Garmin Ltd. (Nasdaq: GRMN) today announced second quarter results for
the period ended June 27, 2009.
Second Quarter 2009 Financial highlights:
-
Total revenue of $669 million, down 27% from $912 million in second
quarter 2008
-
Automotive/Mobile segment revenue decreased 31% to $437 million
-
Outdoor/Fitness segment revenue decreased 9% to $108 million
-
Aviation segment revenue decreased 28% to $64 million
-
Marine segment revenue decreased 15% to $60 million
-
North America and Europe continued to experience year-over-year
revenue declines while Asia improved:
-
North America revenue was $436 million compared to $576 million,
down 24%
-
Europe revenue was $198 million compared to $307 million, down 36%
-
Asia revenue was $35 million compared to $29 million, up 21%
-
Gross margin improved to 52.6% compared to 45.8% in second quarter
2008 and 44.9% in first quarter 2009
-
Operating margin was up to 29.8% compared to 13.3% in first quarter
2009 and 26.2% in second quarter of 2008
-
Diluted earnings per share decreased 32% to $0.81 from $1.19 in second
quarter 2008; pro forma EPS decreased 12% to $0.83 from $0.94 in the
same quarter in 2008. (Pro forma EPS excludes the impact of foreign
currency translation gain or loss and the 2008 gain on sale of
TeleAtlas N.V. shares).
-
Generated $246 million of free cash flow in second quarter 2009 for a
cash and marketable securities balance of over $1.5 billion.
Year-to-Date 2009 Financial highlights:
-
Total revenue of $1.11 billion, down 30% from $1.58 billion
year-to-date 2008
-
Automotive/Mobile segment revenue decreased 36% to $697 million
-
Outdoor/Fitness segment revenue decreased 1% to $188 million
-
Aviation segment revenue decreased 30% to $123 million
-
Marine segment revenue decreased 23% to $98 million
-
All geographic areas experienced a slowdown in revenues:
-
North America revenue was $702 million compared to $988 million,
down 29%
-
Europe revenue was $340 million compared to $517 million, down 34%
-
Asia revenue was $64 million compared to $71 million, down 10%
-
Diluted earnings per share decreased 44% to $1.05 from $1.86 in
year-to-date 2008; pro forma EPS decreased 33% to $1.08 from $1.60 in
year-to-date 2008. (Pro forma EPS excludes the impact of foreign
currency translation gain or loss and the 2008 gain on sale of
TeleAtlas N.V. shares).
-
Generated $532 million of free cash flow year-to-date.
Business highlights:
-
Posted sequential revenue growth of 53% with all segments showing
improved revenues and margins as the first quarter seems to have
represented the low point of declining revenue caused by the global
economic crisis.
-
Reported 68% sequential revenue growth in the automotive/mobile
segment with sequential gross margin and operating margin improvement
of 12.3% and 22.6%, respectively, as pricing, cost, and volumes
improved.
-
Sold 3.7 million units in the second quarter of 2009, with PND unit
growth in both North America and Asia.
-
Continued to lead in world-wide PND market share. Independent market
share research indicates that we have expanded our leadership position
in the North American PND market with approximately a 57% share, which
is up sequentially from 53% in first quarter. We maintained a market
share of approximately 20% in Europe.
-
Introduced new marine products including chartplotters, autopilot, VHF
radios and radars to further our penetration into larger boats and OEM
markets.
-
Delivered our new fitness device lineup including the Forerunner®
310XT and FR 60 fitness watch. Delivered new mapping content for
outdoor products in North American and Europe which helped to boost
demand for devices and content sales.
Executive overview from Dr. Min Kao, Chairman and Chief Executive
Officer:
“While the macroeconomic conditions continue to dampen consumer demand,
we are encouraged by the 53% sequential improvement in revenues in the
second quarter. We are also pleased with the solid margins and earnings
in the quarter achieved by the various initiatives that we have taken to
improve productivity, reduce expenses and utilize the strength of our
balance sheet.
The automotive/mobile segment continued to show sell-through growth on a
unit basis in both the North American and Asian markets and Garmin
maintained its strong global market leadership position. The sequential
improvement in pricing and margins in the quarter were on target with
our expectations entering the quarter. We intend to continue to position
ourselves to take advantage of the ongoing demand for portable
navigation devices by delivering innovative solutions to the consumer.
