TRIMBLE, INC. SUNNYVALE, Calif., April 28, 2016 /PRNewswire/ -- Trimble (NASDAQ: TRMB) today announced financial results for the first quarter of 2016.
First Quarter 2016 Financial Summary
First quarter 2016 revenue of $583.0 million was flat as compared to the first quarter of 2015. Engineering and Construction revenue was $309.8 million, up 4 percent. Field Solutions revenue was $106.0 million, down 8 percent. Mobile Solutions revenue was $136.3 million, up 6 percent. Advanced Devices revenue was $30.9 million, down 22 percent. Foreign currency translation unfavorably impacted company revenue by approximately 1 percent as compared to the first quarter of 2015.
GAAP operating income was $29.9 million, down 24 percent as compared to the first quarter of 2015. GAAP operating margin was 5.1 percent of revenue as compared to 6.8 percent of revenue in the first quarter of 2015.
GAAP net income was $19.8 million, down 42 percent as compared to the first quarter of 2015. Diluted GAAP earnings per share were $0.08 as compared to diluted GAAP earnings per share of $0.13 in the first quarter of 2015.
Non-GAAP operating income of $88.5 million was down 9 percent as compared to the first quarter of 2015. Non-GAAP operating margin was 15.1 percent of revenue as compared to 16.6 percent of revenue in the first quarter of 2015.
Non-GAAP net income of $64.5 million was down 11 percent as compared to the first quarter of 2015. Diluted non-GAAP earnings per share were $0.25 as compared to diluted non-GAAP earnings per share of $0.28 in the first quarter of 2015.
The GAAP tax rate for the quarter was 33 percent as compared to 23 percent in the first quarter of 2015, and the non-GAAP tax rate was 24 percent, unchanged from the first quarter of 2015.
Operating cash flow for the first quarter of 2016 was $113.2 million, up 6 percent as compared to the first quarter of 2015. Deferred revenue for the first quarter of 2016 was $319.5 million, up 13 percent as compared to the first quarter of 2015.
"Revenue for all segments in the quarter came within expectations and deferred revenue grew to a record level," said Steven W. Berglund, Trimble's president and chief executive officer. "Earnings were impacted by product and geographic mix as well as operating expenses associated with recent acquisitions. We remain on track for revenue growth for the full year, with particular strength in the Mobile Solutions segment and from the heavy civil and buildings businesses in the Engineering and Construction segment. We anticipate achieving our operating margin goals during the year due to gross margin improvement and cost containment initiatives."
Forward Looking Guidance
For the second quarter of 2016 Trimble expects revenue to be between $595 million and $625 million with GAAP earnings per share of $0.08 to $0.13 and non-GAAP earnings per share of $0.26 to $0.31. Non-GAAP guidance excludes the amortization of intangibles of $40 million related to previous acquisitions, anticipated acquisition costs of $2 million, the anticipated impact of stock-based compensation expense of $14 million, and $4 million in anticipated restructuring charges. GAAP guidance assumes a tax rate of 27 percent and non-GAAP guidance assumes a tax rate of 24 percent. Both GAAP and non-GAAP earnings per share assume approximately 255 million shares outstanding.
Investor Conference Call / Webcast Details
Trimble will hold a conference call on April 28 at 1:30 p.m. PT to review its first quarter 2016 results. It 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 pass code is 93054609. 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.
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 impact of acquisitions, the ability to deliver revenue, earnings per share and other financial projections that Trimble has guided for the second quarter and full year, 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. 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 agricultural market, critical part supply chain shortages, possible write-offs of goodwill, and regulatory proceedings affecting GPS. 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.
