Garmin Reports Third Quarter 2011 Results with Strong EPS and

Garmin Reports Third Quarter 2011 Results with Strong EPS and Cash Flow; Increasing 2011 Guidance

Earnings Call Information

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

When:			Wednesday, November 2, 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 888-378-4353.
Contact:			Email Contact

An archive of the live webcast will be available until December 7, 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, fitness, marine, aviation, and OEM applications. Garmin Ltd. is incorporated in Switzerland, and its principal subsidiaries are located in the United States, Taiwan and the United Kingdom. For more information, visit Garmin's virtual newsroom at www.garmin.com/newsroom or contact the Media Relations department at 913-397-8200.

Garmin, nüvi, Edge, aera, Approach, Astro, eTrex, GPSMAP and Forerunner are registered trademarks, and Vector and Montana 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)
	Sept 24,		December 25,
	2011		2010
Assets
Current assets:
Cash and cash equivalents	$1,389,406		$1,260,936
Marketable securities	72,784		24,418
Accounts receivable, net	519,226		747,249
Inventories, net	461,304		387,577
Deferred income taxes	26,297		33,628
Deferred costs	31,780		20,053
Prepaid expenses and other current assets	53,117		24,894
Total current assets	2,553,914		2,498,755

Property and equipment, net	423,041		427,805

Marketable securities	983,563		777,401
Restricted cash	1,399		1,277
Licensing agreements, net	7,603		1,800
Noncurrent deferred income tax	73,613		73,613
Noncurrent deferred costs	36,134		24,685
Other intangible assets, net	255,618		183,352
Total assets	$4,334,885		$3,988,688

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$182,651		$132,348
Salaries and benefits payable	46,591		49,288
Accrued warranty costs	43,473		49,885
Accrued sales program costs	44,549		107,261
Deferred revenue	139,528		89,711
Accrued royalty costs	77,907		95,086
Accrued advertising expense	24,595		21,587
Other accrued expenses	97,081		63,043
Deferred income taxes	4,645		4,800
Income taxes payable	20,163		56,028
Dividend payable	232,889		0
Total current liabilities	914,072		669,037

Deferred income taxes	12,199		6,986
Non-current income taxes	165,545		153,621
Non-current deferred revenue	173,355		108,076
Other liabilities	1,522		1,406

Stockholders' equity:
Shares, CHF 10 par value, 208,077,418 shares authorized and issued;
194,171,773 shares outstanding at September 24, 2011;
and 194,358,038 shares outstanding at December 25, 2010;	1,797,435		1,797,435
Additional paid-in capital	61,309		38,268
Treasury stock	(113,681	)	(106,758	)
Retained earnings	1,248,443		1,264,613
Accumulated other comprehensive income	74,686		56,004
Total stockholders' equity	3,068,192		3,049,562
Total liabilities and stockholders' equity	$4,334,885		$3,988,688

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

	13-Weeks Ended					39-Weeks Ended
	Sept 24,		Sept 25,			Sept 24,		Sept 25,
	2011		2010			2011		2010
Net sales	$	666,993	$	692,364		$	1,848,925	$	1,852,196

Cost of goods sold		322,662		348,344			944,120		885,615

Gross profit		344,331		344,020			904,805		966,581

Advertising expense		35,310		41,002			89,364		100,843
Selling, general and administrative expense		88,751		66,869			247,833		208,379
Research and development expense		72,936		69,512			213,930		205,332
Total operating expense		196,997		177,383			551,127		514,554

Operating income		147,334		166,637			353,678		452,027

Other income (expense):
Interest income		8,464		5,695			23,318		18,364
Foreign currency gains (losses)		14,893		35,527			12,422		(54,614	)
Other		4,345		3,057			9,616		5,071
Total other income (expense)		27,702		44,279			45,356		(31,179	)

Income before income taxes		175,036		210,916			399,034		420,848

Income tax provision/(benefit)		24,655		(68,636	)		43,694		(30,848	)

