SUNNYVALE, Calif., Feb. 8, 2017 /PRNewswire/ -- Trimble (NASDAQ:
TRMB) today announced financial results for the fourth quarter and
fiscal year end 2016 results.
Fourth Quarter 2016 Financial Summary
Fourth quarter 2016 revenue of $585.5
million was up 5 percent as compared to the fourth quarter
of 2015. Engineering and Construction revenue was $320.2 million, up less than 1 percent. Field
Solutions revenue was $83.3 million,
up 5 percent. Mobile Solutions revenue was $146.8 million, up 11 percent. Advanced Devices
revenue was $35.2 million, up 21
percent.
GAAP operating income was $55.3
million, up 68 percent as compared to the fourth quarter of
2015. GAAP operating margin was 9.4 percent of revenue as compared
to 5.9 percent of revenue in the fourth quarter of 2015.
GAAP net income was $37.7 million,
up 57 percent as compared to the fourth quarter of 2015. Diluted
GAAP earnings per share were $0.15 as
compared to diluted GAAP earnings per share of $0.09 in the fourth quarter of 2015.
Non-GAAP operating income of $107.2
million was up 18 percent as compared to the fourth quarter
of 2015. Non-GAAP operating margin was 18.3 percent of revenue as
compared to 16.3 percent of revenue in the fourth quarter of
2015.
Non-GAAP net income of $79.8
million was up 19 percent as compared to the fourth quarter
of 2015. Diluted non-GAAP earnings per share were $0.31 as compared to diluted non-GAAP earnings
per share of $0.27 in the fourth
quarter of 2015. The GAAP tax rate for the quarter was 34 percent
as compared to 16 percent in the fourth quarter of 2015, and the
non-GAAP tax rate was 24 percent, unchanged from the fourth quarter
of 2015.
During the fourth quarter, Trimble repurchased approximately 0.6
million shares of its common stock for $17
million.
"Both the fourth quarter and full year performances demonstrated
progression," said Steve Berglund,
Trimble's president and chief executive officer. "For the second
half of the year, every segment reported both organic revenue
growth and margin expansion. We anticipate 2017 will demonstrate
continued growth and margin improvement."
Fiscal 2016 Financial Summary
Fiscal 2016 revenue of $2.4
billion was up 3 percent as compared to fiscal 2015.
Engineering and Construction revenue was $1.3 billion, up 2 percent. Field Solutions
revenue was $354.3 million, down
slightly. Mobile Solutions revenue was $559.7 million, up 8 percent. Advanced Devices
revenue was $134.6 million, up 2
percent.
GAAP operating income was $181.0
million, up 17 percent as compared to fiscal 2015. GAAP
operating margin was 7.7 percent of revenue as compared to 6.7
percent of revenue in fiscal 2015.
GAAP net income was $132.4
million, up 9 percent as compared to fiscal 2015. Diluted
GAAP earnings per share were $0.52 as
compared to diluted GAAP earnings per share of $0.47 in fiscal 2015.
Non-GAAP operating income of $405.5
million was up 4 percent as compared to fiscal 2015.
Non-GAAP operating margin was 17.2 percent of revenue as compared
to 17.0 percent of revenue in fiscal 2015.
Non-GAAP net income of $302.4
million was up 4 percent as compared to fiscal 2015. Diluted
non-GAAP earnings per share were $1.19 as compared to diluted non-GAAP earnings
per share of $1.13 in fiscal 2015.
The GAAP tax rate for the year was 25 percent as compared to 20
percent in fiscal 2015, and the non-GAAP tax rate was 24 percent,
unchanged from fiscal 2015.
Operating cash flow for fiscal 2016 was $407.1 million, up 15 percent as compared to
fiscal 2015. Deferred revenue for fiscal 2016 was $284.2 million, up 8 percent as compared to
fiscal 2015.
During fiscal 2016, Trimble repurchased approximately 4.9
million shares of its common stock for $119
million. Approximately $130
million remains under the current share repurchase
authorization.
Forward Looking Guidance
For the first quarter of 2017 Trimble expects revenue to be
between $585 million and $615 million
with GAAP earnings per share of $0.12 to
$0.17 and non-GAAP earnings per share of $0.27 to $0.32. Non-GAAP guidance excludes the
amortization of intangibles of $32
million related to previous acquisitions, anticipated
acquisition costs of $3 million, the
anticipated impact of stock-based compensation expense of
$14 million, and $2 million in anticipated restructuring charges.
