<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, 1997
-----------------
___TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURTIES 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)
781-326-4700
------------
(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 (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 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 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court. YES___ NO____
APPLICABLE ONLY TO CORPORATE ISSUERS:
There were 18,793,201 shares issued and outstanding of $.01 par value, common
stock, as of January 14, 1998.
<PAGE>
LOJACK CORPORATION AND SUBSIDIARIES
INDEX
Part I. Financial Information PAGE
----
Item 1.Financial Statements
Consolidated Balance Sheets, November 30, 1997
and February 28, 1997.................................. 1
Consolidated Statements of Operations:
Three Months Ended November 30, 1997 and 1996................ 2
Nine Months Ended November 30, 1997 and 1996................... 3
Consolidated Statements of Cash Flows:
Nine Months Ended November 30, 1997 and 1996................ 4
Notes to Consolidated Financial Statements................... 5
Item 2. Management's Discussion and Analysis of Results
of Operations and Financial Condition............................. 6
Part II. Other Information............................................... 10
Item 6. Exhibits and Reports on Form 8-K
Signatures..................................................... 11
Exhibit 11..................................................... 12
Exhibit 27..................................................... 14
<PAGE>
LOJACK CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
NOVEMBER 30, FEBRUARY 28,
1997 1997
(Unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and equivalents.................................................. $ 11,761,296 $ 14,671,700
Short-term investments................................................ 1,600,000 1,600,000
Accounts receivable - net............................................. 8,534,730 7,430,491
Inventories........................................................... 5,082,929 3,745,473
Prepaid expenses, deposits and other.................................. 1,533,620 153,812
Deferred income taxes................................................. 1,592,797 1,525,010
------------ ------------
Total current assets............................................... 30,105,372 29,126,486
PROPERTY AND EQUIPMENT - Net.......................................... 9,576,647 8,722,950
OTHER ASSETS - Net.................................................... 287,639 315,707
------------ ------------
TOTAL................................................................. $ 39,969,658 $ 38,165,143
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of capital lease obligations.......................... $ 979,920 $ 693,553
Accounts payable...................................................... 3,352,039 2,842,186
Accrued and other liabilities......................................... 910,959 847,984
Deposits.............................................................. 269,886 749,020
Current portion of deferred revenue.................................. 1,119,953 985,301
Accrued compensation.................................................. 694,333 837,953
Accrued income taxes.................................................. 1,849,781 287,473
------------ ------------
Total current liabilities........................................ 9,176,871 7,243,470
DEFERRED REVENUE...................................................... 2,608,509 2,149,524
DEFERRED INCOME TAXES................................................. 661,259 770,143
CAPITAL LEASE OBLIGATIONS............................................. 597,027 781,817
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Common stock - $.01 par value; authorized,
35,000,000 shares; issued, 22,172,001 and 21,985,091 at
November 30, 1997 and February 28, 1997, respectively............... 221,720 219,851
Additional paid-in-capital............................................ 58,398,757 57,539,986
Retained earnings (deficit)........................................... 3,353,231 (4,335,990)
Treasury stock, at cost, 3,343,500 and 2,569,500 shares of common
stock at November 30, 1997 and February 28, 1997, respectively...... (35,047,716) (26,203,658)
------------ ------------
Total stockholders' equity...................................... 26,925,992 27,220,189
------------ ------------
TOTAL................................................................. $ 39,969,658 $ 38,165,143
============ ============
</TABLE>
See notes to consolidated financial statements.
