This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Garmin Reports Third Quarter 2012 Results With Growth In Revenue, Operating Margin And EPS; Raises Full Year EPS Guidance

Free cash flow generation continued to be strong with $155 million generated in the quarter. We had a cash and marketable securities balance of over $2.7 billion at the end of the quarter. We intend to continue to fund our quarterly dividend and future acquisitions with our strong cash position.”

Non-GAAP Measures

Pro 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 Subsidiaries
Net income per share (Pro Forma)
(in thousands, except per share information)
       
13-Weeks Ended 39-weeks Ended
Sept 29, Sept 24, Sept 29, Sept 24,
2012   2011 2012   2011
 
Net Income (GAAP) $ 140,348 $ 150,381 $ 413,109 $ 355,340
Foreign currency (gain) / loss, net of tax effects $ 5,492     ($12,795 ) $ 14,184     ($11,062 )
Net income (Pro Forma) $ 145,840   $ 137,586   $ 427,293   $ 344,278  
 
Net income per share (GAAP):
Basic $ 0.72 $ 0.77 $ 2.12 $ 1.83
Diluted $ 0.72 $ 0.77 $ 2.11 $ 1.82
 
Net income per share (Pro Forma):
Basic $ 0.75 $ 0.71 $ 2.19 $ 1.77
Diluted $ 0.74 $ 0.71 $ 2.18 $ 1.77
 
Weighted average common shares outstanding:
Basic 194,912 194,112 194,834 194,028
Diluted 196,161 194,828 196,171 194,809
 

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.

4 of 7

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,928.20 -142.20 -0.79%
S&P 500 2,089.46 -25.03 -1.18%
NASDAQ 4,939.3270 -77.6020 -1.55%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs