LoJack Corporation Reports Second Quarter 2002 Results
WESTWOOD, Mass., Aug. 1 LoJack Corporation reported that for the second quarter ended June 30, 2002 revenues increased by 25% to $30,419,000, from $24,392,000 in the same period a year ago. The net income for the second quarter was $28,000, compared to net income of $2,056,000 for the same period a year ago.
Revenues for the six months ended June 30, 2002 were $57,819,000 compared to revenues of $47,637,000 for the same period a year ago, an increase of 21%. Net income was $111,000 for the first six months of 2002, compared to $2,295,000 for the first six months of calendar year 2002.
Domestic revenues increased by 21% in the second quarter to $24,782,000, compared to $20,507,000 for the same period a year ago. International revenues for the second quarter were $5,637,000, an increase of 45% compared to revenues a year ago of $3,885,000. For the first six months of 2002, domestic revenues exceeded the prior year by $8,804,000, or 22%, while international revenues exceeded the prior year by $1,378,000, or 17%.
Additions to deferred revenue, relating to payments received for warranty products sold in the three and six months ended June 30, 2002, totaled $1,431,000 and $2,871,000, respectively. The company receives full payment for its warranty products at the time of purchase, but recognition of this revenue is spread over the life of the warranties. These payments are becoming an increasingly significant component of the company's cash flow from operations.
In announcing the results, Ronald J. Rossi, chairman, said, "Revenues for the second quarter represented a new record for the company. In the U.S., sales of LoJack units were the highest in the company's history, exceeding the same period a year ago by 21%, while new car sales declined by 2% compared to year ago levels. Net income for the second quarter was down reflecting the expense of our national advertising campaign and investments in people, marketing, sales, information technology, and product development. We continue to see growth in our domestic revenues resulting from those investments.
"We have also seen a return to growth in international unit sales and revenue, and expect this trend to continue in the coming quarters. Newly opened territories of France and Puerto Rico received their first shipments of product in the second quarter.
"Our multi-media advertising campaign and other strategic business plan investments should begin to show profitable results in the second half of 2002, with a return to strong profit margins in 2003."
During the second quarter the company did not repurchase any shares under its stock buyback program but, instead, utilized its cash flow to finance its growth program internally. The company may resume its stock buyback program in future quarters. As of June 30, 2002, a total of 8,663,034 shares have been repurchased since inception of the program.
To access the web cast of the company's conference call to be held at 9:00
AM EDT, Thursday, August 1, 2002 log onto:
http://www.firstcallevents.com/service/ajwz363656607gf12.html. The web cast
will be available for one week, until August 8, 2002
LoJack Corporation
Condensed Statements of Income
(Dollars in thousands except share amounts)
Three Months Ended June 30,
2002 2001
(Unaudited) (Unaudited)
Revenues $30,419 $24,392
Gross Margin 14,809 12,164
R&D 409 425
Sales & Marketing 9,675 4,905
G&A and depreciation 4,658 3,672
Operating income 67 3,162
Pre-tax income 44 3,263
Net income 28 2,056
Diluted earnings per share $.00 $.13
Weighted average diluted common
shares outstanding 14,681,784 16,076,446
Six Months Ended June 30,
2002 2001
(Unaudited) (Unaudited)
Revenues $57,819 $47,637
Gross Margin 28,209 23,014
R&D 856 1,013
Sales & Marketing 18,969 10,015
G&A and depreciation 8,237 8,558
Operating income 147 3,428
Pre-tax income 177 3,643
Net income 111 2,295
Diluted earnings per share $.01 $.14
Weighted average diluted common
shares outstanding 14,770,027 16,147,567
LoJack Corporation
Condensed Balance Sheets
(Dollars in thousands)
June 30, 2002 December 31, 2001
(Unaudited)
ASSETS
CURRENT ASSETS
Cash $3,468 $5,889
Accounts receivable 21,422 16,207
Inventories 6,960 5,865
Deferred taxes and other assets 2,878 2,470
Total current assets 34,728 30,431
PROPERTY AND EQUIPMENT 13,767 12,764
Deferred taxes and other assets 5,332 4,999
TOTAL ASSETS $53,827 $48,194
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of capital leases $1,855 $1,539
Accounts payable 11,342 6,689
Accrued and other liabilities 1,640 1,288
Customer deposits 1,639 1,635
Deferred revenue 3,559 3,086
Accrued compensation 2,269 1,835
Total current liabilities 22,304 16,072
ACCRUED COMPENSATION AND
OTHER LONG TERM LIABILITIES 613 747
DEFERRED REVENUE 11,650 10,660
CAPITAL LEASE OBLIGATIONS 1,704 1,038
TOTAL LIABILITIES 36,271 28,517
STOCKHOLDERS' EQUITY 17,556 19,677
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $53,827 $48,194
NOTE: The full text of this news release as well as current financial statements may be accessed on the Internet at: http://www.firstcallevents.com/service/ajwz363656607gf12.htm or at http://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 10-Q and Form 10-K filings will also be available on its web site. Copies of the company's financial information, including news releases, may also be obtained by contacting Swanson Communications, Inc. at (516) 671-8582.