TELE ATLAS 
By
Tele Atlas Reports First Quarter Revenue of ?58.8 million
's-Hertogenbosch, The Netherlands, April 29, 2008 - 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 first quarter of 2008.
* Revenues decreased 8% over the same period last year to ?58.8
million (Q1 2007: ?64.0 million). After adjusting for effects of
changes in exchange rates, revenues decreased by 4%.
* Portable navigation revenues in Americas increased 52% over the
same quarter in 2007. Overall, portable navigation revenues
decreased 17% over the same quarter in 2007.
* Adjusted EBITDA decreased 103% over the same period in the prior
year to ?-0.2 million (Q1 2007: ?5.1 million).
* A net loss of ?14.5 million including the impact of ?2.1 million
costs related to the proposed TomTom transaction was reported
compared to a loss of ?8.4 million during the same quarter last
year.
Key Figures
+-------------------------------------------------------------------+
| In millions of Euros, except | | | |
| otherwise noted | Q1 2008 | Q1 2007 | % Change |
|------------------------------------+---------+---------+----------|
| Revenues | 58.8 | 64.0 | (8%) |
|------------------------------------+---------+---------+----------|
| Adjusted EBITDA[1] | (0.2) | 5.1 | (104%) |
|------------------------------------+---------+---------+----------|
| Operating result (EBIT) | (16.6) | (10.2) | (63%) |
|------------------------------------+---------+---------+----------|
| Net result | (14.5) | (8.4) | (73%) |
|------------------------------------+---------+---------+----------|
| Average number of employees | 1,944 | 1,612 | 21% |
|------------------------------------+---------+---------+----------|
| Earnings per share (in ?) | (0.16) | (0.09) | (78%) |
+-------------------------------------------------------------------+
[1] Adjusted EBITDA is the operating result before capitalization,
depreciation and amortization, costs related to Share-based Payments
and before transaction costs related to the proposed TomTom
transaction.
Alain De Taeye, Chief Executive Officer, said: "Although lower
revenues from our customers active in the European portable
navigation market and unfavorable exchange rate changes resulted in
overall lower revenues, the North American market for portable
navigation solutions continued to grow at a fast pace. If the pending
TomTom transaction closes, which is, inter alia, subject to obtaining
approval from the European Commission, we expect to be in a good
position to rapidly introduce a broad range of new products in
response to growing market demands."
Financial Highlights
Revenues
Tele Atlas' revenues for the first quarter of 2008 decreased 8% to
?58.8 million compared to ?64.0 million in the same period last year.
Revenues decreased 4%, after adjusting for a ?2.4 million effect of
currency exchange rate changes. EMEA (Europe, Middle East and Africa)
revenues for the quarter decreased 15% over the prior year to ?37.7
million, mainly as a result of reductions in inventory levels by our
customers' customers and lower per unit prices. Americas revenues for
the first quarter decreased 3% from the prior year to ?17.5 million,
primarily due to changes in the currency exchange rate. Americas
revenues grew 10% after adjusting for the effect of currency exchange
rates changes. Asia Pacific (APAC) revenues for the quarter increased
128% over the prior year to ?3.6 million.
Revenues Per Segment[1]
(In thousands of Euros)
+-----------------------------------------------------------------------------------------+
| | 3 months ended | 3 months ended |
| | March 31, 2008 | March 31, 2007 |
|---------------+------------------------------------+------------------------------------|
| | EMEA | Americas | APAC | Total | EMEA | Americas | APAC | Total |
|---------------+--------+----------+-------+--------+--------+----------+-------+--------|
|Portable | | | | | | | | |
|navigation | 18,562| 7,615| 500| 26,677| 27,230| 5,002| 15| 32,247|
|---------------+--------+----------+-------+--------+--------+----------+-------+--------|
|Automotive | | | | | | | | |
|navigation | 7,429| 2,817| 584| 10,830| 8,270| 2,774| 485| 11,529|
|---------------+--------+----------+-------+--------+--------+----------+-------+--------|
|Data products | | | | | | | | |
|navigation | 3,462| -| 216| 3,678| 4,248| 46| 42| 4,336|
|---------------+--------+----------+-------+--------+--------+----------+-------+--------|
|Enterprise and | | | | | | | | |
|government | 2,403| 7,487| -| 9,890| 2,057| 9,371| -| 11,428|
|---------------+--------+----------+-------+--------+--------+----------+-------+--------|
|Other segments | 4,340| 2,116| 1,238| 7,694| 2,057| 2,432| -| 4,489|
|---------------+--------+----------+-------+--------+--------+----------+-------+--------|
| | 36,196| 20,035| 2,538| 58,769| 43,862| 19,625| 542| 64,029|
|---------------+--------+----------+-------+--------+--------+----------+-------+--------|
|Intra-company | | | | | | | | |
|Commissions | 1,477| (2,568)| 1,091| -| 541| (1,588)| 1,047| -|
|---------------+--------+----------+-------+--------+--------+----------+-------+--------|
|Net Revenue | | | | | | | | |
|Total | 37,673| 17,467| 3,629| 58,769| 44,403| 18,037| 1,589| 64,029|
+-----------------------------------------------------------------------------------------+
[1] Segment revenues reflect revenues by database area.
Intra-company commissions are for customer and technical support
among areas.
Portable Navigation
During the first quarter of 2008, worldwide revenues in the portable
navigation segment decreased by 17% over the same period in the prior
year to ?26.7 million. Revenues in the segment declined 14% after
adjusting for a ?1.1 million effect of currency exchange rate
changes. First quarter segment revenues in 2008 reflect map license
fees from the sale of 2.9 million portable navigation units during
the quarter as compared to 2.3 million units in the same period
during the previous year. EMEA portable navigation revenues for the
quarter were ?18.6 million, a decrease of 32% over the same period
last year. Americas portable navigation revenues were ?7.6 million,
an increase of 52% over the same period last year (a 73% increase,
excluding exchange rate effect). The difference between portable
navigation unit and revenue growth rates resulted from lower average
map prices as compared to the same period in 2007.
Automotive Navigation
Revenues in the automotive segment for the quarter decreased 6% from
the same quarter the prior year to ?10.8 million. After adjusting for
the effects of changes in currency exchange rate, revenues decreased
by 3%. Worldwide, the number of map licenses sold by Tele Atlas in
the automotive segment remained flat at 0.5 million units, compared
to the same period last year. EMEA revenues in this segment was ?7.4
million, a 10% decrease from the same period in the prior year. This
change was primarily the result of the loss of the VW midline
business by one of our customers. Americas automotive navigation
revenues increased by 2% to ?2.8 million. After adjustment for the
effects of changes in exchange rates, the increase in Americas
automotive revenue was 16%.
Data Products Navigation
First quarter worldwide revenues from navigation data products, a
segment that today exists primarily in EMEA, decreased by 15% to ?3.7
million compared to ?4.3 million the same period last year due to the
continued decrease in the installed base of CD-based automotive
navigation systems.
Enterprise and Government
First quarter worldwide revenues from the enterprise and government
sectors decreased 13% to ?9.9 million from ?11.4 million during the
same period last year. Revenues decreased 4% after adjusting for a
?1.0 million effect of currency exchange rate changes. Americas
revenues in this segment decreased by 20% to ?7.5 million compared to
last year (a 9% decrease, excluding exchange rate effects). EMEA
revenues in this segment was ?2.4 million compared to ?2.1 million in
the same quarter last year. We expect that the decline in sales
caused by timing differences in revenues recognition will be made up
throughout the remainder of 2008.
Other Segments
Revenues in the other segments, consisting of consumer wireless and
Internet segments, increased by 71% to ?7.7 million compared to ?4.5
million during the same period last year, principally as a result of
strong growth in the consumer wireless segment in the EMEA region.
Operating Expenses
Operating expenses excluding cost of revenues, depreciation,
amortization, merger transaction costs, capitalization and employee
stock option expense ("Adjusted Operating Expenses"), increased by 2%
to ?53.7 million for the first quarter of 2007 from ?52.5 million in
the same period in 2007. Excluding the effect of changes in exchange
rates, Adjusted Operating Expenses increased by 8% largely due to
primarily an increase in cost of personnel and outsourcing costs.
Cost of revenues decreased by 19% to ?5.2 million in the first
quarter from ?6.4 million in the first quarter of 2007.
