Garmin reports fourth quarter results

Dividend Date	Record Date	$s per share
June 30, 2021	June 15, 2021	$0.67
September 30, 2021	September 15, 2021	$0.67
December 31, 2021	December 15, 2021	$0.67
March 31, 2022	March 15, 2022	$0.67

In addition, the board has established March 31, 2021 as the payment date and March 15, 2021 as the record date for the final dividend installment of $0.61 per share, per the prior approval at the 2020 annual shareholders’ meeting. The first, second and third payments of $0.61 per share were made on June 30, 2020, September 30, 2020, and December 31, 2020, respectively.

Webcast Information/Forward-Looking Statements:

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

When:		Wednesday, February 17, 2021 at 10:30 a.m. Eastern
Where:		https://www.garmin.com/en-US/investors/events/
How:		Simply log on to the web at the address above or call to listen in at 855-757-3897

An archive of the live webcast will be available until February 16, 2022 on the Garmin website at www.garmin.com. To access the replay, click on the Investors 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 “anticipates,” “would,” “may,” “expects,” “estimates,” “plans,” “intends,” “projects,” and other words or phrases with similar meanings. Any statements regarding the Company’s expected fiscal 2021 GAAP and pro forma estimated earnings, EPS, and effective tax rate, and the Company’s expected segment revenue growth rates, consolidated revenue, gross margins, operating margins, potential future acquisitions, currency movements, expenses, pricing, new products launches, statements relating to possible future dividends, statements related to the ongoing impact of the COVID-19 pandemic, 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, 2020 filed by Garmin with the Securities and Exchange Commission (Commission file number 0-31983). A copy of Garmin’s 2020 Form 10-K can be downloaded from https://www.garmin.com/en-US/investors/sec/. All information provided in this release and in the attachments is as of December 26, 2020. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to us on the date hereof. We undertake no duty to update this information unless required by law.

This release and the attachments contain non-GAAP financial measures. A reconciliation to the nearest GAAP measure and a discussion of the Company's use of these measures are included in the attachments.

Garmin, the Garmin logo, the Garmin delta, Descent and Tacx are trademarks of Garmin Ltd. or its subsidiaries and are registered in one or more countries, including the U.S. Garmin SubWave, and Striker, 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 Statements of Income (Unaudited)
*(In thousands, except per share information)*

	13-Weeks Ended					52-Weeks Ended
	December 26,		December 28,			December 26,		December 28,
	2020		2019			2020		2019
Net sales	$	1,351,405	$	1,102,233		$	4,186,573	$	3,757,505

Cost of goods sold		560,422		462,777			1,705,237		1,523,529

Gross profit		790,983		639,456			2,481,336		2,233,976

Advertising expense		61,135		62,648			151,166		164,456
Selling, general and administrative expense		158,910		138,280			570,245		518,568
Research and development expense		199,672		162,005			705,685		605,366
Total operating expense		419,717		362,933			1,427,096		1,288,390

Operating income		371,266		276,523			1,054,240		945,586

Other income (expense):
Interest income		6,744		13,069			37,002		52,817
Foreign currency gains (losses)		12,627		(4,230	)		2,825		(16,799	)
Other income		828		2,051			9,343		5,618
Total other income (expense)		20,199		10,890			49,170		41,636

Income before income taxes		391,465		287,413			1,103,410		987,222

Income tax provision (benefit)		57,918		(73,379	)		111,086		34,736

Net income	$	333,547	$	360,792		$	992,324	$	952,486

Net income per share:
Basic	$	1.74	$	1.90		$	5.19	$	5.01
Diluted	$	1.73	$	1.89		$	5.17	$	4.99

Weighted average common shares outstanding:
Basic		191,278		190,165			191,085		189,931
Diluted		192,303		191,225			191,895		190,899

