Garmin reports third quarter revenue and earnings growth; updates EPS guidance for 2018

▤ Summary

SCHAFFHAUSEN, Switzerland--( BUSINESS WIRE )--Garmin Ltd. (Nasdaq: GRMN – News) today announced results for the third quarter ended September 29, 2018.This release includes projections and other forward-looking statements regarding Garmin Ltd. and its business that are commonly identified by words such as “would,” “may,” “expects,” “estimates,” “plans,” “intends,” “projects,” and other words or phrases with similar meanings.Any statements regarding the Company’s GAAP and pro forma estimated earnings, EPS, and effective tax rate, and the Company’s expected segment revenue growth rates, consolidated revenue, gross margins, operating margins, currency movements, expenses, pricing, new products to be introduced in 2018, statements relating to possible future dividends 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 and uncertainties 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 30, 2017 filed by Garmin with the Securities and Exchange Commission (Commission file number 0-31983).As the tax expense from expired awards is not related to current period earnings or compensation activities, it has been identified as a pro forma adjustment.The net release of uncertain tax position reserves, amounting to approximately $27.7 million and $17.2 million in the 39-weeks ended September 29, 2018 and September 30, 2017, respectively, have not been included as pro forma adjustments in the above presentation of pro forma income tax provision as related items tend to be more recurring in nature or such amounts are individually not significant.Garmin Ltd. And SubsidiariesPro Forma Net Income (Earnings) Per Share(in thousands, except per share information)13-Weeks Ended39-Weeks EndedSeptember 29,September 30,September 29,September 30,2018201720182017 Net income (GAAP) $ 184,214 $ 151,074 $ 503,930 $ 566,456 Foreign currency gains / losses (1) 6,868 (8,579 ) 3,405 13,808 Tax effect of foreign currency gains / losses (2) (584 ) 1,755 (503 ) (2,899 ) Pro forma discrete tax items (3) - - - (161,480 ) Net income (Pro Forma) $ 190,498 $ 144,250 $ 506,832 $ 415,885 Net income per share (GAAP): Basic $ 0.98 $ 0.81 $ 2.67 $ 3.01 Diluted $ 0.97 $ 0.80 $ 2.66 $ 3.00 Net income per share (Pro Forma): Basic $ 1.01 $ 0.77 $ 2.69 $ 2.21 Diluted $ 1.00 $ 0.77 $ 2.67 $ 2.20 Weighted average common shares outstanding: Basic 188,799 187,616 188,554 187,902 Diluted 190,005 188,490 189,586 188,671 (1) The majority of the Company’s consolidated foreign currency gains and losses are driven by movements in the Taiwan Dollar, Euro, and British Pound Sterling in relation to the U.S. Dollar and the related exchange rate impact on the significant cash, receivables, and payables held in a currency other than the functional currency at one of the Company’s subsidiaries.

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Garmin

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