Wednesday, mobile asset tracking technology provider LoJack Corp. (LOJN), reported a steep decline in the fourth-quarter profit from the year-ago period primarily due to other expenses. The company also issued its fiscal year 2009 earnings guidance.
The Westwood, Massachusetts-based company's fourth-quarter net income declined to $0.2 million or $0.01 per share from $2.3 million or $0.12 per share in the corresponding quarter last year.
Excluding items, pro forma net income for the quarter decreased to $2.20 million or $0.12 per share from $4.0 million or $0.21 per share in the corresponding period last year. On average, four analysts polled by Thomson Reuters estimated earnings of $0.11 per share for the quarter. Analysts' estimates typically exclude special items.
The company reported a fourth quarter income tax benefit of $0.5 million for the quarter, compared to an income tax provision of $1.8 million in the similar period last year.
Other expenses for the quarter were $3.7 million compared to other income of $0.5 million in the corresponding period of fiscal year 2007.
Total other expenses for the fourth quarter of fiscal year 2008 were $3.5 million, compared to total other income of $0.6 million in the prior-year similar period.
Revenue for the quarter decreased 13% to $48.2 million from $55.3 million in the comparable period last year. Analysts estimated revenue of $48.50 million for the quarter.
Richard Riley, Chairman of the Board said, "In the fourth quarter our international business delivered an increase of 24% in revenue based on a 28% increase in unit volume over the prior year. Our strong international performance in the second half of the year was not enough to fully offset the decline in our domestic business, which was significantly impacted throughout 2008 by the deteriorating economic conditions. The decline in the domestic auto market worsened in each sequential quarter in 2008, with the fourth quarter reflecting the lowest vehicle sales volume since 1981. Domestic auto sales in 2008 dropped 18% to approximately 13.2 million vehicles from approximately 16 million vehicles in 2007."
In February of 2008, LoJack Board of Directors authorized the repurchase of 1,000,000 shares. The Board also authorized additional stock repurchases up to 2,000,000 for a total repurchase authorization of 3,000,000 shares. During the fourth quarter of 2008, the company did not repurchase any shares. During 2008 the company repurchased 1,318,222 shares at an average price of approximately $10.83 per share.
For the fiscal year 2008, the company reported a net loss of $32.5 million or $1.88 per share, compared to a profit of $21.4 million or $1.13 per share in the corresponding period last year. Excluding items, pro forma net income for full year 2008 declined to $8.9 million or $0.51 per share from $21 million or $1.12 per share in the fiscal year 2007.
The company reported impairment of intangible assets and goodwill charges of $38.1 million for the year, compared to $3.2 million in 2007.
Revenue for the full year 2008 declined 11% to 198.7 million from $222.7 million in the similar period last year.
The company expects fiscal year 2009 earnings to be between $0.37 and $0.42 per share with net income in the range of $6 million to $7.5 million. Analysts currently expect earnings of $0.17 per share, with estimates ranging from a loss of $0.12 per share to earnings of $0.37 per share for the fiscal year 2009.
LoJack also anticipates fiscal year 2009 revenue in the range of $180 million to $186 million. Analysts currently estimate revenue of $177.58 million for the full year 2009.
LoJack is currently trading at $4.40, up $0.63 or 16.71%, on a volume of 88,947 shares on the Nasdaq.
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