SUNNYVALE, Calif., April 28, 2016 /PRNewswire/ -- Trimble
(NASDAQ: TRMB) today announced financial results for the first
quarter of 2016.
First Quarter 2016 Financial Summary
First quarter 2016 revenue of $583.0
million was flat as compared to the first quarter of 2015.
Engineering and Construction revenue was $309.8 million, up 4 percent. Field Solutions
revenue was $106.0 million, down 8
percent. Mobile Solutions revenue was $136.3
million, up 6 percent. Advanced Devices revenue was
$30.9 million, down 22 percent.
Foreign currency translation unfavorably impacted company revenue
by approximately 1 percent as compared to the first quarter of
2015.
GAAP operating income was $29.9
million, down 24 percent as compared to the first quarter of
2015. GAAP operating margin was 5.1 percent of revenue as compared
to 6.8 percent of revenue in the first quarter of 2015.
GAAP net income was $19.8 million,
down 42 percent as compared to the first quarter of 2015. Diluted
GAAP earnings per share were $0.08 as
compared to diluted GAAP earnings per share of $0.13 in the first quarter of 2015.
Non-GAAP operating income of $88.5
million was down 9 percent as compared to the first quarter
of 2015. Non-GAAP operating margin was 15.1 percent of revenue as
compared to 16.6 percent of revenue in the first quarter of
2015.
Non-GAAP net income of $64.5
million was down 11 percent as compared to the first quarter
of 2015. Diluted non-GAAP earnings per share were $0.25 as compared to diluted non-GAAP earnings
per share of $0.28 in the first
quarter of 2015.
The GAAP tax rate for the quarter was 33 percent as compared to
23 percent in the first quarter of 2015, and the non-GAAP tax rate
was 24 percent, unchanged from the first quarter of 2015.
Operating cash flow for the first quarter of 2016 was
$113.2 million, up 6 percent as
compared to the first quarter of 2015. Deferred revenue for the
first quarter of 2016 was $319.5
million, up 13 percent as compared to the first quarter of
2015.
"Revenue for all segments in the quarter came within
expectations and deferred revenue grew to a record level," said
Steven W. Berglund, Trimble's
president and chief executive officer. "Earnings were impacted by
product and geographic mix as well as operating expenses associated
with recent acquisitions. We remain on track for revenue growth for
the full year, with particular strength in the Mobile Solutions
segment and from the heavy civil and buildings businesses in the
Engineering and Construction segment. We anticipate achieving our
operating margin goals during the year due to gross margin
improvement and cost containment initiatives."
Forward Looking Guidance
For the second quarter of 2016 Trimble expects revenue to be
between $595 million and $625 million
with GAAP earnings per share of $0.08
to $0.13 and non-GAAP earnings per
share of $0.26 to $0.31. Non-GAAP
guidance excludes the amortization of intangibles of $40 million related to previous acquisitions,
anticipated acquisition costs of $2
million, the anticipated impact of stock-based compensation
expense of $14 million, and
$4 million in anticipated
restructuring charges. GAAP guidance assumes a tax rate of 27
percent and non-GAAP guidance assumes a tax rate of 24 percent.
Both GAAP and non-GAAP earnings per share assume approximately 255
million shares outstanding.
Investor Conference Call / Webcast Details
Trimble will hold a conference call on April 28 at 1:30 p.m.
PT to review its first quarter 2016 results. It will be
broadcast live on the Web at http://investor.trimble.com. Investors
without Internet access may dial into the call at (800) 528-9198
(U.S.) or (702) 928-6633 (international). The pass code is
93054609. The replay will also be available on the Web at the
address above.
Use of Non-GAAP Financial Information
To help our investors understand our past financial performance
and our future results, as well as our performance relative to
competitors, we supplement the financial results that we provide in
accordance with generally accepted accounting principles, or GAAP,
with non-GAAP financial measures. These non-GAAP measures can be
used to evaluate our historical and prospective financial
performance, as well as our performance relative to competitors.
Our management regularly uses our supplemental non-GAAP financial
measures internally to understand, manage and evaluate our
business, and to make operating decisions. These non-GAAP measures
are among the primary factors management uses in planning for and
forecasting future periods. We believe that these non-GAAP
financial measures reflect an additional way of viewing aspects of
our operations that, when viewed with our GAAP results, provide a
more complete understanding of factors and trends affecting our
business. Further, we believe some of our investors track our "core
operating performance" as a means of evaluating our performance in
the ordinary, ongoing, and customary course of our operations. Core
operating performance excludes items that are non-cash, not
expected to recur or not reflective of ongoing financial results.
