NAVTEQ Reports Record Fourth Quarter and Full Year Revenue and Operating Income
CHICAGO, Feb. 6, 2008 -- 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 and fiscal year ended December 31, 2007.
Fourth quarter revenue rose 53% over the same period in 2006 to $276.4 million. Operating income was $83.3 million, a 33% increase over last year's fourth quarter. Net income in the quarter grew 44% over the prior year to $61.9 million. Earnings per diluted share in the quarter of $0.61 grew 36% over the same period in 2006.
Full year revenue rose 47% over 2006 to $853.4 million. Full year operating income for 2007 was $226.2 million, a 47% increase over the prior year. Net income for the year grew 57% over the prior year to $173.0 million. Earnings per diluted share for the year of $1.73 grew 51% over 2006.
"The fourth quarter capped a terrific year of growth and progress for NAVTEQ," said Judson Green, president and chief executive officer. "The performance of our business continued to outpace our forecasts, which enabled us to increase investment in our products and services during the year. We are excited about our prospects as we begin 2008 and we look forward to another successful year."
Revenue from NAVTEQ's Europe, Middle East & Africa (EMEA) region totaled $147.1 million in the quarter, up 29% from the fourth quarter of 2006. For the full year, EMEA revenue was $472.5 million, an increase of 31% over 2006. Excluding the impact of foreign currency rate fluctuation, EMEA revenue for the fourth quarter and full year 2007 grew 17% and 22%, respectively. Revenue for the Americas region was $127.6 million in the quarter, a 92% increase over the fourth quarter of 2006. For the full year, revenue in the Americas region was $373.3 million, representing 73% growth over 2006. Asia Pacific revenue was $1.7 million in the quarter, an increase of 115% over the fourth quarter of 2006. For the full year, Asia Pacific revenue of $7.6 million grew 40% over 2006.
Cash and marketable securities totaled $462.8 million at December 31, 2007. Net cash provided by operating activities for the full year was $292.9 million.
Status of pending merger with Nokia
NAVTEQ announced today that the pending merger with Nokia was cleared on December 6, 2007 by the Committee on Foreign Investments in the United States ("CFIUS") under the provisions of the Exon-Florio Amendment to the Defense Production Act of 1950.
Completion of the merger is subject to the receipt of European regulatory approval. Nokia is expected to file its Form CO with the European Commission within the next one to two weeks.
Supplementary Information
In lieu of a conference call, management has provided a PowerPoint document containing supplementary information on the results, which is available in the 'News & Events' section of our IR website at investor.navteq.com.
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 over 3,300 employees located in 167 offices in 31 countries.
NAVTEQ is a trademark in the U.S. and other countries. All rights reserved.
This document may include certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts and statements identified by words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" or words of similar meaning. Such statements may include, but are not limited to, planned expenditures and expectations of future financial performance and operating results. The statements are based on our current beliefs or expectations and are inherently subject to various risks and uncertainties, including those set forth under "Item 1A. Risk Factors" in each of the Company's most recent Annual and Quarterly Reports filed with the Securities and Exchange Commission.
Actual results may differ materially from these expectations due to changes in global political, economic, business, competitive, market and regulatory factors. NAVTEQ does not undertake any obligation to update any forward-looking statements contained in this document.
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NAVTEQ CORPORATION
Condensed Consolidated Statements of Income
(In thousands, except per share data)
Quarter Ended Year Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2006 2007 2006 2007
(Unaudited) (Unaudited)
Net revenue:
Digital map licensing and
related revenues $174,610 254,692 $565,244 785,461
Advertising 260 14,626 260 49,574
Other 5,821 7,039 16,115 18,352
Total net revenue 180,691 276,357 581,619 853,387
Operating costs and expenses:
Database creation and
delivery costs 77,515 121,944 275,449 395,778
Selling, general, and
administrative expenses 40,373 71,127 152,474 231,458
Total operating costs and
expenses 117,888 193,071 427,923 627,236
Operating income 62,803 83,286 153,696 226,151
Other income 2,956 5,669 10,249 17,884
Income before income taxes 65,759 88,955 163,945 244,035
Income tax expense 22,816 27,043 54,481 71,085
Net income before cumulative
effect of change in accounting
principle 42,943 61,912 109,464 172,950
Cumulative effect of change
in accounting principle,
net of tax - - 506 -
Net income $42,943 61,912 $109,970 172,950
Earnings per share of common
stock before cumulative
effect of change in
accounting principle -
Basic $0.46 0.63 $1.18 1.78
Diluted $0.45 0.61 $1.14 1.73
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 $0.46 0.63 $1.18 1.78
Diluted $0.45 0.61 $1.15 1.73
Weighted average shares of
common stock outstanding -
Basic 93,470 98,504 93,029 97,350
Diluted 95,852 101,551 95,713 99,985
NAVTEQ CORPORATION
Condensed Consolidated Balance Sheets
(In thousands)
Dec. 31, Dec. 31,
2006 2007
Assets (Unaudited)
Current Assets:
Cash and cash equivalents $122,335 159,857
Short-term marketable securities 137,163 226,126
Accounts receivable, net 126,081 193,505
Deferred income taxes, net 9,232 39,872
Prepaid expenses and other current assets 17,744 32,752
Total current assets 412,555 652,112
Property and equipment, net 27,462 111,687
Capitalized software development
costs, net 18,844 27,084
Long-term deferred income taxes,
net 187,391 198,620
Long-term marketable securities 63,033 76,855
Goodwill and acquired intangible
assets, net 72,814 247,956
Deposits and other assets 12,602 7,503
Total assets $794,701 1,321,817
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $22,874 32,175
Accrued payroll and related liabilities 33,571 48,935
Other accrued expenses 38,439 52,362
Accrued rebates 16,909 62,279
Deferred revenue 28,618 45,582
Total current liabilities 140,411 241,333
Long-term deferred revenue 2,874 45,148
Other long-term liabilities 2,035 28,762
Total liabilities 145,320 315,243
Stockholders' equity 649,381 1,006,574
Total liabilities and stockholders'
equity $794,701 1,321,817
NAVTEQ CORPORATION
Condensed Consolidated Statements of Cash Flows
(In thousands)
Year Ended
Dec. 31, Dec. 31,
2006 2007
(Unaudited)
Cash flows from operating activities:
Net income $109,970 172,950
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 29,700 42,931
Deferred income taxes 15,046 10,693
Stock compensation expense 14,501 20,844
Cumulative effect of change in accounting
principle (506) -
Provision for doubtful receivables 2,548 4,312
Noncash other 1,215 344
Changes in operating assets and
liabilities, net of effects
of acquisitions (32,466) 40,872
Net cash provided by operating
activities 140,008 292,946
Cash flows from investing activities:
Acquisition of property and equipment (17,834) (74,606)
Capitalized software development costs (9,055) (20,552)
Net purchases of marketable securities (65,408) (98,372)
Payments for acquisitions, net of cash
acquired (42,216) (90,490)
Note receivable (300) -
Net cash used in investing activities (134,813) (284,020)
Cash flows from financing activities:
Issuance of common stock and other equity
transactions 26,256 19,579
Net cash provided by financing
activities 26,256 19,579
Effect of exchange rate changes on cash 5,814 9,017
Net increase in cash and cash
equivalents 37,265 37,522
Cash and cash equivalents at beginning of
period 85,070 122,335
Cash and cash equivalents at end of period $122,335 159,857
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