Our recently introduced 1200, 1300 and 1400 nüvi®series which
offer affordable navigation solutions in a sleek form factor with
pedestrian capabilities have been well received, and we continue to
expand the utility of in-vehicle navigation through the introduction of
our first product designed specifically for the trucking market.
The outdoor/fitness segment has been our most resilient business in this
down economy. However, after nine consecutive quarters of revenue
growth, we experienced a revenue decline of 9% in the second quarter as
we faced difficult comparables from the second quarter of 2008 when we
launched a number of new products. We continue to believe that solid
long-term potential exists in this segment. We expect the deliveries of
our new feature-rich OregonTM 550t and DakotaTM
line of handhelds in the outdoor market, and Forerunner 310XT and the FR
60 line of fitness products will assist us in seeing steady revenues and
margins in future quarters.
The aviation industry continues to struggle due to the lingering effects
of the economic crisis, and we do not anticipate significant growth
until overall market conditions show consistent stabilization. We did
recently introduce new products and features to the aviation community
at the annual Oshkosh air show that clearly continue our technological
leadership in the avionics industry. These announcements included: the
GTS family of products which brings traffic advisory services to the
cockpit, the G500 which is an affordable retrofit option, and the G3X
which is designed for experimental and light sport aircraft (our first
offering to this market). At a time when many competitors have reduced
research and development spending and new product introductions, Garmin
continues to invest and innovate gaining market share and being
positioned to grow as the aviation industry recovers.
The marine segment posted strong sequential growth at 58% as we entered
the boating season. While the general marine market was down as much as
40%, we were able to significantly outperform the market on the strength
of our marine product lineup. We were pleased with the revenue level and
the margins that the business was able to deliver in the quarter. As we
look toward the back half of the year, we are excited to deliver new
navigation, communication and radar products that should further our
growing position in the marine industry. While we do not expect to post
growth until the macroeconomic conditions improve, we do expect that
year-over-year declines will continue to improve throughout the year.”
Financial overview from Kevin Rauckman, Chief Financial Officer:
“We are pleased with our financial results for the second quarter given
the tough economic conditions facing the consumer today,” said Kevin
Rauckman, Chief Financial Officer of Garmin Ltd. “While our revenue and
pro forma earnings per share during the quarter fell 27% and 12%
respectively on a year-over-year basis, we posted strong sequential
growth in both metrics and continued to manage the business
exceptionally well allowing for significant margin expansion.
Gross margin for the overall business in the second quarter was 52.6%
with all four segments posting year-over-year margin improvement. The
automotive/mobile segment gross margin was much improved at 45% compared
to 39% in the second quarter of 2008. Improvement was driven by
sequential average selling price growth, foreign currency fluctuations
and continued benefit from material cost reductions. Gross margin for
the other three segments also improved when compared with the year-ago
quarter with outdoor/fitness increasing most significantly from 57% to
68% as we took advantage of the product mix, stable prices and material
cost reductions.
Operating margin increased from 13.3% to 29.8% in the current quarter on
a sequential basis and from 26.2% in the year-ago quarter. The
sequential operating margin expansion occurred across all segments as
revenues grew sequentially and operating costs declined as a percent of
sales. Total operating expenses decreased by $26 million on a
year-over-year basis. We reduced advertising expenses by $24 million, or
42%, and other selling, general and administrative expenses by $5
million, or 7%. Research and development costs increased by $3 million,
or 5%, when compared to the year-ago quarter as we continue to hire
engineers to support our product initiatives.
We also generated $246 million of free cash flow in the second quarter
of 2009, resulting in a cash and marketable securities balance of just
over $1.5 billion at the end of the quarter.”
Dividend Announcement
The Garmin Board of Directors has approved an annual cash dividend of
$0.75 per share. The dividend is payable to shareholders of record on
December 1, 2009 and will be paid on December 15, 2009.
Non-GAAP Measures
Pro Forma net income (earnings) per share
Management believes that net income per share before the impact of
foreign currency translation gain or loss and other one-time items is an
important measure. The majority of the Company’s consolidated foreign
currency translation gain or loss results from translations involving
the Euro, the British Pound Sterling and the Taiwan Dollar at the end of
each reporting period of the significant cash and marketable securities,
receivables and payables held in U.S. dollars by the Company’s various
subsidiaries. Such translation is required under GAAP because the
functional currency of the subsidiaries differs from the currency in
which various assets and liabilities are held. However, there is minimal
cash impact from such foreign currency translation. Accordingly,
earnings per share before the impact of foreign currency translation
gain or loss allow an assessment of the Company’s operating performance
before the non-cash impact of the position of the U.S. Dollar versus
other currencies, which permits a consistent comparison of results
between periods. The 2008 gain on sale of TeleAtlas N.V. shares is also
excluded below as a one-time item.
