The information for Garmin Ltd.’s earnings call is as follows:
| When: | Wednesday, October 31, 2012 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 (877) 303-6919 | |
| Contact: | ||
An archive of the live webcast will be available until December 31, 2012 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 2012, the Company’s expected segment revenue growth rate, margins, new products to be introduced in 2012 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 31, 2011 filed by Garmin with the Securities and Exchange Commission (Commission file number 0-31983). A copy of Garmin’s 2011 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 Switzerland, 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, Forerunner, Tri-Tronics and Nexus are registered trademarks and Alpha and fēnix 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) | ||||||||
| Sept 29, | December 31, | |||||||
| 2012 | 2011 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1,247,073 | $ | 1,287,160 | ||||
| Marketable securities | 122,448 | 111,153 | ||||||
| Accounts receivable, net | 508,725 | 607,450 | ||||||
| Inventories, net | 443,416 | 397,741 | ||||||
| Deferred income taxes | 50,457 | 42,957 | ||||||
| Deferred costs | 50,047 | 40,033 | ||||||
| Prepaid expenses and other current assets | 50,882 | 69,790 | ||||||
| Total current assets | 2,473,048 | 2,556,284 | ||||||
| Property and equipment, net | 407,853 | 417,105 | ||||||
| Marketable securities | 1,349,176 | 1,097,002 | ||||||
| Restricted cash | 830 | 771 | ||||||
| Licensing fees, net | 11,882 | 5,517 | ||||||
| Noncurrent deferred income tax | 107,190 | 107,190 | ||||||
| Noncurrent deferred costs | 39,750 | 40,823 | ||||||
| Other intangible assets, net | 241,013 | 246,646 | ||||||
| Total assets | $ | 4,630,742 | $ | 4,471,338 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 147,866 | $ | 164,010 | ||||
| Salaries and benefits payable | 56,533 | 45,964 | ||||||
| Accrued warranty costs | 39,147 | 46,773 | ||||||
| Accrued sales program costs | 31,952 | 52,262 | ||||||
| Deferred revenue | 232,715 | 188,987 | ||||||
| Accrued license fees | 60,521 | 99,025 | ||||||
| Accrued advertising expense | 19,190 | 31,915 | ||||||
| Other accrued expenses | 63,841 | 67,912 | ||||||
| Deferred income taxes | 6,382 | 5,782 | ||||||
| Income taxes payable | 50,076 | 77,784 | ||||||
| Dividend payable | 175,331 | 77,865 | ||||||
| Total current liabilities | 883,554 | 858,279 | ||||||
| Deferred income taxes | 7,120 | 4,951 | ||||||
| Non-current income taxes | 171,614 | 161,904 | ||||||
| Non-current deferred revenue | 179,672 | 188,132 | ||||||
| Other liabilities | 1,035 | 1,491 | ||||||
| Stockholders' equity: | ||||||||
|
Shares, CHF 10 par value, 208,077,418 shares authorized and issued; 194,970,003 shares outstanding at September 29, 2012; and 194,662,617 shares outstanding at December 31, 2011; |
1,797,435 | 1,797,435 | ||||||
| Additional paid-in capital | 86,513 | 61,869 | ||||||
| Treasury stock | (95,322 | ) | (103,498 | ) | ||||
| Retained earnings | 1,477,504 | 1,413,582 | ||||||
| Accumulated other comprehensive income | 121,617 | 87,193 | ||||||
| Total stockholders' equity | 3,387,747 | 3,256,581 | ||||||
| Total liabilities and stockholders' equity | $ | 4,630,742 | $ | 4,471,338 | ||||
| Garmin Ltd. And Subsidiaries | ||||||||||||||||
| Condensed Consolidated Statements of Income (Unaudited) | ||||||||||||||||
| (In thousands, except per share information) | ||||||||||||||||
| 13-Weeks Ended | 39-Weeks Ended | |||||||||||||||
| Sept 29, | Sept 24, | Sept 29, | Sept 24, | |||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Net sales | $ | 672,376 | $ | 666,993 | $ | 1,947,127 | $ | 1,848,925 | ||||||||
| Cost of goods sold | 313,321 | 322,662 | 882,501 | 944,120 | ||||||||||||
| Gross profit | 359,055 | 344,331 | 1,064,626 | 904,805 | ||||||||||||
| Advertising expense | 30,102 | 35,310 | 91,952 | 89,364 | ||||||||||||
| Selling, general and administrative expense | 86,402 | 88,751 | 275,763 | 247,833 | ||||||||||||
| Research and development expense | 82,489 | 72,936 | 242,510 | 213,930 | ||||||||||||
| Total operating expense | 198,993 | 196,997 | 610,225 | 551,127 | ||||||||||||
| Operating income | 160,062 | 147,334 | 454,401 | 353,678 | ||||||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | 7,987 | 8,464 | 26,278 | 23,318 | ||||||||||||
| Foreign currency gains (losses) | (6,364 | ) | 14,893 | (16,124 | ) | 12,422 | ||||||||||
| Other | 942 | 4,345 | 5,064 | 9,616 | ||||||||||||
| Total other income (expense) | 2,565 | 27,702 | 15,218 | 45,356 | ||||||||||||
| Income before income taxes | 162,627 | 175,036 | 469,619 | 399,034 | ||||||||||||
| Income tax provision | 22,279 | 24,655 | 56,510 | 43,694 | ||||||||||||
| Net income | $ | 140,348 | $ | 150,381 | $ | 413,109 | $ | 355,340 | ||||||||
| Net income per share: | ||||||||||||||||
| Basic | $ | 0.72 | $ | 0.77 | $ | 2.12 | $ | 1.83 | ||||||||
| Diluted | $ | 0.72 | $ | 0.77 | $ | 2.11 | $ | 1.82 | ||||||||
|
Weighted average common shares outstanding: |
||||||||||||||||
| Basic | 194,912 | 194,112 | 194,834 | 194,028 | ||||||||||||
| Diluted | 196,161 | 194,828 | 196,171 | 194,809 | ||||||||||||
| Garmin Ltd. And Subsidiaries | ||||||||
| Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||||||
| (In thousands) | ||||||||
| 39-Weeks Ended | ||||||||
| Sept 29, | Sept 24, | |||||||
| 2012 | 2011 | |||||||
| Operating Activities: | ||||||||
| Net income | $ | 413,109 | $ | 355,340 | ||||
|
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
| Depreciation | 40,025 | 40,558 | ||||||
| Amortization | 22,905 | 19,772 | ||||||
| Gain on sale of property and equipment | (17 | ) | (2,407 | ) | ||||
| Provision for doubtful accounts | 2,786 | 6,227 | ||||||
| Deferred income taxes | (7,384 | ) | 12,429 | |||||
| Unrealized foreign currency losses/(gains) | 24,974 | (5,366 | ) | |||||
| Provision for obsolete and slow moving inventories | 3,795 | 2,590 | ||||||
| Stock compensation expense | 26,364 | 27,258 | ||||||
| Realized gains on marketable securities | (1,647 | ) | (5,633 | ) | ||||
| Changes in operating assets and liabilities, net of acquisitions: | ||||||||
| Accounts receivable | 103,039 | 256,656 | ||||||
| Inventories | (44,761 | ) | (58,655 | ) | ||||
| Other current assets | 21,007 | (36,713 | ) | |||||
| Accounts payable | (20,271 | ) | (5,603 | ) | ||||
| Other current and non-current liabilities | (63,839 | ) | (72,349 | ) | ||||
| Deferred revenue | 35,277 | 115,096 | ||||||
