The company reported that consolidated revenue for the third quarter of 2011 was
"While we underperformed the broader domestic retail auto market, which was up 7% in the third quarter, we were able to make steady improvements throughout the quarter, including a year-over-year increase in our
"International revenue in the third quarter was negatively impacted primarily by the timing of purchases by some of our licensees, much of which we now expect to receive in the final quarter of the year. Revenue in
Consolidated gross margin for the third quarter of 2011 was $17.8 million, down 8.2% from
Operating expenses in the third quarter of 2011 increased $1.9 million from the third quarter of 2010 to
Adjusted EBITDA for the third quarter of 2011, which includes the items reflected in Table 1, was $1.5 million, compared to
Net loss to
Mr. Riley added, "We are excited about the new leadership joining an already dynamic senior management team. Randy Ortiz, our new CEO and President, is a talented and seasoned veteran of the automotive industry, while
"Based on our third quarter performance, we have revised 2011 internal forecast to reflect expected revenue between $137 million and
During the third quarter of 2011, the company did not repurchase any shares under its stock repurchase plan. As of September 30, 2011, the company had an outstanding authority to repurchase 1,681,778 shares.
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Safe Harbor Regarding Forward Looking Statements
From time to time, information provided by the company or statements made by its employees may contain "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws, which involve risks 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 market, customers and auto inventories, expected timing of licensee purchases, the company's objectives and plans for future operations and products and the company's expected liquidity, cash flow, revenue, profit margins, adjusted EBITDA 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: (i) the continued and future acceptance of the company's products and services; (ii) our ability to obtain financing from lenders; (iii) the outcome of ongoing litigation involving the company; (iv) the rate of growth in the industries of the company's customers; (v) our relationships with our licensees and the strength of their business; (vi) the presence of competitors with greater technical, marketing, and financial resources; (vii) the company's customers' ability to access the credit markets; (viii) the company's ability to promptly and effectively respond to technological change to meet evolving customer needs; (ix) the company's ability to successfully expand its operations; and (x) changes in general economic or geopolitical conditions. 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 the company's Annual Report on Form 10-K for the year ended
Except as required by law, the company undertakes no obligation to release publicly the result of any revision to the forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Use of Non-GAAP Financial Measures
In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this press release also contains the non-GAAP financial measure, adjusted EBITDA. The company believes that the inclusion of this non-GAAP financial measure in this press release helps investors to gain a meaningful understanding of changes in the company's core operating results, and can also help investors who wish to make comparisons between
The non-GAAP financial measures included in this press release are not meant to be considered superior to or a substitute for results of operations prepared in accordance with GAAP. In addition, the non-GAAP financial measures included in this press release may be different from, and therefore may not be comparable to, similar measures used by other companies. Reconciliations of the non-GAAP financial measures used in this press release to the most directly comparable GAAP financial measures are set forth in the text of, and the accompanying tables to, this press release.
Table 1 — Adjusted EBITDA Computation GAAP to Pro Forma Non-GAAP Reconciliation (in millions) | |||||||
Three Months ended | Three Months ended | ||||||
$ | $ | ||||||
Net income (loss), as reported | |||||||
Adjusted for: | |||||||
Provision for income taxes | 0.6 | 0.4 | |||||
Other income (expense) | 0.7 | (0.1) | |||||