Management also believes that looking at our core operating
performance provides a supplemental way to provide consistency in
period to period comparisons.
The specific non-GAAP measures, which we use along with a
reconciliation to the nearest comparable GAAP measures and the
explanation for why these non-GAAP measures provide useful
information to investors regarding our financial condition and
results of operations and why management chose to exclude selected
items can be found at the end of this release. The method we use to
produce non-GAAP results is not computed according to GAAP and may
differ from the methods used by other companies. Our non-GAAP
results are not meant to be considered in isolation or as a
substitute for comparable GAAP measures and should be read only in
conjunction with our consolidated financial statements prepared in
accordance with GAAP. Investors are encouraged to review the
reconciliation of our non-GAAP financial measures to the comparable
GAAP results, which is attached to this earnings release.
Additional financial information about our use of non-GAAP results
can be found on the investor relations page of our Web site
at: http://investor.trimble.com.
About Trimble
Trimble is transforming the way the world works by delivering
products and services that connect the physical and digital worlds.
Core technologies in positioning, modeling, connectivity and data
analytics enable customers to improve productivity, quality, safety
and sustainability. From purpose built products to enterprise
lifecycle solutions, Trimble software, hardware and services are
transforming a broad range of industries such as agriculture,
construction, geospatial and transportation and logistics. For more
information about Trimble (NASDAQ:TRMB),
visit: www.trimble.com.
Safe Harbor
Certain statements made in this press release are
forward-looking statements within the meaning of Section 21E of the
Securities Exchange Act of 1934, as amended, and are made pursuant
to the safe harbor provisions of the Securities Litigation Reform
Act of 1995. These statements include expectations for future
financial market and economic conditions, the impact of
acquisitions, the ability to deliver revenue, earnings per share
and other financial projections that Trimble has guided for the
second quarter and full year, including the expected tax rate,
anticipated impact of stock-based compensation expense,
amortization of intangibles related to previous acquisitions,
anticipated acquisition costs, restructuring charges, and the
anticipated number of diluted shares outstanding. These
forward-looking statements are subject to change, and actual
results may materially differ from those set forth in this press
release due to certain risks and uncertainties. The Company's
results may be adversely affected if the Company is unable to
market, manufacture and ship new products, obtain new customers, or
integrate new acquisitions. The Company's results would also be
negatively impacted by weakening in the macro environment or
foreign exchange fluctuations. Any failure to achieve predicted
results could negatively impact the Company's revenues, cash flow
from operations, and other financial results. The Company's
financial results will also depend on a number of other factors and
risks detailed from time to time in reports filed with the SEC,
including its quarterly reports on Form 10-Q and its annual report
on Form 10- K, such as changes in economic conditions, further
worsening in the agricultural market, critical part supply chain
shortages, possible write-offs of goodwill, and regulatory
proceedings affecting GPS. Undue reliance should not be placed on
any forward-looking statement contained herein, especially in light
of greater uncertainty than normal in the economy in general. These
statements reflect the Company's position as of the date of this
release. The Company expressly disclaims any undertaking to release
publicly any updates or revisions to any statements to reflect any
change in the Company's expectations or any change of events,
conditions, or circumstances on which any such statement is
based.
FTRMB
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
(In millions, except
per share data)
|
(Unaudited)
|
|
|
|
|
|
First Quarter
of
|
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
Revenues
|
|
|
|
Product
|
$ 393.6
|
|
$ 400.6
|
Service
|
101.6
|
|
100.9
|
Subscription
|
87.8
|
|
81.1
|
Total
revenues
|
583.0
|
|
582.6
|
|
|
|
|
Cost of
sales
|
|
|
|
Product
|
190.0
|
|
187.7
|
Service
|
41.6
|
|
41.4
|
Subscription
|
26.7
|
|
23.8
|
Amortization of purchased intangible assets
|
24.1
|
|
22.5
|
Total cost of
sales
|
282.4
|
|
275.4
|
|
|
|
-
|
Gross
margin
|
300.6
|
|
307.2
|
Gross margin
(%)
|
51.6%
|
|
52.7%
|
|
|
|
|
Operating
expenses
|
|
|
|
Research and development
|
87.7
|
|
87.2
|
Sales and marketing
|
96.7
|
|
96.5
|
General and administrative
|
68.3
|
|
64.7
|
Restructuring charges
|
1.8
|
|
1.1
|
Amortization of purchased intangible assets
|
16.2
|
|
18.2
|
Total operating
expenses
|
270.7
|
|
267.7
|
|
|
|
|
|
|
|
|
Operating
income
|
29.9
|
|
39.5
|
|
|
|
|
Non-operating income
(expense), net
|
|
|
|
Interest expense
|
(6.6)
|
|
(6.4)
|
Foreign currency transaction gain (loss), net
|
(0.1)
|
|
1.1
|
Income from equity method investments, net
|
2.9
|
|
3.0
|
Other income, net
|
3.3
|
|
7.0
|
Total
non-operating income (expense), net
|
(0.5)
|
|
4.7
|
|
|
|
|
Income before
taxes
|
29.4
|
|
44.2
|
|
|
|
|
Income tax
provision
|
9.7
|
|
10.2
|
Net income
|
19.7
|
|
34.0
|
Less: Net income
(loss) attributable to noncontrolling interests
|
(0.1)
|
|
(0.1)
|
Net income
attributable to Trimble Navigation Limited
|
$ 19.8
|
|
$ 34.1
|
|
|
|
|
Earnings per share
attributable to Trimble Navigation Limited:
|
|
|
|
Basic
|
$ 0.08
|
|
$ 0.13
|
Diluted
|
$ 0.08
|
|
$ 0.13
|
|
|
|
|
Shares used in
calculating earnings per share:
|
|
|
|
Basic
|
251.0
|
|
259.4
|
Diluted
|
254.0
|
|
262.4
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(In
millions)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
of
|
|
Fiscal Year
End
|
As of
|
|
2016
|
|
2015
|
Assets
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and
cash equivalents
|
|
$
174.7
|
|
$
116.0
|
Accounts
receivable, net
|
|
377.8
|
|
361.9
|
Other
receivables
|
|
15.3
|
|
14.9
|
Inventories, net
|
|
255.5
|
|
261.1
|
Other
current assets
|
|
49.3
|
|
44.5
|
Total current
assets
|
|
872.6
|
|
798.4
|
|
|
|
|
|
Property and
equipment, net
|
|
155.4
|
|
159.2
|
Goodwill
|
|
2,128.4
|
|
2,106.4
|
Other purchased
intangible assets, net
|
|
452.5
|
|
487.1
|
Other non-current
assets
|
|
141.0
|
|
129.6
|
|
|
|
|
|
Total
assets
|
|
$
3,749.9
|
|
$
3,680.7
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Short-term debt
|
|
$
135.3
|
|
$
118.3
|
Accounts
payable
|
|
112.6
|
|
99.8
|
Accrued
compensation and benefits
|
|
86.6
|
|
98.9
|
Deferred
revenue
|
|
287.2
|
|
234.6
|
Accrued
warranty expense
|
|
17.9
|
|
18.5
|
Other
current liabilities
|
|
87.2
|
|
90.8
|
Total current
liabilities
|
|
726.8
|
|
660.9
|
|
|
|
|
|
Long-term
debt
|
|
539.6
|
|
611.4
|
Non-current deferred
revenue
|
|
32.3
|
|
29.6
|
Deferred income tax
liabilities
|
|
53.5
|
|
51.7
|
Other non-current
liabilities
|
|
111.0
|
|
106.5
|
Total
liabilities
|
|
1,463.2
|
|
1,460.1
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
Common
stock
|
|
1,267.3