GAAP and non-GAAP guidance assumes a tax rate of 24 percent. Both
GAAP and non-GAAP earnings per share assume approximately 256
million shares outstanding.
Investor Conference Call / Webcast Details
Trimble will hold a conference call on February 8 at 2:00 p.m.
PT to review its fourth quarter and full year 2016 results.
An accompanying slide presentation will be made available on the
"Investors" section of the Trimble website, www.trimble.com, under
the subheading "Events & Presentations". The call 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 passcode is 61296487.
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 potential for growth
and margin expansion in 2017, the impact of acquisitions, the
ability to deliver revenue, earnings per share and other financial
projections that Trimble has guided for the first quarter of 2017,
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 could be
negatively impacted by weakening in the macro economic environment,
foreign exchange fluctuations, or the imposition of barriers to
international trade. 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 geospatial market, critical part supply chain shortages, and
possible write-offs of goodwill. 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter
of
|
|
Fiscal
Years
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
Product
|
$
376.5
|
|
$
365.3
|
|
$
1,562.0
|
|
$
1,533.5
|
|
|
Service
|
113.3
|
|
109.4
|
|
430.2
|
|
419.9
|
|
|
Subscription
|
95.7
|
|
85.0
|
|
370.0
|
|
337.0
|
Total
revenue
|
585.5
|
|
559.7
|
|
2,362.2
|
|
2,290.4
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales:
|
|
|
|
|
|
|
|
|
|
Product
|
184.8
|
|
177.1
|
|
760.8
|
|
731.1
|
|
|
Service
|
43.6
|
|
41.2
|
|
169.9
|
|
164.2
|
|
|
Subscription
|
25.6
|
|
24.5
|
|
104.9
|
|
100.3
|
|
|
Amortization of
purchased intangible assets
|
18.7
|
|
23.8
|
|
88.6
|
|
92.6
|
Total cost of
sales
|
272.7
|
|
266.6
|
|
1,124.2
|
|
1,088.2
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
312.8
|
|
293.1
|
|
1,238.0
|
|
1,202.2
|
Gross margin
(%)
|
53.4 %
|
|
52.4 %
|
|
52.4 %
|
|
52.5 %
|
|
|
|
|
|
|
|
|
|
|
Operating
expense:
|
|
|
|
|
|
|
|
|
Research and
development
|
83.0
|
|
85.4
|
|
349.6
|
|
336.7
|
|
Sales and
marketing
|
94.9
|
|
92.8
|
|
377.6
|
|
374.6
|
|
General and
administrative
|
62.9
|
|
63.2
|
|
256.0
|
|
255.3
|
|
Restructuring
charges
|
1.8
|
|
2.4
|
|
11.6
|
|
11.4
|
|
Amortization of
purchased intangible assets
|
14.9
|
|
16.4
|
|
62.2
|
|
69.8
|
|
|
Total operating
expense
|
257.5
|
|
260.2
|
|
1,057.0
|
|
1,047.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
55.3
|
|
32.9
|
|
181.0
|
|
154.4
|
|
|
|
|
|
|
|
|
|
|
Non-operating income
(expense), net:
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
(6.1)
|
|
(6.5)
|
|
(25.9)
|
|
(25.6)
|
|
Foreign currency
transaction gain (loss), net
|
(0.3)
|
|
(1.0)
|
|
(1.9)
|
|
0.2
|
|
Income from equity
method investments, net
|
3.7
|
|
3.8
|
|
17.6
|
|
17.9
|
|
Other income
(expense), net
|
4.2
|
|
(0.9)
|
|
5.9
|
|
4.9
|
|
|
Total non-operating
income (expense), net
|
1.5
|
|
(4.6)
|
|
(4.3)
|
|
(2.6)
|
|
|
|
|
|
|
|
|
|
|
Income before
taxes
|
56.8
|
|
28.3
|
|
176.7
|
|
151.8
|
|
|
|
|
|
|
|
|
|
|
Income tax
provision
|
19.1
|
|
4.4
|
|
44.5
|
|
31.1
|
Net income
|
37.7
|
|
23.9
|
|
132.2
|
|
120.7
|
|
Less: Net loss
attributable to noncontrolling interests
|
—
|
|
(0.1)
|
|
(0.2)
|
|
(0.4)
|
Net income
attributable to Trimble Inc.
