- Record annualized recurring revenue, reflecting ongoing
execution of the Connect & Scale strategy
- Record gross margin, demonstrating continued business
transformation and favorable mix shift
- Continued simplification and focusing of business via recently
announced Mobility divestiture
- Raising full year guidance
WESTMINSTER, Colo., Nov. 6, 2024
/PRNewswire/ -- Trimble Inc. (NASDAQ: TRMB) today announced
financial results for the third quarter of 2024.
Third Quarter 2024 Financial Highlights
- Revenue of $875.8 million, down 9
percent on a year-over-year basis, up 3 percent on an organic
basis
- Annualized recurring revenue ("ARR") was $2.19 billion, up 13 percent year-over-year, up
14 percent on an organic basis
- GAAP operating income was $116.4
million, 13.3 percent of revenue and non-GAAP operating
income was $224.8 million, 25.7
percent of revenue
- GAAP net income was $40.6 million
and non-GAAP net income was $171.9
million
- Diluted earnings per share ("EPS") was $0.16 on a GAAP basis and $0.70 on a non-GAAP basis
- Adjusted EBITDA was $237.4
million, 27.1 percent of revenue
Executive Quote
"The Trimble team executed well in the quarter, exceeding
expectations on both top and bottom lines, while delivering a
record $2.19 billion of ARR and
record gross margin of 68.5 percent," said Rob Painter, Trimble's President and Chief
Executive Officer. "We continue to progress our Connect & Scale
strategy with the recently announced Mobility divestiture, which
will further simplify and focus our business. We look forward to
hosting our Dimensions user conference from November 11-13, 2024 and our investor day on
December 10, 2024."
Forward-Looking Guidance
For the full-year 2024, Trimble expects to report revenue
between $3,625 million and
$3,665 million, GAAP earnings per
share of $6.25 to $6.32, and non-GAAP earnings per share of
$2.79 to $2.87. GAAP guidance assumes a tax rate of 24.9
percent and non-GAAP guidance assumes a tax rate of 17.3 percent.
Both GAAP and non-GAAP earnings per share assume approximately 247
million shares outstanding.
For the fourth quarter of 2024, Trimble expects to report
revenue between $925 million and
$965 million, GAAP earnings per share of $0.52 to $0.61, and
non-GAAP earnings per share of $0.83
to $0.91. GAAP guidance assumes a tax
rate of 13.0 percent and non-GAAP guidance assumes a tax rate of
17.4 percent. Both GAAP and non-GAAP earnings per share assume
approximately 247 million shares outstanding.
Full-year 2024 and fourth quarter of 2024 guidance both reflect
the closing of the joint venture with AGCO which closed at the
beginning of the second quarter of 2024. A reconciliation of the
non-GAAP measures to the most directly comparable GAAP measures and
other information relating to these non-GAAP measures are included
in the supplemental reconciliation schedule attached.
Investor Conference Call / Webcast Details
Trimble will hold a conference call on November 6, 2024 at
8:00 a.m. ET to review its third
quarter of 2024 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 (888) 660-6347 (U.S.) or (929) 201-6594
(international). The conference ID is 1043223. The replay will also
be available on the web at the address above.
About Trimble
Trimble is transforming the ways people move, build and live.
Core technologies in positioning, modeling and data analytics
connect the digital and physical worlds to improve our customers'
productivity, quality, safety, transparency and sustainability. 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 about our future
financial and operational results. These forward-looking statements
are subject to change, and actual results may materially differ 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, effectively integrate
new acquisitions or consummate divestitures in a timely manner, or
get the benefits it is expecting from its joint ventures and
partnerships, including with AGCO and Platform Science. The
Company's results would also be negatively impacted due to weakness
and deterioration in the US and global macroeconomic outlook,
including slowing growth, inflationary pressures and increases in
interest rates, which may affect demand for our products and
services and increase our costs, adversely affecting our revenues
and profitability, supply chain shortages and disruptions, the pace
at which our dealers work through their inventory, changes in our
distribution channels, adverse geopolitical developments and the
potential impact of volatility and conflict in the political and
economic environment, including conflicts in the Middle East and between Russia and Ukraine and its direct and indirect impact on
our business, foreign exchange fluctuations, the pace we transition
our business model towards a subscription model, the imposition of
barriers to international trade, the impact of acquisitions or
divestitures, and our ability to maintain effective internal
controls over financial reporting, including our ability to
remediate our material weaknesses in our internal controls over
financial reporting. Any failure to achieve predicted results could
negatively impact the Company's revenue, 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. 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.