FTRMB
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share data)
(Unaudited)
First Quarter of
----------------
2016 2015
---- ----
Revenues
Product $393.6 $400.6
Service 101.6 100.9
Subscription 87.8 81.1
Total revenues 583.0 582.6
----- -----
Cost of sales
Product 190.0 187.7
Service 41.6 41.4
Subscription 26.7 23.8
Amortization of
purchased
intangible assets 24.1 22.5
Total cost of sales 282.4 275.4
----- -----
-
Gross margin 300.6 307.2
----- -----
Gross margin (%) 51.6% 52.7%
Operating expenses
Research and
development 87.7 87.2
Sales and marketing 96.7 96.5
General and
administrative 68.3 64.7
Restructuring
charges 1.8 1.1
Amortization of
purchased
intangible assets 16.2 18.2
Total operating
expenses 270.7 267.7
----- -----
Operating income 29.9 39.5
Non-operating income (expense), net
Interest expense (6.6) (6.4)
Foreign currency
transaction gain
(loss), net (0.1) 1.1
Income from equity
method investments,
net 2.9 3.0
Other income, net 3.3 7.0
Total non-operating
income (expense),
net (0.5) 4.7
---- ---
Income before taxes 29.4 44.2
Income tax provision 9.7 10.2
Net income 19.7 34.0
Less: Net income
(loss) attributable
to noncontrolling
interests (0.1) (0.1)
Net income
attributable to
Trimble Navigation
Limited $19.8 $34.1
===== =====
Earnings per share attributable to Trimble
Navigation Limited:
Basic $0.08 $0.13
----- -----
Diluted $0.08 $0.13
----- -----
Shares used in calculating earnings per
share:
Basic 251.0 259.4
Diluted 254.0 262.4
----- -----
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)
First Quarter of Fiscal Year End
As of 2016 2015
----- ---- ----
Assets
Current assets:
Cash and cash
equivalents $174.7 $116.0
Accounts
receivable, net 377.8 361.9
Other receivables 15.3 14.9
Inventories, net 255.5 261.1
Other current
assets 49.3 44.5
---- ----
Total current
assets 872.6 798.4
Property and
equipment, net 155.4 159.2
Goodwill 2,128.4 2,106.4
Other purchased
intangible
assets, net 452.5 487.1
Other non-
current assets 141.0 129.6
----- -----
Total assets $3,749.9 $3,680.7
======== ========
Liabilities and
Shareholders'
Equity
Current
liabilities:
Short-term debt $135.3 $118.3
Accounts payable 112.6 99.8
Accrued
compensation and
benefits 86.6 98.9
Deferred revenue 287.2 234.6
Accrued warranty
expense 17.9 18.5
Other current
liabilities 87.2 90.8
Total current
liabilities 726.8 660.9
Long-term debt 539.6 611.4
Non-current
deferred revenue 32.3 29.6
Deferred income
tax liabilities 53.5 51.7
Other non-
current
liabilities 111.0 106.5
Total liabilities 1,463.2 1,460.1
------- -------
Shareholders'
equity:
Common stock 1,267.3 1,238.3
Retained earnings 1,157.3 1,148.2
Accumulated other
comprehensive
loss (138.7) (166.8)
------ ------
Total Trimble
Navigation
Limited
shareholders'
equity 2,285.9 2,219.7
Noncontrolling
interests 0.8 0.9
Total
shareholders'
equity 2,286.7 2,220.6
------- -------
Total liabilities
and
shareholders'
equity $3,749.9 $3,680.7
======== ========
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
First Quarter of
----------------
2016 2015
---- ----
Cash flow from operating activities:
Net
Income $19.7 $34.0
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation
expense 9.1 8.7
Amortization
expense 40.3 40.7
Provision
for
doubtful
accounts 0.6 1.0
Deferred
income
taxes (0.1) (1.3)
Stock-
based
compensation 13.7 12.5
Income
from
equity
method
investments (2.9) (3.0)
Acquisition
/
divestiture
(gain)/loss (3.1) (5.8)
Excess
tax
benefit
for
stock-
based
compensation (1.2) (0.7)
Provision
for
excess
and
obsolete
inventories 4.1 0.8
Other
non-
cash
items 0.7 11.0
Add decrease (increase) in assets:
Accounts
receivables (14.1) (28.9)
Other
receivables (2.2) 4.9
Inventories 3.1 (6.4)
Other
current
and
non-
current
assets (4.9) (8.0)
Add increase (decrease) in liabilities:
Accounts
payable 11.9 11.2
Accrued
compensation
and
benefits (13.5) (15.0)
Deferred
revenue 54.1 49.4
Accrued
warranty (0.7) (1.5)
Accrued
liabilities (1.4) 3.6
Net
cash
provided
by
operating
activities 113.2 107.2
----- -----
Cash flow from investing activities:
Acquisitions
of
businesses,
net of
cash
acquired (15.8) (36.9)
Acquisitions
of
property
and
equipment (4.9) (10.6)
Purchases
of
equity
investments (0.4) (1.3)
Net
proceeds
from
sale
of
businesses 8.1 12.6
Dividends
received
from
equity
method
investments 5.0 -
Other (0.3) 0.8
Net
cash
used
in
investing
activities (8.3) (35.4)
---- -----
Cash flow from financing activities:
