Quarter $ 15.12 $ 20.15
4th Quarter $ 15.56 $ 21.35
Fiscal Year Ended February 28, 2015
1st Quarter $ 14.74 $ 34.85
2nd Quarter $ 16.57 $ 22.36
3rd Quarter $ 15.51 $ 20.84
4th Quarter $ 15.32 $ 20.00
Year Ended February 28,
2016 2015 2014 2013 2012
(In thousands except per share amounts)
Revenues $ 280,719 $ 250,606 $ 235,903 $ 180,579 $ 138,728
Cost of revenues 177,760 163,202 155,972 123,686 96,709
Gross profit 102,959 87,404 79,931 56,893 42,019
Operating expenses:
Research and development 19,803 19,854 21,052 14,291 11,328
Selling 23,380 20,442 19,837 12,725 11,060
General and administrative 25,065 15,578 14,416 12,154 10,984
Intangible asset amortization 6,626 6,590 6,283 1,743 1,277
Total operating expenses 74,874 62,464 61,588 40,913 34,649
Operating income 28,085 24,940 18,343 15,980 7,370
Non-operating expense, net (5,744 ) (140 ) (432 ) (532 ) (2,091 )
Income before income taxes and equity in net loss of affiliate 22,341 24,800 17,911 15,448 5,279
Income tax benefit (provision) (4,572 ) (8,292 ) (6,108 ) 29,178 (61 )
Income before equity in net loss of affiliate 17,769 16,508 11,803 44,626 5,218
Equity in net loss of affiliate (829 ) - - - -
Net income $ 16,940 $ 16,508 $ 11,803 $ 44,626 $ 5,218
Earnings per share:
Basic $ 0.46 $ 0.46 $ 0.34 $ 1.54 $ 0.19
Diluted $ 0.46 $ 0.45 $ 0.33 $ 1.49 $ 0.18
February 28,
2016 2015 2014 2013 2012
(In thousands except ratio)
Current assets $ 298,767 $ 116,054 $ 84,622 $ 100,369 $ 34,364
Current liabilities $ 49,565 $ 47,005 $ 42,118 $ 28,949 $ 23,601
Working capital $ 249,202 $ 69,049 $ 42,504 $ 71,420 $ 10,763
Current ratio 6.0 2.5 2.0 3.5 1.5
Total assets $ 384,363 $ 202,617 $ 179,265 $ 150,771 $ 51,481
Long-term debt $ 139,800 $ - $ 702 $ 2,434 $ 1,900
Stockholders' equity $ 189,447 $ 151,385 $ 133,147 $ 117,549 $ 24,977
In fiscal 2016, the Company issued $172.5 million aggregate principal amount of 1.625% convertible senior unsecured notes through a private placement. See Note 8 to the accompanying consolidated financial statements for additional information on the convertible notes.
The Company incurred transaction expenses of approximately $2.0 million in fiscal 2016 related to the acquisition of LoJack which was consummated subsequent to the end of fiscal 2016.
In fiscal 2016, the Company invested £1,400,000 or approximately $2.2 million for a minority ownership interest in Smart Driver Club Limited, a technology and insurance startup company located in the United Kingdom. This investment is accounted for under the equity method and the Companys equity in the net loss of this affiliate amounted to $829,000 in fiscal 2016. See Note 7 to the accompanying consolidated financial statements for additional information on this investment.
In fiscal 2016, the Company reduced its deferred tax assets valuation allowance by $2.5 million and recognized federal research and development tax credits of $0.6...