The following table contains a reconciliation of GAAP net income per
share to pro forma net income per share.
|
Garmin Ltd. And Subsidiaries
Net income per share
(Pro Forma)
(in thousands, except per share
information)
|
|
|
|
|
|
|
|
|
|
|
|
13-Weeks Ended
|
|
26-Weeks Ended
|
|
|
June 27,
|
|
June 28,
|
|
June 27,
|
|
June 28,
|
|
|
2009
|
|
2008
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
Net Income (GAAP)
|
$
|
161,871
|
|
$
|
256,092
|
|
|
$
|
210,409
|
|
$
|
403,871
|
|
|
Foreign currency (gain) / loss, net of tax effects
|
$
|
3,918
|
|
|
($17,465
|
)
|
|
$
|
5,893
|
|
|
($14,226
|
)
|
|
Gain on sale of equity securities, net of tax effects
|
|
-
|
|
|
($37,006
|
)
|
|
|
-
|
|
|
($41,269
|
)
|
|
Net income (Pro Forma)
|
$
|
165,789
|
|
$
|
201,622
|
|
|
$
|
216,302
|
|
$
|
348,377
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share (GAAP):
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.81
|
|
$
|
1.20
|
|
|
$
|
1.05
|
|
$
|
1.88
|
|
|
Diluted
|
$
|
0.81
|
|
$
|
1.19
|
|
|
$
|
1.05
|
|
$
|
1.86
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share (Pro Forma)
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.83
|
|
$
|
0.94
|
|
|
$
|
1.08
|
|
$
|
1.62
|
|
|
Diluted
|
$
|
0.83
|
|
$
|
0.94
|
|
|
$
|
1.08
|
|
$
|
1.60
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
200,296
|
|
|
213,756
|
|
|
|
200,364
|
|
|
215,130
|
|
|
Diluted
|
|
200,853
|
|
|
215,572
|
|
|
|
200,814
|
|
|
217,274
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
Management believes that free cash flow is an important financial
measure because it represents the amount of cash provided by operations
that is available for investing and defines it as operating cash flow
less capital expenditures for property and equipment.
The following table contains a reconciliation of GAAP net cash provided
by operating activities to free cash flow.
|
Garmin Ltd. And Subsidiaries
Free Cash Flow
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
13-Weeks Ended
|
|
26-Weeks Ended
|
|
|
June 27,
|
|
June 28,
|
|
June 27,
|
|
June 28,
|
|
|
2009
|
|
2008
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
$
|
256,272
|
|
|
$
|
87,716
|
|
|
$
|
555,688
|
|
|
$
|
280,181
|
|
|
Less: purchases of property and equipment
|
|
($10,207
|
)
|
|
|
($53,227
|
)
|
|
|
($23,343
|
)
|
|
|
($79,917
|
)
|
|
Free Cash Flow
|
$
|
246,065
|
|
|
$
|
34,489
|
|
|
$
|
532,345
|
|
|
$
|
200,264
|
|
|
|
|
|
|
|
|
|
|
Earnings Call Information
The information for Garmin Ltd.’s earnings call is as follows:
|
When:
|
|
Wednesday, August 5, 2009 at 10:30 a.m. Eastern
|
|
Where:
|
|
http://www.garmin.com/aboutGarmin/invRelations/irCalendar.html
|
|
How:
|
|
Simply log on to the web at the address above or call to listen in
at 800-891-6383.
|
|
Contact:
|
|
investor.relations@garmin.com
|
|
|
|
|
A phone recording will be available for five business days following the
earnings call and can be accessed by dialing 800-642-1687 or (706)
645-9291 and utilizing the access code 17918247. An archive of the live
webcast will be available until September, 2009 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 2009, the Company’s
expected segment revenue growth rate, margins, the number of new
products to be introduced in 2009 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 27, 2008
filed by Garmin with the Securities and Exchange Commission (Commission
file number 0-31983). A copy of Garmin’s 2008 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 www.garmin.com/pressroom
or contact the Media Relations department at 913-397-8200.
