<PAGE>
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ACT OF
----
1934
For the quarterly period ended August 3l, l996
----------------------------------
or
____ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
ACT OF 1934
For the transition period from to
--------------------- ----------------------
Commission File Number 2-74238-B
---------
LOJACK CORPORATION
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Massachusetts 04-2664794
- ----------------------------------- ---------------------
(State or other jurisdiction of I.R.S. Employer
incorporation or organization) Identification Number
333 Elm Street Dedham, Massachusetts 02026
- --------------------------------------------------------------------------------
(Address of principal executive offices) (ZIP Code)
6l7-326-4700
- --------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed
since last report)
Indicate by check mark whether the registrant (l) has filed all reports required
to be filed by Section l3 or l5(d) of the Securities Exchange Act of l934 during
the preceding l2 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 X No
---- ----
APPLICABLE ONLY TO ISSUERS INVOLVED
IN BANKRUPTCY PROCEEDINGS DURING
THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections l2, l3 or l5(d) of the Securities
Exchange Act of l934 subsequent to the distribution of securities under a plan
confirmed by a court. Yes ____ No ____
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's class of
common stock, as of the lastest practicable date.
21,328,59l at October 4, 1996
-----------------------------
<PAGE>
LOJACK CORPORATION AND SUBSIDIARIES
INDEX
<TABLE>
<CAPTION>
Part I. Financial Information Page
----
<S> <C>
Item l. Financial Statements:
Consolidated Balance Sheets:
August 3l, l996 and February 28,
l996........................................... 1
Consolidated Statements of Operations:
Three Months Ended August 3l, l996 and 1995 and
Six Months Ended August 3l, l996 and l995....... 2
Consolidated Statements of Cash Flows:
Six Months Ended August 3l, l996 and l995....... 4
Notes to Consolidated Financial
Statements...................................... 6
Item 2. Management's Discussion and Analysis of Results
of Operations and Financial Condition............ 7
Part II. Other Information................................. 11
Item 4. Submission of Matters to a Vote of
Security Holders
Item 6(a) Exhibits and Reports on Form 8-K
Signatures........................................ 12
Exhibit 11........................................ 13
Exhibit 27........................................ l6
</TABLE>
<PAGE>
LOJACK CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
<TABLE>
<CAPTION>
August 31, February 29,
l996 l996
--------- ------------
(Unaudited)
<S> <C> <C>
CURRENT ASSETS:
Cash and equivalents..................... $3l,892,570 $3l,630,663
Accounts receivable-net.................. 7,9l8,723 5,873,9l8
Inventories.............................. 2,776,348 2,780,4l6
Prepaid expenses and other assets........ 2l3,l08 83,544
----------- -----------
Total current assets................ 42,800,749 40,368,54l
PROPERTY AND EQUIPMENT - NET................ 7,629,250 7,652,703
DEFERRED TAX ASSET.......................... 2,487,l73 4,703,l73
OTHER ASSETS-NET............................ 337,027 355,020
----------- -----------
Total................................ $53,254,199 $53,079,437
=========== ===========
</TABLE>
LIABILITIES AND STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
CURRENT LIABILITIES:
<S> <C> <C>
Current portion of
capital lease obligations .............. $ 690,l62 $ 670,925
Accounts payable......................... 3,260,5l0 2,562,922
Accrued compensation..................... 553,640 672,938
Current portion of deferred revenue...... 786,924 695,794
Deposits in escrow....................... 769,094 l,087,74l
Accrued and other liabilities............ 775,256 996,l65
Accrued taxes............................ 3l3,805 364,500
----------- -----------
Total current liabilities.............. 7,l49,39l 7,050,985
----------- -----------
DEFERRED REVENUE............................ l,9l3,892 l,656,766
LONG-TERM DEBT:
Capital lease obligations................ 622,966 644,2l8
Total long-term debt................... 622,966 644,2l8
----------- -----------
STOCKHOLDERS' EQUITY:
Common stock - $.0l par value;
authorized, 35,000,000 shares;
issued, 21,984,59l and
21,876,666 shares at August 3l, l996
and February 29, l996, respectively.... 2l9,846 2l8,767
Additional paid-in capital............... 57,273,602 56,872,389
Deficit.................................. (8,2l9,559) (12,5l6,l88)
Treasury stock, at cost
548,500 and 90,000 shares of
common stock at August 3l, l996
and February 29, l996, respectively..... (5,705,939) (847,500)
----------- -----------
Total stockholders' equity............... 43,567,950 43,727,468
----------- -----------
Total............................... $53,254,l99 $53,079,437
=========== ===========
</TABLE>
See notes to consolidated financial statements.