FTRMB
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
(In millions, except
per share data)
(Unaudited)
|
|
|
Third Quarter
of
|
|
First Three Quarters
of
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Product
|
$
307.6
|
|
$
444.0
|
|
$
995.1
|
|
$
1,368.9
|
|
Subscription and
services
|
568.2
|
|
513.3
|
|
1,704.8
|
|
1,497.4
|
|
Total
revenue
|
875.8
|
|
957.3
|
|
2,699.9
|
|
2,866.3
|
|
Cost of
sales:
|
|
|
|
|
|
|
|
|
Product
|
160.7
|
|
215.6
|
|
544.7
|
|
665.7
|
|
Subscription and
services
|
120.6
|
|
123.8
|
|
365.4
|
|
364.2
|
|
Amortization of
purchased intangible assets
|
18.9
|
|
27.7
|
|
74.7
|
|
80.9
|
|
Total cost of
sales
|
300.2
|
|
367.1
|
|
984.8
|
|
1,110.8
|
|
Gross margin
|
575.6
|
|
590.2
|
|
1,715.1
|
|
1,755.5
|
|
Gross margin
(%)
|
65.7 %
|
|
61.7 %
|
|
63.5 %
|
|
61.2 %
|
|
Operating
expense:
|
|
|
|
|
|
|
|
|
Research and
development
|
155.6
|
|
162.5
|
|
487.3
|
|
496.6
|
|
Sales and
marketing
|
147.1
|
|
146.2
|
|
436.4
|
|
436.9
|
|
General and
administrative
|
127.6
|
|
117.2
|
|
410.4
|
|
369.2
|
|
Restructuring
|
2.4
|
|
11.8
|
|
14.1
|
|
26.1
|
|
Amortization of
purchased intangible assets
|
26.5
|
|
31.2
|
|
79.7
|
|
74.8
|
|
Total operating
expense
|
459.2
|
|
468.9
|
|
1,427.9
|
|
1,403.6
|
|
Operating
income
|
116.4
|
|
121.3
|
|
287.2
|
|
351.9
|
|
Non-operating (expense)
income, net:
|
|
|
|
|
|
|
|
|
Divestitures (loss)
gain, net
|
(22.6)
|
|
5.5
|
|
1,695.0
|
|
10.6
|
|
Interest expense,
net
|
(14.1)
|
|
(46.8)
|
|
(77.4)
|
|
(113.2)
|
|
(Loss) income from
equity method investments, net
|
(0.6)
|
|
5.2
|
|
9.3
|
|
24.6
|
|
Other (loss) income,
net
|
(6.0)
|
|
(5.8)
|
|
(6.0)
|
|
23.6
|
|
Total non-operating
(expense) income, net
|
(43.3)
|
|
(41.9)
|
|
1,620.9
|
|
(54.4)
|
|
Income before
taxes
|
73.1
|
|
79.4
|
|
1,908.1
|
|
297.5
|
|
Income tax
provision
|
32.5
|
|
4.5
|
|
493.9
|
|
49.2
|
|
Net income
|
$
40.6
|
|
$
74.9
|
|
$
1,414.2
|
|
$
248.3
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
Basic
|
$
0.17
|
|
$
0.30
|
|
$
5.76
|
|
$
1.00
|
|
Diluted
|
$
0.16
|
|
$
0.30
|
|
$
5.73
|
|
$
1.00
|
|
Shares used in
calculating earnings per share:
|
|
|
|
|
|
|
|
|
Basic
|
245.6
|
|
248.6
|
|
245.4
|
|
248.0
|
|
Diluted
|
246.9
|
|
249.7
|
|
246.9
|
|
249.1
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
(In
millions)
(Unaudited)
|
|
|
As of
|
|
Third Quarter
of
|
|
Year End
|
|
2024
|
|
2023
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
1,036.9
|
|
$
229.8
|
|
Accounts receivable,
net
|
525.6
|
|
706.6
|
|
Inventories
|
192.1
|
|
235.7
|
|
Prepaid
expenses
|
95.3
|
|
89.8
|
|
Other current
assets
|
149.1
|
|
147.8
|
|
Assets held for
sale
|
311.7
|
|
421.2
|
|
Total current
assets
|
2,310.7
|
|
1,830.9
|
|
Property and equipment,
net
|
191.9
|
|
202.5
|
|
Operating lease
right-of-use assets
|
125.4
|
|
124.0
|
|
Goodwill
|
5,141.8
|
|
5,350.6
|
|
Other purchased
intangible assets, net
|
1,103.1
|
|
1,243.5
|
|
Deferred income tax
assets
|
311.5
|
|
412.3
|
|
Equity
investments
|
424.7
|
|
127.7
|
|
Other non-current
assets
|
257.6
|
|
247.8
|
|
Total
assets
|
$
9,866.7
|
|
$
9,539.3
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Short-term
debt
|
$
400.0
|
|
$
530.4
|
|
Accounts
payable
|
177.3
|
|
165.3
|
|
Accrued compensation
and benefits
|
194.7
|
|
181.2
|
|
