LoJack Corporation reported financial results for the three and nine months ended September 30, 2015. Revenue was $32.6 million for the third quarter of 2015, compared with $32.7 million for the same period in 2014.
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This includes a decrease of $1.3 million from Canada due to the Company's decision to exit that market.
Net income was $1.5 million, or $0.08 per diluted share, compared with a net loss of $8.2 million, or $0.45 per share, for the third quarter of 2014.
Consolidated gross profit was $17.8 million, or 54.4% of revenue, in the third quarter of 2015, compared with $10.1 million, or 30.9% of revenue, for the third quarter of 2014. The 2014 period included certain items, listed in Table 2 below, which did not recur in the 2015 period. Consolidated non-GAAP gross profit was 54.5% of revenue for the third quarter of 2015, versus 51.0% for the same period of 2014.
Operating expenses decreased $3.4 million, or 18.2%, to $15.1 million in the third quarter of 2015 from $18.4 million in the same period of 2014, reflecting the benefit of cost-savings measures implemented by the Company during the first half of 2015.
Earnings before interest, taxes, depreciation and amortization (EBITDA) for the three months ended September 30, 2015 were $3.5 million, an improvement of $11.2 million from a loss of $7.7 million for the comparable period of 2014.
Adjusted EBITDA, excluding the items listed in Table 1 below, was approximately $4.0 million for the third quarter of 2015 compared with Adjusted EBITDA of $0.1 million for the same period last year.
Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are set forth in Tables 1 and 2 of this press release.
Cash and cash equivalents at September 30, 2015 were $18.7 million, which represents positive operating cash flows of $7.1 million and debt repayment of $3.0 million in the first nine months of 2015. Working capital was $21.9 million as of September 30, 2015. Primary sources of cash in the quarter included receivables collections and a reduction of overall working capital needs. The Company currently anticipates being cash flow positive in the fourth quarter and into 2016. ■