|
$
37.7
|
|
$
24.0
|
|
$
132.4
|
|
$
121.1
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to Trimble Inc.
|
|
|
|
|
|
|
|
|
Basic
|
$
0.15
|
|
$
0.10
|
|
$
0.53
|
|
$
0.47
|
|
Diluted
|
$
0.15
|
|
$
0.09
|
|
$
0.52
|
|
$
0.47
|
|
|
|
|
|
|
|
|
|
|
Shares used in
calculating earnings per share:
|
|
|
|
|
|
|
|
|
Basic
|
250.7
|
|
250.5
|
|
250.5
|
|
255.8
|
|
Diluted
|
254.4
|
|
252.9
|
|
253.9
|
|
258.5
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year
End
|
|
Fiscal Year
End
|
As of
|
|
2016
|
|
2015
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
216.1
|
|
$
116.0
|
|
Short term
investments
|
|
111.1
|
|
—
|
|
Accounts receivable,
net
|
|
354.8
|
|
361.9
|
|
Other
receivables
|
|
35.4
|
|
14.9
|
|
Inventories,
net
|
|
218.8
|
|
261.1
|
|
Other current
assets
|
|
42.5
|
|
44.5
|
|
|
Total current
assets
|
|
978.7
|
|
798.4
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
144.2
|
|
159.2
|
Goodwill
|
|
2,077.6
|
|
2,106.4
|
Other purchased
intangible assets, net
|
|
333.3
|
|
487.1
|
Other non-current
assets
|
|
140.0
|
|
129.6
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
3,673.8
|
|
$
3,680.7
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term
debt
|
|
$
130.3
|
|
$
118.3
|
|
Accounts
payable
|
|
109.8
|
|
99.8
|
|
Accrued compensation
and benefits
|
|
97.5
|
|
98.9
|
|
Deferred
revenue
|
|
246.5
|
|
234.6
|
|
Accrued warranty
expense
|
|
17.2
|
|
18.5
|
|
Other current
liabilities
|
|
86.9
|
|
90.8
|
|
|
Total current
liabilities
|
|
688.2
|
|
660.9
|
|
|
|
|
|
|
|
Long-term
debt
|
|
489.6
|
|
611.4
|
Non-current deferred
revenue
|
|
37.7
|
|
29.6
|
Deferred income tax
liabilities
|
|
38.8
|
|
51.7
|
Other non-current
liabilities
|
|
113.8
|
|
106.5
|
|
|
Total
liabilities
|
|
1,368.1
|
|
1,460.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
Common
stock
|
|
0.3
|
|
0.3
|
|
Additional paid-in
capital
|
|
1,348.3
|
|
1,238.0
|
|
Retained
earnings
|
|
1,177.1
|
|
1,148.2
|
|
Accumulated other
comprehensive loss
|
|
(219.9)
|
|
(166.8)
|
Total Trimble Inc.
stockholders' equity
|
|
2,305.8
|
|
2,219.7
|
Noncontrolling
interests
|
|
(0.1)
|
|
0.9
|
|
|
Total stockholders'
equity
|
|
2,305.7
|
|
2,220.6
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
3,673.8
|
|
$
3,680.7
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
millions)
|
(Unaudited)
|
|
|
|
|
|
Fiscal
Years
|
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
Cash flow from
operating activities:
|
|
|
|
|
|
Net Income
|
|
$
132.2
|
|
$
120.7
|
|
|
|
|
|
|
|
|
|
Adjustments to
reconcile net income to net cash provided by
|
|
|
|
|
|
|
operating
activities:
|
|
|
|
|
|
|
|
Depreciation
expense
|
|
37.0
|
|
36.7
|
|
|
|
Amortization
expense
|
|
150.8
|
|
162.4
|
|
|
|
Provision for
doubtful accounts
|
|
3.0
|
|
1.9
|
|
|
|
Deferred income
taxes
|
|
0.4
|
|
0.9
|
|
|
|
Stock-based
compensation
|
|
52.6
|
|
50.1
|
|
|
|
Income from equity
method investments
|
|
(17.6)
|
|
(17.9)
|
|
|
|
Divestiture gain,
net
|
|
(3.5)
|
|
(3.9)
|
|
|
|
Excess tax benefit
for stock-based compensation
|
|
(6.5)
|
|
(2.1)
|
|
|
|
Provision for excess
and obsolete inventories
|
|
15.8
|
|
12.3
|
|
|
|
Other non-cash
items
|
|
3.3
|
|
10.0
|
|
|
|
|
|
|
|
|
|
Decrease (increase)
in assets:
|
|
|
|
|
|
|
|
Accounts
receivables
|
|
1.2
|
|
0.3
|
|
|
|
Other
receivables
|
|
1.4
|
|
8.5
|
|
|
|
Inventories
|
|
24.0
|
|
(2.9)
|
|
|
|
Other current and
non-current assets
|
|
(1.2)
|
|
(7.6)
|
|
|
|
|
|
|
|
|
|
Increase (decrease)
in liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
10.9
|
|
(6.4)
|
|
|
|
Accrued compensation
and benefits
|
|
0.6
|
|
(0.1)
|
|
|
|
Deferred
revenue
|
|
26.1
|
|
28.1
|
|
|
|
Accrued warranty
expense
|
|
(1.1)
|
|
(2.0)
|
|
|
|
Other
liabilities
|
|
(22.3)
|
|
(34.1)
|
Net cash provided by
operating activities
|
|
407.1
|
|
354.9
|
|
|
|
|
|
|
|
|
Cash flow from
investing activities:
|
|
|
|
|
|
Acquisitions of
businesses, net of cash acquired
|
|
(38.8)
|
|
(156.3)
|
|
Acquisitions of
property and equipment
|
|
(26.0)
|
|
(43.9)
|
|
Purchases of equity
method investments
|
|
(1.5)
|
|
(5.5)
|
|
Acquisitions of
intangible assets
|
|
(0.3)
|
|
(0.1)
|
|
Purchases of
available-for-sale investments
|
|
(113.3)
|
|
—
|
|
Proceeds from
maturities of available-for-sale investments
|
|
2.4
|
|
—
|
|
Net proceeds from
sales of businesses
|
|
14.4
|
|
12.1
|
|
Dividends received
from equity method investments
|
|
17.6
|
|
20.0
|
|
Other
|
|
1.1
|
|
1.3
|
Net cash used in
investing activities
|
|
(144.4)
|
|
(172.4)
|
|
|
|
|
|
|
|
|
Cash flow from
financing activities:
|
|
|
|
|
|
Issuance of common
stock, net of tax withholdings
|
|
67.5
|
|
29.7
|
|
Repurchases and
retirement of common stock
|
|
(119.5)
|
|
(234.4)
|
|
Excess tax benefit
for stock-based compensation
|
|
6.5
|
|
2.1
|
|
Proceeds from debt
and revolving credit lines
|
|
355.0
|
|
555.0
|
|
Payments on debt and
revolving credit lines
|
|
(465.3)
|
|
(555.2)
|
Net cash used in
financing activities
|
|
(155.8)
|
|
(202.8)
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(6.8)
|
|
(11.7)
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
100.1
|
|
(32.0)
|
Cash and cash
equivalents - beginning of period
|
|
116.0
|
|
148.0
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents - end of period
|
|
$
216.1
|
|
$
116.0
|
REPORTING
SEGMENTS
|
(Dollars in
millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reporting
Segments
|
|
|
|
|
|
Engineering
|
|
|
|
|
|
|
|
|
|
|
|
|
and
|
|
Field
|
|
Mobile
|
|
Advanced
|
|
|
|
|
|
|
Construction
|
|
Solutions
|
|
Solutions
|
|
Devices
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOURTH QUARTER OF
FISCAL 2016 :
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$
320.2
|
|
$
83.3
|
|
$
146.8
|
|
$
35.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
before corporate allocations
|
|
$
55.5
|
|
$
23.7
|
|
$
28.7
|
|
$
15.3
|
|
|
|
Operating margin (%
of segment external net revenue)
|
|
17.3 %
|
|
28.5 %
|
|
19.6 %
|
|