Deferred
revenue
|
661.8
|
|
663.1
|
|
Income taxes
payable
|
313.8
|
|
39.7
|
|
Other current
liabilities
|
197.4
|
|
201.3
|
|
Liabilities held for
sale
|
41.6
|
|
48.3
|
|
Total current
liabilities
|
1,986.6
|
|
1,829.3
|
|
Long-term
debt
|
1,390.2
|
|
2,536.2
|
|
Deferred revenue,
non-current
|
95.4
|
|
98.3
|
|
Deferred income tax
liabilities
|
235.9
|
|
287.8
|
|
Operating lease
liabilities
|
121.8
|
|
121.9
|
|
Other non-current
liabilities
|
161.7
|
|
165.7
|
|
Total
liabilities
|
3,991.6
|
|
5,039.2
|
|
Stockholders'
equity:
|
|
|
|
|
Common
stock
|
0.2
|
|
0.2
|
|
Additional
paid-in-capital
|
2,330.9
|
|
2,214.6
|
|
Retained
earnings
|
3,668.3
|
|
2,437.4
|
|
Accumulated other
comprehensive loss
|
(124.3)
|
|
(152.1)
|
|
Total stockholders'
equity
|
5,875.1
|
|
4,500.1
|
|
Total liabilities and
stockholders' equity
|
$
9,866.7
|
|
$
9,539.3
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In
millions)
(Unaudited)
|
|
|
First Three Quarters
of
|
|
2024
|
|
2023
|
|
Cash flow from
operating activities:
|
|
|
|
|
Net income
|
$
1,414.2
|
|
$
248.3
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
179.2
|
|
185.2
|
|
Deferred income
taxes
|
31.2
|
|
(104.0)
|
|
Stock-based
compensation
|
110.3
|
|
112.5
|
|
Divestitures gain,
net
|
(1,695.0)
|
|
(10.6)
|
|
Other, net
|
42.5
|
|
(5.9)
|
|
(Increase) decrease in
assets:
|
|
|
|
|
Accounts receivable,
net
|
103.9
|
|
24.0
|
|
Inventories
|
17.0
|
|
46.3
|
|
Other current and
non-current assets
|
(51.6)
|
|
(35.5)
|
|
Increase (decrease) in
liabilities:
|
|
|
|
|
Accounts
payable
|
18.0
|
|
5.0
|
|
Accrued compensation
and benefits
|
7.6
|
|
12.3
|
|
Deferred
revenue
|
12.0
|
|
(39.7)
|
|
Income taxes
payable
|
250.7
|
|
62.5
|
|
Other current and
non-current liabilities
|
(23.7)
|
|
(2.2)
|
|
Net cash provided by
operating activities
|
416.3
|
|
498.2
|
|
Cash flow from
investing activities:
|
|
|
|
|
Proceeds from
divestitures
|
1,923.2
|
|
15.1
|
|
Acquisitions of
businesses, net of cash acquired
|
(22.0)
|
|
(2,088.9)
|
|
Purchases of property
and equipment
|
(27.5)
|
|
(32.2)
|
|
Other, net
|
(13.7)
|
|
41.6
|
|
Net cash provided by
(used in) investing activities
|
1,860.0
|
|
(2,064.4)
|
|
Cash flow from
financing activities:
|
|
|
|
|
Issuance of common
stock, net of tax withholdings
|
(6.0)
|
|
8.0
|
|
Repurchases of common
stock
|
(175.0)
|
|
—
|
|
Proceeds from debt and
revolving credit lines
|
521.2
|
|
3,398.8
|
|
Payments on debt and
revolving credit lines
|
(1,799.3)
|
|
(1,856.8)
|
|
Other, net
|
(4.6)
|
|
(29.3)
|
|
Net cash (used in)
provided by financing activities
|
(1,463.7)
|
|
1,520.7
|
|
Effect of exchange rate
changes on cash and cash equivalents
|
2.5
|
|
(2.6)
|
|
Net increase (decrease)
in cash and cash equivalents
|
815.1
|
|
(48.1)
|
|
Cash and cash
equivalents - beginning of period (1)
|
238.9
|
|
271.0
|
|
Cash and cash
equivalents - end of period (1)
|
$
1,054.0
|
|
$
222.9
|
|
|
|
|
|
Supplemental cash flow
disclosure:
|
|
|
|
|
Cash tax paid, net,
excluding tax for the Ag divestiture
|
$
81.6
|
|
$
72.5
|
|
Cash tax paid for the
Ag divestiture
|
$
87.1
|
|
$
—
|
|
|
|
|
|
(1) Includes $17.1
million, $9.1 million, and $6.1 million of cash and cash
equivalents classified as held for sale as of September 27,
2024,
December 29, 2023, and September 29, 2023.
