EXHIBIT 99.1
Confidential
FOR: TRIMBLE NAVIGATION LIMITED
APPROVED BY: Steven W. Berglund, CEO
CONTACT: Investor Relations
Brian Siegel
(408) 481-6914
investor_relations@trimble.com
Media
Lea Ann McNabb
(408) 481-7808
leaann_mcnabb@trimble.com
The Ruth Group
David Pasquale
(646) 536-7006
Trimble Announces Fiscal Fourth Quarter and Year-End Results
SUNNYVALE, Calif., Jan. 30, 2002 - Trimble (Nasdaq: TRMB) today announced
results for the fiscal fourth quarter and year ended December 28, 2001. The
Company reported fourth quarter revenues of $106.4 million, with adjusted
earnings per share (EPS) of $0.02. Adjusted EPS excludes any one-time and
acquisition related charges, being primarily goodwill and intangible
amortization costs from acquisitions, and restructuring charges related to the
Company's cost-cutting measures that would be included when reporting on a
Generally Accepted Accounting Principles (GAAP) basis. GAAP EPS for the fourth
quarter and entire fiscal 2001 were ($0.26) and ($0.93), respectively.
For fiscal year 2001, revenue and adjusted EPS were $475.3 million and $0.36,
respectively. This compares to pro-forma (reflecting the acquisition of Spectra
Precision Group and Tripod Data Systems, and the sales of the Company's
commercial and business airline operations) revenue of $498.2 and adjusted EPS
of $1.22 in fiscal 2000.
The Company reported earnings before interest, tax, depreciation and
amortization (EBITDA), before restructuring charges, of $10.1 million in the
fourth fiscal quarter, and $45.2 million for fiscal 2001.
"Within a challenging economy, Trimble continued to strengthen its competitive
and financial position in 2001," said Steven W. Berglund, president and CEO of
Trimble. "Early in 2001, we saw signs of an economic downturn and implemented
new cost cutting initiatives in addition to those already in place as part of
the Spectra Precision acquisition. These early actions helped bring our fixed
cost structure in line with what we believed to be recessionary conditions and
allowed us to remain profitable on an adjusted basis, as the economy further
declined. We took further actions over the past 6 weeks by raising approximately
$46 million in a private equity placement. The proceeds were used to reduce our
overall debt level and future interest expense. In addition to paying down debt
with the proceeds of the private equity deal, during the fourth quarter, we also
paid an additional $29 million using cash from operations. The result of these
actions was the lowering of our break-even point."
"At the same time we were cutting costs, we selectively invested in initiatives
that we believe will create growth including the introduction of new products,
the expansion of our distribution channels and new alliances. Of significance
was the creation of Trimble Mobile Solutions (TMS). TMS is intended to enable us
to build upon our existing fleet management hardware offerings to offer fully
bundled solutions to the mobile security, telematics, workforce management and
targeted fleet management markets. We are currently adding capabilities in this
market and expect to begin to see tangible results in the second half of 2002."
Business Segment Detail for Fiscal Fourth Quarter and Year End 2001
Engineering and Construction revenues were $69.1 million versus $74.5 million in
the year ago quarter. For the year, Engineering and Construction revenues were
$303.9 million, or 64 percent of consolidated revenue, versus $310.4 million, or
62 percent of revenue in fiscal 2000, on a pro forma basis.
Fleet and Asset Management revenues were $13.7 million as compared to $16.9
million in the year ago quarter. For the year, revenues were $57.7 million, or
12 percent of consolidated revenue, as compared to $65.1 million, or 13 percent
of revenue in 2000.
Revenues from the Components Technologies segment were $12.7 million as compared
to $18.4 million in the year ago quarter. For the year, revenues were $58.1
million, or 12 percent of consolidated revenue versus $60.2 million or 12
percent of revenue in 2000.
Agriculture revenues for the fourth quarter were $4.3 million versus $7.9
million in the year ago quarter. For the year, revenues were $24.6 million or 5
percent of consolidated revenue, versus $34.1 million or 7 percent of revenue in
2000, on a pro forma basis.
Revenues from Portfolio Technologies were $6.6 million for the fourth quarter
versus $6.4m in the year ago quarter. For the year, revenues were $31 million or
7% of consolidated revenue, versus $28.4 million or 6% of revenue in 2000, on a
pro forma basis.
Looking Ahead
Berglund concluded, "We remain cautious and still believe the economy will
continue to be a challenge in 2002. However, we continue to build capabilities
that will serve our customers and to take strategic actions designed to further
strengthen Trimble's market position. These actions include new products,
alliances with industry leaders, improved systems and development of our
distribution channels. When customer buying behavior and the overall economy
improve, we believe that these actions, combined with our cost cutting, will
position Trimble to demonstrate improved financial performance."
The Company expects revenues for its first fiscal quarter ending March 29, 2002
to be approximately $104 to $106 million, with adjusted EPS in a range from
breakeven to $0.03. While the Company has limited visibility into the entire
fiscal year 2002, it expects to achieve an increase in revenue and adjusted EPS
for the second fiscal quarter due to the normal seasonality of the engineering
and construction market.
The Company will hold a conference call on Wednesday, January 30, 2002 at 8:00
AM Pacific Time to review its fourth quarter results. The conference call will
also be broadcast live on the web at www.trimble.com, on the Investors Relations
page. A replay of the call will be available for 48 hours beginning at 11:00 AM,
Pacific Time. The replay number is (800) 642-1687, and the passcode is 2897303.
