LoJack Corporation Reports First Quarter Earnings Of $.14 per Share On Revenues of $24,547,000.
LoJack Corporation, (Nasdaq: LOJN) announced today that for the first quarter ended May 31, 2001 (fiscal 2002) revenues were $24,547,000 compared to revenues of $24,486,000 for the same period a year ago. Net income was $2,199,000 or $.14 per diluted share, compared to a loss of ($363,000), or ($.02) per diluted share, for the same period a year ago. As previously disclosed, net income for last year's first quarter has been restated to reflect the adoption of the SEC's Staff Accounting Bulletin No. 101 ("SAB 101"), "Revenue Recognition in Financial Statements", which amounted to a one-time charge of $2,978,000, or ($.18) per diluted share, and resulted in the deferral of revenue previously recognized on international license fees. This adjustment will be recovered in future periods when the deferred international license fee revenue is recognized. Revenue for last year's first quarter has been increased by $170,000 to reflect the adoption of SAB 101.
International revenues in the first quarter fiscal 2002 compared to a year ago increased $692,000, or 21%, while domestic revenues decreased $631,000, or 3%.
Domestic sales of LoJack units for the first quarter of fiscal 2002 were slightly less than the first quarter of fiscal 2001. LoJack's penetration of new vehicle sales increased marginally during the first quarter even though new vehicle registrations to consumers decreased approximately 6.5% in LoJack's covered markets. The decrease in domestic revenues reflects lower average revenues per LoJack unit as a result of volume variable pricing agreements.
The 21% growth in international revenue, reflecting a 35% growth in LoJack Unit sales, was led by continued strong product sales to the company's South African and South American licensees. These sales were partially offset by a decrease in non-recurring revenues.
In making the earnings announcement, Ronald J. Rossi, chairman, said, "While we are pleased with the increase of our domestic penetration in the face of the decline in new car sales, we have undertaken, as we have stated before, new initiatives in sales, marketing and new product introduction which we expect, over the next six months, will result in increased revenues. Our international growth rate should also continue to be strong as the year progresses."
During the first quarter of fiscal 2002 the company repurchased 144,000 shares under its stock buyback program. As of July 2, 2001, total shares repurchased since inception of the program was 7,139,000 shares.
From time to time, information provided by the company or statements made by its employees may contain "forward-looking" information, which involve risk 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 objectives and plans for the company's future operations and products and the company's expected liquidity 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: the continued and future acceptance of the company's products and services, the rate of growth in the industries of the company's customers; the presence of competitors with greater technical, marketing, and financial resources; the company's ability to promptly and effectively respond to technological change to meet evolving customer needs; capacity and supply constraints or difficulties; and the company's ability to successfully expand its operations. 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 Exhibit 99 of the company's Annual Report on Form 10-K for the fiscal year ended February 28, 2001.
Condensed Financial Information
May 31, May 31,
Revenues $24,547,000 $24,486,000
Operating income 3,387,000 4,208,000
Pre-tax income 3,490,000 4,287,000
Income before cumulative effect of
change in accounting principle 2,199,000 2,615,000
Cumulative effect of change
in accounting principle -- (2,978,000)
Net income (loss) 2,199,000 (363,000)
Diluted earnings (loss) per share:
Before cumulative effect of
change in accounting principle $0.14 $0.16
Cumulative effect of change in
accounting principle -- ($0.18)
After cumulative effect of
change in accounting principle $0.14 ($0.02)
Weighted average diluted common
shares outstanding 16,091,000 16,781,000
NOTE: The full text of this news release as well as current financial statements may be accessed on the Internet at: http://www.lojack.com. Each quarter's release is archived on the web site under LoJack Financial Information during the fiscal year. The company's Annual Report, Form 10Q and Form 10K filings will also be available on it web site. Copies of the company's financial information, including news releases, may also be obtained by contacting Swanson Communications, Inc. at 516-671-8582.
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