Including employee stock option expense, personnel expenses in the
first quarter of 2008 were ?33.6 million, a 5% decrease compared to
the same period last year. Expense related to share based payments in
the first quarter of 2008 was ?2.7 million compared to ?5.2 million
during the same period in 2007, due to the reduced number of stock
option grants. Excluding employee stock option expense, personnel
expenses in the first quarter of 2008 increased by 2% to ?30.9
million, from ?30.1 million in 2007 as a result of an increased
number of employees, including temporary personnel. The increased
number of employees is partly due to the acquisition activity in
Taiwan, Thailand and South Africa and demands associated with the
Company's growing business. Adjusted for the effect of changes in
exchange rates, personnel expenses for the quarter, excluding
employee stock option expense, increased by 8% year over year.
Other operating expenses during the quarter, excluding transaction
costs in the quarter related to the proposed acquisition of the
Company by TomTom N.V., increased by 2% to ?22.9 million from ?22.3
million in the same period during 2007. Excluding the effect of
changes in exchange rates, other operating expenses increased 6%. The
Company incurred higher outsourcing costs and increases in other
costs. These increases were partially offset by lower costs for bad
debts. Transaction costs related to the proposed acquisition by
TomTom are excluded from the calculation of Adjusted EBITDA.
Net Result
Earnings before interest, taxes, depreciation, amortization, share
based payments and capitalization of database and tool development
costs and before transaction costs related to the proposed TomTom
transaction (Adjusted EBITDA) for the first quarter of 2008 decreased
by 103% to a loss of ?0.2 million from a profit of ?5.1 million for
the same period last year. Adjusted EBITDA for the EMEA region
decreased 32% to ?13.6 million for the first quarter of 2008 compared
to ?19.9 million for the first quarter of 2007 as a result of
decreased sales revenues. Adjusted EBITDA for the Americas decreased
to ?2.2 million in the first quarter of 2008 from ?2.9 million in the
same quarter during 2007. First quarter 2008 Adjusted EBITDA for APAC
was break even versus a loss of ?2.3 million in the same quarter in
2007. In addition, our corporate segment which includes all corporate
technology, marketing and other support activities incurred costs of
?15.9 million, as compared to costs of ?15.4 million in the same
quarter in 2007.
The consolidated operating result (EBIT) for the first quarter
decreased by 63% over the same period last year to a loss of ?16.6
million, as a result of lower Adjusted EBITDA. Depreciation and
amortization charges increased by 15% as a result of the costs of
amortization of databases and other assets acquired through
transactions in Taiwan, Thailand and South Africa.
Net financial income, including interest paid and received, along
with other financing charges, amounted to a gain of ?2.3 million
during the first quarter of 2008, compared to ?1.6 million in the
same period of last year.
Tax income for the quarter was ?0.3 million as compared to a charge
of ?0.5 million in the first quarter of 2008.
Tele Atlas' consolidated after tax net loss during the first quarter
of 2008 was ?14.5 million, compared with a net loss of ?8.4 million
for the same period in 2007.
Cash Flow
Overall cash flow from operating activities for the first quarter of
2008 increased to an inflow of ?23.1 million as compared to ?9.6
million during the same period during 2007 primarily as a result of
changes in working capital.
Cash outflow from investing activities, which included investments in
tangible fixed assets of ?1.2 million and capitalized databases and
tools of ?3.3 million, decreased from ?6.5 million in the first
quarter of 2007 to ?6.2 million in the same period in 2008.
Personnel
As of March 31, 2008 Tele Atlas employed 1,944 full time employees
worldwide (December 31, 2007: 1,889).
First Quarter Operational Highlights
Portable Navigation
ASUSTek Computer Inc. (ASUS), Taiwan-based producer of high quality
handhelds, announced that it will launch its new navigation solutions
for portable navigation devices, GPS phones and portable PCs based on
Tele Atlas digital maps. The new ASUS portable navigation devices and
GPS-enabled smartphones will feature Tele Atlas digital maps for
Europe; with additional devices planned to feature Tele Atlas maps
and content for Greater China and the United States.
AvMap, an Italian GPS company, presented the new Geosat 6 TV. Geosat
6 TV is a Do-It-All Portable Navigation Device (PND) featuring DVB-T
(Digital Video Broadcasting - Terrestrial) and DVB-H TV on the move,
connected navigation, a tri-band GSM phone and multimedia player
functions.
Tele Atlas is targeting the growing market for pedestrian services
with attributes designed to help mobile consumers better navigate,
route and explore the places they're visiting at home or abroad. At
Mobile World Congress Tele Atlas showed its first demo of maps based
on Tele Atlas data designed for pedestrians. Tele Atlas maps
featuring pedestrian-specific attributes are available for 18
countries (Austria, Belgium, Czech Republic, Denmark, Finland,
France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands,
Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom).
This includes pedestrian attributes for 117 cities across Europe,
with an average of 80km of paths and roadways in each city centre to
help pedestrians get to their destination via the shortest accessible
route possible.
Tele Atlas showcased its 3D (three dimensional) digital maps and
content at the Consumer Electronics Show 2008 (CES). Demonstrating
continued commitment to innovation in display enhancements worldwide,
the company will make available the first Tele Atlas® 3D City Maps
for North America for use in navigation systems and location-based
applications in the second quarter of 2008.
Automotive Navigation
In the first quarter, Tele Atlas won several projects for truck
specific navigation systems which will launch later in 2008 using our
European MultiNet Logistics database. In addition, Tele Atlas was
awarded a project to supply South East Asia data to a large German
car manufacturer via one of Tele Atlas' In-Vehicle Navigation
Partners as well as a project to supply China data to a Chinese car
manufacturer. Both these projects are via one of our in-vehicle
navigation partners.
Enterprise and Government
Tele Atlas announced that it will provide its digital map data to
help power the distribution of Valassis' broad portfolio of direct
mail, electronic, door-to-door and newspaper marketing services.
Through the agreement, Valassis will leverage the Tele Atlas®
MultiNet digital map platform for its RedPlum portfolio of products
based on custom carrier route boundary solutions. RedPlum's products
reach over 100 million households each week. In addition, Valassis
also will begin providing custom Carrier Route Boundaries based on
Tele Atlas digital maps.
Tele Atlas intends to expand coverage of Tele Atlas MultiNet for
Oracle® Database 11g, with North America map data of the United
States and Canada, demonstrating the company's commitment to the
Oracle community. MultiNet for Oracle Spatial 11g is designed to
allow Tele Atlas partners to incorporate the extensive suite of
Oracle spatial capabilities into their applications and to speed
application deployment with prebuilt routing and geocoding
functionality. In combination with the location features in Oracle
Database 11g, a wide range of applications can be deployed using
MultiNet digital map data, ranging from automated mapping/facilities
management and geographic information systems (GIS), to wireless
location services and location-enabled Business Intelligence.
Tele Atlas announced an agreement whereby the United States
Geological Survey (USGS) will leverage Tele Atlas digital map data to
help develop internal USGS mapping operations solutions and for use
within the USGS Web Locator application for the display of maps and
geocoded addresses. Through the agreement, the USGS will deliver
Web-based 1:24,000-scale maps containing the U.S. National Grid in
conjunction with Tele Atlas map data, to support the efforts of the
USGS serving the emergency and first responder communities.
Maponics, a nationwide map data and services provider, and Tele Atlas
announced an agreement whereby Maponics will use Tele Atlas digital
map data to support production of USPS ZIP Code and carrier route
boundaries. Using a proprietary data-intensive process that leverages
Tele Atlas digital street map data, Maponics is able to provide
direct marketers with clean carrier route boundaries that follow
roads.
Internet and Wireless
In the first quarter, Tele Atlas announced an agreement to extend its
relationship with Microsoft Corporation to power its mapping and
location platform services. Through the agreement, Microsoft products
Live Search Maps, Virtual Earth and Microsoft Streets & Trips will
rely on Tele Atlas digital maps and content, including points of
interest (POIs) such as hotels, gas stations and restaurants, for the
United States and Canada.
Update on acquisition by TomTom
Tele Atlas is looking forward to a positive outcome of the Phase II
review by the European Commission. As announced by the joint press
release of TomTom and Tele Atlas of 27 March 2008, a decision from
the European Commission is currently expected on 21 May 2008.
Allowing for additional days after the decision for the shareholders
of Tele Atlas to tender the shares that have not yet been tendered
under the Offer, TomTom has set the end of the tender period at 30
May 2008.
