- First Quarter 2017 Revenue $613.9 million
(PRNewswire) — Trimble Inc. (NASDAQ: TRMB) today announced financial results for the first quarter of 2017.
First Quarter 2017 Financial Summary
First quarter 2017 revenue of $613.9 million was up 5 percent as compared to the first quarter of 2016. As previously announced, Trimble has changed the reporting of its segment financial results to better reflect the Company's customer base and end markets, and our first quarter results are based on these new segments. Buildings and Infrastructure revenue was $188.1 million, up 8 percent. Geospatial revenue was $149.8 million, down 2 percent. Resources and Utilities revenue was $119.9 million, up 5 percent. Transportation revenue was $156.1 million, up 9 percent.
GAAP operating income was $56.6 million, up 89 percent as compared to the first quarter of 2016. GAAP operating margin was 9.2 percent of revenue as compared to 5.1 percent of revenue in the first quarter of 2016.
GAAP net income was $50.5 million, up 155 percent as compared to the first quarter of 2016. Diluted GAAP earnings per share were $0.20 as compared to diluted GAAP earnings per share of $0.08 in the first quarter of 2016.
Non-GAAP operating income of $109.2 million was up 23 percent as compared to the first quarter of 2016. Non-GAAP operating margin was 17.8 percent of revenue as compared to 15.1 percent of revenue in the first quarter of 2016.
Non-GAAP net income of $84.8 million was up 31 percent as compared to the first quarter of 2016. Diluted non-GAAP earnings per share were $0.33 as compared to diluted non-GAAP earnings per share of $0.25 in the first quarter of 2016.
The GAAP tax rate for the quarter was 23 percent as compared to 33 percent in the first quarter of 2016, and the non-GAAP tax rate was 23 percent as compared to 24 percent in the first quarter of 2016.
Operating cash flow for the first quarter of 2017 was $102.9 million, down 10 percent as compared to the first quarter of 2016. Deferred revenue for the first quarter of 2017 was $337.0 million, up 5 percent as compared to the first quarter of 2016.
During the first quarter, Trimble repurchased approximately 0.5 million shares of its common stock for $14.2 million. Approximately $116 million remains under the current share repurchase authorization as of the end of the first quarter.
"We continued to demonstrate progression in the first quarter, with accelerating revenue growth and significant margin improvement," said Steven W. Berglund, Trimble's president and chief executive officer. "Our outlook for the remainder of the year anticipates continuing year-over-year improvement in both revenue and profitability."
Forward Looking Guidance
For the second quarter of 2017 Trimble expects revenue to be between $625 million and $655 million with GAAP earnings per share of $0.16 to $0.22 and non-GAAP earnings per share of $0.33 to $0.38. Non-GAAP guidance excludes the amortization of intangibles of $35 million related to previous acquisitions, anticipated acquisition costs of $3 million, the anticipated impact of stock-based compensation expense of $15 million, and $2 million in anticipated restructuring charges. GAAP guidance assumes a tax rate of 22 percent and non-GAAP guidance assumes a tax rate of 23 percent. Both GAAP and non-GAAP earnings per share assume approximately 257 million shares outstanding.
Investor Conference Call / Webcast Details
Trimble will hold a conference call on April 27 at 2:00 p.m. PT to review its first quarter 2017 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 8299038. 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.
Segment Information
For a description of our new reporting segments, and financial segment information for fiscal years 2014, 2015, 2016, and the first quarter of fiscal 2017, please visit the Investor Relations section of the Company's Website 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 second 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 would also be negatively impacted by weakening in the macro environment or 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.