Garmin, nüvi, and Forerunner are registered trademarks, and Oregon and
Dakota 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
(In thousands, except share information)
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
June 27,
|
|
December 27,
|
|
|
|
2009
|
|
2008
|
|
Assets
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
958,909
|
|
|
$
|
696,335
|
|
|
Marketable securities
|
|
|
18,889
|
|
|
|
12,886
|
|
|
Accounts receivable, net
|
|
|
519,433
|
|
|
|
741,321
|
|
|
Inventories, net
|
|
|
323,161
|
|
|
|
425,312
|
|
|
Deferred income taxes
|
|
|
59,331
|
|
|
|
49,825
|
|
|
Prepaid expenses and other current assets
|
|
|
65,081
|
|
|
|
58,746
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
1,944,804
|
|
|
|
1,984,425
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
443,026
|
|
|
|
445,252
|
|
|
|
|
|
|
|
|
Marketable securities
|
|
|
524,935
|
|
|
|
262,009
|
|
|
Restricted cash
|
|
|
2,066
|
|
|
|
1,941
|
|
|
Licensing agreements, net
|
|
|
20,647
|
|
|
|
16,013
|
|
|
Other intangible assets, net
|
|
|
208,888
|
|
|
|
214,941
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
3,144,366
|
|
|
$
|
2,924,581
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
137,360
|
|
|
$
|
160,094
|
|
|
Salaries and benefits payable
|
|
|
28,396
|
|
|
|
34,241
|
|
|
Accrued warranty costs
|
|
|
79,968
|
|
|
|
87,408
|
|
|
Accrued sales program costs
|
|
|
69,554
|
|
|
|
90,337
|
|
|
Other accrued expenses
|
|
|
94,118
|
|
|
|
87,021
|
|
|
Income taxes payable
|
|
|
20,142
|
|
|
|
20,075
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
429,538
|
|
|
|
479,176
|
|
|
|
|
|
|
|
|
Deferred income taxes
|
|
|
14,514
|
|
|
|
4,070
|
|
|
Non-current taxes
|
|
|
236,927
|
|
|
|
214,366
|
|
|
Other liabilities
|
|
|
1,231
|
|
|
|
1,115
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
Common stock, $0.005 par value, 1,000,000,000 shares authorized:
|
|
|
|
|
|
Issued and outstanding shares - 200,505,000 as of June 27, 2009
and 200,363,000 as of December 27, 2008
|
|
|
1,000
|
|
|
|
1,002
|
|
|
Additional paid-in capital
|
|
|
23,264
|
|
|
|
-
|
|
|
Retained earnings
|
|
|
2,472,912
|
|
|
|
2,262,503
|
|
|
Accumulated other comprehensive gain/(loss)
|
|
|
(35,020
|
)
|
|
|
(37,651
|
)
|
|
|
|
|
|
|
|
Total stockholders' equity
|
|
|
2,462,156
|
|
|
|
2,225,854
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
3,144,366
|
|
|
$
|
2,924,581
|
|
|
|
|
|
|
|
Garmin Ltd. And Subsidiaries
Condensed Consolidated
Statements of Income (Unaudited)
(In thousands, except
per share information)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13-Weeks Ended
|
|
26-Weeks Ended
|
|
|
|
June 27,
|
|
June 28,
|
|
June 27,
|
|
June 28,
|
|
|
|
2009
|
|
2008
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
669,104
|
|
|
$
|
911,671
|
|
$
|
1,105,803
|
|
|
$
|
1,575,476
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
317,490
|
|
|
|
494,543
|
|
|
558,194
|
|
|
|
838,233
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
351,614
|
|
|
|
417,128
|
|
|
547,609
|
|
|
|
737,243
|
|
|
|
|
|
|
|
|
|
|
|
Advertising expense
|
|
|
34,023
|
|
|
|
58,327
|
|
|
57,248
|
|
|
|
96,456
|
|
Selling, general and administrative expense
|
|
|
62,186
|
