Tele Atlas reports second quarter revenue of €72.8 million
21% increase over same quarter last year
‘s-Hertogenbosch, The Netherlands, July 31, 2007 – Tele Atlas NV (FSE: TA6, EUNV: TA), a leading global provider of digital maps and dynamic content for navigation and location based solutions, today reported results for the second quarter of 2007.
Second Quarter Highlights:
• Revenues increased 21% over the same period last year to €72.8 million (Q2 2006: €60.0 million).
• Adjusted EBITDA increased 67% over the same period in the prior year to €12.2 million (Q2 2006: €7.3 million).
• Net loss of €1.2 million compared to a profit of €4.5 million during the same quarter last year (Q2 2006 included a tax benefit of €10.7 million).
• Personal navigation revenues increased 52% over the same quarter during prior year, showing continued strong growth in this market segment.
• On July 23, 2007 TomTom and Tele Atlas announced that TomTom intends to make a cash offer of € 21.25 per ordinary share for Tele Atlas N.V. We refer to the joint press release of that date for more information.
Key Figures
In millions of euros, except otherwise noted
|
|
Q2 2007
|
Q2 2006
|
% Change
|
Revenues
|
|
72.8
|
60.0
|
21%
|
Adjusted EBITDA1
|
|
12.2
|
7.3
|
67%
|
Operating result (EBIT)
|
|
(1.5)
|
(7.7)
|
81%
|
Net result
|
|
(1.2)
|
4.5
|
(127%)
|
Average number of employees
|
|
1,656
|
1,442
|
15%
|
Earnings per share (in €)
|
|
(0.01)
|
0.05
|
(140%)
|
1 Adjusted EBITDA is the operating result before capitalization, depreciation and amortization and before costs related to Share-based Payments.
Alain De Taeye, Chief Executive Officer, said: “The sustained strong growth across personal navigation and automotive markets reflects the continuing emergence of a true mass market for digital maps in which tens of millions of users will rely on Tele Atlas data in their daily lives. Our introduction during the quarter of new features such as 3D citymaps capabilities has raised the map’s usability to an even higher level.
Financial Highlights
Beginning with fiscal 2007, certain changes have been made to segmentation and presentation in our reporting. These changes are further clarified in the notes to these interim financial reports in this release. Comparative information for 2006 has been restated to reflect these changes retroactively. Restated key quarterly financials by operating segment are summarized in the annex to this release.
Revenues
Tele Atlas' revenues for the second quarter of 2007 increased by 21% to €72.8 million compared to €60.0 million in the same period last year. Revenues grew 24% after adjusting for a €1.3 million effect of currency exchange rate changes. Revenues for the first six months increased by 17% (21% after adjustment for exchange rate effects) to €136.8 million, compared to € 116.5 million in the previous year. EMEA (Europe, Middle East & Africa) revenues for the quarter increased by 21% over the prior year to €53.1 million, mainly as a result of growth in the personal navigation segment. Americas revenues for the second quarter increased 12% from the prior year to €16.7 million, primarily due to increases in the personal navigation and Internet segments. Americas revenues grew 21% after adjusting for the effect of currency exchange rates changes. Revenues for the quarter in the Asia Pacific (APAC) area increased by 158% over the prior year to €2.9 million.
Revenues Per Segment1
(In thousands of euros)
|
|
|
|
|
|
|
|
|
|
|
3 months ended
June 30, 2007
|
3 months ended
June 30, 2006
|
|
|
EMEA
|
Americas
|
APAC
|
Total
|
EMEA
|
Americas
|
APAC
|
Total
|
Automotive navigation
|
8,229
|
2,413
|
541
|
11,183
|
9,571
|
2,801
|
676
|
13,048
|
Data products navigation
|
6,042
|
168
|
77
|
6,287
|
6,311
|
51
|
8
|
6,370
|
Personal navigation
|
32,946
|
5,987
|
7
|
38,940
|
22,999
|
2,542
|
22
|
25,563
|
Enterprise and government
|
2,882
|
8,122
|
-
|
11,004
|
2,755
|
8,826
|
435
|
12,016
|
Other segments
|
2,319
|
2,345
|
724
|
5,388
|
1,855
|
1,128
|
-
|
2,983
|
|
|
52,418
|
19,035
|
1,349
|
72,802
|
43,491
|
15,348
|
1,141
|
59,980
|
Intra-company Commissions
|
722
|
(2,314)
|
1,592
|
-
|
463
|
(463)
|
-
|
-
|
Net Revenue Total
|
53,140
|
16,721
|
2,941
|
72,802
|
43,954
|
14,885
|
1,141
|
59,980
|
|
|
|
|
|
|
|
|
|
|
|
|
6 months ended
June 30, 2007
|
6 months ended
June 30, 2006
|
|
|
EMEA
|
Americas
|
APAC
|
Total
|
EMEA
|
Americas
|
APAC
|
Total
|
Automotive navigation
|
16,499
|
5,187
|
1,026
|
22,712
|
20,054
|
4,434
|
1,132
|
25,620
|
Data products navigation
|
10,290
|
214
|
119
|
10,623
|
12,071
|
152
|
8
|
12,231
|
Personal navigation
|
60,176
|
10,989
|
22
|
71,187
|
41,558
|
4,461
|
163
|
46,182
|
Enterprise and government
|
4,939
|
17,493
|
-
|
22,432
|
5,449
|
19,390
|
475
|
25,314
|
Other segments
|
4,376
|
4,777
|
724
|
9,877
|
3,468
|
3,680
|
-
|
7,148
|
|
|
96,280
|
38,660
|
1,891
|
136,831
|
82,600
|
32,117
|
1,778
|
116,495
|
Intra-company Commissions
|
1,263
|
(3,902)
|
2,639
|
-
|
559
|
(570)
|
11
|
-
|
Net Revenue Total
|
97,543
|
34,758
|
4,530
|
136,831
|
83,159
|
31,547
|
1,789
|
116,495
|
1 Segment revenues reflect revenues by database area. Intra-company commissions are for customer and technical support between areas.
Personal Navigation:
During the second quarter of 2007, worldwide revenues in the personal navigation segment increased by 52% over the same period in the prior year to €38.9 million. These 2007 second quarter revenues represent map license fees from the sale of 3.0 million personal navigation units as compared to 1.5 million units in the same quarter of the previous year. EMEA personal navigation revenues for the quarter were €32.9 million, an increase of 43% over the same period last year. Americas personal navigation revenues were €6.0 million, an increase of 136% over the same period last year (153% increase excluding exchange rate effect). The difference between personal navigation unit and revenue growth rates resulted from a movement towards lower cost personal navigation systems in the quarter coupled with product price reductions that were effective during the quarter. Revenues for the first 6 months in the personal navigation segment increased by 54% to €71.2 million.
Automotive Navigation:
As previously announced, Tele Atlas is phasing out its compilation and conversion activities. The impact of this phase out during the second quarter was a reduction of approximately €1.1 million in compilation and conversion revenues. This reduction was offset by a similar reduction in cost of revenues and operating expenses. Worldwide revenues in the automotive navigation segment decreased 14% to €11.2 million. Worldwide, the number of map licenses sold by Tele Atlas in the automotive segment grew to just under 0.4 million units, an 18% increase compared to the same period last year. EMEA revenue in this segment was €8.2 million, a 14% decrease from the same period in the prior year, which resulted primarily from the elimination of compilation and conversion revenues discussed above. Americas automotive navigation revenue decreased by 14% to €2.4 million due to changes in exchange rates and a reduction in inventory levels at DENSO due to the change in their production location from Japan to the U.S. After adjustment for the effects of changes in exchange rates, the decrease in Americas automotive revenue was 7%.
Revenues for the first 6 months in the automotive navigation segment decreased by 11% to €22.7 million.
Enterprise and Government:
Second quarter revenue from the enterprise and government sectors (business-to-business) decreased 8% to €11.0 million from €12.0 million during the same period last year, mainly as a result of changes in exchange rates. Americas revenue in this segment decreased by 8% to €8.1 million compared to last year (1% decrease excluding exchange rate effects). EMEA revenue in this segment was €2.9 million compared to €2.8 million in the same quarter last year.
Revenues for the first 6 months in the enterprise and government segment decreased by 11% to €22.4 million largely due to exchange rate effects.
Data Products Navigation:
Second quarter revenues from navigation data products, a segment that today exists primarily in EMEA, decreased by 1% to €6.3 million compared to €6.4 million the same period last year. Revenues for the first 6 months in the data products navigation segment decreased by 13% to €10.6 million due to the reduced demand for map updates for older CD based systems.
Other Segments:
Revenue in the other segments, consisting of Internet and consumer wireless markets, increased by 81% to €5.4 million compared to €3.0 million during the same period last year. Revenues for the first 6 months in other segments increased by 38% to €9.9 million.
Operating Expenses
Operating expenses excluding cost of revenues, depreciation, amortization, capitalization and employee stock option expense (“Adjusted Operating Expenses”), increased by 17% to €54.2 million for the second quarter of 2007 from €46.4 million in the same period in 2006.
Excluding the effect of changes in exchange rates, Adjusted Operating Expenses increased by 23%. Adjusted Operating Expenses for the first six months increased by 16% to €106.7 million
Cost of revenue increased by 3% to €6.4 million in the second quarter from €6.2 million in the second quarter of 2006. Cost of revenue decreased as a percentage of revenue in the second quarter primarily as a result of the elimination of the costs associated with the compilation and conversion revenues from services previously performed for one customer.
Including employee stock option expense, personnel expenses in the second quarter of 2007 increased by 8% to €34.5 million from €31.9 million in 2006. Expense related to share based payments in the second quarter of 2007 amounted to €4.2 million as compared to €5.3 million during the same period in 2006. Excluding employee stock option expense, personnel expenses in the second quarter of 2007 increased by 14% to €30.3 million from €26.6 million in 2006 as a result of an increased number of employees, including temporary personnel. The increased number of employees is partly due to the acquisitions in the second half of 2006 and demands associated with the Company’s growing business. Adjusted for the effect of changes in exchange rates, personnel expenses, excluding employee stock option expense, increased by 20% year over year.
Other operating expenses during the quarter increased by 21% to €23.9 million from €19.8 million in the same period during 2006. Excluding the effect of changes in exchange rates, other operating expenses increased 26%. This increase was primarily the result of legal costs incurred in connection with on-going litigation and increased marketing expenses.
Net Result
Earnings before interest, taxes, depreciation, amortization, share based payments and capitalization of database and tool development costs (Adjusted EBITDA) for the second quarter of 2007 increased by 67% to a profit of €12.2 million from €7.3 million for the same period last year. Adjusted EBITDA for the EMEA region increased 30% to €26.0 million for the second quarter of 2007 compared to €20.0 million for the second quarter of 2006 as a result of increased sales revenues. Adjusted EBITDA for the Americas increased to €2.0 million in the second quarter of 2007 from €0.4 million in the same quarter during 2006. Second quarter 2007 Adjusted EBITDA for APAC was a profit of €0.2 million versus a loss of €1.0 million in the same quarter in 2006, mainly as a result of increased revenue. In addition our corporate segment which includes all corporate technology, marketing and other support activities had a loss of €16.0 million.
