Garmin Reports Strong Third Quarter Results on Sequential Growth in Revenues and Operating Margin Resulting in Year-over-Year EPS Growth

Earnings Call Information

The information for Garmin Ltd.’s earnings call is as follows:

When:   Wednesday, November 4, 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:

Email Contact

 

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 32553589. An archive of the live webcast will be available until December 7, 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, new products to be introduced 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, Forerunner and Edge are registered trademarks, and Dakota , Aera and nüvifone 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)  
September 26, December 27,
2009 2008
Assets
Current assets:
Cash and cash equivalents $ 1,011,763 $ 696,335
Marketable securities 17,643 12,886
Accounts receivable, net 573,847 741,321
Inventories, net 373,290 425,312
Deferred income taxes 52,824 49,825
Prepaid expenses and other current assets   49,569     58,746  
 
Total current assets 2,078,936 1,984,425
 
Property and equipment, net 444,172 445,252
 
Marketable securities 770,444 262,009
Restricted cash 2,044 1,941
Licensing agreements, net 8,885 16,013
Other intangible assets, net   212,070     214,941  
 
Total assets $ 3,516,551   $ 2,924,581  
 
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 185,668 $ 160,094
Salaries and benefits payable 32,787 34,241
Accrued warranty costs 83,081 87,408
Accrued sales program costs 56,318 90,337
Deferred revenue 48,621 680
Other accrued expenses 141,021 86,341
Income taxes payable 14,102 20,075
Dividend payable   150,447     -  
 
Total current liabilities 712,045 479,176
 
Deferred income taxes 8,447 4,070
Non-current income taxes 239,419 214,366
Other liabilities 1,242 1,115
 
Stockholders' equity:
Common stock, $0.005 par value, 1,000,000,000 shares authorized:

Issued and outstanding shares - 200,596,000 as of September 26, 2009 and 200,363,000 as of December 27, 2008

1,002 1,002
Additional paid-in capital 35,428 -
Retained earnings 2,537,598 2,262,503
Accumulated other comprehensive loss   (18,630 )   (37,651 )
 
Total stockholders' equity   2,555,398     2,225,854  
Total liabilities and stockholders' equity $ 3,516,551   $ 2,924,581  
 
Garmin Ltd. And Subsidiaries
Condensed Consolidated Statements of Income (Unaudited)
(In thousands, except per share information)
       
13-Weeks Ended 39-Weeks Ended
September 26, September 27, September 26, September 27,
2009 2008 2009 2008
 
Net sales $ 781,254 $ 870,355 $ 1,887,057 $ 2,445,830
 
Cost of goods sold   371,512   484,716     929,706   1,322,948
 
Gross profit 409,742 385,639 957,351 1,122,882
 
Advertising expense 45,853 50,742 103,101

147,199

Selling, general and administrative expense 71,499 67,785 193,461

194,181

Research and development expense   55,507   52,749     166,795  

155,904

Total operating expense   172,859   171,276     463,357   497,284
 
Operating income 236,883 214,363 493,994 625,598
 
Interest income 6,360 8,435 16,646 26,563
Foreign currency 11,752 (12,744 ) 4,478 4,818
Gain on sale of equity securities - - - 50,949
Other   1,684   1,358     1,325   2,091
Total other income (expense)   19,796   (2,951 )   22,449   84,421

 

Income before income taxes 256,679 211,412 516,443

710,019

 

Income tax provision   41,546   40,168     90,901   134,904
 
Net income $ 215,133 $ 171,244   $ 425,542 $ 575,115
 
Net income per share:
Basic $ 1.07 $ 0.83 $ 2.12 $ 2.71
Diluted $ 1.07 $ 0.82 $ 2.12 $ 2.68
 

Weighted average common shares outstanding:

Basic 200,546 206,634 200,398 212,299
Diluted 201,599 208,107 201,038 214,252
 
Cash dividends declared per common share $ 0.75 $ 0.75 $ 0.75 $ 0.75

 

