Garmin Reports First Quarter Revenue and Earnings Growth
Garmin, the Garmin logo, the Garmin delta, DeLorme, fēnix, GPSMAP and
vívofit are trademarks of Garmin Ltd. or its subsidiaries and are
registered in one or more countries, including the U.S.; Garmin Elevate
and QuickFit are trademarks of Garmin Ltd. or its subsidiaries. All
other brands, product names, company names, trademarks and service marks
are the properties of their respective owners. All rights reserved.
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Garmin Ltd. And Subsidiaries
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Condensed Consolidated Statements of Income (Unaudited)
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(In thousands, except per share information)
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13-Weeks Ended
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April 1,
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March 26,
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2017
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2016
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Net sales
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$
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638,546
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$
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624,040
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Cost of goods sold
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266,423
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284,190
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Gross profit
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372,123
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339,850
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Advertising expense
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31,525
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32,233
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Selling, general and administrative expense
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102,051
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95,610
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Research and development expense
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122,202
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108,204
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Total operating expense
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255,778
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236,047
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Operating income
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116,345
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103,803
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Other income (expense):
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Interest income
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8,444
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7,428
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Foreign currency losses
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(37,497
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)
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(4,839
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)
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Other income
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400
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1,155
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Total other income (expense)
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(28,653
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)
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3,744
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Income before income taxes
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87,692
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107,547
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Income tax (benefit) provision
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(150,120
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)
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19,455
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Net income
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$
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237,812
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$
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88,092
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Net income per share:
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Basic
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$
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1.26
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$
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0.46
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Diluted
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$
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1.26
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$
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0.46
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Weighted average common shares outstanding:
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Basic
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188,333
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189,497
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Diluted
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189,031
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189,651
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Garmin Ltd. And Subsidiaries
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Condensed Consolidated Balance Sheets
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(In thousands, except per share information)
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(Unaudited)
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April 1,
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December 31,
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2017
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2016
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Assets
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Current assets:
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Cash and cash equivalents
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$
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833,577
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$
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846,883
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Marketable securities
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258,400
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266,952
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Accounts receivable, net
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391,345
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527,062
