EX-99 3 ex991.txt EXHIBIT 99.1 Trimble Reports Record Fiscal Fourth Quarter Results Full-year 2002 Adjusted EPS increased by 100 percent to $0.72 SUNNYVALE, Calif., Feb. 4, 2003 - Trimble (Nasdaq: TRMB) today announced results for the fiscal fourth quarter ended January 3, 2003. The Company reported fourth quarter revenues of $124.6 million, versus $106.4 million in the fourth quarter of 2001. Earnings per share (EPS) for the fourth quarter on a Generally Accepted Accounting Principles (GAAP) basis were $0.14, versus a loss per share of ($0.26) in fourth quarter of 2001. Adjusted EPS for the fourth quarter of 2002 were $0.27, versus adjusted EPS of $0.02 in the fourth quarter of 2001. Adjusted EPS excludes any infrequent and acquisition related charges, being primarily $2.2 million in intangible amortization costs from acquisitions, $453,000 in restructuring charges related to the Company's cost-cutting measures, and a $1.45 million write down of a minority investment that are included when reporting on a GAAP basis. Fourth quarter adjusted and GAAP EPS were both calculated on a diluted basis using approximately 29.5 million shares. For the full year 2002, Trimble reported revenues of $466.6 million versus $475.3 million in 2001. Full year 2002 GAAP EPS were $0.36 versus a loss per share of ($0.93) in 2001. Adjusted EPS for the full year 2002 were $0.72 versus $0.36 in 2001. "We continued to see strengthening demand for our GPS products during the fourth quarter, especially in our Component Technologies and GPS survey businesses, which both reported record quarterly revenues," said Steven W. Berglund, president and CEO of Trimble. "The upside from the components business will probably not be repeated in the first quarter to the same magnitude. However, the continued strength we saw in GPS survey and machine control is encouraging, especially given the seasonal weakness that our core businesses typically experience during the fourth and first quarters. We remain optimistic about our growth prospects as customers continue to realize the benefits our solutions bring to their businesses." Fourth Quarter Business Segment Highlights Engineering and Construction (E&C) Total fourth quarter E&C revenues increased by 13 percent over the fourth quarter of 2001. Sales momentum for GPS machine control and survey products from the third quarter continued into the fourth quarter, and accelerated through the month of December. Both businesses were key contributors to the Company's better than anticipated fourth quarter results and experienced double-digit revenue growth over the fourth quarter of 2001. Construction Instruments benefited from stronger original equipment manufacturer (OEM) sales during the quarter. Trimble Field Solutions (TFS) - Agriculture and Geographic Information Systems (GIS) Trimble Field Solutions' fourth quarter revenue increased by approximately 22 percent over the fourth quarter of 2001. Within the GIS business, shipments of the $2.4 million in deferred orders for the GeoExplorer(R) CE series GPS handhelds began in October and contributed to a double-digit revenue increase over the fourth quarter of 2001. Agriculture also showed double-digit revenue growth over the fourth quarter of 2001, reflecting continued penetration of the Company's manual guidance and auto-steer products for farm machinery. Component Technologies (CT) CT reported a record quarter for the business, as fourth quarter revenues increased by approximately 57 percent over the fourth quarter of 2001. This was the second consecutive quarter of year-over-year quarterly growth for CT. While in-vehicle navigation and embedded products continued to meet expectations, the fourth quarter's upside was primarily due to unexpected strong demand from three key wireless infrastructure customers. Trimble Mobile Solutions (TMS) TMS continued to gain traction during the fourth quarter, as revenue related to the Televisant(TM) Mobile Resource Management System and associated hardware products increased by 125 percent sequentially. At the same time, divisional net loss decreased by approximately 26 percent from the third quarter. The Company noted several customers that had been piloting the solution during the third and fourth quarters have either begun full fleet implementations or are expected to do so in the first quarter of 2003. Portfolio Technologies Portfolio Technologies' results were mixed due to the deferral of an order until the first quarter in Trimble's military business. Tripod Data Systems (TDS) revenues were ahead of expectations due