Garmin Reports First Quarter 2011 Results with Strong Revenue

Garmin Reports First Quarter 2011 Results with Strong Revenue Performance in all Segments

Earnings Call Information

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

		When:			Wednesday, May 4, 2011 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 (888) 542-1136
		Contact:			Email Contact

An archive of the live webcast will be available until June 3, 2011 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 2011, the Company’s expected segment revenue growth rate, margins, new products to be introduced in 2011 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 25, 2010 filed by Garmin with the Securities and Exchange Commission (Commission file number 0-31983). A copy of Garmin’s 2010 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, Forerunner, GPSMAP and Astro are registered trademarks, and GTN, G2000, dēzl, and G1000H 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)
	March 26,			December 25,
	2011			2010
Assets
Current assets:
Cash and cash equivalents	$	1,210,615		$	1,260,936
Marketable securities		41,723			24,418
Accounts receivable, net		434,935			747,249
Inventories, net		411,021			387,577
Deferred income taxes		33,582			33,628
Deferred costs		22,943			20,053
Prepaid expenses and other current assets		38,018			24,894
Total current assets		2,192,837			2,498,755

Property and equipment, net		427,110			427,805

Marketable securities		1,027,381			777,401
Restricted cash		1,389			1,277
Licensing agreements, net		4,658			1,800
Noncurrent deferred income tax		73,613			73,613
Noncurrent deferred costs		25,700			24,685
Other intangible assets, net		184,821			183,352
Total assets	$	3,937,509		$	3,988,688

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	118,845		$	132,348
Salaries and benefits payable		34,811			49,288
Accrued warranty costs		44,030			49,885
Accrued sales program costs		49,463			107,261
Deferred revenue		104,818			89,711
Accrued royalty costs		7,769			95,086
Accrued advertising expense		17,626			21,587
Other accrued expenses		58,164			63,043
Deferred income taxes		4,428			4,800
Income taxes payable		29,959			56,028
Total current liabilities	$	469,913		$	669,037

Deferred income taxes		11,068			6,986
Non-current income taxes		147,047			153,621
Non-current deferred revenue		114,795			108,076
Other liabilities		1,457			1,406

Stockholders' equity:
Shares, CHF 10 par value, 208,077,418 shares authorized and issued;
194,014,900 shares outstanding at March 26, 2011;
and 194,358,038 shares outstanding at December 25, 2010;		1,797,435			1,797,435
Additional paid-in capital		45,435			38,268
Treasury stock		(118,018	)		(106,758	)
Retained earnings		1,377,007			1,264,613
Accumulated other comprehensive income		91,370			56,004
Total stockholders' equity		3,193,229			3,049,562
Total liabilities and stockholders' equity	$	3,937,509		$	3,988,688


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

	13-Weeks Ended
	March 26,		March 27,
	2011		2010
Net sales	$	507,834	$	431,067

Cost of goods sold		269,460		200,158

Gross profit		238,374		230,909

Advertising expense		19,956		17,400
Selling, general and administrative expense		73,187		67,678
Research and development expense		70,478		62,483
Total operating expense		163,621		147,561

Operating income		74,753		83,348

Other income (expense):
Interest income		7,214		6,879
Foreign currency gains (losses)		12,140		(46,537	)
Other		2,819		1,833
Total other income (expense)		22,173		(37,825	)

Income before income taxes		96,926		45,523

Income tax provision		1,444		8,194

Net income	$	95,482	$	37,329

Net income per share:
Basic	$	0.49	$	0.19
Diluted	$	0.49	$	0.19

Weighted average common
shares outstanding:
Basic		193,922		199,926
Diluted		194,720		201,091


Dividends declared per share		-	$	1.50


Garmin Ltd. And Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In thousands)
		13-Weeks Ended
		March 26,			March 27,
		2011			2010
Operating Activities:
Net income		$	95,482		$	37,329
Adjustments to reconcile net income to net cash
provided by operating activities:
	Depreciation		13,839			13,543
	Amortization		8,583			8,334
	Gain on sale of property and equipment		(2	)		(6	)
	Provision for doubtful accounts		(858	)		(1,260	)
	Deferred income taxes		1,023			(1,546	)
	Unrealized foreign currency losses		867			47,773
	Provision for obsolete and slow moving inventories		(4,349	)		3,140
	Stock compensation expense		8,666			9,700
	Realized gains on marketable securities		(1,492	)		(805	)
Changes in operating assets and liabilities, net of acquisitions:
	Accounts receivable		327,151			436,446
	Inventories		(11,067	)		(50,168	)
	Other current assets		(20,372	)		2,146
	Accounts payable		(17,573	)		(94,717	)
	Other current and non-current liabilities		(190,770	)		(216,868	)
	Deferred revenue		21,826			14,286
	Deferred cost		(3,905	)		(2,752	)
	Income taxes payable		(16,550	)		(4,048	)
	License fees		(2,900	)		(396	)
Net cash provided by operating activities			207,599			200,131

Investing activities:
Purchases of property and equipment			(7,178	)		(3,935	)
Purchase of intangible assets			(2,626	)		(5,029	)
Purchase of marketable securities			(363,263	)		(74,303	)
Redemption of marketable securities			98,614			146,073
Change in restricted cash			(112	)		1,106
Net cash (used in)/provided by investing activities			(274,565	)		63,912

Financing activities:
Proceeds from issuance of common stock through
stock purchase plan			3,041			2,725
Stock repurchase			-			(47,206	)
Tax benefit related to stock option exercise			787			1,408
Net cash provided by/(used in) financing activities			3,828			(43,073	)

Effect of exchange rate changes on cash and cash equivalents			12,817			(21,208	)

Net (decrease)/increase in cash and cash equivalents			(50,321	)		199,762
Cash and cash equivalents at beginning of period			1,260,936			1,091,581
Cash and cash equivalents at end of period		$	1,210,615		$	1,291,343


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 March 26, 2011

Net sales	$66,450	$56,367	$51,308	$264,550	$69,159	$507,834
Gross profit	$41,353	$33,792	$33,198	$82,551	$47,480	$238,374
Operating income	$24,807	$15,457	$15,133	$1,595	$17,761	$74,753

13-Weeks Ended March 27, 2010

Net sales	$59,386	$43,350	$41,314	$220,924	$66,093	$431,067
Gross profit	$38,510	$27,051	$24,231	$94,775	$46,342	$230,909
Operating income	$24,369	$14,199	$8,929	$16,982	$18,869	$83,348

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