EXHIBIT 99.1
Trimble Reports Record Quarterly Results
o Record revenues of $138.1 million versus guidance of $129.0 - $132.0
million;
o Record GAAP EPS of $0.25;
o GAAP EPS were reduced by: an $0.11 per share non-recurring/non-cash charge
related to the Company's debt refinancing announced on June 25, 2003; $0.05
per share for amortization of purchased intangibles; and $0.02 per share
for restructuring activities;
SUNNYVALE, Calif., July 29, 2003 - Trimble (Nasdaq: TRMB) today announced
results for its second fiscal quarter ended July 4, 2003. The Company reported
second quarter revenues of approximately $138.1 million, versus approximately
$123.3 million in the second quarter of 2002. Second quarter is traditionally
the Company's seasonally strongest quarter due to the buying season in the
Engineering and Construction market.
GAAP EPS for the second quarter were $0.25, which were reduced by an approximate
$0.11 per share non-recurring/non-cash charge recorded as Interest Expense,
related to the Company's debt refinancing announced on June 25, 2003. This
charge was not included in the Company's guidance of $0.25 - $0.29 given in its
April 29, 2003 earnings release. GAAP EPS were also reduced by approximately
$0.05 per share for amortization of purchased intangibles and approximately
$0.02 per share for restructuring activities. GAAP EPS were $0.15 for the second
quarter of 2002, and were reduced by approximately $0.08 per share for
amortization of purchased intangibles and approximately $0.01 per for
restructuring activities. Second quarter 2003 GAAP EPS were calculated on a
diluted basis using approximately 33.1 million shares.
"Trimble's record financial results are a result of our efforts to establish
market leadership in our core businesses through a combination of innovative
products, targeted distribution channels and strong customer support," said
Steven W. Berglund, president and CEO of Trimble. "Following a strong first
quarter, demand remained healthy for our surveying and construction products
with market momentum in survey instruments leading to record overall Engineering
and Construction sales in the quarter. Component Technologies demonstrated
continuing strength in the wireless infrastructure area and produced excellent
operating margins. Field Solutions results reflected strong year over year
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growth in both geographic information systems products and automated
agricultural guidance. Mobile Solutions continued to progress as subscribers
grew more than 80 percent during the quarter. These positive results, combined
with the commencement of operations for the recently announced Nikon-Trimble
joint venture and Applanix acquisition, position us well for future growth."
Second Fiscal Quarter Business Segment Highlights
Engineering and Construction (E&C)
Total second quarter E&C revenues increased by 14 percent over the second
quarter of 2002. Sales of GPS survey products remained strong, leading to
double-digit sales growth for the entire survey business over the second quarter
of 2002. Sales of Tripod Data Systems and construction instruments products were
also strong during the quarter, with each reporting double-digit sales growth
over the second quarter of 2002. While up strongly on a sequential basis,
machine control sales did not grow versus the second quarter of 2002,
principally due to adverse weather conditions in parts of the United States. The
second quarter of 2002 was also strong as it followed the announcement of the
joint venture with Caterpillar.
Field Solutions (TFS) - Agriculture and Geographic Information Systems (GIS)
Second quarter revenues for TFS increased by approximately 10 percent over the
second quarter of 2002. GIS product sales increased by double-digits over the
second quarter of 2002, driven by demand from state and municipal governments
ahead of their June 30 fiscal year end. Agriculture product sales were
seasonally weak during the quarter, although high-end guidance products
continued to gain momentum in new geographies and crop types.
Component Technologies (CT)
Second quarter revenues for CT increased by approximately 11 percent over the
second quarter of 2002. Continued strong demand for wireless infrastructure
products led to a favorable product mix. This favorable product mix, combined
with increased volumes in automotive and embedded products, and cost reductions
related to the transfer of the business' manufacturing operations from
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California to China during the second half of 2002 led to record operating
margins for CT.
Mobile Solutions (TMS)
TMS reported a 15 percent sequential increase in revenue during the second
quarter, as it continued to gain traction in the ready mix concrete market.
Revenue related to the Televisant(TM) Fleet Management System and associated
hardware products increased by over 20 percent sequentially, while subscribers
increased by more than 80 percent during the quarter.
Guidance
For the third quarter ending October 3, 2003, the Company expects revenues will
be between $129.0 and $132.0 million, which represents a 12 - 15 percent
increase over the third quarter of 2002. Gross margins are expected to be
approximately 50 percent. Operating expenses, including approximately $2.0
million of amortization of intangibles are expected to be approximately $54.0
million. Net interest expense is expected to be approximately $1.1 million, and
other non-operating expense should be approximately $1.6 million. The income tax
provision should be approximately $1.4 million. Within these revenue guidelines,
Trimble expects GAAP EPS to be between $0.19 and $0.23, which represents a 111 -
155 percent increase over the third quarter of last year. GAAP EPS guidance was
calculated assuming 34.5 million shares outstanding.
Investor Conference Call / Webcast Details
The Company will hold a conference call on Tuesday, July 29, 2003 at 2:00 PM
Pacific Time to review its second quarter 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 5:00 PM, Pacific Time. The replay number is
(800) 642-1687, and the passcode is 1650806.
