CHICAGO, Feb. 8 /PRNewswire-FirstCall/ -- NAVTEQ Corporation, a
leading global provider of digital maps for vehicle navigation and
location-based solutions, today reported record revenue and
operating income for the fourth quarter and fiscal year ended
December 31, 2006. Revenue in the quarter rose 24% over the fourth
quarter of 2005 to $180.7 million. Operating income grew 51% over
the prior year to $62.8 million. Net income was up 55% over last
year's fourth quarter to $42.9 million. Earnings per diluted share
grew 54% to $0.45, compared to $0.29 in the prior year's quarter.
For the full year 2006, revenue was $581.6 million, representing
growth of 17% over 2005. Operating income for the full year grew
14% to $153.7 million. Net income for 2006 was $110.0 million,
compared to $170.8 million in 2005. Earnings per diluted share for
the year totaled $1.15, compared to $1.81 in 2005. "The fourth
quarter brought to a close another exciting year for GPS technology
and digital maps," said Judson Green, President and Chief Executive
Officer. "We continued to grow our geographic footprint, rolled out
important technology enhancements, and announced two important
acquisitions that will expand our portfolio of content. While 2006
was a challenging year, we believe that our many accomplishments
have positioned us well for continued success in the years ahead."
Full year net income and earnings per diluted share for 2006 were
significantly lower than in 2005 due in part to the recording of a
net income tax benefit of $80.6 million, or $0.85 per diluted
share, during the third quarter of 2005. The recording of this
benefit was primarily related to the reversal of the company's
valuation allowance on deferred tax assets associated with net
operating loss and deferred interest carryforwards in the U.S.
NAVTEQ revenue from the Europe, Middle East & Africa (EMEA)
region totaled $113.6 million in the quarter, up 34% from the
fourth quarter of 2005. For the full year, EMEA revenue was $360.1
million, an increase of 14% over 2005. Excluding the impact of
foreign currency rate fluctuation, EMEA revenue for the fourth
quarter and full year 2006 grew 25% and 12%, respectively. Revenue
for the Americas region was $66.3 million in the quarter, a 17%
increase over the fourth quarter of 2005. For the full year,
Americas revenue was $216.2 million, representing 25% growth over
2005. Asia Pacific revenue was $0.8 million in the quarter and $5.4
million for the full year. Cash and marketable securities totaled
$322.5 million at December 31, 2006. Net cash provided by operating
activities for 2006 was $140.0 million. Business Outlook The
following forward-looking statements reflect NAVTEQ management's
expectations as of February 8, 2007. For the fiscal year 2007,
NAVTEQ expects revenue in the range of $720 million to $750 million
and earnings per diluted share of $1.20 to $1.26. This guidance
reflects the following key assumptions and projections: --
effective worldwide tax rate of approximately 29%; -- average
annual U.S. Dollar/Euro exchange rate of $1.27; -- average diluted
shares outstanding of approximately 100 million; -- stock-based
compensation expense of approximately $18 million; -- additional
rent expense of $3.5 million related to the corporate headquarters
move; and -- 12 months of financial results from the acquisition of
The Map Network, which closed December 15, 2006, and 10 months of
financial results from the pending acquisition of Traffic.com,
which is assumed to close in early March 2007. These acquisitions
are expected to contribute aggregate revenue of approximately $60
million and reduce earnings per diluted share by approximately
$0.25 on a standalone basis. NAVTEQ expects fixed asset capital
expenditures of approximately $60 million in 2007. This represents
a significant increase over prior years and is primarily due to: --
leasehold improvements related to the move to a new corporate
headquarters in the Chicago area; and -- Traffic.com capital
expenditures of approximately $15 million. Earnings Call
Information The information for the company's earnings release
conference call is as follows: When: Thursday, February 8, 2007 at
5:00 PM ET Where: http://investor.navteq.com/ How: Log on to the
web at the URL above or call to listen in at 800.638.4930 (North
America) or 617.614.3944 (international), passcode 70466928
Contact: The company will provide a telephone replay of the
conference call at 888.286.8010 (North America) or 617.801.6888
(international), passcode 91547504. The telephone replay will be
accessible from 7:00 PM ET Thursday, February 8, 2007 through 11:59
PM ET on Thursday, February 15, 2007. An on-demand replay of the
conference call will also be available online at
http://investor.navteq.com/ until March 8, 2007. About NAVTEQ
NAVTEQ is a leading provider of comprehensive digital map
information for automotive navigation systems, mobile navigation
devices, Internet-based mapping applications, and government and
business solutions. NAVTEQ creates the digital maps and map content
that power navigation and location-based services solutions around
the world. The Chicago-based company was founded in 1985 and has
approximately 2,200 employees located in 144 offices in 27
countries. NAVTEQ is a trademark in the U.S. and other countries.
All rights reserved. This document may include certain
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements include, but are not limited to, plans, objectives,
expectations and intentions and other statements contained in this
press release that are not historical facts and statements
identified by words such as "expects," "anticipates," "intends,"
"plans," "believes," "seeks," "estimates" or words of similar
meaning. These statements also include statements about the
company's future financial performance and operating results. The
statements are based on our current beliefs or expectations and are
inherently subject to various risks and uncertainties, including
those set forth under "Item 1A. Risk Factors" in the company's
Annual Report on Form 10-K for the year ended December 31, 2005 and
"Item 1A. Risk Factors" in the company's Quarterly Report on Form
10-Q for the quarter ended July 2, 2006, in each case as filed with
the Securities and Exchange Commission. Actual results may differ
materially from these expectations due to changes in global
political, economic, business, competitive, market and regulatory
factors. NAVTEQ does not undertake any obligation to update any
forward-looking statements contained in this document. A
Registration Statement on Form S-4, containing a proxy
statement/prospectus of NAVTEQ and Traffic.com relating to the
proposed merger of NAVTEQ and Traffic.com was declared effective by
the SEC on February 1, 2007. The definitive proxy
statement/prospectus has been sent to security holders of
Traffic.com seeking their approval of the proposed merger.
Investors and security holders are urged to read carefully the
definitive proxy statement/prospectus and any other relevant
documents filed by either party with the SEC before making any
voting or investment decision because they will contain important
information regarding NAVTEQ, Traffic.com and the proposed merger.
The documents filed with the SEC by NAVTEQ may be obtained free of
charge from NAVTEQ's website at http://www.navteq.com/ or by
directing a request to NAVTEQ Corporation, 222 Merchandise Mart,
Suite 900, Chicago, Illinois 60654, Attention: Investor Relations,
telephone: (312) 894-7500. The documents filed with the SEC by
Traffic.com may be obtained free of charge from Traffic.com's
website at http://www.traffic.com/ or by directing a request to
Traffic.com, Inc., 851 Duportail Road, Wayne, Pennsylvania, 19087,
Attention: Investor Relations, telephone: (610) 725-9700. The
documents filed by NAVTEQ and Traffic.com are also available free
of charge from the SEC's website at http://www.sec.gov/ . NAVTEQ,
Traffic.com and their respective executive officers, directors and
other employees may be deemed to be participants in the
solicitation of proxies from stockholders of Traffic.com in favor
of the proposed merger. Information about the executive officers,
directors and other employees of NAVTEQ and Traffic.com and their
direct and indirect interests, by security holdings or otherwise,
in the merger are described in the definitive proxy
statement/prospectus. This document shall not constitute an offer
to sell or the solicitation of an offer to buy any securities, nor
shall there be any sale of securities in any jurisdiction in which
such offer, solicitation or sale would be unlawful prior to the
registration or qualification under the securities laws of any such
jurisdiction. No offering of the securities shall be made except by
means of a prospectus meeting the requirements of Section 10 of the
Securities Act of 1933, as amended. (Logo:
http://www.newscom.com/cgi-bin/prnh/20060313/NAVTEQLOGO ) NAVTEQ
CORPORATION Condensed Consolidated Statements of Income (In
thousands, except per share data) Quarter Ended Year Ended Dec. 31,
Dec. 31, Dec. 31, Dec. 31, 2005 2006 2005 2006 (Unaudited)
(Unaudited) Net revenue $145,978 180,691 $496,512 581,619 Operating
costs and expenses: Database creation and distribution costs 67,177
77,515 236,405 275,449 Selling, general, and administrative
expenses 37,241 40,373 125,851 152,474 Total operating costs and