-1-
<PAGE>
LOJACK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Three Months Ended
-----------------------------
August 3l, August 3l,
1996 l995
--------------- ------------
(Unaudited) (Unaudited)
<S> <C> <C>
Revenues................................ $l5,909,555 $l3,490,835
Cost of Goods Sold...................... 7,050,953 6,l28,867
----------- -----------
Gross Margin............................ 8,858,602 7,36l,968
----------- -----------
Costs and Expenses:
System costs and research and
development......................... l82,208 249,664
Sales & marketing................... 3,298,788 3,l06,200
General and administrative.......... 1,58l,837 l,45l,874
Depreciation and amortization....... 354,592 490,265
----------- -----------
Total.............................. 5,4l7,425 5,298,003
----------- -----------
Operating Income ........................ 3,44l,l77 2,063,965
----------- -----------
Interest Income........................ 449,l54 375,204
Interest (Expense)..................... (3l,607) (54,6l3)
Other Income........................... 9,6l4 42,742
----------- -----------
Total............................... 427,l6l 363,333
----------- -----------
Income before Provision for Income
Taxes .................................. 3,868,338 2,427,298
Provision for Income Taxes............... l,508,000 l82,000
----------- -----------
Net Income .............................. $ 2,360,338 $ 2,245,298
=========== ===========
Earnings per Common Share
and Common Share Equivalent............. $0.10 $0.10
===== =====
Weighted average common shares and
equivalents outstanding ................. 23,08l,958 23,336,988
=========== ===========
</TABLE>
See notes to consolidated financial statements.
-2-
<PAGE>
LOJACK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Six Months Ended
-----------------------------
August 3l, August 3l,
1996 l995
--------------- ------------
(Unaudited) (Unaudited)
<S> <C> <C>
Revenues................................ $30,9l4,881 $25,323,573
Cost of Goods Sold...................... 13,983,37l 11,76l,890
----------- -----------
Gross Margin............................ l6,93l,5l0 13,56l,683
----------- -----------
Costs and Expenses:
System costs and research and
development......................... 529,382 574,007
Sales & Marketing................... 6,473,735 5,758,945
General and administrative........... 2,990,868 2,726,627
Depreciation and amortization........ 7l0,684 963,25l
----------- -----------
Total............................. 10,704,669 10,022,830
----------- -----------
Operating Income ....................... 6,226,84l 3,538,853
----------- -----------
Other Income (Expense):
Interest Income....................... 872,3l9 693,607
Interest (Expense).................... (66,926) (87,239)
Other Income.......................... 10,392 62,862
----------- -----------
Total............................... 8l5,785 669,230
----------- -----------
Income before Provision for Income
Taxes ................................. 7,042,626 4,208,083
Provision for Income Taxes.............. 2,746,000 342,000
----------- -----------
Net Income ............................. 4,296,626 3,866,083
=========== ===========
Earnings per Common Share
and Common Share Equivalent:........... $0.18 $0.17
===== =====
Weighted average common shares and
equivalents outstanding................ 23,l84,376 23,l07,826
=========== ===========
</TABLE>
See notes to consolidated financial statements.