|
|
REPORTING
SEGMENTS
(In
millions)
(Unaudited)
|
|
|
|
Reporting
Segments
|
|
|
AECO
|
|
Field
Systems
|
|
T&L
|
|
THIRD QUARTER OF
2024:
|
|
|
|
|
|
|
|
Segment
revenue
|
|
$
306.0
|
|
$
374.6
|
|
$
195.2
|
|
Segment operating
income
|
|
$
89.0
|
|
$
123.7
|
|
$
41.0
|
|
Segment operating
income as a % of segment revenue
|
|
29.1 %
|
|
33.0 %
|
|
21.0 %
|
|
|
|
|
|
|
|
|
THIRD QUARTER OF
2023:
|
|
|
|
|
|
|
|
Segment
revenue
|
|
$
269.6
|
|
$
495.4
|
|
$
192.3
|
|
Segment operating
income
|
|
$
77.8
|
|
$
165.0
|
|
$
33.6
|
|
Segment operating
income as a % of segment revenue
|
|
28.9 %
|
|
33.3 %
|
|
17.5 %
|
|
|
Reporting
Segments
|
|
|
AECO
|
|
Field
Systems
|
|
T&L
|
|
FIRST THREE QUARTERS
OF 2024:
|
|
|
|
|
|
|
|
Segment
revenue
|
|
$
944.8
|
|
$
1,173.1
|
|
$
582.0
|
|
Segment operating
income
|
|
$
294.8
|
|
$
331.8
|
|
$
113.2
|
|
Segment operating
income as a % of segment revenue
|
|
31.2 %
|
|
28.3 %
|
|
19.5 %
|
|
|
|
|
|
|
|
|
FIRST THREE QUARTERS
OF 2023:
|
|
|
|
|
|
|
|
Segment
revenue
|
|
$
821.8
|
|
$
1,515.9
|
|
$
528.6
|
|
Segment operating
income
|
|
$
235.6
|
|
$
478.3
|
|
$
80.6
|
|
Segment operating
income as a % of segment revenue
|
|
28.7 %
|
|
31.6 %
|
|
15.2 %
|
|
|
GAAP TO NON-GAAP
RECONCILIATION
(Dollars in millions,
except per share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
Third Quarter
of
|
|
First Three Quarters
of
|
|
|
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
Dollar
Amount
|
% of
Revenue
|
|
Dollar
Amount
|
% of
Revenue
|
|
Dollar
Amount
|
% of
Revenue
|
|
Dollar
Amount
|
% of
Revenue
|
|
REVENUE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
revenue:
|
|
|
$
875.8
|
|
|
$
957.3
|
|
|
$ 2,699.9
|
|
|
$ 2,866.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
MARGIN:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
margin:
|
|
|
$
575.6
|
65.7 %
|
|
$
590.2
|
61.7 %
|
|
$ 1,715.1
|
63.5 %
|
|
$ 1,755.5
|
61.2 %
|
|
|
Amortization of
purchased intangible assets
|
(A)
|
|
18.9
|
|
|
27.7
|
|
|
74.7
|
|
|
80.9
|
|
|
|
Acquisition /
divestiture items
|
(B)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
|
|
Stock-based
compensation / deferred compensation
|
(C)
|
|
4.2
|
|
|
3.8
|
|
|
12.7
|
|
|
11.4
|
|
|
|
Restructuring and other
costs
|
(D)
|
|
0.9
|
|
|
0.1
|
|
|
2.9
|
|
|
(0.6)
|
|
|
Non-GAAP gross
margin:
|
|
|
$
599.6
|
68.5 %
|
|
$
621.8
|
65.0 %
|
|
$ 1,805.4
|
66.9 %
|
|
$ 1,847.6
|
64.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
expenses:
|
|
|
$
459.2
|
52.4 %
|
|
$
468.9
|
49.0 %
|
|
$ 1,427.9
|
52.9 %
|
|
$ 1,403.6
|
49.0 %
|
|
|
Amortization of
purchased intangible assets
|
(A)
|
|
(26.5)
|
|
|
(31.2)
|
|
|
(79.7)
|
|
|
(74.8)
|
|
|
|
Acquisition /
divestiture items
|
(B)
|
|
(17.4)
|
|
|
(22.0)
|
|
|
(75.2)
|
|
|
(55.1)
|
|
|
|
Stock-based
compensation / deferred compensation
|
(C)
|
|
(33.9)
|
|
|
(34.1)
|
|
|
(102.3)
|
|
|
(104.0)
|
|
|
|
Restructuring and other
costs
|
(D)
|
|
(6.6)
|
|
|
(10.8)
|
|
|
(18.9)
|
|
|
(30.2)
|
|
|
Non-GAAP operating
expenses:
|
|
|
$
374.8
|
42.8 %
|
|
$
370.8
|
38.7 %
|
|
$ 1,151.8
|
42.7 %
|
|
$ 1,139.5
|
39.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income:
|
|
|
$
116.4
|
13.3 %
|
|
$
121.3
|
12.7 %
|
|
$
287.2
|
10.6 %
|
|
$
351.9
|
12.3 %
|
|
|
Amortization of
purchased intangible assets
|
(A)
|
|
45.4
|
|
|
58.9
|
|
|
154.4
|
|
|
155.7
|
|
|
|
Acquisition /
divestiture items
|
(B)
|
|
17.4
|
|
|
22.0
|
|
|
75.2
|
|
|
55.5
|
|
|
|
Stock-based
compensation / deferred compensation
|
(C)
|
|
38.1
|
|
|
37.9
|
|
|
115.0
|
|
|
115.4
|
|
|
|
Restructuring and other
costs
|
(D)
|
|
7.5
|
|
|
10.9
|
|
|
21.8
|
|
|
29.6
|
|
|
Non-GAAP operating
income:
|
|
|
$
224.8
|
25.7 %
|
|
$
251.0
|
26.2 %
|
|
$
653.6
|
24.2 %
|
|
$
708.1
|
24.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-OPERATING
(EXPENSE) INCOME, NET:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP non-operating
(expense) income, net:
|
|
|
$
(43.3)
|
|
|
$
(41.9)
|
|
|
$ 1,620.9
|
|
|
$
(54.4)
|
|
|
|
Acquisition /
divestiture items
|
(B)
|
|
26.8
|
|
|
(5.1)
|
|
|
(1,692.7)
|
|
|
(37.6)
|
|
|
|
Deferred
compensation
|
(C)
|
|
(1.6)
|
|
|
0.8
|
|
|
(4.7)
|
|
|
(2.9)
|
|
|
|
Restructuring and other
costs
|
(D)
|
|
1.4
|
|
|
0.1
|
|
|
6.8
|
|
|
1.4
|
|
|
Non-GAAP non-operating
expense, net:
|
|
|
$
(16.7)
|
|
|
$
(46.1)
|
|
|
$
(69.7)
|
|
|
$
(93.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
and
Non-
GAAP
Tax Rate
%
|
|
|
GAAP
and
Non-
GAAP
Tax Rate
%
|
|
|
GAAP
and
Non-
GAAP
Tax Rate
%
|
|
|
GAAP
and
Non-
GAAP
Tax Rate
%
|
|
|
|
|
|
|
(G)
|
|
|
(G)
|
|
|
(G)
|
|
|
(G)
|
|
INCOME TAX
PROVISION:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income tax
provision:
|
|
|
$ 32.5
|
44.5 %
|
|
$ 4.5
|
5.7 %
|
|
$
493.9
|
25.9 %
|
|
$ 49.2
|
16.5 %
|
|
|
Non-GAAP items tax
effected
|
(E)
|
|
60.1
|
|
|
7.2
|
|
|
(313.5)
|
|
|
48.6
|
|
|
|
Difference in GAAP and
Non-GAAP tax rate
|
(F)
|
|
(56.4)
|
|
|
23.0
|
|
|
(79.4)
|
|
|
9.7
|
|
|
Non-GAAP income tax
provision:
|
|
|
$ 36.2
|
17.4 %
|
|
$ 34.7
|
16.9 %
|
|
$
101.0
|
17.3 %
|
|
$
107.5
|
17.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income:
|
|
|
$ 40.6
|
|
|
$ 74.9
|
|
|
$ 1,414.2
|
|
|
$
248.3
|
|
|
|
Amortization of
purchased intangible assets
|
(A)
|
|
45.4
|
|
|
58.9
|
|
|
154.4
|
|
|
155.7
|
|
|
|
Acquisition /
divestiture items
|
(B)
|
|
44.2
|
|
|
16.9
|
|
|
(1,617.5)
|
|
|
17.9
|
|
|
|
Stock-based
compensation / deferred compensation
|
(C)
|
|
36.5
|
|
|
38.7
|
|
|
110.3
|
|
|
112.5
|
|
|
|
Restructuring and other
costs
|
(D)
|
|
8.9
|
|
|
11.0
|
|
|
28.6
|
|
|
31.0
|
|
|
|
Non-GAAP tax
adjustments
|
(E) - (F)
|
|
(3.7)
|
|
|
(30.2)
|
|
|
392.9
|
|
|
(58.3)
|
|
|
Non-GAAP net
income:
|
|
|
$
171.9
|
|
|
$
170.2
|
|
|
$
482.9
|
|
|
$
507.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED NET INCOME
PER SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted net income
per share:
|
|
|
$ 0.16
|
|
|
$ 0.30
|
|
|
$ 5.73
|
|
|
$ 1.00
|
|
|
|
Amortization of
purchased intangible assets
|
(A)
|
|
0.18
|
|
|
0.24
|
|
|
0.63
|
|
|
0.63
|
|
|
|
Acquisition /
divestiture items
|
(B)
|
|
0.18
|
|
|
0.07
|
|
|
(6.56)
|
|
|
0.07
|
|
|
|
Stock-based
compensation / deferred compensation