expenses 104,418 117,888 362,256 427,923 Operating income 41,560
62,803 134,256 153,696 Other income 2,095 2,956 4,735 10,249 Income
before income taxes 43,655 65,759 138,991 163,945 Income tax
(benefit) expense 15,989 22,816 (31,839) 54,481 Net income before
cumulative effect of change in accounting principle 27,666 42,943
170,830 109,464 Cumulative effect of change in accounting
principle, net of tax - - - 506 Net income $27,666 42,943 $170,830
109,970 Earnings per share of common stock before cumulative effect
of change in accounting principle - Basic $0.30 0.46 $1.90 1.18
Diluted $0.29 0.45 $1.81 1.14 Cumulative effect of change in
accounting principle per share of common stock - Basic $- - $- 0.01
Diluted $- - $- 0.01 Earnings per share of common stock - Basic
$0.30 0.46 $1.90 1.18 Diluted $0.29 0.45 $1.81 1.15 Weighted
average shares of common stock outstanding - Basic 91,361 93,470
90,115 93,029 Diluted 94,918 95,852 94,198 95,713 NAVTEQ
CORPORATION Condensed Consolidated Balance Sheets (In thousands)
Dec. 31, Dec. 31, 2005 2006 (Unaudited) Assets Current assets: Cash
and cash equivalents $85,070 122,335 Short-term marketable
securities 84,299 137,163 Accounts receivable, net 82,352 126,081
Deferred income taxes 42,584 9,232 Prepaid expenses and other
current assets 15,203 17,744 Total current assets 309,508 412,555
Property and equipment, net 20,828 27,462 Capitalized software
development costs, net 25,761 18,844 Long-term deferred income
taxes, net 169,264 184,645 Long-term marketable securities 49,429
63,033 Goodwill and acquired intangible assets, net 28,593 75,560
Deposits and other assets 12,505 12,602 Total assets $615,888
794,701 Liabilities and Stockholders' Equity Current liabilities:
Accounts payable $19,572 22,874 Accrued payroll and related
liabilities 28,365 33,571 Fair value of foreign currency derivative
3,265 - Other accrued expenses 28,658 40,327 Deferred revenue
38,703 43,639 Total current liabilities 118,563 140,411 Long-term
deferred revenue 3,446 2,874 Other long-term liabilities 3,815
2,035 Total liabilities 125,824 145,320 Stockholders' equity
490,064 649,381 Total liabilities and stockholders' equity $615,888
794,701 NAVTEQ CORPORATION Condensed Consolidated Statements of
Cash Flows (In thousands) Year Ended Dec. 31, 2005 Dec. 31, 2006
(Unaudited) Cash flows from operating activities: Net income
$170,830 109,970 Adjustments to reconcile net income to net cash
provided by operating activities: Depreciation and amortization
23,070 29,700 Deferred income taxes (77,737) 15,046 Stock
compensation expense 9,117 14,501 Tax benefit on non-qualified
stock options 40,936 - Cumulative effect of change in accounting
principle - (506) Provision for doubtful receivables 2,303 2,548
Noncash other 1,302 2,433 Changes in operating assets and
liabilities, net of effects of acquisitions (32,068) (33,684) Net
cash provided by operating activities 137,753 140,008 Cash flows
from investing activities: Acquisition of property and equipment
(10,466) (17,834) Capitalized software development costs (12,369)
(9,055) Net purchases of marketable securities (62,260) (65,408)
Payments for acquisitions, net of cash acquired (8,234) (42,216)
Purchase of investments (1,201) - Note receivable - (300) Net cash
used in investing activities (94,530) (134,813) Cash flows from
financing activities: Issuance of common stock and other equity
transactions 14,190 26,256 Net cash provided by financing
activities 14,190 26,256 Effect of exchange rate changes on cash
(2,444) 5,814 Net increase in cash and cash equivalents 54,969
37,265 Cash and cash equivalents at beginning of period 30,101
85,070 Cash and cash equivalents at end of period $85,070 122,335
http://www.newscom.com/cgi-bin/prnh/20060313/NAVTEQLOGO
http://photoarchive.ap.org/ DATASOURCE: NAVTEQ Corporation CONTACT:
Editorial, Jennifer Schuh of NAVTEQ Corporation, +1-312-894-3913,
or , or Bob Richter for NAVTEQ Corporation, +1-212-802-8588, or ,
or Investor Relations, Thomas R. Fox of NAVTEQ Corporation,
+1-312-894-7500, or Web site: http://www.navteq.com/
http://investor.navteq.com/
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