LoJack Corporation Reports Financial Results for the Fourth Quarter and Full-Year 2012

   LoJack Corporation Reports Financial Results for the Fourth Quarter and
                                Full-Year 2012

Highlights

- Full-Year Revenue in Line with Guidance; Adjusted EBITDA at High End of
Guidance

- Fourth-Quarter LoJack U.S. Dealer Channel Unit Volume Up 21%, Nearly
Doubling Auto Industry Growth

- Argentina Import Restrictions Continue to Affect International Business

- New Strategic Alliance with TomTom Adds Recurring Revenue Business Model

- Company Expects Double-Digit Revenue Growth for Full-Year 2013

PR Newswire

CANTON, Mass., Feb. 27, 2013

CANTON, Mass., Feb. 27, 2013 /PRNewswire/ --LoJack Corporation (NASDAQ GS:
LOJN), the company that created the stolen vehicle recovery market, today
reported financial results for the fourth quarter and 12 months ended December
31, 2012.

(Logo: http://photos.prnewswire.com/prnh/20080512/NEM054LOGO )

"Our strategic focus on top-volume accounts generated strong unit volume for
LoJack in the fourth quarter," said Randy L. Ortiz, the Company's Chief
Executive Officer and President. "Unit volume in our U.S. dealer channel
increased 21 percent for the quarter, nearly double the 11 percent increase
for the U.S. retail auto industry as a whole, as we successfully capitalized
on the strong domestic auto market with a refocused sales effort. The growth
in our U.S. dealer channel underscores the powerful value proposition inherent
in our pre-install program. This program is being embraced by our dealer
partners, who recognized that LoJack's outstanding brand, unique integration
with law enforcement and broad distribution network represent key benefits for
consumers."

"We also achieved a milestone in our growth strategy with our new alliance
with TomTom," Ortiz said. "This relationship signals our intention to
reposition the LoJack brand beyond stolen vehicle recovery into the telematics
market, with recurring revenue from a subscription-based,
software-as-a-service business model. We are excited about the resulting
opportunities to market these fleet management solutions and software services
through our commercial and domestic dealer sales force."

For the 12 months ended December 31, 2012, consolidated revenue was $132.5
million, in line with the Company's guidance of $132 million to $134 million.
U.S. revenue increased 5% to $89.2 million from $84.8 million for full-year
2011. International licensee revenue totaled $26.4 million, declining 32% from
$38.8 million in 2011, due primarily to the ongoing trade and import
restrictions in Argentina.

Consolidated revenue for the fourth quarter of 2012 was $33.8 million,
compared with $42.5 million for the fourth quarter of 2011. The decrease
primarily reflected weakness in the Company's International segment related to
trade and import restrictions in Argentina. U.S. revenue declined 9% to $20.8
million from $22.8 million for the same quarter a year earlier. Revenue for
the 2011 period reflected the transfer of extended warranty obligations to a
third party, resulting in recognizing $2.6 million in revenue. International
licensee revenue was $8.7 million in the fourth quarter of 2012 versus $15.2
million in the comparable quarter of 2011.

Consolidated gross profit for the fourth quarter of 2012 was $17.9 million, or
52.8% of revenue, compared with $23.0 million, or 54.1% of revenue, in the
same quarter of 2011. Gross profit for the fourth quarter of 2011 included
$2.3 million of gross margin related to the extended warranty liability
transfer. Operating expensesin the fourthquarterof 2012 were $16.8million,
a decrease of 3.3% from $17.3 million in the fourth quarter of 2011. This
reduction reflected lower G&A and depreciation expenses, partially offset by
the write-down of goodwill in the Company's SafetyNet business, resulting in a
non-cash charge of $472,000 in the fourth quarter of 2012. Outside legal
expenses decreased $288,000, or 35%, in the 2012 fourth quarter, primarily due
to the previously announced settlement agreement in the California wage and
hour class action litigation.

