11/06/2012 | Press release

Telular Corporation Reports Fourth Quarter and Fiscal Year 2012 Results

distributed by noodls on 11/06/2012 17:12

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• Telguard revenue increases 24% over prior year period
• Achieved Company record Adjusted EBITDA of $17.8 million for the full year
• Introduces FY 2013 Adjusted EBITDA guidance of $23.5 - $25.5 million, up 32-43% over FY 2012
• Company declares a 9% increase in the regular quarterly dividend to $0.12 per share

CHICAGO, IL USA-Telular Corporation (NASDAQ: WRLS), a global leader in helping businesses use wireless networks for remote monitoring and tracking, today announced financial results for the fourth quarter and fiscal year 2012 ended September 30, 2012. In the fourth quarter of 2012, Telular reported revenue of $23.4 million, including $13.4 million from recurring services, and pre-tax income of $2.9 million. For the full year 2012, Telular reported revenue of $79.8 million, including $46.4 million from recurring services, and pre-tax income of $9.7 million.

Adjusted EBITDA, a non-GAAP financial measure, was $5.5 million for the fourth quarter and $17.8 million for the full year. For further information about Adjusted EBITDA and a reconciliation of this measure to net income in accordance with GAAP, see the last page of this press release.

For the second consecutive year on the anniversary of the initiation of a regular quarterly dividend, the Company's Board of Directors has approved an increase in the dividend, this time to $0.12 per share. This dividend is payable November 30, 2012, to shareholders of record as of the close of business on November 20, 2012. The Company ended fiscal year 2012 with $12.7 million of cash on the balance sheet, up from $11.1 million at the end of last quarter.

Total revenue from the Telguard and TankLink lines of business, representing all of the M2M revenue within the Event Monitoring Segment, increased 23% over the prior year period to $15.3 million in the fourth quarter, and increased 19% to $56.1 million for the full year.

Total Telguard revenue was up 24% year-over-year to $13.1 million in the fourth quarter and up 18% to $48.4 million for the full year. During the quarter, Telular sold approximately 39,300 Telguard units and activated over 35,000 new Telguard subscribers. The total number of Telguard subscribers increased sequentially to 617,500, while average revenue per unit, or ARPU, remained flat at $4.37 for the quarter.

TankLink revenue totaled $2.2 million, including service revenue of $1.1 million, for the fourth quarter, a 19% increase over the prior year period. For the full year, TankLink revenue totaled $7.7 million, including service revenue of $4.1 million, a 21% increase over the prior year.

In the Asset Tracking segment, SkyBitz revenue was $7.9 million, including product revenue of $3.4 million and recurring service revenue of $4.5 million for the fourth quarter. SkyBitz revenue since its acquisition on February 1, 2012, totaled $22.5 million, including product revenue of $10.5 million and recurring service revenue of $12.0 million.

Adjusted EBITDA for Event Monitoring and Asset Tracking was $5.0 million and $1.5 million respectively, excluding corporate expenses of $1.0 million.

For both segments combined, Telular ended the period with nearly 840,000 billable units realizing an ARPU of $5.47. The average selling price, or ASP, for the 50,700 monitoring and tracking hardware units sold during the period was $184.

"We are delighted with the strong revenue growth we achieved in the fourth quarter and for the full year" commented Joe Beatty, president and chief executive officer of Telular Corporation. "During the quarter, we grew our event monitoring service revenues 23% over the prior year period and exceeded the high-end of our Telguard unit sales guidance due to continued strong demand for our new Telguard products for 3G and 4G networks." concluded Mr. Beatty.

"Based on the momentum we are seeing in our business, we are announcing fiscal year 2013 Adjusted EBITDA guidance of $23.5 - $25.5 million, as well as increasing the range of our Telguard sales guidance to 30,000 to 40,000 units each quarter during fiscal year 2013."

Investor Conference Call
Telular's quarterly conference call will be held today at 4:30 p.m. ET. To participate in the teleconference from the United States and Canada dial 877-941-2332 (International dial 480-629-9821). A replay of the call will be available from November 6, 2012 beginning at 6:30 p.m. ET (5:30 p.m. CT) through November 10, 2012 ending at 11:59 p.m. ET (10:59 p.m. CT) by dialing 800-406-7325 in the United States and entering pass code 4572387# or internationally at 303-590-3030 and entering pass code 4572387#. The replay will also be available via webcast from the Company's corporate website at: www.telular.com under "Investor" and the link "Conference Calls."

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