|
|
|
66,701
|
|
|
121,963
|
|
|
|
126,397
|
|
Research and development expense
|
|
|
56,253
|
|
|
|
53,597
|
|
|
111,287
|
|
|
|
103,154
|
|
Total operating expense
|
|
|
152,462
|
|
|
|
178,625
|
|
|
290,498
|
|
|
|
326,007
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
199,152
|
|
|
|
238,503
|
|
|
257,111
|
|
|
|
411,236
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
5,190
|
|
|
|
9,801
|
|
|
10,286
|
|
|
|
18,127
|
|
Foreign currency
|
|
|
(4,836
|
)
|
|
|
21,561
|
|
|
(7,274
|
)
|
|
|
17,562
|
|
Gain on sale of equity securities
|
|
|
-
|
|
|
|
45,686
|
|
|
-
|
|
|
|
50,949
|
|
Other
|
|
|
335
|
|
|
|
612
|
|
|
(359
|
)
|
|
|
732
|
|
Total other income
|
|
|
689
|
|
|
|
77,660
|
|
|
2,653
|
|
|
|
87,370
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
199,841
|
|
|
|
316,163
|
|
|
259,764
|
|
|
|
498,606
|
|
|
|
|
|
|
|
|
|
|
|
Income tax provision
|
|
|
37,970
|
|
|
|
60,071
|
|
|
49,355
|
|
|
|
94,735
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
161,871
|
|
|
$
|
256,092
|
|
$
|
210,409
|
|
|
$
|
403,871
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.81
|
|
|
$
|
1.20
|
|
$
|
1.05
|
|
|
$
|
1.88
|
|
Diluted
|
|
$
|
0.81
|
|
|
$
|
1.19
|
|
$
|
1.05
|
|
|
$
|
1.86
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
200,296
|
|
|
|
213,756
|
|
|
200,364
|
|
|
|
215,130
|
|
Diluted
|
|
|
200,853
|
|
|
|
215,572
|
|
|
200,814
|
|
|
|
217,274
|
|
|
|
|
|
|
|
|
|
|
Garmin Ltd. And Subsidiaries
Condensed Consolidated
Statements of Cash Flows (Unaudited)
(In thousands)
|
|
|
|
26-Weeks Ended
|
|
|
|
June 27,
|
|
June 28,
|
|
|
|
2009
|
|
2008
|
|
Operating Activities:
|
|
|
|
|
|
Net income
|
|
$
|
210,409
|
|
|
$
|
403,871
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
Depreciation
|
|
|
26,335
|
|
|
|
18,690
|
|
|
Amortization
|
|
|
15,914
|
|
|
|
8,430
|
|
|
Gain on sale of property and equipment
|
|
|
(108
|
)
|
|
|
(208
|
)
|
|
Provision for doubtful accounts
|
|
|
(5,223
|
)
|
|
|
3,977
|
|
|
Deferred income taxes
|
|
|
(718
|
)
|
|
|
17,342
|
|
|
Foreign currency transaction gains/losses
|
|
|
(4,493
|
)
|
|
|
25,428
|
|
|
Provision for obsolete and slow moving inventories
|
|
|
14,111
|
|
|
|
28,326
|
|
|
Stock compensation expense
|
|
|
21,029
|
|
|
|
18,253
|
|
|
Realized gains on marketable securities
|
|
|
(1,274
|
)
|
|
|
(72,445
|
)
|
|
Changes in operating assets and liabilities, net of acquisitions:
|
|
|
|
|
|
Accounts receivable
|
|
|
233,166
|
|
|
|
307,580
|
|
|
Inventories
|
|
|
89,044
|
|
|
|
(141,180
|
)
|
|
Other current assets
|
|
|
(2,415
|
)
|
|
|
8,110
|
|
|
Accounts payable
|
|
|
(23,175
|
)
|
|
|
(213,507
|
)
|
|
Other current and non-current liabilities
|
|
|
(4,838
|
)
|
|
|
(102,909
|
)
|
|
Income taxes payable
|
|
|
(5,140
|
)
|
|
|
(25,341
|
)
|
|
Purchase of licenses
|
|
|
(6,936
|
)
|
|
|
(4,236
|
)
|
|
Net cash provided by operating activities
|
|
|
555,688
|
|
|
|
280,181
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(23,343
|
)
|
|
|
(79,917
|
)
|
|
Proceeds from sale of property and equipment
|
|
|
(7
|
)
|
|
|
8
|
|
|
Purchase of intangible assets
|
|
|
(3,496
|
)
|
|
|
(997
|
)
|
|
Purchase of marketable securities
|
|
|
(341,423
|
)
|
|
|
(344,119
|
)
|
|