Issuance
of
common
stock,
net of
tax
withholdings 16.1 14.7
Repurchases
and
retirement
of
common
stock (12.2) (12.6)
Excess
tax
benefit
for
stock-
based
compensation 1.2 0.7
Proceeds
from
debt
and
revolving
credit
lines 92.0 130.0
Payments
on
debt
and
revolving
credit
lines (147.0) (198.0)
Net
cash
used
in
financing
activities (49.9) (65.2)
----- -----
Effect
of
exchange
rate
changes
on
cash
and
cash
equivalents 3.7 (8.9)
--- ----
Net
increase
(decrease)
in
cash
and
cash
equivalents 58.7 (2.3)
Cash
and
cash
equivalents
-
beginning
of
period 116.0 148.0
----- -----
Cash
and
cash
equivalents
-end
of
period $174.7 $145.7
====== ======
REPORTING SEGMENTS
(Dollars in millions)
(Unaudited)
Reporting Segments
------------------
Engineering
and Field Mobile Advanced
Construction Solutions Solutions Devices
------------ --------- --------- -------
FIRST QUARTER OF FISCAL 2016 :
Revenue $309.8 $106.0 $136.3 $30.9
Operating
income before
corporate
allocations $44.1 $33.9 $18.9 $10.3
Operating margin (% of
segment external net
revenue) 14.2% 32.0% 13.9% 33.3%
FIRST QUARTER OF FISCAL 2015 :
Revenue $299.3 $115.3 $128.2 $39.8
Operating
income before
corporate
allocations $37.0 $40.6 $20.5 $15.2
Operating margin (% of
segment external net
revenue) 12.4% 35.2% 16.0% 38.2%
GAAP TO NON-GAAP RECONCILIATION
(Dollars in millions, except per share data)
(Unaudited)
First Quarter of
----------------
2016 2015
---- ----
Dollar % of Dollar % of
Amount Revenue Amount Revenue
------ ------- ------ -------
GROSS MARGIN:
GAAP gross margin: $300.6 51.6% $307.2 52.7%
Restructuring charges ( A ) 0.3 0.1% 0.2 0.0%
Amortization of purchased intangible
assets ( B ) 24.1 4.0% 22.5 3.9%
Stock-based compensation ( C ) 1.0 0.2% 0.9 0.2%
Non-GAAP gross
margin: $326.0 55.9% $330.8 56.8%
------ ------
OPERATING EXPENSES:
GAAP operating
expenses: $270.7 46.4% $267.7 45.9%
Restructuring charges ( A ) (1.8) -0.3% (1.1) -0.2%
Amortization of purchased intangible
assets ( B ) (16.2) -2.8% (18.2) -3.1%
Stock-based compensation ( C ) (12.7) -2.2% (11.6) -2.0%
Acquisition / divestiture items ( D ) (1.6) -0.3% (2.8) -0.5%
Executive transition costs ( E ) (0.9) -0.1% - 0.0%
Non-GAAP
operating
expenses: $237.5 40.7% $234.0 40.1%
------ ------
OPERATING INCOME:
GAAP operating
income: $29.9 5.1% $39.5 6.8%
Restructuring charges ( A ) 2.1 0.4% 1.3 0.2%
Amortization of purchased intangible
assets ( B ) 40.3 6.8% 40.7 7.0%
Stock-based compensation ( C ) 13.7 2.4% 12.5 2.1%
Acquisition / divestiture items ( D ) 1.6 0.3% 2.8 0.5%
Executive transition costs ( E ) 0.9 0.1% - 0.0%
Non-GAAP
operating income: $88.5 15.1% $96.8 16.6%
----- -----
NON-OPERATING INCOME (EXPENSE), NET:
GAAP non-
operating income
(expense), net: $(0.5) $4.7
Acquisition / divestiture items ( D ) (3.1) (5.8)
Debt issuance cost write-off ( F ) - (0.1)
Non-GAAP non-
operating
expense, net: $(3.6) $(1.2)
GAAP and GAAP and
Non-GAAP Non-GAAP
Tax Rate % ( I ) Tax Rate % ( I )
--------- ---------
INCOME TAX PROVISION:
GAAP income tax
provision: $9.7 33% $10.2 23%
Non-GAAP items tax effected ( G ) 18.3 11.8
Difference in GAAP and Non-GAAP tax
rate ( H ) (7.5) 1.0
Non-GAAP income
tax provision: $20.5 24% $23.0 24%
----- -----
NET INCOME:
GAAP net income
attributable to
Trimble
Navigation
Limited $19.8 $34.1
Restructuring charges ( A ) 2.1 1.3
Amortization of purchased intangible
assets ( B ) 40.3 40.7
Stock-based compensation ( C ) 13.7 12.5
Acquisition / divestiture items ( D ) (1.5) (3.0)
Executive transition costs ( E ) 0.9 -
Debt issuance cost write-off ( F ) - (0.1)
Non-GAAP tax adjustments ( G ) + ( H ) (10.8) (12.8)
Non-GAAP net
income
attributable to
Trimble
Navigation
Limited $64.5 $72.7
DILUTED NET INCOME PER SHARE:
GAAP diluted net
income per share
attributable to
Trimble
Navigation
Limited $0.08 $0.13
Restructuring charges ( A ) 0.01 -
Amortization of purchased intangible
assets ( B ) 0.16 0.16
Stock-based compensation ( C ) 0.05 0.05
Acquisition / divestiture items ( D ) (0.01) (0.01)
Executive transition costs ( E ) - -
Debt issuance cost write-off ( F ) - -
Non-GAAP tax adjustments ( G ) + ( H ) (0.04) (0.05)
Non-GAAP diluted
net income per
share
attributable to
Trimble
Navigation
Limited $0.25 $0.28
FOOTNOTES TO GAAP TO NON-GAAP RECONCILIATION
(Unaudited)
Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures. The non-GAAP financial measures included in the previous table
as well as detailed explanations to the adjustments to comparable GAAP measures, are set forth below:
