At the end of Q4 '13 the carrying value of our outstanding borrowings was €173 million (Q4 '12: €247 million). The nominal amount of the outstanding borrowings excluding the transaction costs was €175 million (Q4 '12: €250 million).
Current liabilities excluding deferred revenue were €383 million compared to €398 million at the end of Q4 '12. The year on year decrease was mainly driven by lower provisions in 2013. Trade payables amounted to €82 million, €2 million lower compared to Q4 '12. Tax and social security liabilities amounted to €28 million compared to €33 million at the end of Q4 '12. This decrease is mainly due to a lower corporate income tax provision.
Deferred revenue for the quarter ended at €114 million (Q4 '12: €95 million). The main reason for the year on year increase is related to the increase of deferred revenue related to the lifetime maps content and lifetime traffic services bundled in our PND ranges.
At 31 December 2013 we had a net cash position of €83 million (Q4 '12: net debt of €86 million). Net cash is the sum of the cash and cash equivalents at the end of the period (€258 million) minus the outstanding gross borrowings (€175 million).
Cash flow
Cash flow from operating activities for the quarter was €51 million compared to €91 million in Q4 '12. The year on year decrease was mainly driven by lower results and higher working capital utilisation in Q4 '13.
On a full year basis, we generated strong cash flow from operating activities of €260 million compared to €167 million in 2012. Excluding the one-off €80 million refund from the Dutch tax authorities, our cash flow from operating activities was €180 million which represents an 8% increase year on year. The year on year increase is mainly attributed to strong working capital management.
The cash flow used in investing activities during the quarter increased by €7 million year on year to €21 million. On a full year basis the cash flow used in investing activities was €91 million, an increase of €40 million year on year. Maps continues to be our largest area of investment and we also saw increased activity in customer specific Automotive projects and in navigation software development.
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Consolidated condensed statement of income |
||||||||
| (€ in thousands) | Q4 '13 | Q4 '12 | FY '13 | FY '12 | ||||
| Revenue | 267,563 | 289,010 | 963,454 | 1,057,134 | ||||
| Cost of sales | 124,126 | 134,678 | 442,207 | 502,398 | ||||
| Gross result | 143,437 | 154,332 | 521,247 | 554,736 | ||||
| Research and development expenses | 43,324 | 45,257 | 165,408 | 166,315 | ||||
| Amortisation of technology and databases | 22,175 | 21,777 | 81,436 | 84,011 | ||||
| Marketing expenses | 27,882 | 14,238 | 62,577 | 57,305 | ||||
| Selling, general and administrative expenses | 45,288 | 46,698 | 178,300 | 169,716 | ||||
| Stock compensation expense | 535 | 1,723 | 7,980 | 7,140 | ||||
| Total operating expenses | 139,204 | 129,693 | 495,701 | 484,487 | ||||
| Operating result | 4,233 | 24,639 | 25,546 | 70,249 | ||||
| Interest result | -800 | -2,374 | -2,945 | -12,084 | ||||
| Other finance result | 317 | -290 | -1,619 | 1,642 | ||||
| Result of associates | 112 | 137 | 3,091 | 726 | ||||
| Result before tax | 3,862 | 22,112 | 24,073 | 60,533 | ||||
| Income tax | -637 | 77,403 | -4,010 | 68,660 | ||||
| Net result | 3,225 | 99,515 | 20,063 | 129,193 | ||||
| Net result attributable to: | ||||||||
| Equity holders of the parent | 3,255 | 99,112 | 19,539 | 128,724 | ||||
| Non-controlling interests | -30 | 403 | 524 | 469 | ||||
| Net result | 3,225 | 99,515 | 20,063 | 129,193 | ||||
| Basic number of shares (in thousands) | 222,061 | 221,895 | 221,950 | 221,895 | ||||
| Diluted number of shares (in thousands) | 224,994 | 222,316 | 223,307 | 222,024 | ||||
| EPS, € basic | 0.01 | 0.45 | 0.09 | 0.58 | ||||
| EPS, € diluted | 0.01 | 0.45 | 0.09 | 0.58 | ||||
|
Consolidated condensed balance sheet |