|
(C)
|
|
0.15
|
|
|
0.15
|
|
|
0.45
|
|
|
0.45
|
|
|
|
Restructuring and other
costs
|
(D)
|
|
0.04
|
|
|
0.04
|
|
|
0.12
|
|
|
0.12
|
|
|
|
Non-GAAP tax
adjustments
|
(E) - (F)
|
|
(0.01)
|
|
|
(0.12)
|
|
|
1.59
|
|
|
(0.23)
|
|
|
Non-GAAP diluted net
income per share:
|
|
|
$ 0.70
|
|
|
$ 0.68
|
|
|
$ 1.96
|
|
|
$ 2.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income:
|
|
|
$
116.4
|
13.3 %
|
|
$
121.3
|
12.7 %
|
|
$
287.2
|
10.6 %
|
|
$
351.9
|
12.3 %
|
|
|
Amortization of
purchased intangible assets
|
(A)
|
|
45.4
|
|
|
58.9
|
|
|
154.4
|
|
|
155.7
|
|
|
|
Acquisition /
divestiture items
|
(B)
|
|
17.4
|
|
|
22.0
|
|
|
75.2
|
|
|
55.5
|
|
|
|
Stock-based
compensation / deferred compensation
|
(C)
|
|
38.1
|
|
|
37.9
|
|
|
115.0
|
|
|
115.4
|
|
|
|
Restructuring and other
costs
|
(D)
|
|
7.5
|
|
|
10.9
|
|
|
21.8
|
|
|
29.6
|
|
|
Non-GAAP operating
income:
|
|
|
224.8
|
25.7 %
|
|
251.0
|
26.2 %
|
|
653.6
|
24.2 %
|
|
708.1
|
24.7 %
|
|
|
Depreciation expense
and cloud computing amortization
|
|
|
11.8
|
|
|
12.0
|
|
|
34.8
|
|
|
35.8
|
|
|
|
Income from equity
method investments, net
|
|
|
0.8
|
|
|
5.2
|
|
|
13.9
|
|
|
24.6
|
|
|
Adjusted
EBITDA:
|
|
|
$
237.4
|
27.1 %
|
|
$
268.2
|
28.0 %
|
|
$
702.3
|
26.0 %
|
|
$
768.5
|
26.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter of
2024
|
|
Year 2024
|
|
|
|
|
|
|
|
|
|
|
|
Low End
|
High End
|
|
Low End
|
High End
|
|
|
|
|
|
|
|
FORECASTED DILUTED
NET INCOME PER SHARE:
|
|
|
|
|
|
|
|
|
|
|
Forecasted GAAP diluted
net income per share:
|
|
|
$ 0.52
|
$ 0.61
|
|
$ 6.25
|
$ 6.32
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
(A)
|
|
0.18
|
0.18
|
|
0.81
|
0.81
|
|
|
|
|
|
|
|
|
Acquisition /
divestiture items
|
(B)
|
|
0.02
|
0.02
|
|
(6.52)
|
(6.52)
|
|
|
|
|
|
|
|
|
Stock-based
compensation / deferred compensation
|
(C)
|
|
0.18
|
0.18
|
|
0.63
|
0.63
|
|
|
|
|
|
|
|
|
Restructuring and other
costs
|
(D)
|
|
0.02
|
0.02
|
|
0.13
|
0.13
|
|
|
|
|
|
|
|
|
Non-GAAP tax
adjustments
|
(E) - (F)
|
|
(0.09)
|
(0.10)
|
|
1.49
|
1.50
|
|
|
|
|
|
|
|
Forecasted non-GAAP
diluted net income per share:
|
|
$ 0.83
|
$ 0.91
|
|
$ 2.79
|
$ 2.87
|
|
|
|
|
|
|
FOOTNOTES TO GAAP TO NON-GAAP
RECONCILIATION
This press release includes GAAP financial measures as well as
non-GAAP financial measures, which are not meant to be considered
in isolation or as a substitute for comparable GAAP. We believe
these non-GAAP financial measures provide useful information to
investors and others in understanding our "core operating
performance", which excludes (i) the effect of non-cash items and
certain variable charges not expected to recur; and (ii)
transactions that are not meaningful in comparison to our past
operating performance or not reflective of ongoing financial
results. Lastly, we believe that our core operating performance
offers a supplemental measure for period-to-period comparisons and
can be used to evaluate our historical and prospective financial
performance, as well as our performance relative to
competitors.
The non-GAAP definitions, and explanations to the adjustments to