<PAGE>
LOJACK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
THREE MONTHS ENDED
(Unaudited)
NOVEMBER 30, NOVEMBER 30,
1997 1996
<S> <C> <C>
Revenues........................................ $ 19,310,762 $ 15,131,688
Cost of goods sold.............................. 8,006,590 6,730,474
------------ ------------
Gross margin.................................... 11,304,172 8,401,214
------------ ------------
Costs and expenses:
Systems costs and research and
development.................................. 271,976 393,211
Sales and marketing............................. 4,156,897 3,464,731
General and administrative...................... 1,810,078 1,384,513
Depreciation and amortization................... 443,752 382,772
------------ ------------
Total........................................... 6,682,703 5,625,227
------------ ------------
Operating income................................ 4,621,469 2,775,987
------------ ------------
Interest income................................. 189,729 399,282
Interest expense................................ (51,244) (41,326)
Other income.................................... 15,136 24,612
------------ ------------
Total........................................... 153,621 382,568
------------ ------------
Income before provision
for income taxes............................... 4,775,090 3,158,555
Provision for income taxes...................... 1,864,000 1,231,000
------------ ------------
Net income...................................... $ 2,911,090 $ 1,927,555
============ ============
Earnings per share:............................. $ 0.14 $ 0.09
============ ============
Common shares and equivalents................... 20,793,560 22,485,019
============ ============
</TABLE>
See notes to consolidated financial statements.
<PAGE>
LOJACK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
NINE MONTHS ENDED
(Unaudited)
NOVEMBER 30, NOVEMBER 30,
1997 1996
<S> <C> <C>
Revenues .......................................... $ 56,613,762 $ 46,046,569
Cost of goods sold ................................ 24,851,298 20,713,845
------------ ------------
Gross margin ...................................... 31,762,464 25,332,724
------------ ------------
Costs and expenses:
Systems costs and research and
development .................................... 869,972 922,593
Sales and marketing ............................... 12,334,756 9,938,465
General and administrative ........................ 5,271,824 4,375,383
Depreciation and amortization...................... 1,247,845 1,093,455
------------ ------------
Total ............................................. 19,724,397 16,329,896
------------ ------------
Operating income .................................. 12,038,067 9,002,828
------------ ------------
Interest income ................................... 618,953 1,271,601
Interest expense .................................. (140,324) (108,252)
Other income ...................................... 82,522 35,004
------------ ------------
Total ............................................. 561,151 1,198,353
------------ ------------
Income before provision
for income taxes ................................. 12,599,218 10,201,181
Provision for income taxes ........................ 4,910,000 3,977,000
------------ ------------
Net income ........................................ $ 7,689,218 $ 6,224,181
============ ============
Earnings per share: ............................... $ 0.37 $ 0.27
============ ============
Common shares and equivalents...................... 20,672,721 22,952,733
============ ============
</TABLE>
See notes to consolidated financial statements.
<PAGE>
LOJACK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
NINE MONTHS ENDED
NOVEMBER 30, NOVEMBER 30,
1997 1996
------------------ -----------------
(Unaudited) (Unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income ............................................... $ 7,689,218 $ 6,224,181
Adjustments to reconcile net
income to net cash provided by
operating activities:
Depreciation and
amortization ...................................... 1,941,590 1,741,100
Deferred taxes ...................................... (176,671) 3,315,384
Increase (decrease) in
cash from changes in
assets and liabilities:
Accounts receivable -net ............................ (1,104,239) (1,287,723)
Inventories ......................................... (1,337,456) (1,122,935)
Prepaid expenses, deposits and other................. (1,379,808) (185,844)
Other assets ........................................ (73,120) (12,522)
Accounts payable .................................... 509,853 494,453
Accrued and other
liabilities ....................................... 1,596,169 28,999
------------------ -----------------
Total adjustments ........................................ (23,682) 2,970,912
------------------ -----------------
Net cash provided by operating
activities .......................................... 7,665,536 9,195,093
------------------ -----------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Expenditures for property
and equipment -net .................................. (1,684,911) (1,317,451)
------------------ -----------------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Issuance of common stock ................................. 860,640 402,292
Repayment of debt ........................................ (907,611) (763,261)
Repurchase of common stock ............................... (8,844,058) (11,678,983)
------------------ -----------------
Net cash used for
financing activities ................................ (8,891,029) (12,039,952)
------------------ -----------------
(DECREASE) INCREASE IN CASH
AND EQUIVALENTS ..................................... (2,910,404) (4,162,310)
BEGINNING CASH AND EQUIVALENTS ........................... 14,671,700 31,630,663
------------------ -----------------
ENDING CASH AND EQUIVALENTS .............................. $ 11,761,296 $ 27,468,353
================== =================
</TABLE>
See notes to consolidated financial statements.
<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
1997 amounts have been reclassified to conform with the fiscal 1998
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,
1997 and 1996 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, 1997 and 1996
was $140,000 and $104,000 respectively. Cash paid for income taxes for
the nine months ended November 30, 1997 and 1996 was $3,524,000 and $837,000
respectively. For the nine months ended November 30, 1997 and 1996 the
Company incurred capital lease obligations of $1,009,000 and $535,000,
respectively.
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, 1997 and 1996.
In February 1997, the Financial Accounting Standards Board ("FASB") issued
SFAS No. 128, "Earnings per Share" which will become effective during the
fourth quarter of fiscal 1998. SFAS No. 128 replaces the presentation of
primary earnings per share with basic earnings per share, which excludes
dilution, and requires the dual presentation of basic and diluted earnings
per share. Had the Company used SFAS No. 128, the Company's basic earnings
per share on a proforma basis would have been $.15 and $.09 for the three
months ended November 30, 1997 and 1996, respectively, and $.40 and $.29 for
the nine months ended November 30, 1997 and 1996, respectively. Diluted
earnings per share would have been the same as the earnings per share
presented in the accompanying consolidated financial statements.
<PAGE>
Management's Discussion and Analysis of Financial Condition and Results of
Operations
Results of Operations
Three months and nine months November 30, 1997 ("fiscal 1998") versus three and
nine months ended November 30, 1996 ("fiscal 1997")
Revenues for the three and nine months ending November 30, 1997 increased by
$4,179,000 and $10,567,000, or 28% and 23%, respectively, to $19,311,000 and
$56,614,000 from $15,132,000 and $46,047,000 for the same periods a year
earlier. Revenues from domestic markets increased by $2,604,000, or 20%, and
$6,193,000, or 15%, for the three and nine months ended November 30, 1997,
respectively. International revenues increased by $1,575,000, or 69%, and
$4,374,000 or 73%, for the three months and nine months ended November 30, 1997,
respectively. The increase in domestic revenues resulted from an increase in
revenues from existing markets of $1,268,000 and $2,716,000 for the three and
nine months ended November 30,1997, respectively. Revenues from existing markets
increased as the result of increases in the overall sale of LoJack Units
partially offset by decreases in penetrations of optional lower margin
automobile security products.. The additional increase in domestic revenues of
$1,336,000 and $3,477,000, respectively, was generated from the start-up of
markets in Texas, Maryland, and Pennsylvania ("New Markets") which began
operations during the end of fiscal 1997 and first quarter of fiscal 1998. The
number of LoJack Units sold in all domestic markets increased 25% in the third
quarter of fiscal 1998 compared with a year earlier. This growth in unit sales
was primarily through LoJack's dealer distribution network, causing the
percentage of revenues from higher margin direct-to-consumer sales to decrease.
Thus, the domestic revenue growth of 20% was not proportionate to the rate of
increase in unit sales of 25%. The increase in international revenues for the
three months and nine months ended November 30, 1997 resulted from an increase
of $522,000, or 38% and $3,737,000,or 121%, in the sale of the international
version of the LoJack Unit and related products to licensees in several
international markets as well as an increase of $1,053,000 and $637,000
respectively, as compared to the same period a year earlier in non-recurring
license fees and initial orders of system components from new licensees.
Cost of goods sold as a percentage of revenues decreased to 41% and 44% for the
three and nine months ended November 30, 1997, respectively, from 44% and 45%,
for the same periods a year earlier, respectively. Domestically, cost of goods
sold for the three and nine months ended November 30, 1997 decreased to 44% of
related revenues from 46% and 45% respectively, for the same periods a year
earlier. The resultant increase in domestic gross margins is the result
primarily of overall installation efficiences brought about by our increased
revenues, and the absence of regional promotions on lower margin, optional
security products, offset partially by the start-up costs of the New Markets.
International cost of goods sold decreased to 32% and 42% of related revenues
for the three and nine months ended November 30, 1997, respectively, from 38%
and 44%, respectively, for the same periods a year earlier. International cost
of goods sold percentages fluctuated as the result of the mix in the revenues
earned during the respective periods between higher margin license fee and
system component revenue and lower margin international LoJack Unit revenues.
Systems costs and research and development expense decreased by $121,000 and
$53,000, respectively, for the three and nine months ended November 30, 1997 to
$272,000 and $870,000, respectively, from $393,000 and $923,000, respectively,
for the same periods a year earlier. These decreases were primarily the result
of decreases in research and development expense offset partially by increases
in system operating costs related to the start-up of the New Markets, and
certain system maintenance costs in existing markets.
8
<PAGE>
Marketing expense increased by $692,000 and $2,396,000 for the three and nine
months ended November 30, 1997, respectively, to $4,157,000 and $12,335,000,
respectively, from $3,465,000 and $9,939,000 for the same respective periods a
year earlier. The increase in marketing expense was related primarily to an
increase in spending on advertising, personnel and other costs related to the
start-up of the New Markets, as well as an increase in variable marketing
expenses related to the increase in existing market revenues.
General and administrative expense increased by $425,000 and $896,000 for the
three and nine months ended November 30, 1997 to $1,810,000 and $5,272,000 from
$1,385,000 and $4,376,000 for the same periods a year ago. This increase is
related primarily to increases in general and administrative salaries, rent, and
telephone expense related to the start-up of the New Markets.
Depreciation expense increased by $61,000 and $154,000 for the three and nine
months ended November 30, 1997, respectively to $444,000 and $1,248,000,
respectively, from $383,000 and $1,094,000, respectively, for the same periods a
year earlier. This increase reflects depreciation expense on the LoJack System
and related equipment in the New Markets, and on additions of certain computer
equipment and software in the existing markets, offset by decreases resulting
from equipment in certain older markets becoming fully depreciated.
Interest income decreased by $209,000 and $653,000 for the three and nine months
ended November 30, 1997, respectively to $190,000 and $619,000, respectively,
from $399,000 and $1,272,000, respectively, for the same periods a year earlier
primarily as the result of the decrease in cash balances available for
investment and lower interest rates.
Interest expense increased by $10,000 and $32,000 for the three and nine months
ended November 30, 1997 to $51,000 and $140,000, respectively, from $41,000 and
$108,000, respectively, for the same periods a year earlier reflecting an
increase in interest expense on capital leases for installation vehicles
primarily related to the New Markets.
Provision for income taxes remained constant at 39% of income before provision
for income taxes for the three and six months ended November 30, 1997 resulting
in provisions of $1,864,000 and $4,910,000, respectively, compared to $1,231,000
and $3,977,000, respectively, for the same periods a year ago.
As a result of the foregoing, net income for the three and nine months ended
November 30, 1997 was $2,911,000 and $7,689,000, respectively, increases of
$984,000 and $1,465,000, respectively, over net income for the same periods a
year earlier of $1,927,000 and $6,224,000, respectively.