|
|
1,238.3
|
Retained
earnings
|
|
1,157.3
|
|
1,148.2
|
Accumulated other comprehensive loss
|
|
(138.7)
|
|
(166.8)
|
Total Trimble
Navigation Limited shareholders' equity
|
|
2,285.9
|
|
2,219.7
|
Noncontrolling
interests
|
|
0.8
|
|
0.9
|
Total shareholders'
equity
|
|
2,286.7
|
|
2,220.6
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$
3,749.9
|
|
$
3,680.7
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
millions)
|
(Unaudited)
|
|
First Quarter
of
|
|
2016
|
|
2015
|
|
|
|
|
Cash flow from
operating activities:
|
|
|
|
Net Income
|
$
19.7
|
|
$ 34.0
|
|
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
Depreciation expense
|
9.1
|
|
8.7
|
Amortization expense
|
40.3
|
|
40.7
|
Provision for doubtful accounts
|
0.6
|
|
1.0
|
Deferred income taxes
|
(0.1)
|
|
(1.3)
|
Stock-based compensation
|
13.7
|
|
12.5
|
Income from equity method investments
|
(2.9)
|
|
(3.0)
|
Acquisition / divestiture (gain)/loss
|
(3.1)
|
|
(5.8)
|
Excess tax benefit for stock-based compensation
|
(1.2)
|
|
(0.7)
|
Provision for excess and obsolete inventories
|
4.1
|
|
0.8
|
Other non-cash items
|
0.7
|
|
11.0
|
|
|
|
|
Add decrease (increase) in assets:
|
|
|
|
Accounts receivables
|
(14.1)
|
|
(28.9)
|
Other receivables
|
(2.2)
|
|
4.9
|
Inventories
|
3.1
|
|
(6.4)
|
Other current and non-current assets
|
(4.9)
|
|
(8.0)
|
|
|
|
|
Add increase (decrease) in liabilities:
|
|
|
|
Accounts payable
|
11.9
|
|
11.2
|
Accrued compensation and benefits
|
(13.5)
|
|
(15.0)
|
Deferred revenue
|
54.1
|
|
49.4
|
Accrued warranty
|
(0.7)
|
|
(1.5)
|
Accrued liabilities
|
(1.4)
|
|
3.6
|
Net cash
provided by operating activities
|
113.2
|
|
107.2
|
|
|
|
|
Cash flow from
investing activities:
|
|
|
|
Acquisitions of
businesses, net of cash acquired
|
(15.8)
|
|
(36.9)
|
Acquisitions of
property and equipment
|
(4.9)
|
|
(10.6)
|
Purchases of equity
investments
|
(0.4)
|
|
(1.3)
|
Net proceeds from sale
of businesses
|
8.1
|
|
12.6
|
Dividends received
from equity method investments
|
5.0
|
|
-
|
Other
|
(0.3)
|
|
0.8
|
Net cash used
in investing activities
|
(8.3)
|
|
(35.4)
|
|
|
|
|
Cash flow from
financing activities:
|
|
|
|
Issuance of common
stock, net of tax withholdings
|
16.1
|
|
14.7
|
Repurchases and
retirement of common stock
|
(12.2)
|
|
(12.6)
|
Excess tax benefit for
stock-based compensation
|
1.2
|
|
0.7
|
Proceeds from debt and
revolving credit lines
|
92.0
|
|
130.0
|
Payments on debt and
revolving credit lines
|
(147.0)
|
|
(198.0)
|
Net cash used
in financing activities
|
(49.9)
|
|
(65.2)
|
|
|
|
|
Effect of
exchange rate changes on cash and cash equivalents
|
3.7
|
|
(8.9)
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
58.7
|
|
(2.3)
|
Cash and cash
equivalents - beginning of period
|
116.0
|
|
148.0
|
|
|
|
|
Cash and cash
equivalents - end of period
|
$
174.7
|
|
$145.7
|
REPORTING
SEGMENTS
|
(Dollars in
millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reporting
Segments
|
|
|
|
Engineering
|
|
|
|
|
|
|
|
|
|
and
|
|
Field
|
|
Mobile
|
|
Advanced
|
|
|
|
Construction
|
|
Solutions
|
|
Solutions
|
|
Devices
|
|
|
|
|
|
|
|
|
|
|
FIRST QUARTER OF
FISCAL 2016 :
|
|
|
|
|
|
|
|
|
Revenue
|
$ 309.8
|
|
$ 106.0
|
|
$ 136.3
|
|
$ 30.9
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