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| (€ in thousands) | 31 December 2013 | 31 December 2012 | ||
| Goodwill | 381,569 | 381,569 | ||
| Other intangible assets | 803,635 | 821,233 | ||
| Property, plant and equipment | 25,804 | 26,770 | ||
| Deferred tax assets | 9,681 | 13,610 | ||
| Investments in associates | 2,854 | 3,880 | ||
| Total non-current assets | 1,223,543 | 1,247,062 | ||
| Inventories | 42,260 | 44,383 | ||
| Trade receivables | 115,429 | 149,834 | ||
| Other receivables and prepayments | 38,121 | 118,262 | ||
| Other financial assets | 376 | 444 | ||
| Cash and cash equivalents | 257,785 | 164,459 | ||
| Total current assets | 453,971 | 477,382 | ||
| Total assets | 1,677,514 | 1,724,444 | ||
| Share capital | 44,435 | 44,379 | ||
| Share premium | 977,087 | 975,260 | ||
| Other reserves | 160,087 | 159,011 | ||
| Accumulated deficit | -329,463 | -342,875 | ||
| Equity attributable to equity holders of the parent | 852,146 | 835,775 | ||
| Non-controlling interests | 2,115 | 2,642 | ||
| Total equity | 854,261 | 838,417 | ||
| Borrowings | 99,348 | 173,437 | ||
| Deferred tax liability | 171,727 | 170,909 | ||
| Provisions | 55,857 | 48,268 | ||
| Deferred revenue | 38,300 | 18,130 | ||
| Total non-current liabilities | 365,232 | 410,744 | ||
| Borrowings | 74,089 | 73,703 | ||
| Trade payables | 82,337 | 84,162 | ||
| Tax and social security | 28,101 | 33,263 | ||
| Provisions | 23,975 | 33,192 | ||
| Deferred revenue | 75,516 | 77,126 | ||
| Other liabilities and accruals | 174,003 | 173,837 | ||
| Total current liabilities | 458,021 | 475,283 | ||
| Total equity and liabilities | 1,677,514 | 1,724,444 | ||
|
Consolidated condensed statements of cash flows |
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| (€ in thousands) | Q4 '13 | Q4 '12 | FY '13 | FY '12 | ||||
| Operating result | 4,233 | 24,639 | 25,546 | 70,249 | ||||
| Financial (losses) | -3,179 | -4,226 | -7,757 | -784 | ||||
| Depreciation and amortisation | 29,083 | 28,528 | 117,419 | 110,670 | ||||
| Change in provisions | 1,293 | -928 | -5,285 | -9,428 | ||||
| Equity-settled stock compensation expenses | -29 | 1,210 | 4,440 | 5,700 | ||||
| Changes in working capital: | ||||||||
| Change in inventories | 12,865 | 12,861 | 3,753 | 13,819 | ||||
| Change in receivables and prepayments | 21,557 | 33,058 | 33,059 | 47,660 | ||||
|
Change in liabilities (excl. Provisions) 4 |
-7,215 | 3,249 | 16,861 | -51,210 | ||||
| Cash flow from operations | 58,608 | 98,391 | 188,036 | 186,676 | ||||
| Interest received | 71 | 214 | 1,139 | 1,197 | ||||
| Interest paid | -749 | -3,466 | -2,863 | -9,908 | ||||
| Corporate income taxes (paid)/ received | -7,093 | -4,244 | 73,196 | -11,025 | ||||
| Cash flow from operating activities | 50,837 | 90,895 | 259,508 | 166,940 | ||||
| Investments in intangible assets | -15,380 | -11,075 | -68,414 | -42,990 | ||||
| Investments in property, plant and equipment | -5,898 | -3,519 | -16,184 | -9,311 | ||||
| Acquisition of subsidiary | 0 | 0 | -6,942 | 0 | ||||
| Dividend received | 35 | 40 | 1,036 | 1,487 | ||||
| Cash flow from investing activities | -21,243 | -14,554 | -90,504 | -50,814 | ||||
| Repayment of borrowings | 0 | -290,000 | -75,000 | -388,000 | ||||
| Proceeds of new term loan | 0 | 247,140 | 0 | 247,140 | ||||
| Redemption of vested equity instruments | 0 | -4,605 | 0 | -4,605 | ||||
| Dividends paid | -174 | -317 | -377 | -317 | ||||
| Proceeds on issue of ordinary shares | 1,351 | 0 | 1,508 | 0 | ||||
| Cash flow from financing activities | 1,177 | -47,782 | -73,869 | -145,782 | ||||
| Net increase/(decrease) in cash and cash equivalents | 30,771 | 28,559 | 95,135 | -29,656 | ||||
| Cash and cash equivalents at beginning of period | 227,538 | 136,528 | 164,459 | 193,579 | ||||
| Exchange rate effect on cash balances held in foreign currencies | -524 | -628 | -1,809 | 536 | ||||
| Cash and cash equivalents at end of period | 257,785 | 164,459 | 257,785 | 164,459 | ||||
