SCHAFFHAUSEN, Switzerland — (BUSINESS WIRE) — February 17, 2016 — Garmin Ltd. (Nasdaq: GRMN – News) today announced results for the fourth quarter ended December 26, 2015.
Highlights in the quarter include:
- Total revenue of $781 million with outdoor, fitness, aviation and marine collectively growing 11% over the year ago quarter and contributing 66% of total revenue
- Gross and operating margins were 52.9% and 18.7%, respectively
- Pro forma EPS(1) of $0.74 for fourth quarter 2015
- Launched our global Beat Yesterday™ advertising campaign, designed to highlight the intrinsic motivation that leads to self-improvement
- Recently announced new products available for the first quarter 2016 including a new line up of golf devices, fēnix® 3 HR with Garmin Elevate™ wrist heart rate technology, Varia Vision™ in-sight display, and the Garmin Drive™ line of PNDs
Highlights for the fiscal year include:
- Total revenue of $2,820 million with outdoor, fitness, aviation, and marine collectively growing 9% over 2014 and contributing 63% of total revenue
- Gross and operating margins were 54.6% and 19.5%, respectively
- Shipped approximately 16.2 million units, up 7% from prior year
- Pro forma EPS(1) of $2.49 for 2015
(in thousands, | 13-Weeks Ended | 52-Weeks Ended | |||||||||||
except per share data) | 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% | |||||||
Auto | 268,478 | 339,832 | -21% | 1,048,125 | 1,240,377 | -15% | |||||||
Fitness | 228,740 | 201,303 | 14% | 661,599 | 568,440 | 16% | |||||||
Outdoor | 123,627 | 116,432 | 6% | 425,150 | 427,555 | -1% | |||||||
Aviation | 104,059 | 93,279 | 12% | 398,618 | 385,915 | 3% | |||||||
Marine | 56,454 | 52,460 | 8% | 286,778 | 248,371 | 15% | |||||||
Gross profit % | 52.9% | 53.6% | 54.6% | 55.9% | |||||||||
Operating profit % | 18.7% | 21.9% | 19.5% | 24.1% | |||||||||
GAAP diluted EPS | $0.70 | $1.09 | -36% | $2.39 | $1.88 | 27% | |||||||
Pro forma diluted EPS (1) | $0.74 | $0.77 | -4% | $2.49 | $3.10 | -20% | |||||||
(1) See attached table for reconciliation of non-GAAP measures including pro forma diluted EPS
Executive Overview from Cliff Pemble, President
and Chief Executive Officer:
“Despite the challenging global economic environment and the intensified competitive landscape of 2015, we finished strong with revenue and margins exceeding our expectations,” said Cliff Pemble, president and chief executive officer (CEO) of Garmin Ltd. “We are utilizing our robust balance sheet to further diversify our revenue base in adjacent categories with our recently announced acquisitions. We believe we have strong products across all of our business segments and are well positioned as we enter 2016.”
Fitness:
The fitness segment posted revenue growth of 14% in the quarter reflecting the strength of our wellness, running, and cycling product offerings. Gross margin fell to 51% in the quarter, while operating margin declined to 18%. The gross margin decline was driven by holiday promotions and competitive dynamics in certain product categories, as well as product mix within the quarter. We saw our Beat Yesterday advertising campaign favorably impact our holiday sales and the Garmin brand. We recently introduced Varia Vision, a new product category that provides cyclists with an in-sight display to enhance their road awareness by putting the information in their line of sight. We believe our product lineup is very strong and look forward to another year of growth from our fitness segment in 2016.
Outdoor:
The outdoor segment posted revenue growth of 6% in the quarter driven by the strength of our outdoor wearables. Gross and operating margins within the segment were down slightly from the year ago quarter at 60% and 33%, respectively. As we enter 2016, we are excited about our recent new product announcements including the fēnix® 3 HR with Garmin Elevate wrist heart rate technology, Approach® S20 and G10, and TruSwing™. The pending acquisition of DeLorme® and the acquisition of PulsedLight™ provide opportunity to expand into new areas of growth for the future.
Aviation:
The aviation segment posted revenue growth of 12% in the quarter, exceeding our expectations in a challenging general aviation environment. The gross margin in aviation was strong at 76%. This gross margin performance allowed the aviation segment to deliver 62% operating income growth over the year ago quarter. We will continue to invest in upcoming certifications with numerous OEM partners, while also developing new products and technologies, which we expect will result in long-term market share gains and growth in the aviation segment.
Marine:
The marine segment posted revenue growth of 8% in the seasonally slow fourth quarter on the strength of our new product offerings. Gross margin improved year-over-year to 54% as mix shifted toward new products with higher margin profiles. In the quarter, we recorded additional litigation related costs leading to an operating loss of 10%. Excluding these costs, we would have reported an operating profit compared to an operating loss in the fourth quarter of 2014. We recently announced the Striker™ series, a new line of fishfinders which redefine the entry level fishfinder market with the addition of GPS capability. At recent boat shows, we announced the quatix 3 wearable, the Garmin Nautix™ in-sight display, and the GNX Wind, providing sailors important wind and boat data. In 2015, we delivered both revenue and profitability improvements as a result of our significant investment in recent years. We believe our product lineup is very strong and look forward to another year of growth in 2016.
Auto:
Consistent with the ongoing decline of the overall PND market, the auto segment posted a revenue decline of 21% in the fourth quarter. Gross and operating margins were 42% and 13%, respectively. We recently introduced the Garmin Drive line of PND devices with a range of product offerings from basic navigation to integrated dashcam providing additional driver assistance. On the OEM side, our newly developed high performance navigation software solution is fully integrated in the new Mercedes E-Class recently launched in Detroit.
Additional Financial Information:
Total operating expenses in the quarter were $267 million, a 5% increase from the prior year. Research and development investment increased 4%, with continued emphasis on active lifestyle products in fitness and outdoor. Advertising increased 5%, driven primarily by increases in fitness and outdoor advertising to support wearables. Selling, general and administrative expense increased by 5%, driven primarily by litigation related costs and information technology.
The effective tax rate in the fourth quarter of 2015 was 13.2% compared to a pro forma effective tax rate of 19.1% in the prior year, excluding the impact of $49 million income tax benefit associated with net releases of reserves primarily associated with completion of tax audits in 2014. The decrease in the effective tax rate resulted from the improved pretax income compared to previous projections for 2015, which positively impacts our geographic income mix. Consistent with the prior year, the fourth quarter included the full year impact of the U.S. research and development tax credit.
We continued to return cash to shareholders with our quarterly dividend of approximately $97 million and our share repurchase activity, which totaled $23 million in the fourth quarter. We returned $509 million of cash to shareholders in 2015 with quarterly dividends totaling $378 million and share repurchases of $131 million. We have $169 million remaining in the share repurchase program authorized through December 31, 2016, and expect to repurchase as business and market conditions warrant. We ended the quarter with cash and marketable securities of about $2.4 billion.
2016 Guidance:
2016 Guidance | |||||||||
Revenue | ~$2.82 B | ||||||||
Gross Margin | ~54.5% | ||||||||
Operating Income | ~510M | ||||||||
Operating Margin | ~18% | ||||||||
Tax Rate | ~20.5% | ||||||||
EPS (Pro Forma) | ~$2.25 | ||||||||
We expect 2016 revenue of approximately $2.82 billion as growth in all non-auto segments offsets ongoing declines in the PND market. We expect gross margins to be approximately 54.5%, relatively flat to the prior year. Operating margins are forecasted to decline to approximately 18% due primarily to ongoing research and development investment and the addition of recently announced acquisitions. With an expected tax rate of approximately 20.5%, we currently forecast 2016 EPS of approximately $2.25. This includes approximately $0.05 of negative impact in 2016 due to acquisitions.
Dividend Recommendation:
The board of directors intends to recommend to the shareholders for approval at the annual meeting to be held on June 10, 2016, a cash dividend in the amount of $2.04 per share (subject to possible adjustment based on the total amount of the dividend in Swiss Francs as approved at the annual meeting), payable in four equal installments on dates to be determined by the Board. The Board currently anticipates the scheduling of the dividend in four installments as follows:
Dividend Date | Record Date | $s per share | ||||||||||
June 30, 2016 | June 16, 2016 | $0.51 | ||||||||||
September 30, 2016 | September 15, 2016 | $0.51 | ||||||||||
December 30, 2016 | December 14, 2016 | $0.51 | ||||||||||
March 31, 2017 | March 15, 2017 | $0.51 | ||||||||||
In addition, the board of directors has established March 31, 2016 as the payment date and March 16, 2016 as the record date for the final dividend installment of $0.51 per share, per the prior approval at the 2015 annual shareholders’ meeting. The first, second and third payments of $0.51 per share were made on June 30, 2015, September 30, 2015, and December 31, 2015, respectively.
