Navteq reports record year 2005 operating results
Chicago, Illinois, USA – NAVTEQ Corporation (NYSE: NVT), a leading global provider of digital maps for vehicle navigation and location-based solutions, reported record revenue and operating income for the fourth quarter and fiscal year ended December 31, 2005.
Revenue in the quarter rose 23% over the fourth quarter of 2004 to 146.0 million dollar. Operating income grew 31% over the prior year to 41.6 million dollar. Net income was up 79% to 27.7 million dollar, compared to 15.4 million dollar in the prior year’s fourth quarter. Earnings per diluted share for the fourth quarter grew 75% to 0.29 dollar, compared to 0.17 dollar in the prior year’s quarter.
For the full year 2005, revenue was 496.5 million dollar, representing growth of 26% over 2004. Operating income for the full year grew 42% to 134.3 million dollar. Net income for 2005 was 170.8 million dollar, compared to 54.1 million dollar in 2004. Earnings per diluted share for the year grew to 1.81 dollar, compared to 0.59 dollar per diluted share in 2004.
“Our strong fourth quarter financial performance capped off another exciting year for GPS technology and digital map data. In 2005, our database powered more map-enabled devices than any other solution in Europe and North America,” said Judson Green, President and Chief Executive Officer. “We remain focused on growing our geographic coverage and advancing the quality of our product. We believe that acquisitions in Korea and Mexico along with significant coverage and content enhancements in Europe and North America have positioned us well for continued success in the years ahead.”
Net income and earnings per diluted share for the full year 2005 were significantly higher than in 2004 due in part to the recording of a net income tax benefit of 80.6 million dollar, or 0.85 dollar per diluted share, during the third quarter of 2005. The recording of this benefit was primarily related to the reversal of the valuation allowance on deferred tax assets associated with net operating loss and deferred interest carry-forwards in the U.S.
In the fourth quarter of 2005, the company incurred additional income tax expense of 0.7 million dollar, or 0.01 dollar per diluted share, related to the revaluation of the company’s deferred income tax asset due to a reduction in the 2006 Dutch corporate tax rate enacted in the fourth quarter of 2005 and shifts in the amount of income NAVTEQ generates among various U.S. states. In the fourth quarter of 2004, the company recorded additional tax expense of 3.8 million dollar, or 0.04 dollar per diluted share, related to an earlier reduction in the Dutch corporate tax rate.
NAVTEQ’s European revenue totaled 85.0 million dollar in the quarter, up 9% from the fourth quarter of 2004. For the full year, European revenue was 316.2 million dollar, an increase of 18% over 2004. Excluding the impact of foreign currency rate fluctuation, European revenue for the fourth quarter and full year 2005 grew 17% and 18%, respectively. North American revenue was 56.5 million dollar in the quarter, a 38% increase over the fourth quarter of 2004. For the full year, North American revenue was 172.8 million dollar, representing 38% growth over 2004. Asia Pacific revenue, which represents revenue recorded since the July 2005 acquisition of Picture Map International in South Korea, was 4.5 million dollar in the quarter and 7.5 million dollar for the full year.
Cash and marketable securities totaled 218.8 million dollar at December 31, 2005. Net cash provided by operating activities for the full year was 137.8 million dollar, compared to 106.4 million dollar in 2004.
The following forward-looking statements reflect NAVTEQ management’s expectations as of February 8, 2006. For the fiscal year 2006, NAVTEQ expects revenue in the range of 590 million dollar to 615 million dollar and earnings per diluted share of 1.21 dollar to 1.28 dollar, assuming an effective worldwide tax rate of 33-34% and an average annual U.S. dollar/euro exchange rate of 1.20 dollar. Earnings per diluted share guidance for 2006 include stock-based compensation expense of approximately 15 million dollar due in part to the full expensing of stock options for the first time. Stock-based compensation in 2005 was 9.1 million dollar.
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. These statements are based on our current beliefs or expectations and are inherently subject to various risks and uncertainties, including those set forth under the caption “Risk Factors” in the Company’s Quarterly Report on Form 10-Q for the quarter ended June 26, 2005, as filed with the Securities and Exchange Commission.
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 1,900 employees located in 131 offices in 23 countries.
NAVTEQ is a trademark in the U.S. and other countries. All rights reserved.