NAVTEQ Reports Record Fourth Quarter and Full Year 2005 Operating Results
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NAVTEQ Reports Record Fourth Quarter and Full Year 2005 Operating Results

CHICAGO, Feb. 8 /PRNewswire-FirstCall/ -- NAVTEQ Corporation (NYSE: NVT), a leading global provider of digital maps for vehicle navigation and location- based solutions, today 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. Operating income grew 31% over the prior year to $41.6 million. Net income was up 79% to $27.7 million, compared to $15.4 million in the prior year's fourth quarter. Earnings per diluted share for the fourth quarter grew 75% to $0.29, compared to $0.17 in the prior year's quarter.

For the full year 2005, revenue was $496.5 million, representing growth of 26% over 2004. Operating income for the full year grew 42% to $134.3 million. Net income for 2005 was $170.8 million, compared to $54.1 million in 2004. Earnings per diluted share for the year grew to $1.81, compared to $0.59 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, or $0.85 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, or $0.01 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, or $0.04 per diluted share, related to an earlier reduction in the Dutch corporate tax rate.

NAVTEQ's European revenue totaled $85.0 million in the quarter, up 9% from the fourth quarter of 2004. For the full year, European revenue was $316.2 million, 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 in the quarter, a 38% increase over the fourth quarter of 2004. For the full year, North American revenue was $172.8 million, 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 in the quarter and $7.5 million for the full year.

Cash and marketable securities totaled $218.8 million at December 31, 2005. Net cash provided by operating activities for the full year was $137.8 million, compared to $106.4 million in 2004.

Business Outlook

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 to $615 million and earnings per diluted share of $1.21 to $1.28, assuming an effective worldwide tax rate of 33-34% and an average annual U.S. dollar/euro exchange rate of $1.20. Earnings per diluted share guidance for 2006 include stock-based compensation expense of approximately $15 million due in part to the full expensing of stock options for the first time. Stock-based compensation in 2005 was $9.1 million.

Earnings Call Information

    The information for the company's earnings release conference call is as

    When:     Wednesday, February 8, 2006 at 5:00 PM ET
    How:      Log on to the web at the URL above or call to listen in at
              866-510-0712 (North America) or 617-597-5380 (international),
              passcode 90837018
Email Contact

The company will provide a telephone replay of the conference call at 888-286-8010 (North America) or 617-801-6888 (international), passcode 40603881. The telephone replay will be accessible from 7:00 PM ET Wednesday, February 8, 2006 through 11:59 PM ET on Wednesday, February 15, 2006. An on- demand replay of the conference call will also be available online at until March 8, 2006.

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. 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.


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

                                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,
                                            2004     2005     2004     2005
                                             (Unaudited)           (Unaudited)

    Net revenue                         $119,000  145,978  392,858  496,512

    Operating costs and expenses:
      Database creation and distribution
       costs                              53,190   63,553  186,330  222,933
      Selling, general, and
       administrative expenses            34,102   40,865  111,942  139,323

        Total operating costs and
         expenses                         87,292  104,418  298,272  362,256

        Operating income                  31,708   41,560   94,586  134,256

        Other income (expense)              (200)   2,095     (758)   4,735

        Income before income taxes        31,508   43,655   93,828  138,991

    Income tax expense (benefit)          16,080   15,989   39,762  (31,839)

        Net income                       $15,428   27,666   54,066  170,830

    Earnings per share of common stock -
      Basic                                $0.18     0.30     0.62     1.90
      Diluted                              $0.17     0.29     0.59     1.81

    Weighted average shares of common
     stock outstanding -
      Basic                               87,693   91,361   86,509   90,115
      Diluted                             92,729   94,918   92,001   94,198

                               NAVTEQ CORPORATION
                      Condensed Consolidated Balance Sheets
                                 (In thousands)

                                                   Dec. 31,         Dec. 31,
                                                     2004             2005
    Current assets:
      Cash and cash equivalents                     $30,101           85,070
      Short-term marketable securities               45,650           84,299
      Accounts receivable, net                       56,582           82,352
      Deferred income taxes                          50,696           42,584
      Prepaid expenses and other current assets       8,348           15,203

                Total current assets                191,377          309,508

    Property and equipment, net                      18,220           20,828
    Capitalized software development costs, net      26,243           25,761
    Long-term deferred income taxes, net             92,069          169,264
    Long-term marketable securities                  27,280           49,429
    Acquired intangible assets, net                      -            16,815
    Goodwill                                             -            11,778
    Deposits and other assets                         9,519           12,505

                Total assets                       $364,708          615,888

                     Liabilities and Stockholders' Equity

    Current liabilities:
      Accounts payable                              $13,962           19,572
      Accrued payroll and related liabilities        28,054           28,365
      Other accrued expenses                         20,609           28,658
      Deferred revenue                               31,165           38,703

                Total current liabilities            93,790          115,298

    Fair value of foreign currency derivative        21,616            3,265
    Long-term deferred revenue                       13,342            3,446
    Other long-term liabilities                       3,142            3,815

                Total liabilities                   131,890          125,824

    Stockholders' equity                            232,818          490,064

                Total liabilities and
                 stockholders' equity              $364,708          615,888

                                NAVTEQ CORPORATION
                 Condensed Consolidated Statements of Cash Flows
                                  (In thousands)

                                                          Year Ended
                                                   Dec. 31,        Dec. 31,
                                                     2004            2005

    Cash flows from operating activities:
      Net income                                    $54,066           170,830
      Adjustments to reconcile net income
       to net cash provided by operating
          Depreciation and amortization              15,568            21,568
          Deferred income taxes                      31,841           (77,737)
          Stock compensation expense                  7,016             9,117
          Tax benefit on non-qualified
           stock options                              1,547            40,936
          Noncash other                               1,533             5,107
          Changes in operating assets and
           liabilities, net of effects of
           acquisitions                              (5,149)          (32,068)

              Net cash provided by
               operating activities                 106,422           137,753

    Cash flows from investing activities:
      Acquisition of property and equipment         (12,875)          (10,466)
      Capitalized software development costs        (12,792)          (12,369)
      Net purchases of marketable securities        (73,166)          (62,260)
      Payments for acquisitions, net of
       cash acquired                                     -             (8,234)
      Purchase of investments                          (490)           (1,201)
      Cash on deposit with affiliate, net            65,199                -

              Net cash used in investing
               activities                           (34,124)          (94,530)

    Cash flows from financing activities:
      Issuance of common stock and other
       equity transactions                            1,393            14,190
      Dividends paid                                (47,159)               -

              Net cash provided by (used
               in) financing activities             (45,766)           14,190

    Effect of exchange rate changes on cash           1,587            (2,444)

              Net increase in cash and
               cash equivalents                      28,119            54,969

    Cash and cash equivalents at beginning
     of period                                        1,982            30,101

    Cash and cash equivalents at end of
     period                                         $30,101            85,070

CONTACT: Editorial, Anne Martino, +1-312-894-7038, or
Email Contact, or Bob Richter, +1-212-802-8588, or
Email Contact, or Investor Relations, Thomas R. Fox,
+1-312-894-7500, or Email Contact, all of NAVTEQ Corporation

Web site: