Calamp Earnings 2020-11-30

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

camp-10q_20201130.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended November 30, 2020

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

COMMISSION FILE NUMBER: 0-12182

CALAMP CORP.

(Exact name of Registrant as specified in its Charter)

Delaware		95-3647070
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)

15635 Alton Parkway, Suite 250
Irvine, California		92618
(Address of principal executive offices)		(Zip Code)

(949) 600-5600

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol	Name of Each Exchange On Which Registered
Common stock, $0.01 per share	CAMP	Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares outstanding of the registrant’s common stock as of December 10, 2020 was 35,034,722.

CALAMP CORP.

QUARTERLY REPORT ON FORM 10-Q

FOR THE QUARTER ENDED NOVEMBER 30, 2020

TABLE OF CONTENTS

		Page Number
	PART I – FINANCIAL INFORMATION

ITEM 1.	Financial statements	3

	Condensed consolidated balance sheets (unaudited) as of November 30, 2020 and February 29, 2020	3

	Condensed consolidated statements of comprehensive loss (unaudited) for the three and nine months ended November 30, 2020 and 2019	4

	Condensed consolidated statements of cash flows (unaudited) for the nine months ended November 30, 2020 and 2019	5

	Condensed consolidated statements of stockholders’ equity (unaudited) for the three and nine months ended November 30, 2020 and 2019	6

	Notes to unaudited condensed consolidated financial statements	7

ITEM 2.	Management’s discussion and analysis of financial condition and results of operations	25

ITEM 3.	Quantitative and qualitative disclosures about market risk	34

ITEM 4.	Controls and procedures	34


PART II – OTHER INFORMATION

ITEM 1.	Legal proceedings	35

ITEM 1A.	Risk factors	35

ITEM 5.	Other Information	36

ITEM 6.	Exhibits	37

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CALAMP CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except par value)

(Unaudited)

	November 30,			February 29,
Assets	2020			2020
Current assets:
Cash and cash equivalents	$	91,692		$	107,404
Accounts receivable, net		67,852			72,273
Inventories		32,162			36,778
Prepaid expenses and other current assets		23,520			21,411
Total current assets		215,226			237,866
Property and equipment, net		44,576			55,878
Operating lease right-of-use assets		17,653			20,626
Deferred income tax assets		4,441			4,437
Goodwill		94,468			106,335
Other intangible assets, net		38,943			45,895
Other assets		26,516			24,768
	$	441,823		$	495,805
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of long-term debt	$	4,790		$	33,119
Accounts payable		36,834			28,450
Accrued payroll and employee benefits		8,641			9,049
Deferred revenue		36,003			34,704
Other current liabilities		21,116			16,153
Total current liabilities		107,384			121,475
Long-term debt, net of current portion		180,646			177,088
Operating lease liabilities		19,217			24,279
Other non-current liabilities		35,258			35,044
Total liabilities		342,505			357,886
Commitments and contingencies
Stockholders' equity:
Preferred stock, $.01 par value; 3,000 shares authorized; no shares issued or outstanding		—			—
Common stock, $.01 par value; 80,000 shares authorized; 35,035 and 34,322 shares issued and outstanding at November 30, 2020 and February 29, 2020, respectively		350			343
Additional paid-in capital		229,326			220,482
Accumulated deficit		(129,245	)		(81,531	)
Accumulated other comprehensive loss		(1,113	)		(1,375	)
Total stockholders' equity		99,318			137,919
	$	441,823		$	495,805

See accompanying notes to condensed consolidated financial statements.

