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Trimble Inc.
935 Stewart Drive
Post Office Box 3642
Sunnyvale, CA 94085
1.408.481.8000 phone
1.408.481.7781 fax

  NEWS RELEASE

 

Trimble Announces Record Third Quarter 2021 Results

- Record third quarter total revenue of $901 million, up 14 percent
- Annualized recurring revenue of $1.36 billion, up 8 percent and 11 percent on an organic basis
- Raises full-year guidance

SUNNYVALE, Calif., Nov. 3, 2021 /PRNewswire/ -- Trimble Inc. (NASDAQ: TRMB) today announced financial results for the third quarter of 2021.

Third Quarter 2021 Financial Highlights

  • GAAP revenue of $901.4 million, up 14 percent year over year, and non-GAAP revenue of $901.4 million, up 14 percent year over year
  • Annualized recurring revenue (ARR) was $1.36 billion, up 8 percent year over year
  • GAAP operating income was $147.5 million and non-GAAP operating income was $214.7 million
  • GAAP net income was $124.0 million and non-GAAP net income was $168.6 million
  • Diluted earnings per share was $0.49 on a GAAP basis and $0.66 on a non-GAAP basis
  • Adjusted EBITDA of $233.4 million, 25.9 percent of revenue
  • Operating cash flow on a trailing twelve months basis was $783.5 million, up 29 percent year over year
  • Share repurchases of $100 million

Executive Quote

"Trimble technology is transforming industries that support how we live, what we eat, how we move," said Rob Painter, Trimble's president and chief executive officer. "Growth in total revenue, annualized recurring revenue, and adjusted EBITDA in the third quarter demonstrate the value of our ongoing commitment to innovation for our end markets as they continue to digitize."

Forward Looking Guidance

For the full-year 2021, Trimble now expects to report GAAP revenue between $3,590 million and $3,640 million and GAAP earnings per share of $1.69 to $1.77, and non-GAAP revenue between $3,590 million and $3,640 million and non-GAAP earnings per share of $2.61 to $2.69. GAAP guidance assumes a tax rate of 17.0 to 18.0 percent and non-GAAP guidance assumes a tax rate of 17.5  to 18.0 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 November 3, 2021 at 2:00 p.m. PT to review its third quarter 2021 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 5058328. 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, or effectively integrate new acquisitions. 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, resulting in increases in costs and reduced revenue, adverse geopolitical developments, 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)



Third Quarter of


First Three Quarters of


2021


2020


2021


2020

Revenue:








Product

$

551.2



$

461.4



$

1,685.5



$

1,337.6


Service

159.9



160.7



484.3



479.7


Subscription

190.3



170.0



563.3



500.7


Total revenue

901.4



792.1



2,733.1



2,318.0


Cost of sales:








Product

266.7



221.2



808.4



630.7


Service

55.5



55.5



173.1



175.1


Subscription

52.7



52.4



162.3



155.8


Amortization of purchased intangible assets

22.0



23.3



66.1



70.0


Total cost of sales

396.9



352.4



1,209.9



1,031.6


Gross margin

504.5



439.7



1,523.2



1,286.4


Gross margin (%)

56.0

%


55.5

%


55.7

%


55.5

%

Operating expense:








Research and development

132.5



117.9



400.2



350.1


Sales and marketing

125.5



111.6



373.1



346.9


General and administrative

85.2



79.4



270.2



221.2


Restructuring charges

1.5



12.1



7.5



20.1


Amortization of purchased intangible assets

12.3



16.7



39.0



50.2


Total operating expense

357.0



337.7



1,090.0



988.5


Operating income

147.5



102.0



433.2



297.9


Non-operating income (expense), net:








Interest expense, net

(15.9)



(19.6)



(49.4)



(59.7)


Income from equity method investments, net

8.5



10.8



30.3



29.9


Other income (expense), net

16.6



3.2



42.4



(1.4)


Total non-operating income (expense), net

9.2



(5.6)



23.3



(31.2)


Income before taxes

156.7



96.4



456.5



266.7


Income tax provision

32.7



11.6



79.0



56.8


Net income

124.0



84.8



377.5



209.9


Net gain attributable to noncontrolling interests

?



0.1



0.1



0.3


Net income attributable to Trimble Inc.

