The information for Garmin Ltd.’s earnings call is as follows:
| When: | Wednesday, November 4, 2009 at 10:30 a.m. Eastern | |
| Where: |
http://www.garmin.com/aboutGarmin/invRelations/irCalendar.html |
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| How: |
Simply log on to the Web at the address above or call to listen in at 800-891-6383. |
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| Contact: | ||
A phone recording will be available for five business days following the earnings call and can be accessed by dialing 800-642-1687 or (706) 645-9291 and utilizing the access code 32553589. An archive of the live webcast will be available until December 7, 2009 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 2009, the Company’s expected segment revenue growth rate, margins, new products to be introduced 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 27, 2008 filed by Garmin with the Securities and Exchange Commission (Commission file number 0-31983). A copy of Garmin’s 2008 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, nüvi, Forerunner and Edge are registered trademarks, and Dakota , Aera and nüvifone 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.
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Garmin Ltd. And Subsidiaries
Condensed Consolidated Balance Sheets (In thousands, except share information) |
||||||||
| (Unaudited) | ||||||||
| September 26, | December 27, | |||||||
| 2009 | 2008 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1,011,763 | $ | 696,335 | ||||
| Marketable securities | 17,643 | 12,886 | ||||||
| Accounts receivable, net | 573,847 | 741,321 | ||||||
| Inventories, net | 373,290 | 425,312 | ||||||
| Deferred income taxes | 52,824 | 49,825 | ||||||
| Prepaid expenses and other current assets | 49,569 | 58,746 | ||||||
| Total current assets | 2,078,936 | 1,984,425 | ||||||
| Property and equipment, net | 444,172 | 445,252 | ||||||
| Marketable securities | 770,444 | 262,009 | ||||||
| Restricted cash | 2,044 | 1,941 | ||||||
| Licensing agreements, net | 8,885 | 16,013 | ||||||
| Other intangible assets, net | 212,070 | 214,941 | ||||||
| Total assets | $ | 3,516,551 | $ | 2,924,581 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 185,668 | $ | 160,094 | ||||
| Salaries and benefits payable | 32,787 | 34,241 | ||||||
| Accrued warranty costs | 83,081 | 87,408 | ||||||
| Accrued sales program costs | 56,318 | 90,337 | ||||||
| Deferred revenue | 48,621 | 680 | ||||||
| Other accrued expenses | 141,021 | 86,341 | ||||||
| Income taxes payable | 14,102 | 20,075 | ||||||
| Dividend payable | 150,447 | - | ||||||
| Total current liabilities | 712,045 | 479,176 | ||||||
| Deferred income taxes | 8,447 | 4,070 | ||||||
| Non-current income taxes | 239,419 | 214,366 | ||||||
| Other liabilities | 1,242 | 1,115 | ||||||
| Stockholders' equity: | ||||||||
| Common stock, $0.005 par value, 1,000,000,000 shares authorized: | ||||||||
|
Issued and outstanding shares - 200,596,000 as of September 26, 2009 and 200,363,000 as of December 27, 2008 |
1,002 | 1,002 | ||||||
| Additional paid-in capital | 35,428 | - | ||||||
| Retained earnings | 2,537,598 | 2,262,503 | ||||||
| Accumulated other comprehensive loss | (18,630 | ) | (37,651 | ) | ||||
| Total stockholders' equity | 2,555,398 | 2,225,854 | ||||||
| Total liabilities and stockholders' equity | $ | 3,516,551 | $ | 2,924,581 | ||||
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Garmin Ltd. And Subsidiaries
