First Quarter Highlights
Revenue of $34.3 Million, up 13% from First Quarter of 2011
Domestic Unit Sales up 11% over First Quarter of 2011
Gross Margins Improve to over 54%
For the full press release and accompanying Condensed Consolidated Statement of Operations, Balance Sheets, and GAAP to Pro Forma Non-GAAP Reconciliation, please click here
Canton, MA, May 1, 2012 – LoJack Corporation (NASDAQ GS: “LOJN”), the global leader in finding and recovering a wide range of mobile assets including cars, construction equipment and motorcycles, today reported its financial results for the three month period ended March 31, 2012.
The company reported that consolidated revenue for the first quarter of 2012 was $34.3 million, up 13.1% from $30.3 million in the same quarter last year. Revenue in the company’s North America segment was $27.1 million for the quarter, up 21.3% from $22.4 million generated in the same quarter last year. Revenue in the company’s International segment for the first quarter of 2012 was $6.3 million, down 13.0% from $7.2 million in the same quarter last year.
Randy L. Ortiz, President and Chief Executive Officer, said, “We were pleased with our consolidated revenue performance in the first quarter, particularly in our U.S. business. The retail automotive market continues to be strong and we are seeing the benefits of our internal programs reflected in continued year-over-year dealer sales growth. Our U.S. performance helped offset a decline in our international business, which is experiencing weak auto sales in Europe and Latin America as well as the uneven demand patterns inherent to this segment of the business.”
Consolidated gross profit for the first quarter of 2012 was $18.7 million, up 24.1% from $15.0 million in the same quarter last year, due to higher revenues and higher gross margin percentage. Gross profit as a percentage of revenue for the first quarter of 2012 was 54.4%, up from 49.6% in the first quarter of the prior year.
Operating expenses in the first quarter of 2012 were $19.3 million, decreasing 2% as a
percentage of revenue from the first quarter of 2011. The increase over last year’s operating
expenses of $17.7 million is primarily related to higher personnel costs and higher outside legal
Net loss to LoJack Corporation for the first quarter of 2012 was $(0.3) million, or $(0.02) per
share, compared to a net loss of $(1.6) million, or $(0.09) per share, in the first quarter of
the prior year.
Adjusted EBITDA for the first quarter of 2012, which includes the items reflected in
Table 1, was $1.4 million, compared to $(0.2) million in the first quarter of 2011.
Mr. Ortiz said, “We are encouraged with our momentum in the North American segment, which
has delivered consecutive quarters of solid year-over-year revenue growth. We believe that this
momentum will continue, as the U.S. automotive industry’s strength is expected to be sustained
throughout the remainder of the year bolstered by a North American production schedule that is
expected to increase in the second quarter nearly 16% from last year, to support the higher
demand. While our international revenues are expected to decline in 2012 compared to last year,
we expect that our consolidated revenues for the year 2012 will increase 3 to 7 percent over 2011
Stock Repurchase Program
During the first quarter of 2012, the company did not repurchase any shares under its stock
repurchase plan. As of March 31, 2012, the company had an outstanding authority to repurchase
About LoJack Corporation
LoJack Corporation, the company that invented the stolen vehicle recovery market more than 25 years ago, is the global leader in finding and recovering a wide range of mobile assets including cars, construction equipment and motorcycles-having recovered nearly $4 billion USD in stolen assets worldwide. In today's rapidly changing world, LoJack's core competencies are more valuable and more relevant than ever as they are now being applied into new areas, such as the prevention, detection and recovery of stolen cargo and finding and rescuing people with cognitive conditions such as autism and Alzheimer's.
For more information, visit www.lojack.com, www.autotheftblog.com, www.youtube.com/lojack, www.twitter.com/LoJackCorp or www.Facebook.com/LoJackCorp.
To access the webcast of the company’s conference call to be held at 8:30 AM ET, May 1, 2012, log onto www.lojack.com (click “About Us,” “Investor Relations,” and then click “Events and Presentations”). An archive of the webcast will be available through http://www.lojack.com until superseded by the next quarter’s earnings release and related webcast.
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 (i) the company’s markets, portfolio of dealers and brands, (ii) conditions in the automotive industry, (iii) customer demand and expected timing of licensee purchases, (iv) the company’s objectives and plans for growth and future operations and products, including our integration with our dealers, and (v) the company’s future financial performance, including expected revenue). 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; (x) conditions in the automotive retail market; and (xi) changes in general economic or geopolitical conditions, including the European debt crisis. 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 December 31, 2011 and the company’s other filings with the Securities and Exchange Commission.
Readers should not place undue reliance on any forward-looking statements, which only speak as of the date made. 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 defines adjusted EBITDA as net loss which is adjusted for interest and other income (expense) and income taxes as well as depreciation, amortization and stock-based compensation. 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 LoJack and other companies on both a GAAP and a non-GAAP basis. LoJack management uses this non-GAAP measure, in addition to GAAP financial measures, as the basis for measuring our core operating performance and comparing such performance to that of prior periods and to the performance of our competitors. These measures are also used by management to assist with their financial and operating decision making.
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 this press release and in the table below.
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