Garmin® Reports Record Fourth Quarter and
11th Consecutive Year of Record Revenue
CAYMAN ISLANDS, February 13, 2002 /PRNewswire/ Garmin
Ltd. (Nasdaq: GRMN) today announced record revenue and net
income for its fourth fiscal quarter and its fiscal year ended
Dec. 29, 2001.
Revenue for the quarter was $93.0 million up 9 percent
from the $85.7 million generated in the year-ago quarter.
Net income increased to $28.0 million, or $0.26 per share,
compared to $27.6 million or $0.27 per share in the year-ago
quarter ($0.26 per share in the year-ago quarter on a proforma
basis utilizing the current diluted share count of 107,906,000).
Fourth quarter net income included a $3.9 million foreign
currency gain as a result of a stronger U.S. dollar compared
to the New Taiwan Dollar. Excluding the foreign currency gain,
diluted EPS for the quarter was $0.23, which compares to a
proforma diluted EPS of $0.20 for the fourth quarter of 2000
(excluding foreign currency gains and utilizing the current
diluted share count of 107,906,000 on a proforma basis). The
diluted EPS of $0.23 recorded for the fourth quarter of 2001
was in-line with company guidance of $0.20 to $0.23.
Revenue for fiscal 2001 was $369.1 million up 7 percent
from the $345.7 million generated during fiscal 2000. Net
income increased to $113.4 million, or $1.05 per share, compared
to $105.7 million or $1.05 per share in the prior year ($0.97
per share in the prior year on a proforma basis utilizing
the current diluted share count of 108,447,000). Fiscal year
2001 net income included an $11.6 million foreign currency
gain. Excluding the foreign currency gain, diluted EPS for
the year was $0.97, which compares to a proforma diluted EPS
of $0.93 for fiscal year 2000 (excluding foreign currency
gains and utilizing the current diluted share count of 108,447,000
on a proforma basis). The diluted EPS of $0.97 recorded for
fiscal year 2001 was in-line with company guidance of $0.94
"Fiscal year 2001 represented our 11th consecutive year
of record revenue," said Dr. Min Kao, co-CEO and co-chairman
of Garmin Ltd. "The 7 percent revenue increase for the
year is quite an accomplishment given the many challenges
that we faced during 2001. Despite a recession, events of
September 11, and restrictions on U.S. airspace, which directly
impacted the aviation segment of our business, Garmin was
able to introduce 25 new products during the year, while continuing
to grow its business and investing in the future. Consumers
continued to exhibit strong demand for our GPS-enabled products
during the fourth quarter despite an overall lackluster economy.
Aviation revenue began to stabilize signaling a potential
slow return in the general aviation market. And, we continued
to expand our worldwide distribution channels as we entered
into new partnerships with BMW, Timex, Eurocopter, Dixons,
Staples, Radio Shack Canada, The Sharper Image, and Good Guys.
Our strategy of product innovation and expanding our markets
has not changed as we progress into 2002."
Consumer revenue for the fourth quarter totaled $69.8 million
a 23 percent growth compared to the fourth quarter
of 2000. Aviation revenue totaled $23.2 million a 19
percent decline compared to the year-ago quarter. Consumer
revenue for the year totaled $263.3 million a 14 percent
growth compared to fiscal 2000. Aviation revenue totaled $105.8
million a 9 percent decline compared to fiscal 2000.
Total units increased to 1,331,000 in 2001 compared to 1,223,000
in the prior year, representing a growth of 9 percent.
Revenue growth increased across all geographic regions during
fiscal year 2001 when compared to the prior year:
- U.S. revenue was $275.6 million compared to $261.5 million,
up 5 percent.
- Europe revenue was $78.5 million compared to $69.4 million,
up 13 percent.
- Asia revenue was $15.0 million compared to $14.8 million,
up 1 percent.