before corporate allocations
|
$
44.1
|
|
$ 33.9
|
|
$ 18.9
|
|
$ 10.3
|
|
|
Operating margin (%
of segment external net revenue)
|
14.2%
|
|
32.0%
|
|
13.9%
|
|
33.3%
|
|
|
|
|
|
|
|
|
|
|
FIRST QUARTER OF
FISCAL 2015 :
|
|
|
|
|
|
|
|
|
Revenue
|
$ 299.3
|
|
$ 115.3
|
|
$ 128.2
|
|
$ 39.8
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
before corporate allocations
|
$
37.0
|
|
$ 40.6
|
|
$ 20.5
|
|
$ 15.2
|
|
|
Operating margin (%
of segment external net revenue)
|
12.4%
|
|
35.2%
|
|
16.0%
|
|
38.2%
|
GAAP TO NON-GAAP
RECONCILIATION
|
(Dollars in millions,
except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
of
|
|
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
Dollar
|
% of
|
|
Dollar
|
% of
|
|
|
|
|
|
|
Amount
|
Revenue
|
|
Amount
|
Revenue
|
|
GROSS
MARGIN:
|
|
|
|
|
|
|
|
|
|
GAAP gross
margin:
|
|
|
$ 300.6
|
51.6%
|
|
$ 307.2
|
52.7%
|
|
|
|
Restructuring
charges
|
( A )
|
|
0.3
|
0.1%
|
|
0.2
|
0.0%
|
|
|
|
Amortization of
purchased intangible assets
|
( B )
|
|
24.1
|
4.0%
|
|
22.5
|
3.9%
|
|
|
|
Stock-based
compensation
|
( C )
|
|
1.0
|
0.2%
|
|
0.9
|
0.2%
|
|
|
Non-GAAP gross
margin:
|
|
|
$ 326.0
|
55.9%
|
|
$ 330.8
|
56.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
GAAP operating
expenses:
|
|
|
$ 270.7
|
46.4%
|
|
$ 267.7
|
45.9%
|
|
|
|
Restructuring
charges
|
( A )
|
|
(1.8)
|
-0.3%
|
|
(1.1)
|
-0.2%
|
|
|
|
Amortization of
purchased intangible assets
|
( B )
|
|
(16.2)
|
-2.8%
|
|
(18.2)
|
-3.1%
|
|
|
|
Stock-based
compensation
|
( C )
|
|
(12.7)
|
-2.2%
|
|
(11.6)
|
-2.0%
|
|
|
|
Acquisition /
divestiture items
|
( D )
|
|
(1.6)
|
-0.3%
|
|
(2.8)
|
-0.5%
|
|
|
|
Executive transition
costs
|
( E )
|
|
(0.9)
|
-0.1%
|
|
-
|
0.0%
|
|
|
Non-GAAP operating
expenses:
|
|
|
$ 237.5
|
40.7%
|
|
$ 234.0
|
40.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME:
|
|
|
|
|
|
|
|
|
|
GAAP operating
income:
|
|
|
$ 29.9
|
5.1%
|
|
$ 39.5
|
6.8%
|
|
|
|
Restructuring
charges
|
( A )
|
|
2.1
|
0.4%
|
|
1.3
|
0.2%
|
|
|
|
Amortization of
purchased intangible assets
|
( B )
|
|
40.3
|
6.8%
|
|
40.7
|
7.0%
|
|
|
|
Stock-based
compensation
|
( C )
|
|
13.7
|
2.4%
|
|
12.5
|
2.1%
|
|
|
|
Acquisition /
divestiture items
|
( D )
|
|
1.6
|
0.3%
|
|
2.8
|
0.5%
|
|
|
|
Executive transition
costs
|
( E )
|
|
0.9
|
0.1%
|
|
-
|
0.0%
|
|
|
Non-GAAP operating
income:
|
|
|
$ 88.5
|
15.1%
|
|
$ 96.8
|
16.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-OPERATING
INCOME (EXPENSE), NET:
|
|
|
|
|
|
|
|
|
|
GAAP non-operating
income (expense), net:
|
|
|
$ (0.5)
|
|
|
$ 4.7
|
|
|
|
|
Acquisition /
divestiture items
|
( D )
|
|
(3.1)
|
|
|
(5.8)
|
|
|
|
|
Debt issuance cost
write-off
|
( F )
|
|
-
|
|
|
(0.1)
|
|
|
|
Non-GAAP
non-operating expense, net:
|
|
|
$ (3.6)
|
|
|
$ (1.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
and
|
|
|
GAAP
and
|
|
|
|
|
|
|
|
Non-GAAP
|
|
|
Non-GAAP
|
|
|
|
|
|
|
|
Tax Rate %
|
( I )
|
|
Tax Rate %
|
( I )
|
INCOME TAX
PROVISION:
|
|
|
|
|
|
|
|
|
|
GAAP income tax
provision:
|
|
|
$ 9.7
|
33%
|
|
$ 10.2
|
23%
|
|
|
|
Non-GAAP items tax
effected
|
( G )
|
|
18.3
|
|
|
11.8
|
|
|
|
|
Difference in GAAP
and Non-GAAP tax rate
|
( H )
|
|
(7.5)
|
|
|
1.0
|
|
|
|
Non-GAAP income tax
provision:
|
|
|
$ 20.5
|
24%
|
|
$ 23.0
|
