Garmin Reports Q4 and Fiscal 2015 Results

This release includes projections and other forward-looking statements regarding Garmin Ltd. and its business that are commonly identified by words such as “would”, “may”, “expects”, “estimates”, “plans”, “intends”, “projects”, and other words or phrases with similar meanings. Any statements regarding the Company’s GAAP and pro forma estimated earnings, EPS and revenue for fiscal 2016, the Company’s expected segment revenue growth rates, margins, currency movements, expenses, pricing, new products to be introduced in 2016 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 and uncertainties 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 26, 2015 filed by Garmin with the Securities and Exchange Commission (Commission file number 0-31983). A copy of Garmin’s 2015 Form 10-K can be downloaded from http://www.garmin.com/aboutGarmin/invRelations/finReports.html.

Garmin, the Garmin logo, the Garmin delta, Approach, fēnix and quatix are trademarks of Garmin Ltd. or its subsidiaries and are registered in one or more countries, including the U.S. Varia Vision, Garmin Drive, Garmin Nautix, Striker, GNX, PulsedLight, Garmin Elevate, TruSwing and Beat Yesterday are trademarks of, or exclusively licensed to, 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 Statements of Income (Unaudited)
(In thousands, except per share information)

	13-Weeks Ended				52-Weeks Ended
	Dec 26,		Dec 27,		Dec 26,		Dec 27,
	2015		2014		2015		2014
Net sales	$781,358		$803,306		$2,820,270		$2,870,658

Cost of goods sold	368,215		372,458		1,281,566		1,266,246

Gross profit	413,143		430,848		1,538,704		1,604,412

Advertising expense	56,814		54,175		167,166		146,633
Selling, general and administrative expense	104,556		99,119		394,914		372,032
Research and development expense	106,011		101,554		427,043		395,121
Total operating expense	267,381		254,848		989,123		913,786

Operating income	145,762		176,000		549,581		690,626

Other income:
Interest income	7,358		6,803		29,653		35,584
Foreign currency gains (losses)	(9,288	)	15,967		(23,465	)	(4,299	)
Other income	8,711		1,126		11,418		1,834
Total other income	6,781		23,896		17,606		33,119

Income before income taxes	152,543		199,896		567,187		723,745

Income tax provision (benefit)	20,160		(10,349	)	110,960		359,534

Net income	$132,383		$210,245		$456,227		$364,211

Net income per share:
Basic	$0.70		$1.10		$2.39		$1.89
Diluted	$0.70		$1.09		$2.39		$1.88

Weighted average common
shares outstanding:
Basic	189,317		191,322		190,631		193,106
Diluted	189,847		192,356		191,107		194,165


Dividends declared per share					$2.04		$1.92


Garmin Ltd. And Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except per share information)

	(Unaudited)
	Dec 26,		Dec 27,
	2015		2014
Assets
Current assets:
Cash and cash equivalents	$833,070		$1,196,268
Marketable securities	215,161		167,989
Accounts receivable, net	531,481		570,191
Inventories, net	500,554		420,475
Deferred income taxes	-		56,102
Deferred costs	49,176		51,336
Prepaid expenses and other current assets	81,645		48,615
Total current assets	2,211,087		2,510,976

Property and equipment, net	446,089		430,887

Marketable securities	1,343,387		1,407,344
Restricted cash	259		308
Noncurrent deferred income tax	116,518		67,712
Noncurrent deferred costs	38,769		36,140
Intangible assets, net	245,552		218,083
Other assets	97,730		21,853
Total assets	$4,499,391		$4,693,303

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$178,905		$149,094
Salaries and benefits payable	70,601		62,764
Accrued warranty costs	30,449		27,609
Accrued sales program costs	67,613		58,934
Deferred revenue	164,982		203,598
Accrued royalty costs	30,310		51,889
Accrued advertising expense	33,547		26,334
Other accrued expenses	74,926		67,780
Deferred income taxes	-		17,673
Income taxes payable	21,674		182,260
Dividend payable	192,991		185,326
Total current liabilities	865,998		1,033,261

Deferred income taxes	56,210		39,497
Non-current income taxes	101,689		80,611
Non-current deferred revenue	128,731		135,130
Other liabilities	1,637		1,437

Stockholders' equity:
Shares, CHF 10 par value, 208,077 shares authorized and issued;
189,722 shares outstanding at December 26, 2015
and 191,815 shares outstanding at December 27, 2014	1,797,435		1,797,435
Additional paid-in capital	62,239		73,521
Treasury stock	(414,637	)	(330,132	)
Retained earnings	1,930,517		1,859,972
Accumulated other comprehensive income	(30,428	)	2,571
Total stockholders' equity	3,345,126		3,403,367
Total liabilities and stockholders' equity	4,499,391		$4,693,303