Garmin Ltd. And Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In thousands)
 
  39-Weeks Ended  
September 26,   September 27,
2009 2008
Operating Activities:
Net income $ 425,542 $ 575,115

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation 39,945 33,797
Amortization 25,945 20,823
Gain on sale of property and equipment (6 ) (243 )
Provision for doubtful accounts 3,191 4,289
Deferred income taxes (1,083 ) 28,623
Foreign currency transaction gains/losses (26,936 ) 11,266
Provision for obsolete and slow moving inventories 17,309 29,439
Stock compensation expense 31,502 28,815
Realized gains on marketable securities 110 (50,884 )
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable 178,281 302,012
Inventories 43,340 (196,471 )
Other current assets (22,827 ) (977 )
Accounts payable 22,618 (175,715 )
Other current and non-current liabilities 87,216 (95,588 )
Income taxes payable 28,198 1,593
Purchase of licenses   (3,790 )   (3,191 )
Net cash provided by operating activities 848,555 512,703
 
Investing activities:
Purchases of property and equipment (35,441 ) (110,480 )
Proceeds from sale of property and equipment (7 ) 8
Purchase of intangible assets (7,461 ) (4,061 )
Purchase of marketable securities (626,155 ) (366,336 )
Redemption of marketable securities 110,751 444,102
Change in restricted cash (103 ) 106
Acquisitions, net of cash acquired   0     (50,497 )
Net cash used in investing activities (558,416 ) (87,158 )
 
Financing activities:

Proceeds from issuance of common stock from exercise of stock options

1,688 2,559

Proceeds from issuance of common stock from stock purchase plan

3,712 5,144
Stock repurchase (1,908 ) (624,688 )
Tax benefit related to stock option exercise   455  

2,309

 
Net cash provided by/(used in) financing activities 3,947 (614,676 )
 
Effect of exchange rate changes on cash and cash equivalents 21,342 2,982
     
Net increase/(decrease) in cash and cash equivalents 315,428 (186,149 )
Cash and cash equivalents at beginning of period   696,335     707,689  
Cash and cash equivalents at end of period $ 1,011,763   $ 521,540  

 

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 September 26, 2009
 
Net sales $ 132,174 $ 45,426 $ 545,707 $ 57,947 $ 781,254
Gross profit $ 82,886 $ 24,420 $ 263,653 $ 38,783 $ 409,742
Operating income $ 53,430 $ 11,783 $ 160,053 $ 11,617 $ 236,883
 
13-Weeks Ended September 27, 2008
 
Net sales $ 118,614 $ 44,048 $ 626,506 $ 81,187 $ 870,355
Gross profit $ 74,487 $ 21,714 $ 236,339 $ 53,099 $ 385,639
Operating income $ 52,136 $ 10,606 $ 124,359 $ 27,262 $ 214,363
                                     
 

39-Weeks Ended

September 26, 2009

 
Net sales $ 320,187 $ 143,641 $ 1,242,011 $ 181,218 $ 1,887,057
Gross profit $ 204,526 $ 83,078 $ 542,910 $ 126,837 $ 957,351
Operating income $ 132,351 $ 43,696 $ 271,370 $ 46,577 $ 493,994
 

39-Weeks Ended

September 27, 2008

 
Net sales $ 308,255 $ 171,232 $ 1,710,248 $ 256,095 $ 2,445,830
Gross profit $ 179,834 $ 94,296 $ 675,953 $ 172,799 $ 1,122,882
Operating income $ 116,892 $ 52,510 $ 361,190 $ 95,006 $ 625,598

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



Review Article Be the first to review this article
Harris


Featured Video
Jobs
Business Partner Manager for Cityworks - Azteca Systems, LLC at Sandy, UT
GIS Analyst II for Air Worldwide at Boston, MA
Senior Structural Engineer for Design Everest at San Francisco, CA
Mechanical Engineer for IDEX Corporation at West Jordan,, UT
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
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