Non-GAAP gross margin
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 gross margin excludes restructuring costs, amortization of purchased intangible assets and stock-based compensation from GAAP gross margin. We believe that
these exclusions offer investors additional information that may be useful to view trends in our gross margin performance.
Non-GAAP operating expenses
We believe this measure is important to investors evaluating our non-GAAP spending in relation to revenue. Non-GAAP operating expenses exclude restructuring costs, amortization
of purchased intangible assets, stock-based compensation, acquisition/divestiture costs associated with external and incremental costs resulting directly from merger and
acquisition activities such as legal, due diligence, and integration costs, and executive transition costs from GAAP operating expenses. We believe that these exclusions offer
investors supplemental information to facilitate comparison of our operating expenses to our prior results.
Non-GAAP operating income
We believe our investors benefit by understanding our non-GAAP operating income trends which are driven by revenue, gross margin, and spending. Non-GAAP operating income
excludes restructuring costs, amortization of purchased intangible assets, stock-based compensation, acquisition/divestiture costs associated with external and incremental
costs resulting directly from merger and acquisition activities such as legal, due diligence, and integration costs, and executive transition costs. We believe that these
exclusions offer an alternative means for our investors to evaluate current operating performance compared to results of other periods.
Non-GAAP non-operating income (expense), net
We believe this measure helps investors evaluate our non-operating income trends. Non-GAAP non-operating income (expense), net excludes acquisition and divestiture gains/
losses associated with unusual acquisition related items such as intangible asset impairment charges and gains or losses related to the acquisition or sale of certain businesses
and investments. Non-GAAP non-operating income (expense), net also excludes the write-off of debt issuance costs associated with terminated and/or modified credit facilities
and costs associated with the issuance of new credit facilities and Senior Notes that were not capitalized as debt issuance costs. We believe that these exclusions provide
investors with a supplemental view of our ongoing financial results.
Non-GAAP income tax provision
We believe that providing investors with the non-GAAP income tax provision is beneficial because it provides for consistent treatment of the excluded items in our non-GAAP
presentation.
Non-GAAP net income
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 net income excludes
restructuring costs, amortization of purchased intangible assets, stock-based compensation, acquisition and divestiture costs, executive transition costs, write-off of debt
issuance costs and non-GAAP tax adjustments from GAAP net income. We believe our investors benefit from understanding these exclusions and from an alternative view of our net
income performance as compared to our past net income performance.
Non-GAAP diluted net income per share
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. Non-GAAP diluted net income per share excludes restructuring costs, amortization of purchased intangible assets, stock-based compensation,
acquisition and divestiture costs, executive transition costs, a write off of debt issuance costs and non-GAAP tax adjustments from GAAP diluted net income per share. We believe
that these exclusions offer investors a useful view of our diluted net income per share as compared to our past diluted net income per share.
These non-GAAP measures can be used to evaluate our historical and prospective financial performance, as well as our performance relative to competitors. 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. Accordingly, management excludes from non-GAAP those items relating to
restructuring, amortization of purchased intangible assets, stock based compensation, acquisition and divestiture items, executive transition costs, write- off of debt issuance
costs and non-GAAP tax adjustments. For detailed explanations of the adjustments made to comparable GAAP measures, see items (A) - ( I ) below.