Operating income (loss) | |||||||
Adjusted for: | |||||||
Depreciation and amortization | 1.4 | 1.8 | |||||
Stock compensation expense | 0.6 | 0.2 | |||||
Adjusted EBITDA | |||||||
Condensed Consolidated Statement of Operations | ||||
(in millions, except share and per share amounts) | ||||
Three Months Ended September 30, | ||||
2011 | 2010 | |||
(unaudited) | ||||
Revenue | ||||
Cost of goods sold | 16.7 | 19.1 | ||
Gross profit | 17.8 | 19.4 | ||
Costs and expenses: | ||||
Product development | 1.3 | 1.2 | ||
Sales and marketing | 6.9 | 6.9 | ||
General and administrative | 8.8 | 6.6 | ||
Depreciation and amortization | 1.3 | 1.7 | ||
Total | 18.3 | 16.4 | ||
Operating income (loss) | (0.5) | 3.0 | ||
Other income (expense): | ||||
Interest income | 0.1 | -- | ||
Interest expense | (0.1) | (0.2) | ||
Other, net | (0.7) | 0.3 | ||
Total | (0.7) | 0.1 | ||
Income (loss) before provision for income taxes | (1.2) | 3.1 | ||
Provision for income taxes | 0.6 | 0.4 | ||
Net income (loss) | (1.8) | 2.7 | ||
Less: Net loss attributable to the noncontrolling interest | -- | -- | ||
Net income (loss) attributable to | ||||
Diluted net income (loss) per share attributable to | ||||
Weighted average diluted common | ||||
shares outstanding | 17,678,213 | 17,738,093 | ||
Condensed Consolidated Statement of Operations | ||||
(in millions, except share and per share amounts) | ||||
Nine Months Ended September 30, | ||||
2011 | 2010 | |||
(unaudited) | ||||
Revenue | ||||
Cost of goods sold | 48.4 | 53.3 | ||
Gross profit | 50.0 | 53.3 | ||
Costs and expenses: | ||||
Product development | 4.0 | 4.9 | ||
Sales and marketing | 20.1 | 22.7 | ||
General and administrative | 24.3 | 24.7 | ||
Depreciation and amortization | 4.7 | 5.4 | ||
Total | 53.1 | 57.7 | ||
Operating loss | (3.1) | (4.4) | ||
Other income (expense): | ||||
Interest income | 0.9 | 0.2 | ||
Interest expense | (0.5) | (0.5) | ||
Other, net | 0.6 | (0.1) | ||
Total | 1.0 | (0.4) | ||
Loss before provision for income taxes | (2.1) | (4.8) | ||
Provision for income taxes | 1.2 | 16.6 | ||
Net loss | (3.3) | (21.4) | ||
Less: Net loss attributable to the noncontrolling interest | (0.1) | (0.3) | ||
Net loss attributable to | ||||
Diluted net loss per share attributable to | ||||
Weighted average diluted common | ||||
shares outstanding | 17,601,996 | 17,330,533 | ||
Condensed Consolidated Balance Sheets | |||||
(in millions) | |||||
| |||||
(unaudited) | |||||
Assets | |||||
Current Assets: | |||||
Cash and cash equivalents | $ 51.7 | $ 51.8 | |||
Restricted cash | -- | 0.2 | |||
Marketable securities at fair value | 1.4 | 1.4 | |||
Accounts receivable, net | 21.5 | 26.9 | |||
Inventories | 8.6 | 8.5 | |||
Prepaid expenses and other | 2.8 | 4.0 | |||
Prepaid and receivable income taxes | 0.6 | 0.7 | |||
Deferred income taxes | 0.3 | 0.3 | |||
Total current assets | 86.9 | 93.8 | |||
Property and equipment, net | 12.4 | 15.1 | |||
Deferred income taxes | 0.1 | 0.1 | |||
Intangible assets, net | 0.1 | 0.3 | |||
Goodwill | 1.7 | 1.7 | |||
Other assets, net | 8.9 | 11.3 | |||
Total assets | |||||
Liabilities and equity | |||||
Current Liabilities: | |||||
Current portion of long term debt | $ 0.2 | $ 0.2 | |||
Accounts payable | 4.8 | 7.1 | |||
Accrued and other liabilities | 10.3 | 11.1 | |||
Current portion of deferred revenue | 20.0 | 21.8 | |||
Accrued compensation | 3.5 | 4.7 | |||
Total current liabilities | 38.8 | 44.9 | |||
Long term debt | 9.4 | 8.8 | |||
Deferred revenue | 23.6 | 28.8 | |||
Deferred Income Taxes | 0.3 | 0.3 | |||
Other accrued liabilities | 3.6 | 3.5 | |||
Accrued compensation | 1.2 | 1.6 | |||
Total liabilities | 76.9 | 87.9 | |||
Commitments and Contingent Liabilities | |||||
Equity: | |||||
Common stock | 0.2 | 0.2 | |||
Additional paid-in capital | 21.8 | 20.0 | |||
Accumulated other comprehensive income | 6.9 | 6.7 | |||
Retained earnings | 4.5 | 7.7 | |||
Total LoJack Corporation equity | 33.4 | 34.6 | |||
Noncontrolling interest in subsidiary | (0.2) | (0.2) | |||
Total equity | 33.2 | 34.4 | |||
Total liabilities and equity | |||||
NOTE: The full text of this news release can be accessed for 30 days at www.prnewswire.com. This news release as well as current financial statements may also be accessed on the Internet at www.lojack.com
. Each quarter's release is archived on the
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