A phone recording will be available for three business days following the earnings call and can be accessed by dialing (800) 642-1687 or (706) 645-9291 and utilizing the access code #42452953. An archive of the live webcast will be available until May 30, 2008 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 2008, the Company's expected segment revenue growth rate, margins, new products to be introduced in 2008 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 29, 2007 filed by Garmin with the Securities and Exchange Commission (Commission file number 0-31983). A copy of Garmin's 2007 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 http://www.garmin.com/pressroom or contact the Media Relations department at 913-397-8200. Garmin, nuvi, and Forerunner are registered trademarks, and nuvifone and Colorado and 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 (Unaudited) (In thousands, except share information) March 29, December 29, 2008 2007 Assets Current assets: Cash and cash equivalents $598,815 $707,689 Marketable securities 17,976 37,551 Accounts receivable, net 515,648 952,513 Inventories, net 676,051 505,467 Deferred income taxes 98,506 107,376 Prepaid expenses and other current assets 24,129 22,179 Total current assets 1,931,125 2,332,775 Property and equipment, net 392,001 374,147 Marketable securities 542,937 386,954 Restricted cash 1,565 1,554 Licensing agreements, net 13,236 14,672 Other intangible assets, net 202,534 181,358 Total assets $3,083,398 $3,291,460 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $213,766 $341,053 Salaries and benefits payable 34,618 31,696 Accrued warranty costs 72,751 71,636 Other accrued expenses 129,415 280,603 Income taxes payable 16,163 76,895 Total current liabilities 466,713 801,883 Deferred income taxes 12,123 11,935 Non-current taxes 136,137 126,593 Other liabilities 980 435 Stockholders' equity: Common stock, $0.005 par value, 1,000,000,000 shares authorized: Issued and outstanding shares - 215,648,000 as of March 29, 2008 and 216,980,000 as of December 29, 2007 1,079 1,086 Additional paid-in capital 54,502 132,264 Retained earnings 2,318,914 2,171,134 Accumulated other comprehensive income 92,950 46,130 Total stockholders' equity 2,467,445 2,350,614 Total liabilities and stockholders' equity $3,083,398 $3,291,460 Garmin Ltd. And Subsidiaries Condensed Consolidated Statements of Income (Unaudited) (In thousands, except per share information) 13-Weeks Ended March 29, March 31, 2008 2007 Net sales $663,805 $492,159 Cost of goods sold 343,690 254,407 Gross profit 320,115 237,752 Selling, general and administrative expense 97,825 65,925 Research and development expense 49,558 33,503 147,383 99,428 Operating income 172,732 138,324 Other income (expense): Interest income 8,404 9,359 Interest expense (77) (32) Foreign currency (3,999) 13,205 Other 5,383 51 9,711 22,583 Income before income taxes 182,443 160,907 Income tax provision 34,664 21,047 Net income $147,779 $139,860 Net income per share: Basic $0.68 $0.65 Diluted $0.67 $0.64 Weighted average common shares outstanding: Basic 216,505 216,215 Diluted 218,979 218,704 Garmin Ltd. And Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) 13-Weeks Ended March 29, March 31, 2008 2007 Operating Activities: Net income $147,779 $139,860 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 9,861 6,213 Amortization 7,775 9,872 Loss (gain) on sale of property and equipment (1) 27 Provision for doubtful accounts 350 991 Deferred income taxes 17,067 2,159 Foreign currency transaction gains/losses 64,946 (13,052) Provision for obsolete and slow moving inventories 11,669 8,156 Stock compensation expense 9,124 3,955 Realized gains on marketable securities (5,245) - Changes in operating assets and liabilities, net of acquisitions: Accounts receivable 458,821 84,886 Inventories (169,501) (16,772) Other current assets 9,946 2,947 Accounts payable (159,590) 6,252 Other current and non-current liabilities (137,588) (34,628) Income taxes payable (60,701) (11,993) Purchase of licenses (12,247) (20,203) Net cash provided by operating activities 192,465 168,670 Investing activities: Purchases of property and equipment (26,690) (12,399) Proceeds from sale of property and equipment 8 - Purchase of intangible assets (2,562) (1,564) Purchase of marketable securities (265,758) (102,197) Redemption of marketable securities 102,374 153,924 Change in restricted cash (11) (4) Acquisitions, net of cash acquired (23,725) (68,902) Net cash used in investing activities (216,364) (31,142) Financing activities: Proceeds from issuance of common stock 1,524 2,842 Stock repurchase (90,050) - Payments on long term debt 0 (14) Tax benefit related to stock option exercise 1,633 2,190 Net cash provided by/(used in) financing activities (86,893) 5,018 Effect of exchange rate changes on cash and cash equivalents 1,918 (487) Net increase/(decrease) in cash and cash equivalents (108,874) 142,059 Cash and cash equivalents at beginning of period 707,689 337,321 Cash and cash equivalents at end of period $598,815 $479,380 Garmin Ltd. And Subsidiaries Revenue, Gross Profit, and Operating Income by Segment Reportable Segments Outdoor/ Auto/ Fitness Marine Mobile Aviation Total 13-Weeks Ended March 29, 2008 Net Sales $70,495 $56,006 $451,859 $85,445 $663,805 Operating income $19,311 $17,836 $107,641 $27,944 $172,732 Income before taxes $20,447 $19,333 $112,304 $30,359 $182,443 13-Weeks Ended March 31, 2007 Net Sales $60,527 $43,004 $316,626 $72,002 $492,159 Operating Income $21,209 $11,294 $79,525 $26,296 $138,324 Income before taxes $24,783 $13,085 $95,145 $27,894 $160,907
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