"We maintained our gross margin levels as margins improved
to 53.7 percent during fiscal year 2001 when compared to 53.1
percent in 2000," said Kevin Rauckman, chief financial
officer of Garmin Ltd. "We continue to generate significant
cash flow, as net cash flow increased to $74.3 million during
2001 from $43.2 million in 2000, which excludes the $104.4
million of proceeds generated from our IPO. We successfully
managed inventory levels during 2001 as inventory decreased
by $28.7 million when compared to the prior year. Fiscal year
2001 was a challenging year, however, we have been able to
maintain our momentum as we progress through the first quarter
of this year."
The company estimates that its diluted EPS for the first quarter
of 2002, excluding effects for foreign currency, will be in
the range of $0.23 to $0.25 on revenues between $93.0 million
to $98.0 million. Diluted EPS estimates for fiscal year 2002,
excluding effects of foreign currency, are in the range $1.00
to $1.07 on revenues between $400.0 million to $418.0 million.
Notice of Annual Shareholders Meeting
The annual shareholders' meeting of Garmin Ltd. will
be held on June 7, 2002. The record date for shareholders
entitled to vote at the annual meeting is April 18, 2002.
Earnings Call Information
The information for Garmin Ltd.'s earnings call is as
When: Wednesday, Feb. 13,
2002 at 11:00 a.m. Eastern
How: Simply log on to the
web at the address above or call to listen in at 800-473-8796.
A phone recording will be available for 24 hours following
the earnings call and can be accessed by dialing 800-252-6030
utilizing the access code 10917084. An archive of the live
webcast will be available until Feb. 28, 2002 on the Garmin
website at http://www.garmin.com.
To access the replay, click on Events
Through its operating subsidiaries, Garmin Ltd. designs,
manufactures, and markets navigation, communication and information
devices most of which are enabled by GPS technology.
Garmin is the leader in the aviation and consumer GPS markets,
and its products serve aviation, marine, general recreation,
automotive, wireless and OEM applications. Garmin Ltd. is
incorporated in the Cayman Islands, and its principal subsidiaries
are located in the United States, Taiwan and United Kingdom.
For more information, visit the Investor Relations site of
Garmin Ltd. at www.garmin.com, or contact the Investor Relations
department at 913-397-8200.
This release includes projections and other forward-looking
statements regarding Garmin Ltd. and its business. Any statements
regarding the companys future financial position, revenues,
earnings, product introductions, 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. Information concerning risk factors
that could affect Garmin's actual results is contained
in the Annual Report on Form 10-K for the year ended December
30, 2000 filed by Garmin with the Securities and Exchange
Commission (Commission file number 0-31983). A copy of Garmin's
Form 10-K can be downloaded from http://www.garmin.com/aboutGarmin/invRelations/finReports.html.
Garmin Ltd. And Subsidiaries
Condensed Consolidated Statements of Income
(In thousands, except per share information)
Dec 29, 2001
Dec. 29, 2001
|Dec. 30, 2000
|Cost of goods sold
|Selling, general and administrative expense
|Research and development expense
|Other income (expense)
|Income before income taxes
|Income tax provision
Net income per share:
|Weighted average common shares outstanding:
(A) Includes $2.7 million of charges related to inventory
reserves recorded in Q4 2000.
(B) Includes $3.9 million of foreign currency gain in Q4
2001 and an $8.4 million gain in Q4 2000.
(C) Includes $11.6 million of foreign currency gain for fiscal
year ended December 29, 2001 and a $7.0 million gain for fiscal
year ended December 30, 2000.
Garmin Ltd. And Subsidiaries
Condensed Consolidated Balance Sheets
Dec 29, 2001
Cash and cash equivalents
Accounts receivable, net
Deferred income taxes
Prepaid expenses and other assets
|Total current assets
|Property and equipment, net
and Stockholder's Equity
Salaries and benefits payable
Income taxes payable
Other accrued liabilities
|Total current liabilities
|Deferred income taxes
Additional paid-in capital
Accumulated other comprehensive loss
|Total stockholders' equity
|Total liabilities and stockholders' equity