- Earnings per share in line with guidance
SUNNYVALE, Calif., Oct. 30, 2019 — (PRNewswire) — Trimble Inc. (NASDAQ: TRMB) today announced financial results for the third quarter of 2019.
Third Quarter 2019 Financial Summary
Third quarter 2019 GAAP revenue of $783.9 million was down 1 percent as compared to the third quarter of 2018. Third quarter 2019 non-GAAP revenue of $784.3 million was down 3 percent as compared to the third quarter of 2018.
Buildings and Infrastructure revenue was $309.8 million, up 5 percent. Geospatial revenue was $155.1 million, down 16 percent. Resources and Utilities revenue was $121.1 million, down 9 percent. Transportation revenue was $198.3 million, up 4 percent. Segment revenues reflect the results of Trimble's reportable segments under its management reporting system and are non-GAAP measures.
GAAP operating income was $91.7 million, up 18 percent as compared to the third quarter of 2018. GAAP operating margin was 11.7 percent of revenue as compared to 9.7 percent of revenue in the third quarter of 2018.
GAAP net income was $78.1 million, up 6 percent as compared to the third quarter of 2018. GAAP diluted earnings per share were $0.31 as compared to GAAP diluted earnings per share of $0.29 in the third quarter of 2018.
Non-GAAP operating income of $162.0 million was down 3 percent as compared to the third quarter of 2018. Non-GAAP operating margin was 20.7 percent of revenue as compared to 20.8 percent of revenue in the third quarter of 2018.
Non-GAAP net income of $121.1 million was down 3 percent as compared to the third quarter of 2018. Non-GAAP diluted earnings per share were $0.48 as compared to non-GAAP diluted earnings per share of $0.49 in the third quarter of 2018.
The GAAP tax rate for the quarter was an expense of 1 percent as compared to a benefit of 15 percent in the third quarter of 2018, and the non-GAAP tax rate was both 19 percent in the third quarter of 2019 and 2018.
Operating cash flow for the first three quarters of 2019 was $462.8 million, up 20 percent as compared to the first three quarters of 2018. Deferred revenue for the third quarter of 2019 was $419.0 million, up 15 percent as compared to the third quarter of 2018.
During the third quarter, Trimble repurchased approximately 3.3 million shares of its common stock for $121 million, and year to date has repurchased approximately 4.7 million shares for $180 million. Approximately $172 million remains under the current share repurchase authorization as of the end of the third quarter.
"Our third quarter revenue reflected prevailing market uncertainties, while earnings per share and cash flow exceeded expectations," said Steven W. Berglund, Trimble's president and chief executive officer. "Although we anticipate market ambiguities to persist for the remainder of the year, we demonstrated the ability to control costs while continuing the transformation of our business model towards recurring revenue."
Forward Looking Guidance
For the fourth quarter of 2019, Trimble expects to report GAAP revenue between $768 million and $798 million and GAAP earnings per share of $0.20 to $0.24, and non-GAAP revenue between $770 million and $800 million and non-GAAP earnings per share of $0.46 to $0.50. GAAP guidance assumes a tax rate of 19 percent and non-GAAP guidance assumes a tax rate of 19 percent. Both GAAP and non-GAAP earnings per share assume approximately 252 million shares outstanding. For the fiscal year of 2019, Trimble expects to report GAAP revenue between $3.209 billion and $3.239 billion and GAAP earnings per share of $1.08 to $1.13, and non-GAAP revenue between $3.215 billion and $3.245 billion and non-GAAP earnings per share of $1.91 to $1.95. GAAP guidance assumes a tax rate of 14 percent and non-GAAP guidance assumes a tax rate of 19.5 percent. Both GAAP and non-GAAP earnings per share assume approximately 253 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 schedule attached.
Investor Conference Call / Webcast Details
Trimble will hold a conference call on October 30 at 2:00 p.m. PT to review its third quarter 2019 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 9082855. The replay will also be available on the web at the address above.
Use of Non-GAAP Financial Information
In addition to financial information prepared in accordance with GAAP, this press release also contains certain non-GAAP financial measures based upon management's view of performance, including:
- Non-GAAP revenue
- Non-GAAP recurring revenue
- Non-GAAP operating income
- Non-GAAP operating margin
- Non-GAAP net income
- Non-GAAP diluted earnings per share
- Non-GAAP tax rate
Trimble uses Non-GAAP Recurring Revenue as a component of its performance measure Annualized Recurring Revenue in order to provide investors with a supplementary indicator of the value of the Company's current recurring revenue contracts. For the third quarter of 2019, recurring revenue on a GAAP basis was $272.3 million, and non-GAAP recurring revenue was $272.7 million, which excluded $0.4 million related to the elimination of the deferred revenue adjustment in connection with acquisitions.
Segment data reflects the results of Trimble's reportable segments under its management reporting system. Segment revenue and operating income are consistent with the respective non-GAAP measures discussed below and in the attached supplemental schedules. Investors are encouraged to review the specific non-GAAP measures, which Trimble uses 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 the financial condition and results of operations and why management chose to exclude selected items, which can be found at the end of this press release. Additional financial information about Trimble's use of non-GAAP results can be found on the investor relations section of Trimble's website at: http://investor.trimble.com.
Annualized Recurring Revenue
In addition to providing financial measures, Trimble provides an Annualized Recurring Revenue (ARR) performance measure. Annualized Recurring Revenue is calculated by dividing Non-GAAP Recurring Revenue for the current quarter by the number of days in the quarter, and multiplying by 365. Annualized Recurring Revenue 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.
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 industries such as agriculture, construction, geospatial and transportation and logistics. For more information about Trimble (NASDAQ: