Financial Release

<< Back
Feb 10, 2021

Trimble Announces Fourth Quarter and Full Year 2020 Results

-- Record annualized recurring revenue of $1.3 billion, up 9 percent
-- Record annual operating cash flow of $672.0 million

SUNNYVALE, Calif., Feb. 10, 2021 /PRNewswire/ -- Trimble Inc. (NASDAQ: TRMB) today announced fourth quarter and fiscal year 2020 financial results.

Fourth Quarter 2020 Financial Highlights

  • GAAP revenue of $829.7 million, up 1 percent year over year, and non-GAAP revenue of $830.0 million, flat year over year. Fourth quarter 2020 was a 13-week quarter and fourth quarter 2019 was a 14-week quarter.
  • Annualized recurring revenue (ARR) of $1.3 billion, up 9 percent year over year
  • GAAP operating income was $121.9 million and non-GAAP operating income was $196.7 million
  • GAAP net income was $180.3 million and non-GAAP net income was $155.6 million
  • Diluted earnings per share was $0.71 on a GAAP basis, and $0.61 on a non-GAAP basis
  • Adjusted EBITDA was $216.5 million, 26.1 percent of non-GAAP revenue

Executive Quote
"Our fourth quarter results exceeded expectations, enabling us to finish the year with solid financial performance," said Rob Painter, Trimble's president and chief executive officer. "We experienced growth in annualized recurring revenue, adjusted EBITDA and operating cash flow. While we enter 2021 expecting ongoing market ambiguities, we enter with confidence and resolve to execute our Connect and Scale 2025 strategy."

Fiscal 2020 Financial Highlights

  • GAAP revenue of $3,147.7 million, and non-GAAP revenue of $3,152.0 million, both down 4 percent year over year. Fiscal 2020 was a 52-week year and 2019 was a 53-week year.
  • GAAP operating income was $419.8 million and non-GAAP operating income was $719.6 million
  • GAAP net income was $389.9 million and non-GAAP net income was $562.4 million
  • Diluted earnings per share was $1.55 on a GAAP basis, and $2.23 on a non-GAAP basis
  • Adjusted EBITDA was $798.7 million, 25.3 percent of non-GAAP revenue
  • Operating cash flow was $672.0 million, up 15 percent year over year
  • During fiscal 2020, Trimble repurchased approximately 1.9 million shares for $81.6 million. Approximately $90.7 million remains under the current share repurchase authorization as of the end of the fourth quarter.

Forward Looking Guidance
For the full year 2021, Trimble expects to report GAAP revenue between $3,299.7 million and $3,399.7 million and GAAP earnings per share of $1.31 to $1.54, and non-GAAP revenue between $3,300.0 million and $3,400.0 million and non-GAAP earnings per share of $2.25 and $2.45. GAAP guidance assumes a tax rate of 21 to 22 percent and non-GAAP guidance assumes a tax rate of 16 to 17 percent. Both GAAP and non-GAAP earnings per share assume approximately 254 million shares outstanding. 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 scheduled attached.

Investor Conference Call / Webcast Details
Trimble will hold a conference call on February 10, 2021 at 2:00 p.m. PT to review its fourth quarter and full year 2020 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 7490439. The replay will also be available on the web at the address above.

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. 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, or effectively integrate new acquisitions. The Company's results would also be negatively impacted by further deterioration in economic conditions as a result of the COVID-19 pandemic, adverse geopolitical developments, further weakening in the macro environment, foreign exchange fluctuations, critical part supply chain shortages, 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)

 



Fourth Quarter of


Fiscal Years


2020


2019


2020


2019

Revenue:








Product

$

490.4



$

466.5



$

1,828.0



$

1,934.8


Service

165.1



184.4



644.8



686.2


Subscription

174.2



173.1



674.9



643.3


Total revenue

829.7



824.0



3,147.7



3,264.3


Cost of sales:








Product

224.3



220.9



855.0



939.4


Service

59.4



61.7



234.5



253.9


Subscription

55.2



58.6



211.0



196.0


Amortization of purchased intangible assets

22.3



22.8



92.3



94.1


Total cost of sales

361.2



364.0



1,392.8



1,483.4


Gross margin

468.5



460.0



1,754.9



1,780.9


Gross margin (%)

56.5

%


55.8

%


55.8

%


54.6

%

Operating expense:








Research and development

125.8



119.6



475.9



469.7


Sales and marketing

120.1



128.3



467.0



504.2


General and administrative

79.7



90.7



300.9



330.6


Restructuring charges

5.7



16.8



25.8



26.8


Amortization of purchased intangible assets

15.3



16.4



65.5



73.7


Total operating expense

346.6



371.8



1,335.1



1,405.0


Operating income

121.9



88.2



419.8



375.9


Non-operating income (expense), net:








Interest expense, net

(17.9)



(20.2)



(77.6)



(82.4)


Income from equity method investments, net

9.5



5.3



39.4



35.8


Other income, net

14.8



2.0



13.4



15.5


Total non-operating income (expense), net

6.4



(12.9)



(24.8)



(31.1)


Income before taxes

128.3



75.3



395.0



344.8


Income tax (benefit) provision

(52.4)



(204.1)



4.4



(169.7)


Net income

180.7



279.4



390.6



514.5


Net gain attributable to noncontrolling interests

0.4



0.1



0.7



0.2


Net income attributable to Trimble Inc.

$

180.3



$

279.3



$

389.9



$

514.3


Earnings per share attributable to Trimble Inc.:








Basic

$

0.72



$

1.12



$

1.56



$

2.05


Diluted

$

0.71



$

1.11



$

1.55



$

2.03


Shares used in calculating earnings per share:








Basic

250.8



249.5



250.5



250.8


Diluted

253.5



251.6



252.3



252.9










 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

(Unaudited)

 


At the End of Fiscal Year

2020


2019

Assets




Current assets:




Cash and cash equivalents

$

237.7



$

189.2


Accounts receivable, net

620.5



608.2


Inventories

301.7



312.1


Other current assets

121.5



102.3


Total current assets

1,281.4



1,211.8


Property and equipment, net

251.8



241.4


Operating lease right-of-use assets

128.9



140.3


Goodwill

3,876.5



3,680.6


Other purchased intangible assets, net

580.1



678.7


Deferred income tax assets

510.2



475.5


Other non-current assets

248.0



212.4


Total assets

$

6,876.9



$

6,640.7


Liabilities and Stockholders' Equity




Current liabilities:




Short-term debt

$

255.8



$

219.0


Accounts payable

143.2



159.3


Accrued compensation and benefits

166.8



123.5


Deferred revenue

560.5



490.4


Other current liabilities

185.0



198.1


Total current liabilities

1,311.3



1,190.3


Long-term debt

1,291.4



1,624.2


Deferred revenue, non-current

53.3



51.5


Deferred income tax liabilities

300.3



318.2


Income taxes payable

62.2



69.1


Operating lease liabilities

109.2



114.1


Other non-current liabilities

150.6



152.9


Total liabilities

3,278.3



3,520.3


Stockholders' equity:




Common stock

0.3



0.2


Additional paid-in-capital

1,801.7



1,692.8


Retained earnings

1,893.4



1,602.8


Accumulated other comprehensive loss

(98.5)



(176.8)


Total Trimble Inc. stockholders' equity

3,596.9



3,119.0


Noncontrolling interests

1.7



1.4


Total stockholders' equity

3,598.6



3,120.4


Total liabilities and stockholders' equity

$

6,876.9



$

6,640.7


 

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

 



Fiscal Years


2020


2019

Cash flow from operating activities:




Net income

$

390.6



$

514.5


Adjustments to reconcile net income to net cash provided by operating activities:




Depreciation expense

39.7



39.4


Amortization expense

157.8



167.8


Provision for credit losses

7.1



6.5


Deferred income taxes

(52.9)



(220.2)


Non-cash restructuring expense

11.4



2.1


Stock-based compensation

83.0



75.0


Income from equity method investments, net of dividends

(21.0)



(7.8)


Provision for excess and obsolete inventories

16.2



7.3


Other, net

16.5



(10.4)


(Increase) decrease in assets:




Accounts receivable, net

(14.0)



(96.0)


Inventories

(5.0)



(21.3)


Other current and non-current assets

2.5



11.0


Increase (decrease) in liabilities:




Accounts payable

(15.7)



14.5


Accrued compensation and benefits

34.9



(46.4)


Deferred revenue

65.7



148.2


Other current and non-current liabilities

(44.8)



0.8


Net cash provided by operating activities

672.0



585.0


Cash flow from investing activities:




Acquisitions of businesses, net of cash acquired

(201.9)



(220.8)


Purchases of property and equipment

(56.8)



(69.0)


Other, net

26.9



14.5


Net cash used in investing activities

(231.8)



(275.3)


Cash flow from financing activities:




Issuance of common stock, net of tax withholdings

10.0



29.1


Repurchases of common stock

(81.6)



(179.8)


Proceeds from debt and revolving credit lines

1,173.8



1,195.4


Payments on debt and revolving credit lines

(1,486.0)



(1,322.9)


Other, net

(16.5)



(14.4)


Net cash used in financing activities

(400.3)



(292.6)


Effect of exchange rate changes on cash and cash equivalents

8.6



(0.4)


Net increase in cash and cash equivalents

48.5



16.7


Cash and cash equivalents - beginning of period

189.2



172.5


Cash and cash equivalents - end of period

$

237.7



$

189.2


 

 

 

REPORTING SEGMENTS

GAAP TO NON-GAAP RECONCILIATION

(In millions)

(Unaudited)

 




Reporting Segments



Buildings and Infrastructure


Geospatial


Resources and Utilities


Transportation

FOURTH QUARTER OF FISCAL 2020 :









Revenue


$

321.3



$

193.5



$

155.2



$

159.7


Acquired deferred revenue adjustment

(A)

0.1





0.1



0.1


Non-GAAP revenue


$

321.4



$

193.5



$

155.3



$

159.8











Operating income before corporate allocations


$

97.1



$

65.1



$

50.6



$

10.2


Acquired deferred revenue adjustment

(A)

0.1





0.1



0.1


Amortization of acquired capitalized commissions

(B)

(1.2)







(0.1)


Non-GAAP operating income before allocations


$

96.0



$

65.1



$

50.7



$

10.2











Operating margin (% of segment external net revenue)


30.2

%


33.6

%


32.6

%


6.4

%

Non-GAAP Operating margin (% of segment Non-
GAAP external net revenue)


29.9

%


33.6

%


32.6

%


6.4

%










FOURTH QUARTER OF FISCAL 2019 :









Revenue


$

313.6



$

168.7



$

135.6



$

206.1


Acquired deferred revenue adjustment

(A)

0.2





2.5




Non-GAAP revenue


$

313.8



$

168.7



$

138.1



$

206.1











Operating income before corporate allocations


$

92.4



$

41.1



$

35.5



$

30.6


Acquired deferred revenue adjustment

(A)

0.2





2.5




Amortization of acquired capitalized commissions

(B)

(1.5)








Non-GAAP operating income before allocations


$

91.1



$

41.1



$

38.0



$

30.6











Operating margin (% of segment external net revenue)


29.5

%


24.4

%


26.2

%


14.8

%

Non-GAAP Operating margin (% of segment Non-
GAAP external net revenue)


29.0

%


24.4

%


27.5

%


14.8

%

 



Reporting Segments



Buildings and Infrastructure


Geospatial


Resources and Utilities


Transportation

FISCAL YEAR 2020 :









Revenue


$

1,230.7



$

650.5



$

627.3



$

639.2


Acquired deferred revenue adjustment

(A)

0.3





2.7



1.3


Non-GAAP revenue


$

1,231.0



$

650.5



$

630.0



$

640.5











Operating income before corporate allocations


$

343.0



$

184.4



$

218.4



$

49.0


Acquired deferred revenue adjustment

(A)

0.3





2.7



1.3


Amortization of acquired capitalized commissions

(B)

(5.2)





(0.1)



(0.2)


Non-GAAP operating income before allocations


$

338.1



$

184.4



$

221.0



$

50.1











Operating margin (% of segment external net revenue)


27.9

%


28.3

%


34.8

%


7.7

%

Non-GAAP Operating margin (% of segment Non-
GAAP external net revenue)


27.5

%


28.3

%


35.1

%


7.8

%










FISCAL YEAR 2019 :









Revenue


$

1,254.2



$

649.4



$

568.4



$

792.3


Acquired deferred revenue adjustment

(A)

4.0





3.0




Non-GAAP revenue


$

1,258.2



$

649.4



$

571.4



$

792.3











Operating income before corporate allocations


$

322.1



$

132.2



$

166.2



$

125.9


Acquired deferred revenue adjustment

(A)

4.0





3.0




Amortization of acquired capitalized commissions

(B)

(6.2)





(0.1)




Non-GAAP operating income before allocations


$

319.9



$

132.2



$

169.1



$

125.9











Operating margin (% of segment external net revenue)


25.7

%


20.4

%


29.2

%


15.9

%

Non-GAAP Operating margin (% of segment Non-
GAAP external net revenue)


25.4

%


20.4

%


29.6

%


15.9

%

 



