- Record annualized recurring revenue of $1.98 billion, up 24 percent on a
year-over-year basis, up 13 percent on an organic
basis
- Full year GAAP gross margin of 61.4 percent and non-GAAP
gross margin of 64.7 percent
- Full year GAAP operating income was $448.8 million, 11.8% of revenue, and non-GAAP
operating income was $934.7
million, 24.6% of revenue
- Full year Adjusted EBITDA was $1.0
billion, 26.6 percent of revenue
WESTMINSTER, Colo., Feb. 12,
2024 /PRNewswire/ -- Trimble Inc. (NASDAQ: TRMB)
today announced financial results for the fourth quarter and fiscal
year 2023.
Fourth Quarter 2023 Financial Highlights
- Revenue of $932.4 million, up 9
percent on a year-over-year basis, up 3 percent on an organic
basis
- Annualized recurring revenue ("ARR") was $1.98 billion, up 24 percent year-over-year, up
13 percent on an organic basis
- GAAP operating income was $96.9
million, 10.4% of revenue and non-GAAP operating income was
$226.6 million, 24.3% of revenue
- GAAP net income was $63.0 million
and non-GAAP net income was $156.6
million
- Diluted earnings per share ("EPS") was $0.25 on a GAAP basis and $0.63 on a non-GAAP basis
- Adjusted EBITDA was $241.2
million, 25.9 percent of revenue
Executive Quote
"We finished 2023 with a record level of ARR, Gross Margin, and
Adjusted EBITDA," said Rob Painter,
Trimble's president and chief executive officer. "We enter 2024
with resolve to continue executing our strategy and returning
capital to shareholders, while navigating macroeconomic
uncertainties."
Fiscal 2023 Financial Highlights
- Revenue of $3,798.7 million, up 3
percent on a year-over-year basis, up 1 percent on an organic
basis
- GAAP operating income was $448.8
million, 11.8% of revenue, and non-GAAP operating income was
$934.7 million, 24.6% of revenue
- GAAP net income was $311.3
million and non-GAAP net income was $663.7 million
- Diluted EPS was $1.25 on a GAAP
basis, and $2.66 on a non-GAAP
basis
- Adjusted EBITDA was $1,009.7
million, 26.6 percent of revenue
- During fiscal 2023, Trimble repurchased approximately 2.4
million shares for $100.0
million.
Forward-Looking Guidance
For the full-year 2024, Trimble expects to report revenue
between $3,570 million and
$3,670 million and non-GAAP EPS
of $2.60 to $2.80. The full year 2024 non-GAAP EPS assumes a
tax rate of 17.5 percent and approximately 243 million shares
outstanding.
For the first quarter of 2024, Trimble expects to report revenue
between $905 million and $935 million and non-GAAP EPS of $0.57 to $0.62. The
first quarter of 2024 non-GAAP EPS assumes a tax rate of 17.5
percent and approximately 248 million shares outstanding.
Full-year 2024 and first quarter of 2024 guidance both assume
that the joint venture with AGCO closes at the beginning of the
second quarter of 2024.
Trimble is unable to provide a quantitative reconciliation of
these measures to GAAP with a reasonable degree of accuracy because
Trimble has not estimated the fair value of the assets and
liabilities, including intangible assets and related amortization
expense, as well as related tax expense, associated with the
agriculture business that will be contributed to the joint venture
with AGCO. An explanation of how we calculate non-GAAP EPS and
other information relating to this non-GAAP measure is included in
the supplemental schedule attached.
Investor Conference Call / Webcast Details
Trimble will hold a conference call on February 12, 2024 at
8:00 a.m. ET to review its fourth
quarter and full year 2023 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
Dedicated to the world's tomorrow, Trimble is a technology
company delivering solutions that enable our customers to work in
new ways to measure, build, grow and move goods for a better
quality of life. Core technologies in positioning, modeling,
connectivity and data analytics connect the digital and physical
worlds to improve productivity, quality, safety, transparency and
sustainability. From purpose-built products and enterprise
lifecycle solutions to industry cloud services, Trimble is
transforming critical industries such as construction, geospatial,
agriculture and transportation to power an interconnected world of
work. 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 get the benefits it is expecting from its
joint ventures, including with AGCO. 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 the Middle East and the
Russian conflict with 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, and the impact of acquisitions or divestitures. 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)
|
|
|
Fourth Quarter
of
|
|
Year of
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenue:
|
|
|
|
|
|
|
|
Product
|
$
402.8
|
|
$
415.8
|
|
$
1,771.7
|
|
$
1,986.1
|
Subscription and
services
|
529.6
|
|
440.7
|
|
2,027.0
|
|
1,690.2
|
Total
revenue
|
932.4
|
|
856.5
|
|
3,798.7
|
|
3,676.3
|
Cost of
sales:
|
|
|
|
|
|
|
|
Product
|
209.3
|
|
225.3
|
|
875.0
|
|
1,040.8
|
Subscription and
services
|
118.0
|
|
106.5
|
|
482.2
|
|
444.9
|
Amortization of
purchased intangible assets
|
27.8
|
|
21.6
|
|
108.7
|
|
85.0
|
Total cost of
sales
|
355.1
|
|
353.4
|
|
1,465.9
|
|
1,570.7
|
Gross
margin
|
577.3
|
|
503.1
|
|
2,332.8
|
|
2,105.6
|
Gross margin
(%)
|
61.9 %
|
|
58.7 %
|
|
61.4 %
|
|
57.3 %
|
Operating
expense:
|
|
|
|
|
|
|
|
Research and
development
|
167.7
|
|
134.7
|
|
664.3
|
|
542.1
|
Sales and
marketing
|
146.1
|
|
145.7
|
|
583.0
|
|
553.6
|
General and
administrative
|
118.3
|
|
104.2
|
|
487.5
|
|
422.2
|
Restructuring
charges
|
19.5
|
|
9.7
|
|
45.6
|
|
30.2
|
Amortization of
purchased intangible assets
|
28.8
|
|
12.1
|
|
103.6
|
|
46.6
|
Total operating
expense
|
480.4
|
|
406.4
|
|
1,884.0
|
|
1,594.7
|
Operating
income
|
96.9
|
|
96.7
|
|
448.8
|
|
510.9
|
Non-operating income
(expense), net:
|
|
|
|
|
|
|
|
Divestitures (loss)
gain, net
|
(1.4)
|
|
(4.1)
|
|
9.2
|
|
99.0
|
Interest expense,
net
|
(47.8)
|
|
(24.2)
|
|
(161.0)
|
|
(71.1)
|
Income from equity
method investments, net
|
3.5
|
|
8.8
|
|
28.1
|
|
31.1
|
Other income
(expense), net
|
8.3
|
|
13.9
|
|
31.9
|
|
(0.8)
|
Total non-operating
income (expense), net
|
(37.4)
|
|
(5.6)
|
|
(91.8)
|
|
58.2
|
Income before
taxes
|
59.5
|
|
91.1
|
|
357.0
|
|
569.1
|
Income tax (benefit)
provision
|
(3.5)
|
|
5.5
|
|
45.7
|
|
119.4
|
Net income
|
$
63.0
|
|
$
85.6
|
|
311.3
|
|
449.7
|
Earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
$
0.25
|
|
$
0.35
|
|
$
1.26
|
|
$
1.81
|
Diluted
|
$
0.25
|
|
$
0.34
|
|
$
1.25
|
|
$
1.80
|
Shares used in
calculating earnings per share:
|
|
|
|
|
|
|
|
Basic
|
247.8
|
|
246.9
|
|
247.9
|
|
248.6
|
Diluted
|
249.0
|
|
248.3
|
|
249.1
|
|
250.2
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
(In
millions)
(Unaudited)
|
At the End of
Year
|
2023
|
|
2022
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
229.8
|
|
$
271.0
|
Accounts receivable,
net
|
706.6
|
|
643.3
|
Inventories
|
235.7
|
|
402.5
|
Prepaid