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

	December 26, 2020			December 28, 2019
Assets
Current assets:
Cash and cash equivalents	$	1,458,442		$	1,027,567
Marketable securities		387,642			376,463
Accounts receivable, net		849,469			706,763
Inventories		762,084			752,908
Deferred costs		20,145			25,105
Prepaid expenses and other current assets		191,569			169,044
Total current assets		3,669,351			3,057,850

Property and equipment, net		855,539			728,921
Operating lease right-of-use assets		94,626			63,589

Restricted cash		306			71
Marketable securities		1,131,175			1,205,475
Deferred income taxes		245,455			268,518
Noncurrent deferred costs		16,510			23,493
Intangible assets, net		828,566			659,629
Other assets		189,845			159,253
Total assets	$	7,031,373		$	6,166,799

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	258,885		$	240,831
Salaries and benefits payable		181,937			128,426
Accrued warranty costs		42,643			39,758
Accrued sales program costs		109,891			112,578
Deferred revenue		86,865			94,562
Accrued advertising expense		31,950			35,142
Other accrued expenses		149,817			110,461
Income taxes payable		68,585			56,913
Dividend payable		233,644			217,262
Total current liabilities		1,164,217			1,035,933

Deferred income taxes		116,844			114,754
Noncurrent income taxes		92,810			105,771
Noncurrent deferred revenue		49,934			67,329
Noncurrent operating lease liabilities		75,958			49,238
Other liabilities		15,494			278

Stockholders’ equity:
Shares, CHF 0.10 par value, 198,077 shares authorized and issued, 191,571 shares outstanding at December 26, 2020; and 190,686 shares outstanding at December 28, 2019		17,979			17,979
Additional paid-in capital		1,880,354			1,835,622
Treasury stock		(320,016	)		(345,040	)
Retained earnings		3,754,372			3,229,061
Accumulated other comprehensive income		183,427			55,874
Total stockholders’ equity		5,516,116			4,793,496
Total liabilities and stockholders’ equity	$	7,031,373		$	6,166,799

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

	52-Weeks Ended
	December 26, 2020			December 28, 2019
Operating Activities:
Net income	$	992,324		$	952,486
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		78,121			71,921
Amortization		48,594			34,254
Gain on sale of property and equipment		(1,799	)		(233	)
Unrealized foreign currency (gains) losses		(9,873	)		18,663
Deferred income taxes		6,931			(88,358	)
Stock compensation expense		80,885			63,400
Realized (gains) losses on marketable securities		(1,392	)		(799	)
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable, net of allowance for doubtful accounts		(108,859	)		(123,401	)
Inventories		28,726			(170,169	)
Other current and non-current assets		(33,690	)		(86,073	)
Accounts payable		1,447			26,192
Other current and non-current liabilities		87,761			36,660
Deferred revenue		(25,211	)		(11,032	)
Deferred costs		11,973			9,335
Income taxes payable		(20,671	)		(34,297	)
Net cash provided by operating activities		1,135,267			698,549

Investing activities:
Purchases of property and equipment		(185,401	)		(118,031	)
Proceeds from sale of property and equipment		1,977			529
Purchase of intangible assets		(2,065	)		(2,377	)
Purchase of marketable securities		(1,052,640	)		(789,352	)
Redemption of marketable securities		1,126,253			758,774
Acquisitions, net of cash acquired		(148,648	)		(300,289	)
Net cash used in investing activities		(260,524	)		(450,746	)

Financing activities:
Dividends		(450,631	)		(417,264	)
Proceeds from issuance of treasury stock related to equity awards		15,201			27,122
Purchase of treasury stock related to equity awards		(26,330	)		(25,886	)
Net cash used in financing activities		(461,760	)		(416,028	)

Effect of exchange rate changes on cash and cash equivalents		18,127			(5,942	)

Net increase (decrease) in cash, cash equivalents, and restricted cash		431,110			(174,167	)
Cash, cash equivalents, and restricted cash at beginning of year		1,027,638			1,201,805
Cash, cash equivalents, and restricted cash at end of year	$	1,458,748		$	1,027,638

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