Net income attributable to LoJack Corporation for the fourth quarter of 2012
was $1.5 million, or $0.08 per diluted share, compared with net income of $4.6
million, or $0.26 per diluted share, in the comparable period of 2011. For
the full year, the net loss attributable to LoJack Corporation was $8.4
million, or $0.48 per share, compared with net income of $1.4 million, or
$0.08 per diluted share, in 2011. Results for the full-year 2012 period
included a charge of $6.9 million, or $0.40 per diluted share, related to the
previously announced settlement of the remaining claims in two California
wage-and-hour class action lawsuits against the Company. Adjusted EBITDA for
the fourth quarter of 2012, which excludes the items reflected in Table 1, was
$3.2 million, compared with adjusted EBITDA of $7.7 million in the fourth
quarter of 2011. For the full year, adjusted EBITDA was $6.9 million, at the
high end of the Company's guidance range of $5 to $7 million, compared with
adjusted EBITDA for 2011 of $13.3 million.

Business Outlook
"Looking ahead, we plan to meet or exceed the growth of the U.S. retail
automotive market in 2013 through a number of key initiatives," said Ortiz.
"First, we are becoming a data-driven company to capitalize on the technology
and opportunities that are reshaping the automobile industry. We also are
establishing sales and marketing partnerships with the nation's top-volume
dealer groups. An important component of this effort will be the continued
focus on our successful pre-install programs, which we see as the foundation
for broader and deeper relationships with our dealer partners and consumers.
Our international business is expected to remain variable during the year,
particularly in light of Argentina's trade restrictions."

"In addition, we plan to enrich the LoJack experience for consumers through
additional products and services and generate new revenue streams through
initiatives such as our TomTom alliance," Ortiz said. "Building this business
will require significant investment in the people, technology and systems to
establish our infrastructure and support the rollout of new offerings. As a
result, we expect our fleet management business to be accretive to earnings on
a GAAP basis beginning in the fourth quarter of this year."

For full-year 2013, LoJack expects that consolidated revenue will increase
approximately 10% over 2012, and that Adjusted EBITDA will be 3-7% of
consolidated revenue for the full year.

Fourth-Quarter and Full-Year Financial Results Conference Call
In conjunction with its fourth-quarter and full-year 2012 financial results,
LoJack will host a conference call for investors and analysts at 8:30 a.m. ET
today. To access the webcast of the call, log onto http://www.lojack.com
(click "About Us," "Investor Relations," and then click "Events and
Presentations"). The live call can also be accessed by 877-868-1835
(toll-free) or 914-495-8581 (international) and using 94669955 as the
conference ID. An archive of the webcast will be available on the Company's
website.

About LoJack Corporation
LoJack Corporation, the company that has helped more than nine million people
protect their vehicles in the event of theft over the past 25+ years, today
provides safety, security and protection for an ever-growing range of valuable
assets and people. Leveraging its core strengths, including its well-known
brand, direct integration with law enforcement and dealer distribution
network, LoJack Corporation is expanding into new areas across the continuum
from theft deterrence to recovery. The Company is focusing on creating a new
level of value for its dealer, customer and investor communities by delivering
innovative offerings and multiple technologies in expanding geographies. For
more information, visit www.lojack.com, www.autotheftblog.com,
www.youtube.com/lojack, www.twitter.com/LoJackCorp or
www.Facebook.com/LoJackCorp.

Safe Harbor Regarding Forward Looking Statements
From time to time, information provided by the Company or statements made by
its employees may contain "forward-looking" statements within the meaning of
the Private Securities Litigation Reform Act of 1995 and other securities
laws, which involve risks and uncertainties. You can identify these statements
by use of the words "assumes," "believes," "estimates," "expects," "will,"
"intends," "plans," "projects" and similar expressions that do not relate to
historical matters. Any statements in this news release that are not
statements of historical fact are forward-looking statements, including, but
not limited to, statements concerning (a) the Company's markets, including the
domestic auto market and international markets, (b) conditions in the
automotive industry and market trends, (c) the Company's strategic initiatives
and plans for growth and future operations, including with respect to the
Company's pre-install programs and the "connected car", (d) the Company's
relationships with consumers, dealer groups and other dealer-partners, (e)
the Company' strategic alliance with TomTom, (f) the development of new
products and services, and (g) the Company's future financial performance,
including expected revenue and adjusted EBITDA, the Company's expected growth
relative to the U.S. retail auto market and the expected impact of the
Company's fleet management business on earnings. 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: (i)
the continued and future acceptance of the Company's products and services,
including our pre-install program; (ii) our ability to obtain financing from
lenders; (iii) the outcome of ongoing litigation involving the Company; (iv)
the final resolution of the settlement of the California wage-and-hour class
action lawsuits; (v) the rate of growth in the industries of the Company's
customers; (vi) our relationships with dealers, licensees and partners and the
strength of their business; (vii) the presence of competitors with greater
technical, marketing, and financial resources; (viii) the Company's customers'
ability to access the credit markets, including changes in interest rates;
(ix) the Company's ability to promptly and effectively respond to
technological change to meet evolving customer needs; (x) the Company's
ability to successfully expand its operations, including through the
introduction of new products and services; (xi) conditions in the automotive
retail market andchanges in customer demand and automotive production
schedules; (xii) the Company's ability to achieve the expected benefits of its
strategic alliance with TomTom; (xiii) changes in general economic or
geopolitical conditions, including the European debt crisis; and (xiv) trade
tensions and governmental regulations and restrictions on sales to our
licensees. 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 the Company's Annual Report on Form 10-K for the year
ended December 31, 2011 and the Company's other filings with the Securities
and Exchange Commission.

