Quarterly Financial Releases

back to financial release listing

LOJACK CORPORATION REPORTS EARNINGS OF $.12 PER SHARE ON $20,864,000 IN REVENUES FOR THIRD QUARTER.

Dedham, MA, Jan. 7-LoJack Corporation, (NASDAQ NMS: LOJN) announced today that for the third quarter ended November 30, 1998, (fiscal 1999) revenues were $20,864,000 compared to third quarter revenues of $19,311,000 in fiscal 1998. Net income was $2,279,000, or $.12 per diluted share, for the third quarter of fiscal 1999, compared to earnings of $2,911,000, or $.14 per diluted share, for the same period last year. Included in last year's third quarter was non-recurring license fees and system component revenues of $1,861,000 as compared to $112,000 in fiscal 1999. This translated into a decrease of $.05 in earnings per diluted share after taxes. Excluding these non-recurring license fees and system component revenues, proforma earnings per share would have been $.12 for the third quarter of fiscal 1999 versus $.09 for the same period a year ago, an increase of 33%.

The increase in revenues for the third quarter of fiscal 1999 of $1,553,000 reflected a $2,921,000, or 19%, increase in domestic revenues and a $1,368,000, or 36%, decrease in revenues from product sales and licensing fees in international markets.

Revenues for the nine months ended November 30, 1998 were $62,938,000 compared to revenues of $56,614,000 for the same period a year earlier. Net income was $8,565,000, or $.44 per diluted share, for the first nine months of fiscal 1999, compared to $7,689,000, or $.37 per diluted share, for the first nine months of fiscal 1998. Net income for the nine months ended November 30, 1998 included a gain on the sale of marketable securities which accounted for $.03 per diluted share, after taxes. Excluding the aforementioned gain on the sale of marketable securities in fiscal 1999 and the non-recurring license fees and system component revenues in each of the nine month periods, earnings per share would have been $.36 for the nine months of fiscal 1999 versus $.28 for the same period a year ago, an increase of 29%.

In making the announcement, C. Michael Daley, chairman, said, "Domestic revenue growth of 19% during the third quarter of fiscal 1999, which consisted of a 22% increase in the sale of LoJack Units, was the result of continued growth from our existing domestic markets, expansion to Arizona and Houston markets earlier this year, and modest levels of fleet and commercial sales. This level of growth continued in the month of December. We expect that our level of domestic unit growth for our fiscal year ending February 29, 2000 ("fiscal 2000") will continue to exceed 20%, and because we expect our expenses to grow at a lower rate, our earnings growth should increase at a greater rate.

"International revenues from sales of the international version of the LoJack Unit and related products increased by $381,000 in the third quarter compared to a year earlier, while revenues from non-recurring license fees and system component sales to new licensees decreased by $1,749,000 for the same periods. During the third quarter we entered into an agreement with a new licensee in Argentina. We have begun to ship product to this licensee who has recently initiated installations. We are optimistic that despite the economic crises around the globe, sales of the international version of the LoJack Unit to many of our licensees will continue to improve. While some of our licensees in Asia are struggling due to the economic conditions there, the negative revenue impact to our company is alleviated somewhat by the performance of other licensees, such as in the United Kingdom and South Africa. While this fiscal year has not met our expectations from the international side, we believe that our international business will return to a modest level of growth in fiscal 2000. This growth is expected to come through the combination of ongoing product sales to existing licensees, commencement of product sales to new start up licensees such as Germany, Mexico and Nigeria, and non-recurring license fees and system component sales from new licensees.

"We continue to repurchase shares under our stock buyback program. As of January 6, 1999 our total shares repurchased under the current board authorization is 4,703,100 shares."

The foregoing statements concerning revenues and earnings expectations for the remainder of fiscal 1999 and beyond 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 company, such as the timing of commencement of operations of new licensees, successful completion of the development and customer acceptance of new products, the results of the company's domestic markets, economic conditions in the company's international markets, and other factors which are listed in Exhibit 99 incorporated by reference in the company's Annual Report on Form 10-K for the fiscal year ended February 28, 1996.

LoJack Corporation

Condensed Financial Information
(Unaudited)