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Press release from Business Wire

Garmin Reports 2012 Results; Initiates $300 Million Share Repurchase Program

Wednesday, February 20, 2013

Garmin Reports 2012 Results; Initiates $300 Million Share Repurchase Program07:00 EST Wednesday, February 20, 2013 SCHAFFHAUSEN, Switzerland (Business Wire) -- Garmin Ltd. (Nasdaq:GRMN) today announced fourth quarter and full year results for the period ended December 29, 2012. Fourth Quarter 2012 Financial Summary: Total revenue of $769 million, down 16% from $910 million in fourth quarter 2011: Automotive/Mobile segment revenue decreased 25% to $437 million Outdoor segment revenue decreased 2% to $119 million Fitness segment revenue increased 10% to $104 million Aviation segment revenue decreased 2% to $70 million Marine segment revenue decreased 9% to $39 million Geographically, revenues decreased in all regions compared to fourth quarter 2011: Americas revenue was $445 million compared to $537 million, down 17% EMEA revenue was $253 million compared to $301 million, down 16% APAC revenue was $71 million compared to $72 million, down 1% Gross margin increased to 49% compared to 48% in fourth quarter 2011 Operating margin decreased to 19% compared to 22% in fourth quarter 2011 Diluted EPS decreased 22% to $0.66 from $0.85 in fourth quarter 2011; pro forma EPS decreased 29% to $0.68 from $0.96 in the same quarter of 2011. (Pro forma EPS excludes the impact of foreign currency transaction gains or losses.) Effective tax rate increased to 16.5% from 10.6% in fourth quarter 2011 Generated $163 million of free cash flow in fourth quarter 2012. Fiscal Year 2012 Financial Summary: Total revenue of $2.72 billion, down 2% from $2.76 billion in 2011 Automotive/Mobile segment revenue decreased 6% to $1.49 billion Outdoor segment revenue increased 11% to $402 million Fitness segment revenue increased 8% to $322 million Aviation segment revenue increased 2% to $292 million Marine segment revenue decreased 6% to $208 million Asia Pacific (APAC) contributed growth while the Americas and Europe, Middle East and Africa (EMEA) declined: Americas revenue was $1.51 billion compared to $1.53 billion, down 1% EMEA revenue was $945 million compared to $983 million, down 4% APAC revenue was $257 million compared to $248 million, up 4% Gross margin increased to 53% compared to 49% in 2011 Operating margin increased to 22% from 20% in 2011 Diluted earnings per share (EPS) increased 3% to $2.76 from $2.67 in fiscal year 2011; pro forma EPS increased 4% to $2.85 from $2.73 in fiscal year 2011. (Pro forma EPS excludes the impact of foreign currency transaction gains or losses.) Effective tax rate increased to 13.1% from 10.8% in fiscal year 2011 Generated over $646 million of free cash flow in 2012 leading to a cash and marketable securities balance of $2.9 billion. Note: In accordance with GAAP, the Company is deferring significant revenue and the related costs associated with high margin sales of lifetime maps, connected services and premium traffic over their estimated economic life. A table outlining the impact of this net deferral in both 2012 and 2011 is included for reference. Results have not been adjusted unless specifically stated as such. Business highlights: Achieved full year gross and operating margin expansion allowing for EPS growth. Sold almost 15.4 million units in 2012 with unit growth in outdoor, fitness, and automotive OEM largely offsetting declines in personal navigation devices (PND). Continued to be the world-wide PND market share leader with market share gains globally. Honored as a new addition to the S&P 500 on December 12. Unveiled our next-generation infotainment system, K2, featuring a digital cockpit providing drivers a safe and intuitive way to stay connected and access all the functions they need while on the road. Introduced the 2013 nüvi® lineup in January 2013 with improved form factors and features, including Real Directions™, to appeal across a broad spectrum of customers. Launched the Edge® 510 and 810 for cyclists providing the accuracy and reliability expected from Garmin with the additional benefit of real-time connectivity. Executive overview from Cliff Pemble, President and Chief Executive Officer: “Entering 2012, we forecasted $2.7-2.8 billion of revenue and $2.45-2.60 of EPS. I am pleased to say that we met or exceeded those targets through a combination of solid execution by our associates and ongoing market share gains across our diverse set of products and geographies,” said Cliff Pemble, president and chief executive officer of Garmin Ltd. “Though business trends decelerated in the fourth quarter, we remain focused on new product development and market share gains to offset the secular declines in the PND industry and the continued generation of long-term shareholder value. The automotive/mobile segment revenues declined 6% and 25% for the full year and fourth quarter, respectively. We experienced steeper declines in the quarter as our consistent market share gains could no longer offset the industry declines. Though the PND market size continued to decline in 2012, we again emerge from the year with increased market share and strong profitability. As we look at long-term opportunities within the segment, we remain focused on capturing market share in the OEM infotainment industry. Our K2 digital cockpit for the auto OEM market was well-received at the recent Consumer Electronics Show garnering a nomination for CNET's Best of Show. We continue to pursue business opportunities in this high growth segment with our innovative solutions. The outdoor segment posted a slight revenue decline in the fourth quarter as we compared against fourth quarter 2011 when growth was 35%. For the full year, the segment grew 11% and contributed $165 million of operating income. We continued to see strong results from our golf portfolio, as well as our dog-focused products. As we enter 2013, we are excited to offer additional products in each of those niches with the Approach® S2 for the golf community and the BarkLimiter™ and the Delta™ series designed for both the pet and sport dog markets. These products, along with other compelling introductions to come later in the year, are expected to contribute to growth in 2013. The fitness segment posted revenue growth of 10% in the quarter and full-year growth of 8%, contributing $112 million of full year operating income. Growth in the segment fell slightly short of our full-year expectations due to product delays but strong fourth quarter results point to ongoing growth opportunities within the category. As we had anticipated, the Forerunner® 10 was a popular holiday gift and we expect the momentum from that product to continue in 2013. In addition, we recently launched the connected Edge 510 and 810 for the cycling community which offer live tracking capabilities. The product pipeline is robust driving our expectations for growth in 2013. Aviation segment revenues decreased slightly in the fourth quarter but increased 2% on a full year basis, contributing $73 million of full year operating income. While the general aviation market remains challenging with OEM production showing few signs of recovery, we are investing for the future and looking forward to significant certification completions with both LearJet and Cessna in 2013. We have also introduced new aftermarket products that we expect to drive increased demand in 2013 including VHF radios and FAA certified traffic solutions, covering both airborne and ground-based traffic. We anticipate that these events will lead to stronger growth in 2013. The marine segment posted full year and fourth quarter revenue declines of 6% and 9%, respectively. The marine industry, like aviation, has been slow to recover and economic turmoil in southern Europe has worsened the situation. We have continued to invest heavily in research and development for our marine segment causing a significant decline in operating margins and profits. While this is difficult in the near-term, we do believe that it is justified by the long-term opportunities presented in terms of both market share gains and industry improvement. New chartplotters, fishfinders and a marine-focused watch are a result of this investment and should allow us to return to revenue growth in 2013.” Financial overview from Kevin Rauckman, Chief Financial Officer: “While fourth quarter results did not meet our expectations, we remain excited about the long-term opportunities that are developing as we continue to invest in growing industries and expand our strong position in others,” said Kevin Rauckman, Chief