Readers should not place undue reliance on any forward-looking statements,
which only speak as of the date made. Except as required by law, the Company
undertakes no obligation to release publicly the result of any revision to the
forward-looking statements that may be made to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated events.

Use of Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with generally
accepted accounting principles (GAAP), this press release also contains the
non-GAAP financial measure, adjusted EBITDA. The Company believes that the
inclusion of this non-GAAP financial measure in this press release helps
investors to gain a meaningful understanding of changes in the Company's core
operating results, and can also help investors who wish to make comparisons
between LoJack and other companies on both a GAAP and a non-GAAP basis. LoJack
management uses this non-GAAP measure, in addition to GAAP financial measures,
as the basis for measuring our core operating performance and comparing such
performance to that of prior periods and to the performance of our
competitors. These measures are also used by management to assist with their
financial and operating decision making.

The non-GAAP financial measures included in this press release are not meant
to be considered superior to or a substitute for results of operations
prepared in accordance with GAAP. In addition, the non-GAAP financial measures
included in this press release may be different from, and therefore may not be
comparable to, similar measures used by other companies. Reconciliations of
the non-GAAP financial measures used in this press release to the most
directly comparable GAAP financial measures are set forth in the text of, and
the accompanying tables to, this press release.





Table 1 – Adjusted EBITDA Computation



GAAP to Pro Forma Non-GAAP Reconciliation

(in thousands)


                                        Three Months Ended  Three Months Ended
                                        December 31, 2012   December 31, 2011
                                        $                   $
Net income, as reported                 1,496               4,609
 Adjusted for:
  Provision for income taxes            (383)               1,409
  Other income (expense)                10                  369
Operating income                        1,103               5,649
 Adjusted for:
  Depreciation and amortization         1,204               1,507
  Stock compensation expense            462                 520
  Impairment of intangible assets and   472
  goodwill
Adjusted EBITDA                         3,241               7,676
                                        Year Ended          Year Ended
                                        December 31, 2012   December 31, 2011
                                        $                   $
Net income (loss), as reported          (8,288)             1,388
 Adjusted for:
  Provision for income taxes            472                 2,566
  Other income (expense)                (197)               1,389
Operating income (loss)                 (7,619)             2,565
 Adjusted for:
  Depreciation and amortization         4,711               6,426
  Stock compensation expense            2,441               2,436
  Legal settlement                      6,930               1,869
  Impairment of intangible assets and   472                 —
  goodwill
Adjusted EBITDA                         6,935               13,296





LoJack Corporation and Subsidiaries

Condensed Consolidated Statement of Operations



(in thousands, except share and per share amounts)


                                                     Three Months Ended
                                                     December31,
                                                     2012         2011
                                                     (unaudited)
Revenue                                              $  33,824    $  42,469
Cost of goods sold                                   15,969       19,504
Gross profit                                         17,855       22,965
Costs and expenses:
Product development                                  1,162        1,312
Sales and marketing                                  7,093        6,782
General and administrative                           6,891        7,789
Depreciation and amortization                        1,134        1,433
Impairment of goodwill                               472          -
Total                                                16,752       17,316
Operating income                                     1,103        5,649
Other income (expense):
Interest income                                      25           59
Interest expense                                     (190)        (152)
Other, net                                           175          462
Total                                                10           369
Income before provision for income taxes             1,113        6,018
Provision (benefit) for income taxes                 (383)        1,409
Net income                                           1,496        4,609
Net income attributable to noncontrolling interest
in                                                   34           12
consolidated subsidiary
Net income attributable to LoJack Corporation        $  1,462     $  4,597
Net income per diluted share attributable to
                                                     $  0.08      $  0.26
LoJack Corporation
Weighted average diluted common
                                                     17,824,910   17,855,201
shares outstanding





