A phone recording will be available for three business days following the earnings call and can be accessed by dialing (800) 642-1687 or (706) 645-9291 and utilizing the access code #42452953. An archive of the live webcast will be available until May 30, 2008 on the Garmin website at http://www.garmin.com. To access the replay, click on the Investor Relations link and click over to the Events Calendar page.
This release includes projections and other forward-looking statements regarding Garmin Ltd. and its business. Any statements regarding the company's estimated earnings and revenue for fiscal 2008, the Company's expected segment revenue growth rate, margins, new products to be introduced in 2008 and the company's plans and objectives are forward-looking statements. The forward- looking events and circumstances discussed in this release may not occur and actual results could differ materially as a result of risk factors affecting Garmin, including, but not limited to, the risk factors that are described in the Annual Report on Form 10-K for the year ended December 29, 2007 filed by Garmin with the Securities and Exchange Commission (Commission file number 0-31983). A copy of Garmin's 2007 Form 10-K can be downloaded from http://www.garmin.com/aboutGarmin/invRelations/finReports.html.
The global leader in satellite navigation, Garmin Ltd. and its subsidiaries have designed, manufactured, marketed and sold navigation, communication and information devices and applications since 1989 -- most of which are enabled by GPS technology. Garmin's products serve automotive, mobile, wireless, outdoor recreation, marine, aviation, and OEM applications. Garmin Ltd. is incorporated in the Cayman Islands, and its principal subsidiaries are located in the United States, Taiwan and the United Kingdom. For more information, visit Garmin's virtual pressroom at http://www.garmin.com/pressroom or contact the Media Relations department at 913-397-8200. Garmin, nuvi, and Forerunner are registered trademarks, and nuvifone and Colorado and 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.
Garmin Ltd. And Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands, except share information)
March 29, December 29,
2008 2007
Assets
Current assets:
Cash and cash equivalents $598,815 $707,689
Marketable securities 17,976 37,551
Accounts receivable, net 515,648 952,513
Inventories, net 676,051 505,467
Deferred income taxes 98,506 107,376
Prepaid expenses and other current assets 24,129 22,179
Total current assets 1,931,125 2,332,775
Property and equipment, net 392,001 374,147
Marketable securities 542,937 386,954
Restricted cash 1,565 1,554
Licensing agreements, net 13,236 14,672
Other intangible assets, net 202,534 181,358
Total assets $3,083,398 $3,291,460
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $213,766 $341,053
Salaries and benefits payable 34,618 31,696
Accrued warranty costs 72,751 71,636
Other accrued expenses 129,415 280,603
Income taxes payable 16,163 76,895
Total current liabilities 466,713 801,883
Deferred income taxes 12,123 11,935
Non-current taxes 136,137 126,593
Other liabilities 980 435
Stockholders' equity:
Common stock, $0.005 par value,
1,000,000,000 shares authorized:
Issued and outstanding shares
- 215,648,000 as of March 29, 2008 and
216,980,000 as of December 29, 2007 1,079 1,086
Additional paid-in capital 54,502 132,264
Retained earnings 2,318,914 2,171,134
Accumulated other comprehensive income 92,950 46,130
Total stockholders' equity 2,467,445 2,350,614
Total liabilities and stockholders' equity $3,083,398 $3,291,460
Garmin Ltd. And Subsidiaries
Condensed Consolidated Statements of Income (Unaudited)
(In thousands, except per share information)
13-Weeks Ended
March 29, March 31,
2008 2007
Net sales $663,805 $492,159
Cost of goods sold 343,690 254,407
Gross profit 320,115 237,752
Selling, general and administrative expense 97,825 65,925
Research and development expense 49,558 33,503
147,383 99,428
Operating income 172,732 138,324
Other income (expense):
Interest income 8,404 9,359
Interest expense (77) (32)
Foreign currency (3,999) 13,205
Other 5,383 51
9,711 22,583
Income before income taxes 182,443 160,907
Income tax provision 34,664 21,047
Net income $147,779 $139,860
Net income per share:
Basic $0.68 $0.65
Diluted $0.67 $0.64
Weighted average common shares outstanding:
Basic 216,505 216,215
Diluted 218,979 218,704
Garmin Ltd. And Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
13-Weeks Ended
March 29, March 31,
2008 2007
Operating Activities:
Net income $147,779 $139,860
Adjustments to reconcile net income
to net cash
provided by operating activities:
Depreciation 9,861 6,213
Amortization 7,775 9,872
Loss (gain) on sale of property
and equipment (1) 27
Provision for doubtful accounts 350 991
Deferred income taxes 17,067 2,159
Foreign currency transaction
gains/losses 64,946 (13,052)
Provision for obsolete and slow
moving inventories 11,669 8,156
Stock compensation expense 9,124 3,955
Realized gains on marketable
securities (5,245) -
Changes in operating assets and
liabilities, net of acquisitions:
Accounts receivable 458,821 84,886
Inventories (169,501) (16,772)
Other current assets 9,946 2,947
Accounts payable (159,590) 6,252
Other current and non-current
liabilities (137,588) (34,628)
Income taxes payable (60,701) (11,993)
Purchase of licenses (12,247) (20,203)
Net cash provided by operating
activities 192,465 168,670
Investing activities:
Purchases of property and equipment (26,690) (12,399)
Proceeds from sale of property and
equipment 8 -
Purchase of intangible assets (2,562) (1,564)
Purchase of marketable securities (265,758) (102,197)
Redemption of marketable securities 102,374 153,924
Change in restricted cash (11) (4)
Acquisitions, net of cash acquired (23,725) (68,902)
Net cash used in investing activities (216,364) (31,142)
Financing activities:
Proceeds from issuance of common stock 1,524 2,842
Stock repurchase (90,050) -
Payments on long term debt 0 (14)
Tax benefit related to stock option
exercise 1,633 2,190
Net cash provided by/(used in)
financing activities (86,893) 5,018
Effect of exchange rate changes on
cash and cash equivalents 1,918 (487)
Net increase/(decrease) in cash and
cash equivalents (108,874) 142,059
Cash and cash equivalents at
beginning of period 707,689 337,321
Cash and cash equivalents at end of
period $598,815 $479,380
Garmin Ltd. And Subsidiaries
Revenue, Gross Profit, and Operating Income by Segment
Reportable Segments
Outdoor/ Auto/
Fitness Marine Mobile Aviation Total
13-Weeks Ended March 29, 2008
Net Sales $70,495 $56,006 $451,859 $85,445 $663,805
Operating income $19,311 $17,836 $107,641 $27,944 $172,732
Income before taxes $20,447 $19,333 $112,304 $30,359 $182,443
13-Weeks Ended March 31, 2007
Net Sales $60,527 $43,004 $316,626 $72,002 $492,159
Operating Income $21,209 $11,294 $79,525 $26,296 $138,324
Income before taxes $24,783 $13,085 $95,145 $27,894 $160,907
Web site: http://www.garmin.com/
