- Fourth Quarter 2017 Revenue $708.4 million; GAAP Diluted Loss Per Share $(0.14); Non-GAAP Diluted Earnings Per Share $0.39
SUNNYVALE, Calif., Feb. 8, 2018 — (PRNewswire) — Trimble Inc. (NASDAQ: TRMB) today announced financial results for the fourth quarter and fiscal year end 2017 results.
Fourth Quarter 2017 Financial Summary
Fourth quarter 2017 revenue of $708.4 million was up 21 percent as compared to the fourth quarter of 2016. Buildings and Infrastructure revenue was $209.6 million, up 18 percent. Geospatial revenue was $176.4 million, up 11 percent. Resources and Utilities revenue was $131.6 million, up 38 percent. Transportation revenue was $190.8 million, up 24 percent.
GAAP operating income was $62.8 million, up 14 percent as compared to the fourth quarter of 2016. GAAP operating margin was 8.9 percent of revenue as compared to 9.4 percent of revenue in the fourth quarter of 2016.
The U.S. Tax Cuts and Jobs Act was enacted on December 22, 2017 and resulted in a provisional tax expense impact of $85 million in the fourth quarter of 2017 primarily due to the one-time transition tax on accumulated foreign subsidiary earnings and deferred tax impacts.
GAAP net loss was $35.0 million, down 193 percent as compared to the fourth quarter of 2016. Diluted GAAP loss per share was $(0.14) as compared to diluted GAAP earnings per share of $0.15 in the fourth quarter of 2016.
Non-GAAP operating income of $126.3 million was up 18 percent as compared to the fourth quarter of 2016. Non-GAAP operating margin was 17.8 percent of revenue as compared to 18.3 percent of revenue in the fourth quarter of 2016.
Non-GAAP net income of $98.7 million was up 24 percent as compared to the fourth quarter of 2016. Diluted non-GAAP earnings per share were $0.39 as compared to diluted non-GAAP earnings per share of $0.31 in the fourth quarter of 2016.
The GAAP tax rate for the quarter was 162 percent as compared to 34 percent in the fourth quarter of 2016, and the non-GAAP tax rate was 23 percent as compared to 24 percent in the fourth quarter of 2016.
During the fourth quarter, Trimble repurchased approximately 4.3 million shares of its common stock for $177 million.
"The quarter's strong results capped a year of significant improvement in which every segment and every region grew," said Steven W. Berglund, Trimble's president and chief executive officer. "We enter 2018 with continuing momentum and anticipate further growth and improved operating margins."
Fiscal 2017 Financial Summary
Fiscal 2017 revenue of $2.7 billion was up 12 percent as compared to fiscal 2016. Buildings and Infrastructure revenue was $834.9 million, up 12 percent. Geospatial revenue was $661.2 million, up 4 percent. Resources and Utilities revenue was $476.9 million, up 21 percent. Transportation revenue was $681.2 million, up 16 percent.
GAAP operating income was $246.0 million, up 36 percent as compared to fiscal 2016. GAAP operating margin was 9.3 percent of revenue as compared to 7.7 percent of revenue in fiscal 2016.
GAAP net income was $121.1 million, down 9 percent as compared to fiscal 2016. Diluted GAAP earnings per share were $0.47 as compared to diluted GAAP earnings per share of $0.52 in fiscal 2016.
Non-GAAP operating income of $480.3 million was up 18 percent as compared to fiscal 2016. Non-GAAP operating margin was 18.1 percent of revenue as compared to 17.2 percent of revenue in fiscal 2016.
Non-GAAP net income of $379.6 million was up 26 percent as compared to fiscal 2016. Diluted non-GAAP earnings per share were $1.48 as compared to diluted non-GAAP earnings per share of $1.19 in fiscal 2016.
The GAAP tax rate for the year was 53 percent as compared to 25 percent in fiscal 2016, and the non-GAAP tax rate was 23 percent as compared to 24 percent in fiscal 2016.
Operating cash flow for fiscal 2017 was $411.9 million, flat as compared to fiscal 2016. Deferred revenue for fiscal 2017 was $313.4 million, up 10 percent as compared to fiscal 2016.
In November 2017, the Board of Directors approved a stock repurchase program authorizing Trimble to repurchase up to $600 million of Trimble's common stock. During fiscal 2017, Trimble repurchased approximately 7.4 million shares for $288 million. Approximately $442 million remains under the current share repurchase authorization as of the end of the fourth quarter.
Forward Looking Guidance
For the first quarter of 2018, Trimble expects revenue to be between $700 million and $730 million, representing year-over-year growth of 14 percent and 19 percent respectively, with GAAP earnings per share of $0.16 to $0.20 and non-GAAP earnings per share of $0.36 to $0.40. Non-GAAP guidance excludes the amortization of intangibles of $43 million related to previous acquisitions, anticipated acquisition costs of $3 million, the anticipated impact of stock-based compensation expense of $16 million, and $3 million in anticipated restructuring charges. GAAP guidance assumes a tax rate of 19 percent and non-GAAP guidance assumes a tax rate of 20 percent. Both GAAP and non-GAAP earnings per share assume approximately 254 million shares outstanding.
Guidance for the first quarter of 2018 reflects prior ASC 605 revenue recognition and is therefore consistent with previously reported results. Actual reported results for the first quarter of 2018 will reflect adoption of ASC 606 revenue recognition.
Investor Conference Call / Webcast Details
Trimble will hold a conference call on February 8 at 2:00 p.m. PT to review its fourth quarter and full year 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 1779498. The replay will also be available on the web at the address above.
Use of Non-GAAP Financial Information
To help investors understand Trimble's past financial performance and future results, as well as its performance relative to competitors, Trimble supplements the financial results that the company provides in accordance with generally accepted accounting principles, or GAAP, with non-GAAP financial measures. These non-GAAP measures can be used to evaluate Trimble's historical and prospective financial performance, as well as its performance relative to competitors. The company's management regularly uses supplemental non-GAAP financial measures internally to understand, manage and evaluate the business, and to make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Trimble believes that these non-GAAP financial measures reflect an additional way of viewing aspects of the company's operations that, when viewed with the GAAP results, provide a more complete understanding of factors and trends affecting the business. Further, Trimble believes some of company's investors track "core operating performance" as a means of evaluating performance in the ordinary, ongoing, and customary course of the company's 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 Trimble's core operating performance provides a supplemental way to provide consistency in period to period comparisons.