Financial Officer of Garmin Ltd. “With dedicated associates and a diversified business model, we will execute around a 2013 business plan focused on innovation and efficiency to drive long-term growth. Gross margin for the overall business in the fourth quarter was 49% which represents an improvement from the fourth quarter 2011 level of 48%. The improvement resulted from strong margins in aviation where a variety of factors contributed including product mix and a 2011 OEM program contribution that negatively impacted margins. The automotive/mobile segment gross margin was consistent at 38%. Operating margin for the overall business was 19% in the current quarter as improved gross margins were offset by deleveraging of operating expenses. Total operating expenses were down $10 million on a year-over-year basis. Advertising expenses decreased by $9 million as volume-related cooperative advertising declined. Selling, general and administrative and research and development expenses were basically flat year-over-year. We generated $163 million of free cash flow in the fourth quarter of 2012 and $646 million for the full year. Our strong cash generation will continue to fund significant returns to our shareholders through our quarterly dividend and recently approved share buyback program. The strong cash and marketable securities balance of approximately $2.9 billion at the end of the year also affords us the opportunity to pursue acquisitions that fit within our corporate framework.” Dividend Recommendation and Share Repurchase Program The Board intends to recommend to the shareholders for approval at the annual meeting to be held on June 7, 2013 a cash dividend in the amount of $1.80 per share (subject to possible adjustment based on the total amount of the dividend in Swiss Francs as approved at the annual meeting), payable in four equal installments. The Board currently anticipates the scheduling of the dividend in four installments as follows: Dividend Date   Record Date   $s per share June 28, 2013 June 18, 2013 $0.45 September 30, 2013 September 16, 2013 $0.45 December 31, 2013 December 16, 2013 $0.45 March 31, 2014 March 17, 2014 $0.45   In addition, we have one additional payment of $0.45 due on March 29, 2013 to shareholders of record on March 15, 2013. On February 15, our Board of Directors authorized the Company to repurchase up to $300 million of the Company's shares as market and business conditions warrant through December 31, 2014. The repurchases may be made from time to time on the open market at prevailing market prices or in negotiated transactions off the market. The Company views the stock repurchase as an appropriate use of cash given the long-term growth prospects of the Company and ongoing free cash flow generation. 2013 Guidance     2013 Guidance Revenue   $2.5 – 2.6 B Gross Margin 53 - 54% Operating Income $480 - $500 M Operating Margin 19 - 20% EPS (Pro Forma) $2.30 - $2.40   We expect 2013 revenue of $2.5 - $2.6 billion as growth in the outdoor, fitness, marine and aviation segments partially offset ongoing declines in the PND market. We anticipate gross margins to be stable to slightly improved at 53-54% while operating margins decline slightly to 19-20% due to ongoing research and development investment. This results in a currently forecasted 2013 EPS range of $2.30 - $2.40. This EPS range assumes an effective tax rate of 14% and a full-year EUR/USD currency exchange rate of 1.30. Non-GAAP MeasuresPro Forma net income (earnings) per share Management believes that net income per share before the impact of foreign currency translation gain or loss is an important measure. The majority of the Company's consolidated foreign currency gain or loss results from transactions involving the Euro, the British Pound Sterling and the Taiwan Dollar and from the exchange rate impact of the significant cash and marketable securities, receivables and payables held in U.S. dollars at the end of each reporting period by the Company's various non U.S. subsidiaries. Such gain or loss is required under GAAP because the functional currency of the subsidiaries differs from the currency in which various assets and liabilities are held. However, there is minimal cash impact from such foreign currency gain or loss. Accordingly, earnings per share before the impact of foreign