<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 November 30, 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.
20,350,09l at January l3, l997
------------------------------
<PAGE>
LOJACK CORPORATION AND SUBSIDIARIES
INDEX
Part I. Financial Information Page
----
Item l. Financial Statements:
Consolidated Balance Sheets:
November 30, l996 and February 29,
l996.................................................3
Consolidated Statements of Operations:
Three Months Ended November 30, l996 and 1995 and
Nine Months Ended November 30, l996 and l995.........4
Consolidated Statements of Cash Flows:
Nine Months Ended November 30, l996 and l995.........6
Notes to Consolidated Financial
Statements...........................................8
Item 2.
Management's Discussion and Analysis of Results
of Operations and Financial Condition................9
Part II. Other Information....................................13
Item 4. Submission of Matters to a Vote of
Security Holders
Item 6(a) Exhibits and Reports on Form 8-K
Signatures...........................................14
Exhibit 11...........................................15
Exhibit 27...........................................l9
<PAGE>
LOJACK CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
ASSETS
November 30, February 29,
l996 l996
---------------- ------------
(Unaudited)
<S> <C> <C>
CURRENT ASSETS:
Cash and equivalents.......................$27,468,353 $3l,630,663
Accounts receivable-net.................... 7,l6l,64l 5,873,9l8
Inventories................................ 3,903,35l 2,780,4l6
Prepaid expenses and other assets.......... 269,388 83,544
----------- -----------
Total current assets.................. 38,802,733 40,368,54l
PROPERTY AND EQUIPMENT - NET.................. 7,80l,859 7,652,703
DEFERRED TAX ASSET............................ l,387,789 4,703,l73
OTHER ASSETS-NET.............................. 329,739 355,020
----------- -----------
Total..................................$48,322,l20 $53,079,437
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of
capital lease obligations.................$ 672,49l $ 670,925
Accounts payable........................... 3,057,375 2,562,922
Accrued compensation....................... 598,l93 672,938
Current portion of deferred revenue........ 8l3,084 695,794
Deposits................................... 807,062 l,087,74l
Accrued and other liabilities.............. 999,786 996,l65
Accrued taxes.............................. l84,l50 364,500
----------- -----------
Total current liabilities................ 7,132,l4l 7,050,985
----------- -----------
DEFERRED REVENUE.............................. 2,l00,628 l,656,766
----------- -----------
LONG-TERM DEBT:
Capital lease obligations.................. 4l4,39l 644,2l8
----------- -----------
Total long-term debt..................... 4l4,39l 644,2l8
----------- -----------
STOCKHOLDERS' EQUITY:
Common stock - $.0l par value;
authorized, 35,000,000 shares;
issued, 21,984,59l and
21,876,666 shares at November 30, l996
and February 29, l996, respectively...... 2l9,845 2l8,767
Additional paid-in capital................. 57,273,603 56,872,389
Deficit....................................( 6,292,005) (12,5l6,l88)
Treasury stock, at cost
l,202,000 and 90,000 shares of
common stock at November 30, l996
and February 29, l996, respectively.......(12,526,483) (847,500)
----------- -----------
Total stockholders' equity................. 38,674,960 43,727,468
----------- -----------
Total.................................$48,322,l20 $53,079,437
=========== ===========
</TABLE>
See notes to consolidated financial statements.
3
<PAGE>
LOJACK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Three Months Ended
------------------
November 30, November 30,
1996 l995
------------ -----------
(Unaudited) (Unaudited)
<S> <C> <C>
Revenues...................................$l5,l3l,688 $l3,600,226
Cost of Goods Sold......................... 6,730,474 6,233,l87
----------- -----------
Gross Margin............................... 8,40l,2l4 7,367,039
----------- -----------
Costs and Expenses:
System costs and research and
development............................ 393,211 302,453
Sales & marketing...................... 3,464,731 2,856,976
General and administrative............. 1,384,513 l,333,49l
Depreciation and amortization.......... 382,772 437,539
----------- -----------
Total.............................. 5,625,227 4,930,459
----------- -----------
Operating Income........................... 2,775,987 2,436,580
----------- -----------
Interest Income........................ 399,282 373,342
Interest (Expense)..................... (4l,326) (33,074)
Other Income (loss).................... 24,6l2 (26,484)
----------- -----------
Total................................ 382,568 313,784
----------- -----------
Income before Provision for Income
Taxes..................................... 3,l58,555 2,750,364
Provision for Income Taxes................. l,23l,000 l90,l00
----------- -----------
Net Income.................................$ l,927,555 $ 2,560,264
=========== ===========
Earnings per Common Share
and Common Share Equivalent............... $0.09 $0.11
=========== ===========
Weighted average common shares and
equivalents outstanding................... 22,485,0l9 23,621,648
=========== ===========
</TABLE>
See notes to consolidated financial statements.