43.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOURTH QUARTER OF
FISCAL 2015 :
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$
319.1
|
|
$
79.4
|
|
$
132.2
|
|
$
29.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
before corporate allocations
|
|
$
52.5
|
|
$
23.6
|
|
$
23.1
|
|
$
9.8
|
|
|
|
Operating margin (%
of segment external net revenue)
|
|
16.5 %
|
|
29.7 %
|
|
17.5 %
|
|
33.8 %
|
|
|
|
|
|
|
|
|
|
|
|
FISCAL YEAR 2016
:
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$
1,313.6
|
|
$
354.3
|
|
$
559.7
|
|
$
134.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
before corporate allocations
|
|
$
230.5
|
|
$
105.2
|
|
$
88.9
|
|
$
51.4
|
|
|
|
Operating margin (%
of segment external net revenue)
|
|
17.5 %
|
|
29.7 %
|
|
15.9 %
|
|
38.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FISCAL YEAR 2015
:
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$
1,283.3
|
|
$
355.3
|
|
$
520.3
|
|
$
131.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
before corporate allocations
|
|
$
218.8
|
|
$
108.6
|
|
$
85.6
|
|
$
46.9
|
|
|
|
Operating margin (%
of segment external net revenue)
|
|
17.0 %
|
|
30.6 %
|
|
16.5 %
|
|
35.7 %
|
|
GAAP TO NON-GAAP
RECONCILIATION
|
(Dollars in millions,
except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter
of
|
|
Fiscal
Years
|
|
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
Dollar
|
% of
|
|
Dollar
|
% of
|
|
Dollar
|
% of
|
|
Dollar
|
% of
|
|
|
|
|
|
|
Amount
|
Revenue
|
|
Amount
|
Revenue
|
|
Amount
|
Revenue
|
|
Amount
|
Revenue
|
|
GROSS
MARGIN:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
margin:
|
|
|
$
312.8
|
53.4 %
|
|
$
293.1
|
52.4 %
|
|
$
1,238.0
|
52.4 %
|
|
$
1,202.2
|
52.5 %
|
|
|
|
Restructuring
charges
|
( A )
|
|
0.5
|
0.1 %
|
|
0.6
|
0.1 %
|
|
1.7
|
0.1 %
|
|
1.4
|
0.1 %
|
|
|
|
Amortization of
purchased intangible assets
|
( B )
|
|
18.7
|
3.2 %
|
|
23.8
|
4.2 %
|
|
88.6
|
3.8 %
|
|
92.6
|
4.0 %
|
|
|
|
Stock-based
compensation
|
( C )
|
|
1.0
|
0.2 %
|
|
1.0
|
0.2 %
|
|
3.8
|
0.1 %
|
|
3.9
|
0.2 %
|
|
|
Non-GAAP gross
margin:
|
|
|
$
333.0
|
56.9 %
|
|
$
318.5
|
56.9 %
|
|
$
1,332.1
|
56.4 %
|
|
$
1,300.1
|
56.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
expenses:
|
|
|
$
257.5
|
44.0 %
|
|
$
260.2
|
46.5 %
|
|
$
1,057.0
|
44.7 %
|
|
$
1,047.8
|
45.7 %
|
|
|
|
Restructuring
charges
|
( A )
|
|
(1.8)
|
(0.3)%
|
|
(2.4)
|
(0.4)%
|
|
(11.6)
|
(0.5)%
|
|
(11.4)
|
(0.5)%
|
|
|
|
Amortization of
purchased intangible assets
|
( B )
|
|
(14.9)
|
(2.5)%
|
|
(16.4)
|
(2.9)%
|
|
(62.2)
|
(2.6)%
|
|
(69.8)
|
(3.1)%
|
|
|
|
Stock-based
compensation
|
( C )
|
|
(11.6)
|
(2.0)%
|
|
(11.8)
|
(2.1)%
|
|
(48.8)
|
(2.1)%
|
|
(46.2)
|
(2.0)%
|
|
|
|
Acquisition /
divestiture items
|
( D )
|
|
(3.4)
|
(0.6)%
|
|
(1.9)
|
(0.4)%
|
|
(6.8)
|
(0.3)%
|
|
(9.9)
|
(0.4)%
|
|
|
|
Executive transition
costs
|
( E )
|
|
—
|
—%
|
|
—
|
—%
|
|
(1.0)
|
—%
|
|
—
|
—%
|
|
|
|
Litigation
|
( F )
|
|
—
|
—%
|
|
(0.3)
|
(0.1)%
|
|
—
|
—%
|
|
(0.3)
|
—%
|
|