Adjusted EBITDA for the first six months of 2007 improved to a profit 17.3 million from a profit of €11.6 million for the same period in 2006.
The consolidated operating result (EBIT) for the second quarter improved 81% over the same period last year to a loss of €1.5 million, principally due to the higher Adjusted EBITDA.
Net financial income, including interest paid and received, along with other financing charges, amounted to a gain of €2.0 million during the second quarter of 2007, compared to €1.1 million in the same period of last year. The major component of the increase was the €0.7 million profit from the re-measurement to fair market value of the Company’s investment in Infotech, compared to a loss of €0.4 million the prior year.
Tax charges for the quarter were €2.4 million as compared to a tax benefit of €11.5 million in the second quarter of 2006. The tax benefit realization in 2006 was mainly the result of a one time €10.7 million benefit which was recognized following the approval by the Dutch tax authorities of the reclassification for tax purposes of certain inter-company financing.
Tele Atlas’ consolidated after tax net loss during the second quarter of 2007 was €1.2 million, compared with a net profit of €4.5 million for the same period in 2006.
Cash Flow
Overall cash flow from operating activities for the second quarter of 2007 improved to an inflow of €1.3 million as compared to an outflow of €2.7 million during the same period during 2006 primarily as a result of increased Adjusted EBITDA.
Cash outflow from investing activities which included investments in tangible fixed assets of €2.4 million and capitalized databases and tools of €4.0 million decreased to €6.4 million from €7.8 million in the second quarter of 2006.
Personnel
As of June 30, 2007 Tele Atlas employed 1,685 full time employees world wide (December 31, 2006: 1,628).
Second Quarter Operational Highlights
Personal Navigation
Tele Atlas provides digital maps and location based content to leading personal navigation brands such as TomTom, Mio and ViaMichelin.
During the quarter, TomTom launched the TomTom ONE XL which features Tele Atlas maps in the Western European, Regional European and US versions. TomTom also introduced the TomTom One in South Africa which is the first navigation device launched with Tele Atlas map data in that region. In the GO range, the TomTom 720 and 520 were introduced in June. Both units make use of Tele Atlas’ phonemes to provide both speech-to-text and text-to-speech. The new GO units are expected to be available in the third quarter of 2007.
TomTom also launched a map update program allowing customers to purchase map updates conveniently through TomTom HOME or via the TomTom website.
Mio Technology introduced several new units during the quarter such as the C320 the C520 and the C520t which are all equipped with 4.3 inch screens and the latest Tele Atlas maps. To reach the low cost segment of this market, Mio launched the C220. This unit will be priced at €199 and is as such one of most affordable units on the market. Mio currently is the number three player in the European market and has grown to become one of Tele Atlas’s largest customers.
Enterprise and Government
Tele Atlas continues to be the leading digital map supplier to the enterprise and government segment.
Enterprise agreements with the states of Connecticut and Tennessee were renewed demonstrating continued trust in Tele Atlas for critical public safety applications. The US Department of Justice awarded a new three year agreement to Tele Atlas which allows all US law enforcement officials to use our maps to geographically coordinate their respective investigations.
Tele Atlas’ ability to deliver quality datasets for critical emergency services applications was demonstrated by American Medical Response’s expansion of their Tele Atlas agreement to enable ambulance dispatch services beyond their initial state of California. Tele Atlas also renewed the enterprise license agreements with The US Environmental Protection Agency and the US Army Corps of Engineers
Coverage Advances, New Products and Innovations.
During the quarter, the first Tele Atlas 3D city maps were released, including maps for major European cities including Berlin, London and Rome. Additional European, U.S. and Asian cities are scheduled to be released during the next year. The 3D city maps product complements Tele Atlas’ existing 3D offerings, and is designed to help drivers and pedestrians more easily orient themselves using the appearance of an approaching or nearby destination. With 3D capabilities, screen images in automotive and portable navigation systems and local search applications on mobile devices more closely match what users actually see in their surroundings.
Tele Atlas places2protect was launched for the United States in June, which is designed to provide highly accurate location-based and property information on emergency medical services and critical access facilities and institutions, including hospitals, schools, daycare centers and government offices to help ensure federal, state and local governments and commercial enterprises to integrate accurate location information for these facilities into their map-based applications.
Automotive Navigation
Tele Atlas supplies maps to leading automotive brands and OEM equipment manufacturers such as Audi, Bentley, Bosch/Blaupunkt,, BMW, DaimlerChrysler, Denso, Ford, General Motors, Harman/Becker Automotive, Pioneer, Porsche, SiemensVDO, Toyota, VW and many others.
During the quarter, the first automotive navigation system in Europe with full voice recognition supplied by Tele Atlas phoneme data was released by DaimlerChrysler for the new C-class which will be available as of the summer.
Ford launched a new Blaupunkt/Tele Atlas DVD system in Europe for the new Mondeo. The system will become available on other Ford models later in the year.
In Russia and South East Asia, the first Tele Atlas products were released by DaimlerChrysler for the new C-class with the Mitsubishi Electric Platform.
For Russia, the addition of Audi as a Tele Atlas customer means that all German premium brands; Audi, BMW, DaimlerChrysler and Porsche, now source Tele Atlas data of Russia in their navigation systems.
Full Year 2007 Outlook
Prior to the announcement of the proposed transaction with TomTom, management saw no reason to materially revise the previous 2007 full year guidance of approximately €315 million in revenues, Adjusted EBITDA of approximately €65 million and operating profit (EBIT) of approximately €3 million. Subsequent to 2007, Tele Atlas’ current expectation is that, barring unforeseen circumstances, the Company can grow revenues in excess of 20% on an annual basis for the next several years and that Adjusted EBITDA for each year will increase by approximately 50% of incremental revenue. However, it is currently difficult to assess the impact, if any, the announcement and ongoing progress of the proposed transaction may have on our results for 2007 and beyond.
This outlook is based on current circumstances, business estimates and expectations of future market and business, and is subject to revision based upon unforeseen circumstances.
For more information, please contact:
Jasper Vredegoor
Investor Relations Manager,Tele Atlas NV
Phone: + 31 73 640 21 70
jasper.vredegoor@teleatlas.com
Webcast Q2 results 2007: 31 July 14:00 CET, www.teleatlas.com/WhyTeleAtlas/Investors/FinancialStatements/
Ticker Symbols
ISIN: NL0000233948
Eurolist by Euronext Symbol: TA
Geregelter Markt in Frankfurt (TecDax) Symbol: TA6
WKN: 927101
About Tele Atlas
Tele Atlas delivers the digital maps and dynamic content that power some of the world’s most essential navigation and location-based services.The information is the foundation for a wide range of personal and in-car navigation systems and mobile and Internet map applications that help users find the people, places, products, and services they need, wherever they are. The company also works with business partners who trust its digital map data to delivercritical applications for emergency, business, fleet, and infrastructure services. Founded in 1984, Tele Atlas has approximately 2,400 full-time staff and contract cartographers at offices in 24 countries and uses a sophisticated network of professional drivers, mobile mapping vans, and more than 50,000 data resources to deliver highly accurate and up-to-date digital maps. Tele Atlas is listed on the Frankfurt Stock Exchange (TA6) and on Euronext Amsterdam (TA). For more information, visit www.teleatlas.com.
Forward Looking Statements
This release contains certain forward-looking statements. These forward-looking statements are not historical facts but rather are based on current expectations, estimates and projections about the industry, the Company’s beliefs and its assumptions. Words such as “anticipates,” “expects,” “intends,” “outlook,” “plans,” “believes,” “seeks,” “may,” “will,” “should” and “estimates,” and variations of these words and similar expressions, are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond the Company’s control, are difficult to predict and could cause actual results to differ materially from those expressed, implied or forecast in the forward-looking statements. In addition, the forward-looking events discussed in this press release might not occur. These risks and uncertainties include, among others, those set forth herein and under “Risk Profile” in the Company’s 2006 annual report. Readers are cautioned not to place undue reliance on these forward-looking statements. Readers should read this press release with the understanding that actual future results and events may be materially different from what we currently expect. The forward-looking statements included in this press release reflect Tele Atlas’ views and assumptions only as of the date of this press release. The Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.
Tele Atlas and the Tele Atlas logo are registered trademarks and trade names of Tele Atlas N.V. Other trademarks and trade names are the property of the owners of those trademarks and trade names.
Consolidated statement of operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6 months ended June 30,
|
|
3 months ended June 30,
|
|
|
|
2007
|
|
2006
|
|
2007
|
|
2006
|
|
|
|
(in thousands of euros, except for per share information)
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
136,831
|
|
116,495
|
|
72,802
|
|
59,980
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
12,848
|
|
12,567
|
|
6,415
|
|
6,228
|
Personnel expenses
|
|
69,831
|
|
62,518
|
|
34,477
|
|
31,889
|
Depreciation and amortization
|
|
26,374
|
|
24,845
|
|
13,479
|
|
12,306
|
Other operating expenses
|
|
46,244
|
|
39,877
|
|
23,899
|
|
19,812
|
Total operating expenses
