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Garmin Reports Second Quarter 2012 Results With Revenue And EPS Growth; Raises Full Year EPS Guidance

The following table contains a reconciliation of GAAP net cash provided by operating activities to free cash flow.

Garmin Ltd. And Subsidiaries
Free Cash Flow
(in thousands)
13-Weeks Ended 26-weeks Ended
June 30, June 25, June 30, June 25,
2012       2011 2012       2011
Net cash provided by operating activities $222,905 $203,354 $345,133 $410,953
Less: purchases of property and equipment ($11,668 )       ($7,137 ) ($17,426 )       ($14,315 )
Free Cash Flow $211,237         $196,217   $327,707         $396,638  

Net deferred revenues and costs

The following table illustrates the effect of decreasing amounts of revenue and cost deferrals, and of increasing amortization of previous deferrals, 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 Quarterly Report on Form 10-Q for the quarter ended June 30, 2012 and are available 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).
Garmin Ltd. And Subsidiaries
Net Deferred Revenue Impact (Unaudited)
(In thousands, except per share information)
13-Weeks Ended 26-Weeks Ended
June 30, June 25, June 30, June 25,
2012         2011 2012         2011
Net sales $ (15,947 ) $ (61,701 ) $ (15,225 ) $ (83,527 )
Cost of goods sold   (4,762 )   (10,652 )   (4,608 )   (14,557 )
Gross profit (11,185 ) (51,049 ) (10,617 ) (68,970 )
Operating income (11,185 ) (51,049 ) (10,617 ) (68,970 )
Income tax provision based on normalized tax effects   (1,161 )   (7,068 )   (1,184 )   (5,862 )
Net income $ (10,024 ) $ (43,981 ) $ (9,433 ) $ (63,108 )
Net income per share:
Basic $ (0.05 ) $ (0.23 ) $ (0.05 ) $ (0.33 )
Diluted $ (0.05 ) $ (0.23 ) $ (0.05 ) $ (0.32 )

Earnings Call Information

The information for Garmin Ltd.’s earnings call is as follows:
When:       Wednesday, August 1, 2012 at 10:30 a.m. Eastern
How: Simply log on to the web at the address above or call to listen in at (888) 516-2377

An archive of the live webcast will be available until October 1, 2012 on the Garmin website at 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 2012, the Company’s expected segment revenue growth rate, margins, new products to be introduced in 2012 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 Garmin’s 2011 Form 10-K can be downloaded from

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