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
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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, gross margin, operating expenses,
net interest expense, non-operating expense, income tax provision and earnings
per share estimates for the quarter ending Oct 3, 2003. 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, recent strong demand for the Company's products may not continue.
Any failure to achieve predicted results could negatively impact the Company's
revenues and gross margin. The overall health of the economy and international
markets may result in reduced capital spending which could impair the Company's
ability to reach the forecasted results. In addition, the Nikon-Trimble joint
venture and Applanix acquisition may not achieve anticipated results. Whether
the Company achieves its guidance for the third quarter will also depend on a
number of other factors, including the 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.
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CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
<table>
<caption>
Three Months Ended Six Months Ended
------------------ ----------------
July 4, Jun 28, July 4, Jun 28,
2003 2002 2003 2002
---- ---- ---- ----
<s> <c> <c> <c> <c>
Revenue $138,132 $123,256 $265,457 $227,285
Cost of revenue 67,037 62,305 132,607 112,001
------ ------ ------- -------
Gross Margin 71,095 60,951 132,850 115,284
------ ------ ------- -------
Gross Margin (%) 51.5% 49.5% 50.0% 50.7%
Operating expenses:
Research and development 17,077 14,986 33,117 30,024
Sales and marketing 24,560 21,897 48,557 44,024
General and administrative 9,896 9,874 18,531 20,672
Restructuring charges 716 188 1,106 492
Amortization of purchased intangibles 1,725 2,324 3,520 4,302
----- ----- ----- -----
Total operating expenses 53,974 49,269 104,831 99,514
------ ------ ------- ------
Operating income from continuing operations 17,121 11,682 28,019 15,770
Non-operating income (expense), net:
Interest expense, net (6,014) (3,415) (9,389) (7,358)
Foreign exchange gain / (loss), net 391 (710) 483 (769)
Other income / (expense), net (92) (21) (139) 178
Expenses for affiliated operations, net (1,901) (1,210) (3,116) (1,210)
------- ------ ------- -------
Total non-operating expense, net (7,616) (5,356) (12,161) (9,159)
------- ------- -------- -------
Income from continuing operations before income taxes 9,505 6,326 15,858 6,611
Income tax provision 1,400 2,000 2,400 3,000
----- ----- ----- -----
Net income 8,105 4,326 13,458 3,611
===== ===== ====== =====
Earnings per share :
Basic $ 0.26 $ 0.15 $ 0.43 $ 0.13
Diluted $ 0.25 $ 0.15 $ 0.41 $ 0.13
Shares used in calculating earnings per share :
Basic 31,474 28,339 31,474 28,149
====== ====== ====== ======
Diluted 33,079 29,058 32,690 28,758
====== ====== ====== ======
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CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
July 4, Jan 3,
2003 2003
---- ----
Assets
Current assets:
Cash and cash equivalents $ 30,825 $ 28,679
Accounts and other receivables, net 114,661 79,645
Inventories, net 71,108 61,144
Other current assets 7,398 8,477
----- -----
Total current assets 223,992 177,945
Property and equipment, net 21,591 22,037
Goodwill and other purchased intangible assets, net 235,300 229,171
Deferred income taxes 434 417
Other assets 22,985 12,086
Total assets $ 504,302 $ 441,656
========== ==========
Liabilities and Shareholders' Equity
Current liabilities:
Bank and other short-term borrowings $ - $ 6,556
Current portion of long-term debt 12,623 24,104
Accounts payable 36,719 30,669
Accrued compensation and benefits 22,467 17,728
Accrued liabilities 22,644 27,394
Deferred income tax 1,385 -
Income taxes payable 7,187 6,450
----- -----
Total current liabilities 103,025 112,901
Non-current portion of long-term debt 98,114 107,865
Deferred gain on joint venture 10,377 10,792
Deferred income tax 2,779 2,561
Other non-current liabilities 6,434 6,186
----- -----
Total liabilities 220,729 240,305
------- -------
Shareholders' equity:
Common stock 277,719 225,872
Accumulated deficit (10,037) (23,495)
Accumulated other comprehensive income/(loss) 15,891 (1,026)
------ ------
Total shareholders' equity 283,573 201,351
------- -------
Total liabilities and shareholders' equity $ 504,302 $ 441,656
========== ==========
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
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<caption>
Three Months Ended Six Months Ended
------------------ ----------------
July 4, Jun 28, July 4, Jun 28,
2003 2002 2003 2002
---- ---- ---- ----
<s> <c> <c> <c> <c>
