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May 01, 2001
Garmin® Reports Record First Quarter Revenue
and Net Income
CAYMAN ISLANDS, May 1 / PRNewswire / — Garmin Ltd. (Nasdaq:
GRMN) today announced record revenue of $85.5 million in its
first fiscal quarter ended March 31, 2001 — up 12 percent
from the $76.6 million generated in the year-ago quarter.
Net income increased 16 percent for the first quarter of fiscal
2001 to $23.8 million, or $0.22 per share, compared to $20.6
million, or $0.19 per share, on a proforma basis in the year-ago
quarter.
First quarter 2001 net income included a $1.1 million foreign
currency loss as a result of a weaker U.S. dollar compared
to the New Taiwan dollar. Excluding the foreign currency loss,
EPS for the quarter was $0.23.
Revenue growth was favorable across both business segments
during the first quarter as Consumer revenue totaled $58.5
million — a 17 percent growth compared to the first quarter
of 2000. Aviation revenue totaled $27.0 million — a 2
percent growth compared to the year-ago quarter. Total units
sold for the quarter increased to 320,000 from 263,000 in
2000 — representing an increase of 22 percent.
"We are pleased with our results for the first quarter,"
said Gary Burrell, co-CEO and co-chairman of Garmin Ltd. "Results
were strong across both consumer and aviation segments. Our
GPS-enabled products continued to sell well in the first quarter,
despite the current economic environment. We also have been
very successful in expanding our R&D capability during
the quarter."
Revenue growth increased across all regions during the first
quarter of fiscal 2001 when compared to the year-ago quarter:
- U.S. revenue was $60.8 million compared to $57.0 million,
up 7 percent.
- Europe revenue was $20.8 million compared to $16.7 million,
up 25 percent.
- Asia revenue was $3.9 million compared to $2.9 million,
up 34 percent.
"We are excited about the acceptance of our seven new
products that were introduced in the first quarter alone.
We are especially pleased with the positive response to the
eTrex® series and the turn-by-turn,
voice-prompted StreetPilot®
III," said Dr. Min Kao, co-CEO and co-chairman of
Garmin Ltd. "We are looking forward to the second quarter
where we anticipate the introduction of 10 additional products
to our marine portable product line, saltwater fishfinders
and fixed-mount chartplotters with superior new cartography."
"The second quarter has traditionally been one of our
stronger quarters," said Kevin Rauckman, chief financial
officer of Garmin Ltd. "We expect the second quarter
to be strong due to our scheduled new product introductions.
As we continue to retain our leadership position in both the
aviation and marine markets, we expect to achieve an eleventh
year of continuous revenue growth and high profitability."
Earnings Call Information
The information for Garmin Ltd.'s earnings call is
as follows:
When: Wednesday, May 2, 2001 at 11:00 a.m. Eastern
Where: event
calendar
How: Simply log on to the web at the address above or call
to listen in at 800-659-1025.
Contact: investor.relations@garmin.com
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 8486845. An archive of the live
webcast will be available until May 16, 2001 on the Garmin
website. 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 future financial position, revenues,
earnings, 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 the financial
reports page.
Through its operating subsidiaries, Garmin Ltd. designs and
manufactures navigation, communication and information electronics.
The company's primary markets are aviation, marine, outdoor
recreation, automotive, wireless and OEM. The headquarters
of Garmin Ltd. is located in Grand Cayman, Cayman Islands,
and its principal subsidiaries maintain offices in the United
States, Taiwan and United Kingdom. For more information, visit
the investor
relations site of Garmin Ltd. or contact the Investor
Relations department at 913-397-8200. eTrex and StreetPilot
are registered trademarks owned by Garmin Ltd. or its subsidiaries.
Garmin Ltd. And Subsidiaries
Condensed Consolidated Statements of Income
(In thousands, except per share information)
| |
Three
Months Ended |
| March
31 , 2001 |
March
25 , 2000 |
| Net sales |
$85,534 |
$76,576 |
| Cost of goods sold |
39,616 |
34,663 |
| Gross profit |
45,918 |
41,913 |
| Selling, general, and administrative expense |
9,259 |
7,091 |
| Research and development expense |
6,296 |
4,706 |
| |
15,555 |
11,797 |
| Operating income |
30,363 |
30,116 |
| Other income (expense) (A) |
1,538 |
(3,152) |
| Income before income taxes |
31,901 |
26,964 |
| Income tax provision |
8,102 |
6,365 |
| Net income |
$23,799 |
$20,599 |
|
Net income per share:
Basic
Diluted |
$ 0.22
$ 0.22 |
$ 0.21
$ 0.21 |
Weighted average common shares: outstanding:
Basic
Diluted |
108,242
108,608 |
100,000
100,000 |
(A) Includes $1.1 million of foreign currency loss in Q1
2001 and a $3.7 million loss in Q1 2000.
Garmin Ltd. And Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands)
| Assets |
Year
Ended |
| March
31 , 2001 |
Dec.
30, 2000 |
|
Current assets:
Cash and cash equivalents
Accounts receivable
Inventories
Deferred income taxes
Prepaid expenses |
$253,019
48,575
85,756
11,988
3,508 |
$251,731
32,719
89,855
12,293
1,423 |
| Total current assets |
402,846 |
388,021 |
| Property and equipment, net |
68,083 |
64,704 |
| Restricted cash |
2,644 |
5,848 |
| Other assets |
5,312 |
4,774 |
| Total assets |
$478,885 |
$463,347 |
|
Liabilities
and Stockholder's Equity |
|
|
|
Current liabilities:
Accounts payable
Salaries and benefits payable
Warranty reserve
Income taxes payable
Other accrued liabilities |
$15,209
2,865
4,714
8,571
4,928 |
$22,496
3,441
5,228
5,795
5,081 |
| Total current liabilities |
36,287 |
42,041 |
| Long-term debt |
43,983 |
46,359 |
| Deferred income taxes |
8,637 |
9,616 |
| Other liabilities |
--- |
92 |
Stockholder's equity:
Common stock
Additional paid-in capital
Retained earnings
Accumulated other comprehensive loss |
1,082
133,925
276,939
(21,968)
|
1,082
133,925
253,140
(22,908) |
| Total stockholder's equity |
389,978 |
365,239 |
| Total liabilities and stockholder's equity |
$478,885 |
$463,347 |
|