Net income	$	150,381	$	279,552		$	355,340	$	451,696

Net income per share:
Basic	$	0.77	$	1.44		$	1.83	$	2.28
Diluted	$	0.77	$	1.43		$	1.82	$	2.27

Weighted average common
shares outstanding:
Basic		194,112		194,482			194,028		197,785
Diluted		194,828		195,305			194,809		198,891

Garmin Ltd. And Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In thousands)
	39-Weeks Ended
	Sept 24,		Sept 25,
	2011		2010
Operating Activities:
Net income	$355,340		$451,696
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation	40,558		39,755
Amortization	19,772		32,471
Loss (gain) on sale of property and equipment	(2,407	)	34
Provision for doubtful accounts	6,227		(3,104	)
Deferred income taxes	12,429		260
Unrealized foreign currency losses/(gains)	(5,366	)	38,635
Provision for obsolete and slow moving inventories	2,590		14,406
Stock compensation expense	27,258		29,412
Realized losses/(gains) on marketable securities	(5,633	)	1,022
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	256,656		351,225
Inventories	(58,655	)	(196,270	)
Other current assets	(36,713	)	24,495
Accounts payable	(5,603	)	(13,051	)
Other current and non-current liabilities	(72,349	)	(261,132	)
Deferred revenue	115,096		65,552
Deferred cost	(23,175	)	(10,531	)
Income taxes payable	(21,987	)	24,383
License fees	(6,562	)	(3,043	)
Net cash provided by operating activities	597,476		586,215

Investing activities:
Purchases of property and equipment	(26,523	)	(22,983	)
Purchase of intangible assets	(8,611	)	(7,891	)
Purchase of marketable securities	(835,965	)	(413,312	)
Redemption of marketable securities	599,740		534,500
Change in restricted cash	(122	)	1,091
Acquisitions, net of cash acquired	(52,688	)	-
Net cash (used in)/provided by investing activities	(324,169	)	91,405

Financing activities:
Proceeds from issuance of common stock through
stock purchase and stock option plans	5,619		6,369
Taxes paid related to net share settlement of equity awards	(375	)	-
Stock repurchase	-		(223,378	)
Dividends	(154,835	)	(299,103	)
Tax benefit related to stock option exercise	1,542		2,377
Net cash used in financing activities	(148,049	)	(513,735	)

Effect of exchange rate changes on cash and cash equivalents	3,212		(19,501	)

Net increase in cash and cash equivalents	128,470		144,384
Cash and cash equivalents at beginning of period	1,260,936		1,091,581
Cash and cash equivalents at end of period	$1,389,406		$1,235,965

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 September 24, 2011

Net sales	$94,720	$69,030	$48,055	$384,150	$71,038	$666,993
Gross profit	$62,387	$41,476	$26,378	$166,941	$47,149	$344,331
Operating income	$41,331	$20,452	$9,870	$56,215	$19,466	$147,334

13-Weeks Ended September 25, 2010

Net sales	$90,329	$53,656	$46,086	$441,891	$60,402	$692,364
Gross profit	$62,347	$32,172	$27,765	$179,270	$42,466	$344,020
Operating income	$48,230	$19,928	$15,618	$66,588	$16,273	$166,637


39-Weeks Ended September 24, 2011

Net sales	$242,178	$203,411	$178,479	$1,011,405	$213,452	$1,848,925
Gross profit	$156,689	$120,770	$103,784	$378,280	$145,282	$904,805
Operating income	$101,805	$61,293	$48,360	$83,087	$59,133	$353,678

39-Weeks Ended September 25, 2010

Net sales	$229,562	$159,475	$161,710	$1,110,040	$191,409	$1,852,196
Gross profit	$154,115	$97,728	$101,103	$479,381	$134,254	$966,581
Operating income	$110,634	$58,851	$56,694	$172,117	$53,731	$452,027

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