LoJack Reports First Quarter Income of $.12 Per Share; Revenues $22,501,000
13 July 1999
LoJack Reports First Quarter Income of $.12 Per Share; Revenues $22,501,000
DEDHAM, Mass., July 13 -- LoJack Corporation
announced today that for the first quarter ended May 31, 1999 (fiscal 2000)
revenues were $22,501,000, an increase of 11% over revenues of $20,265,000 for
the same period a year ago. Net income was $2,245,000, or $.12 per diluted
share, compared to $3,419,000, or $.17 per diluted share, for the same period
a year ago. Net income from the first quarter a year ago (fiscal 1999)
included a $1,100,000 pre-tax gain on the sale of a marketable security which
accounted for $.03 of earnings per diluted share after taxes.
Compared to the first quarter of fiscal 1999, the increase in revenues in
the first quarter of fiscal 2000 reflected a $3,063,000, or 17% increase in
domestic revenues and an $827,000, or 31% decrease in revenues from product
sales and fees pursuant to license agreements for the company's technology in
international markets.
Gross margin for the first quarter of fiscal years 2000 and 1999 was
56% of revenues. Domestic gross margin was 56% for the first quarter of
fiscal year 2000, down from 57% for the same period a year earlier.
International margins for the first quarter of fiscal 2000 decreased to 49% of
related revenues from 50% for the same period a year earlier primarily due to
a decrease in high margin license fee revenue.
In making the announcement, C. Michael Daley, chairman, said, "We continue
to achieve strong revenue growth in our domestic operations. The number of
LoJack Units sold increased by 21% in the first quarter of fiscal 2000, over
the same period a year earlier. This increase in LoJack Unit sales has been
the result of success in our dual strategies to increase the number of new car
dealers who regularly sell our product and to increase penetration of the
largest dealer groups in the country. We believe this focus on our domestic
sales, together with planned expansion to additional domestic markets,
presents an opportunity for continued domestic revenue growth.
"During the first quarter we launched an aggressive multi-media
advertising campaign which included our first national television and
automotive magazine advertising as well as continuation of our traditional
radio advertising. This campaign is designed to create greater consumer and
brand awareness in existing markets and generate visibility in those markets
targeted for future expansion.
"As previously disclosed, our sales and marketing expenditures, because of
the timing of the production of advertising and our media buy, are more
heavily weighted in the first six months this year than in previous years.
This is the principal reason why our earnings per share (excluding fiscal
1999's gain on the sale of a marketable security) decreased from the first
quarter of fiscal 1999 to the same period in fiscal 2000.
"International revenues did not meet our expectations for the first
quarter of fiscal 2000, primarily because of continued weakness in the
economies of a number of our Asian and South American markets as well as lower
license fee revenues. However, recently there have been some signs in Asia,
South America, and Russia that economic conditions are improving. We are
hopeful that this may result in a return to growth in our markets there
provide the opportunity for continued expansion by new licensees.
"We continued to repurchase shares under the buyback program during the
first quarter of fiscal 2000. As of July 6, 1999 total shares repurchased was
5,620,600 shares, with 579,400 remaining under the current authorization. We
will continue to repurchase shares as they become available at price levels we
believe represent a good investment opportunity for the company."
The foregoing statements concerning expectations for fiscal 2000 and
thereafter 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 timing of commencement of operations of
new markets and the success and financial condition of the company's new and
existing foreign licensees, 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 29, 1996.
LoJack Corporation
Consolidated Financial Information
(Unaudited)
Quarter Ended
May 31, May 31,
1999 1998
Revenues $22,501,000 $20,265,000
Operating Income 3,596,000 4,415,000
Pre-tax Income 3,679,000 5,606,000
Net Income 2,245,000 3,419,000
Diluted Earnings Per Share $.12 $.17
Weight Average Number of
Shares Outstanding 18,158,000 19,674,000
Note: Results for the quarter ended May 31, 1998 included a pre-tax gain
of $1,100,000 on the sale of a marketable security. This translated into
$.03 earnings per diluted share after taxes.
Note: This news release and other corporate information may be reviewed
on LoJack's website: http://www.lojack.com.