Garmin, the Garmin logo and the Garmin delta are trademarks of Garmin Ltd. or its subsidiaries and are registered in one or more countries, including the U.S. Panoptix LiveScope is a trademark 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 |
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Condensed Consolidated Statements of Income (Unaudited) |
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(In thousands, except per share information) |
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|
|
|
|
|
|
|
|
|
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13-Weeks Ended |
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|
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March 28, |
|
|
March 30, |
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||
|
|
2020 |
|
|
2019 |
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||
Net sales |
|
$ |
856,108 |
|
|
$ |
766,050 |
|
|
|
|
|
|
|
|
|
|
Cost of goods sold |
|
|
349,168 |
|
|
|
314,352 |
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
506,940 |
|
|
|
451,698 |
|
|
|
|
|
|
|
|
|
|
Advertising expense |
|
|
26,880 |
|
|
|
27,615 |
|
| Selling, general and administrative expense |
|
|
137,186 |
|
|
|
126,781 |
|
| Research and development expense |
|
|
165,392 |
|
|
|
145,919 |
|
| Total operating expense |
|
|
329,458 |
|
|
|
300,315 |
|
|
|
|
|
|
|
|
|
|
|
| Operating income |
|
|
177,482 |
|
|
|
151,383 |
|
|
|
|
|
|
|
|
|
|
|
| Other income (expense): |
|
|
|
|
|
|
|
|
| Interest income |
|
|
12,026 |
|
|
|
13,704 |
|
| Foreign currency (losses) gains |
|
|
(15,423 |
) |
|
|
314 |
|
| Other income |
|
|
3,550 |
|
|
|
864 |
|
| Total other income (expense) |
|
|
153 |
|
|
|
14,882 |
|
|
|
|
|
|
|
|
|
|
|
| Income before income taxes |
|
|
177,635 |
|
|
|
166,265 |
|
|
|
|
|
|
|
|
|
|
|
| Income tax provision |
|
|
16,455 |
|
|
|
26,092 |
|
|
|
|
|
|
|
|
|
|
|
| Net income |
|
$ |
161,180 |
|
|
$ |
140,173 |
|
|
|
|
|
|
|
|
|
|
|
| Net income per share: |
|
|
|
|
|
|
|
|
| Basic |
|
$ |
0.84 |
|
|
$ |
0.74 |
|
| Diluted |
|
$ |
0.84 |
|
|
$ |
0.74 |
|
|
|
|
|
|
|
|
|
|
|
| Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
| Basic |
|
|
190,803 |
|
|
|
189,601 |
|
| Diluted |
|
|
191,684 |
|
|
|
190,599 |
|
| Garmin Ltd. And Subsidiaries |
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| Condensed Consolidated Balance Sheets (Unaudited) |
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| (In thousands, except per share information) |
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|
|
|
|
|
|
|
|
|
|
|
|
|
March 28, 2020 |
|
|
December 28, 2019 |
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||
| Assets |
|
|
|
|
|
|
|
|
| Current assets: |
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
$ |
1,048,604 |
|
|
$ |
1,027,567 |
|
| Marketable securities |
|
|
391,646 |
|
|
|
376,463 |
|
| Accounts receivable, net |
|
|
500,242 |
|
|
|
706,763 |
|
| Inventories |
|
|
790,180 |
|
|
|
752,908 |
|
| Deferred costs |
|
|
23,650 |
|
|
|
25,105 |
|
| Prepaid expenses and other current assets |
|
|
174,564 |
|
|
|
169,044 |
|
| Total current assets |
|
|
2,928,886 |
|
|
|
3,057,850 |
|
|
|
|
|
|
|
|
|
|
|
| Property and equipment, net |
|
|
754,549 |
|
|
|
728,921 |
|
| Operating lease right-of-use assets |
|
|
66,497 |
|
|
|
63,589 |
|
|
|
|
|
|
|
|
|
|
|
| Restricted cash |
|
|
283 |
|
|
|
71 |
|
| Marketable securities |
|
|
1,199,613 |
|
|
|
1,205,475 |
|
| Deferred income taxes |
|
|