CALAMP CORP.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(In thousands, except per share amounts)

(Unaudited)

	Three Months Ended						Nine Months Ended
	November 30,						November 30,
	2020			2019			2020			2019
Revenues:
Products	$	58,327		$	65,930		$	162,376		$	195,867
Application subscriptions and other services		29,685			30,667			89,388			83,036
Total revenues		88,012			96,597			251,764			278,903
Cost of revenues:
Products		37,773			43,569			110,561			121,659
Application subscriptions and other services		15,234			16,144			44,335			47,279
Total cost of revenues		53,007			59,713			154,896			168,938
Gross profit		35,005			36,884			96,868			109,965
Operating expenses:
Research and development		6,783			7,742			20,096			22,552
Selling and marketing		14,647			14,683			41,026			45,198
General and administrative		13,642			14,283			41,210			44,660
Intangible asset amortization		1,855			3,325			5,591			9,683
Restructuring		92			848			2,551			3,120
Impairment loss		17,999			—			22,574			—
Total operating expenses		55,018			40,881			133,048			125,213
Operating loss		(20,013	)		(3,997	)		(36,180	)		(15,248	)
Non-operating income (expense):
Investment income		584			1,108			1,282			4,445
Interest expense		(3,880	)		(4,987	)		(11,814	)		(15,998	)
Loss on extinguishment of debt		—			(2,408	)		—			(2,408	)
Other income (expense)		(52	)		232			(43	)		26
Total non-operating expense		(3,348	)		(6,055	)		(10,575	)		(13,935	)
Loss before income taxes and impairment loss in investment of affiliate		(23,361	)		(10,052	)		(46,755	)		(29,183	)
Income tax benefit (provision)		(319	)		2,637			(825	)		6,236
Loss before impairment loss in investment of affiliate		(23,680	)		(7,415	)		(47,580	)		(22,947	)
Impairment loss in investment of affiliate		—			—			—			(530	)
Net loss	$	(23,680	)	$	(7,415	)	$	(47,580	)	$	(23,477	)
Loss per share:
Basic	$	(0.68	)	$	(0.22	)	$	(1.39	)	$	(0.70	)
Diluted	$	(0.68	)	$	(0.22	)	$	(1.39	)	$	(0.70	)
Shares used in computing loss per share:
Basic		34,599			33,822			34,292			33,589
Diluted		34,599			33,822			34,292			33,589
Comprehensive income (loss):
Net loss	$	(23,680	)	$	(7,415	)	$	(47,580	)	$	(23,477	)
Other comprehensive income (loss):
Foreign currency translation adjustments		1,062			1,165			262			(122	)
Total comprehensive loss	$	(22,618	)	$	(6,250	)	$	(47,318	)	$	(23,599	)

See accompanying notes to condensed consolidated financial statements.

CALAMP CORP.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Nine Months Ended
	November 30,
	2020			2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(47,580	)	$	(23,477	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation expense		15,008			14,054
Intangible asset amortization expense		5,591			9,683
Stock-based compensation expense		9,499			9,378
Amortization of discount and debt issuance costs		7,712			11,031
Impairment loss		22,574			—
Impairment of operating lease right-of-use (ROU) assets		—			1,210
Noncash operating lease cost		3,943			3,440
Loss on extinguishment of debt		—			2,408
Revenue assigned to factors		(4,864	)		(5,016	)
Deferred tax assets, net		372			(5,701	)
Other		397			1,342
Changes in operating assets and liabilities:
Accounts receivable		4,772			(1,145	)
Inventories		4,919			(5,747	)
Prepaid expenses and other assets		(4,427	)		(1,853	)
Accounts payable		7,514			(7,652	)
Accrued liabilities		5,778			(1,805	)
Deferred revenue		(2,323	)		3,797
Operating lease liabilities		(4,542	)		(644	)
NET CASH PROVIDED BY OPERATING ACTIVITIES		24,343			3,303
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities of marketable securities		6,264			35,129
Purchases of marketable securities		(6,264	)		(19,543	)
Capital expenditures		(11,090	)		(17,637	)
Acquisitions, net of cash acquired		—			(60,634	)
Other		—			371
NET CASH USED IN INVESTING ACTIVITIES		(11,090	)		(62,314	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Paycheck Protection Program Loan		10,000			—
Repayment of Paycheck Protection Program Loan		(10,000	)		—
Proceeds from revolving credit facility, net of issuance cost		19,944			—
Repayment of 2020 Convertible Notes

Price	10.15	EPS	-0
Shares	34	P/E	-65
MCap	347	P/FCF	37
Net Debt	171	EBIT	5
TEV	518	TEV/EBIT	97
TTM 2019-11-30, in MM, except price, ratios