|
|
155,297
|
|
139,807
|
|
78,270
|
|
70,235
|
Capitalized databases and tools
|
|
6,843
|
|
4,643
|
|
3,997
|
|
2,543
|
Net operating expenses
|
|
148,454
|
|
135,164
|
|
74,273
|
|
67,692
|
|
|
|
|
|
|
|
|
|
|
Operating result (loss)
|
|
(11,623)
|
|
(18,669)
|
|
(1,471)
|
|
(7,712)
|
|
|
|
|
|
|
|
|
|
|
Interest income and expenses
|
|
3,679
|
|
2,339
|
|
1,889
|
|
1,168
|
Foreign currency exchange gains/losses
|
|
(100)
|
|
(228)
|
|
105
|
|
(52)
|
Share in result of associate
|
|
-
|
|
(63)
|
|
-
|
|
(26)
|
Net result on re-measurement of investment at fair value
|
|
1,279
|
|
(465)
|
|
677
|
|
(362)
|
|
|
|
|
|
|
|
|
|
|
Result (loss) before income taxes
|
|
(6,765)
|
|
(17,086)
|
|
1,200
|
|
(6,984)
|
|
|
|
|
|
|
|
|
|
|
Income tax
|
|
(2,915)
|
|
10,582
|
|
(2,442)
|
|
11,465
|
|
|
|
|
|
|
|
|
|
|
Net result (loss)
|
|
(9,680)
|
|
(6,504)
|
|
(1,242)
|
|
4,481
|
|
|
|
|
|
|
|
|
|
|
Net result attributable to:
|
|
|
|
|
|
|
|
|
Equity holders of the parent
|
|
(9,637)
|
|
(6,504)
|
|
(1,215)
|
|
4,481
|
Minority interest
|
|
(43)
|
|
-
|
|
(27)
|
|
-
|
|
|
|
(9,680)
|
|
(6,504)
|
|
(1,242)
|
|
4,481
|
|
|
|
|
|
|
|
|
|
|
Net result (loss) per share (basic)
|
|
(0.11)
|
|
(0.07)
|
|
(0.01)
|
|
0.05
|
|
|
|
|
|
|
|
|
|
|
Net result (loss) per share (diluted)
|
|
(0.11)
|
|
(0.07)
|
|
(0.01)
|
|
0.05
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding (basic)
|
|
90,550,712
|
|
89,683,515
|
|
90,682,896
|
|
89,718,385
|
Consolidated balance sheet
|
|
|
|
|
|
|
|
|
|
June 30, 2007
|
December 31, 2006
|
|
|
|
(in thousands of euros)
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
202,401
|
|
202,481
|
Accounts receivable
|
|
64,935
|
|
72,177
|
Inventories
|
|
1,070
|
|
1,118
|
Prepaid expenses and other current assets
|
|
7,274
|
|
6,075
|
TOTAL CURRENT ASSETS
|
|
275,680
|
|
281,851
|
|
|
|
|
|
|
Non current assets
|
|
|
|
|
|
|
|
|
|
|
Investment at fair value
|
|
5,417
|
|
4,138
|
|
|
|
|
|
|
Tangible fixed assets
|
|
|
|
|
- property, plant and equipment
|
|
20,344
|
|
18,681
|
|
|
|
|
|
|
Intangible assets
|
|
|
|
|
- databases and tools
|
|
200,025
|
|
216,502
|
- goodwill
|
|
20,120
|
|
20,471
|
- other
|
|
9,204
|
|
10,057
|
Total intangible fixed assets
|
|
229,349
|
|
247,030
|
|
|
|
|
|
|
Deferred tax
|
|
15,250
|
|
15,170
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL NON-CURRENT ASSETS
|
|
270,360
|
|
285,019
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
546,040
|
|
566,870
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY AND LIABILITIES
|
|
June 30, 2007
|
December 31, 2006
|
|
|
|
(In thousands of euros)
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
Trade accounts payable
|
|
13,982
|
|
18,110
|
Income tax payable
|
|
5,678
|
|
6,654
|
Accrued expenses and other liabilities
|
|
32,584
|
|
46,514
|
Deferred revenues
|
|
5,578
|
|
5,373
|
TOTAL CURRENT LIABILITIES
|
|
57,822
|
|
76,651
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
|
|
|
|
Deferred taxes
|
|
14,792
|
|
16,322
|
Pension accrual
|
|
5,697
|
|
5,314
|
Other non-current liabilities
|
|
1,033
|
|
1,113
|
TOTAL NON-CURRENT LIABILITIES
|
|
21,522
|
|
22,749
|
|
|
|
|
|
|
Shareholders’ equity
|
|
|
|
|
|
|
|
|
|
|
Ordinary shares, at par €0.10
|
|
9,076
|
|
9,037
|
Additional paid in capital
|
|
624,509
|
|
622,367
|
Foreign currency adjustment, net of recognition of deferred tax
|
|
(35,108)
|
|
(32,460)
|
Accumulated result (deficit)
|
|
(122,421)
|
|
(112,845)
|
Result (loss) current year
|
|
(9,637)
|
|
(18,951)
|
|
|
|
|
|
|
TOTAL EQUITY ATTRIBUTABLE TO EQUITY OF HOLDERS OF THE PARENT
|
|
466,419
|
|
467,148
|
|
|
|
|
|
|
Minority interest
|
|
277
|
|
322
|
|
|
|
|
|
|
TOTAL EQUITY
|
|
466,696
|
|
467,470
|
|
|
|
|
|
|
Total equity and liabilities
|
|
546,040
|
|
566,870
|
|
|
|
|
|
|
Consolidated statements of cash flows
|
|
|
|
|
|
|
|
|
|
|
|
6 months ended June 30,
|
|
3 months ended June 30,
|
|
|
|
2007
|
|
2006
|
|
2007
|
|
2006
|
|
|
|
( in thousands of euros)
|
Cash flow from operating activities
|
|
|
|
|
|
|
|
|
Operating results
|
|
(11,623)
|
|
(18,669)
|
|
(1,471)
|
|
(7,712)
|
Depreciation and amortization
|
|
26,374
|
|
24,845
|
|
13,479
|
|
12,306
|
Share based compensation credited to equity
|
|
9,375
|
|
10,079
|
|
4,153
|
|
5,262
|
Change in non-current liabilities
|
|
303
|
|
731
|
|
163
|
|
578
|
Change in net working capital and other changes
|
|
(11,475)
|
|
(20,704)
|
|
(13,026)
|
|
(14,039)
|
Interest received
|
|
3,591
|
|
1,839
|
|
1,688
|
|
1,125
|
Interest paid
|
|
(100)
|
|
(228)
|
|
105
|
|
(184)
|
Tax paid
|
|
(5,501)
|