Cash flow from operating activities:
Net Income 8,105 4,326 13,458 3,611
Adjustment to reconcile net income to net cash provided by
operating activities:
Depreciation expense 2,243 2,914 4,460 5,585
Amortization expense 1,931 2,511 3,908 4,697
Provision for doubtful accounts (299) 310 150 1,542
Amortization of deferred gain - (398) - (796)
Amortization of debt issuance cost 2,760 - 3,273 -
Deferred income taxes 1,127 1,044 1,588 1,044
Other 1,236 89 1,508 892
Add decrease (increase) in assets:
Accounts receivables, net (17,436) (11,644) (32,550) (14,001)
Inventories (7,425) 893 (10,795) (784)
Other current and non-current assets (1,518) (259) (2,877) (1,239)
Effect of foreign currency translation adjustment 3,124 2,041 5,132 757
Add increase (decrease) in liabilities:
Accounts payable 6,208 2,720 6,050 2,272
Accrued compensation and benefits 4,606 (444) 4,739 2,457
Accrued liabilities (2,425) 1,788 (1,999) (2,752)
Deferred gain - short term - (21) - 324
Deferred gain on joint venture (194) - (415) 11,000
Income taxes payable 52 1,063 737 1,571
-- ----- --- -----
Net cash provided by (used in) operating activities 2,095 6,933 (3,633) 16,180
Cash flows from investing activities:
Acquisitions, net of cash acquired (5,056) - (5,453) (2,158)
Acquisition of property and equipment (2,015) (2,430) (3,500) (4,213)
Proceeds from disposal of property and equipment (28) - 28 -
Cost of capitalized patents (9) - (13) (48)
-- --- ---
Net cash used in investing activities (7,108) (2,430) (8,938) (6,419)
Cash flow from financing activities:
Issuance of common stock 43,846 1,829 44,386 19,262
Collections(Payments) of notes receivable 833 (745) 645 (665)
Proceeds from (Payments on) long-term debt and revolving
credit lines (22,370) (10,872) (30,314) (31,700)
------- ------- ------- -------
Net cash provided by (used in) financing activities 22,309 (9,788) 14,717 (13,103)
Net increase (decrease) in cash and cash equivalents 17,296 (5,285) 2,146 (3,342)
Cash and cash equivalents - beginning of period 13,529 33,021 28,679 31,078
------ ------ ------ ------
Cash and cash equivalents - end of period $ 30,825 $ 27,736 $ 30,825 $ 27,736
======== ======== ========= =========
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest $ 7,117 $ 3,007 $ 7,993 $ 10,294
======== ======== ========= =========
Income taxes, net of refunds $ 359 $ 511 $ 290 $ 1,733
======== ======== ========= =========
</table>
<table>
<caption>
Q2'02 Q1'03 Q2'03
Actual Actual Actual
------ ------ ------
<s> <c> <c> <c>
Income Statement Metrics
Total Revenue $ 23,256 $ 127,325 $ 138,132
-------- ---------- ---------
Engineering & Construction 83,856 85,663 95,797
Field Solutions 18,212 20,681 19,950
Component Technologies 15,175 15,866 16,820
Mobile Solutions 1,840 3,168 3,651
Portfolio Technologies 4,173 1,947 1,914
Gross Margin 49.5% 48.5% 51.5%
----- ----- -----
Total Segment Income $ 8,031 $ 17,970 $ 24,325
-------- ---------- ---------
Engineering & Construction 15,124 12,240 18,623
Field Solutions 3,152 3,314 3,555
Component Technologies 2,173 3,855 4,558
Mobile Solutions (3,172) (687) (2,025)
Portfolio Technologies 754 (752) (386)
Corporate and Other Charges $(6,349) $ (7,073) $ (7,204)
Non-operating expense and income taxes $(7,356) $ (5,544) $ (9,016)
-------- ---------- ---------
Net Income (loss) $ 4,326 $ 5,353 $ 8,105
======== ========== =========
EBITDA $ 14,978 $ 13,740 $ 19,487
Amortization of Intangibles 2,324 1,795 1,725
Depreciation 2,913 2,217 2,243
GAAP EPS $ 0.15 $ 0.18 $ 0.25
-------- ---------- ---------
Balance Sheet and Liquidity Metrics
Cash & Cash Equivalents $ 27,736 $ 13,529 $ 30,825
Accounts Receivables, Net $ 82,159 $ 92,187 $ 109,657
Inventories, Net $ 52,594 $ 64,513 $ 71,108
Total Debt $158,865 $ 131,350 $ 110,737
Short Term Debt 66,799 24,085 12,623
Long Term Debt 92,066 107,265 98,114
Equity $180,636 $ 212,643 $ 283,573
Working Capital $ 26,724 $ 74,521 $ 120,967
Capital Expenditures $ 2,430 $ 1,485 $ 2,015
Cash Flow from (used in ) Operations* $ 6,933 $ (5,728) $ 2,095
-------- ---------- ---------
Financial Ratios
Days Sales Outstanding 58 56 69
Days Sales in Inventory 77 90 97
Current ratio 1.2 1.7 2.2
Debt to Equity 0.9 0.6 0.3
--- --- ---
Other
Headcount 2,068 2,004 2,039
----- ----- -----
</table>
Notes:
1) Engineering & Construction consists of Construction Instruments (CI), Machine
Control, Survey and Tripod Data Systems (TDS). 2) Trimble Field Solutions
consists of Geographic Information Systems (GIS) and Agriculture. 3) Portfolio
Technologies consists of Military and Advanced Systems (MAS).
* Cash Flow from Operations includes impact of exchange rate changes on cash.
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