|
Non-GAAP operating
expenses:
|
|
|
$
225.8
|
38.6 %
|
|
$
227.4
|
40.6 %
|
|
$
926.6
|
39.2 %
|
|
$
910.2
|
39.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income:
|
|
|
$
55.3
|
9.4 %
|
|
$
32.9
|
5.9 %
|
|
$
181.0
|
7.7 %
|
|
$
154.4
|
6.7 %
|
|
|
|
Restructuring
charges
|
( A )
|
|
2.3
|
0.4 %
|
|
3.0
|
0.5 %
|
|
13.3
|
0.6 %
|
|
12.8
|
0.6 %
|
|
|
|
Amortization of
purchased intangible assets
|
( B )
|
|
33.6
|
5.7 %
|
|
40.2
|
7.2 %
|
|
150.8
|
6.4 %
|
|
162.4
|
7.1 %
|
|
|
|
Stock-based
compensation
|
( C )
|
|
12.6
|
2.2 %
|
|
12.8
|
2.3 %
|
|
52.6
|
2.2 %
|
|
50.1
|
2.2 %
|
|
|
|
Acquisition /
divestiture items
|
( D )
|
|
3.4
|
0.6 %
|
|
1.9
|
0.3 %
|
|
6.8
|
0.3 %
|
|
9.9
|
0.4 %
|
|
|
|
Executive transition
costs
|
( E )
|
|
—
|
—%
|
|
—
|
—%
|
|
1.0
|
—%
|
|
—
|
—%
|
|
|
|
Litigation
|
( F )
|
|
—
|
—%
|
|
0.3
|
0.1 %
|
|
—
|
—%
|
|
0.3
|
—%
|
|
|
Non-GAAP operating
income:
|
|
|
$
107.2
|
18.3 %
|
|
$
91.1
|
16.3 %
|
|
$
405.5
|
17.2 %
|
|
$
389.9
|
17.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-OPERATING
INCOME (EXPENSE), NET:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP non-operating
income (expense), net:
|
|
|
$
1.5
|
|
|
$
(4.6)
|
|
|
$
(4.3)
|
|
|
$
(2.6)
|
|
|
|
|
Acquisition /
divestiture items
|
( D )
|
|
(3.6)
|
|
|
1.9
|
|
|
(3.5)
|
|
|
(3.9)
|
|
|
|
Non-GAAP
non-operating income (expense), net:
|
|
|
$
(2.1)
|
|
|
$
(2.7)
|
|
|
$
(7.8)
|
|
|
$
(6.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP and
|
|
|
GAAP and
|
|
|
GAAP and
|
|
|
GAAP and
|
|
|
|
|
|
|
|
Non-GAAP
|
|
|
Non-GAAP
|
|
|
Non-GAAP
|
|
|
Non-GAAP
|
|
|
|
|
|
|
|
Tax Rate %
|
( I )
|
|
Tax Rate %
|
( I )
|
|
Tax Rate %
|
( I )
|
|
Tax Rate %
|
( I )
|
INCOME TAX
PROVISION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income tax
provision:
|
|
|
$
19.1
|
34 %
|
|
$
4.4
|
16 %
|
|
$
44.5
|
25 %
|
|
$
31.1
|
20 %
|
|
|
|
Non-GAAP items tax
effected
|
( G )
|
|
16.4
|
|
|
9.3
|
|
|
55.3
|
|
|
47.1
|
|
|
|
|
Difference in GAAP
and Non-GAAP tax rate
|
( H )
|
|
(10.2)
|
|
|
7.5
|
|
|
(4.3)
|
|
|
13.8
|
|
|
|
Non-GAAP income tax
provision:
|
|
|
$
25.3
|
24 %
|
|
$
21.2
|
24 %
|
|
$
95.5
|
24 %
|
|
$
92.0
|
24 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
attributable to Trimble Inc.
|
|
|
$
37.7
|
|
|
$
24.0
|
|
|
$
132.4
|
|
|
$
121.1
|
|
|
|
|
Restructuring
charges
|
( A )
|
|
2.3
|
|
|
3.0
|
|
|
13.3
|
|
|
12.8
|
|
|
|
|
Amortization of
purchased intangible assets
|
( B )
|
|
33.6
|
|
|
40.2
|
|
|
150.8
|
|
|
162.4
|
|
|
|
|
Stock-based
compensation
|
( C )
|
|
12.6
|
|
|
12.8
|
|
|
52.6
|
|
|
50.1
|
|
|
|
|
Acquisition /
divestiture items
|
( D )
|
|
(0.2)
|
|
|
3.8
|
|
|
3.3
|
|
|
6.0
|
|
|
|
|
Executive transition
costs
|
( E )
|
|
—
|
|
|
—
|
|
|
1.0
|
|
|
—
|
|
|
|
|
Litigation
|
( F )
|
|
—
|
|
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|
|
|
Non-GAAP tax
adjustments
|
( G ) & ( H
)
|
|
(6.2)
|
|
|
(16.8)
|
|
|
(51.0)
|
|
|
(60.9)
|
|
|
|
Non-GAAP net income
attributable to Trimble Inc.
