Trimble Announces Record First Quarter 2022 Results
– Record first quarter total revenue of $994 million, up 12 percent
– Annualized recurring revenue of $1.47 billion, up 12 percent and 14 percent on an organic basis
SUNNYVALE, Calif., May 5, 2022 /PRNewswire/ — Trimble Inc. (NASDAQ: TRMB) today announced financial results for the first quarter of 2022.
First Quarter 2022 Financial Highlights
- Revenue of $993.7 million, up 12 percent year over year
- Annualized recurring revenue (ARR) was $1.47 billion, up 12 percent year over year
- GAAP operating income was $156.9 million and non-GAAP operating income was $233.1 million
- GAAP net income was $110.3 million and non-GAAP net income was $184.8 million
- Diluted earnings per share was $0.44 on a GAAP basis and $0.73 on a non-GAAP basis
- Adjusted EBITDA of $253.3 million, 25.5 percent of revenue
- Share repurchases of $104.7 million
Executive Quote
“Trimble is a purpose-driven company, transforming and digitizing industries that support how we live, what we eat, how we move,” said Rob Painter, Trimble’s president and chief executive officer. “Record total revenue and annualized recurring revenue demonstrate the value of our continuing growth and commitment to innovation and sustainability. Excluding the impact of our recently announced divestitures and recent changes in foreign exchange rates, our updated guidance reflects a projection of higher ARR growth, revenue and earnings.”
Forward Looking Guidance
After giving effect to the recently announced divestitures of the Time and Frequency, LOADRITE, Spectra Precision Tools, SECO accessories and Beena Vision businesses (the “Divestitures”) and effects of recent changes in foreign exchange rates, for the full-year 2022, Trimble now expects to report revenue between $3,800 million and $3,880 million and non-GAAP earnings per share between $2.71 and $2.86. Non-GAAP guidance assumes a tax rate between 18.5 to 19.0 percent. Non-GAAP earnings per share assume approximately 253 million shares outstanding. This guidance range excludes the gain on the anticipated Divestitures. Trimble is unable to provide a quantitative reconciliation of these measures to GAAP with a reasonable degree of accuracy due to certain open adjustments to book value, including working capital changes. The Divestitures are subject to customary closing conditions and are expected to close in the second quarter.
Investor Conference Call / Webcast Details
Trimble will hold a conference call on May 5, 2022 at 5:00 a.m. PT to review its first quarter 2022 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 (844) 817-7339 (U.S.) or (409) 231-2959 (international). The passcode is 1014217. The replay will also be available on the web at the address above.
About Trimble
Trimble is an industrial technology company transforming the way the world works by delivering solutions that enable our customers to thrive. 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 to enterprise lifecycle solutions, Trimble is transforming industries such as agriculture, construction, geospatial and transportation. 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 the Divestitures in a timely manner. The Company’s results would also be negatively impacted by deterioration in economic conditions as a result of the COVID-19 pandemic, supply chain shortages and disruptions, as well as general inflationary pressures, resulting in increases in costs and reduced revenue, adverse geopolitical developments and the potential impact of volatility and conflict in the political and economic environment, including the Russian invasion of Ukraine and its direct and indirect impact on our business, weakening in the macro environment, foreign exchange fluctuations, the pace we transition our business model towards a subscription model, and the imposition of barriers to international trade. 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) | |||
| First Quarter of | |||
| 2022 | 2021 | ||
| Revenue: | |||
| Product | $ 621.6 | $ 539.4 | |
| Service | 161.1 | 162.3 | |
| Subscription | 211.0 | 184.8 | |
| Total revenue | 993.7 | 886.5 | |
| Cost of sales: | |||
| Product | 308.4 | 255.7 | |
| Service | 63.3 | 59.6 | |
| Subscription | 49.9 | 55.8 | |
| Amortization of purchased intangible assets | 22.5 | 22.1 | |
| Total cost of sales | 444.1 | 393.2 | |
| Gross margin | 549.6 | 493.3 | |
| Gross margin (%) | 55.3 % | 55.6 % | |
| Operating expense: | |||
| Research and development | 140.3 | 129.4 | |
| Sales and marketing | 131.9 | 122.4 | |
| General and administrative | 101.5 | 85.4 | |
| Restructuring charges | 6.9 | 1.5 | |
| Amortization of purchased intangible assets | 12.1 | 13.7 | |
| Total operating expense | 392.7 | 352.4 | |
| Operating income | 156.9 | 140.9 | |
| Non-operating expense, net: | |||
| Interest expense, net | (16.0) | (16.9) | |
| Income from equity method investments, net | 9.7 | 11.8 | |
| Other income (expense), net | (12.1) | 1.6 | |