24%
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME:
|
|
|
|
|
|
|
|
|
|
GAAP net income
attributable to Trimble Navigation Limited
|
|
|
$ 19.8
|
|
|
$ 34.1
|
|
|
|
|
Restructuring
charges
|
( A )
|
|
2.1
|
|
|
1.3
|
|
|
|
|
Amortization of
purchased intangible assets
|
( B )
|
|
40.3
|
|
|
40.7
|
|
|
|
|
Stock-based
compensation
|
( C )
|
|
13.7
|
|
|
12.5
|
|
|
|
|
Acquisition /
divestiture items
|
( D )
|
|
(1.5)
|
|
|
(3.0)
|
|
|
|
|
Executive transition
costs
|
( E )
|
|
0.9
|
|
|
-
|
|
|
|
|
Debt issuance cost
write-off
|
( F )
|
|
-
|
|
|
(0.1)
|
|
|
|
|
Non-GAAP tax
adjustments
|
( G ) + ( H
)
|
|
(10.8)
|
|
|
(12.8)
|
|
|
|
Non-GAAP net income
attributable to Trimble Navigation Limited
|
|
|
$ 64.5
|
|
|
$ 72.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED NET INCOME
PER SHARE:
|
|
|
|
|
|
|
|
|
|
GAAP diluted net
income per share attributable to Trimble Navigation
Limited
|
|
|
$ 0.08
|
|
|
$ 0.13
|
|
|
|
|
Restructuring
charges
|
( A )
|
|
0.01
|
|
|
-
|
|
|
|
|
Amortization of
purchased intangible assets
|
( B )
|
|
0.16
|
|
|
0.16
|
|
|
|
|
Stock-based
compensation
|
( C )
|
|
0.05
|
|
|
0.05
|
|
|
|
|
Acquisition /
divestiture items
|
( D )
|
|
(0.01)
|
|
|
(0.01)
|
|
|
|
|
Executive transition
costs
|
( E )
|
|
-
|
|
|
-
|
|
|
|
|
Debt issuance cost
write-off
|
( F )
|
|
-
|
|
|
-
|
|
|
|
|
Non-GAAP tax
adjustments
|
( G ) + ( H
)
|
|
(0.04)
|
|
|
(0.05)
|
|
|
|
Non-GAAP diluted net
income per share attributable to Trimble Navigation
Limited
|
|
|
$ 0.25
|
|
|
$ 0.28
|
|
|
FOOTNOTES TO GAAP
TO NON-GAAP RECONCILIATION
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Our non-GAAP measures
are not meant to be considered in isolation or as a substitute for
comparable GAAP measures. The non-GAAP financial measures included
in the previous table as well as detailed explanations to the
adjustments to comparable GAAP measures, are set forth
below:
|
|
Non-GAAP gross
margin
|
|
We believe our
investors benefit by understanding our non-GAAP gross margin as a
way of understanding how product mix, pricing decisions and
manufacturing costs influence our business. Non-GAAP gross
margin excludes restructuring costs, amortization of purchased
intangible assets and stock-based compensation from GAAP gross
margin. We believe that these exclusions offer investors additional
information that may be useful to view trends in our gross margin
performance.
|
|
Non-GAAP operating
expenses
|
|
We believe this
measure is important to investors evaluating our non-GAAP spending
in relation to revenue. Non-GAAP operating expenses exclude
restructuring costs, amortization of purchased intangible assets,
stock-based compensation, acquisition/divestiture costs associated
with external and incremental costs resulting directly from merger
and acquisition activities such as legal, due diligence, and
integration costs, and executive transition costs from GAAP
operating expenses. We believe that these exclusions offer
investors supplemental information to facilitate comparison of our
operating expenses to our prior results.
|
|
Non-GAAP operating
income
|
|
We believe our
investors benefit by understanding our non-GAAP operating income
trends which are driven by revenue, gross margin, and spending.
