LoJack Corporation Reports First Quarter 2003 Results
WESTWOOD, Mass., May 7, 2003 -- LoJack Corporation, reported today that revenue for the first quarter ended March 31, 2003 was $27,742,000 compared to $27,400,000 for the same period a year ago. Net income also increased to $964,000, or $.07 per diluted share, compared to $84,000, or $.01 per diluted share, for the first quarter a year ago.
Domestic revenues for the first quarter were $22,640,000 compared to $23,515,000 for the same period a year ago primarily due to a decline in dealer new car sales. International revenues for the first quarter were $5,102,000, an increase of 31% compared to year ago revenues of $3,885,000. This increase was primarily attributable to additional product and component infrastructure sales to the company's licensees in Argentina and Spain.
Gross margin for both the domestic and international business for the first quarter was 49%. Domestic gross margin was unchanged from the same period a year ago, while international gross margin increased from 48% for the same period a year ago to 49%, largely due to increased license fees and increased royalties on the sale of products to LoJack licensees.
Operating income increased to $1,554,000, from $80,000 in the same period a year ago. The overall increase in profitability reflects a decrease in operating expenses, primarily in sales and marketing.
In announcing the results, Ronald J. Rossi, chairman, said, "Our domestic sales outpaced new vehicle sales despite a very difficult economic climate, uncertain geopolitical situation, and adverse winter weather in the Northeast. We are pleased with the results in our international markets, which represent a significant opportunity for continuing growth for the company. While we are also pleased with our profits in the first quarter, we expect to continue our trend of increased profitability during the remainder of this year through revenue growth and our efforts to increase productivity and achieve improved operating efficiencies. LoJack has continued to expand to new markets in the U.S. with the greater Seattle area of Washington becoming operational in April."
LoJack Corporation
Condensed Income Statement Data (Unaudited)
(Dollars in thousands except per share amounts)
Three Months Ended March 31,
2003 2002
Revenues $27,742 $27,400
Gross margin 13,686 13,400
Research & development 673 446
Sales & marketing 7,006 9,294
General, administrative and depreciation 4,453 3,580
Operating income 1,554 80
Pre-tax income 1,581 133
Net income 964 84
Diluted earnings per share $.07 $.01
Weighted average diluted
common shares outstanding 14,742,306 14,738,483
LoJack Corporation
Condensed Balance Sheets
(Dollars in thousands)
March 31, 2003 December 31, 2002
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash $1,389 $1,367
Accounts receivable, net 19,297 19,152
Inventories 7,552 7,965
Deferred taxes and other assets 3,810 5,752
Total current assets 32,048 34,236
PROPERTY AND EQUIPMENT, Net 14,974 13,404
Deferred taxes and other assets 6,719 7,363
TOTAL ASSETS $53,741 $55,003
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of capital leases $1,361 $1,504
Accounts payable 8,344 10,950
Accrued and other liabilities 1,984 1,392
Customer deposits 470 794
Deferred revenue 4,727 4,527
Accrued compensation 2,127 2,214
Total current liabilities 19,013 21,381
ACCRUED COMPENSATION AND
OTHER LONG TERM LIABILITIES 443 508
DEFERRED REVENUE 12,187 11,682
CAPITAL LEASE OBLIGATIONS 766 1,064
TOTAL LIABILITIES 32,409 34,635
STOCKHOLDERS' EQUITY 21,332 20,368
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $53,741 $55,003