Garmin Reports Fourth Quarter Year-Over-Year Growth in Revenues

Garmin Reports Fourth Quarter Year-Over-Year Growth in Revenues and Margins and Record EPS

Earnings Call Information

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

When:		Wednesday, February 24, 2010 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) 364-3112 or (719) 325-2317 (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 26, 2010 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 2010, 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 is a registered trademark, and nüvifone, G-Motion and GTS 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)			(Unaudited)
	December 26,			December 27,
	2009			2008
Assets
Current assets:
Cash and cash equivalents	$	1,091,581		$	696,335
Marketable securities		19,583			12,886
Accounts receivable, net		874,110			741,321
Inventories, net		309,938			425,312
Deferred income taxes		59,189			49,825
Prepaid expenses and other current assets		39,470			58,746
Total current assets		2,393,871			1,984,425

Property and equipment, net		441,338			445,252

Marketable securities		746,464			262,009
Restricted cash		2,047			1,941
Licensing agreements, net		15,400			16,013
Noncurrent deferred income tax		20,498			9,840
Other intangible assets, net		206,256			214,941
Total assets	$	3,825,874		$	2,934,421

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	203,388		$	160,094
Salaries and benefits payable		45,236			34,241
Accrued warranty costs		87,424			87,408
Accrued sales program costs		119,150			90,337
Deferred revenue		27,910			680
Accrued royalty costs		103,195			30,941
Accrued advertising expense		34,146			31,071
Other accrued expenses		40,373			24,329
Income taxes payable		22,846			20,075
Total current liabilities		683,668			479,176

Deferred income taxes		10,170			13,910
Non-current income taxes		255,748			214,366
Non-current deferred revenue		38,574			-
Other liabilities		1,267			1,115

Stockholders' equity:
Common stock, $0.005 par value, 1,000,000,000 shares authorized:
Issued and outstanding shares - 200,274,000 as of December 26, 2009 and 200,363,000 as of December 27, 2008		1,001			1,002
Additional paid-in capital		32,221			-
Retained earnings		2,816,607			2,262,503
Accumulated other comprehensive income		(13,382	)		(37,651	)
Total stockholders' equity		2,836,447			2,225,854
Total liabilities and stockholders' equity	$	3,825,874		$	2,934,421

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

	13-Weeks Ended						52-Weeks Ended
	December 26,			December 27,			December 26,			December 27,
	2009			2008			2009			2008
Net sales	$	1,059,383		$	1,048,246		$	2,946,440		$	3,494,077

Cost of goods sold		572,623			617,613			1,502,329			1,940,562

Gross profit		486,760			430,633			1,444,111			1,553,515

Advertising expense		52,421			60,979			155,521			208,177
Selling, general and administrative expense		70,740			83,031			264,202			277,212
Research and development expense		71,582			50,205			238,378			206,109
Total operating expense		194,743			194,215			658,101			691,498

Operating income		292,017			236,418			786,010			862,017

Other income (expense):
Interest income		7,044			8,705			23,519			35,535
Foreign currency		(10,518	)		(40,104	)		(6,040	)		(35,286	)
Gain on sale of equity securities		2,850			-			2,741			50,884
Other		815			(673	)		2,421			1,216
Total other income (expense)		191			(32,072	)		22,641			52,349

Income before income taxes		292,208			204,346			808,651			914,366

Income tax provision		13,800			46,613			104,701			181,518

Net income	$	278,408		$	157,733		$	703,950		$	732,848

Net income per share:
Basic	$	1.39		$	0.78		$	3.51		$	3.51
Diluted	$	1.38		$	0.78		$	3.50		$	3.48

Weighted average common shares outstanding:
Basic		200,385			201,331			200,395			208,993
Diluted		201,584			201,824			201,161			210,680

Garmin Ltd. And Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands)
	52-Weeks Ended
	December 26,			December 27,
	2009			2008
Operating Activities:
Net income	$	703,950		$	732,848
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		56,695			46,910
Amortization		39,791			31,507
Loss (gain) on sale of property and equipment		(14	)		124
Provision for doubtful accounts		(1,332	)		32,355
Deferred income taxes		(25,096	)		50,887
Unrealized foreign currency losses/(gains)		7,480			15,887
Provision for obsolete and slow moving inventories		61,323			24,461
Stock compensation expense		43,616			38,872
Realized gains on marketable securities		(2,741	)		(50,884	)
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable		(131,978	)		206,101
Inventories		61,189			83,035
Other current assets		2,740			(4,356	)
Accounts payable		38,875			(236,287	)
Other current and non-current liabilities		172,215			(4,507	)
Deferred revenue		65,706			680
Income taxes payable		15,772			(90,180	)
License fees		(13,735	)		(15,289	)
Net cash provided by operating activities		1,094,456			862,164

Investing activities:
Purchases of property and equipment		(49,199	)		(119,623	)
Proceeds from sale of property and equipment		5			19
Purchase of intangible assets		(7,573	)		(6,971	)
Purchase of marketable securities		(776,966	)		(373,580	)
Redemption of marketable securities		285,970			504,324
Change in restricted cash		(106	)		(387	)
Acquisitions, net of cash acquired		0			(60,131	)
Net cash used in investing activities		(547,869	)		(56,349	)

Financing activities:
Proceeds from issuance of common stock through stock purchase plan		3,712			9,029
Proceeds from issuance of common stock from exercise of stock options		3,783			2,875
Stock repurchase		(20,258	)		(671,847	)
Dividends		(149,846	)		(150,251	)
Tax benefit related to stock option exercise		1,366			2,143
Net cash used in financing activities		(161,243	)		(808,051	)

Effect of exchange rate changes on cash and cash equivalents		9,902			(9,118	)

Net increase/(decrease) in cash and cash equivalents		395,246			(11,354	)
Cash and cash equivalents at beginning of period		696,335			707,689
Cash and cash equivalents at end of period	$	1,091,581		$	696,335

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

	Reporting Segments
	Outdoor/				Auto/
	Fitness		Marine		Mobile		Aviation		Total

13-Weeks Ended December 26, 2009

Net sales	$	148,737	$	34,003	$	812,116	$	64,527	$	1,059,383
Gross profit	$	102,316	$	22,137	$	318,989	$	43,318	$	486,760
Operating income	$	79,654	$	12,212	$	188,437	$	11,714	$	292,017

13-Weeks Ended December 27, 2008

Net sales	$	119,528	$	33,245	$	828,162	$	67,311	$	1,048,246
Gross profit	$	66,912	$	17,128	$	301,642	$	44,951	$	430,633
Operating income	$	43,703	$	7,473	$	162,914	$	22,328	$	236,418


52-Weeks Ended December 26, 2009

Net sales	$	468,924	$	177,644	$	2,054,127	$	245,745	$	2,946,440
Gross profit	$	306,842	$	105,215	$	861,900	$	170,154	$	1,444,111
Operating income	$	212,005	$	55,908	$	459,807	$	58,290	$	786,010

52-Weeks Ended December 27, 2008

Net sales	$	427,783	$	204,477	$	2,538,411	$	323,406	$	3,494,077
Gross profit	$	246,746	$	111,425	$	977,595	$	217,749	$	1,553,515
Operating income	$	160,595	$	59,983	$	524,105	$	117,334	$	862,017

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