NAVTEQ Reports Record First Quarter 2007 Operating Results
CHICAGO, May 1, 2007 -- NAVTEQ Corporation, a leading global provider of digital maps for vehicle navigation and location-based solutions, today reported record revenue and operating income for the first quarter ended April 1, 2007.
Revenue in the quarter rose 31% over the first quarter of 2006 to $160.0 million. Operating income grew 85% over the prior year to $38.3 million. Net income was up 87% over last year's first quarter to $30.2 million. Earnings per diluted share grew 84% to $0.31, compared to $0.17 in the prior year's quarter.
"The business is performing very well and we see positive signs for the remainder of the year," said Judson Green, President and Chief Executive Officer. "In terms of our key accomplishments, we closed on our acquisition of Traffic.com, secured new business with a number of in-dash and portable customers, and released our first Thailand map, which marked our 60th country of coverage."
NAVTEQ revenue from the Europe, Middle East & Africa (EMEA) region totaled $87.3 million in the quarter, up 14% from the first quarter of 2006. Excluding the impact of foreign currency rate fluctuation, EMEA revenue for the first quarter grew 5%. Revenue for the Americas region was $70.8 million in the quarter, a 61% increase over the first quarter of 2006. Asia Pacific revenue was $1.9 million compared to $1.8 million in last year's first quarter.
Cash and marketable securities totaled $347.5 million at April 1, 2007. Net cash provided by operating activities for the first quarter of 2007 was $79.1 million.
Business Outlook
The following forward-looking statements reflect NAVTEQ management's expectations as of May 1, 2007. For the fiscal year 2007, NAVTEQ reaffirms its previously issued annual guidance, which was provided on February 8, 2007. NAVTEQ expects revenue in the range of $720 million to $750 million and earnings per diluted share of $1.20 to $1.26, assuming an average annual U.S. Dollar/Euro exchange rate of $1.27 and an effective tax rate of 28-29%.
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 2,800 employees located in 167 offices in 28 countries.
NAVTEQ is a trademark in the U.S. and other countries. All rights reserved.
NAVTEQ CORPORATION
Condensed Consolidated Statements of Income
(In thousands, except per share data)
Quarter Ended
April 2, April 1,
2006 2007
(Unaudited)
Net revenue:
Digital map licensing and related
revenues $118,465 150,703
Advertising -- 6,227
Other 3,860 3,021
Total net revenue 122,325 159,951
Operating costs and expenses:
Database creation and delivery costs 62,851 74,255
Selling, general, and administrative
expenses 38,751 47,353
Total operating costs and expenses 101,602 121,608
Operating income 20,723 38,343
Other income 2,334 3,787
Income before income taxes 23,057 42,130
Income tax expense 7,379 11,881
Net income before cumulative effect of
change in accounting principle 15,678 30,249
Cumulative effect of change in
accounting principle, net of tax 506 --
Net income $16,184 30,249
Earnings per share of common stock
before cumulative effect of change
in accounting principle -
Basic $0.17 $0.32
Diluted $0.16 $0.31
Cumulative effect of change in
accounting principle per share of
common stock -
Basic $0.01 $--
Diluted $0.01 $--
Earnings per share of common stock -
Basic $0.18 $0.32
Diluted $0.17 $0.31
NAVTEQ CORPORATION
Condensed Consolidated Balance Sheets
(In thousands)
Dec. 31, April 1,
2006 2007
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $122,335 114,632
Short-term marketable securities 137,163 188,042
Accounts receivable, net 126,081 109,304
Deferred income taxes, net 9,232 16,338
Prepaid expenses and other current
assets 17,744 18,830
Total current assets 412,555 447,146
Property and equipment, net 27,462 56,439
Capitalized software development
costs, net 18,844 20,877
Long-term deferred income taxes, net 187,391 231,313
Long-term marketable securities 63,033 44,795
Goodwill and acquired intangible
assets, net 72,814 211,452
Deposits and other assets 12,602 3,726
Total assets $794,701 1,015,748
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $22,874 18,898
Accrued payroll and related
liabilities 33,571 29,704
Other accrued expenses 40,327 45,415
Deferred revenue 43,639 52,808
Total current liabilities 140,411 146,825
Long-term deferred revenue 2,874 47,898
Other long-term liabilities 2,035 7,789
Total liabilities 145,320 202,512
Stockholders' equity 649,381 813,236
Total liabilities and
stockholders' equity $794,701 1,015,748
NAVTEQ CORPORATION
Condensed Consolidated Statements of Cash Flows
(In thousands)
Quarter Ended
April 2, April 1,
2006 2007
(Unaudited)
Cash flows from operating activities:
Net income $16,184 30,249
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 6,960 9,108
Deferred income taxes 4,843 470
Stock compensation expense 4,016 4,329
Cumulative effect of change in
accounting principle (506) --
Provision for doubtful receivables 1,090 575
Noncash other 377 3
Changes in operating assets and
liabilities, net of effects of
acquisitions (18,553) 34,323
Net cash provided by
operating activities 14,411 79,057
Cash flows from investing activities:
Acquisition of property and equipment (2,188) (6,602)
Capitalized software development costs (3,655) (5,175)
Net purchases of marketable securities (42,074) (33,687)
Payments for acquisitions, net of
cash acquired (4,996) (44,369)
Note receivable (200) --
Net cash used in investing
activities (53,113) (89,833)
Cash flows from financing activities:
Issuance of common stock and other
equity transactions 4,060 2,233
Net cash provided by
financing activities 4,060 2,233
Effect of exchange rate changes on cash 429 840
Net increase in cash and cash
equivalents (34,213) (7,703)
Cash and cash equivalents at beginning
of period 85,070 122,335
Cash and cash equivalents at end of
period $50,857 114,632