Garmin Reports Solid Fiscal 2016 Revenue and Operating Income Growth

In addition, the board of directors has established March 31, 2017 as the payment date and March 15, 2017 as the record date for the final dividend installment of $0.51 per share, per the prior approval at the 2016 annual shareholders’ meeting. The first, second and third payments of $0.51 per share were made on June 30, 2016, September 30, 2016, and December 30, 2016, respectively.

Webcast Information/Forward-Looking Statements:

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

        When:     Wednesday, February 22, 2017 at 10:30 a.m. Eastern
Where:

http://www.garmin.com/en-US/company/investors/events/

How: Simply log on to the web at the address above or call to listen in at 855-757-3897
 

An archive of the live webcast will be available until April 27, 2017 on the Garmin website at 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 that are commonly identified by words such as “would,” “may,” “expects,” “estimates,” “plans,” “intends,” “projects,” and other words or phrases with similar meanings. Any statements regarding the Company’s GAAP and pro forma estimated earnings, EPS, tax rate and revenue for fiscal 2017, the Company’s expected segment revenue growth rates, margins, currency movements, expenses, pricing, new products to be introduced in 2017 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 and uncertainties 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, 2016 filed by Garmin with the Securities and Exchange Commission (Commission file number 0-31983). A copy of Garmin’s 2016 Form 10-K can be downloaded from http://www.garmin.com/aboutGarmin/invRelations/finReports.html.

Garmin, the Garmin logo, the Garmin delta, DeLorme, fēnix, GPSMAP and vívofit, are trademarks of Garmin Ltd. or its subsidiaries and are registered in one or more countries, including the U.S.; Garmin Elevate and QuickFit 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 Statements of Income (Unaudited)
(In thousands, except per share information)
 
               
14-Weeks Ended     13-Weeks Ended 53-Weeks Ended     52-Weeks Ended
December 31, December 26, December 31, December 26,
2016     2015 2016     2015
Net sales $860,767 $781,358 $3,018,665 $2,820,270
 
Cost of goods sold 389,985   368,215   1,339,095   1,281,566  
 
Gross profit 470,782 413,143 1,679,570 1,538,704
 
Advertising expense 67,702 56,814 177,143 167,166
Selling, general and administrative expense 114,312 104,556 410,558 394,914
Research and development expense 128,952   106,011   467,960   427,043  
Total operating expense 310,966   267,381   1,055,661   989,123  
 
Operating income 159,816 145,762 623,909 549,581
 
Other income (expense):
Interest income 9,296 7,358 33,406 29,653
Foreign currency losses (1,648 ) (9,288 ) (31,651 ) (23,465 )
Other income 1,093   8,711   4,006   11,418  
Total other income (expense) 8,741   6,781   5,761   17,606  
 
Income before income taxes 168,557 152,543 629,670 567,187
 
Income tax provision 31,952   20,160   118,856   110,960  
 
Net income $136,605   $132,383   $510,814   $456,227  
 
Net income per share:
Basic $0.73 $0.70 $2.71 $2.39
Diluted $0.72 $0.70 $2.70 $2.39

 

Weighted average common shares outstanding:

Basic 188,233 189,317 188,818 190,631
Diluted 189,171 189,847 189,343 191,107
 
 
Garmin Ltd. And Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except per share information)
     
(Unaudited)    
December 31, December 26,
2016     2015
Assets
Current assets:
Cash and cash equivalents $846,883 $833,070
Marketable securities 266,952 215,161
Accounts receivable, net 527,062 531,481
Inventories, net 484,821 500,554
Deferred costs 47,395 49,176
Prepaid expenses and other current assets 89,903   81,645  
Total current assets 2,263,016 2,211,087
 
Property and equipment, net 482,878 446,089
 
Marketable securities 1,213,285 1,343,387
Restricted cash 113 259
Noncurrent deferred income tax 110,293 116,518
Noncurrent deferred costs 56,151 38,769
Intangible assets, net 305,002 245,552
Other assets 94,395   97,730  
Total assets $4,525,133   $4,499,391  
 
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $172,404 $178,905
Salaries and benefits payable 88,818 70,601
Accrued warranty costs 37,233 30,449
Accrued sales program costs 80,953 67,613
Deferred revenue 146,564 164,982
Accrued royalty costs 36,523 30,310
Accrued advertising expense 37,440 33,547
Other accrued expenses 70,469 74,926
Income taxes payable 16,163 21,674
Dividend payable 96,168   192,991  
Total current liabilities 782,735 865,998
 
Deferred income taxes 61,220 56,210
Non-current income taxes 121,174 101,689
Non-current deferred revenue 140,407 128,731
Other liabilities 1,594 1,637
 
Stockholders' equity:

Shares, CHF 0.10 par value, 198,077 shares authorized and issued; and 188,565 shares outstanding at December 31, 2016

Shares, CHF 10.00 par value, 208,077 shares authorized and issued; and 189,722 shares outstanding at December 26, 2015

17,979 1,797,435
Additional paid-in capital 1,836,047 62,239
Treasury stock (455,964 ) (414,637 )
Retained earnings 2,056,702 1,930,517
Accumulated other comprehensive income (36,761 ) (30,428 )
Total stockholders' equity 3,418,003   3,345,126  
Total liabilities and stockholders' equity $4,525,133   $4,499,391  
 
 
Garmin Ltd. And Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In thousands)
        53-Weeks Ended     52-Weeks Ended
Dec 31,     Dec 26,
2016 2015
Operating activities:
Net income $510,814 $456,227

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

Depreciation 55,796 51,311
Amortization 30,544 27,049
Loss (gain) on sale or disposal of property and equipment (503 ) (198 )
Provision for doubtful accounts 4,136 (2,521 )
Deferred income taxes 1,699 5,897
Unrealized foreign currency loss 13,387 37,931
Provision for obsolete and slow moving inventories 26,458 23,257
Stock compensation expense 41,250 26,290
Realized gain on marketable securities (822 ) (55 )
Changes in operating assets and liabilities:
Accounts receivable 9,000 22,473
Inventories (2,455 ) (121,718 )
Other current and non-current assets 2,234 (107,360 )
Accounts payable (11,496 ) 36,079
Other current and non-current liabilities 44,766 20,742
Deferred revenue (6,363 ) (43,338 )
Deferred cost (15,780 ) (585 )
Income taxes payable 3,017   (151,014 )
Net cash provided by operating activities 705,682 280,467
 
Investing activities:
Purchases of property and equipment (90,960 ) (80,592 )
Proceeds from sale of property and equipment 676 7,921
Purchase of intangible assets (5,715 ) (3,889 )
Purchase of marketable securities (905,089 ) (915,921 )
Redemption of marketable securities 957,350 919,141
Proceeds from repayment on loan receivable - -
Change in restricted cash 146 48
Acquisitions, net of cash acquired (77,945 ) (38,687 )
Net cash (used in) provided by investing activities (121,537 ) (111,979 )
 
Financing activities:
Dividends paid (481,452 ) (378,117 )
Purchase of treasury stock under share repurchase plan (93,233 ) (131,413 )
Purchase of treasury stock related to equity awards (7,331 ) (5,586 )
Proceeds from issuance of treasury stock related to equity awards 18,648 17,073
Tax benefit from issuance of equity awards 1,692   (2,049 )
Net cash used in financing activities (561,676 ) (500,092 )
 
Effect of exchange rate changes on cash and cash equivalents (8,656 ) (31,594 )
   
Net increase (decrease) in cash and cash equivalents 13,813 (363,198 )
Cash and cash equivalents at beginning of period 833,070   1,196,268  
Cash and cash equivalents at end of period $846,883   $833,070  
 
 
Garmin Ltd. And Subsidiaries
Net Sales, Gross Profit, and Operating Income by Segment (Unaudited)
(In thousands)
    Reporting Segments

Outdoor

   

Fitness

   

Marine

   

Auto

   

Aviation

   

Total

 
14-Weeks Ended December 31, 2016
 
Net sales $175,397 $274,052 $67,458 $226,595 $117,265 $860,767
Gross profit $107,852 $141,742 $35,155 $95,977 $90,056 $470,782
Operating income $58,314 $46,175 $2,995 $19,363 $32,969 $159,816
 
13-Weeks Ended December 26, 2015 (3)
 
Net sales $119,884 $228,740 $56,454 $272,221 $104,059 $781,358
Gross profit $73,353 $117,344 $30,289 $113,257 $78,900 $413,143
Operating income $40,935 $40,288 ($5,593 ) $36,182 $33,950 $145,762
 
 
53-Weeks Ended December 31, 2016
 
Net sales $546,326 $818,486 $331,947 $882,558 $439,348 $3,018,665
Gross profit $340,504 $437,205 $183,709 $388,747 $329,405 $1,679,570
Operating income $184,035 $160,596 $52,167 $102,347 $124,764 $623,909

 

 

 

 

 

 

52-Weeks Ended December 26, 2015 (3)
 
Net sales $411,184 $661,599 $286,778 $1,062,091 $398,618 $2,820,270
Gross profit $254,878 $366,139 $158,493 $464,480 $294,714 $1,538,704
Operating income $139,070 $134,574 $28,611 $136,069 $111,257 $549,581

(3)

 

Action camera related operating results for the 13-weeks and 52-weeks ended December 26, 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)
    14-Weeks Ended     13-Weeks Ended           53-Weeks Ended     52-Weeks Ended      
Dec 31,     Dec 26,     Yr over Yr Dec 31,     Dec 26,     Yr over Yr
2016 2015     Change 2016 2015     Change
Net sales $860,767 $781,358 10 % $3,018,665 $2,820,270 7 %
Americas 447,537 412,581 8 % 1,521,147 1,469,243 4 %
EMEA 300,764 268,787 12 % 1,110,969 1,013,139 10 %
APAC 112,466 99,990 12 % 386,549 337,888 14 %

« Previous Page 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8  Next Page »



© 2024 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us
ShareCG™ is a trademark of Internet Business Systems, Inc.

Report a Bug Report Abuse Make a Suggestion About Privacy Policy Contact Us User Agreement Advertise