263,687 |
|
|
|
268,518 |
|
| Noncurrent deferred costs |
|
|
21,436 |
|
|
|
23,493 |
|
| Intangible assets, net |
|
|
658,777 |
|
|
|
659,629 |
|
| Other assets |
|
|
160,265 |
|
|
|
159,253 |
|
| Total assets |
|
$ |
6,053,993 |
|
|
$ |
6,166,799 |
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
|
|
|
| Accounts payable |
|
$ |
200,281 |
|
|
$ |
240,831 |
|
| Salaries and benefits payable |
|
|
110,611 |
|
|
|
128,426 |
|
| Accrued warranty costs |
|
|
39,368 |
|
|
|
39,758 |
|
| Accrued sales program costs |
|
|
58,678 |
|
|
|
112,578 |
|
| Deferred revenue |
|
|
89,817 |
|
|
|
94,562 |
|
| Accrued royalty costs |
|
|
5,259 |
|
|
|
15,401 |
|
| Accrued advertising expense |
|
|
19,752 |
|
|
|
35,142 |
|
| Other accrued expenses |
|
|
94,760 |
|
|
|
95,060 |
|
| Income taxes payable |
|
|
54,466 |
|
|
|
56,913 |
|
| Dividend payable |
|
|
108,880 |
|
|
|
217,262 |
|
| Total current liabilities |
|
|
781,872 |
|
|
|
1,035,933 |
|
|
|
|
|
|
|
|
|
|
|
| Deferred income taxes |
|
|
117,792 |
|
|
|
114,754 |
|
| Noncurrent income taxes |
|
|
104,853 |
|
|
|
105,771 |
|
| Noncurrent deferred revenue |
|
|
61,992 |
|
|
|
67,329 |
|
| Noncurrent operating lease liabilities |
|
|
52,834 |
|
|
|
49,238 |
|
| Other liabilities |
|
|
250 |
|
|
|
278 |
|
|
|
|
|
|
|
|
|
|
|
| Stockholders’ equity: |
|
|
|
|
|
|
|
|
| Shares, CHF 0.10 par value, 198,077 shares authorized and issued; 191,017 shares outstanding at March 28, 2020 and 190,686 shares outstanding at December 28, 2019 |
|
|
17,979 |
|
|
|
17,979 |
|
| Additional paid-in capital |
|
|
1,830,052 |
|
|
|
1,835,622 |
|
| Treasury stock |
|
|
(335,491 |
) |
|
|
(345,040 |
) |
| Retained earnings |
|
|
3,390,053 |
|
|
|
3,229,061 |
|
| Accumulated other comprehensive income |
|
|
31,807 |
|
|
|
55,874 |
|
| Total stockholders’ equity |
|
|
4,934,400 |
|
|
|
4,793,496 |
|
| Total liabilities and stockholders’ equity |
|
$ |
6,053,993 |
|
|
$ |
6,166,799 |
|
| Garmin Ltd. And Subsidiaries |
|
|||||||
| Condensed Consolidated Statements of Cash Flows (Unaudited) |
|
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| (In thousands) |
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|
|
|
|
|
|
|
|
|
|
|
|
13-Weeks Ended |
|
|||||
|
|
|
March 28, 2020 |
|
|
March 30, 2019 |
|
||
| Operating Activities: |
|
|
|
|
|
|
|
|
| Net income |
|
$ |
161,180 |
|
|
$ |
140,173 |
|
| Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
| Depreciation |
|
|
18,198 |
|
|
|
16,832 |
|
| Amortization |
|
|
10,006 |
|
|
|
7,179 |
|
| (Gain) loss on sale of property and equipment |
|
|
(1,846 |
) |
|
|
227 |
|
| Unrealized foreign currency losses |
|
|
16,856 |
|
|
|
3,124 |
|
| Deferred income taxes |
|
|
10,378 |
|
|
|
9,105 |
|
| Stock compensation expense |
|
|
15,559 |
|
|
|
15,129 |
|
| Realized (gain) loss on marketable securities |
|
|
(272 |
) |
|
|
60 |
|
| Changes in operating assets and liabilities, net of acquisitions: |
|
|
|
|
|
|
|
|
| Accounts receivable, net of allowance for doubtful accounts |
|
|
197,157 |
|
|
|
112,896 |
|
| Inventories |
|
|
(47,318 |
) |
|
|
(39,067 |
) |
| Other current and non-current assets |
|
|
(4,367 |
) |
|
|
2,930 |
|
| Accounts payable |
|
|
(39,851 |
) |
|
|
(32,786 |
) |
| Other current and non-current liabilities |
|
|
(98,219 |
) |
|
|
(76,030 |
) |
| Deferred revenue |
|
|
(10,078 |
) |
|
|
(6,744 |
) |
| Deferred costs |
|
|
3,511 |
|
|
|
1,938 |
|
| Income taxes payable |
|
|
(5,020 |
) |
|
|
9,616 |
|