LoJack Corporation and Subsidiaries

Condensed Consolidated Statement of Operations



(in thousands, except share and per share amounts)


                                                      Full Year Ended
                                                      December31,
                                                      2012         2011
                                                      (unaudited)
Revenue                                               $  132,528   $  140,821
Cost of goods sold                                    61,358       67,932
Gross profit                                          71,170       72,889
Costs and expenses:
Product development                                   5,410        5,318
Sales and marketing                                   29,018       26,880
General and administrative                            32,546       30,189
Legal settlement                                      6,930        1,869
Depreciation and amortization                         4,413        6,068
Impairment of goodwill                                472          —
Total                                                 78,789       70,324
Operating income (loss)                               (7,619)      2,565
Other income (expense):
Interest income                                       141          1,005
Interest expense                                      (730)        (638)
Other, net                                            392          1,022
Total                                                 (197)        1,389
Income (loss) before provision for income taxes       (7,816)      3,954
Provision for income taxes                            472          2,566
Net income (loss)                                     (8,288)      1,388
Net income (loss) attributable to noncontrolling
interest in                                           95           (41)
consolidated subsidiary
Net income (loss) attributable to LoJack Corporation  $  (8,383)   $  1,429
Net income (loss) per diluted share attributable to
                                                      $  (0.48)    $  0.08
LoJack Corporation
Weighted average diluted common
                                                      17,515,903   17,967,394
shares outstanding





LoJack Corporation and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands)


                                                    December 31,  December 31,
                                                    2012          2011
                                                    (unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents                           $  48,592     $  49,645
Restricted cash                                     225           225
Marketable securities at fair value                 1,877         1,778
Accounts receivable, net                            20,037        28,492
Inventories                                         7,123         6,628
Prepaid and other expenses                          2,917         3,016
Prepaid and receivable income taxes                 1,319         429
Deferred income taxes                               586           504
Total current assets                                82,676        90,717
PROPERTY AND EQUIPMENT                              11,686        13,426
DEFERRED INCOME TAXES                               145           124
INTANGIBLE ASSETS—NET                               100           110
GOODWILL                                            1,245         1,717
OTHER ASSETS—NET                                    6,076         8,189
TOTAL ASSETS                                        $  101,928    $  114,283
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Short term debt                                     $  274        $  274
Accounts payable                                    5,979         6,222
Accrued and other liabilities                       15,827        12,107
Current portion of deferred revenue                 13,274        19,007
Accrued compensation                                3,290         4,211
Total current liabilities                           38,644        41,821
LONG TERM DEBT                                      13,820        11,013
DEFERRED REVENUE                                    13,395        19,430
DEFERRED INCOME TAXES                               586           313
OTHER ACCRUED LIABILITIES                           3,994         3,684
ACCRUED COMPENSATION                                1,243         1,241
Total liabilities                                   71,682        77,502
COMMITMENTS AND CONTINGENT LIABILITIES
EQUITY:
Preferred stock—$.01 par value; authorized,         —             —
10,000,000 shares
Common stock—$.01 par value; authorized, 35,000,000
shares; issued and outstanding 18,187,703 at        182           181
December 31, 2012 and 18,101,003 at December 31,
2011
Additional paid-in capital                          23,261        21,265
Accumulated other comprehensive income              6,191         6,435
Retained earnings                                   737           9,120
Total LoJack Corporation equity                     30,371        37,001
Noncontrolling interest in subsidiary               (125)         (220)
Total equity                                        30,246        36,781
TOTAL LIABILITIES AND EQUITY                        $  101,928    $  114,283

CONTACTS:
Donald R. Peck
LoJack Corporation
(781) 302-4200
David Calusdian
Sharon Merrill Associates
(617) 542-5300

SOURCE LoJack Corporation

Website: http://www.lojack.com