Non-GAAP operating income excludes restructuring costs,
amortization of purchased intangible assets, stock-based
compensation, acquisition/divestiture costs associated with
external and incremental costs resulting directly from merger and
acquisition activities such as legal, due diligence, and
integration costs, and executive transition costs. We believe that
these exclusions offer an alternative means for our investors to
evaluate current operating performance compared to results of other
periods.
|
|
Non-GAAP
non-operating income (expense), net
|
|
We believe this
measure helps investors evaluate our non-operating income trends.
Non-GAAP non-operating income (expense), net excludes acquisition
and divestiture gains/losses associated with unusual acquisition
related items such as intangible asset impairment charges and gains
or losses related to the acquisition or sale of certain businesses
and investments. Non-GAAP non-operating income (expense), net also
excludes the write-off of debt issuance costs associated with
terminated and/or modified credit facilities and costs associated
with the issuance of new credit facilities and Senior Notes that
were not capitalized as debt issuance costs. We believe that these
exclusions provide investors with a supplemental view of our
ongoing financial results.
|
|
|
Non-GAAP income tax
provision
|
|
We believe that
providing investors with the non-GAAP income tax provision is
beneficial because it provides for consistent treatment of the
excluded items in our non-GAAP presentation.
|
|
Non-GAAP net
income
|
|
This measure provides
a supplemental view of net income trends which are driven by
non-GAAP income before taxes and our non-GAAP tax rate. Non-GAAP
net income excludes restructuring costs, amortization of purchased
intangible assets, stock-based compensation, acquisition and
divestiture costs, executive transition costs, write-off of debt
issuance costs and non-GAAP tax adjustments from GAAP net income.
We believe our investors benefit from understanding these
exclusions and from an alternative view of our net income
performance as compared to our past net income
performance.
|
|
Non-GAAP diluted net
income per share
|
|
We believe our
investors benefit by understanding our non-GAAP operating
performance as reflected in a per share calculation as a way of
measuring non-GAAP operating performance by ownership in the
company. Non-GAAP diluted net income per share excludes
restructuring costs, amortization of purchased intangible assets,
stock-based compensation, acquisition and divestiture costs,
executive transition costs, a write off of debt issuance costs and
non-GAAP tax adjustments from GAAP diluted net income per share. We
believe that these exclusions offer investors a useful view of our
diluted net income per share as compared to our past diluted net
income per share.
|
|
|
These non-GAAP
measures can be used to evaluate our historical and prospective
financial performance, as well as our performance relative to
competitors. We believe some of our investors track our "core
operating performance" as a means of evaluating our performance in
the ordinary, ongoing, and customary course of our operations. Core
operating performance excludes items that are non-cash, not
expected to recur or not reflective of ongoing financial
results. Management also believes that looking at our core
operating performance provides a supplemental way to provide
consistency in period to period comparisons. Accordingly,
management excludes from non-GAAP those items relating to
restructuring, amortization of purchased intangible assets, stock
based compensation, acquisition and divestiture items, executive
transition costs, write- off of debt issuance costs and non-GAAP
tax adjustments. For detailed explanations of the adjustments
made to comparable GAAP measures, see items (A) - ( I )
below.