Liquidity and Capital Resources
In the first nine months of fiscal 1998 cash and equivalents decreased by
$2,910,000. Cash flow from operations was $7,666,000, cash flow used for
investing activities was $1,685,000 and cash flow used for financing purposes
was $8,891,000. Cash flow from operations included net income of $7,689,000,
non-cash additions to net income of $1,765,000, and decreases from changes in
assets and liabilities of $1,788,000. The decrease in cash flow from changes in
assets and liabilities includes an increase in accrued and other liabilities of
$1,596,000 primarily as the result of an increase in certain accrued federal and
state income taxes of $1,562,000 an increase in deferred revenue of $594,000 and
an increase in other liabilities of $63,000, partially offset by decreases in
deposits of $479,000, and accrued compensation of $144,000. An increase in
accounts receivable of $1,104,000 was the result of an increase in domestic
receivables of $1,616,000 reflecting an increase in domestic revenues in the
third quarter of fiscal 1998, due in part to revenues generated from the New
Markets, as compared with the fourth quarter of fiscal
9
<PAGE>
1997 offset by improved domestic collections, as well as a decrease in
international receivables of $512,000 resulting from the timing of certain
international equipment and product shipments and collections. An increase in
prepaid expenses, deposits, and other of $1,380,000 relates primarily to a
deposit with a supplier for long-lead time parts for international inventory
purchases. An increase in inventory of $1,337,000 was primarily related to
certain international purchase orders which are expected to be shipped during
the fourth quarter of fiscal 1998. The increase in accounts payable of $510,000
related to the overall increase in business volume. Other assets-long term
increased by $73,120 as the result of various deposits with vendors and other
asset additions.
Expenditures for property and equipment (exclusive of additions under capital
leases) for the nine months ended November 30, 1997 were $ 1,685,000. The
increase was primarily due to the purchase of LoJack system components and
equipment for the New Markets as well as expenditures related to an upgrade of
the Company's computer systems.
As of November 30, 1997 the Company had working capital of $20,928,501. The
Company believes that it can meet its anticipated capital and operating
requirements for the remainder of fiscal 1998 using existing working capital,
cash flow from operations, and if necessary, the Company's $7,500,000 line of
credit, which was unused as of November 30, 1997.
The Company presently is pursuing expansion efforts in several additional
domestic jurisdictions. The Company expects that, pending receipt of necessary
governmental approvals, certain potential expansion markets may become
operational during fiscal 1998. The Company plans to fund these expansions as
well as other capital expenditures during fiscal 1998 using existing working
capital, cash flow from operations, and/or the line of credit. The Company
expects that it will spend approximately $750,000 on capital expenditures
(excluding assets purchased under capital lease agreements) during the remainder
of fiscal 1998.
The Company repurchased 774,000 shares of its common stock during the nine
months ended November 30, 1997 for $8,844,000. Total cumulative common shares
repurchased under the Company's stock repurchase program were 3,343,500 as of
November 30, 1997. The Company intends to continue to repurchase shares of its
common stock in open market transactions, from time to time, depending upon the
price of the stock. As of November 30, 1997 there are 1,856,500 additional
common shares authorized for repurchase under the Company's existing repurchase
program.
The Company's expansion to 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.
The Company is also continuing to explore possible investment opportunities,
including , but not limited to, possible acquisitions of, or investments in,
other companies.
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
characteristics and growth of the Company's objectives and plans for future
operations and the Company's expected liquidity and capital resources). Such
forward-looking
10
<PAGE>
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.
