United States
Securities and Exchange Commission
Washington, D.C. 20549
FORM
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission file number
(Exact name of Company as specified in its charter)
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(State or other jurisdiction |
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(I.R.S. Employer |
of incorporation or organization) |
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identification no.) |
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N/A |
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(Address of principal executive offices) |
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(Zip Code) |
Company’s telephone number, including area code: +
Securities registered pursuant to Section 12(b) of the Act:
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(Title of each class) |
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(Trading Symbol) |
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(Name of each exchange on which registered) |
Indicate by check mark whether the Company (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Company was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
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Accelerated Filer |
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Non-accelerated Filer |
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Smaller reporting company |
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Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. YES ☐ NO ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
YES ☐ NO
Number of shares outstanding of the registrant’s common shares as of July 22, 2022
Registered Shares, CHF 0.10 par value:
Garmin Ltd.
Form 10-Q
Quarter Ended June 25, 2022
Table of Contents
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Item 1. |
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1 |
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Condensed Consolidated Balance Sheets at June 25, 2022 and December 25, 2021 (Unaudited) |
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2 |
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4 |
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6 |
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Notes to Condensed Consolidated Financial Statements (Unaudited) |
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7 |
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Item 2. |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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15 |
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Item 3. |
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23 |
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Item 4. |
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23 |
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24 |
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Item 1. |
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24 |
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Item 1A. |
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24 |
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Item 2. |
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24 |
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Item 3. |
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Item 4. |
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Item 5. |
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24 |
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Item 6. |
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25 |
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26 |
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i
Part I - Financial Information
Item I - Condensed Consolidated Financial Statements
Garmin Ltd. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands, except per share information)
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June 25, |
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December 25, |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
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$ |
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Marketable securities |
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Accounts receivable, net |
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Inventories |
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Deferred costs |
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Prepaid expenses and other current assets |
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Total current assets |
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Property and equipment, net |
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Operating lease right-of-use assets |
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Noncurrent marketable securities |
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Deferred income tax assets |
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Noncurrent deferred costs |
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Goodwill |
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Other intangible assets, net |
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Other noncurrent assets |
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Total assets |
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$ |
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$ |
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Liabilities and Stockholders’ Equity |
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Current liabilities: |
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Accounts payable |
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$ |
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$ |
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Salaries and benefits payable |
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Accrued warranty costs |
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Accrued sales program costs |
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Other accrued expenses |
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Deferred revenue |
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Income taxes payable |
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Dividend payable |
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Total current liabilities |
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Deferred income tax liabilities |
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Noncurrent income taxes payable |
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Noncurrent deferred revenue |
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Noncurrent operating lease liabilities |
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Other noncurrent liabilities |
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Stockholders’ equity: |
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Shares, CHF |
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Additional paid-in capital |
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Treasury stock ( |
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Retained earnings |
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Accumulated other comprehensive (loss) income |
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Total stockholders’ equity |
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Total liabilities and stockholders’ equity |
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$ |
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$ |
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See accompanying notes.
1
Garmin Ltd. and Subsidiaries
Condensed Consolidated Statements of Income (Unaudited)
(In thousands, except per share information)
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13-Weeks Ended |
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26-Weeks Ended |
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June 25, |
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June 26, |
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June 25, |
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June 26, |
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Net sales |
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$ |
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$ |
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$ |
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$ |
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Cost of goods sold |
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Gross profit |
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Advertising expense |
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Selling, general and administrative expenses |
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Research and development expense |
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Total operating expense |
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Operating income |
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Other income (expense): |
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Interest income |
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Foreign currency losses |
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( |
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( |
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Other income |
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Total other income (expense) |
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Income before income taxes |
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Income tax provision |
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Net income |
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$ |
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$ |
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$ |
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$ |
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Net income per share: |
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Basic |
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$ |
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$ |
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$ |
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$ |
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Diluted |
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$ |
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$ |
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$ |
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$ |
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Weighted average common shares outstanding: |
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Basic |
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Diluted |
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See accompanying notes.
2
Garmin Ltd. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
(In thousands)
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13-Weeks Ended |
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26-Weeks Ended |
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June 25, |
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June 26, |
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June 25, |
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June 26, |
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Net income |
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$ |
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$ |
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$ |
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$ |
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Foreign currency translation adjustment |
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( |
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( |
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Change in fair value of available-for-sale marketable securities, net of deferred taxes |
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( |
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( |
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Comprehensive income |
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$ |
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$ |
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$ |
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$ |
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See accompanying notes.
3
Garmin Ltd. and Subsidiaries
Condensed Consolidated Statements of Stockholders’ Equity (Unaudited)
For the 13-Weeks Ended June 25, 2022 and June 26, 2021
(In thousands, except per share information)
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Common |
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Additional |
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Treasury |
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Retained |
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Accumulated |
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Total |
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Balance at March 27, 2021 |
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$ |
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$ |
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$ |
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$ |
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$ |
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$ |
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Net income |
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— |
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— |
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— |
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— |
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Translation adjustment |
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— |
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— |
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— |
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— |
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Adjustment related to unrealized gains (losses) on available-for-sale securities net of income tax effects of $ |
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— |
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— |
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— |
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— |
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( |
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Comprehensive income |
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Dividends declared ($ |
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— |
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— |
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— |
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( |
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— |
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( |
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Issuance of treasury stock related to equity awards |
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— |
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— |
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— |
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Stock compensation |
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— |
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— |
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— |
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— |
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Purchase of treasury stock related to equity awards |
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— |
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— |
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( |
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— |
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— |
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( |
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Balance at June 26, 2021 |
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$ |
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$ |
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$ |
( |
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$ |
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$ |
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$ |
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Common |
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Additional |
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Treasury |
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Retained |
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Accumulated |
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Total |
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Balance at March 26, 2022 |
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$ |
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$ |
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$ |
( |
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$ |
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$ |
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$ |
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Net income |
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— |
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— |
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— |
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— |
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Translation adjustment |
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— |
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— |
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— |
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— |
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( |
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( |
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Adjustment related to unrealized gains (losses) on available-for-sale securities net of income tax effects of $ |
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— |
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— |
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— |
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— |
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( |
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( |
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Comprehensive income |
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Dividends declared ($ |
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— |
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— |
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— |
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( |
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— |
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( |
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Issuance of treasury stock related to equity awards |
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— |
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— |
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— |
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Stock compensation |
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— |
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— |
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— |
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— |
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Purchase of treasury stock related to equity awards |
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— |
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— |
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( |
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— |
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— |
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( |
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Purchase of treasury stock under share repurchase plan |
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— |
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— |
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( |
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— |
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— |
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( |
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Balance at June 25, 2022 |
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$ |
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$ |
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$ |
( |
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$ |
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$ |
( |
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$ |
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See accompanying notes.
4
Garmin Ltd. and Subsidiaries
Condensed Consolidated Statements of Stockholders’ Equity (Unaudited)
For the 26-Weeks Ended June 25, 2022 and June 26, 2021
(In thousands, except per share information)
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Common |
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Additional |
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Treasury |
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Retained |
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Accumulated |
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Total |
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Balance at December 26, 2020 |
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$ |
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$ |
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$ |
( |
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$ |
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$ |
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$ |
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Net income |
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— |
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— |
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— |
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— |
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Translation adjustment |
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— |
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— |
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— |
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— |
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( |
) |
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( |
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Adjustment related to unrealized gains (losses) on available-for-sale securities net of income tax effects of $ |
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— |
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— |
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— |
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— |
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( |
) |
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( |
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Comprehensive income |
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Dividends declared ($ |
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— |
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— |
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— |
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( |
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— |
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( |
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Issuance of treasury stock related to equity awards |
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— |
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— |
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— |
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Stock compensation |
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— |
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— |
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— |
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