CalAmp Corp. (NASDAQ:CAMP) Q4 2018 Earnings Conference Call - Final Transcript

Apr 26, 2018 • 04:30 pm ET


CalAmp Corp. (NASDAQ:CAMP) Q4 2018 Earnings Conference Call - Final Transcript


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Welcome to the CalAmp Fourth Quarter and Full-Year Results Earnings Release Conference Call. At this time, all participants are in a listen-only mode. At the conclusion of our prepared remarks, we will conduct a question-and-answer session. As a reminder, this conference is being recorded. I would now like to introduce your host for today's conference, Nicole Noutsios, Investor Relations for CalAmp. Nicole, you may begin your conference.

Nicole Noutsios

Thank you, operator. Good afternoon, and welcome to CalAmp's fourth quarter and fiscal year 2018 financial results conference call. With us today are CalAmp's President and Chief Executive Officer, Michael Burdiek; and Chief Financial Officer, Kurt Binder. Before we begin, let me remind you that this call may contain forward-looking statements. While these forward-looking statements reflect CalAmp's best current judgment, they are subject to risks and uncertainties that could cause actual results to materially differ from those implied by these forward-looking projections. These risk factors are discussed in our periodic SEC filings and in the earnings release issued today, which are available on our website. We undertake no obligation to revise or update publicly any forward-looking statements to reflect future events or circumstances.

Michael Burdiek will begin today's call with a review of the Company's financial and operational highlights. Kurt Binder will then provide additional details about the Company's financial results and outlook. This will be followed by a question-and-answer session. With that, it's now my pleasure to turn the call over to CalAmp's President and CEO, Michael Burdiek.

Michael J. Burdiek

Thank you for joining our call today. We achieved several transformative business and operational milestones during fiscal 2018, realizing record revenues and delivering strong bottom line results. Our consolidated revenues for the fourth quarter reached a record level of $94.4 million, up 10% year-over-year. Along with our strong revenue growth, we generated $59 million of free cash flow in fiscal 2018, which is up an exceptional 228% year-over-year.

On the business and operational fronts in fiscal 2018, we realigned our global sales organization and armed our team with a comprehensive suite of SaaS solutions. These changes contributed to our successes during the year with several global enterprise customer wins, including the largest SaaS contract award in the Company's history. We saw impressive growth with Caterpillar and ramped shipments with one new global heavy equipment customer. There's clear evidence that our investments in our sales organization and go-to-market initiatives are driving successful strategic partnerships and channel activity.

Additionally, we continue to rapidly innovate and expand our product portfolio, especially in the connected vehicle marketplace with our next generation LoJack LotSmart advanced dealer inventory management system and LoJack SureDrive sell-through consumer telematics application. Overall, we are realizing the benefits of our investments and have a strong foundation to drive increased recurring revenue and long-term profitable growth. Our Telematics Systems business had a strong quarter with revenues of $78.3 million, up 10% year-over-year. MRM Telematics products revenue was again a strong contributor with growth of 29% year-over-year, driven by broad-based demand across our diversified customer base.

During our