|
(100)
|
|
(3,790)
|
|
(13)
|
Net cash from operating activities
|
|
10,944
|
|
(2,207)
|
|
1,301
|
|
(2,677)
|
|
|
|
|
|
|
|
|
|
|
Cash flow from investing activities
|
|
|
|
|
|
|
|
|
Investments in subsidiaries and loans to affiliates
|
|
-
|
|
(6,001)
|
|
-
|
|
(2,454)
|
Purchase of databases
|
|
-
|
|
(1,807)
|
|
-
|
|
-
|
Purchase of property and equipment
|
|
(6,065)
|
|
(4,676)
|
|
(2,435)
|
|
(2,788)
|
Capitalization of database and tools
|
|
(6,843)
|
|
(4,643)
|
|
(3,997)
|
|
(2,543)
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
(12,908)
|
|
(17,127)
|
|
(6,432)
|
|
(7,785)
|
|
|
|
|
|
|
|
|
|
|
Cash flow from financing activities
|
|
|
|
|
|
|
|
|
Issue of ordinary shares, net of expenses
|
|
-
|
|
(2,907)
|
|
-
|
|
(4)
|
Exercise of stock options
|
|
1,884
|
|
1,072
|
|
1,244
|
|
743
|
|
|
|
|
|
|
|
|
|
|
Net cash from (used in) financing activities
|
|
1,884
|
|
(1,835)
|
|
1,244
|
|
739
|
|
|
|
|
|
|
|
|
|
|
Total increase (decrease) in cash and cash equivalents
|
|
(80)
|
|
(21,169)
|
|
(3,887)
|
|
(9,723)
|
Cash and cash equivalents at the beginning of the period
|
|
202,481
|
|
200,795
|
|
206,288
|
|
189,349
|
Cash and cash equivalents at the end of the period
|
|
202,401
|
|
179,626
|
|
202,401
|
|
179,626
|
Consolidated statement of changes in shareholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total attributable to ordinary equity holders of the parent
|
|
|
Issued
ordinary
shares
|
|
Additional paid - in capital
|
|
Other
reserves
|
|
Accumu-
lated deficit and result
|
|
Total
|
|
Minority interest
|
|
Total
|
(in thousands of euros)
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of January 1, 2007
|
9,037
|
|
622,367
|
|
(32,460)
|
|
(131,796)
|
|
467,148
|
|
322
|
|
467,470
|
Foreign currency adjustment
|
-
|
|
-
|
|
(2,628)
|
|
-
|
|
(2,628)
|
|
(2)
|
|
(2,630)
|
Tax on currency adjustments and effect of changes in tax rates
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Total income for the year recognized in equity
|
-
|
|
-
|
|
(2,628)
|
|
-
|
|
(2,628)
|
|
(2)
|
|
(2,630)
|
Net result for the period
|
-
|
|
-
|
|
-
|
|
(9,637)
|
|
(9,637)
|
|
(43)
|
|
(9,680)
|
Total income for the period
|
-
|
|
-
|
|
(2,628)
|
|
(9,637)
|
|
(12,265)
|
|
(45)
|
|
(12,310)
|
Exercise of options
|
39
|
|
2,142
|
|
-
|
|
-
|
|
2,181
|
|
-
|
|
2,181
|
Share based compensation
|
-
|
|
-
|
|
-
|
|
9,375
|
|
9,375
|
|
-
|
|
9,375
|
Tax on items charged or credited to equity
|
-
|
|
-
|
|
(20)
|
|
-
|
|
(20)
|
|
-
|
|
(20)
|
Balance as of June 30, 2007
|
9,076
|
|
624,509
|
|
(35,108)
|
|
(132,058)
|
|
466,419
|
|
277
|
|
466,696
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total attributable to ordinary equity holders of the parent
|
|
|
Issued
ordinary
shares
|
|
Additional paid - in capital
|
|
Other
reserves
|
|
Accumulated deficit and result
|
|
Total
|
|
Minority interest
|
|
Total
|
(in thousands of euros)
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of January 1, 2006
|
8,962
|
|
617,844
|
|
(16,234)
|
|
(134,752)
|
|
475,820
|
|
-
|
|
475,820
|
Foreign currency adjustment
|
-
|
|
-
|
|
(9,662)
|
|
-
|
|
(9,662)
|
|
-
|
|
(9,662)
|
Tax on currency adjustments and effect of changes in tax rates
|
-
|
|
-
|
|
(5,080)
|
|
-
|
|
(5,080)
|
|
-
|
|
(5,080)
|
Total income for the year recognized in equity
|
-
|
|
-
|
|
(14,742)
|
|
-
|
|
(14,742)
|
|
-
|
|
(14,742)
|
Net result for the period
|
-
|
|
-
|
|
-
|
|
(6,504)
|
|
(6,504)
|
|
-
|
|
(6,504)
|
Total income for the period
|
-
|
|
-
|
|
(14,742)
|
|
(6,504)
|
|
(21,246)
|
|
-
|
|
(21,246)
|
Exercise of options
|
13
|
|
1,059
|
|
-
|
|
-
|
|
1,072
|
|
-
|
|
1,072
|
Cost offering 2005
|
-
|
|
12
|
|
-
|
|
-
|
|
12
|
|
-
|
|
12
|
Share based compensation
|
-
|
|
-
|
|
-
|
|
10,079
|
|
10,079
|
|
-
|
|
10,079
|
Tax on items charged or credited to equity
|
-
|
|
-
|
|
(569)
|
|
-
|
|
(569)
|
|
-
|
|
(569)
|
Balance as of June 30, 2006
|
8,975
|
|
618,915
|
|
(31,545)
|
|
(131,177)
|
|
465,168
|
|
|
|
465,168
|
These interim financial statements have been drawn up in compliance with International Accounting Standard 34. The accounting policies and methods of computation are consistent with those used for drawing up the financial statements as at December 31, 2006, except for the changes in segment reporting which are explained under Note 1. There have been no significant new accounting pronouncements
The following changes were made with respect to the presentation of certain financial information starting January 1, 2007. Comparative information for 2006 has been restated consistently.