to strong sales of data collection hardware and software in the construction market. Separately, Trimble noted that beginning in the first quarter of 2003, TDS' revenue would be reported as part of the Company's Engineering and Construction segment due to the similarities in market focus of the two business areas. Other Highlights: Trimble announced that it had reached an agreement with its commercial banks to extend the revolver portion of its senior bank credit facility until April of 2004 with a borrowing capacity of $86 million. The terms remain the same as in the current revolver, which was due to expire in July of 2003. The Company also announced that on January 29, 2003, it settled the patent infringement lawsuit filed in January, 2001 by Philip M. Clegg in federal court in the state of Utah. Under the agreement, Trimble has purchased a fully paid up, non-exclusive license under U.S. Patent No. 4,807,131 from Mr. Clegg. Guidance For the first quarter ending April 4, 2003, the Company expects revenues will be between $116.0 and $119.0 million. Gross margins are expected to be approximately 50 percent. Operating expenses, including approximately $1.8 million of amortization of intangibles and an expected restructuring charge of approximately $300,000, are expected to be approximately $50.0 million. Net interest expense is expected to be approximately $3.2 million, and the income tax provision should be approximately $1 million (the equivalent of $0.03 per share in incremental income tax provision over the fourth quarter income tax provision of $250,000). The Company anticipates other non-operating expense to be approximately $1.5 million. Within these revenue guidelines, Trimble expects GAAP EPS to be between $0.08 and $0.11, assuming 29.75 million shares outstanding. Investor Conference Call / Webcast Details The Company will hold a conference call on Wednesday, February 4, 2003 at 8:00 AM Pacific Time to review its fourth quarter and year-end results. It will be broadcast live on the web at http://www.trimble.com/investors.html. A replay of the call will be available for 7 days beginning at 11:00 AM, Pacific Time. The replay number is (800) 642-1687, and the passcode is 7668003. About Trimble Trimble is a leading innovator of Global Positioning System (GPS) technology. In addition to providing advanced GPS components, Trimble augments GPS with other positioning technologies, as well as wireless communications and software, to create complete customer solutions. Trimble's worldwide presence and unique capabilities position the Company for growth in emerging applications including surveying, automobile navigation, machine guidance, asset tracking, wireless platforms, and telecommunications infrastructure. Founded in 1978 and headquartered in Sunnyvale, California, Trimble has more than 2,000 employees in more than 20 countries worldwide. For an interactive look at Company news and products, visit Trimble's Web site at http://www.trimble.com Forward Looking Statement: Certain statements made in this press release are forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and 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 the revenue and earnings per share estimates for the quarter ending April 4, 2003, the expected conversion of several customers who have been piloting Trimble Mobile Solutions into full fleet customers and the continued growth in sales of GPS component technologies and GPS survey and machine control products. 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. For example, the Company's early success at converting customers who have been piloting Trimble Mobile Solutions into full fleet customers may not be predictive of the rates current customers in its pilot program convert. The overall health of the economy and the uncertainty over a potential war with Iraq may result in reduced capital spending which could impair the Company's ability to reach the forecasted growth in GPS component technologies and GPS survey and machine control products. Whether the Company achieves its guidance for the first quarter will depend on a number of factors, including: budget constraints on state and municipal governments, and the continued uncertain economic climate, as well as the other 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. Undue reliance should not be placed on any forward-looking statement, contained herein. 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. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited)
Three Months Ended Twelve Months Ended -------------------------------- ------------------------------- Jan 3, Dec 28, Jan 3, Dec 28, 2003 2001 2003 2001 ----------------- ------------- --------------- ------------- Revenue $ 124,569 $ 106,405 $ 466,602 $ 475,292 Cost of sales 63,002 52,516 232,170 238,057 ----------------- ------------- --------------- ------------- Gross Margin 61,567 53,889 234,432 237,235 ----------------- ------------- --------------- ------------- Gross Margin (%) 49.4% 50.6% 50.2% 49.9% Operating expenses: Research and development 15,973 15,600 61,232 62,881 Sales and marketing 23,982 22,762 89,344 103,778 General and administrative 9,150 8,309 40,634 37,407 Restructuring charges 453 602 1,099 3,599 Amortization of goodwill & other purchased intangibles 2,166 7,301 8,300 29,389 ----------------- ------------- --------------- ------------- ----------------- ------------- --------------- ------------- Total operating expenses 51,724 54,574 200,609 237,054 ----------------- ------------- --------------- ------------- Operating income (loss) from continuing operations 9,843 (685) 33,823 181 Non-operating income (expense), net: Interest expense, net (3,155) (5,191) (14,051) (21,106) Other expense, net (1,505) (383) (1,171) (430) Foreign exchange gain/(loss), net 300 (786) (823) (237) Expenses for affliated operations, net (1,228) - (3,954) ----------------- ------------- --------------- ------------- Total non-operating expense, net (5,588) (6,360) (19,999) (21,773) ----------------- ------------- --------------- ------------- Income (Loss) from continuing operations before income taxes 4,255 (7,045) 13,824 (21,592) Income tax provision 250 200 3,500 1,900 ----------------- ------------- --------------- ------------- Net income (loss) from continuing operations 4,005 (7,245) 10,324 (23,492) Gain from discontinued operations - 613 - 613 ----------------- ------------- --------------- ------------- Net income (loss) $ 4,005 $ (6,632) $ 10,324 $ (22,879) ================= ============= =============== ============= Basic earnings per share : From continuing operations $ 0.14 $ (0.29) $ 0.36 $ (0.95) From discontinued operations $ - $ 0.02 $ - $ 0.02 ----------------- ------------- --------------- ------------- Total basic earnings per share $ 0.14 $ (0.26) $ 0.36 $ (0.93) ================= ============= =============== ============= Diluted earnings per share : From continuing operations $ 0.14 $ (0.29) $ 0.36 $ (0.95) From discontinued operations $ - $ 0.02 $ - $ 0.02 ----------------- ------------- --------------- ------------- Total diluted earnings per share $ 0.14 $ (0.26) $ 0.36 $ (0.93) ================= ============= =============== ============= Shares used in calculating earnings per share : Basic 29,173 25,273 28,573 24,727 ================= ============= =============== ============= Diluted 29,469 25,273 29,052 24,727 ================= ============= =============== =============
SUPPLEMENTAL DATA (In thousands, except per share data) (Unaudited)
Three Months Ended Twelve Months Ended -------------------------------- ------------------------------- Jan 3, Dec 28, Jan 3, Dec 28, 2003 2001 2003 2001 ----------------- ------------- --------------- ------------- Results from continuing operations excluding infrequent, and acquisition related adjustments: Income (Loss) from continuing operations before $ 4,255 $ (7,045) $ 13,824 $ (21,592) income taxes Infrequent & acquisition related charges : Amortization of goodwill & other purchased intangibles 2,166 7,301 8,300 29,389 Restructuring charges 453 602 1,099 3,599 Gain on sale of investment - - (165) (270) (Gain) Loss on sale of business - (127) - 113 Write down of investment 1,453 136 1,453 136 ----------------- ------------- --------------- ------------- Total infrequent and acquisition related charges 4,072 7,912 10,687 32,967 ----------------- ------------- --------------- ------------- Adjusted income before taxes 8,327 867 24,511 11,375 Income tax provision 250 475 3,500 1,900 ----------------- ------------- --------------- ------------- Adjusted net income $ 8,077 $ 392 $ 21,011 $ 9,475 ================= ============= =============== ============= Diluted adjusted net earnings per share $ 0.27 $ 0.02 $ 0.72 $ 0.36 ================= ============= =============== ============= Shares used in calculating diluted adjusted net earnings per share 29,469 25,985 29,052 25,987 ================= ============= =============== =============
CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited)
Jan 3, Dec 28, 2003 2001 ----------------- ---------------- Assets Current assets: Cash and cash equivalents $ 28,679 $ 31,078 Accounts and other receivables, net 79,645 71,680 Inventories 61,144 51,810 Other current assets 8,477 6,536 ----------------- ---------------- Total current assets 177,945 161,104 Property and equipment, net 22,037 27,542 Goodwill and other purchased intangible assets, net 229,171 220,304 Deferred income taxes 417 383 Other assets 12,086 10,062 ----------------- ---------------- Total assets $ 441,656 $ 419,395 ================= ================ Liabilities and Shareholders' Equity Current liabilities: Bank and other short-term borrowings $ 6,556 $ 40,025 Current portion of long-term debt 24,104 23,443 Accounts payable 30,669 21,494 Accrued compensation and benefits 17,728 13,786 Accrued liabilities 27,394 35,649 Income taxes payable 6,450 7,403 ----------------- ---------------- Total current liabilities 112,901 141,800 Non-current portion of long-term debt and other liabilities 107,865 127,097 Deferred gain 10,792 - Deferred income tax 2,561 7,347 Other non-current liabilities 6,186 4,662 ----------------- ---------------- Total liabilities 240,305 280,906 ----------------- ---------------- Shareholders' equity: Common stock 225,872 191,224 Accumulated deficit (23,495) (33,819) Accumulated other comprehensive loss (1,026) (18,916) ----------------- ---------------- Total shareholders' equity 201,351 138,489 ----------------- ---------------- Total liabilities and shareholders' equity $ 441,656 $ 419,395 ================= ================
CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
Three Months Ended Jan 3, Dec 28, 2003 2001 --------------------- Cash flow from operating activites: Net Income/( Loss) 4,005 (6,632) Adjustment to reconcile net income (loss) to net cash provided by operating activities: Depreciation expense 2,046 2,273 Amortization expense 2,393 8,218 Provision for bad debt 1,853 2,128 Amortization of deferred gain - (391) Other 943 296 Add decrease (increase) in assets: Accounts receivables, net 517 7,975 Inventories (3,776) 5,161 Deferred income taxes 733 (65) Other current and noncurrent assets (1,525) 165 Effect of foreign currency translation adjustment 2,713 (994) Add increase (decrease) in liablilities: Accounts payable 4,707 (1,549) Accrued compensation (361) (4,662) Other accrued liabilities (1,281) 239 Income taxes payable (1,527) 1,968 Net cash provided by operating activities 11,440 14,130 Cash flows from investing activities: Acquisitions, net of cash acquired - 456 Acquisition of property and equipment, net (1,683) (888) Proceeds from disposal of property and equipment - 1,177 Capitalized patents, software and intangibles (1,686) 232 Net cash provided by (used in) investing activities (3,369) 977 Cash flow from financing activities: Issuance of common stock 2,091 27,030 Collections(Payments) of notes receivable (492) 468 Proceeds from long-term debt and revolving credit lines - - Payments on long-term debt and revolving credit lines (11,343) (53,930) Net cash used in financing activities (9,744) (26,432) Net increase in cash and cash equivalents (1,673) (11,325) Cash and cash equivalents - beginning of period 30,352 42,403 Cash and cash equivalents - end of period $ 28,679 $ 31,078 ========= =========== Supplemental disclosures of cash flow information: Cash paid (refunded) during the period for: Interest $ 1,052 $ 2,447 ======== ========== Income taxes, net of refunds $ 729 $ (601) ======== ==========
TRIMBLE NAVIGATION LIMITED Financial Dashboard (Dollars in thousands, except EPS)
-------------------------------------------------- ---------------------------------------------- Q1'01 Q2'01 Q3'01 Q4'01 Q1'02 Q2'02 Q3'02 Q4'02 Actual Actual Actual Actual Actual Actual Actual Actual ================================================================================================= Income Statement Metrics -------------------------------------------------- ---------------------------------------------- Total Revenue $117,863 $133,587 $117,437 $106,405 $104,029 $123,256 $114,748 $124,569 -------------------------------------------------- ---------------------------------------------- Engineering & Construction 73,713 86,934 74,221 69,076 68,410 79,891 78,993 78,196 Trimble Field Solutions 17,007 18,963 18,017 14,532 18,031 18,212 13,252 17,764 Component Technologies 16,162 16,615 12,602 12,704 10,025 15,175 14,607 19,948 Trimble Mobile Solutions 2,925 2,963 4,412 3,491 2,352 1,840 2,244 2,050 Portfolio Technologies 8,056 8,112 8,185 6,602 5,211 8,138 5,652 6,611 ------------------------------------------------------------------------------------------------- Gross Margin 48.8% 49.1% 51.4% 50.6% 52.2% 49.5% 50.2% 49.4% ------------------------------------------------------------------------------------------------- Total Segment Income $12,214 $21,267 $18,240 $15,782 $14,059 $20,720 $17,161 $19,613 ------------------------------------------------------------------------------------------------- Engineering & Construction 10,305 17,487 13,302 10,531 11,668 15,151 15,232 12,313 Trimble Field Solutions 3,113 4,016 4,120 2,403 4,517 3,869 1,445 2,564 Component Technologies 2,233 3,011 2,160 3,478 1,225 2,374 2,563 5,128 Trimble Mobile Solutions (2,800) (2,651) (1,719) (2,289) (3,062) (2,844) (2,836) (2,088) Portfolio Businesses (637) (596) 377 1,659 (289) 2,170 757 1,696 Corporate and Other Charges ($17,106) ($17,285) ($16,464) ($16,467) ($9,971) ($9,038) ($8,951) ($9,770) Non-operating expense and income taxes ($6,695) ($5,956) ($4,462) ($5,947) ($4,803) ($7,356) ($5,502) ($5,838) -------------------------------------------------- ---------------------------------------------- Net Income (loss) ($11,587) ($1,974) ($2,686) ($6,632) ($715) $4,326 $2,708 $4,005 ================================================== ============================================== EBITDA $4,937 $14,511 $12,953 $8,637 $8,877 $14,978 $10,548 $11,622 Amortization of Goodwill and Intangibles 7,316 7,396 7,378 7,301 1,978 2,324 1,832 2,166 Depreciation 2,993 3,008 2,944 3,190 2,671 2,913 2,220 2,046 GAAP EPS ($0.48) ($0.08) ($0.11) ($0.26) ($0.03) $0.15 $0.09 $0.14 Adjusted EPS ($0.09) $0.26 $0.19 $0.02 $0.06 $0.24 $0.16 $0.27 ----------------------------------------------------------------------------------------------------------------------------------- Balance Sheet and Liquidity Metrics Cash & Cash Equivalents $43,998 $27,822 $42,403 $31,078 $33,021 $27,736 $30,352 $28,679 Accounts Receivables, Net $78,659 $84,362 $79,229 $69,195 $71,430 $82,159 $79,215 $77,618 Inventories, Net $71,742 $68,158 $58,847 $51,810 $53,487 $52,594 $57,368 $61,144 Total Debt $259,564 $244,220 $244,495 $190,565 $169,738 $158,865 $149,868 $138,525 ------------------------------------------------------------------------------------------------- Total Short Term Debt 130,386 123,304 178,595 63,468 72,670 66,799 62,336 30,660 ------------------------------------------------------------------------------------------------- Current Portion of Term 16,000 13,000 14,000 20,000 21,000 21,000 21,000 24,000 Loan 3.5% Current Portion of Thermo 40,000 40,000 84,000 0 0 0 0 0 Electron note 10.4% Revolving Credit Facility 72,000 67,000 77,000 40,000 48,000 43,000 40,000 6,550 3.5% Other 2,386 3,304 3,595 3,468 3,670 2,799 1,336 110 ------------------------------------------------------------------------------------------------- Total Long Term Debt 129,178 120,916 65,900 127,097 97,067 92,066 87,532 107,865 ------------------------------------------------------------------------------------------------- Term Loan 3.6% 84,000 79,000 64,000 41,300 26,600 21,600 16,600 8,600 Thermo Electron note 10.4% 40,000 40,000 0 84,000 68,670 68,670 69,136 69,136 Revolving Credit Facility 3.5% 0 0 0 0 0 0 0 28,450 Other 5,178 1,916 1,900 1,797 1,797 1,796 1,796 1,679 Equity $116,321 $117,955 $118,259 $138,489 $155,195 $180,636 $187,323 $201,351 Working Capital ($27,582) ($28,038) ($74,566) $19,304 $17,430 $26,724 $34,114 $68,044 Capital Expenditures $2,134 $2,364 $1,868 $888 $1,783 $2,430 $1,261 $1,683 Cash Flow from Operations* ($3,553) ($1,337) $15,853 $13,531 $9,247 $6,933 $8,884 $11,440 ----------------------------------------------------------------------------------------------------------------------------------- Financial Ratios Days Sales Outstanding 51 54 56 53 50 58 52 58 Days Sales in Inventory 108 91 94 90 98 77 92 68 Current ratio 0.9 0.9 0.7 1.1 1.1 1.2 1.2 1.6 Debt to Equity 2.2 2.1 2.1 1.4 1.1 0.9 0.8 0.7 ----------------------------------------------------------------------------------------------------------------------------------- Other Headcount 2,247 2,245 2,153 2,099 2,051 2,068 2,067 2,050 -----------------------------------------------------------------------------------------------------------------------------------
Notes: Trimble Field Solutions consists of Geographic Information Systems (GIS) and Agriculture. Trimble Mobile Solutions consists of Mobile Positioning and Communications (MPC) and Trimble Information Systems (TIS). Portfolio Technologies consists of Tripod Data Systems (TDS) and Military and Advanced Systems (MAS). * Cash Flow from Operations includes impact of exchange rate changes on cash.