-3-
<PAGE>
LOJACK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Six Months Ended
-----------------------------
August 3l, August 3l,
1996 l995
--------------- ------------
(Unaudited) (Unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVIES:
Net income............................... $4,296,626 $3,866,083
---------- ----------
Adjustments to reconcile net income
to net cash provided by
operating activities:
Deferred tax asset.................... 2,2l6,000
Depreciation and amortization......... l,l42,70l l,362,l79
Increase (decrease) in cash from
changes in assets and liabilities:
Accounts receivable-net........... (2,044,805) (l,726,9ll)
Inventories....................... 4,068 (l5,88l)
Prepaid expenses and other assets. (l29,564) (25,305)
Other assets...................... (7,25l) 5,639
Accounts payable.................. 697,588 l,075,l68
Accrued and other
liabilities..................... (36l,290) l86,227
---------- -----------
Total adjustments................ l,5l7,447 86l,ll6
---------- -----------
Net cash provided by
operating activities........... $5,8l4,073 $ 4,727,l99
---------- -----------
</TABLE>
See notes to consolidated financial statements.
-4-
<PAGE>
LOJACK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Continued)
<TABLE>
<CAPTION>
Six Months Ended
---------------------------
August 3l, August 3l,
l996 l995
------------- ------------
(Unaudited) (Unaudited)
<S> <C> <C>
CASH FLOWS FROM INVESTING ACTIVITIES:
Expenditures for property and
equipment - net........................ $ (558,588) $ (682,844)
---------- -----------
Net cash used for investing
activities....................... (558,588) (682,844)
---------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock................ 402,292 84l,442
Repayment of debt (net)................. (537,43l) (48l,730)
---------- -----------
Repurchase of common stock (4,858,439)
Net cash provided by
financing activities............. (4,993,578) 359,7l2
---------- -----------
INCREASE IN CASH AND
EQUIVALENTS............................. 26l,907 4,404,067
BEGINNING CASH AND EQUIVALENTS........... 31,630,663 2l,665,908
----------- -----------
ENDING CASH AND EQUIVALENTS............. $31,892,570 $26,069,975
=========== ===========
</TABLE>
See notes to consolidated financial statements.
-5-
<PAGE>
LOJACK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. The accompanying consolidated financial statements and notes
do not include all of the disclosures made in the Company's
Annual Report to Stockholders, which should be read in
conjunction with these statements. Certain fiscal 1996 amounts
have been reclassified to conform with the fiscal
1997 presentation. In the opinion of the Company, the
statements include all adjustments necessary for a fair
presentation of the quarterly results and any and all such
adjustments were of a normal recurring nature.
2. The results of operations for the three and six months ended
August 3l, l996 and l995 are not necessarily indicative of
the results to be expected for the full year.
3. Supplemental cash flow information:
Cash paid for interest for the six months ended August 3l,
l996 and l995 was $63,000 and $86,000, respectively. Cash
paid for income taxes for the three months ended August 3l,
l996 and l995 were $58l,000 and $354,000, respectively. For the six
months ended August 3l, l996 and l995 the Company incurred capital
lease obligations totalling $535,000 and $663,000, repectively, under
lease agreements for new vehicles and equipment.
4. Earnings per share
Earnings per share has been computed by dividing net earnings,
by the weighted average number of common shares
and equivalents outstanding. Common share equivalents included
in the computation represent shares issuable upon assumed
exercise of stock options which would have a dilutive effect.
Fully diluted and primary earnings per share were the same for the
three and six months ended August 3l, l996 and l995.
-6-
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
AUGUST 31, 1996
Revenues increased by $2,419,000 and $5,591,000, or 18% and 22%, to $15,910,000
and $30,915,000 for the three and six months ended August 31, 1996,
respectively, from $13,491,000 and $25,324,000 for the same periods a year
earlier. Revenues from domestic markets increased $703,000 and $2,975,000, and
international revenues increased $1,716,000 and $2,616,000 for the three and six
months ended August 31, 1996 as compared with the same periods a year earlier.
The increase in domestic revenues was primarily due to increased revenues from
sales of LoJack Units and related components in domestic markets. The increase
in international revenues was generated from both product sales and licensing
fee revenues. Revenues from international product sales increased $1,111,000
and $2,198,000, as did revenues from international licensing fees, which
increased $605,000 and $418,000, respectively for the three and six months ended
August 31, 1996 as compared to the same periods a year earlier.
