Garmin Reports 2012 Results; Initiates $300 Million Share

Garmin Reports 2012 Results; Initiates $300 Million Share Repurchase Program

Earnings Call Information

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

When:		Wednesday, February 20, 2012 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) 437.9366 (due to the limited number of lines available, we encourage you to participate via the webcast).
Contact:		Email Contact

An archive of the live webcast will be available until March 27, 2013 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 2013, 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 31, 2011 filed by Garmin with the Securities and Exchange Commission (Commission file number 0-31983). A copy of such 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. A member of the S&P 500 Index, Garmin Ltd. is incorporated in Schaffhausen, Switzerland, 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, Approach, and Forerunner are registered trademarks, and Real Directions, Edge, BarkLimiter and Delta 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)

	December 29,			December 31,
	2012			2011
Assets
Current assets:
Cash and cash equivalents	$	1,231,180		$	1,287,160
Marketable securities		153,083			111,153
Accounts receivable, net		603,673			607,450
Inventories, net		389,931			397,741
Deferred income taxes		68,785			53,670
Deferred costs		53,948			40,033
Prepaid expenses and other current assets		35,520			77,630
Total current assets		2,536,120			2,574,837

Property and equipment, net		409,751			417,105

Marketable securities		1,488,312			1,097,002
Restricted cash		836			771
Noncurrent deferred income tax		93,920			88,637
Noncurrent deferred costs		42,359			40,823
Intangible assets, net		232,597			246,646
Other assets		15,229			5,517
Total assets	$	4,819,124		$	4,471,338

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	131,263		$	164,010
Salaries and benefits payable		55,969			45,964
Accrued warranty costs		37,301			46,773
Accrued sales program costs		57,080			52,262
Deferred revenue		252,375			188,987
Accrued license fees		71,745			99,025
Accrued advertising expense		25,192			31,915
Other accrued expenses		69,806			67,912
Deferred income taxes		332			5,782
Income taxes payable		32,031			77,784
Dividend payable		175,932			77,865
Total current liabilities		909,026			858,279

Deferred income taxes		2,467			4,951
Non-current income taxes		181,754			161,904
Non-current deferred revenue		193,047			188,132
Other liabilities		1,034			1,491

Stockholders' equity:
Shares, CHF 10 par value, 208,077,418 shares authorized and issued;
195,591,854 shares outstanding at December 29, 2012 and
194,622,617 shares outstanding at December 31, 2011		1,797,435			1,797,435
Additional paid-in capital		72,462			61,869
Treasury stock		(81,280	)		(103,498	)
Retained earnings		1,604,625			1,413,582
Accumulated other comprehensive income		138,554			87,193
Total stockholders' equity		3,531,796			3,256,581
Total liabilities and stockholders' equity	$	4,819,124		$	4,471,338


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

	13-Weeks Ended			14-Weeks Ended			52-Weeks Ended			53-Weeks Ended
	December 29,			December 31,			December 29,			December 31,
	2012			2011			2012			2011
Net sales	$	768,548		$	909,644		$	2,715,675		$	2,758,569

Cost of goods sold		394,694			475,857			1,277,195			1,419,977

Gross profit		373,854			433,787			1,438,480			1,338,592

Advertising expense		46,806			55,660			138,757			145,024
Selling, general and administrative expense		94,026			93,383			369,790			341,217
Research and development expense		83,263			84,655			325,773			298,584
Total operating expense		224,095			233,698			834,320			784,825

Operating income		149,759			200,089			604,160			553,767

Other income (expense):
Interest income		8,830			9,494			35,108			32,812
Foreign currency		(3,898	)		(24,523	)		(20,022	)		(12,100	)
Other		219			67			5,282			9,682
Total other income (expense)		5,151			(14,962	)		20,368			30,394

Income before income taxes		154,910			185,127			624,528			584,161

Income tax provision		25,616			19,571			82,125			63,265

Net income	$	129,294		$	165,556		$	542,403		$	520,896

Net income per share:
Basic	$	0.66		$	0.85		$	2.78		$	2.68
Diluted	$	0.66		$	0.85		$	2.76		$	2.67