comparable GAAP measures are included below:
Non-GAAP Definitions
Non-GAAP gross margin
We define Non-GAAP gross margin as GAAP gross margin, excluding
the effects of amortization of purchased intangible assets,
acquisition/divestiture items, stock-based compensation, deferred
compensation, and restructuring and other costs. We believe
our investors benefit by understanding our non-GAAP gross margin as
a way of understanding how product mix, pricing decisions, and
manufacturing costs influence our business.
Non-GAAP operating expenses
We define Non-GAAP operating expenses as GAAP operating
expenses, excluding the effects of amortization of purchased
intangible assets, acquisition/divestiture items, stock-based
compensation, deferred compensation, and restructuring and other
costs. We believe this measure is important to investors
evaluating our non-GAAP spending in relation to revenue.
Non-GAAP operating income
We define Non-GAAP operating income as GAAP operating income,
excluding the effects of amortization of purchased intangible
assets, acquisition/divestiture items, stock-based compensation,
deferred compensation, and restructuring and other costs. We
believe our investors benefit by understanding our non-GAAP
operating income trends, which are driven by revenue, gross margin,
and spending.
Non-GAAP non-operating expense, net
We define Non-GAAP non-operating expense, net as GAAP
non-operating income (expense), net, excluding
acquisition/divestiture items, deferred compensation, and
restructuring and other costs. We believe this measure helps
investors evaluate our non-operating expense trends.
Non-GAAP income tax provision
We define Non-GAAP income tax provision as GAAP income tax
provision, excluding charges and benefits such as net deferred tax
impacts resulting from the non-U.S. intercompany transfer of
intellectual property, tax law changes, and significant one-time
reserve releases upon the statute of limitations expirations.
We believe this measure helps investors because it provides for
consistent treatment of excluded items in our non-GAAP presentation
and a difference in the GAAP and non-GAAP tax rates.
Non-GAAP net income
We define Non-GAAP net income as GAAP net income, excluding the
effects of amortization of purchased intangible assets,
acquisition/divestiture items, stock-based compensation,
restructuring and other costs, and non-GAAP tax adjustments.
This measure provides a supplemental view of net income trends,
which are driven by non-GAAP income before taxes and our non-GAAP
tax rate.
Non-GAAP diluted net income per share
We define Non-GAAP diluted net income per share as GAAP diluted
net income per share, excluding the effects of amortization of
purchased intangible assets, acquisition/divestiture items,
stock-based compensation, restructuring and other costs, and
non-GAAP tax adjustments. We believe our investors benefit by
understanding our non-GAAP operating performance as reflected in a
per share calculation as a way of measuring non-GAAP operating
performance by ownership in the Company.