4
<PAGE>
LOJACK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Nine Months Ended
-----------------
November 30, November 30,
1996 l995
------------ ------------
(Unaudited) (Unaudited)
<S> <C> <C>
Revenues...................................$46,046,569 $38,923,799
Cost of Goods Sold......................... 20,7l3,845 l7,995,078
----------- -----------
Gross Margin............................... 25,332,724 20,928,721
----------- -----------
Costs and Expenses:
System costs and research and
development............................ 922,593 876,460
Sales & marketing....................... 9,938,465 8,6l5,92l
General and administrative.............. 4,375,383 4,060,ll8
Depreciation and amortization........... l,093,455 l,400,790
----------- -----------
Total................................ 16,329,896 14,953,289
----------- -----------
Operating Income........................... 9,002,828 5,975,432
----------- -----------
Other Income (Expense):
Interest Income......................... l,27l,60l l,066,950
Interest (Expense)...................... (l08,252) (l20,3l3)
Other Income............................ 35,004 36,378
----------- -----------
Total................................. l,l98,353 983,0l5
----------- -----------
Income before Provision for Income
Taxes..................................... l0,20l,l8l 6,958,447
Provision for Income Taxes................. 3,977,000 532,l00
----------- -----------
Net Income.................................$ 6,224,l8l $ 6,426,347
=========== ===========
Earnings per Common Share
and Common Share Equivalent:..............$ 0.27 $ 0.28
=========== ===========
Weighted average common shares and
equivalents outstanding................... 22,952,733 23,279,021
========== ==========
</TABLE>
See notes to consolidated financial statements.
5
<PAGE>
LOJACK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Nine Months Ended
-----------------
November 30, November 30,
l996 l995
------------ ------------
(Unaudited) (Unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income..................................$ 6,224,l8l $ 6,426,347
----------- -----------
Adjustments to reconcile net income
to net cash provided by
operating activities:
Deferred tax asset....................... 3,3l5,384
Depreciation and amortization............ l,741,l00 2,0l5,000
Increase (decrease) in cash from
changes in assets and liabilities:
Accounts receivable-net.............. (l,287,723) (l,608,282)
Inventories.......................... (l,l22,935) (82,259)
Prepaid expenses and other assets.... (l85,844) (33,321)
Other assets......................... (12,522) l,067
Accounts payable..................... 494,453 504,l90
Accrued and other
liabilities......................... 28,999 l,443,l26
----------- -----------
Total adjustments................... 2,970,9l2 2,239,521
----------- -----------
Net cash provided by
operating activities...............$ 9,l95,093 $ 8,665,868
----------- -----------
</TABLE>
6
<PAGE>
LOJACK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Continued)
<TABLE>
<CAPTION>
Nine Months Ended
-----------------
November 30, November 30,
l996 l995
------------ ------------
(Unaudited) (Unaudited)
<S> <C> <C>
CASH FLOWS FROM INVESTING ACTIVITIES:
Expenditures for property and
equipment - net.......................... $ (l,3l7,45l) $ ( 964,0l8)
------------ ------------
Net cash used for investing
activities......................... (l,3l7,45l) ( 964,0l8)
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock................... 402,292 l,442,l70
Repayment of debt (net).................... (763,26l) (636,904)
Repurchase of common stock ................ (ll,678,983)
------------ ------------
Net cash provided by
financing activities............... (12,039,952) 805,266
------------ ------------
INCREASE (DECREASE) IN CASH AND
EQUIVALENTS................................ (4,l62,3l0) 8,507,ll6
BEGINNING CASH AND EQUIVALENTS.............. 31,630,663 2l,665,908
------------ ------------
ENDING CASH AND EQUIVALENTS................. $ 27,468,353 $ 30,l73,024
============ ============
</TABLE>
See notes to consolidated financial statements.
7
<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 nine months ended
November 30, 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 nine months ended November 30, l996 and l995
was $l04,000 and $l2l,000, respectively. Cash paid for income taxes for the
nine months ended November 30, l996 and l995 were $837,000 and $388,000,
respectively. For the nine months ended November 30, l996 and l995 the
Company incurred capital lease obligations totalling $535,000 and $659,000,
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 nine months ended November 30, l996 and l995.