$

124.0



$

84.7



$

377.4



$

209.6


Earnings per share attributable to Trimble Inc.:








Basic

$

0.49



$

0.34



$

1.50



$

0.84


Diluted

$

0.49



$

0.34



$

1.48



$

0.83


Shares used in calculating earnings per share:








Basic

251.8



250.7



251.5



250.4


Diluted

254.5



252.8



254.3



251.9


 

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

(Unaudited)



Third Quarter of


Year End

As of

2021


2020

Assets




Current assets:




Cash and cash equivalents

$

513.2



$

237.7


Accounts receivable, net

580.5



620.5


Inventories

323.4



301.7


Other current assets

143.4



121.5


Total current assets

1,560.5



1,281.4


Property and equipment, net

228.5



251.8


Operating lease right-of-use assets

147.1



128.9


Goodwill

3,823.6



3,876.5


Other purchased intangible assets, net

473.5



580.1


Deferred income tax assets

496.0



510.2


Other non-current assets

274.2



248.0


Total assets

$

7,003.4



$

6,876.9


Liabilities and Stockholders' Equity




Current liabilities:




Short-term debt

$

29.1



$

255.8


Accounts payable

193.4



143.2


Accrued compensation and benefits

199.5



166.8


Deferred revenue

511.7



560.5


Other current liabilities

207.5



185.0


Total current liabilities

1,141.2



1,311.3


Long-term debt

1,292.8



1,291.4


Deferred revenue, non-current

77.3



53.3


Deferred income tax liabilities

277.6



300.3


Income taxes payable

54.5



62.2


Operating lease liabilities

128.5



109.2


Other non-current liabilities

149.7



150.6


Total liabilities

3,121.6



3,278.3


Stockholders' equity:




Common stock

0.3



0.3


Additional paid-in-capital

1,914.4



1,801.7


Retained earnings

2,107.7



1,893.4


Accumulated other comprehensive loss

(140.6)



(98.5)


Total Trimble Inc. stockholders' equity

3,881.8



3,596.9


Noncontrolling interests

?



1.7


Total stockholders' equity

3,881.8



3,598.6


Total liabilities and stockholders' equity

$

7,003.4



$

6,876.9


 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)



First Three Quarters of


2021


2020

Cash flow from operating activities:




Net income

$

377.5



$

209.9


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




Depreciation expense

30.9



29.4


Amortization expense

105.1



120.2


Deferred income taxes

(8.9)



12.1


Stock-based compensation

95.1



57.1


Divestitures (gain) loss, net

(43.6)



2.5


Other, net

5.7



26.2


(Increase) decrease in assets:




Accounts receivable, net

33.7



108.4


Inventories

(28.4)



(19.1)


Other current and non-current assets

(42.5)



12.3


Increase (decrease) in liabilities:




Accounts payable

50.8



(26.7)


Accrued compensation and benefits

25.1



26.1


Deferred revenue

(8.4)



(42.0)


Other current and non-current liabilities

3.1



(32.7)


Net cash provided by operating activities

595.2



483.7


Cash flow from investing activities:




Acquisitions of businesses, net of cash acquired

(1.2)



(198.9)


Purchases of property and equipment

(31.4)



(45.1)


Net proceeds from sale of businesses

67.3



?


Net proceeds from sale of property and equipment

20.7



0.4


Other, net

(4.4)



(0.5)


Net cash provided by (used in) investing activities

51.0



(244.1)


Cash flow from financing activities:




Issuance of common stock, net of tax withholdings

1.1



25.3


Repurchases of common stock

(140.0)



(78.0)


Proceeds from debt and revolving credit lines

198.9



1,030.1


Payments on debt and revolving credit lines

(421.7)



(1,209.6)


Other, net

(1.5)



(10.9)


Net cash used in financing activities

(363.2)



(243.1)


Effect of exchange rate changes on cash and cash equivalents

(7.5)



(1.7)


Net increase (decrease) in cash and cash equivalents

275.5



(5.2)


Cash and cash equivalents - beginning of period

237.7



189.2


Cash and cash equivalents - end of period

$

513.2



$

184.0


 

REPORTING SEGMENTS

GAAP TO NON-GAAP RECONCILIATION

(In millions)

(Unaudited)




Reporting Segments



Buildings and
Infrastructure


Geospatial


Resources and
Utilities


Transportation

THIRD QUARTER OF 2021 :









Revenue


$

349.7



$

205.4



$

184.8



$

161.5


Acquired deferred revenue adjustment

(A)

?



?



?



?


Non-GAAP revenue


$

349.7



$

205.4



$

184.8



$

161.5











Operating income before corporate allocations


$

101.6



$

64.9



$

60.6



$

15.4


Acquired deferred revenue adjustment

(A)

?



?



?



?


Amortization of acquired capitalized commissions

(B)

(1.0)



?



?



(0.1)


Non-GAAP operating income before allocations


$

100.6



$

64.9



$

60.6



$

15.3











Operating margin (% of segment external net revenue)


29.1

%


31.6

%


32.8

%


9.5

%

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


28.8

%


31.6

%


32.8

%


9.5

%










THIRD QUARTER OF 2020 :









Revenue


$

317.4



$

165.6



$

150.2



$

158.9


Acquired deferred revenue adjustment

(A)

?



?



0.4



0.3


Non-GAAP revenue


$

317.4



$

165.6



$

150.6



$

159.2











Operating income before corporate allocations


$

97.2



$

51.4



$

53.9



$

8.3


Acquired deferred revenue adjustment

(A)

?



?



0.4



0.3


Amortization of acquired capitalized commissions

(B)

(1.3)



?



?



?


Non-GAAP operating income before allocations


$

95.9



$

51.4



$

54.3



$

8.6











Operating margin (% of segment external net revenue)


30.6

%


31.0

%


35.9

%


5.2

%

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


30.2

%


31.0

%


36.1

%


5.4

%

 






Buildings and
Infrastructure


Geospatial


Resources and
Utilities


Transportation

FIRST THREE QUARTERS OF 2021 :









Revenue


1,057.4



606.8



587.5



481.4


Acquired deferred revenue adjustment

(A)

0.2



?



?



0.1


Non-GAAP revenue


$

1,057.6



$

606.8



$

587.5



$

481.5











Operating income before corporate allocations


$

304.1



$

179.7



$

211.2



$

36.6


Acquired deferred revenue adjustment

(A)

0.2



?



?



0.1


Amortization of acquired capitalized commissions

(B)

(3.2)



?



?



(0.2)


Non-GAAP operating income before allocations


$

301.1



$

179.7



$

211.2



$

36.5











Operating margin (% of segment external net revenue)


28.8

%


29.6

%


35.9

%


7.6

%

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


28.5

%


29.6

%


35.9

%


7.6

%










FIRST THREE QUARTERS OF 2020:









Revenue


$

909.4



$

457.0



$

472.1



$

479.5


Acquired deferred revenue adjustment

(A)

0.2



?



2.6



1.2


Non-GAAP revenue


$

909.6



$

457.0



$

474.7



$

480.7











Operating income before corporate allocations


$

245.9



$

119.3



$

167.8



$

38.8


Acquired deferred revenue adjustment

(A)

0.2



?



2.6



1.2


Amortization of acquired capitalized commissions

(B)

(4.0)



?



(0.1)



(0.1)


Non-GAAP operating income before allocations


$

242.1



$

119.3



$

170.3



$

39.9











Operating margin (% of segment external net revenue)


27.0

%


26.1

%


35.5

%


8.1

%

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


26.6

%


26.1

%


35.9

%


8.3

%

 

GAAP TO NON-GAAP RECONCILIATION

(Dollars in millions, except per share data)

(Unaudited)







Third Quarter of


First Three Quarters of






2021


2020


2021


2020






Dollar
Amount

% of
Revenue


Dollar
Amount

% of Revenue


Dollar
Amount

% of Revenue


Dollar
Amount

% of Revenue

REVENUE:















GAAP revenue:



$

901.4




$

792.1




$

2,733.1




$

2,318.0





Acquired deferred revenue adjustment

(A)


?




0.7




0.3




4.0




Non-GAAP revenue:



$

901.4




$

792.8




$

2,733.4




$

2,322.0



















GROSS MARGIN:















GAAP gross margin:



$

504.5


56.0

%


$

439.7


55.5

%


$

1,523.2


55.7

%


$

1,286.4


55.5

%



Acquired deferred revenue adjustment

(A)


?




0.7




0.3




4.0





Amortization of purchased intangible assets

(C)


22.0




23.3




66.1




70.0





Acquisition / divestiture items

(D)


?




?




?




1.7





Stock-based compensation / deferred compensation

(E)


2.7




2.5




7.3




5.2





Restructuring and other costs

(F)


?




0.3




0.2




1.0




Non-GAAP gross margin:



$

529.2


58.7

%


$

466.5


58.8

%


$

1,597.1


58.4

%


$

1,368.3


58.9

%

















OPERATING EXPENSES:















GAAP operating expenses:



$

357.0


39.6

%


$

337.7


42.6

%


$

1,090.0


39.9

%


$

988.5


42.6

%



Amortization of acquired capitalized commissions

(B)


1.1




1.3




3.4




4.2





Amortization of purchased intangible assets

(C)


(12.3)




(16.7)




(39.0)




(50.2)





Acquisition / divestiture items

(D)


(0.2)




(3.7)




(10.3)




(14.7)





Stock-based compensation / deferred compensation

(E)


(29.4)




(29.5)




(91.8)




(56.7)





Restructuring and other costs

(F)


(1.7)




(14.4)




(7.7)




(25.7)




Non-GAAP operating expenses:



$

314.5


34.9

%


$

274.7


34.6

%


$

944.6


34.6

%


$

845.4


36.4

%

















OPERATING INCOME:















GAAP operating income:



$

147.5


16.4

%


$

102.0


12.9

%


$

433.2


15.9

%


$

297.9


12.9

%



Acquired deferred revenue adjustment

(A)


?




0.7




0.3




4.0





Amortization of acquired capitalized commissions

(B)


(1.1)




(1.3)




(3.4)




(4.2)





Amortization of purchased intangible assets

(C)


34.3




40.0




105.1




120.2





Acquisition / divestiture items

(D)


0.2




3.7




10.3




16.4





Stock-based compensation / deferred compensation

(E)


32.1




32.0




99.1




61.9





Restructuring and other costs

(F)


1.7




14.7




7.9




26.7




Non-GAAP operating income:



$

214.7


23.8

%


$

191.8


24.2

%


$

652.5