LoJack Reports Earnings of $.12 Per Share
23 September 1997
LoJack Reports Earnings of $.12 Per Share; Revenues of $18,745,000 for Second Quarter; System Expands to Delaware
DEDHAM, Mass., Sept. 23 -- LoJack Corporation
announced today that for the second quarter ended
August 31, 1997 ("fiscal 1998") revenues were $18,745,000, an 18% increase
over second quarter revenues of $15,910,000 in fiscal 1997. Earnings per
share were $.12 for the second quarter of fiscal 1998, an in crease of 20%
over earnings per share of $.10 for the same period last year. Net income was
$2,517,000, an increase of 7% over net income of $2,360,000 for the same
period last year. Operating income for the second quarter of fiscal 1998 was
$3,873,000, an increase of 13% over $3,441,000 for the same period a year ago.
Revenues for the six months ended August 31, 1997 were $37,303,000, a 21%
increase over six month revenues of $30,915,000 in fiscal 1997. Earnings per
share were $.23 for the six months of fiscal 1998, an increase of 28% over the
$.18 in earnings per share for the same, period last year. Net income for the
first six months of fiscal 1998 was $4,778,000, an increase of 11% over net
income of $4,297,000 a year ago. Operating income for the six months ended
August 31, 1997 was $7,417,000 an increase of 19% compared to $6,227,000 for
the same period a year ago.
The increase in revenues for the second quarter included a 22% increase in
domestic revenues. This increase represented a 26% increase in the sale of
LoJack Units over the second quarter of fiscal 1997, offset partially by
decreased penetrations of lower margin, optional automobile security products,
which also contributed to the increased margin percentages in the second
quarter this year compared to last year. Domestic revenues for the six months
ended August 31, 1997 increased 13% over the same period a year ago.
International revenues decreased 6% for the second quarter of fiscal 1998
compared to last year; however, these consisted primarily of sales of the
international version of the LoJack Unit to licensees in several international
markets, while international revenues a year ago were more heavily weighted
towards the sale of initial system components and license fees from new
licensees, which am primarily of a non-recurring nature. International
revenues for the six months ended August 31, 1997 increased 75% over the same
period a year ago.
Gross margins for the second quarters of fiscal 1998 and 1997 remained
stable at 56%. Domestic gross margins increased to 56% in the second quarter
of fiscal 1998 from 55% a year earlier, while international gross margins
decreased to 52% from 58% for the same periods, respectively.
In making the announcement, C. Michael Daley, chairman, said, "We are
pleased with the overall performance for the second quarter in all aspects of
our business. Not only did our new markets of Maryland and Pennsylvania grow
very well, revenues reflected a strong performance across most of our existing
markets. The Texas market is a little behind schedule but is expected to
begin improving with an expansion to the Houston area in the fourth quarter.
"We believe this improvement in our domestic markets is a reflection of
the changes we have instituted in personnel and advertising over the last 18
months and we expect this will result in continued improvements in the future.
Our new markets revenues have overall met our expectations for the second
quarter, and we expect to see accelerating revenue growth and contributions to
our profitability as their revenues continue to cover their fixed costs over
the next two quarters of fiscal 1998.
"Our sale of LoJack Units in the second quarter of fiscal 1998 to
international licensees increased 279% over the same period a year ago. We
are encouraged that our international sales of LoJack Units are continuing to
grow, particularly in our South American markets. We continue to negotiate
with potential licensees in a number of countries around the world.
"We recently signed an agreement to expand the LoJack System into
Delaware, which is contiguous to our Pennsylvania operation. We are also
progressing well with negotiations with Arizona and New Hampshire law
enforcement agencies.
"We continue to work on our LJU-III product which has taken longer than
expected due to several technical issues. We are working towards resolving
these issues which have moved our timetable for this product into next year.
"Based on the strong performance across our domestic markets, recurring
sales of products to our international licensees, and expected license fees
from new licensees, including in Germany, we are very encouraged and
optimistic about our growth potential for the balance of fiscal 1998."
The foregoing statements concerning expectations for the remainder of
fiscal 1998 are forward-looking statements which involve a number of risks and
uncertainties which could cause actual results to differ from those projected.
Such risks and uncertainties include, without limitation, matters affecting
the sales of automobiles, and the state of the economy in general, as well as
matters affecting the company, such as the timing of commencement of
operations of new licensees and success of the development and customer
acceptance of new products, the results of the company's domestic markets and
other factors which are listed in Exhibit 99 to the company's Annual Report on
Form 10-K for the fiscal year ended February 28, 1996.
LoJack Corporation
Condensed Financial Information
(Unaudited)
Three Months Ended Six Months Ended
August 31, August 31,
1997 1996 1997 1996
Revenues $18,745,000 $15,910,000 $37,303,000 $30,915,000
Operating Income 3,873,000 3,441,000 7,417,000 6,227,000
Pre-Tax Income 4,117,000 3,868,000 7,824,000 7,043,000
Net Income 2,517,000 2,360,000 4,778,000 4,297,000
Per share: $.12 $.10 $.23 $.18
Weighted average
number of common
shares outstanding 20,766,000 23,082,000 20,608,000 23,184,000
SOURCE LoJack Corporation