expenses
|
89.8
|
|
73.7
|
Other current
assets
|
147.8
|
|
127.7
|
Assets held for
sale
|
421.2
|
|
—
|
Total current
assets
|
1,830.9
|
|
1,518.2
|
Property and equipment,
net
|
202.5
|
|
219.0
|
Operating lease
right-of-use assets
|
124.0
|
|
121.2
|
Goodwill
|
5,350.6
|
|
4,137.9
|
Other purchased
intangible assets, net
|
1,243.5
|
|
498.1
|
Deferred income tax
assets
|
412.3
|
|
438.4
|
Other non-current
assets
|
375.5
|
|
336.2
|
Total
assets
|
$
9,539.3
|
|
$
7,269.0
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term
debt
|
$
530.4
|
|
$
300.0
|
Accounts
payable
|
165.3
|
|
175.5
|
Accrued compensation
and benefits
|
181.2
|
|
159.4
|
Deferred
revenue
|
663.1
|
|
639.1
|
Income taxes
payable
|
39.7
|
|
23.7
|
Other current
liabilities
|
201.3
|
|
164.4
|
Liabilities held for
sale
|
48.3
|
|
—
|
Total current
liabilities
|
1,829.3
|
|
1,462.1
|
Long-term
debt
|
2,536.2
|
|
1,220.0
|
Deferred revenue,
non-current
|
98.3
|
|
98.5
|
Deferred income tax
liabilities
|
287.8
|
|
157.8
|
Operating lease
liabilities
|
121.9
|
|
105.1
|
Other non-current
liabilities
|
165.7
|
|
175.3
|
Total
liabilities
|
5,039.2
|
|
3,218.8
|
Stockholders'
equity:
|
|
|
|
Common
stock
|
0.2
|
|
0.2
|
Additional
paid-in-capital
|
2,214.6
|
|
2,054.9
|
Retained
earnings
|
2,437.4
|
|
2,230.0
|
Accumulated other
comprehensive loss
|
(152.1)
|
|
(234.9)
|
Total stockholders'
equity
|
4,500.1
|
|
4,050.2
|
Total liabilities and
stockholders' equity
|
$
9,539.3
|
|
$
7,269.0
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In
millions)
(Unaudited)
|
|
|
Year of
|
|
2023
|
|
2022
|
Cash flow from
operating activities:
|
|
|
|
Net income
|
$
311.3
|
|
$
449.7
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation
expense
|
38.3
|
|
40.2
|
Amortization
expense
|
212.3
|
|
131.6
|
Deferred income
taxes
|
(104.6)
|
|
(40.0)
|
Stock-based
compensation
|
145.4
|
|
120.4
|
Divestitures gain,
net
|
(9.2)
|
|
(99.0)
|
Other, net
|
11.6
|
|
41.7
|
(Increase) decrease in
assets:
|
|
|
|
Accounts receivable,
net
|
(36.4)
|
|
(55.4)
|
Inventories
|
67.6
|
|
(113.5)
|
Other current and
non-current assets
|
(67.2)
|
|
(46.3)
|
Increase (decrease) in
liabilities:
|
|
|
|
Accounts
payable
|
(12.4)
|
|
(24.8)
|
Accrued compensation
and benefits
|
20.8
|
|
(54.2)
|
Deferred
revenue
|
26.0
|
|
108.6
|
Income taxes
payable
|
(4.0)
|
|
(38.3)
|
Other current and
non-current liabilities
|
(2.4)
|
|
(29.5)
|
Net cash provided by
operating activities
|
597.1
|
|
391.2
|
Cash flow from
investing activities:
|
|
|
|
Acquisitions of
businesses, net of cash acquired
|
(2,088.9)
|
|
(373.5)
|
Purchases of property
and equipment
|
(42.0)
|
|
(43.2)
|
Net proceeds from
divestitures
|
17.0
|
|
215.4
|
Other, net
|
45.8
|
|
(25.0)
|
Net cash used in
investing activities
|
(2,068.1)
|
|
(226.3)
|
Cash flow from
financing activities:
|
|
|
|
Issuance of common
stock, net of tax withholdings
|
6.7
|
|
(13.6)
|
Repurchases of common
stock
|
(100.0)
|
|
(394.7)
|
Proceeds from debt and
revolving credit lines
|
3,847.1
|
|
814.8
|
Payments on debt and
revolving credit lines
|
(2,292.9)
|
|
(590.2)
|
Other, net
|
(29.4)
|
|
(15.3)
|
Net cash provided by
(used in) financing activities
|
1,431.5
|
|
(199.0)
|
Effect of exchange rate
changes on cash and cash equivalents
|
7.4
|
|
(20.6)
|
Net decrease in cash
and cash equivalents
|
(32.1)
|
|
(54.7)
|
Cash and cash
equivalents - beginning of period
|
271.0
|
|
325.7
|
Cash and cash
equivalents - end of period (1)
|
$
238.9
|
|
$
271.0
|
|
|
|
|
(1) Includes
$9.1 million of cash and cash equivalents classified as held for
sale as of December 29, 2023.