| Net cash provided by operating activities |
|
|
225,874 |
|
|
|
164,582 |
|
|
|
|
|
|
|
|
|
|
|
| Investing activities: |
|
|
|
|
|
|
|
|
| Purchases of property and equipment |
|
|
(41,361 |
) |
|
|
(30,094 |
) |
| Proceeds from sale of property and equipment |
|
|
1,907 |
|
|
|
47 |
|
| Purchase of intangible assets |
|
|
(953 |
) |
|
|
(413 |
) |
| Purchase of marketable securities |
|
|
(344,342 |
) |
|
|
(83,068 |
) |
| Redemption of marketable securities |
|
|
311,935 |
|
|
|
80,907 |
|
| Acquisitions, net of cash acquired |
|
|
(6,058 |
) |
|
|
— |
|
| Net cash used in investing activities |
|
|
(78,872 |
) |
|
|
(32,621 |
) |
|
|
|
|
|
|
|
|
|
|
| Financing activities: |
|
|
|
|
|
|
|
|
| Dividends |
|
|
(108,571 |
) |
|
|
(200,687 |
) |
| Purchase of treasury stock related to equity awards |
|
|
(11,580 |
) |
|
|
(12,694 |
) |
| Net cash used in financing activities |
|
|
(120,151 |
) |
|
|
(213,381 |
) |
|
|
|
|
|
|
|
|
|
|
| Effect of exchange rate changes on cash and cash equivalents |
|
|
(5,602 |
) |
|
|
(4,286 |
) |
|
|
|
|
|
|
|
|
|
|
| Net increase (decrease) in cash, cash equivalents, and restricted cash |
|
|
21,249 |
|
|
|
(85,706 |
) |
| Cash, cash equivalents, and restricted cash at beginning of period |
|
|
1,027,638 |
|
|
|
1,201,805 |
|
| Cash, cash equivalents, and restricted cash at end of period |
|
$ |
1,048,887 |
|
|
$ |
1,116,099 |
|
| Garmin Ltd. And Subsidiaries |
|
|||||||||||||||||||||||
| Net Sales, Gross Profit and Operating Income by Segment (Unaudited) |
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| (In thousands) |
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reportable Segments |
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|
|
|
Fitness |
|
|
Marine |
|
|
Outdoor |
|
|
Aviation |
|
|
Auto |
|
|
Total |
|
||||||
| 13-Weeks Ended March 28, 2020 |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net sales |
|
$ |
223,601 |
|
|
$ |
163,005 |
|
|
$ |
175,102 |
|
|
$ |
188,599 |
|
|
$ |
105,801 |
|
|
$ |
856,108 |
|
| Gross profit |
|
|
112,325 |
|
|
|
94,210 |
|
|
|
112,258 |
|
|
|
138,808 |
|
|
|
49,339 |
|
|
|
506,940 |
|
| Operating income |
|
|
31,011 |
|
|
|
40,159 |
|
|
|
47,166 |
|
|
|
59,321 |
|
|
|
(175 |
) |
|
|
177,482 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 13-Weeks Ended March 30, 2019 |
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net sales |
|
$ |
180,256 |
|
|
$ |
133,968 |
|
|
$ |
154,051 |
|
|
$ |
170,776 |
|
|
$ |
126,999 |
|
|
$ |
766,050 |
|
| Gross profit |
|
|
90,835 |
|
|
|
78,055 |
|
|
|
97,488 |
|
|
|
127,983 |
|
|
|
57,337 |
|
|
|
451,698 |
|
| Operating income |
|
|
18,126 |
|
|
|
25,473 |
|
|
|
41,953 |
|
|
|
57,618 |
|
|
|
8,213 |
|
|
|
151,383 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Garmin Ltd. And Subsidiaries |
|
|||||||||||
| Net Sales by Geography (Unaudited) |
|
|||||||||||
| (In thousands) |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13-Weeks Ended |
|
|||||||||
|
|
|
March 28, |
|
|
March 30, |
|
|
Yr over Yr |
|
|||
|
|
|
2020 |
|
|
2019 |
|
|
Change |
|
|||
| Net sales |
|
$ |
856,108 |
|
|
$ |
766,050 |
|
|
12% |
|
|
| Americas |
|
|
427,401 |
|
|
|
379,456 |
|
|
13% |
|
|
| EMEA |
|
|
299,867 |
|
|
|
260,021 |
|
|
15% |
|
|
| APAC |
|
|
128,840 |
|
|
|
126,573 |
|
|
2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| EMEA - Europe, Middle East and Africa; APAC - Asia Pacific and Australian Continent |
|
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