01—Abstract
Summary
Summary of the 10-K/A filed April 2, 2002. Cited figures are marked; the original filing is the authoritative source.
Garmin Ltd. filed its 2001 Form 10-K/A on April 2, 2002, primarily to add the signature of its independent auditors.
The report covers the fiscal year ended December 29, 2001, and provides a comprehensive overview of the company's financial performance and position. Garmin reported net sales of $369.1 milliona in 2001, a slight increase from $345.7 million in 2000, demonstrating continued revenue growth. Net income also saw a healthy rise, reaching $113.4 million in 2001 compared to $105.7 million in 2000, indicating strong profitability.
Key financial highlights include robust operating income and a solid balance sheet. The company's total assets grew to $532.2 millionb, with a significant portion in current assets, including a healthy cash and equivalents balance. While inventories decreased, accounts receivable increased, reflecting a dynamic sales environment.
The company's strong retained earnings balance underscores its profitability over time. Investors should note the substantial increase in 'Other comprehensive loss,' primarily due to foreign currency translation adjustments, which impacts equity but not current earnings.
02—Key points
Key Highlights
- Net sales increased by 6.8% to $369.1 million for the year ended December 29, 2001, compared to $345.7 million in 2000.
- Net income grew to $113.4 million in 2001, up from $105.7 million in 2000, reflecting improved profitability.
- Total assets increased to $532.2 million as of December 29, 2001, up from $463.3 million in the prior year.
- The company maintained a strong cash position, with cash and cash equivalents of $192.8 million at the end of 2001.
- Inventories decreased by $28.7 million to $61.1 million, suggesting efficient inventory management or strong sales pace.
- Operating income remained strong at $131.3 million, demonstrating consistent operational performance.
- Accumulated other comprehensive loss significantly increased to a deficit of $39.3 million, primarily due to foreign currency translation adjustments.
03—Questions
Frequently Asked Questions
What is the primary purpose of this 10-K/A filing?
This filing (10-K/A) is an amendment to Garmin Ltd.'s previously filed 2001 Form 10-K. Its sole purpose is to add the name and signature of the independent auditors, Ernst & Young LLP, which were inadvertently omitted in the initial electronic filing on March 27, 2002.
How did Garmin's sales and net income perform in fiscal year 2001 compared to 2000?
Garmin Ltd. experienced growth in both sales and net income. Net sales increased from $345.7 million in 2000 to $369.1 million in 2001. Net income rose from $105.7 million in 2000 to $113.4 million in 2001.
What is the composition of Garmin's assets, and are there any notable changes?
Garmin's total assets grew to $532.2 million in 2001. Key asset components include cash and cash equivalents ($192.8 million), marketable securities ($40.8 million current and $90.7 million non-current), accounts receivable ($48.0 million), and inventories ($61.1 million). Notably, inventories decreased significantly from $89.9 million in 2000, while marketable securities and intangible assets saw substantial increases.
How does Garmin manage its long-term debt and interest rate exposure?
Garmin utilizes Industrial Revenue Bonds for financing facilities and has entered into interest rate swap agreements to manage its exposure to floating interest rates. These swaps effectively convert a portion of their floating-rate debt to a fixed-rate basis, mitigating the impact of interest rate fluctuations. The company's long-term debt was $28.0 million in 2001, down from $46.4 million in 2000.
04—Continue