LoJack Corporation Reports Fourth Quarter and Fiscal Year 2002 Results
WESTWOOD, Mass., March 12 LoJack Corporation, reported that for the fiscal year ended December 31, 2001, a ten-month transition period resulting from the company's change from a fiscal year ending the last day of February to a calendar year, revenues were $84,379,000 versus $80,369,000 for the comparable ten months ended December 31, 2000. Net income for the ten-month transition period was $2,955,000, or $.19 per diluted share, compared to net income for the ten months ended December 31, 2000 of $4,761,000, or $.29 per diluted share. Net income for the ten months ended December 31, 2000 includes the effects of the adoption of the SEC's Staff Accounting Bulletin No. 101 (``SAB 101''), ``Revenue Recognition in Financial Statements,'' which, as previously disclosed, resulted in a one-time charge of $2,978,000, or $.18 per diluted share, to be recognized in subsequent periods. Approximately $446,000 ($.03 per diluted share) of this charge has been recognized in net income in the ten-month transition period.
Domestic revenues for the ten-month transition period were $70,226,000, compared to $68,764,000 for the ten months ended December 31, 2000. International revenues for the ten-month transition period were $14,153,000, versus $11,605,000 for the ten months ended December 31, 2000.
As a result of the fiscal year change, future quarters will end on March 31, June 30, September 30 and December 31. The change was effected to align LoJack's reporting periods with its major customers.
For the fourth quarter, a one-month period that ended December 31, 2001, revenues were $7,484,000 compared to revenues of $5,764,000 for the month of December 2000. The company is beginning to see results from its investments in marketing, advertising, and sales, as reflected in the 30% increase in revenue in December compared to the prior year. The net loss for the one-month fourth quarter was ($1,363,000) or ($.09) per diluted share, compared to net income of $310,000, or $.02 per diluted share, for the month of December 2000. The one-month loss was primarily the result of timing of expense recognition relating to engineering, new products, recruiting fees for new marketing and sales personnel, and year-to-date volume price rebate levels achieved in December by a major international licensee. In addition, the company continued its ongoing investments in marketing during December.
The company receives payments in connection with its warranty programs, but recognition of this revenue is spread over the life of the warranties. The total additions to deferred revenue at December 31, 2001 relating to payments received on these programs in the one and ten months ended December 31, 2001 amounted to $189,000 and $3,747,000, respectively. These payments are becoming an increasingly significant component of the company's cash flow.
In announcing the results, Ronald J. Rossi, chairman, said, ``In the December quarter, we began to see growth resulting from our investments in people, marketing, information technology, and product development. Domestic unit sales increased 26% over the previous year, which is on top of sales growth of 27% and 29% in October and November. The trend has continued this quarter, despite an overall decline in new car sales. In addition, attesting to the increasing strength of our existing international licensees, unit sales in these markets continued to grow as well.
``In the coming quarters, we will continue with our investments in accordance with our strategic business plan. As a result, we expect the next several quarters to have marginal profits as we continue our multi-media advertising campaign, and implement other tactical initiatives to grow our business. Because of our strong financial position we expect to continue to finance this growth internally.
``During our ten-month transition period the company repurchased 1,056,640 shares under its stock buyback program. The company may continue to repurchase shares as they become available at price levels we believe represent a good investment opportunity. As of March 1 2002, a total of 8,190,840 shares have been repurchased since inception of the program.''
To access the webcast of the company's conference call held at 1 PM EDT, Tuesday, March 12, 2002 log onto: http://www.videonewswire.com/event.asp?id=3787. The webcast will run for one week, until March 19, 2002.
From time to time, information provided by the company or statements made by its employees may contain ``forward-looking'' information, which involve risk and uncertainties. Any statements in this news release that are not statements of historical fact are forward-looking statements (including, but not limited to, statements concerning the characteristics and growth of the company's objectives and plans for the company's future operations and products and the company's expected liquidity and capital resources). Such forward-looking statements are based on a number of assumptions and involve a number of risks and uncertainties, and accordingly, actual results could differ materially. Factors that may cause such differences include, but are not limited to: the continued and future acceptance of the company's products and services; the effectiveness of the company's marketing initiatives; the rate of growth in the industries of the company's customers; the presence of competitors with greater technical, marketing, and financial resources; the company's ability to promptly and effectively respond to technological change to meet evolving customer needs; capacity and supply constraints or difficulties; and the company's ability to successfully expand its operations. For a further discussion of these and other significant factors to consider in connection with forward-looking statements concerning the company, reference is made to Exhibit 99 of the company's Annual Report on Form 10-K for the fiscal year ended February 28, 2001.
LoJack Corporation
Condensed Statements of Operations
(Dollars in thousands except share amounts)
One Month Ended One Month Ended
December 31, 2001 December 31, 2000
(Unaudited)
Revenues $7,484 $5,764
Gross Margin 3,307 2,766
R&D 1,097 71
Sales & Marketing 3,138 1,123
G&A 1,234 1,118
Operating income (loss) (2,162) 454
Pre-tax income (loss) (2,164) 491
Net income (loss) (1,363) 310
Diluted earnings (loss) per share ($.09) $.02
Weighted average diluted common
shares outstanding 14,726,324 16,329,362
Ten Months Ended Ten Months
Ended
December 31, 2001 December 31, 2000
(Unaudited)
Revenues $84,379 $80,369
Gross Margin 42,112 41,289
R&D 2,634 911
Sales & Marketing 22,783 18,315
G&A 12,135 10,220
Operating income 4,560 11,843
Pre-tax income 4,690 12,285
Income before cumulative
effect of change in
accounting principle 2,955 7,739
Cumulative effect of change
in accounting principle -- (2,978)
Net income 2,955 4,761
Diluted earnings per share:
Before cumulative effect of
change in accounting principle $.19 $.45
Cumulative effect of change
in accounting principle -- ($.18)
After cumulative effect of
change in accounting principle $.19 $.29
Weighted average diluted common
shares outstanding 15,774,719 16,626,290
LoJack Corporation
Condensed Balance Sheets
(Dollars in thousands)
December 31, 2001 February 28, 2001
ASSETS
CURRENT ASSETS
Cash $5,889 $7,989
Accounts receivable 16,207 12,943
Inventories 5,865 4,592
Deferred taxes and other assets 2,470 3,140
Total current assets 30,431 28,664
PROPERTY AND EQUIPMENT 12,764 10,490
Deferred taxes and other assets 4,999 3,001
TOTAL ASSETS $48,194 $42,155
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of capital leases $1,539 $1,504
Accounts payable 6,689 2,072
Accrued and other liabilities 1,288 1,388
Customer deposits 1,635 --
Deferred revenue 3,086 2,849
Accrued compensation 1,835 2,092
Total current liabilities 16,072 9,905
ACCRUED COMPENSATION AND
OTHER LONG TERM LIABILITIES 747 906
DEFERRED REVENUE 10,660 8,421
CAPITAL LEASE OBLIGATIONS 1,038 1,087
TOTAL LIABILITIES 28,517 20,319
STOCKHOLDERS' EQUITY 19,677 21,836
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $48,194 $42,155
NOTE: The full text of this news release as well as current financial statements may be accessed on the Internet at: www.lojack.com. Each quarter's release is archived on the web site under LoJack Financial Information during the fiscal year. The company's Annual Report, Form 10Q and Form 10K filings will also be available on its web site.