|
REPORTING
SEGMENTS
(In
millions)
(Unaudited)
|
|
|
Reporting
Segments
|
|
|
Buildings and
Infrastructure
|
|
Geospatial
|
|
Resources
and Utilities
|
|
Transportation
|
FOURTH QUARTER OF
2023:
|
|
|
|
|
|
|
|
|
Segment
revenue
|
|
$
388.5
|
|
$
169.5
|
|
$
179.6
|
|
$
194.8
|
|
|
|
|
|
|
|
|
|
Segment operating
income
|
|
$
108.2
|
|
$
46.8
|
|
$
61.0
|
|
$
40.2
|
|
|
|
|
|
|
|
|
|
Segment operating
income as a % of segment revenue
|
|
27.9 %
|
|
27.6 %
|
|
34.0 %
|
|
20.6 %
|
|
|
|
|
|
|
|
|
|
FOURTH QUARTER OF
2022:
|
|
|
|
|
|
|
|
|
Segment
revenue
|
|
$
350.2
|
|
$
171.1
|
|
$
185.2
|
|
$
150.0
|
|
|
|
|
|
|
|
|
|
Segment operating
income
|
|
$
87.5
|
|
$
44.2
|
|
$
66.0
|
|
$
21.8
|
|
|
|
|
|
|
|
|
|
Segment operating
income as a % of segment revenue
|
|
25.0 %
|
|
25.8 %
|
|
35.6 %
|
|
14.5 %
|
|
|
Reporting
Segments
|
|
|
Buildings and
Infrastructure
|
|
Geospatial
|
|
Resources and
Utilities
|
|
Transportation
|
YEAR
2023:
|
|
|
|
|
|
|
|
|
Segment
revenue
|
|
$
1,593.1
|
|
$
695.5
|
|
$
769.1
|
|
$
741.0
|
|
|
|
|
|
|
|
|
|
Segment operating
income
|
|
$
440.8
|
|
$
209.1
|
|
$
270.6
|
|
$
130.2
|
|
|
|
|
|
|
|
|
|
Segment operating
income as a % of segment revenue
|
|
27.7 %
|
|
30.1 %
|
|
35.2 %
|
|
17.6 %
|
|
|
|
|
|
|
|
|
|
YEAR
2022:
|
|
|
|
|
|
|
|
|
Segment
revenue
|
|
$
1,494.0
|
|
$
756.5
|
|
$
821.6
|
|
$
604.2
|
|
|
|
|
|
|
|
|
|
Segment operating
income
|
|
$
406.3
|
|
$
221.4
|
|
$
278.3
|
|
$
58.8
|
|
|
|
|
|
|
|
|
|
Segment operating
income as a % of segment revenue
|
|
27.2 %
|
|
29.3 %
|
|
33.9 %
|
|
9.7 %
|
|
|
GAAP TO NON-GAAP
RECONCILIATION
(Dollars in millions,
except per share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
Fourth Quarter
of
|
|
Year of
|
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
Dollar
Amount
|
% of
Revenue
|
|
Dollar
Amount
|
% of
Revenue
|
|
Dollar
Amount
|
% of
Revenue
|
|
Dollar
Amount
|
% of
Revenue
|
REVENUE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
revenue:
|
|
|
$
932.4
|
|
|
$
856.5
|
|
|
$ 3,798.7
|
|
|
$ 3,676.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
MARGIN:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
margin:
|
|
|
$
577.3
|
61.9 %
|
|
$
503.1
|
58.7 %
|
|
$ 2,332.8
|
61.4 %
|
|
$ 2,105.6
|
57.3 %
|
|
|
Amortization of
purchased intangible assets
|
(A)
|
|
27.8
|
|
|
21.6
|
|
|
108.7
|
|
|
85.0
|
|
|
|
Acquisition /
divestiture items
|
(B)
|
|
0.1
|
|
|
0.2
|
|
|
0.5
|
|
|
0.2
|
|
|
|
Stock-based
compensation / deferred compensation
|
(C)
|
|
3.6
|
|
|
3.4
|
|
|
15.0
|
|
|
12.1
|
|
|
|
Restructuring and other
costs
|
(D)
|
|
0.5
|
|
|
0.7
|
|
|
(0.1)
|
|
|
1.7
|
|
|
Non-GAAP gross
margin:
|
|
|
$
609.3
|
65.3 %
|
|
$
529.0
|
61.8 %
|
|
$ 2,456.9
|
64.7 %
|
|
$ 2,204.6
|
60.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
expenses:
|
|
|
$
480.4
|
51.5 %
|
|
$
406.4
|
47.4 %
|
|
$ 1,884.0
|
49.6 %
|
|
$ 1,594.7
|
43.4 %
|
|
|
Amortization of
purchased intangible assets
|
(A)
|
|
(28.8)
|
|
|
(12.1)