|
|
|
( A )
|
Restructuring
costs.Included in our GAAP presentation of cost of sales and
operating expenses, restructuring costs recorded are primarily for
employee compensation resulting from reductions in employee
headcount in connection with our company restructurings. We
exclude restructuring costs from our non-GAAP measures because we
believe they do not reflect expected future operating expenses,
they are not indicative of our core operating performance, and they
are not meaningful in comparisons to our past operating
performance. We have incurred restructuring expense in each
of the periods presented however the amount incurred can vary
significantly based on whether a restructuring has occurred in the
period and the timing of headcount reductions.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( B )
|
Amortization of
purchased intangible assets.Included in our GAAP presentation
of gross margin and operating expenses is amortization of purchased
intangible assets. US GAAP accounting requires that intangible
assets are recorded at fair value and amortized over their useful
lives. Consequently, the timing and size of our acquisitions will
cause our operating results to vary from period to period, making a
comparison to past performance difficult for investors. This
accounting treatment may cause differences when comparing our
results to companies that grow internally because the fair value
assigned to the intangible assets acquired through acquisition may
significantly exceed the equivalent expenses that a company may
incur for similar efforts when performed internally. Furthermore,
the useful life that we expense our intangible assets over may be
substantially different from the time period that an internal
growth company incurs and recognizes such expenses. We believe that
by excluding the amortization of purchased intangible assets, which
primarily represents technology and/or customer relationships
already developed, it provides an alternative way for investors to
compare our operations pre-acquisition to those post-acquisitions
and to those of our competitors that have pursued internal growth
strategies. However, we note that companies that grow internally
will incur costs to develop intangible assets that will be expensed
in the period incurred, which may make a direct comparison more
difficult.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( C )
|
Stock-based
compensation. Included in our GAAP presentation of cost of sales
and operating expenses, stock-based compensation consists of
expenses for employee stock options and awards and purchase rights
under our employee stock purchase plan. We exclude stock-based
compensation expense from our non-GAAP measures because some
investors may view it as not reflective of our core operating
performance as it is a non-cash expense. For the first
quarter of and fiscal years 2016 and 2015, stock-based compensation
was allocated as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
of
|
|
|
|
|
|
(Dollars in
millions)
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
$
1.0
|
|
$
0.9
|
|
|
|
|
|
|
|
Research and
development
|
|
|
2.3
|
|
2.2
|
|
|
|
|
|
|
|
Sales and
Marketing
|
|
|
2.0
|
|
2.3
|
|
|
|
|
|
|
|
General and
administrative
|
|
|
8.4
|
|
7.1
|
|
|
|
|
|
|
|
|
|
|
$
13.7
|
|
$
12.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( D )
|
Acquisition /
divestiture items. Included in our GAAP presentation of
operating expenses, acquisition costs consist of external and
incremental costs resulting directly from merger and acquisition
and strategic investment activities such as legal, due diligence,
and integration costs as well as adjustments to the fair value of
earn-out liabilities. Included in our GAAP presentation of
non-operating income (expense) net, acquisition / divestiture items
includes unusual acquisition, investment, or divestiture
gains/losses. Although we do numerous acquisitions, the costs that
have been excluded from the non-GAAP measures are costs specific to
particular acquisitions. These are one-time costs that vary
significantly in amount and timing and are not indicative of our
core operating performance.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( E )
|
Executive
transition costs. Included in our GAAP presentation of
operating expenses are amounts paid to the Company's former CFO
upon his departure under the terms of his executive severance
agreement. We excluded these payments from our non-GAAP measures
because they represent non-recurring expenses and are not
indicative of our ongoing operating expenses. We further believe
that excluding the executive transition costs from our non-GAAP
results is useful to investors in that it allows for
period-over-period comparability.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( F )
|
Debt issuance cost
write-off. Included in our GAAP non-operating income
(expense), is the write-off of debt issuance costs for terminated
and/or modified credit facilities and costs associated with the
issuance of new credit facilities and Senior Notes in fiscal 2014
that were not capitalized as debt issuance costs. We excluded
the debt issuance cost write-off from our non-GAAP measures. We
believe that investors benefit from excluding this item from our
non-operating income to facilitate a more meaningful evaluation of
our non-operating income trends.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( G )
|
Non-GAAP items tax
effected. This amount adjusts the provision for
income taxes to reflect the effect of the non-GAAP items ( A ) - (
F ) on non-GAAP net income. We believe this information
is useful to investors because it provides for consistent treatment
of the excluded items in this non-GAAP
presentation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( H )
|
Difference in GAAP
and Non-GAAP tax rate. This amount represents the
difference between the GAAP and Non-GAAP tax rates applied to the
Non-GAAP Operating Income plus the Non-GAAP Non-Operating income
(expense), Net.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( I )
|
GAAP and non-GAAP
tax rate %. These percentages are defined as GAAP income
tax provision as a percentage of GAAP income before taxes and
non-GAAP income tax provision as a percentage of non-GAAP income
before taxes. We believe that investors benefit from a
presentation of non-GAAP tax rate percentage as a way of
facilitating a comparison to non-GAAP tax rates in prior
periods.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/trimble-reports-first-quarter-2016-results-300259625.html
SOURCE Trimble