| Deferred cost | (8,561 | ) | (23,175 | ) | ||||
| Income taxes payable | (28,098 | ) | (21,987 | ) | ||||
| License fees | (8,669 | ) | (6,562 | ) | ||||
| Net cash provided by operating activities | 510,034 | 597,476 | ||||||
| Investing activities: | ||||||||
| Purchases of property and equipment | (26,881 | ) | (26,523 | ) | ||||
| Proceeds from sale of property and equipment | 25 | - | ||||||
| Purchase of intangible assets | (5,174 | ) | (8,611 | ) | ||||
| Purchase of marketable securities | (1,004,021 | ) | (835,965 | ) | ||||
| Redemption of marketable securities | 735,521 | 599,740 | ||||||
| Change in restricted cash | (59 | ) | (122 | ) | ||||
| Acquisitions, net of cash acquired | (4,010 | ) | (52,688 | ) | ||||
| Net cash used in investing activities | (304,599 | ) | (324,169 | ) | ||||
| Financing activities: | ||||||||
| Dividends paid | (253,386 | ) | (154,835 | ) | ||||
| Issuance of treasury stock related to equity awards | 10,971 | 16,919 | ||||||
| Tax benefit from issuance of equity awards | 1,810 | 1,542 | ||||||
| Purchase of treasury stock | (6,542 | ) | (11,675 | ) | ||||
| Net cash used in financing activities | (247,147 | ) | (148,049 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | 1,625 | 3,212 | ||||||
| Net increase/(decrease) in cash and cash equivalents | (40,087 | ) | 128,470 | |||||
| Cash and cash equivalents at beginning of period | 1,287,160 | 1,260,936 | ||||||
| Cash and cash equivalents at end of period | $ | 1,247,073 | $ | 1,389,406 | ||||
| Garmin Ltd. And Subsidiaries | ||||||||||||||||||
| Revenue, Gross Profit, and Operating Income by Segment (Unaudited) | ||||||||||||||||||
| Reporting Segments | ||||||||||||||||||
| Auto/ | ||||||||||||||||||
|
Outdoor |
Fitness |
Marine |
Mobile |
Aviation |
Total |
|||||||||||||
| 13-Weeks Ended September 29, 2012 | ||||||||||||||||||
| Net sales | $ | 105,572 | $ | 64,788 | $ | 44,766 | $ | 384,393 | $ | 72,857 | $ | 672,376 | ||||||
| Gross profit | $ | 72,420 | $ | 41,885 | $ | 28,572 | $ | 166,007 | $ | 50,171 | $ | 359,055 | ||||||
| Operating income | $ | 48,384 | $ | 21,219 | $ | 8,378 | $ | 65,165 | $ | 16,916 | $ | 160,062 | ||||||
| 13-Weeks Ended September 24, 2011 | ||||||||||||||||||
| Net sales | $ | 94,720 | $ | 69,030 | $ | 48,055 | $ | 384,150 | $ | 71,038 | $ | 666,993 | ||||||
| Gross profit | $ | 62,387 | $ | 41,476 | $ | 26,378 | $ | 166,941 | $ | 47,149 | $ | 344,331 | ||||||
| Operating income | $ | 41,331 | $ | 20,452 | $ | 9,870 | $ | 56,215 | $ | 19,466 | $ | 147,334 | ||||||
| 39-Weeks Ended September 29, 2012 | ||||||||||||||||||
| Net sales | $ | 283,230 | $ | 217,815 | $ | 168,620 | $ | 1,055,786 | $ | 221,676 | $ | 1,947,127 | ||||||
| Gross profit | $ | 186,574 | $ | 142,045 | $ | 105,205 | $ | 476,761 | $ | 154,041 | $ | 1,064,626 | ||||||
| Operating income | $ | 118,032 | $ | 76,016 | $ | 35,584 | $ | 170,208 | $ | 54,561 | $ | 454,401 | ||||||
| 39-Weeks Ended September 24, 2011 | ||||||||||||||||||
| Net sales | $ | 242,178 | $ | 203,411 | $ | 178,479 | $ | 1,011,405 | $ | 213,452 | $ | 1,848,925 | ||||||
| Gross profit | $ | 156,689 | $ | 120,770 | $ | 103,784 | $ | 378,280 | $ | 145,282 | $ | 904,805 | ||||||
| Operating income | $ | 101,805 | $ | 61,293 | $ | 48,360 | $ | 83,087 | $ | 59,133 | $ | 353,678 | ||||||