| Total non-operating expense, net | (18.4) | (3.5) | |
| Income before taxes | 138.5 | 137.4 | |
| Income tax provision | 28.2 | 22.8 | |
| Net income | 110.3 | 114.6 | |
| Net gain attributable to noncontrolling interests | — | 0.1 | |
| Net income attributable to Trimble Inc. | $ 110.3 | $ 114.5 | |
| Earnings per share attributable to Trimble Inc.: | |||
| Basic | $ 0.44 | $ 0.46 | |
| Diluted | $ 0.44 | $ 0.45 | |
| Shares used in calculating earnings per share: | |||
| Basic | 250.8 | 251.1 | |
| Diluted | 252.8 | 254.3 |
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||
| (In millions) | |||
| (Unaudited) | |||
| First Quarter of | Year End | ||
| As of | 2022 | 2021 | |
| Assets | |||
| Current assets: | |||
| Cash and cash equivalents | $ 357.2 | $ 325.7 | |
| Accounts receivable, net | 655.7 | 624.8 | |
| Inventories | 401.0 | 363.3 | |
| Other current assets | 151.6 | 136.8 | |
| Total current assets | 1,565.5 | 1,450.6 | |
| Property and equipment, net | 235.0 | 233.2 | |
| Operating lease right-of-use assets | 146.9 | 141.0 | |
| Goodwill | 3,971.0 | 3,981.5 | |
| Other purchased intangible assets, net | 468.7 | 506.6 | |
| Deferred income tax assets | 494.9 | 502.0 | |
| Other non-current assets | 295.4 | 284.7 | |
| Total assets | $ 7,177.4 | $ 7,099.6 | |
| Liabilities and Stockholders’ Equity | |||
| Current liabilities: | |||
| Accounts payable | $ 213.3 | $ 207.3 | |
| Accrued compensation and benefits | 144.6 | 231.0 | |
| Deferred revenue | 622.7 | 548.8 | |
| Other current liabilities | 266.4 | 201.5 | |
| Total current liabilities | 1,247.0 | 1,188.6 | |
| Long-term debt | 1,293.7 | 1,293.2 | |
| Deferred revenue, non-current | 81.2 | 83.0 | |
| Deferred income tax liabilities | 237.6 | 263.1 | |
| Income taxes payable | 54.5 | 54.5 | |
| Operating lease liabilities | 127.8 | 121.4 | |
| Other non-current liabilities | 147.7 | 151.1 | |
| Total liabilities | 3,189.5 | 3,154.9 | |
| Stockholders’ equity: | |||
| Common stock | 0.3 | 0.3 | |
| Additional paid-in-capital | 1,981.2 | 1,935.6 | |
| Retained earnings | 2,170.3 | 2,170.5 | |
| Accumulated other comprehensive loss | (163.9) | (161.7) | |
| Total stockholders’ equity | 3,987.9 | 3,944.7 | |
| Total liabilities and stockholders’ equity | $ 7,177.4 | $ 7,099.6 |
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
| (In millions) | |||
| (Unaudited) | |||
| First Quarter of | |||
| 2022 | 2021 | ||
| Cash flow from operating activities: | |||
| Net income | $ 110.3 | $ 114.6 | |
| Adjustments to reconcile net income to net cash provided by operating activities: | |||
| Depreciation expense | 10.0 | 10.3 | |
| Amortization expense | 34.6 | 35.8 | |
| Deferred income taxes | (16.8) | 0.4 | |
| Stock-based compensation | 28.3 | 27.2 | |
| Other, net | 16.7 | (3.8) | |
| (Increase) decrease in assets: | |||
| Accounts receivable, net | (34.6) | 40.0 | |
| Inventories | (42.7) | (0.9) | |
| Other current and non-current assets | (14.6) | 2.8 | |
| Increase (decrease) in liabilities: | |||
| Accounts payable | 7.8 | 14.5 | |
| Accrued compensation and benefits | (75.6) | (25.0) | |
| Deferred revenue | 73.3 | 9.2 | |
| Other current and non-current liabilities | 56.3 | 3.1 | |
| Net cash provided by operating activities | 153.0 | 228.2 | |
| Cash flow from investing activities: | |||
| Purchases of property and equipment | (14.5) | (10.6) | |
| Other, net | 1.1 | 1.4 | |
| Net cash used in investing activities | (13.4) | (9.2) | |
| Cash flow from financing activities: | |||
| Issuance of common stock, net of tax withholdings | (2.4) | 8.0 | |
| Repurchases of common stock | (104.7) | (40.0) | |
| Proceeds from debt and revolving credit lines | 118.8 | 180.8 | |
| Payments on debt and revolving credit lines | (118.8) | (335.7) | |
| Other, net | (2.6) | — | |
| Net cash used in financing activities | (109.7) | (186.9) | |
| Effect of exchange rate changes on cash and cash equivalents | 1.6 | (5.2) | |
| Net increase in cash and cash equivalents | 31.5 | 26.9 | |
| Cash and cash equivalents – beginning of period | 325.7 | 237.7 | |
| Cash and cash equivalents – end of period | $ 357.2 | $ 264.6 |
| REPORTING SEGMENTS | ||||||||
| GAAP TO NON-GAAP RECONCILIATION | ||||||||
| (In millions) | ||||||||
| (Unaudited) | ||||||||
| Reporting Segments | ||||||||
| Buildings and Infrastructure | Geospatial | Resources and Utilities | Transportation | |||||
| FIRST QUARTER OF 2022: | ||||||||
| Segment revenue | $ 397.6 | $ 207.5 | $ 229.9 | $ 158.7 | ||||
| Segment operating income | $ 120.7 | $ 57.9 | $ 75.1 | $ 9.2 | ||||
| Segment operating income as a percent of segment revenue | 30.4 % | 27.9 % | 32.7 % | 5.8 % | ||||
| FIRST QUARTER OF 2021: | ||||||||
| Segment revenue | $ 343.1 | $ 181.7 | $ 205.2 | $ 156.7 | ||||
| Segment operating income | $ 96.4 | $ 48.7 | $ 80.1 | $ 8.4 | ||||
| Segment operating income as a percent of segment revenue | 28.1 % | 26.8 % | 39.0 % | 5.4 % |