|
|
|
(103.6)
|
|
|
(46.6)
|
|
|
|
Acquisition /
divestiture items
|
(B)
|
|
(16.8)
|
|
|
(12.3)
|
|
|
(71.9)
|
|
|
(32.6)
|
|
|
|
Stock-based
compensation / deferred compensation
|
(C)
|
|
(32.1)
|
|
|
(25.7)
|
|
|
(136.1)
|
|
|
(99.9)
|
|
|
|
Restructuring and other
costs
|
(D)
|
|
(20.0)
|
|
|
(15.1)
|
|
|
(50.2)
|
|
|
(52.5)
|
|
|
Non-GAAP operating
expenses:
|
|
|
$
382.7
|
41.0 %
|
|
$
341.2
|
39.8 %
|
|
$ 1,522.2
|
40.1 %
|
|
$ 1,363.1
|
37.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income:
|
|
|
$ 96.9
|
10.4 %
|
|
$ 96.7
|
11.3 %
|
|
$
448.8
|
11.8 %
|
|
$
510.9
|
13.9 %
|
|
|
Amortization of
purchased intangible assets
|
(A)
|
|
56.6
|
|
|
33.7
|
|
|
212.3
|
|
|
131.6
|
|
|
|
Acquisition /
divestiture items
|
(B)
|
|
16.9
|
|
|
12.5
|
|
|
72.4
|
|
|
32.8
|
|
|
|
Stock-based
compensation / deferred compensation
|
(C)
|
|
35.7
|
|
|
29.1
|
|
|
151.1
|
|
|
112.0
|
|
|
|
Restructuring and other
costs
|
(D)
|
|
20.5
|
|
|
15.8
|
|
|
50.1
|
|
|
54.2
|
|
|
Non-GAAP operating
income:
|
|
|
$
226.6
|
24.3 %
|
|
$
187.8
|
21.9 %
|
|
$
934.7
|
24.6 %
|
|
$
841.5
|
22.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-OPERATING INCOME
(EXPENSE), NET:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP non-operating
income (expense), net:
|
|
|
$
(37.4)
|
|
|
$ (5.6)
|
|
|
$
(91.8)
|
|
|
$ 58.2
|
|
|
|
Acquisition /
divestiture items
|
(B)
|
|
1.1
|
|
|
(4.5)
|
|
|
(36.5)
|
|
|
(107.5)
|
|
|
|
Deferred
compensation
|
(C)
|
|
(2.9)
|
|
|
(2.0)
|
|
|
(5.8)
|
|
|
8.5
|
|
|
|
Restructuring and other
costs
|
(D)
|
|
(0.1)
|
|
|
5.9
|
|
|
1.3
|
|
|
6.0
|
|
|
Non-GAAP non-operating
expense, net:
|
|
|
$
(39.3)
|
|
|
$ (6.2)
|
|
|
$
(132.8)
|
|
|
$
(34.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
(benefit) provision:
|
|
|
$ (3.5)
|
(5.9) %
|
|
$ 5.5
|
6.0 %
|
|
$ 45.7
|
12.8 %
|
|
$
119.4
|
21.0 %
|
|
|
Non-GAAP items tax
effected
|
(E)
|
|
8.3
|
|
|
15.2
|
|
|
56.9
|
|
|
49.9
|
|
|
|
Difference in GAAP and
Non-GAAP tax rate
|
(F)
|
|
25.9
|
|
|
11.0
|
|
|
35.6
|
|
|
(22.9)
|
|
|
Non-GAAP income tax
provision:
|
|
|
$ 30.7
|
16.4 %
|
|
$ 31.7
|
17.5 %
|
|
$
138.2
|
17.2 %
|
|
$
146.4
|
18.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income:
|
|
|
$ 63.0
|
|
|
$ 85.6
|
|
|
$
311.3
|
|
|
$
449.7
|
|
|
|
Amortization of
purchased intangible assets
|
(A)
|
|
56.6
|
|
|
33.7
|
|
|
212.3
|
|
|
131.6
|
|
|
|
Acquisition /
divestiture items
|
(B)
|
|
18.0
|
|
|
8.0
|
|
|
35.9
|
|
|
(74.7)
|
|
|
|
Stock-based
compensation / deferred compensation
|
(C)
|
|
32.8
|
|
|
27.1
|
|
|
145.3
|
|
|
120.5
|
|
|
|
Restructuring and other
costs
|
(D)
|
|
20.4
|
|
|
21.7
|
|
|
51.4
|
|
|
60.2
|
|
|
|
Non-GAAP tax
adjustments
|
(E) - (F)
|
|
(34.2)
|
|
|
(26.2)
|
|
|
(92.5)
|
|
|
(27.0)
|
|
|
Non-GAAP net
income:
|
|
|
$
156.6
|
|
|
$
149.9
|
|
|
$
663.7
|
|
|
$
660.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED NET INCOME
PER SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted net income
per share:
