Summary
Garmin Ltd. reported its first-quarter 2016 financial results, demonstrating a 7% increase in net sales to $624.0 million, up from $585.4 million in the prior year's first quarter. This growth was primarily driven by strong performance in the Outdoor, Fitness, Marine, and Aviation segments, which collectively offset a 11% decline in the Auto segment. The company's net income saw a significant rise of 32%, reaching $88.1 million ($0.46 per diluted share) compared to $66.8 million ($0.35 per diluted share) in the same period last year. Despite a decrease in gross profit margin by 400 basis points to 54%, improved operating efficiencies and a favorable foreign currency impact contributed to the net income growth. Cash flow from operations remained robust, increasing by $47.7 million year-over-year to $129.4 million, primarily due to favorable timing of payments and reduced inventory purchases. The company continues to manage its capital effectively, with $857.7 million in cash and cash equivalents and $1.5 billion in marketable securities as of March 26, 2016. Garmin also announced a continued commitment to returning capital to shareholders through dividends and share repurchases, with approximately $148.8 million remaining under its current share repurchase authorization.
Financial Highlights
51 data points| Revenue | $624.04M |
| Cost of Revenue | $284.19M |
| Gross Profit | $339.85M |
| R&D Expenses | $108.20M |
| SG&A Expenses | $95.61M |
| Operating Expenses | $236.05M |
| Operating Income | $103.80M |
| Net Income | $88.09M |
| EPS (Basic) | $0.46 |
| EPS (Diluted) | $0.46 |
| Shares Outstanding (Basic) | 189K |
| Shares Outstanding (Diluted) | 190K |
Key Highlights
- 1Net sales increased 7% to $624.0 million, driven by growth across most segments except Auto.
- 2Net income rose significantly by 32% to $88.1 million, or $0.46 per diluted share.
- 3Gross profit margin decreased by 400 basis points to 54%, reflecting changes in product mix and cost of goods sold.
- 4Operating income saw a 7% decrease to $103.8 million, impacted by lower gross profit and increased R&D and advertising expenses.
- 5Cash flow from operations showed a substantial increase of $47.7 million to $129.4 million.
- 6The company maintained a strong liquidity position with $857.7 million in cash and cash equivalents and $1.5 billion in marketable securities.
- 7Garmin repurchased approximately $148.8 million worth of common shares during the period and has $148.8 million remaining under its authorization.