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, Calif., 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
Certain statements made in this press release are forward looking statements
within the meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934, and are made pursuant to the safe harbor
provisions of the Securities Litigation Reform Act of 1995. These forward
looking statements are subject to change, and actual results may differ from
those set forth in this press release due to certain risks and uncertainties,
including successful development and market acceptance of new product offerings
and continued demand for existing products and continued integration of acquired
companies. Among other things, these results may not continue beyond the current
quarter due to seasonal and economic trends and additional competitive issues
that may have an adverse effect on the ongoing positioning and growth of the
Company. These and other risks are 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.
TRIMBLE
CONSOLIDATED BALANCE SHEET
(In thousands)
(Unaudited)
Dec 28, Sept 28, Dec 29,
2001 2001 2000
Assets
Current assets
Cash and cash equivalents $31,078 $42,403 $40,876
Accounts and other receivable, net 71,680 81,783 83,600
Inventories 52,160 58,847 60,846
Other current assets 6,536 7,404 8,017
Total current assets 161,454 190,437 193,339
Net property and equipment 27,542 30,689 34,059
Intangible assets 220,304 229,334 249,832
Deferred tax assets 383 493 531
Other assets 10,062 10,902 12,743
Total Assets $419,745 $461,855 $490,504
Liabilities and Shareholders' Equity
Current liabilities
Bank & other short-term borrowings $40,025 $77,062 $62,000
Current portion of long-term debt 107,443 101,533 51,721
Accounts payable 21,494 23,043 26,448
Accrued compensation and benefits 13,786 19,080 16,771
Accrued liabilities 35,999 38,850 41,833
Income taxes payable 7,403 5,435 5,005
Total current liabilities 226,150 265,003 203,778
Noncurrent portion of long-term debt 43,097 65,900 137,341
Deferred tax liabilities 7,347 7,257 8,230
Other noncurrent liabilities 4,662 5,436 6,212
Total liabilities 281,256 343,596 355,561
Shareholders' equity
Common stock 190,931 163,901 153,853
Common stock warrants 293 293 993
Retained earnings (deficit) (33,819) (27,187) (10,940)
Accumulated other comprehensive loss (187) (245) 0
Cumulative translation adjustment (18,729) (18,503) (8,963)
Total shareholders' equity 138,489 118,259 134,943
Total liabilities
and shareholders' equity $419,745 $461,855 $490,504
TRIMBLE
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended Twelve Months Ended
Dec 28, Dec 29, Dec 28, Dec 29,
2001 2000 2001 2000
Total revenue $106,405 $124,167 $475,292 $369,798
Cost of sales 52,516 62,468 238,057 173,237
Gross margin 53,889 61,699 237,235 196,561
Gross margin (%) 50.6% 49.7% 49.9% 53.2%
Operating expenses:
Research and development 15,600 14,621 62,881 46,520
Sales and marketing 22,762 28,143 103,778 79,901
General and administrative 8,309 7,982 37,407 30,514
Restructuring charges 602 -- 1,875 --
Amortization of
goodwill & other
purchased intangibles 7,301 7,485 29,389 13,407
Total operating expenses 54,574 58,231 235,330 170,342
Operating income (loss) (685) 3,468 1,905 26,219
Non-operating income (expense):
Interest expense, net (5,191) 409 (21,106) 4,478
Other expense (383) (6,571) (2,154) (14,561)
Foreign exchange loss (786) (214) (237) (376)
Total non-operating
expense (6,360) (6,376) (23,497) (10,459)
Income (loss) before taxes (7,045) (2,908) (21,592) 15,760
Income tax provision (benefit) 200 (292) 1,900 1,575
Net income (loss)
from Continuing Operations (7,245) (2,616) (23,492) 14,185
Gain from
Discontinued Operations $613 $-- $613 $--
Net Income (loss) $(6,632) $(2,616) $(22,879) $14,185
Basic net income
(loss) per share $(0.26) $(0.11) $(0.93) $0.60
Shares used in calculating
basic net income
(loss) per share 25,273 23,792 24,727 23,601
Diluted net income
(loss) per share $(0.26) $(0.11) $(0.93) $0.55
Shares used in
calculating diluted net
income (loss) per share 25,273 23,792 24,727 25,976
Supplemental data:
Income (loss) before taxes (7,045) (2,908) (21,592) 15,760
One time & acquisition related charges
Inventory purchase
accounting adjustment
(Cost of sales) -- 1,692 -- 4,600
Amortization of
goodwill & other
purchased intangibles 7,301 7,485 29,389 13,407
Debt extinguishments
costs (Interest expense) -- -- -- 1,185
Restructuring charges 602 -- 1,875 --
Gain on sale of minority
investment (Other expense) -- (250) (270) (1,274)
Loss on sale of business
(Other expense) (127) -- 1,837 --
Write-down of investment
(Other expense) 136 -- 136 --
Boulder relocation costs
(General and administrative) -- 117 -- 917
Total one time charges 7,912 9,044 32,967 18,835
Adjusted net income
before taxes 867 6,136 11,375 34,595
Income tax provision 475 614 1,900 3,460
Adjusted net income $392 $5,522 $9,475 $31,136
Shares used in
calculating diluted
adjusted net income
per share 25,985 25,474 25,987 25,976
Diluted adjusted
net income per share $0.02 $0.22 $0.36 $1.20