Full Year 2008 Outlook
At the time of this writing, the proposed purchase of Tele Atlas by
TomTom remains under review by the European Commission competition
authorities. We are not able at this time to assess the effect of the
proposed purchase on periods after the closing of the transaction.
The following guidance has been developed on the basis of Tele Atlas
as a standalone independent company.
With this assumption and based on the 2007 results and our current
expectations for 2008, we estimate revenues will grow to
approximately ?335 million during 2008 and Adjusted EBITDA will grow
to approximately ?70 million. This outlook has been reduced from our
previous guidance due to weakness in revenue from our customers
active in the European Portable navigation market.
This outlook includes the impact of the Taiwan, Thailand and South
Africa transactions which were concluded in 2007 and the Indian
transaction completed this year. All together, these transactions are
expected to increase 2008 revenues by ?6 million and increase 2008
Adjusted EBITDA by ?1 million
The Company's expenditures for property and equipment for 2008 are
expected to be approximately ?15 million and working capital
requirements for accounts receivables are expected to increase in
proportion to the expected increase in revenues.
This outlook excludes the impact of unforeseen circumstances, the
potential TomTom acquisition as well as the impact of any
acquisitions other than the ones discussed above.
Subsequent to 2008, our current expectation is that, barring
unforeseen circumstances, we can grow revenues in excess of 20% on an
annual basis for the next several years and that our Adjusted EBITDA
for each year will increase by approximately 50% of incremental
revenue.
For more information, please contact:
Jan Wirken
Investor Relations Manager, Tele Atlas NV
Phone: + 31 736 402 160
jan.wirken@teleatlas.com
Due to the pending transaction with TomTom, Tele Atlas will not host
a conference call relating to the first quarter results. A
presentation summarizing the results will be posted on the company's
web site.
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 (LBS). The information is the foundation for a wide range of
portable 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 deliver critical
applications for emergency, business, fleet, and infrastructure
services. Through a combination of its own products and partnerships,
Tele Atlas offers digital map coverage of more than 200 countries and
territories worldwide. The company was founded in 1984 and today has
approximately 2,500 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.
This press release includes an announcement of Tele Atlas pursuant to
the provisions of section 9b paragraph 1 of the Dutch Securities
Markets Supervision Decree 1995 (Besluit toezicht effectenverkeer
1995) in connection with the recommended public offer by TomTom for
all outstanding shares in the share capital of Tele Atlas (the
"Shares") (the "Offer"). This press release does not constitute an
offer to purchase nor a solicitation of an offer to sell shares. Any
offer will be made only by means of the Offer Memorandum dated
October 2, 2007 November 18, 2007 ("Offer Memorandum"). Not for
release, distribution or publication, in whole or in part to
Australia, Canada or Japan.
The Offer is not being made, and the Shares will not be accepted for
purchase from or on behalf of any Shareholder, in any jurisdiction in
which the making or acceptance thereof would not be in compliance
with the securities or other laws or regulations of such jurisdiction
or would require any registration, approval or filing with any
regulatory authority not expressly contemplated by the terms of this
Offer Memorandum. Persons obtaining the Offer Memorandum are required
to take due note and observe all such restrictions and obtain any
necessary authorisations, approvals or consents. Neither TomTom, nor
Tele Atlas, nor any of their advisers accepts any liability for any
violation by any person of any such restriction. Any person
(including, without limitation, custodians, nominees and trustees)
who would or otherwise intend to forward the Offer Memorandum or any
related document to any jurisdiction outside The Netherlands should
carefully read Section 1 (Restrictions and Important Information) of
the Offer Memorandum before taking any action. The distribution of
the Offer Memorandum in jurisdictions other than The Netherlands may
be restricted by law and therefore persons into whose possession the
Offer Memorandum comes should inform themselves about and observe
such restrictions. Any failure to comply with any such restrictions
may constitute a violation of the law of any such jurisdiction.
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 2007 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. There are no assurances that
any of the matters about which forward-looking statements are made
will occur. 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.
The press release can be downloaded from the following link:
http://hugin.info/136347/R/1214274/252834.pdf
Copyright © Hugin AS 2008. All rights reserved.TELE ATLAS : Reports First Quarter Results
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