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Inventories, net
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533,151
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484,821
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Deferred costs
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46,124
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47,395
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Prepaid expenses and other current assets
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94,313
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89,903
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Total current assets
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2,156,910
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2,263,016
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Property and equipment, net
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503,840
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482,878
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Marketable securities
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1,211,141
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1,213,285
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Restricted cash
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|
117
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|
113
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Noncurrent deferred income tax
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283,440
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110,293
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Noncurrent deferred costs
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57,579
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56,151
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Intangible assets, net
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303,414
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305,002
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Other assets
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84,240
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94,395
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Total assets
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$
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4,600,681
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$
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4,525,133
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Liabilities and Stockholders' Equity
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Current liabilities:
|
|
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Accounts payable
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$
|
136,901
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$
|
172,404
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Salaries and benefits payable
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|
69,892
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|
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|
88,818
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Accrued warranty costs
|
|
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|
34,427
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|
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|
37,233
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Accrued sales program costs
|
|
|
|
|
|
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|
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|
46,468
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|
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|
80,953
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Deferred revenue
|
|
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|
|
|
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|
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|
140,452
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|
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|
|
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|
146,564
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|
Accrued royalty costs
|
|
|
|
|
|
|
|
|
|
26,006
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|
|
|
|
|
|
36,523
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|
Accrued advertising expense
|
|
|
|
|
|
|
|
|
|
17,039
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|
|
|
|
|
|
|
37,440
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|
Other accrued expenses
|
|
|
|
|
|
|
|
|
|
79,986
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|
|
|
|
|
|
|
70,469
|
|
Income taxes payable
|
|
|
|
|
|
|
|
|
|
20,288
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|
|
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|
|
|
|
16,163
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Dividend payable
|
|
|
|
|
|
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|
|
-
|
|
|
|
|
|
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|
96,168
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|
Total current liabilities
|
|
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|
571,459
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|
|
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|
782,735
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|
|
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Deferred income taxes
|
|
|
|
|
|
|
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|
62,593
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61,220
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Non-current income taxes
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|
|
|
|
|
|
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|
124,265
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|
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|
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121,174
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Non-current deferred revenue
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|
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|
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|
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|
138,665
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|
140,407
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Other liabilities
|
|
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|
|
|
|
|
|
|
1,637
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|
|
|
|
|
|
|
1,594
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Stockholders' equity:
|
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Shares, CHF 0.10 par value, 198,077 shares authorized and issued;
188,156 shares outstanding at April 1, 2017 and 188,565 shares
outstanding at December 31, 2016
|
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|
|
17,979
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|
|
|
|
|
|
17,979
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|
Additional paid-in capital
|
|