currency translation gain or loss allow an assessment of the Company's operating performance before the non-cash impact of the position of the U.S. Dollar versus other currencies, which permits a consistent comparison of results between periods. The following table contains a reconciliation of GAAP net income per share to pro forma net income per share. Garmin Ltd. And SubsidiariesNet income per share (Pro Forma)(in thousands, except per share information)         13-Weeks Ended   14-Weeks Ended   52-Weeks Ended   53-Weeks EndedDecember 29,December 31,December 29,December 31,2012   20112012   2011   Net Income (GAAP) $ 129,294 $ 165,556 $ 542,403 $ 520,896 Foreign currency (gain) / loss, net of normalized tax effects $ 3,254 $ 21,930 $ 17,389 $ 10,790 Net income (Pro Forma) $ 132,548 $ 187,486 $ 559,792 $ 531,686   Net income per share (GAAP): Basic $ 0.66 $ 0.85 $ 2.78 $ 2.68 Diluted $ 0.66 $ 0.85 $ 2.76 $ 2.67   Net income per share (Pro Forma): Basic $ 0.68 $ 0.96 $ 2.87 $ 2.74 Diluted $ 0.68 $ 0.96 $ 2.85 $ 2.73   Weighted average common shares outstanding: Basic 195,101 194,319 194,909 194,105 Diluted 196,275 195,100 196,213 194,894   Free cash flow Management believes that free cash flow is an important financial measure because it represents the amount of cash provided by operations that is available for investing and defines it as operating cash flow less capital expenditures for property and equipment. The following table contains a reconciliation of GAAP net cash provided by operating activities to free cash flow. Garmin Ltd. And SubsidiariesFree Cash Flow(in thousands)         13-Weeks Ended14-Weeks Ended   52-Weeks Ended53-Weeks EndedDecember 29,December 31,December 29,December 31,2012201120122011   Net cash provided by operating activities $ 174,711 $ 224,858 $ 684,745 $ 822,334 Less: purchases of property and equipment   ($11,564 )   ($11,843 )   ($38,445 )   ($38,366 ) Free Cash Flow $ 163,147   $ 213,015   $ 646,300   $ 783,968     Net deferred revenues and costs The following table illustrates the net effect of deferred revenues and costs associated with certain products bundled with content and services in the current quarter and year-to-date periods. These deferred revenues and costs are being amortized over the estimated economic lives of the products. Additional details will be available in the Annual Report on Form 10-K for the year ended December 29, 2012 that will be filed by Garmin with the Securities and Exchange Commission (Commission file number 0-31983) next week. Garmin Ltd. And SubsidiariesNet Deferred Revenue Impact (Unaudited)(In thousands, except per share information)         13-Weeks Ended   14-Weeks Ended   52-Weeks Ended   53-Weeks EndedDecember 29,December 31,December 29,December 31,2012201120122011 Net sales $ (33,035 ) $ (71,976 ) $ (68,303 ) $ (179,333 ) Cost of goods sold   (6,510 )   (14,793 )   (15,451 )   (36,117 ) Gross profit (26,525 ) (57,183 ) (52,852 ) (143,216 )   Operating income (26,525 ) (57,183 ) (52,852 ) (143,216 )   Income tax provision based on normalized tax effects   (4,386 )   (6,045 )   (6,950 )   (15,510 )               Net income $ (22,139 )   $ (51,138 )   $ (45,902 )   $ (127,706 )   Net income per share: Basic -$0.11 -$0.26 -$0.24 -$0.66 Diluted -$0.11 -$0.26 -$0.23 -$0.66 Return on invested capital (ROIC) Management defines return on invested capital (ROIC) as net operating profit after taxes divided by operating invested capital. Management believes that ROIC provides greater visibility into how effectively Garmin deploys capital. ROIC is not a measure of financial performance under accounting principles generally accepted in the United States (GAAP), and may not be defined and calculated by other companies in the same manner as Garmin does. ROIC should not be considered in isolation or as an alternative to net income as an indicator of company performance. The following table contains a GAAP reconciliation of return on invested capital. Garmin Ltd. And SubsidiariesReturn on Invested Capital (ROIC)(in thousands)     52-Weeks Ended   53-Weeks EndedDecember 29,December 31,2012   2011 Net Operating Profit After Taxes (NOPAT): Operating Income (EBIT) $ 604,160 $ 553,767 Less: Taxes on Operating Income   ($79,447 )     ($59,973 ) Net Operating Profit after Taxes (NOPAT) $ 524,713     $ 493,794     Invested