Condensed Consolidated Statements of Income (Unaudited) (In thousands, except per share information) |
|||||||||||||
| 13-Weeks Ended | 39-Weeks Ended | ||||||||||||
| September 26, | September 27, | September 26, | September 27, | ||||||||||
| 2009 | 2008 | 2009 | 2008 | ||||||||||
| Net sales | $ | 781,254 | $ | 870,355 | $ | 1,887,057 | $ | 2,445,830 | |||||
| Cost of goods sold | 371,512 | 484,716 | 929,706 | 1,322,948 | |||||||||
| Gross profit | 409,742 | 385,639 | 957,351 | 1,122,882 | |||||||||
| Advertising expense | 45,853 | 50,742 | 103,101 |
147,199 |
|||||||||
| Selling, general and administrative expense | 71,499 | 67,785 | 193,461 |
194,181 |
|||||||||
| Research and development expense | 55,507 | 52,749 | 166,795 |
155,904 |
|||||||||
| Total operating expense | 172,859 | 171,276 | 463,357 | 497,284 | |||||||||
| Operating income | 236,883 | 214,363 | 493,994 | 625,598 | |||||||||
| Interest income | 6,360 | 8,435 | 16,646 | 26,563 | |||||||||
| Foreign currency | 11,752 | (12,744 | ) | 4,478 | 4,818 | ||||||||
| Gain on sale of equity securities | - | - | - | 50,949 | |||||||||
| Other | 1,684 | 1,358 | 1,325 | 2,091 | |||||||||
| Total other income (expense) | 19,796 | (2,951 | ) | 22,449 | 84,421 | ||||||||
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|||||||||||||
| Income before income taxes | 256,679 | 211,412 | 516,443 |
710,019 |
|||||||||
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|||||||||||||
| Income tax provision | 41,546 | 40,168 | 90,901 | 134,904 | |||||||||
| Net income | $ | 215,133 | $ | 171,244 | $ | 425,542 | $ | 575,115 | |||||
| Net income per share: | |||||||||||||
| Basic | $ | 1.07 | $ | 0.83 | $ | 2.12 | $ | 2.71 | |||||
| Diluted | $ | 1.07 | $ | 0.82 | $ | 2.12 | $ | 2.68 | |||||
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Weighted average common shares outstanding: |
|||||||||||||
| Basic | 200,546 | 206,634 | 200,398 | 212,299 | |||||||||
| Diluted | 201,599 | 208,107 | 201,038 | 214,252 | |||||||||
| Cash dividends declared per common share | $ | 0.75 | $ | 0.75 | $ | 0.75 | $ | 0.75 | |||||
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Garmin Ltd. And Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) |
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| 39-Weeks Ended | ||||||||
| September 26, | September 27, | |||||||
| 2009 | 2008 | |||||||
| Operating Activities: | ||||||||
| Net income | $ | 425,542 | $ | 575,115 | ||||
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Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
| Depreciation | 39,945 | 33,797 | ||||||
| Amortization | 25,945 | 20,823 | ||||||
| Gain on sale of property and equipment | (6 | ) | (243 | ) | ||||
| Provision for doubtful accounts | 3,191 | 4,289 | ||||||
| Deferred income taxes | (1,083 | ) | 28,623 | |||||
| Foreign currency transaction gains/losses | (26,936 | ) | 11,266 | |||||
| Provision for obsolete and slow moving inventories | 17,309 | 29,439 | ||||||
| Stock compensation expense | 31,502 | 28,815 | ||||||
| Realized gains on marketable securities | 110 | (50,884 | ) | |||||
| Changes in operating assets and liabilities, net of acquisitions: | ||||||||
| Accounts receivable | 178,281 | 302,012 | ||||||
| Inventories | 43,340 | (196,471 | ) | |||||
| Other current assets | (22,827 | ) | (977 | ) | ||||
| Accounts payable | 22,618 | (175,715 | ) | |||||
| Other current and non-current liabilities | 87,216 | (95,588 | ) | |||||
| Income taxes payable | 28,198 | 1,593 | ||||||
| Purchase of licenses | (3,790 | ) | (3,191 | ) | ||||
| Net cash provided by operating activities | 848,555 | 512,703 | ||||||
| Investing activities: | ||||||||
| Purchases of property and equipment | (35,441 | ) | (110,480 | ) | ||||
| Proceeds from sale of property and equipment | (7 | ) | 8 | |||||
| Purchase of intangible assets | (7,461 | ) | (4,061 | ) | ||||
| Purchase of marketable securities | (626,155 | ) | (366,336 | ) | ||||
| Redemption of marketable securities | 110,751 | 444,102 | ||||||
| Change in restricted cash | (103 | ) | 106 | |||||
| Acquisitions, net of cash acquired | 0 | (50,497 | ) | |||||
| Net cash used in investing activities | (558,416 | ) | (87,158 | ) | ||||
| Financing activities: | ||||||||
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Proceeds from issuance of common stock from exercise of stock options |
1,688 | 2,559 | ||||||
|
Proceeds from issuance of common stock from stock purchase plan |
3,712 | 5,144 | ||||||
| Stock repurchase | (1,908 | ) | (624,688 | ) | ||||
| Tax benefit related to stock option exercise | 455 |
2,309 |
||||||
| Net cash provided by/(used in) financing activities | 3,947 | (614,676 | ) | |||||
| Effect of exchange rate changes on cash and cash equivalents | 21,342 | 2,982 | ||||||
| Net increase/(decrease) in cash and cash equivalents | 315,428 | (186,149 | ) | |||||
| Cash and cash equivalents at beginning of period | 696,335 | 707,689 | ||||||
| Cash and cash equivalents at end of period | $ | 1,011,763 | $ | 521,540 | ||||
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Garmin Ltd. And Subsidiaries
Revenue, Gross Profit, and Operating Income by Segment (Unaudited) |
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| Reporting Segments | |||||||||||||||||||||||
| Outdoor/ | Auto/ | ||||||||||||||||||||||
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Fitness |
Marine |
Mobile |
Aviation |
Total |
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| 13-Weeks Ended | September 26, 2009 | ||||||||||||||||||||||
| Net sales | $ | 132,174 | $ | 45,426 | $ | 545,707 | $ | 57,947 | $ | 781,254 | |||||||||||||
| Gross profit | $ | 82,886 | $ | 24,420 | $ | 263,653 | $ | 38,783 | $ | 409,742 | |||||||||||||
| Operating income | $ | 53,430 | $ | 11,783 | $ | 160,053 | $ | 11,617 | $ | 236,883 | |||||||||||||
| 13-Weeks Ended | September 27, 2008 | ||||||||||||||||||||||
| Net sales | $ | 118,614 | $ | 44,048 | $ | 626,506 | $ | 81,187 | $ | 870,355 | |||||||||||||
| Gross profit | $ | 74,487 | $ | 21,714 | $ | 236,339 | $ | 53,099 | $ | 385,639 | |||||||||||||
| Operating income | $ | 52,136 | $ | 10,606 | $ | 124,359 | $ | 27,262 | $ | 214,363 | |||||||||||||
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39-Weeks Ended |
September 26, 2009 |
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| Net sales | $ | 320,187 | $ | 143,641 | $ | 1,242,011 | $ | 181,218 | $ | 1,887,057 | |||||||||||||
| Gross profit | $ | 204,526 | $ | 83,078 | $ | 542,910 | $ | 126,837 | $ | 957,351 | |||||||||||||
| Operating income | $ | 132,351 | $ | 43,696 | $ | 271,370 | $ | 46,577 | $ | 493,994 | |||||||||||||
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39-Weeks Ended |
September 27, 2008 |
||||||||||||||||||||||
| Net sales | $ | 308,255 | $ | 171,232 | $ | 1,710,248 | $ | 256,095 | $ | 2,445,830 | |||||||||||||
| Gross profit | $ | 179,834 | $ | 94,296 | $ | 675,953 | $ | 172,799 | $ | 1,122,882 | |||||||||||||
| Operating income | $ | 116,892 | $ | 52,510 | $ | 361,190 | $ | 95,006 | $ | 625,598 | |||||||||||||