• Previously the Company reported two segments (Europe and North America) and allocated corporate costs to these two segments. Beginning 2007 the Company is reporting in three regional segments and a corporate segment. Corporate costs are no longer allocated to other segments. The EMEA segment includes Europe, Middle East and Africa. The Americas segment includes the USA, Canada, Mexico and South America. The APAC segment includes Asia and Australia. The Corporate segment includes all corporate technology, marketing and other support activities. Revenues are initially allocated to the operating segments, based on the geography of the map data. Subsequently, intra- company commissions are used between operating segments to reflect costs of the customer and technical support.
• Previously expenses related to co-marketing activities were presented in the statement of operations as part of cost of revenue. Starting 2007 these expenses are reported as part of operating expenses. The impact of this restatement was a reduction of cost of revenue for the second quarter of €2.7 million (2006: €1.4 million) and a similar increase in other operating expense.
• Capitalized databases and tools were previously presented in the statement of cash flows as a reduction to net cash from operating activities. Starting 2007 these items are reflected as a cash outflow from investing activities. Capitalized databases and tools for the second quarter of 2007 were €4.0 million (2006: €2.5 million).
1. Segment information
As noted above Tele Atlas’ reports in three geographical segments plus a corporate segment. The following table provides the key financial results by segment for the three months ended March 2007 and March 2006.
(In thousands of euros)
|
|
|
|
|
|
|
|
Six months ended
|
|
|
|
|
|
Corporate
|
|
Net Revenues
|
97,543
|
34,758
|
4,530
|
-
|
136,831
|
|
|
|
|
|
|
|
Adjusted EBITDA1
|
45,900
|
4,892
|
(2,102)
|
(31,407)
|
17,283
|
Share based compensation expense
|
|
|
|
|
(9,375)
|
Depreciation and amortization
|
|
|
|
|
(26,374)
|
Capitalized databases and tools
|
|
|
|
|
6,843
|
Operating result (loss)
|
|
|
|
|
(11,623)
|
Financial income, net
|
|
|
|
|
3,579
|
Share in result of associate
|
|
|
|
|
|
Net result on re-measurement of investment at fair value
|
|
|
|
|
1,279
|
Result (loss) before income taxes
|
|
|
|
|
(6,765)
|
Income tax
|
|
|
|
|
(2,915)
|
Net result (loss)
|
|
|
|
|
(9,680)
|
|
|
|
|
|
|
|
|
Six months ended
|
|
|
|
|
|
Corporate
|
|
Net Revenues
|
83,159
|
31,547
|
1,789
|
-
|
116,495
|
|
|
|
|
|
|
|
Adjusted EBITDA1
|
35,311
|
2,526
|
(1,637)
|
(24,588)
|
11,612
|
Share based compensation expense
|
|
|
|
|
(10,079)
|
Depreciation and amortization
|
|
|
|
|
(24,845)
|
Capitalized databases and tools
|
|
|
|
|
4,643
|
Operating result (loss)
|
|
|
|
|
(18,669)
|
Financial income, net
|
|
|
|
|
2,111
|
Share in result of associate
|
|
|
|
|
(63)
|
Net result on re-measurement of investment at fair value
|
|
|
|
|
(465)
|
Result (loss) before income taxes
|
|
|
|
|
(17,086)
|
Income tax
|
|
|
|
|
10,582
|
Net result (loss)
|
|
|
|
|
(6,504)
|
1 Adjusted EBITDA is the operating result before capitalization, depreciation and amortization and before costs related to IFRS 2 Share-based Payments. The company uses Adjusted EBITDA to measure performance.
Revenues per product segment1
(In thousands of euros)
|
|
|
|
|
|
|
|
|
|
|
3 months ended
June 30, 2007
|
3 months ended
June 30, 2006
|
|
|
EMEA
|
Americas
|
APAC
|
Total
|
EMEA
|
Americas
|
APAC
|
Total
|
Automotive navigation
|
8,229
|
2,413
|
541
|
11,183
|
9,571
|
2,801
|
676
|
13,048
|
Data products navigation
|
6,042
|
168
|
77
|
6,287
|
6,311
|
51
|
8
|
6,370
|
Personal navigation
|
32,946
|
5,987
|
7
|
38,940
|
22,999
|
2,542
|
22
|
25,563
|
Enterprise and government
|
2,882
|
8,122
|
-
|
11,004
|
2,755
|
8,826
|
435
|
12,016
|
Other segments
|
2,319
|
2,345
|
724
|
5,388
|
1,855
|
1,128
|
-
|
2,983
|
|
|
52,418
|
19,035
|
1,349
|
72,802
|
43,491
|
15,348
|
1,141
|
59,980
|
Intra-company Commissions
|
722
|
(2,314)
|
1,592
|
-
|
463
|
(463)
|
-
|
-
|
Net Revenue Total
|
53,140
|
16,721
|
2,941
|
72,802
|
43,954
|
14,885
|
1,141
|
59,980
|
|
|
|
|
|
|
|
|
|
|
|
|
6 months ended
June 30, 2007
|
6 months ended
June 30, 2006
|
|
|
EMEA
|
Americas
|
APAC
|
Total
|
EMEA
|
Americas
|
APAC
|
Total
|
Automotive navigation
|
16,499
|
5,187
|
1,026
|
22,712
|
20,054
|
4,434
|
1,132
|
25,620
|
Data products navigation
|
10,290
|
214
|
119
|
10,623
|
12,071
|
152
|
8
|
12,231
|
Personal navigation
|
60,176
|
10,989
|
22
|
71,187
|
41,558
|
4,461
|
163
|
46,182
|
Enterprise and government
|
4,939
|
17,493
|
-
|
22,432
|
5,449
|
19,390
|
475
|
25,314
|
Other segments
|
4,376
|
4,777
|
724
|
9,877
|
3,468
|
3,680
|
-
|
7,148
|
|
|
96,280
|
38,660
|
1,891
|
136,831
|
82,600
|
32,117
|
1,778
|
116,495
|
Intra-company Commissions
|
1,263
|
(3,902)
|
2,639
|
-
|
559
|
(570)
|
11
|
-
|
Net Revenue Total
|
97,543
|
34,758
|
4,530
|
136,831
|
83,159
|
31,547
|
1,789
|
116,495
|
1 Segment revenues reflect revenues by database area. Intra-company commissions are for customer and technical support between areas.