Capital (IC): Total Assets $ 4,819,124 $ 4,471,338 Less: Cash & Marketable Securities ($2,872,575 ) ($2,495,315 ) Less: Deferred Income Taxes ($162,704 ) ($142,307 ) Less: Non-Interest Bearing Current Liabilities   ($909,026 )     ($858,279 ) Operating Invested Capital (IC) $ 874,819     $ 975,437         Return on Invested Capital   60 %     51 %   Earnings Call Information The information for Garmin Ltd.'s earnings call is as follows: When:   Wednesday, February 20, 2012 at 10:30 a.m. Eastern Where: http://www.garmin.com/aboutGarmin/invRelations/irCalendar.html How: Simply log on to the web at the address above or call to listen in at (888) 437.9366 (due to the limited number of lines available, we encourage you to participate via the webcast). Contact: investor.relations@garmin.com   An archive of the live webcast will be available until March 27, 2013 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 2013, the Company's expected segment revenue growth rate, margins, new products to be introduced 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 31, 2011 filed by Garmin with the Securities and Exchange Commission (Commission file number 0-31983). A copy of such 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, fitness, marine, aviation, and OEM applications. A member of the S&P 500 Index, Garmin Ltd. is incorporated in Schaffhausen, Switzerland, and its principal subsidiaries are located in the United States, Taiwan and the United Kingdom. For more information, visit Garmin's virtual pressroom at www.garmin.com/pressroom or contact the Media Relations department at 913-397-8200. Garmin, nüvi, Approach, and Forerunner are registered trademarks, and Real Directions, Edge, BarkLimiter and Delta 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 SubsidiariesCondensed Consolidated Balance Sheets(In thousands, except share information)     December 29,December 31,2012   2011Assets Current assets: Cash and cash equivalents $ 1,231,180 $ 1,287,160 Marketable securities 153,083 111,153 Accounts receivable, net 603,673 607,450 Inventories, net 389,931 397,741 Deferred income taxes 68,785 53,670 Deferred costs 53,948 40,033 Prepaid expenses and other current assets   35,520     77,630   Total current assets 2,536,120 2,574,837   Property and equipment, net 409,751 417,105   Marketable securities 1,488,312 1,097,002 Restricted cash 836 771 Noncurrent deferred income tax 93,920 88,637 Noncurrent deferred costs 42,359 40,823 Intangible assets, net 232,597 246,646 Other assets   15,229     5,517   Total assets $ 4,819,124   $ 4,471,338     Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 131,263 $ 164,010 Salaries and benefits payable 55,969 45,964 Accrued warranty costs 37,301 46,773 Accrued sales program costs 57,080 52,262 Deferred revenue 252,375 188,987 Accrued license fees 71,745 99,025 Accrued advertising expense 25,192 31,915 Other accrued expenses 69,806 67,912 Deferred income taxes 332 5,782 Income taxes payable 32,031 77,784 Dividend payable   175,932     77,865   Total current liabilities 909,026 858,279   Deferred income taxes 2,467 4,951 Non-current income taxes 181,754 161,904 Non-current deferred revenue 193,047 188,132 Other liabilities 1,034 1,491   Stockholders' equity: Shares, CHF 10 par value, 208,077,418 shares authorized and issued; 195,591,854 shares outstanding at December 29, 2012 and 194,622,617 shares outstanding at December 31, 2011 1,797,435 1,797,435 Additional paid-in capital 72,462 61,869 Treasury stock (81,280 ) (103,498 ) Retained earnings 1,604,625 1,413,582 Accumulated other comprehensive income   138,554     87,193   Total stockholders' equity   3,531,796     3,256,581   Total liabilities and stockholders' equity $ 4,819,124   $ 4,471,338       Garmin Ltd. And SubsidiariesCondensed Consolidated Statements of Income (Unaudited)(In thousands, except per share information)         13-Weeks Ended   14-Weeks Ended   52-Weeks Ended   53-Weeks EndedDecember 29,December 31,December 29,December 31,2012201120122011 Net sales $ 768,548 $ 909,644 $ 2,715,675 $ 2,758,569   Cost of goods sold   394,694     475,857     1,277,195     1,419,977     Gross profit 373,854 433,787 1,438,480 1,338,592   Advertising expense 46,806 55,660 138,757 145,024 Selling, general and administrative expense 94,026 93,383 369,790 341,217 Research and development expense   83,263     84,655     325,773     298,584   Total operating expense   224,095     233,698     834,320     784,825     Operating income 149,759 200,089 604,160 553,767   Other income (expense): Interest income 8,830 9,494 35,108 32,812 Foreign currency (3,898 ) (24,523 ) (20,022 ) (12,100 ) Other   219     67     5,282     9,682   Total other income (expense)   5,151     (14,962 )   20,368     30,394     Income before income taxes 154,910 185,127 624,528 584,161   Income tax provision   25,616     19,571     82,125     63,265     Net income $ 129,294   $ 165,556   $ 542,403   $ 520,896     Net income per share: Basic $ 0.66 $ 0.85 $ 2.78 $ 2.68 Diluted $ 0.66 $ 0.85 $ 2.76 $ 2.67   Weighted average common shares outstanding: Basic 195,101 194,319 194,909 194,105 Diluted 196,275 195,100 196,213 194,894   Garmin Ltd. And SubsidiariesCondensed Consolidated Statements of Cash Flows (Unaudited)(In thousands)     52-Weeks Ended   53-Weeks EndedDecember 29,   December 31,20122011Operating Activities: Net income $ 542,403 $ 520,896 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 52,632 54,610 Amortization 37,835 39,925 Gain on sale of property and equipment (367 ) (2,192 ) Provision for doubtful accounts 4,678 2,317 Deferred income taxes (32,080 ) (42,475 ) Unrealized foreign currency losses 40,042 18,583 Provision for obsolete and slow moving inventories 11,003 16,047 Stock compensation expense 29,274 40,212 Realized gains on marketable securities (2,980 ) (4,322 ) Changes in operating assets and liabilities, net of acquisitions: Accounts receivable 9,077 169,543 Inventories 3,997 (6,385 ) Other current and non-current assets 39,717 (60,996 ) Accounts payable (38,929 ) (26,329 ) Other current and non-current liabilities (33,235 ) (61,103 ) Deferred revenue 67,931 179,439 Deferred costs (15,441 ) (36,120 ) Income taxes payable   (30,812 )   20,684   Net cash provided by operating activities 684,745 822,334   Investing activities: Purchases of property and equipment (38,445 ) (38,366 ) Proceeds from sale of property and equipment 757 4,127 Purchase of intangible assets (6,783 ) (6,933 ) Purchase of marketable securities (1,429,593 ) (1,172,555 ) Redemption of marketable securities 985,598 779,213 Change in restricted cash (65 ) 506 Acquisitions, net of cash acquired   (7,697 )   (54,190 ) Net cash used in investing activities (496,228 ) (488,198 )   Financing activities: Dividends paid (253,386 ) (310,763 ) Issuance of treasury stock related to equity awards 22,798 22,337 Tax benefit from issuance of equity awards (516 ) 3,313 Purchase of treasury stock   (18,745 )     (22,300 ) Net cash used in financing activities (249,849 ) (307,413 )   Effect of exchange rate changes on cash and cash equivalents 5,352 (499 )     Net (decrease)/increase in cash and cash equivalents (55,980 ) 26,224 Cash and cash equivalents at beginning of period   1,287,160     1,260,936   Cash and cash equivalents at end of period $ 1,231,180   $ 1,287,160     Garmin Ltd. And SubsidiariesRevenue, Gross Profit, and Operating Income by Segment (Unaudited)             Reporting SegmentsOutdoorFitnessMarineAuto/MobileAviationTotal   13-Weeks Ended December 29, 2012   Net sales $ 118,517 $ 103,973 $ 39,516 $ 436,654 $ 69,888 $ 768,548 Gross profit $ 73,990 $ 62,570 $ 19,995 $ 166,153 $ 51,146 $ 373,854 Operating income $ 46,579 $ 35,791 ($1,583 ) $ 50,557 $ 18,415 $ 149,759   14-Weeks Ended December 31, 2011   Net sales $ 121,045 $ 94,752 $ 43,250 $ 579,193 $ 71,404 $ 909,644 Gross profit $ 82,161 $ 60,989 $ 25,868 $ 218,738 $ 46,031 $ 433,787 Operating income $ 59,707 $ 40,808 $ 9,285 $ 77,750 $ 12,539 $ 200,089                             52-Weeks Ended December 29, 2012   Net sales $ 401,747 $ 321,788 $ 208,136 $ 1,492,440 $ 291,564 $ 2,715,675 Gross profit $ 260,564 $ 204,615 $ 125,201 $ 642,913 $ 205,187 $ 1,438,480 Operating income $ 164,611 $ 111,807 $ 34,000 $ 220,766 $ 72,976 $ 604,160   53-Weeks Ended December 31, 2011   Net sales $ 363,223 $ 298,163 $ 221,730 $ 1,590,598 $ 284,855 $ 2,758,569 Gross profit $ 238,850 $ 181,759 $ 129,653 $ 597,017 $ 191,313 $ 1,338,592 Operating income $ 161,511 $ 102,101 $ 57,645 $ 160,837 $ 71,673 $ 553,767 Garmin Ltd.INVESTOR CONTACT:Kerri Thurston 913-397-8200investor.relations@garmin.comorMEDIA CONTACT:Ted Gartner, 913-397-8200media.relations@garmin.com