8
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
NOVEMBER 30, 1996
Revenues increased by $1,532,000 and $7,123,000, or 11% and 18%, to $15,132,000
and $46,047,000 for the three and nine months ended November 30, 1996,
respectively, from $13,600,000 and $38,924,000 for the same periods a year
earlier. Revenues from domestic markets increased $427,000 and $3,402,000, and
international revenues increased $1,105,000 and $3,721,000 for the three and
nine months ended November 30, 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 existing domestic
markets. The increase in international revenues was generated from both
increases in product sales of $774,000 and $2,972,000, and increases in
licensing fee and royalty revenues of $331,000 and $749,000, respectively, for
the three and nine months ended November 30, 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 nine months ended November 30, 1996 from 46% and
46% of related revenues for the same periods a year earlier. Domestically, for
the nine month period, cost of sales decreased to 45% from 46% of related
revenues from the same period a year earlier, while remaining constant for the
three month period at 46%. The decrease results primarily from a decrease in
the manufactured cost of the LoJack unit as well as 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 38% for the three months ended November 30, 1996 from
41% a year earlier and increased to 44% for the nine months ended November 30,
1996 from 39% 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 expense increased by $91,000 and
$46,000 to $393,000 and $923,000 for the three and nine months ended November
30, 1996, respectively, from $302,000 and $877,000, respectively, for the same
periods a year earlier. Systems costs increased $44,000 and $64,000 for the
three and nine months ended November 30, 1996, respectively as the result of
systems maintenance costs for LoJack Systems installed in the existing markets.
Research and development increased $47,000 for the three months ended November
30, 1996 and decreased $18,000 for the nine months ended November 30, 1996.
These variations are primarily the result of modifications to the LoJack Unit
(for international applications) and Police Tracking Computers in the first nine
months of fiscal 1996, which are partially offset by expenditures related to the
development of a third generation LoJack Unit in fiscal 1997.
9
<PAGE>
Sales and marketing expenses increased by $608,000 and $1,323,000 to $3,465,000
and $9,939,000 for the three and nine months ended November 30, 1996 from
$2,857,000 and $8,616,000 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 start-up expenses (including media
planning) related to expansion activity in Maryland, Pennslyvania, and Texas.
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 9% for the three and nine months ended November 30, 1996 from 10%
for the same periods a year earlier.
General and administrative expenses increased by $51,000 and $315,000 to
$1,385,000 and $4,375,000 for the three and nine months ended November 30, 1996,
respectively from $1,334,000 and $4,060,000 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 the
three and nine months ended November 30, 1996 as compared with the prior year,
as well as start-up expenses related to expansion activity in Maryland,
Pennsylvania and Texas.
Depreciation and amortization decreased by $55,000 and $308,000 to $383,000 and
$1,093,000 for the three and nine months ended November 30, 1996, respectively,
from $438,000 and $1,401,000 for the same periods a year earlier. These
decreases are the result of certain LoJack System components becoming fully
depreciated, offset partially by increases in depreciation related to current
year additions of computer equipment and software.
Interest and other income increased by $77,000 and $203,000 for the three and
nine months ended November 30, 1996, respectively, primarily as the result of
the increase in average cash balances available for investment in fiscal 1997.
Interest expense increased by $8,000 and decreased by $12,000 for the three and
nine months ended November 30, 1996, respectively, due to the timing of
additions and disposals for vans acquired via capital lease obligations.
Provision for income taxes increased by $1,041,000 and $3,445,000 for the three
and nine months ended November 30, 1996, respectively, primarily as the result
of both the increase in the Company's taxable income during the fiscal year as
well as an increase in the Company's effective tax rate to 39% in fiscal 1997 as
compared to approximately 7% in fiscal 1996 which was the result of 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.
10
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
In the nine months ended November 30, 1996 cash and cash equivalents decreased
by $4,162,000. The overall decrease is the result of cash outlays for financing
and investing totaling $13,357,000 being partially offset by cash flow from
operating activities of $9,195,000.
Cash flow provided by operating activities of $9,195,000 includes net income of
$6,224,000 and $2,971,000 of adjustments to reconcile net income to net cash
used for operating activities. The decrease in cash from changes in assets and
liabilities of $2,086,000 includes an increase in accounts receivable of
$1,288,000, an increase in inventories of $1,123,000, an increase in prepaid
expenses of $186,000 and an increase in other assets of $13,000, offset
partially by increases in accounts payable of $494,000 and accrued and other
liabilities of $29,000. The increase in accounts receivable is primarily
related to the increase in domestic revenues during the quarter ending November
30, 1996 versus the quarter ending February 29, 1996 as well as a $741,000
increase 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 increase in inventory is
primarily the result of an effort to increase inventories on hand to sufficient
levels to satisfy the Company's current level of business, anticipated sales in
expansion markets of Maryland, Texas and Pennsylvania, anticipated orders from
foreign licensees, as well as to meet unanticipated demand. 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 $1,000,000, 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 this practice.
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, which subsequently was increased to 3,200,000
on January 3, 1997. As of November 30, 1996 the Company had repurchased
1,202,000 shares for a total of $12,526,000. From December 1, 1996 through
January 6, 1996 the Company has repurchased an additional 420,000 shares at a
cost of $4,036,550.
As of November 30, 1996 the Company had working capital of $31,671,000. 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 provided
that the reacquisition cost makes such repurchases economically practical. The
11
<PAGE>
company's existing line of credit with a bank of $7,500,000 was amended during
the third quarter primarily to convert it from a secured facility to an
unsecured facility.
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.
12
<PAGE>
PART II - OTHER INFORMATION
Item 1. Not Applicable.
Item 2. Not Applicable.
Item 3. Not Applicable.
Item 4. Not Applicable.
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.
13
<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
January 14, l997 /s/ C. Michael Daley
- ------------------------- ---------------------
Date C. Michael Daley
Chief Executive Officer
January 14, 1997 /s/ Joseph F. Abley
- ----------------------- ---------------------
Date Joseph F. Abely
President
14
<PAGE>
STATEMENT REGARDING COMPUTATION OF
PER SHARE EARNINGS
EXHIBIT 11
<TABLE>
<CAPTION>
Three Months Ended
------------------
November 30, November 30,
1996 1995
------------ ------------
<S> <C> <C>
Primary earnings:
Net income $ l,927,555 $ 2,560,264
=========== ===========
Shares:
Weighted average number of common
shares outstanding 21,l45,371 21,653,866
Assumed exercise of options
and warrants l,339,648 l,967,782
----------- -----------
Weighted average number of common
shares for primary
calculation 22,485,0l9 23,62l,648
=========== ===========
Primary earnings per share: $ 0.09 $ 0.11
=========== ===========
</TABLE>
1
<PAGE>
STATEMENT REGARDING COMPUTATION OF
PER SHARE EARNINGS
EXHIBIT 11
<TABLE>
<CAPTION>
Three Months Ended
--------------------------
November 30, November 30,
1996 1995
------------ ------------
<S> <C> <C>
Fully diluted
earnings:
Net income $ l,927,555 $ 2,560,264
=========== ===========
Shares:
Weighted average number of common
shares outstanding 21,l45,371 21,653,866
Assumed exercise of options
and warrants l,339,648 l,969,234
----------- -----------
Weighted average number of common
shares for primary and
fully diluted calculation 22,485,0l9 23,623,l00
=========== ===========
Fully diluted
earnings per share: $ 0.09 $ 0.11
=========== ===========
</TABLE>
2
<PAGE>
STATEMENT REGARDING COMPUTATION OF
PER SHARE EARNINGS
EXHIBIT 11
(Continued)
<TABLE>
<CAPTION>
Nine Months Ended
-----------------
November 30, November 30,
1996 1995
------------ ------------
<S> <C> <C>
Primary:
Earnings:
Net income $ 6,224,l8l $ 6,426,347
=========== ===========
Shares:
Weighted average number of common
shares outstanding 21,528,416 21,456,20l
Assumed exercise of options
and warrants l,424,317 l,822,820
----------- -----------
Weighted average number of common
shares for primary calculation 22,952,733 23,279,021
=========== ===========
Primary earnings per share: $ 0.27 $ 0.28
=========== ===========
</TABLE>
3
<PAGE>
STATEMENT REGARDING COMPUTATION OF
PER SHARE EARNINGS
EXHIBIT 11
(Continued)
<TABLE>
<CAPTION>
Nine Months Ended
-----------------
November 30, November 30,
1996 1995
------------ ------------
<S> <C> <C>
Assuming full dilution:
Earnings:
Net income $ 6,224,l8l $ 6,426,347
=========== ===========
Shares:
Weighted average number of common
shares outstanding 21,528,4l6 21,456,20l
Assumed exercise of options
and warrants l,424,317 2,0l4,l20
----------- -----------
Weighted average number of common
shares for fully diluted calculation 22,952,733 23,470,321
=========== ===========
Fully diluted earnings per share: $ 0.27 $ 0.28
============ ===========
</TABLE>
4
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORM 10-Q
NOVEMBER 30, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 9-MOS
<FISCAL-YEAR-END> FEB-28-1997 FEB-28-1997
<PERIOD-START> SEP-01-1996 MAR-01-1996
<PERIOD-END> NOV-30-1996 NOV-30-1996
<CASH> 27,468,353 0
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