10-Q	2020-11-30	Filed 2020-12-17
10-Q	2020-08-31	Filed 2020-09-24
10-Q	2020-05-31	Filed 2020-06-25
10-K	2020-02-29	Filed 2020-05-06
10-Q	2019-11-30	Filed 2019-12-19
10-Q	2019-08-31	Filed 2019-09-26
10-Q	2019-05-31	Filed 2019-06-28
10-K	2019-02-28	Filed 2019-05-01
10-Q	2018-11-30	Filed 2018-12-20
10-Q	2018-08-31	Filed 2018-09-27
10-Q	2018-05-31	Filed 2018-06-28
10-K	2018-02-28	Filed 2018-05-10
10-Q	2017-11-30	Filed 2017-12-21
10-Q	2017-08-31	Filed 2017-09-28
10-Q	2017-05-31	Filed 2017-06-27
10-K	2017-02-28	Filed 2017-05-15
10-Q	2016-11-30	Filed 2016-12-21
10-Q	2016-08-31	Filed 2016-09-29
10-Q	2016-05-31	Filed 2016-06-29
10-K	2016-02-29	Filed 2016-04-20
10-Q	2015-11-30	Filed 2015-12-22
10-Q	2015-08-31	Filed 2015-10-01
10-Q	2015-05-31	Filed 2015-06-30
10-K	2015-02-28	Filed 2015-04-21
10-Q	2014-11-30	Filed 2014-12-23
10-Q	2014-08-31	Filed 2014-10-06
10-Q	2014-05-31	Filed 2014-07-01
10-K	2014-02-28	Filed 2014-04-24
10-Q	2013-08-31	Filed 2013-10-02
10-Q	2013-05-31	Filed 2013-06-27
10-K	2013-02-28	Filed 2013-04-25
10-Q	2012-11-30	Filed 2012-12-20
10-Q	2012-08-31	Filed 2012-09-25
10-Q	2012-05-31	Filed 2012-06-28
10-K	2012-02-28	Filed 2012-04-26
10-Q	2011-11-26	Filed 2011-12-22
10-Q	2011-08-27	Filed 2011-09-29
10-Q	2011-05-28	Filed 2011-06-30
10-K	2011-02-28	Filed 2011-04-28
10-Q	2010-11-27	Filed 2011-01-04
10-Q	2010-08-28	Filed 2010-10-06
10-Q	2010-05-29	Filed 2010-07-08
10-K	2010-02-28	Filed 2010-05-06
10-Q	2009-11-28	Filed 2010-01-07

8-K	2020-09-24
8-K	2020-08-24
8-K	2020-07-29
8-K	2020-07-02
8-K	2020-06-25
8-K	2020-05-28
8-K	2020-05-05
8-K	2020-04-24
8-K	2020-04-21
8-K	2020-04-15
8-K	2020-03-27
8-K	2020-03-20
8-K	2020-03-05
8-K	2020-01-29
8-K	2020-01-09
8-K	2019-11-30
8-K	2019-11-26
8-K	2019-11-04
8-K	2019-10-24
8-K	2019-10-23
8-K	2019-09-30
8-K	2019-08-31
8-K	2019-07-24
8-K	2019-05-31
8-K	2019-05-28
8-K	2019-04-30
8-K	2019-04-12
8-K	2019-04-08
8-K	2019-03-19
8-K	2019-02-28
8-K	2019-02-28
8-K	2019-02-25
8-K	2018-12-10
8-K	2018-12-06
8-K	2018-11-30
8-K	2018-09-27
8-K	2018-08-01
8-K	2018-07-25
8-K	2018-07-20
8-K	2018-07-17
8-K	2018-07-16
8-K	2018-06-27
8-K	2018-05-07
8-K	2018-04-26
8-K	2018-03-30

EX-31.1	camp-ex311_6.htm
EX-31.2	camp-ex312_7.htm
EX-32	camp-ex32_8.htm

CAMP 10Q Quarterly Report

Calamp Earnings 2020-11-30