Cost of goods sold as a percentage of revenues decreased to 44% and 45%,
respectively, for the three and six months ended August 31, 1996 from 45% and
46% of related revenues for the same periods a year earlier. Domestically, cost
of sales decreased to 45% and 45%, respectively, for the three and six months
ended August 31, 1996 from 46% and 47% of related revenues for the same periods
a year earlier. This decrease is primarily the result of increased
manufacturing and operating efficiencies realized from economies of scale
resulting from increased product sales. Cost of goods sold related to revenues
derived from international licensing agreements decreased to 42% for the three
months ended August 31, 1996 from 44% a year earlier and increased to 47% for
the six months ended August 31, 1996 from 36% for the same period a year
earlier. These ratios fluctuate from quarter to quarter based upon the revenue
mix of product sales and licensing fees.
Systems costs and research and development decreased by $68,000 and $45,000 to
$182,000 and $529,000 for the three and six months ended August 31, 1996,
respectively, from $250,000 and $574,000, respectively, for the same periods a
year earlier. Systems costs decreased $55,000 and $66,000 for the three and six
months ended August 31, 1996. The decrease in systems costs relates to the
reduction in operating costs for LoJack Systems installed in the markets in
prior years. Research and development decreased $13,000 for the three months
ended August 31, 1996 and increased $21,000 six months ended August 31, 1996.
These variations are primarily the result of modifications to the LoJack Unit
(for international applications) and Police Tracking Computers in the
-7-
<PAGE>
first six months of fiscal 1996, which are partially offset by expenditures
related to the development of a third generation LoJack Unit in fiscal 1997.
Overall, sales and marketing expenses as a percentage of revenues decreased to
21% for the three and six months ended August 31, 1996 from 23% for the same
periods a year earlier.
Sales and marketing expenses increased by $193,000 and $715,000 to $3,299,000
and $6,474,000 for the three and six months ended August 31, 1996 from
$3,106,000 and $5,759,000 for the same periods a year earlier. These increases
were primarily related to an increase in media expense due to increased radio
advertising in certain markets as well as fees related to the retention of an
outside advertising agency for all media purchases and advertising copy.
Additionally, sales and marketing salaries and wages and other general marketing
expenses increased as the result of an increase in overall business volume.
Overall, general and administrative expenses as a percentage of revenues
decreased to 10% for the three and six months ended August 31, 1996 from 11% for
the same periods a year earlier.
General and administrative expenses increased by $130,000 and $264,000 to
$1,582,000 and $2,991,000 for the three and six months ended August 31, 1996,
respectively from $1,452,000 and $2,727,000 for the same periods a year earlier.
These increases are primarily the result of increased payroll costs and
administrative expenses related to the increased volume of business during these
fiscal periods as compared with the prior year.
Depreciation and amortization decreased by $135,000 and $252,000 to $355,000 and
$711,000 for the three and six months ended August 31, 1996, respectively, from
$490,000 and $963,000 for the same periods a year earlier. These decreases are
the result of LoJack System components becoming fully depreciated, offset
partially by increases in depreciation related to current year additions of
certain computer equipment and software.
Interest and other income increased by $41,000 and $126,000 for the three and
six months ended August 31, 1996, respectively, primarily as the result of the
increase in cash balances available for investment in fiscal 1997.
Interest expense decreased by $23,000 and $20,000 for the three and six months
ended August 31, 1996, respectively, as the result of the absence of 10%
Convertible Subordinated Debentures in the period ending August 31,1996 and
decreased interest on capital lease obligations.
-8-
<PAGE>
Provision for income taxes increased by $1,326,000 and $2,404,000 for the three
and six months ended August 31, 1996, respectively, primarily as the result of
the increase in the Company's taxable income during the fiscal year as well as
the realization in the fourth quarter of fiscal 1996 of the future tax benefit
of the Company's remaining net operating loss carryforwards in accordance with
certain accounting pronouncements, which resulted in an increase in the
Company's effective tax rate to 39% in fiscal 1997.