Webcast Information/Forward-Looking Statements:
The information for Garmin Ltd.’s earnings call is as follows:
When: | Wednesday, February 17, 2016 at 10:30 a.m. Eastern | |||||||||
Where: | ||||||||||
How: | Simply log on to the web at the address above or call to listen in at 855-820-2296 | |||||||||
An archive of the live webcast will be available until March 23, 2016 on the Garmin website at 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 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 | |||||||||||||||
Non-GAAP Financial Information
Pro Forma net income (earnings) per share
Management believes that net income per share before the impact of foreign currency translation gain or loss and income tax adjustments that materially impact the effective tax rate, as discussed below, is an important measure. The majority of the Company’s consolidated foreign currency gain or loss result from balances involving the Euro, the British Pound Sterling and the Taiwan Dollar and from the exchange rate impact of the significant cash and marketable securities, receivables and payables held in a currency other than the functional currency at one of the Company’s subsidiaries. However, there is minimal cash impact from such foreign currency gain or loss. The Company’s income tax expense is periodically impacted by material net releases of reserves primarily related to completion of audits and/or the expiration of statutes effecting prior periods. Thus, reported income tax expense is not reflective of the income tax expense that is incurred related to the current period earnings. The net release of other uncertain tax position reserves, amounting to approximately $7 million and $11 million for 2015 and 2014, respectively, have not been included as pro forma adjustments in the following presentation of pro forma net income as such amounts have been considered immaterial, tend to be more recurring in nature and are comparable between periods. In the third quarter of 2014, the company incurred tax expense of $308 million associated with our inter-company restructuring. As this is a one-time transaction and not reflective of income tax expense incurred related to the current period earnings, it has been excluded from pro forma net income (earnings) per share. Accordingly, earnings per share before the impact of foreign currency translation gain or loss and income tax adjustments that materially impact the effective tax rate permits a consistent comparison of the Company’s operating performance between periods.
Garmin Ltd. And Subsidiaries | |||||||||||
Net income per share (Pro Forma) | |||||||||||
(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 Income (GAAP) | $132,383 | $210,245 | $456,227 | $364,211 | |||||||
Foreign currency (gain) / loss, net of tax effects | $8,061 | ($12,917 | ) | $18,875 | $3,557 | ||||||
Income tax benefit due to completion of tax audits | |||||||||||
and/or expiration of statutes | - | ($48,542 | ) | - | ($72,942 | ) | |||||
Tax due to inter-company restructuring | - | - | - | $307,635 | |||||||
Net income (Pro Forma) | $140,444 | $148,786 | $475,102 | $602,461 | |||||||
Net income per share (GAAP): | |||||||||||
Basic | $0.70 | $1.10 | $2.39 | $1.89 | |||||||
Diluted | $0.70 | $1.09 | $2.39 | $1.88 | |||||||
Net income per share (Pro Forma): | |||||||||||
Basic | $0.74 | $0.78 | $2.49 | $3.12 | |||||||
Diluted | $0.74 | $0.77 | $2.49 | $3.10 | |||||||
Weighted average common shares outstanding: | |||||||||||
Basic | 189,317 | 191,322 | 190,631 | 193,106 | |||||||
Diluted (GAAP) | 189,847 | 192,356 | 191,107 | 194,165 | |||||||
Free cash flow
Management believes that free cash flow is an important financial measure because it represents the amount of cash provided by operations that is available for investing and defines it as operating cash flow plus one-time cash payments associated with our inter-company restructuring less capital expenditures for property and equipment.
Garmin Ltd. And Subsidiaries | |||||||||||||
Free Cash Flow | |||||||||||||
(in thousands) | |||||||||||||
13-Weeks Ended | 52-weeks Ended | ||||||||||||
Dec 26, | Dec 27, | Dec 26, | Dec 27, | ||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||
Net cash provided by operating activities | $158,336 | $145,017 | $280,467 | $522,711 | |||||||||
Less: purchases of property and equipment | ($27,295 | ) | ($18,510 | ) | ($80,592 | ) | ($73,339 | ) | |||||
Plus: taxes paid related to inter-company restructuring | - | - | $182,800 | $78,137 | |||||||||
Free Cash Flow | $131,041 | $126,507 | $382,675 | $527,509 | |||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20160217005327/en/
Contact:
Garmin Ltd.
Investor Relations:
Teri
Seck, 913-397-8200
Email Contact
or
Media
Relations:
Ted Gartner, 913-397-8200
Email Contact