Garmin Reports Strong First Quarter 2016 Sales

Garmin, the Garmin logo, the Garmin delta, Approach, GPSMap, vívoactive, vívofit and fēnix® are trademarks of Garmin Ltd. or its subsidiaries and are registered in one or more countries, including the U.S.; Garmin Drive, Garmin Elevate, and TruSwing are trademarks of, or exclusively licensed to, 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 Statements of Income (Unaudited)
(In thousands, except per share information)
     
13-Weeks Ended
Mar 26, Mar 28,
2016     2015  
Net sales $624,040 $585,394
 
Cost of goods sold 284,190   241,272  
 
Gross profit 339,850 344,122
 
Advertising expense 32,233 27,672
Selling, general and administrative expense 95,610 98,750
Research and development expense 108,204   106,002  
Total operating expense 236,047   232,424  
 
Operating income 103,803 111,698
 
Other income (expense):
Interest income 7,428 8,024
Foreign currency (losses) (4,839 ) (44,264 )
Other income 1,155   738  
Total other income (expense) 3,744   (35,502 )
 
Income before income taxes 107,547 76,196
 
Income tax provision 19,455   9,403  
 
Net income $88,092   $66,793  
 
Net income per share:
Basic $0.46 $0.35
Diluted $0.46 $0.35
 
Weighted average common
shares outstanding:
Basic 189,497 191,762
Diluted 189,651 192,341
 
     
Garmin Ltd. And Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except per share information)
     
(Unaudited)
Mar 26, Dec 26,
2016     2015  
Assets
Current assets:
Cash and cash equivalents $857,679 $833,070
Marketable securities 198,147 215,161
Accounts receivable, net 408,283 531,481
Inventories, net 517,767 500,554
Deferred costs 50,861 49,176
Prepaid expenses and other current assets 96,396   81,645  
Total current assets 2,129,133 2,211,087
 
Property and equipment, net 448,967 446,089
 
Marketable securities 1,279,799 1,343,387
Restricted cash 261 259
Noncurrent deferred income tax 117,467 116,518
Noncurrent deferred costs 39,663 38,769
Intangible assets, net 306,303 245,552
Other assets 88,731   97,730  
Total assets $4,410,324   $4,499,391  
 
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $137,162 $178,905
Salaries and benefits payable 75,862 70,601
Accrued warranty costs 31,407 30,449
Accrued sales program costs 49,236 67,613
Deferred revenue 154,965 164,982
Accrued royalty costs 25,737 30,310
Accrued advertising expense 20,185 33,547
Other accrued expenses 75,217 74,926
Income taxes payable 14,524 21,674
Dividend payable 96,425   192,991  
Total current liabilities 680,720 865,998
 
Deferred income taxes 60,915 56,210
Non-current income taxes 103,035 101,689
Non-current deferred revenue 126,731 128,731
Other liabilities 1,676 1,637
 
Stockholders' equity:
Shares, CHF 10 par value, 208,077 shares authorized and issued;
189,193 shares outstanding at March 26, 2016
and 189,722 shares outstanding at December 26, 2015 1,797,435 1,797,435
Additional paid-in capital 70,413 62,239
Treasury stock (434,346 ) (414,637 )
Retained earnings 2,018,609 1,930,517
Accumulated other comprehensive income (14,864 ) (30,428 )
Total stockholders' equity 3,437,247   3,345,126  
Total liabilities and stockholders' equity 4,410,324   $4,499,391  
 
     
Garmin Ltd. And Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In thousands)
 
  13-Weeks Ended
Mar 26, Mar 28,
2016   2015  
Operating Activities:
Net income $88,092 $66,793
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 13,078 12,280
Amortization 7,115 6,584
Loss on sale or disposal of property and equipment 38 24
Provision for doubtful accounts 285 (1,080 )
Deferred income taxes 3,906 (3,647 )
Unrealized foreign currency (gain) loss (5,412 ) 47,877
Provision for obsolete and slow moving inventories 8,026 4,344
Stock compensation expense 8,172 7,769
Realized gain on marketable securities (452 ) (340 )
Changes in operating assets and liabilities:
Accounts receivable 130,036 129,448
Inventories (18,873 ) (56,897 )
Other current and non-current assets (3,937 ) (11,537 )
Accounts payable (45,515 ) (25,957 )
Other current and non-current liabilities (31,606 ) (73,408 )
Deferred revenue (12,337 ) (29,870 )
Deferred cost (2,496 ) 6,470
Income taxes payable (8,733 ) 2,802  
Net cash provided by operating activities 129,387 81,655
 