|
|
|
$
79.8
|
|
|
$
67.3
|
|
|
$
302.4
|
|
|
$
291.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED NET INCOME
PER SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted net
income per share attributable to Trimble Inc.
|
|
|
$
0.15
|
|
|
$
0.09
|
|
|
$
0.52
|
|
|
$
0.47
|
|
|
|
|
Restructuring
charges
|
( A )
|
|
0.01
|
|
|
0.01
|
|
|
0.06
|
|
|
0.05
|
|
|
|
|
Amortization of
purchased intangible assets
|
( B )
|
|
0.13
|
|
|
0.16
|
|
|
0.59
|
|
|
0.63
|
|
|
|
|
Stock-based
compensation
|
( C )
|
|
0.04
|
|
|
0.05
|
|
|
0.20
|
|
|
0.19
|
|
|
|
|
Acquisition /
divestiture items
|
( D )
|
|
—
|
|
|
0.02
|
|
|
0.01
|
|
|
0.02
|
|
|
|
|
Executive transition
costs
|
( E )
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
Litigation
|
( F )
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
Non-GAAP tax
adjustments
|
( G ) & ( H
)
|
|
(0.02)
|
|
|
(0.06)
|
|
|
(0.19)
|
|
|
(0.23)
|
|
|
|
Non-GAAP diluted net
income per share attributable to Trimble Inc.
|
|
|
$
0.31
|
|
|
$
0.27
|
|
|
$
1.19
|
|
|
$
1.13
|
|
|
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 charges, 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 charges, 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,
executive transition costs and litigation expenses 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
charges, 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, executive transition costs and litigation
expenses. 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. 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 charges,
amortization of purchased intangible assets, stock-based
compensation, acquisition/divestiture costs, executive transition
costs, litigation expenses 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 charges, amortization of purchased intangible assets,
stock-based compensation, acquisition/divestiture costs, executive
transition costs, litigation expenses 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 charges, amortization of purchased intangible assets,
stock-based compensation, acquisition/divestiture costs, executive
transition costs, litigation expenses and non-GAAP tax
adjustments. For detailed explanations of the adjustments
made to comparable GAAP measures, see items (A) - ( I )
below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( A )
|
|
Restructuring
charges. Included in our GAAP presentation of cost of sales and
operating expenses, restructuring charges recorded are primarily
for employee compensation resulting from reductions in employee
headcount in connection with our company restructurings. We
exclude restructuring charges 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. U.S. 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 use to amortize 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 fourth
quarter and fiscal years 2016 and 2015, stock-based compensation
was allocated as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter
of
|
|
Fiscal
Years
|
|
|
|
(Dollars in
millions)
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
Cost of
sales
|
|
|
$
1.0
|
|
$
1.0
|
|
$
3.8
|
|
$
3.9
|
|
|
|
Research and
development
|
|
|
$
2.2
|
|
2.3
|
|
$
9.1
|
|
8.7
|
|
|
|
Sales and
Marketing
|
|
|
$
2.0
|
|
2.4
|
|
$
8.3
|
|
9.1
|
|
|
|
General and
administrative
|
|
|
$
7.4
|
|
7.1
|
|
$
31.4
|
|
28.4
|
|
|
|
|
|
|
$
12.6
|
|
$
12.8
|
|
$
52.6
|
|
$
50.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( 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, and/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 )
|
|
Litigation.
These amounts represents costs incurred to settle litigation,
generally as a result of an arbitration agreement. We have excluded
these costs from our non-GAAP measures because they are
non-recurring expenses that are not indicative of our ongoing
operating results. We further believe that excluding these items
from our non-GAAP results is useful to investors in that it allows
for period-over-period comparability.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( 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-fourth-quarter-and-full-year-2016-results-300404499.html
SOURCE Trimble