Redemption of marketable securities
|
|
|
68,173
|
|
|
|
390,179
|
|
|
Change in restricted cash
|
|
|
(125
|
)
|
|
|
14
|
|
|
Acquisitions, net of cash acquired
|
|
|
0
|
|
|
|
(34,768
|
)
|
|
Net cash used in investing activities
|
|
|
(300,221
|
)
|
|
|
(69,600
|
)
|
|
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
|
Proceeds from issuance of common stock from exercise of stock
options
|
|
|
310
|
|
|
|
2,050
|
|
|
Proceeds from issuance of common stock from stock purchase plan
|
|
|
3,712
|
|
|
|
5,144
|
|
|
Stock repurchase
|
|
|
(1,849
|
)
|
|
|
(318,471
|
)
|
|
Tax benefit related to stock option exercise
|
|
|
65
|
|
|
|
1,965
|
|
|
Net cash provided by/(used in) financing activities
|
|
|
2,238
|
|
|
|
(309,312
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
4,869
|
|
|
|
15,524
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase/(decrease) in cash and cash equivalents
|
|
|
262,574
|
|
|
|
(83,207
|
)
|
|
Cash and cash equivalents at beginning of period
|
|
|
696,335
|
|
|
|
707,689
|
|
|
Cash and cash equivalents at end of period
|
|
$
|
958,909
|
|
|
$
|
624,482
|
|
|
|
|
|
|
|
Garmin Ltd. And Subsidiaries
Revenue, Gross Profit,
and Operating Income by Segment (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reporting Segments
|
|
|
|
|
|
Outdoor/
|
|
|
|
Auto/
|
|
|
|
|
|
|
|
|
|
Fitness
|
|
Marine
|
|
Mobile
|
|
Aviation
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13-Weeks Ended June 27, 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
108,009
|
|
$
|
60,198
|
|
$
|
436,718
|
|
$
|
64,179
|
|
$
|
669,104
|
|
Gross profit
|
|
|
|
$
|
73,215
|
|
$
|
35,780
|
|
$
|
195,075
|
|
$
|
47,544
|
|
$
|
351,614
|
|
Operating income
|
|
|
|
$
|
50,416
|
|
$
|
21,342
|
|
$
|
106,712
|
|
$
|
20,682
|
|
$
|
199,152
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13-Weeks Ended June 28, 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
119,147
|
|
$
|
71,178
|
|
$
|
631,883
|
|
$
|
89,463
|
|
$
|
911,671
|
|
Gross profit
|
|
|
|
$
|
67,908
|
|
$
|
40,120
|
|
$
|
243,720
|
|
$
|
65,380
|
|
$
|
417,128
|
|
Operating income
|
|
|
|
$
|
45,445
|
|
$
|
24,068
|
|
$
|
129,190
|
|
$
|
39,800
|
|
$
|
238,503
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
26-Weeks Ended June 27, 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
188,013
|
|
$
|
98,215
|
|
$
|
696,304
|
|
$
|
123,271
|
|
$
|
1,105,803
|
|
Gross profit
|
|
|
|
$
|
121,639
|
|
$
|
58,658
|
|
$
|
279,258
|
|
$
|
88,054
|
|
$
|
547,609
|
|
Operating income
|
|
|
|
$
|
78,920
|
|
$
|
31,914
|
|
$
|
111,318
|
|
$
|
34,959
|
|
$
|
257,111
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
26-Weeks Ended June 28, 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
189,641
|
|
$
|
127,185
|
|
$
|
1,083,742
|
|
$
|
174,908
|
|
$
|
1,575,476
|
|
Gross profit
|
|
|
|
$
|
105,347
|
|
$
|
72,583
|
|
$
|
439,614
|
|
$
|
119,699
|
|
$
|
737,243
|
|
Operating income
|
|
|
|
$
|
64,756
|
|
$
|
41,904
|
|
$
|
236,831
|
|
$
|
67,745
|
|
$
|
411,236
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Garmin Ltd.
INVESTOR
CONTACT:
Kerri Thurston,
913-397-8200
investor.relations@garmin.com
or
MEDIA
CONTACT:
Ted Gartner,
913-397-8200
media.relations@garmin.com