During the three months ended June 30, 2007, TomTom and Mitac represented 28% and 12% of the Company’s total revenue respectively. For the six months ended June 30, 2007, TomTom and Mitac represented 29% and 13% of the Company’s total revenue respectively.
2. Stock options
The following table summarizes movements in stock options during the period:
Total stock options per January 1, 2007
|
|
7,708,783
|
Granted options
|
|
439,500
|
Exercised options
|
|
(388,330)
|
Forfeited options
|
|
(203,550)
|
Total stock options per June 30, 2007
|
|
7,556,403
|
The total number of vested options per June 30, 2007 was 3,613,120 (December 31, 2007: 3,035,143).
The Supervisory Board members and the Statutory Directors of Tele Atlas N.V. held the following number of shares and vested share options in Tele Atlas N.V. as of June 30, 2007
Statutory Directors Tele Atlas NV
|
Shares
|
|
|
|
Vested
Options
|
|
Alain De Taeye
|
28,369
|
|
|
|
562,500
|
|
George Fink
|
-
|
|
|
|
387,500
|
|
|
Supervisory Board
|
Shares
|
|
|
|
Vested
Options
|
|
Wim Dik
|
300
|
|
|
|
2,500
|
|
Bandel Carano
|
-
|
|
|
|
15,000
|
|
Charles Cotton
|
-
|
|
|
|
20,000
|
|
Ben Hollingsworth
|
-
|
|
|
|
-
|
|
Stephan Rojahn
|
-
|
|
|
|
5,000
|
|
George Schmitt
|
-
|
|
|
|
30,000
|
|
Joost Tjaden
|
8,563
|
|
|
|
15,000
|
|
Annex to the Interim Financial Statements
As discussed in note 0 to the interim financials statements, certain changes were made to the presentation of financial information starting January 1, 2007. Comparative 2006 financial information was restated consistently. The table below summarizes restated key figures per quarter by operating segment.
(In thousands of euros)
|
|
|
|
|
|
|
|
|
|
|
2006
|
|
Company
|
|
|
Sept 30
|
Dec 31
|
Full Year
|
|
|
Revenue
|
56,515
|
59,980
|
64,985
|
82,827
|
264,307
|
64,029
|
72,802
|
Cost of Revenue
|
6,339
|
6,228
|
5,990
|
7,116
|
25,673
|
6,433
|
6,415
|
Operating Expense
|
45,877
|
46,439
|
47,848
|
54,709
|
194,873
|
52,477
|
54,223
|
Adjusted EBITDA
|
4,299
|
7,313
|
11,147
|
21,002
|
43,761
|
5,119
|
12,164
|
|
|
|
|
|
|
|
|
|
|
|
2006
|
|
EMEA
|
|
June 30
|
Sept 30
|
Dec 31
|
Full Year
|
|
|
Net Revenue
|
39,205
|
43,954
|
49,246
|
60,550
|
192,955
|
44,403
|
53,140
|
Cost of Revenue
|
5,751
|
5,409
|
4,710
|
5,225
|
21,095
|
4,769
|
5,097
|
Operating Expense
|
18,154
|
18,534
|
18,528
|
21,322
|
76,538
|
19,724
|
22,053
|
Adjusted EBITDA
|
15,300
|
20,011
|
26,008
|
34,003
|
95,322
|
19,910
|
25,990
|
|
|
|
|
|
|
|
|
|
|
|
2006
|
|
Americas
|
|
|
Sept 30
|
Dec 31
|
Full Year
|
|
|
Net Revenue
|
16,662
|
14,885
|
14,792
|
19,814
|
66,153
|
18,037
|
16,721
|
Cost of Revenue
|
350
|
637
|
876
|
1,673
|
3,536
|
1,326
|
1,001
|
Operating Expense
|
14,197
|
13,837
|
13,272
|
14,842
|
56,148
|
13,784
|
13,755
|
Adjusted EBITDA
|
2,115
|
411
|
644
|
3,299
|
6,469
|
2,927
|
1,965
|
|
|
|
|
|
|
|
|
|
|
|
2006
|
|
APAC
|
|
|
Sept 30
|
Dec 31
|
Full Year
|
|
|
Net Revenue
|
648
|
1,141
|
947
|
2,463
|
5,199
|
1,589
|
2,941
|
Cost of Revenue
|
238
|
182
|
404
|
218
|
1,042
|
338
|
317
|
Operating Expense
|
1,060
|
1,946
|
2,465
|
2,645
|
8,116
|
3,530
|
2,447
|
Adjusted EBITDA
|
(650)
|
(987)
|
(1,922)
|
(400)
|
(3,959)
|
(2,279)
|
177
|
|
|