NAVTEQ Reports Record Operating Results for the Second Quarter
CHICAGO, July 20 -- NAVTEQ Corporation , a leading global provider of digital map data for vehicle navigation and location-based solutions, today reported record revenue and operating income for the quarter ended June 26, 2005.
Revenue in the quarter rose 27% over the second quarter of 2004 to $122.8 million. Operating income grew 51% over the year-ago period to $37.4 million. Net income was up 65% in the quarter to $25.3 million, compared with $15.3 million in the prior year's second quarter. Diluted earnings per share for the second quarter grew 62% to $0.27, compared with $0.17 in the prior year's second quarter.
For the first six months of 2005, revenue was $227.5 million, which represented growth of 29% over the same period in 2004. Year-to-date operating income grew 53% to $62.3 million. Net income was up 68% for the first six months of 2005 to $42.0 million, compared with $25.0 million for the same period in 2004. Year-to-date diluted earnings per share rose 64% to $0.45, compared with $0.27 for the first six months of 2004.
"Our second quarter and year-to-date financial results point to another strong year for navigation and location-based products and services," said Judson Green, President and Chief Executive Officer of NAVTEQ. "We are excited about the many opportunities we see for GPS technology around the world. As our customers continue to innovate with their products and services, we continue to invest in the coverage, content and technology initiatives that will meet their evolving needs."
Revenue from NAVTEQ's European operations totaled $82.0 million in the quarter, up 23% from $66.6 million in the second quarter of 2004. North American revenue was $40.8 million in the quarter, a 36% increase over the $30.0 million posted in the second quarter of 2004.
Cash and marketable securities totaled $135.2 million at June 26, 2005. Net cash provided by operating activities for the first six months of 2005 was $42.5 million.
About NAVTEQ
NAVTEQ is a leading provider of comprehensive digital map information for automotive navigation systems, mobile navigation devices, Internet-based mapping applications, and government and business solutions. NAVTEQ creates the digital maps and map content that power navigation and location-based services solutions around the world. The Chicago-based company was founded in 1985 and has approximately 1,600 employees located in 122 offices in 21 countries.
NAVTEQ is a trademark in the U.S. and other countries.
NAVTEQ CORPORATION
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
Quarter Ended Six Months Ended
June 27, June 26, June 27, June 26,
2004 2005 2004 2005
Net revenue $96,600 122,832 176,065 227,529
Operating costs and expenses:
Database creation and distribution
costs 44,539 54,050 84,974 102,003
Selling, general, and administrative
expenses 27,216 31,340 50,312 63,253
Total operating costs and expenses 71,755 85,390 135,286 165,256
Operating income 24,845 37,442 40,779 62,273
Other income (expense) (184) 837 (389) 1,438
Income before income taxes 24,661 38,279 40,390 63,711
Income tax expense 9,338 13,015 15,348 21,662
Net income $15,323 25,264 25,042 42,049
Earnings per share of common stock -
Basic $0.18 0.28 0.29 0.47
Diluted $0.17 0.27 0.27 0.45
Weighted average shares of common
stock outstanding -
Basic 86,495 89,773 85,337 89,199
Diluted 91,916 93,854 91,522 93,678
NAVTEQ CORPORATION
Condensed Consolidated Balance Sheets
(In thousands)
Dec. 31, June 26,
2004 2005
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $30,101 47,731
Short-term marketable securities 45,650 37,038
Accounts receivable, net 56,582 79,562
Deferred income taxes 50,696 47,574
Prepaid expenses and other current
assets 8,348 10,535
Total current assets 191,377 222,440
Property and equipment, net 18,220 17,023
Capitalized software development
costs, net 26,243 26,256
Long-term deferred income taxes, net 92,069 73,944
Long-term marketable securities 27,280 50,418
Deposits and other assets 9,519 10,849
Total assets $364,708 400,930
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $13,962 10,306
Accrued payroll and related liabilities 28,054 22,681
Other accrued expenses 20,609 23,923
Deferred revenue 31,165 37,831
Total current liabilities 93,790 94,741
Fair value of foreign currency derivative 21,616 8,736
Long-term deferred revenue 13,342 7,989
Other long-term liabilities 3,142 2,179
Total liabilities 131,890 113,645
Stockholders' equity 232,818 287,285
Total liabilities and
stockholders' equity $364,708 400,930
NAVTEQ CORPORATION
Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands)
Six Months Ended
June 27, June 26,
2004 2005
Cash flows from operating activities:
Net income $25,042 42,049
Adjustments to reconcile net income
to net cash
provided by operating activities:
Depreciation and amortization 6,948 10,277
Deferred income taxes 12,608 18,230
Stock compensation expense 1,526 4,819
Noncash other 1,687 5,429
Changes in operating assets and
liabilities 8,025 (38,338)
Net cash provided by
operating activities 55,836 42,466
Cash flows from investing activities:
Acquisition of property and equipment (5,092) (2,532)
Capitalized software development costs (5,697) (6,128)
Net purchases of marketable securities - (15,053)
Purchase of investment - (500)
Cash on deposit with affiliate, net 3,244 -
Net cash used in investing
activities (7,545) (24,213)
Cash flows from financing activities:
Issuance of common stock and other
equity transactions 693 2,667
Dividends paid (47,159) -
Net cash provided by (used in)
financing activities (46,466) 2,667
Effect of exchange rate changes on cash (67) (3,290)
Net increase in cash and
cash equivalents 1,758 17,630
Cash and cash equivalents at beginning
of period 1,982 30,101
Cash and cash equivalents at end of period $3,740 47,731