|
|
|
$ 0.25
|
|
|
$ 0.34
|
|
|
$ 1.25
|
|
|
$ 1.80
|
|
|
|
Amortization of
purchased intangible assets
|
(A)
|
|
0.23
|
|
|
0.14
|
|
|
0.85
|
|
|
0.53
|
|
|
|
Acquisition /
divestiture items
|
(B)
|
|
0.07
|
|
|
0.03
|
|
|
0.14
|
|
|
(0.30)
|
|
|
|
Stock-based
compensation / deferred compensation
|
(C)
|
|
0.13
|
|
|
0.11
|
|
|
0.58
|
|
|
0.48
|
|
|
|
Restructuring and other
costs
|
(D)
|
|
0.08
|
|
|
0.09
|
|
|
0.21
|
|
|
0.24
|
|
|
|
Non-GAAP tax
adjustments
|
(E) - (F)
|
|
(0.13)
|
|
|
(0.11)
|
|
|
(0.37)
|
|
|
(0.11)
|
|
|
Non-GAAP diluted net
income per share:
|
|
|
$ 0.63
|
|
|
$ 0.60
|
|
|
$ 2.66
|
|
|
$ 2.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income:
|
|
|
$ 96.9
|
10.4 %
|
|
$ 96.7
|
11.3 %
|
|
$
448.8
|
11.8 %
|
|
$
510.9
|
13.9 %
|
|
|
Amortization of
purchased intangible assets
|
(A)
|
|
56.6
|
|
|
33.7
|
|
|
212.3
|
|
|
131.6
|
|
|
|
Acquisition /
divestiture items
|
(B)
|
|
16.9
|
|
|
12.5
|
|
|
72.4
|
|
|
32.8
|
|
|
|
Stock-based
compensation / deferred compensation
|
(C)
|
|
35.7
|
|
|
29.1
|
|
|
151.1
|
|
|
112.0
|
|
|
|
Restructuring and other
costs
|
(D)
|
|
20.5
|
|
|
15.8
|
|
|
50.1
|
|
|
54.2
|
|
|
Non-GAAP operating
income:
|
|
|
226.6
|
24.3 %
|
|
187.8
|
21.9 %
|
|
934.7
|
24.6 %
|
|
841.5
|
22.9 %
|
|
|
Depreciation expense
and cloud computing amortization
|
|
|
11.1
|
|
|
11.8
|
|
|
46.9
|
|
|
44.7
|
|
|
|
Income from equity
method investments, net
|
|
|
3.5
|
|
|
8.8
|
|
|
28.1
|
|
|
31.1
|
|
|
Adjusted
EBITDA:
|
|
|
$
241.2
|
25.9 %
|
|
$
208.4
|
24.3 %
|
|
$ 1,009.7
|
26.6 %
|
|
$
917.3
|
25.0 %
|
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. Other companies may define
Adjusted EBITDA differently. Adjusted EBITDA is not intended
to purport to be an alternative to net income or operating income
as a measure of operating performance or cash flow from operating
activities as a measure of liquidity. 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
unusual one-time acquisition/divestiture charges, including foreign
currency exchange rate gains/losses related to an acquisition,
divestiture gains/losses, and strategic investment
impairments. 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.
(E) Non-GAAP items tax
effected. This amount adjusts the provision
for income taxes to reflect the effect of the non-GAAP items (A) -
(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
("GILTI"), 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.
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, maintenance and support, and
recurring transaction revenue for the current quarter and adding
the portion of the contract value of all of our term licenses
attributable to the current quarter, and 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.
Organic Revenue
Organic revenue refers to revenue excluding the impacts of (i)
foreign currency translation, and (ii) acquisitions and
divestitures.
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SOURCE Trimble