Garmin Reports First Quarter Revenue and Earnings Growth

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Garmin Ltd. And Subsidiaries
Condensed Consolidated Statements of Income (Unaudited)
(In thousands, except per share information)

	13-Weeks Ended
	April 1,			March 26,
	2017			2016
Net sales	$	638,546		$	624,040

Cost of goods sold		266,423			284,190

Gross profit		372,123			339,850

Advertising expense		31,525			32,233
Selling, general and administrative expense		102,051			95,610
Research and development expense		122,202			108,204
Total operating expense		255,778			236,047

Operating income		116,345			103,803

Other income (expense):
Interest income		8,444			7,428
Foreign currency losses		(37,497	)		(4,839	)
Other income		400			1,155
Total other income (expense)		(28,653	)		3,744

Income before income taxes		87,692			107,547

Income tax (benefit) provision		(150,120	)		19,455

Net income	$	237,812		$	88,092

Net income per share:
Basic	$	1.26		$	0.46
Diluted	$	1.26		$	0.46

Weighted average common shares outstanding:
Basic		188,333			189,497
Diluted		189,031			189,651


Garmin Ltd. And Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except per share information)

	(Unaudited)
	April 1,			December 31,
	2017			2016
Assets
Current assets:
Cash and cash equivalents	$	833,577		$	846,883
Marketable securities		258,400			266,952
Accounts receivable, net		391,345			527,062
Inventories, net		533,151			484,821
Deferred costs		46,124			47,395
Prepaid expenses and other current assets		94,313			89,903
Total current assets		2,156,910			2,263,016

Property and equipment, net		503,840			482,878

Marketable securities		1,211,141			1,213,285
Restricted cash		117			113
Noncurrent deferred income tax		283,440			110,293
Noncurrent deferred costs		57,579			56,151
Intangible assets, net		303,414			305,002
Other assets		84,240			94,395
Total assets	$	4,600,681		$	4,525,133

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	136,901		$	172,404
Salaries and benefits payable		69,892			88,818
Accrued warranty costs		34,427			37,233
Accrued sales program costs		46,468			80,953
Deferred revenue		140,452			146,564
Accrued royalty costs		26,006			36,523
Accrued advertising expense		17,039			37,440
Other accrued expenses		79,986			70,469
Income taxes payable		20,288			16,163
Dividend payable		-			96,168
Total current liabilities		571,459			782,735

Deferred income taxes		62,593			61,220
Non-current income taxes		124,265			121,174
Non-current deferred revenue		138,665			140,407
Other liabilities		1,637			1,594

Stockholders' equity:
Shares, CHF 0.10 par value, 198,077 shares authorized and issued; 188,156 shares outstanding at April 1, 2017 and 188,565 shares outstanding at December 31, 2016		17,979			17,979
Additional paid-in capital		1,831,824			1,836,047
Treasury stock		(474,859	)		(455,964	)
Retained earnings		2,294,654			2,056,702
Accumulated other comprehensive income		32,464			(36,761	)
Total stockholders' equity		3,702,062			3,418,003
Total liabilities and stockholders' equity	$	4,600,681		$	4,525,133


Garmin Ltd. And Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In thousands)

		13-Weeks Ended
		April 1,			March 26,
		2017			2016
Operating activities:
Net income		$	237,812		$	88,092
Adjustments to reconcile net income to net cash
provided by operating activities:
	Depreciation		14,658			13,078
	Amortization		7,070			7,115
	Loss on sale or disposal of property and equipment		8			38
	Provision for doubtful accounts		(294	)		285
	Deferred income taxes		(171,523	)		3,906
	Unrealized foreign currency loss (gain)		42,281			(5,412	)
	Provision for obsolete and slow moving inventories		7,193			8,026
	Stock compensation expense		8,206			8,172
	Realized loss (gain) on marketable securities		291			(452	)
Changes in operating assets and liabilities:
	Accounts receivable		135,253			130,036
	Inventories		(41,398	)		(18,873	)
	Other current and non-current assets		7,534			(3,937	)
	Accounts payable		(44,180	)		(45,515	)
	Other current and non-current liabilities		(81,038	)		(31,606	)
	Deferred revenue		(8,375	)		(12,337	)
	Deferred cost		(46	)		(2,496	)
	Income taxes payable		6,943			(8,733	)
Net cash provided by operating activities			120,395			129,387

Investing activities:
Purchases of property and equipment			(25,538	)		(13,908	)
Proceeds from sale of property and equipment			7			-
Purchase of intangible assets			(1,222	)		(1,716	)
Purchase of marketable securities			(96,049	)		(151,070	)
Redemption of marketable securities			109,526			237,464
Change in restricted cash			(4	)		(2	)
Acquisitions, net of cash acquired			-			(62,137	)
Net cash (used in) provided by investing activities			(13,280	)		8,631

Financing activities:
Dividends paid			(96,028	)		(96,566	)
Purchase of treasury stock under share repurchase plan			(27,873	)		(19,796	)
Purchase of treasury stock related to equity awards			(3,452	)		(16	)
Proceeds from issuance of treasury stock related to equity awards			-			103
Tax benefit from issuance of equity awards			-			2
Net cash used in financing activities			(127,353	)		(116,273	)

Effect of exchange rate changes on cash and cash equivalents			6,932			2,864

Net increase (decrease) in cash and cash equivalents			(13,306	)		24,609
Cash and cash equivalents at beginning of period			846,883			833,070
Cash and cash equivalents at end of period		$	833,577		$	857,679


Garmin Ltd. And Subsidiaries
Net Sales, Gross Profit, and Operating Income by Segment (Unaudited)
(In thousands)

	Reportable Segments
	Marine		Outdoor		Aviation		Fitness		Auto		Total
13-Weeks Ended April 1, 2017

Net sales	$	104,445	$	115,875	$	122,871	$	137,831	$	157,524	$	638,546
Gross profit	$	59,747	$	73,469	$	91,233	$	77,741	$	69,933	$	372,123
Operating income	$	18,145	$	34,451	$	38,608	$	18,472	$	6,669	$	116,345


13-Weeks Ended March 26, 2016

Net sales	$	82,880	$	96,827	$	106,316	$	142,418	$	195,599	$	624,040
Gross profit	$	44,149	$	58,932	$	78,331	$	72,294	$	86,144	$	339,850
Operating income	$	10,293	$	27,885	$	30,486	$	16,573	$	18,566	$	103,803


Garmin Ltd. And Subsidiaries
Net Sales by Geography (Unaudited)
(In thousands)

	13-Weeks Ended
	April 1,		March 26,		Yr over Yr
	2017		2016		Change
Net sales	$	638,546	$	624,040	2	%
Americas		320,189		317,957	1	%
EMEA		226,795		225,728	0	%
APAC		91,562		80,355	14	%

EMEA - Europe, Middle East and Africa; APAC - Asia Pacific and Australian Continent

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