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|
|
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|
|
|
1,831,824
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|
|
|
|
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|
1,836,047
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|
Treasury stock
|
|
|
|
|
|
|
|
|
|
(474,859
|
)
|
|
|
|
|
|
|
(455,964
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)
|
Retained earnings
|
|
|
|
|
|
|
|
|
|
2,294,654
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|
|
|
|
|
|
2,056,702
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|
Accumulated other comprehensive income
|
|
|
|
|
|
|
|
|
|
32,464
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|
|
|
|
|
|
|
(36,761
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)
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Total stockholders' equity
|
|
|
|
|
|
|
|
|
|
3,702,062
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|
|
|
|
|
|
|
3,418,003
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|
Total liabilities and stockholders' equity
|
|
|
|
|
|
|
|
|
$
|
4,600,681
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|
|
|
|
|
|
$
|
4,525,133
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Garmin Ltd. And Subsidiaries
|
Condensed Consolidated Statements of Cash Flows (Unaudited)
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
13-Weeks Ended
|
|
|
|
|
|
|
|
|
|
|
|
April 1,
|
|
|
|
|
|
March 26,
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
|
|
|
|
2016
|
Operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
|
|
|
|
$
|
237,812
|
|
|
|
|
|
|
$
|
88,092
|
|
Adjustments to reconcile net income to net cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
|
|
|
|
|
|
|
14,658
|
|
|
|
|
|
|
|
13,078
|
|
|
|
Amortization
|
|
|
|
|
|
|
|
|
|
7,070
|
|
|
|
|
|
|
|
7,115
|
|
|
|
Loss on sale or disposal of property and equipment
|
|
|
|
|
|
|
|
|
|
8
|
|
|
|
|
|
|
|
38
|
|
|
|
Provision for doubtful accounts
|
|
|
|
|
|
|
|
|
|
(294
|
)
|
|
|
|
|
|
|
285
|
|
|
|
Deferred income taxes
|
|
|
|
|
|
|
|
|
|
(171,523
|
)
|
|
|
|
|
|
|
3,906
|
|
|
|
Unrealized foreign currency loss (gain)
|
|
|
|
|
|
|
|
|
|
42,281
|
|
|
|
|
|
|
|
(5,412
|
)
|
|
|
Provision for obsolete and slow moving inventories
|
|
|
|
|
|
|
|
|
|
7,193
|
|
|
|
|
|
|
|
8,026
|
|
|
|
Stock compensation expense
|
|
|
|
|
|
|
|
|
|
8,206
|
|
|
|
|
|
|
|
8,172
|
|
|
|
Realized loss (gain) on marketable securities
|
|
|
|
|
|
|
|
|
|
291
|
|
|
|
|
|
|
|
(452
|
)
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
|
|
|
|
|
|
135,253
|
|
|
|
|
|
|
|
130,036
|
|
|
|
Inventories
|
|
|
|
|
|
|
|
|
|
(41,398
|
)
|
|
|
|
|
|
|
(18,873
|
)
|
|
|
Other current and non-current assets
|
|
|
|
|
|
|
|
|
|
7,534
|
|
|
|
|
|
|
|
(3,937
|
)
|
|
|
Accounts payable
|
|
|
|
|
|
|
|
|
|
(44,180
|
)
|
|
|
|
|
|
|
(45,515
|
)
|
|
|
Other current and non-current liabilities
|
|
|
|
|
|
|
|
|
|
(81,038
|
)
|
|
|
|
|
|
|
(31,606
|
)
|
|
|
Deferred revenue
|
|
|
|
|
|
|
|
|
|
(8,375
|
)
|
|
|
|
|
|
|
(12,337
|
)
|
|
|
Deferred cost
|
|
|
|
|
|
|
|
|
|
(46
|
)
|
|
|
|
|
|
|
(2,496
|
)
|
|
|
Income taxes payable
|
|
|
|
|
|
|
|
|
|
6,943
|
|
|
|
|
|
|
|
(8,733
|
)
|
Net cash provided by operating activities
|
|
|
|
|
|
|
|
|
|
120,395
|
|
|
|
|
|
|
|
129,387
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
|
|
|
|
|
|
|
(25,538
|
)
|
|
|
|
|
|
|
(13,908
|
)
|
Proceeds from sale of property and equipment
|
|
|
|
|
|
|
|
|
|
7
|
|
|
|
|
|
|
|
-
|
|
Purchase of intangible assets
|
|
|
|
|
|
|
|
|
|
(1,222
|
)
|
|
|
|
|
|
|
(1,716
|
)
|
Purchase of marketable securities
|
|
|
|
|
|
|
|
|
|
(96,049
|
)
|
|
|
|
|
|
|
(151,070
|
)
|
Redemption of marketable securities
|
|
|
|
|
|
|
|
|
|
109,526
|
|
|
|
|
|
|
|
237,464
|
|
Change in restricted cash
|
|
|
|
|
|
|
|
|
|
(4
|
)
|
|
|
|
|
|
|
(2
|
)
|
Acquisitions, net of cash acquired
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
(62,137
|
)
|
Net cash (used in) provided by investing activities
|
|
|
|
|
|
|
|
|
|
(13,280
|
)
|
|
|
|
|
|
|
8,631
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid
|
|
|
|
|
|
|
|
|
|
(96,028
|
)
|
|
|
|
|
|
|
(96,566
|
)
|
Purchase of treasury stock under share repurchase plan
|
|
|
|
|
|
|
|
|
|
(27,873
|
)
|
|
|
|
|
|
|
(19,796
|
)
|
Purchase of treasury stock related to equity awards
|
|
|
|
|
|
|
|
|
|
(3,452
|
)
|
|
|
|
|
|
|
(16
|
)
|
Proceeds from issuance of treasury stock related to equity awards
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
103
|
|
Tax benefit from issuance of equity awards
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
2
|
|
Net cash used in financing activities
|
|
|
|
|
|
|
|
|
|
(127,353
|
)
|
|
|
|
|
|
|
(116,273
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
6,932
|
|
|
|
|
|
|
|
2,864
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
(13,306
|
)
|
|
|
|
|
|
|
24,609
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
|
|
|
|
|
|
846,883
|
|
|
|
|
|
|
|
833,070
|
|
Cash and cash equivalents at end of period
|
|
|
|
|
|
|
|
|
$
|
833,577
|
|
|
|
|
|
|
$
|
857,679
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Garmin Ltd. And Subsidiaries
|
Net Sales, Gross Profit, and Operating Income by Segment
(Unaudited)
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reportable Segments
|
|
|
|
|
Marine
|
|
|
|
Outdoor
|
|
|
|
Aviation
|
|
|
|
Fitness
|
|
|
|
Auto
|
|
|
|
Total
|
13-Weeks Ended April 1, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
104,445
|
|
|
|
$
|
115,875
|
|
|
|
$
|
122,871
|
|
|
|
$
|
137,831
|
|
|
|
$
|
157,524
|
|
|
|
$
|
638,546
|
Gross profit
|
|
|
|
$
|
59,747
|
|
|
|
$
|
73,469
|
|
|
|
$
|
91,233
|
|
|
|
$
|
77,741
|
|
|
|
$
|
69,933
|
|
|
|
$
|
372,123
|
Operating income
|
|
|
|
$
|
18,145
|
|
|
|
$
|
34,451
|
|
|
|
$
|
38,608
|
|
|
|
$
|
18,472
|
|
|
|
$
|
6,669
|
|
|
|
$
|
116,345
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13-Weeks Ended March 26, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
82,880
|
|
|
|
$
|
96,827
|
|
|
|
$
|
106,316
|
|
|
|
$
|
142,418
|
|
|
|
$
|
195,599
|
|
|
|
$
|
624,040
|
Gross profit
|
|
|
|
$
|
44,149
|
|
|
|
$
|
58,932
|
|
|
|
$
|
78,331
|
|
|
|
$
|
72,294
|
|
|
|
$
|
86,144
|
|
|
|
$
|
339,850
|
Operating income
|
|
|
|
$
|
10,293
|
|
|
|
$
|
27,885
|
|
|
|
$
|
30,486
|
|
|
|
$
|
16,573
|
|
|
|
$
|
18,566
|
|
|
|
$
|
103,803
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Garmin Ltd. And Subsidiaries
|
Net Sales by Geography (Unaudited)
|
(In thousands)
|
|
|
|
|
|
13-Weeks Ended
|
|
|
|
|
April 1,
|
|
|
|
|
|
March 26,
|
|
|
|
|
Yr over Yr
|
|
|
|
|
2017
|
|
|
|
|
|
2016
|
|
|
|
|
Change
|
Net sales
|
|
|
|
$
|
638,546
|
|
|
|
|
|
$
|
624,040
|
|
|
|
|
2
|
%
|
Americas
|
|
|
|
|
320,189
|
|
|
|
|
|
|
317,957
|
|
|
|
|
1
|
%
|
EMEA
|
|
|
|
|
226,795
|
|
|
|
|
|
|
225,728
|
|
|
|
|
0
|
%
|
APAC
|
|
|
|
|
91,562
|
|
|
|
|
|
|
80,355
|
|
|
|
|
14
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EMEA - Europe, Middle East and Africa; APAC - Asia Pacific and
Australian Continent
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|