LIQUIDITY AND CAPITAL RESOURCES
In the six months ended August 31, 1996 the decrease in cash from changes in
assets and liabilities of $1,841,000 includes an increase in accounts receivable
of $2,045,000, an increase in prepaid expenses of $130,000 and a decrease in
accrued liabilities of $361,000 and other net increases in assets and
liabilities of $3,000, offset partially by increases in accounts payable of
$698,000. The increase in accounts receivable is primarily related to the
increase in domestic revenues during the second quarter of fiscal 1997 versus
the fourth quarter of fiscal 1996 as well as $662,000 in receivables related to
international sales which are secured under the terms of a letter of credit. The
Company expects its investment in accounts receivable will increase as its sales
increase. The decrease in the deferred tax asset results from the offset of
current taxable income against available net operating loss carryforwards.
The Company estimates capital expenditures for the remainder of fiscal 1997 of
approximately $2,000,000 principally for planned domestic market expansions,
including Pennsylvania and Texas, as well as other on-going capital
requirements. The Company's expansion into additional international markets is
achieved through licensing agreements and has not in the past required capital
investment on the part of the Company. The Company currently has no plans to
change its practice in the future.
During fiscal 1996 the Company's board of directors authorized a stock
repurchase program under which the Company may repurchase up to 2,200,000 shares
of its outstanding common stock. The Company plans to accomplish the repurchase
program in open market transactions, from time to time, depending on the price
of its common stock. As of August 31 , 1996 the Company had repurchased 548,500
shares for a total of $5,706,000. From August 31, 1996 through October 4, 1996
the Company has repurchased an additional 107,500 shares for a cost of
$1,150,630.
As of August 31, 1996 the Company had working capital of $35,651,000. The
Company believes that its anticipated capital and operating requirements for the
remainder of fiscal 1997 can be funded from cash flows from operations. The
Company intends to continue to repurchase shares of its common stock in
-9-
<PAGE>
accordance with the plan authorized by the board of directors during fiscal 1996
provided that the reacquisition cost makes such repurchases economically
practical.
The Company is also continuing to explore possible investment opportunities,
including, but not limited to, possible acquisitions of or investments in other
companies.
NEW ACCOUNTING PRONOUNCEMENTS
In fiscal 1996, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standard ("SFAS") No. 121 "Accounting for the Impairment of
Long-Lived Assets and for Long-Lived Assets to be Disposed of" and SFAS No. 123
"Accounting for Stock-Based Compensation", which are effective for the Company's
fiscal year 1997. The implementation of SFAS No. 121 did not have a significant
impact on the financial statements when adopted in fiscal 1997. With regard to
SFAS No. 123, the Company has determined as permitted under SFAS No. 123 that it
will not adopt the fair value method and will continue to use Accounting
Principles Board Opinion No.25 for the measurement and recognition of employee
stock based transactions.
CAUTIONARY STATEMENTS
The Private Securities Litigation Reform Act of 1995 contains certain safe
harbors regarding forward-looking statements. 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 report 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 and customers, the
Company's objectives and plans for future operations 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 integrate new 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 29,
1996.
-10-
<PAGE>
PART II - OTHER INFORMATION
Item 1. Not Applicable.
Item 2. Not Applicable.
Item 3. Not Applicable
Item 4. Submission of Matters to a Vote of Security Holders.
The Annual Meeting of Stockholders of the company was held on July 20,
l996.
Stockholders acted affirmatively to elect nominees for directors
proposed by management.
<TABLE>
<CAPTION>
Votes "For" Votes "Withheld"
----------- ----------------
<S> <C> <C>
C. Michael Daley l9,023,608 330,672
James A. Daley l9,0l7,l79 337,l0l
Harold W. Shad, III l9,257,558 96,722
Lee T. Sprague 19,254,l08 l00,l72
Robert J. Murray l9,259,218 95,062
Larry C. Renfro l9,250,948 l03,332
</TABLE>
Item 5. Not Applicable
Item 6. Exhibits and Reports on Form 8-K.
a. ll. Statement Regarding Computation of Per Share Earnings.
27. Financial Data Schedule
b. No reports on Form 8-K were filed during the quarter for which this
report is filed.