Garmin Ltd. And Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In thousands)
		52-Weeks Ended
		Dec 26,		Dec 27,
		2015		2014
Operating Activities:
Net income		$456,227		$364,211
Adjustments to reconcile net income to net cash
provided by operating activities:
	Depreciation	51,311		48,433
	Amortization	27,049		28,582
	Gain on sale of property and equipment	(198	)	(306	)
	Provision for doubtful accounts	(2,521	)	66
	Deferred income taxes	5,897		89,828
	Unrealized foreign currency loss	37,931		573
	Provision for obsolete and slow moving inventories	23,257		25,903
	Stock compensation expense	26,290		24,293
	Realized gain on marketable securities	(55	)	(505	)
Changes in operating assets and liabilities:
	Accounts receivable	22,473		(27,398	)
	Inventories	(121,718	)	(76,491	)
	Other current and non-current assets	(107,360	)	627
	Accounts payable	36,079		8,981
	Other current and non-current liabilities	20,742		16,467
	Deferred revenue	(43,338	)	(87,543	)
	Deferred cost	(585	)	11,029
	Income taxes payable	(151,014	)	95,961
Net cash provided by operating activities		280,467		522,711

Investing activities:
Purchases of property and equipment		(80,592	)	(73,339	)
Proceeds from sale of property and equipment		7,921		748
Purchase of intangible assets		(3,889	)	(4,720	)
Purchase of marketable securities		(915,921	)	(1,006,482	)
Redemption of marketable securities		919,141		1,096,676
Proceeds from repayment on loan receivable		-		137,379
Change in restricted cash		48		(59	)
Acquisitions, net of cash acquired		(38,687	)	(18,871	)
Net cash provided by/(used in) investing activities		(111,979	)	131,332

Financing activities:
Dividends paid		(378,117	)	(360,075	)
Purchase of treasury stock under share repurchase plan		(131,413	)	(241,578	)
Purchase of treasury stock related to equity awards		(5,586	)	(18,638	)
Proceeds from issuance of treasury stock related to equity awards		17,073		20,753
Tax benefit from issuance of equity awards		(2,049	)	(84	)
Net cash used in financing activities		(500,092	)	(599,622	)

Effect of exchange rate changes on cash and cash equivalents		(31,594	)	(37,302	)

Net increase/(decrease) in cash and cash equivalents		(363,198	)	17,119
Cash and cash equivalents at beginning of period		1,196,268		1,179,149
Cash and cash equivalents at end of period		$833,070		$1,196,268


Garmin Ltd. And Subsidiaries
Net Sales, Gross Profit, and Operating Income/(Loss) by Segment (Unaudited)

	Reporting Segments
	Outdoor	Fitness	Marine		Auto	Aviation	Total

13-Weeks Ended December 26, 2015

Net sales	$123,627	$228,740	$56,454		$268,478	$104,059	$781,358
Gross profit	$74,549	$117,344	$30,289		$112,061	$78,900	$413,143
Operating income/(loss)	$41,189	$40,288	($5,593	)	$35,928	$33,950	$145,762

13-Weeks Ended December 27, 2014

Net sales	$116,432	$201,303	$52,460		$339,832	$93,279	$803,306
Gross profit	$71,745	$122,083	$24,612		$147,073	$65,335	$430,848
Operating income/(loss)	$40,709	$57,629	($687	)	$57,431	$20,918	$176,000


52-Weeks Ended December 26, 2015

Net sales	$425,150	$661,599	$286,778		$1,048,125	$398,618	$2,820,270
Gross profit	$259,889	$366,139	$158,493		$459,469	$294,714	$1,538,704
Operating income	$140,200	$134,574	$28,611		$134,939	$111,257	$549,581

52-Weeks Ended December 27, 2014

Net sales	$427,555	$568,440	$248,371		$1,240,377	$385,915	$2,870,658
Gross profit	$266,550	$358,287	$129,710		$569,452	$280,413	$1,604,412
Operating income	$151,055	$190,682	$26,232		$215,679	$106,978	$690,626


Garmin Ltd. And Subsidiaries
Net Sales by Geography (Unaudited)

	13-Weeks Ended			52-Weeks Ended
	Dec 26,	Dec 27,	Yr over Yr	Dec 26,	Dec 27,	Yr over Yr
	2015	2014	Change	2015	2014	Change
Net sales	$781,358	$803,306	-3%	$2,820,270	$2,870,658	-2%
Americas	412,581	448,055	-8%	1,469,243	1,538,322	-4%
EMEA	268,787	272,384	-1%	1,013,139	1,054,244	-4%
APAC	99,990	82,867	21%	337,888	278,092	22%

EMEA - Europe, Middle East and Africa; APAC - Asia Pacific

« Previous Page 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 Next Page »