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LoJack Corp. Reports Operating Results (10-K)

March 14, 2011 | About:

LoJack Corp. (NASDAQ:LOJN) filed Annual Report for the period ended 2010-12-31.

Lojack Corp. has a market cap of $96.97 million; its shares were traded at around $5.3 with and P/S ratio of 0.66.

Highlight of Business Operations:

The aggregate market value of our common stock, $.01 par value held by non-affiliates was approximately $61,343,000 as of June 30, 2010. The aggregate market value of common stock indicated is based upon the last traded price of the common stock as reported by NASDAQ on June 30, 2010.

At December 31, 2010, we held a 12.5% equity investment, with a carrying value of $1,541,000, in our Mexican licensee, a 5.5% equity investment, with a carrying value of $314,000, in our French licensee, and a 17.5% equity investment with a carrying value of $496,000, in our Benelux licensee. In addition, we hold less than a 10% equity interest in our licensees in Argentina and Hong Kong, for which we have no carrying value in our financial statements.

We have commercial operations in Italy through LoJack Italia. Since 2005, we have invested approximately $23,000,000 (comprised of LoJack network build out and operating losses) in LoJack Italia. We estimate this ownership will require an additional investment of approximately $1,000,000 to $2,000,000 over the next two to three years. Based on our experience with our current international licensees, we believe that LoJack Italia will generate long-term profitability and value after the investment period.

According to the most recent Federal Bureau of Investigation Uniform Crime Report for 2009, a motor vehicle is stolen in the United States every 40 seconds. In 2009, total motor vehicle theft in the United States was approximately 800,000 vehicles, with an estimated value of $5.2 billion. Most auto theft is carried out by sophisticated thieves, rather than amateur thieves. Thieves typically steal vehicles because of the profit potential of the vehicles components on the black market. Also, in the United States, the national recovery rate for stolen vehicles has declined from a high in 1999 of 67% to 57% in 2009. The National Insurance Crime Bureau also reported that motorcycle theft totaled 56,093 stolen motorcycles in the United States in 2009. This represents a loss of over $370 million to motorcycle owners and the insurance industry.

According to Statistics Canada, a federally commissioned statistics bureau, more than 108,000 vehicles were stolen in Canada during 2009. Such crimes cost auto insurers and their policyholders approximately CAD$419 million in 2009. In addition, when considering emergency response, court, policing, legal and out-of-pocket expenses, such as deductibles, the annual cost of auto theft in Canada approached $1 billion.

In the cargo security market, it is estimated that $10 to $30 billion in merchandise is stolen from cargo ships, trucks, ports, railroads and highways annually in the United States.

Read the The complete Report

About the author:

Charlie Tian, Ph.D. - Founder of GuruFocus. You can now order his book Invest Like a Guru on Amazon.

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