Garmin reports strong revenue and operating income growth for

Garmin reports strong revenue and operating income growth for first quarter 2020; withdraws fiscal 2020 guidance due to COVID-19 economic uncertainty

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

	13-Weeks Ended
	March 28,			March 30,
	2020			2019
Net sales	$	856,108		$	766,050

Cost of goods sold		349,168			314,352

Gross profit		506,940			451,698

Advertising expense		26,880			27,615
Selling, general and administrative expense		137,186			126,781
Research and development expense		165,392			145,919
Total operating expense		329,458			300,315

Operating income		177,482			151,383

Other income (expense):
Interest income		12,026			13,704
Foreign currency (losses) gains		(15,423	)		314
Other income		3,550			864
Total other income (expense)		153			14,882

Income before income taxes		177,635			166,265

Income tax provision		16,455			26,092

Net income	$	161,180		$	140,173

Net income per share:
Basic	$	0.84		$	0.74
Diluted	$	0.84		$	0.74

Weighted average common shares outstanding:
Basic		190,803			189,601
Diluted		191,684			190,599

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

	March 28, 2020			December 28, 2019
Assets
Current assets:
Cash and cash equivalents	$	1,048,604		$	1,027,567
Marketable securities		391,646			376,463
Accounts receivable, net		500,242			706,763
Inventories		790,180			752,908
Deferred costs		23,650			25,105
Prepaid expenses and other current assets		174,564			169,044
Total current assets		2,928,886			3,057,850

Property and equipment, net		754,549			728,921
Operating lease right-of-use assets		66,497			63,589

Restricted cash		283			71
Marketable securities		1,199,613			1,205,475
Deferred income taxes		263,687			268,518
Noncurrent deferred costs		21,436			23,493
Intangible assets, net		658,777			659,629
Other assets		160,265			159,253
Total assets	$	6,053,993		$	6,166,799

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	200,281		$	240,831
Salaries and benefits payable		110,611			128,426
Accrued warranty costs		39,368			39,758
Accrued sales program costs		58,678			112,578
Deferred revenue		89,817			94,562
Accrued royalty costs		5,259			15,401
Accrued advertising expense		19,752			35,142
Other accrued expenses		94,760			95,060
Income taxes payable		54,466			56,913
Dividend payable		108,880			217,262
Total current liabilities		781,872			1,035,933

Deferred income taxes		117,792			114,754
Noncurrent income taxes		104,853			105,771
Noncurrent deferred revenue		61,992			67,329
Noncurrent operating lease liabilities		52,834			49,238
Other liabilities		250			278

Stockholders’ equity:
Shares, CHF 0.10 par value, 198,077 shares authorized and issued; 191,017 shares outstanding at March 28, 2020 and 190,686 shares outstanding at December 28, 2019		17,979			17,979
Additional paid-in capital		1,830,052			1,835,622
Treasury stock		(335,491	)		(345,040	)
Retained earnings		3,390,053			3,229,061
Accumulated other comprehensive income		31,807			55,874
Total stockholders’ equity		4,934,400			4,793,496
Total liabilities and stockholders’ equity	$	6,053,993		$	6,166,799

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

	13-Weeks Ended
	March 28, 2020			March 30, 2019
Operating Activities:
Net income	$	161,180		$	140,173
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		18,198			16,832
Amortization		10,006			7,179
(Gain) loss on sale of property and equipment		(1,846	)		227
Unrealized foreign currency losses		16,856			3,124
Deferred income taxes		10,378			9,105
Stock compensation expense		15,559			15,129
Realized (gain) loss on marketable securities		(272	)		60
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable, net of allowance for doubtful accounts		197,157			112,896
Inventories		(47,318	)		(39,067	)
Other current and non-current assets		(4,367	)		2,930
Accounts payable		(39,851	)		(32,786	)
Other current and non-current liabilities		(98,219	)		(76,030	)
Deferred revenue		(10,078	)		(6,744	)
Deferred costs		3,511			1,938
Income taxes payable		(5,020	)		9,616
Net cash provided by operating activities		225,874			164,582

Investing activities:
Purchases of property and equipment		(41,361	)		(30,094	)
Proceeds from sale of property and equipment		1,907			47
Purchase of intangible assets		(953	)		(413	)
Purchase of marketable securities		(344,342	)		(83,068	)
Redemption of marketable securities		311,935			80,907
Acquisitions, net of cash acquired		(6,058	)		—
Net cash used in investing activities		(78,872	)		(32,621	)

Financing activities:
Dividends		(108,571	)		(200,687	)
Purchase of treasury stock related to equity awards		(11,580	)		(12,694	)
Net cash used in financing activities		(120,151	)		(213,381	)

Effect of exchange rate changes on cash and cash equivalents		(5,602	)		(4,286	)

Net increase (decrease) in cash, cash equivalents, and restricted cash		21,249			(85,706	)
Cash, cash equivalents, and restricted cash at beginning of period		1,027,638			1,201,805
Cash, cash equivalents, and restricted cash at end of period	$	1,048,887		$	1,116,099

Garmin Ltd. And Subsidiaries
Net Sales, Gross Profit and Operating Income by Segment (Unaudited)
*(In thousands)*


	Reportable Segments
	Fitness		Marine		Outdoor		Aviation		Auto			Total
13-Weeks Ended March 28, 2020

Net sales	$	223,601	$	163,005	$	175,102	$	188,599	$	105,801		$	856,108
Gross profit		112,325		94,210		112,258		138,808		49,339			506,940
Operating income		31,011		40,159		47,166		59,321		(175	)		177,482

13-Weeks Ended March 30, 2019

Net sales	$	180,256	$	133,968	$	154,051	$	170,776	$	126,999		$	766,050
Gross profit		90,835		78,055		97,488		127,983		57,337			451,698
Operating income		18,126		25,473		41,953		57,618		8,213			151,383

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

	13-Weeks Ended
	March 28,		March 30,		Yr over Yr
	2020		2019		Change
Net sales	$	856,108	$	766,050	12%
Americas		427,401		379,456	13%
EMEA		299,867		260,021	15%
APAC		128,840		126,573	2%

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

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