Adjusted EBITDA
We define Adjusted EBITDA as non-GAAP operating income plus
depreciation expense, cloud computing amortization, and income from
equity method investments, net, excluding our proportionate share
of items such as amortization of purchased intangibles, stock-based
compensation, and restructuring costs. Other companies may
define Adjusted EBITDA differently. Adjusted EBITDA is a
performance measure that we believe offers a useful view of the
overall operations of our business because it facilitates operating
performance comparisons by removing potential differences caused by
variations unrelated to operating performance, such as capital
structures (interest expense), income taxes, depreciation, and
amortization of purchased intangibles and cloud computing
costs.
Explanations of Non-GAAP adjustments
|
(A)
|
Amortization of
purchased intangible assets. Non-GAAP gross
margin and operating expenses exclude the amortization of purchased
intangible assets, which primarily represents technology and/or
customer relationships already developed.
|
|
(B)
|
Acquisition /
divestiture items. Non-GAAP gross margin and
operating expenses exclude costs consisting of external and
incremental costs resulting directly from acquisitions,
divestitures, and strategic investment activities such as legal,
due diligence, integration, and other closing costs, including the
acceleration of acquisition stock awards and adjustments to the
fair value of earn-out liabilities. Non-GAAP non-operating
expense, net, excludes one-time acquisition/divestiture charges,
including foreign currency exchange rate gains/losses related to an
acquisition, divestiture gains/losses, and strategic investment
gains/losses. These are one-time costs that vary
significantly in amount and timing and are not indicative of our
core operating performance.
|
|
(C)
|
Stock-based
compensation / deferred compensation. Non-GAAP
gross margin and operating expenses exclude stock-based
compensation and income or expense associated with movement in our
non-qualified deferred compensation plan liabilities. Changes
in non-qualified deferred compensation plan assets, included in
non-operating expense, net, offset the income or expense in the
plan liabilities.
|
|
(D)
|
Restructuring and
other costs. Non-GAAP gross margin and operating
expenses exclude restructuring and other costs comprised of
termination benefits related to reductions in employee headcount
and closure or exit of facilities, executive severance agreements,
business exit costs, as well as a $20 million commitment to
donate to the Trimble Foundation that was paid over four quarters
ending in the first quarter of 2023. Non-GAAP non-operating
expense net, excludes our proportionate share of items recorded in
income from equity method investment items, such as amortization of
purchased intangibles, stock-based compensation, and restructuring
costs.
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|
(E)
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Non-GAAP items
tax effected. This amount adjusts the
provision for income taxes to reflect the effect of the non-GAAP
items (A) through (D) on non-GAAP net income.
|
|
(F)
|
Difference in
GAAP and non-GAAP tax rate. This amount
represents the difference between the GAAP and non-GAAP tax rates
applied to the non-GAAP operating income plus the non-GAAP
non-operating expense, net. The non-GAAP tax rate excludes charges
and benefits such as (i) deferred tax impacts from tax amortization
relating to a non-U.S. intercompany transfer of intellectual
property and R&D cost capitalization impact to global
intangible low-taxed income, and (ii) significant one-time reserve
releases upon statute of limitations expirations.
|
|
(G)
|
GAAP and non-GAAP
tax rate percentages. These percentages are
defined as GAAP income tax provision as a percentage of GAAP income
before taxes and non-GAAP income tax provision as a percentage of
non-GAAP income before taxes.
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OTHER KEY METRICS
Annualized Recurring Revenue
In addition to providing non-GAAP financial measures, Trimble
provides an ARR performance measure in order to provide investors
with a supplementary indicator of the value of the Company's
current recurring revenue contracts. ARR represents the
estimated annualized value of recurring revenue. ARR is
calculated by taking our subscription and maintenance and support
for the current quarter and adding the portion of the contract
value of all our term licenses attributable to the current quarter,
then dividing that sum by the number of days in the quarter and
then multiplying that quotient by 365. ARR should be viewed
independently of revenue and deferred revenue as it is a
performance measure and is not intended to be combined with or to
replace either of those items.
Organic Annualized Recurring Revenue
Organic
annualized recurring revenue refers to annualized recurring revenue
excluding the impacts of (i) foreign currency translation, and (ii)
acquisitions and divestitures that closed in the prior 12
months.
Organic Revenue
Organic revenue refers to revenue
excluding the impacts of (i) foreign currency translation, and (ii)
acquisitions and divestitures that closed in the prior 12
months.
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SOURCE Trimble