11
<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 6a. Exhibit 11. Statement Regarding Computation of Per Share Earnings
Exhibit 27. Financial Data Schedule
b. No reports on Form 8-K were filed during the quarter for which this
report is filed.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
January 14, 1998 /s/ C. Michael Daley
- ------------------ --------------------
Date C. Michael Daley
Chief Executive Officer
January 14, 1998 /s/ Joseph F. Abely
- ------------------ --------------------
Date Joseph. F. Abely
President and Chief
Operating Officer
(Principal Financial Officer)
<PAGE>
EXHIBIT 11
STATEMENT REGARDING COMPUTATION OF
PER SHARE EARNINGS
<TABLE>
<CAPTION>
PRIMARY CALCULATION: THREE MONTHS ENDED
NOVEMBER 30, NOVEMBER 30,
1997 1996
---------------- -------------------
<S> <C> <C>
Net Income $ 2,911,090 $ 1,927,555
================ ===================
Shares:
Weighted average number of common
shares outstanding 19,016,550 21,145,371
Assumed exercise of options 1,774,560 1,339,648
Dilutive effect of exercised options 2,450
---------------- -------------------
Weighted average number of common
shares for primary calculation 20,793,560 22,485,019
================ ===================
Primary earnings per share $ 0.14 $ 0.09
================ ===================
FULLY DILUTED CALCULATION
Net Income $ 2,911,090 $ 1,927,555
================ ===================
Shares:
Weighted average number of common
shares outstanding 19,016,550 21,145,371
Assumed exercise of options 1,774,560 1,339,648
Dilutive effect of exercised options 2,450
---------------- -------------------
Weighted average number of common
shares for fully diluted calculation 20,793,560 22,485,019
================ ===================
Fully diluted earnings per share $ 0.14 $ 0.09
================ ===================
</TABLE>
<PAGE>
EXHIBIT 11
STATEMENT REGARDING COMPUTATION OF
PER SHARE EARNINGS
<TABLE>
<CAPTION>
PRIMARY CALCULATION: NINE MONTHS ENDED
NOVEMBER 30, NOVEMBER 30,
1997 1996
--------------------- ---------------------
<S> <C> <C>
Net Income $ 7,689,218 $ 6,224,181
===================== =====================
Shares:
Weighted average number of common
shares outstanding 19,030,240 21,528,416
Assumed exercise of options 1,612,819 1,424,317
Dilutive effect of exercised options 29,662
--------------------- ---------------------
Weighted average number of common
shares for primary calculation 20,672,721 22,952,733
===================== =====================
Primary earnings per share $ 0.37 $ 0.27
===================== =====================
FULLY DILUTED CALCULATION
Net Income $ 7,689,218 $ 6,224,181
===================== =====================
Shares:
Weighted average number of common
shares outstanding 19,030,240 21,528,416
Assumed exercise of options 1,774,560 1,424,317
Dilutive effect of exercised options 2,450
--------------------- ---------------------
Weighted average number of common
shares for fully diluted calculation 20,807,250 22,952,733
===================== =====================
Fully diluted earnings per share $ 0.37 $ 0.27
===================== =====================
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM LOJACK
CORPORATION FORM 10Q NOVEMBER 30, 1997 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-28-1998 FEB-28-1998
<PERIOD-START> SEP-01-1997 MAR-01-1997
<PERIOD-END> NOV-30-1997 NOV-30-1997
<CASH> 11,761,296 0
<SECURITIES> 1,600,000 0
<RECEIVABLES> 9,257,245 0
<ALLOWANCES> 722,515 0
<INVENTORY> 5,082,929 0
<CURRENT-ASSETS> 30,105,372 0
<PP&E> 25,326,127 0
<DEPRECIATION> 15,749,480 0
<TOTAL-ASSETS> 39,969,658 0
<CURRENT-LIABILITIES> 9,176,871 0
<BONDS> 0 0
0 0
0 0
<COMMON> 221,720 0
<OTHER-SE> 26,704,272 0
<TOTAL-LIABILITY-AND-EQUITY> 39,969,658 0
<SALES> 17,620,762 53,912,620
<TOTAL-REVENUES> 19,310,762 56,613,762
<CGS> 8,006,590 24,851,298
<TOTAL-COSTS> 8,006,590 24,851,298
<OTHER-EXPENSES> 6,682,703 19,724,397
<LOSS-PROVISION> 73,884 134,152
<INTEREST-EXPENSE> 51,244 140,324
<INCOME-PRETAX> 4,775,090 12,599,218
<INCOME-TAX> 1,864,000 4,910,000
<INCOME-CONTINUING> 2,911,090 7,689,218
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 2,911,090 7,689,218
<EPS-PRIMARY> .14 .37
<EPS-DILUTED> .14 .37
</TABLE>