Investing activities:
Purchases of property and equipment (13,908 ) (18,143 )
Proceeds from sale of property and equipment - 664
Purchase of intangible assets (1,716 ) (717 )
Purchase of marketable securities (151,070 ) (254,741 )
Redemption of marketable securities 237,464 308,751
Change in restricted cash (2 ) (5 )
Acquisitions, net of cash acquired (62,137 ) (12,632 )
Net cash provided by investing activities 8,631 23,177
 
Financing activities:
Dividends paid (96,566 ) (91,964 )
Purchase of treasury stock under share repurchase plan (19,796 ) (16,260 )
Purchase of treasury stock related to equity awards (16 ) (89 )
Proceeds from issuance of treasury stock related to equity awards 103 246
Tax benefit from issuance of equity awards 2   399  
Net cash used in financing activities (116,273 ) (107,668 )
 
Effect of exchange rate changes on cash and cash equivalents 2,864 (22,044 )
   
Net increase (decrease) in cash and cash equivalents 24,609 (24,880 )
Cash and cash equivalents at beginning of period 833,070   1,196,268  
Cash and cash equivalents at end of period $857,679   $1,171,388  
 
 
Net Sales, Gross Profit, and Operating Income by Segment (Unaudited)
(In thousands)
 
Reporting Segments
Outdoor Fitness Marine Auto Aviation Total
 
13-Weeks Ended March 26, 2016
 
Net sales $96,827 $142,418 $82,880 $195,599 $106,316 $624,040
Gross profit $58,932 $72,294 $44,149 $86,144 $78,331 $339,850
Operating income $27,885 $16,573 $10,293 $18,566 $30,486 $103,803
 
13-Weeks Ended March 28, 2015 (3)
 
Net sales $72,815 $130,994 $64,297 $219,226 $98,062 $585,394
Gross profit $49,064 $83,075 $35,513 $104,959 $71,511 $344,122
Operating income $23,770 $34,638 $4,566 $22,544 $26,180 $111,698
 
(3) Action camera related operating results for the 13-weeks ended March 28, 2015 have been recast from the Outdoor segment to
the Auto segment to conform to the current year presentation.
 
 
Garmin Ltd. And Subsidiaries
Net Sales by Geography (Unaudited)
(In thousands)
 
  13-Weeks Ended
Mar 26,   Mar 28, Yr over Yr
2016 2015 Change
Net sales $624,040 $585,394 7%
Americas 317,957 305,261 4%
EMEA 225,728 208,351 8%
APAC 80,355 71,782 12%
 
EMEA - Europe, Middle East and Africa; APAC - Asia Pacific
 

« Previous Page 1 | 2 | 3 | 4 | 5 | 6 | 7  Next Page »



Review Article Be the first to review this article
Airbus

Featured Video
Jobs
GIS Analyst II for Air Worldwide at Boston, MA
Business Partner Manager for Cityworks - Azteca Systems, LLC at Sandy, UT
Mechanical Engineer for IDEX Corporation at West Jordan,, UT
Senior Structural Engineer for Design Everest at San Francisco, CA
Upcoming Events
RoboUniverse San Diego at San Diego CA - Dec 14 - 15, 2016
DGI 2017 at QEII Centre London United Kingdom - Jan 23 - 25, 2017
Geospatial World Forum 2017 Hyderabad at Hyderabad International Convention Center P.O Bag 1101, Cyberabad Post Office Hyderabad Telangana India - Jan 23 - 25, 2017
Trimble
Teledyne Optech
University of Denver GIS Masters Degree Online
CADalog.com - Countless CAD add-ons, plug-ins and more.



Internet Business Systems © 2016 Internet Business Systems, Inc.
595 Millich Dr., Suite 216, Campbell, CA 95008
+1 (408)-337-6870 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering EDACafe - Electronic Design Automation TechJobsCafe - Technical Jobs and Resumes  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy Policy