Weighted average common
shares outstanding:
Basic		195,101			194,319			194,909			194,105
Diluted		196,275			195,100			196,213			194,894


Garmin Ltd. And Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In thousands)

	52-Weeks Ended			53-Weeks Ended
	December 29,			December 31,
	2012			2011
Operating Activities:
Net income	$	542,403		$	520,896
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation		52,632			54,610
Amortization		37,835			39,925
Gain on sale of property and equipment		(367	)		(2,192	)
Provision for doubtful accounts		4,678			2,317
Deferred income taxes		(32,080	)		(42,475	)
Unrealized foreign currency losses		40,042			18,583
Provision for obsolete and slow moving inventories		11,003			16,047
Stock compensation expense		29,274			40,212
Realized gains on marketable securities		(2,980	)		(4,322	)
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable		9,077			169,543
Inventories		3,997			(6,385	)
Other current and non-current assets		39,717			(60,996	)
Accounts payable		(38,929	)		(26,329	)
Other current and non-current liabilities		(33,235	)		(61,103	)
Deferred revenue		67,931			179,439
Deferred costs		(15,441	)		(36,120	)
Income taxes payable		(30,812	)		20,684
Net cash provided by operating activities		684,745			822,334

Investing activities:
Purchases of property and equipment		(38,445	)		(38,366	)
Proceeds from sale of property and equipment		757			4,127
Purchase of intangible assets		(6,783	)		(6,933	)
Purchase of marketable securities		(1,429,593	)		(1,172,555	)
Redemption of marketable securities		985,598			779,213
Change in restricted cash		(65	)		506
Acquisitions, net of cash acquired		(7,697	)		(54,190	)
Net cash used in investing activities		(496,228	)		(488,198	)

Financing activities:
Dividends paid		(253,386	)		(310,763	)
Issuance of treasury stock related to equity awards		22,798			22,337
Tax benefit from issuance of equity awards		(516	)		3,313
Purchase of treasury stock		(18,745	)		(22,300	)
Net cash used in financing activities		(249,849	)		(307,413	)

Effect of exchange rate changes on cash and cash equivalents		5,352			(499	)

Net (decrease)/increase in cash and cash equivalents		(55,980	)		26,224
Cash and cash equivalents at beginning of period		1,287,160			1,260,936
Cash and cash equivalents at end of period	$	1,231,180		$	1,287,160


Garmin Ltd. And Subsidiaries
Revenue, Gross Profit, and Operating Income by Segment (Unaudited)

	Reporting Segments
	Outdoor		Fitness		Marine			Auto/ Mobile		Aviation		Total

13-Weeks Ended December 29, 2012

Net sales	$	118,517	$	103,973	$	39,516		$	436,654	$	69,888	$	768,548
Gross profit	$	73,990	$	62,570	$	19,995		$	166,153	$	51,146	$	373,854
Operating income	$	46,579	$	35,791		($1,583	)	$	50,557	$	18,415	$	149,759

14-Weeks Ended December 31, 2011

Net sales	$	121,045	$	94,752	$	43,250		$	579,193	$	71,404	$	909,644
Gross profit	$	82,161	$	60,989	$	25,868		$	218,738	$	46,031	$	433,787
Operating income	$	59,707	$	40,808	$	9,285		$	77,750	$	12,539	$	200,089


52-Weeks Ended December 29, 2012

Net sales	$	401,747	$	321,788	$	208,136		$	1,492,440	$	291,564	$	2,715,675
Gross profit	$	260,564	$	204,615	$	125,201		$	642,913	$	205,187	$	1,438,480
Operating income	$	164,611	$	111,807	$	34,000		$	220,766	$	72,976	$	604,160

53-Weeks Ended December 31, 2011

Net sales	$	363,223	$	298,163	$	221,730		$	1,590,598	$	284,855	$	2,758,569
Gross profit	$	238,850	$	181,759	$	129,653		$	597,017	$	191,313	$	1,338,592
Operating income	$	161,511	$	102,101	$	57,645		$	160,837	$	71,673	$	553,767

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