-11-
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of l934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
LOJACK CORPORATION
October 9, l996 /s/ C. Michael Daley
- ------------------------- --------------------
Date C. Michael Daley
Chief Executive Officer
October 9, 1995 /s/ Joseph F. Abely
- ------------------------- --------------------
Date Joseph F. Abely
President
-12-
<PAGE>
STATEMENT REGARDING COMPUTATION OF
PER SHARE EARNINGS
EXHIBIT 11
<TABLE>
<CAPTION>
Three Months Ended
------------------------
August 3l, August 3l,
1996 1995
----------- -----------
<S> <C> <C>
Primary and fully diluted
earnings:
Net income $ 2,360,338 $ 2,245,298
=========== ===========
Shares:
Weighted average number of common
shares outstanding 21,645,424 21,43l,l29
Assumed exercise of options
and warrants l,436,535 l,905,859
----------- -----------
Weighted average number of common
shares for primary and fully
diluted calculation 23,08l,958 23,336,988
=========== ==========
Primary and fully diluted
earnings per share: $.10 $0.10
==== =====
</TABLE>
-1-
<PAGE>
STATEMENT REGARDING COMPUTATION OF
PER SHARE EARNINGS
EXHIBIT 11
(Continued)
<TABLE>
<CAPTION>
Six Months Ended
------------------------
August 3l, August 3l,
1996 1995
----------- -----------
<S> <C> <C>
Primary:
Earnings:
Net income $ 4,296,626 $ 3,866,083
=========== ===========
Shares:
Weighted average number of common
shares outstanding 21,7l7,724 21,357,653
Assumed exercise of options
and warrants l,466,652 l,750,l73
----------- -----------
Weighted average number of common
shares for primary calculation 23,l84,376 23,107,826
=========== ===========
Primary earnings per share: $0.18 $0.17
===== =====
</TABLE>
-2-
<PAGE>
STATEMENT REGARDING COMPUTATION OF
PER SHARE EARNINGS
EXHIBIT 11
(Continued)
<TABLE>
<CAPTION>
Six Months Ended
------------------------
August 3l, August 3l,
1996 1995
----------- -----------
<S> <C> <C>
Assuming full dilution:
Earnings:
Net income $ 4,296,626 $ 3,866,083
=========== ===========
Shares:
Weighted average number of common
shares outstanding 21,7l7,724 21,357,653
Assumed exercise of options
and warrants l,540,75l 2,088,483
----------- -----------
Weighted average number of common
shares for fully diluted
calculation 23,258,475 23,446,l36
=========== ===========
Fully diluted earnings per share: $0.18 $0.17
===== =====
</TABLE>
-3-
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM LOJACK CORP
FORM 10Q 8/31/96 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENT.
</LEGEND>
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 6-MOS
<FISCAL-YEAR-END> FEB-28-1997 FEB-28-1997
<PERIOD-START> JUN-01-1996 MAR-01-1996
<PERIOD-END> AUG-31-1996 AUG-31-1996
<CASH> 31,892,570 0
<SECURITIES> 0 0
<RECEIVABLES> 8,439,151 0
<ALLOWANCES> 520,428 0
<INVENTORY> 2,776,348 0
<CURRENT-ASSETS> 42,800,749 0
<PP&E> 20,881,839 0
<DEPRECIATION> 13,252,589 0
<TOTAL-ASSETS> 53,254,199 0
<CURRENT-LIABILITIES> 7,149,391 0
<BONDS> 0 0
219,846 0
0 0
<COMMON> 0 0
<OTHER-SE> 43,348,104 0
<TOTAL-LIABILITY-AND-EQUITY> 53,254,199 0
<SALES> 15,154,442 30,059,768
<TOTAL-REVENUES> 15,909,555 30,914,881
<CGS> 7,050,953 13,983,371
<TOTAL-COSTS> 7,050,953 13,983,371
<OTHER-EXPENSES> 5,417,425 10,704,669
<LOSS-PROVISION> 11,848 136,649
<INTEREST-EXPENSE> 31,607 66,926
<INCOME-PRETAX> 3,868,338 7,042,626
<INCOME-TAX> 1,508,000 2,746,000
<INCOME-CONTINUING> 2,360,338 4,296,626
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 2,360,338 4,296,626
<EPS-PRIMARY> .10 .18
<EPS-DILUTED> .10 .18
</TABLE>
