SCHAFFHAUSEN, Switzerland — (BUSINESS WIRE) — February 21, 2018 — Garmin Ltd. (Nasdaq: GRMN) today announced results for the fourth quarter and fiscal year ended December 30, 2017.
Highlights for the fourth quarter 2017 include:
- Total revenue of $888 million, growing 3% over the prior year quarter, with outdoor, fitness, marine and aviation collectively growing 9% over the prior year quarter and contributing 78% of total revenue
- Gross margin improved to 56.2% compared to 54.7% in the prior year quarter
- Operating margin improved to 20.2% compared to 18.6% in the prior year quarter
- Operating income of $179 million, representing growth of 12%
- GAAP EPS was $0.73 for the fourth quarter, representing growth of 2% and pro forma EPS(1) was $0.79 for fourth quarter 2017, representing growth of 9%
- Delivered our one-millionth certified aviation product demonstrating our long history of innovation and contribution to the aviation industry
- Began shipping our updated marine ECHOMAP™ and STRIKER™ products bringing connectivity to the water
Highlights for the fiscal year 2017 include:
- Total revenue of $3,087 million, growing 2% over the prior year, with outdoor, fitness, marine and aviation collectively growing 9% over the prior year and contributing 76% of total revenue
- Gross and operating margins of 57.8% and 21.7%, respectively, both improving from 2016 levels
- Operating income of $669 million, representing 7% growth
- GAAP EPS was $3.68 and pro forma EPS(1) was $2.94
- Shipped over 15 million units and over 188 million since inception
- Completed the acquisition of Navionics®S.p.A., a privately-held worldwide provider of electronic navigational charts and mobile applications for the marine industry
- Strong demand for the fēnix® line of wearables led to significant growth in our outdoor segment
- Connect IQ™ app store continued growth with over 3,500 apps and over 45 million downloads since inception
- Garmin ranked #41 on Forbes' “The Just 100: America’s Best Corporate Citizens” and ranked as one of the Global 2000 World’s Best Employers
| (in thousands, | 13-Weeks Ended | 14-Weeks Ended | 52-weeks Ended | 53-weeks Ended | ||||||||||||||||||||||
| except per share data) | December 30, | December 31, | Yr over Yr | December 30, | December 31, | Yr over Yr | ||||||||||||||||||||
| 2017 | 2016 | Change | 2017 | 2016 | Change | |||||||||||||||||||||
| Net sales | $ | 888,496 | $ | 860,767 | 3 | % | $ | 3,087,004 | $ | 3,018,665 | 2 | % | ||||||||||||||
| Outdoor | 203,278 | 175,397 | 16 | % | 698,867 | 546,326 | 28 | % | ||||||||||||||||||
| Aviation | 129,800 | 117,265 | 11 | % | 501,359 | 439,348 | 14 | % | ||||||||||||||||||
| Marine | 83,699 | 67,458 | 24 | % | 374,001 | 331,947 | 13 | % | ||||||||||||||||||
| Fitness | 276,195 | 274,052 | 1 | % | 762,194 | 818,486 | -7 | % | ||||||||||||||||||
| Auto | 195,524 | 226,595 | -14 | % | 750,583 | 882,558 | -15 | % | ||||||||||||||||||
| Gross margin % | 56.2 | % | 54.7 | % | 57.8 | % | 55.6 | % | ||||||||||||||||||
| Operating income % | 20.2 | % | 18.6 | % | 21.7 | % | 20.7 | % | ||||||||||||||||||
| GAAP diluted EPS | $ |
0.73 |
$ |
0.72 |
2 | % | $ | 3.68 | $ | 2.70 | 36 | % | ||||||||||||||
| Pro forma diluted EPS (1) | $ |
0.79 |
$ |
0.73 |
9 | % | $ | 2.94 | $ | 2.83 | 4 | % | ||||||||||||||
|
(1) See attached table for reconciliation of non-GAAP measures including pro forma diluted EPS |
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