 

 

GAAP TO NON-GAAP RECONCILIATION

(Dollars in millions, except per share data)

(Unaudited)

 











Fourth Quarter of


Fiscal Years






2020


2019


2020


2019






Dollar
Amount

% of
Revenue


Dollar
Amount

% of
Revenue


Dollar
Amount

% of
Revenue


Dollar
Amount

% of
Revenue

REVENUE:















GAAP revenue:



$

829.7




$

824.0




$

3,147.7




$

3,264.3





Acquired deferred revenue
adjustment

(A)


0.3




2.7




4.3




7.0




Non-GAAP revenue:



$

830.0




$

826.7




$

3,152.0




$

3,271.3



















GROSS MARGIN:















GAAP gross margin:



$

468.5


56.5

%


$

460.0


55.8

%


$

1,754.9


55.8

%


$

1,780.9


54.6

%



Acquired deferred revenue
adjustment

(A)


0.3




2.7




4.3




7.0





Amortization of purchased
intangible assets

(C)


22.3




22.8




92.3




94.1





Acquisition / divestiture items

(D)








1.7








Stock-based compensation /
deferred compensation

(E)


2.0




1.5




7.2




5.9





Restructuring charges

(F)


0.1




0.9




0.8




1.1





COVID-19 expenses

(G)


0.1







0.4







Non-GAAP gross margin:



$

493.3


59.4

%


$

487.9


59.0

%


$

1,861.6


59.1

%


$

1,889.0


57.7

%

















OPERATING EXPENSES:















GAAP operating expenses:



$

346.6


41.8

%


$

371.8


45.1

%


$

1,335.1


42.4

%


$

1,405.0


43.0

%



Amortization of acquired
capitalized commissions

(B)


1.3




1.5




5.5




6.3





Amortization of purchased
intangible assets

(C)


(15.3)




(16.4)




(65.5)




(73.7)





Acquisition / divestiture items

(D)


(5.0)




(9.0)




(19.7)




(20.5)





Stock-based compensation /
deferred compensation

(E)


(26.5)




(23.8)




(83.2)




(75.3)





Restructuring charges /
executive transition costs

(F)


(6.2)




(16.8)




(27.4)




(26.8)





COVID-19 expenses

(G)


1.7







(2.8)







Non-GAAP operating expenses:



$

296.6


35.7

%


$

307.3


37.2

%


$

1,142.0


36.2

%


$

1,215.0


37.1

%

















OPERATING INCOME:















GAAP operating income:



$

121.9


14.7

%


$

88.2


10.7

%


$

419.8


13.3

%


$

375.9


11.5

%



Acquired deferred revenue
adjustment

(A)


0.3




2.7




4.3




7.0





Amortization of acquired
capitalized commissions

(B)


(1.3)




(1.5)




(5.5)




(6.3)





Amortization of purchased
intangible assets

(C)


37.6




39.2




157.8




167.8





Acquisition / divestiture items

(D)


5.0




9.0




21.4




20.5





Stock-based compensation /
deferred compensation

(E)


28.5




25.3




90.4




81.2





Restructuring charges / executive
transition costs

(F)


6.3




17.7




28.2




27.9





COVID-19 expenses

(G)


(1.6)







3.2







Non-GAAP operating income:



$

196.7


23.7

%


$

180.6


21.8

%


$

719.6


22.8

%


$

674.0


20.6

%

















NON-OPERATING INCOME (EXPENSE), NET:












GAAP non-operating income
(expense), net:



$

6.4




$

(12.9)




$

(24.8)




$

(31.1)





Acquisition / divestiture items

(D)


(14.7)




0.4




(12.2)




(12.1)





Deferred compensation

(E)


(2.7)




(2.5)




(7.5)




(6.3)




Non-GAAP non-operating expense,
net:



$

(11.0)




$

(15.0)




$

(44.5)




$

(49.5)

























GAAP and
Non-GAAP
Tax Rate %



GAAP and
Non-GAAP
Tax Rate %



GAAP and
Non-GAAP
Tax Rate %



GAAP and
Non-GAAP
Tax Rate %







(K)



(K)



(K)



(K)

INCOME TAX (BENEFIT) PROVISION:












GAAP income tax (benefit) provision:



$

(52.4)


(40.8)

%


$

(204.1)


(271.0)

%


$

4.4


1.1

%


$

(169.7)


(49.2)

%



Non-GAAP items tax effected

(H)


2.3




8.2




48.5




29.6





Difference in GAAP and Non-
GAAP tax rate

(I)


15.8




21.1




(4.9)




55.6





IP restructuring and tax law
change impacts

(J)


64.0




206.3




64.0




206.3




Non-GAAP income tax provision:



$

29.7


16.0

%


$

31.5


19.0

%


$

112.0


16.6

%


$

121.8


19.5

%

















NET INCOME:















GAAP net income attributable to
Trimble Inc.:



$

180.3




$

279.3




$

389.9




$

514.3





Acquired deferred revenue
adjustment

(A)


0.3




2.7




4.3




7.0





Amortization of acquired
capitalized commissions

(B)


(1.3)




(1.5)




(5.5)




(6.3)





Amortization of purchased
intangible assets

(C)


37.6




39.2




157.8




167.8





Acquisition / divestiture items

(D)


(9.7)




9.4




9.2




8.4





Stock-based compensation /
deferred compensation

(E)


25.8




22.8




82.9




74.9





Restructuring charges / executive
transition costs

(F)


6.3




17.7




28.2




27.9





COVID-19 expenses

(G)


(1.6)







3.2








Non-GAAP tax adjustments

(H) - (J)


(82.1)




(235.6)




(107.6)




(291.5)




Non-GAAP net income attributable
to Trimble Inc.:



$

155.6




$

134.0




$

562.4




$

502.5



















DILUTED NET INCOME PER SHARE:












GAAP diluted net income per share
attributable to Trimble Inc.:



$

0.71




$

1.11




$

1.55




$

2.03





Acquired deferred revenue
adjustment

(A)





0.01




0.02




0.03





Amortization of acquired
capitalized commissions

(B)





(0.01)




(0.02)




(0.02)





Amortization of purchased
intangible assets

(C)


0.15




0.16




0.62




0.66





Acquisition / divestiture items

(D)


(0.04)




0.04




0.04




0.03





Stock-based compensation /
deferred compensation

(E)


0.10




0.09




0.33




0.30





Restructuring charges / executive
transition costs

(F)


0.02




0.07




0.11




0.11





COVID-19 expenses

(G)


(0.01)







0.01








Non-GAAP tax adjustments

(H) - (J)


(0.32)




(0.94)




(0.43)




(1.15)




Non-GAAP diluted net income per
share attributable to Trimble Inc.:



$

0.61




$

0.53




$

2.23




$

1.99



















ADJUSTED EBITDA:












GAAP net income attributable to
Trimble Inc.:



$

180.3




$

279.3




$

389.9




$

514.3





Non-operating income (expense),
net, income tax provision
(benefit), and net gain
attributable to noncontrolling
interests



(58.4)




(191.1)




29.9




(138.4)




GAAP operating income:



121.9




88.2




419.8




375.9





Acquired deferred revenue
adjustment

(A)


0.3




2.7




4.3




7.0





Amortization of acquired
capitalized commissions

(B)


(1.3)




(1.5)




(5.5)




(6.3)





Amortization of purchased
intangible assets

(C)


37.6




39.2




157.8




167.8





Acquisition / divestiture items

(D)


5.0




9.0




21.4




20.5





Stock-based compensation /
deferred compensation

(E)


28.5




25.3




90.4




81.2





Restructuring charges / executive
transition costs

(F)


6.3




17.7




28.2




27.9





COVID-19 expenses

(G)


(1.6)







3.2







Non-GAAP operating income:



196.7




180.6




719.6




674.0





Depreciation expense



10.3




9.7




39.7




39.4





Income from equity method
investments, net



9.5




5.3




39.4




35.8




Adjusted EBITDA:



$

216.5




$

195.6




$

798.7




$

749.2
























Fiscal Year 2021














Low End

High End










FORECASTED DILUTED NET INCOME PER SHARE:











Forecasted GAAP diluted net
income per share attributable to
Trimble Inc.:



$

1.31


$

1.54













Acquired deferred revenue
adjustment

(A)















Amortization of acquired
capitalized commissions

(B)


(0.02)


(0.02)













Amortization of purchased
intangible assets

(C)


0.55


0.55













Acquisition / divestiture items

(D)


0.06


0.06













Stock-based compensation /
deferred compensation

(E)


0.36


0.36













Restructuring charges / executive
transition costs

(F)


0.05


0.05













Non-GAAP tax adjustments

(H) - (J)


(0.06)


(0.09)












Forecasted non-GAAP diluted net income per
share attributable to Trimble Inc.:


$

2.25