( A ) Restructuring costs.Included in our GAAP presentation of cost of sales
and operating expenses, restructuring costs recorded are primarily for
employee compensation resulting from reductions in employee headcount
in connection with our company restructurings. We exclude
restructuring costs from our non-GAAP measures because we believe
they do not reflect expected future operating expenses, they are not
indicative of our core operating performance, and they are not
meaningful in comparisons to our past operating performance. We have
incurred restructuring expense in each of the periods presented
however the amount incurred can vary significantly based on whether a
restructuring has occurred in the period and the timing of headcount
reductions.
( B ) Amortization of purchased intangible assets.Included in our GAAP
presentation of gross margin and operating expenses is amortization of
purchased intangible assets. US GAAP accounting requires that
intangible assets are recorded at fair value and amortized over their
useful lives. Consequently, the timing and size of our acquisitions
will cause our operating results to vary from period to period, making
a comparison to past performance difficult for investors. This
accounting treatment may cause differences when comparing our results
to companies that grow internally because the fair value assigned to
the intangible assets acquired through acquisition may significantly
exceed the equivalent expenses that a company may incur for similar
efforts when performed internally. Furthermore, the useful life that
we expense our intangible assets over may be substantially different
from the time period that an internal growth company incurs and
recognizes such expenses. We believe that by excluding the
amortization of purchased intangible assets, which primarily
represents technology and/or customer relationships already
developed, it provides an alternative way for investors to compare our
operations pre-acquisition to those post-acquisitions and to those
of our competitors that have pursued internal growth strategies.
However, we note that companies that grow internally will incur costs
to develop intangible assets that will be expensed in the period
incurred, which may make a direct comparison more difficult.
( C ) Stock-based compensation. Included in our GAAP presentation of cost of
sales and operating expenses, stock-based compensation consists of
expenses for employee stock options and awards and purchase rights
under our employee stock purchase plan. We exclude stock-based
compensation expense from our non-GAAP measures because some
investors may view it as not reflective of our core operating
performance as it is a non-cash expense. For the first quarter of
and fiscal years 2016 and 2015, stock-based compensation was
allocated as follows:
First Quarter of
----------------
(Dollars in millions) 2016 2015
---- ----
Cost of sales $1.0 $0.9
Research and development 2.3 2.2
Sales and Marketing 2.0 2.3
General and administrative 8.4 7.1
$13.7 $12.5
----- -----
( D ) Acquisition / divestiture items. Included in our GAAP presentation of
operating expenses, acquisition costs consist of external and
incremental costs resulting directly from merger and acquisition and
strategic investment activities such as legal, due diligence, and
integration costs as well as adjustments to the fair value of earn-
out liabilities. Included in our GAAP presentation of non-operating
income (expense) net, acquisition / divestiture items includes
unusual acquisition, investment, or divestiture gains/losses.
Although we do numerous acquisitions, the costs that have been
excluded from the non-GAAP measures are costs specific to particular
acquisitions. These are one-time costs that vary significantly in
amount and timing and are not indicative of our core operating
performance.
( E ) Executive transition costs. Included in our GAAP presentation of
operating expenses are amounts paid to the Company's former CFO upon
his departure under the terms of his executive severance agreement. We
excluded these payments from our non-GAAP measures because they
represent non-recurring expenses and are not indicative of our
ongoing operating expenses. We further believe that excluding the
executive transition costs from our non-GAAP results is useful to
investors in that it allows for period-over-period comparability.
( F ) Debt issuance cost write-off. Included in our GAAP non-operating
income (expense), is the write-off of debt issuance costs for
terminated and/or modified credit facilities and costs associated
with the issuance of new credit facilities and Senior Notes in fiscal
2014 that were not capitalized as debt issuance costs. We excluded
the debt issuance cost write-off from our non-GAAP measures. We
believe that investors benefit from excluding this item from our non-
operating income to facilitate a more meaningful evaluation of our
non-operating income trends.
( G ) Non-GAAP items tax effected. This amount adjusts the provision for
income taxes to reflect the effect of the non-GAAP items ( A ) - ( F
) on non-GAAP net income. We believe this information is useful to
investors because it provides for consistent treatment of the excluded
items in this non-GAAP presentation.
( H ) 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 income
(expense), Net.
( I ) GAAP and non-GAAP tax rate %. 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. We believe that investors benefit from a presentation
of non-GAAP tax rate percentage as a way of facilitating a comparison
to non-GAAP tax rates in prior periods.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/trimble-reports-first-quarter-2016-results-300259625.html
SOURCE Trimble
