Slide 1: Q2 2024 Earnings
Q2 2024 Earnings July 31, 2024
Slide 2: Safe Harbor Statement
Safe Harbor Statement These materials include projections and other forward-looking statements regarding Garmin Ltd. and its business that are commonly identified by words such as “anticipates,” “would,” “may,” “expects,” “estimates,” “plans,” “intends,” “projects,” and other words or phrases with s
Slide 3: Business Update
Business Update Cliff Pemble President and CEO
Slide 4: Consolidated results
Consolidated Revenue Operating income Operating margin Q2 2024 $1.51B $342M 22.7% 14% y/y growth 20% y/y growth BUSINESS INSIGHTS • Record consolidated revenue and strong operating income growth • Surpassed 20,000 dedicated associates around the globe • Recognized as a top employer by Forbes and US
Slide 5: Fitness
Fitness Revenue Operating income Operating margin Q2 2024 $428M $108M 25% 28% y/y growth 98% y/y growth SEGMENT INSIGHTS • Growth primarily driven by wearables • Launched the Edge 1050 premium cycling computer with a vivid color touchscreen display and built-in speaker • Celebrated Global Running Da
Slide 6: Outdoor
Outdoor Revenue Operating income Operating margin Q2 2024 $440M $136M 31% 2% y/y decline 2% y/y decline SEGMENT INSIGHTS • Revenue decline primarily driven by adventure watches • Launched the Approach Z30 smart laser range finder • Launched the Alpha LTE, our first cellular based dog tracking collar
Slide 7: Aviation
Aviation Revenue Operating income Operating margin Q2 2024 $218M $50M 23% 0% y/y growth 20% y/y decline SEGMENT INSIGHTS • Continued growth in OEM product categories • Named a Best Supplier by Embraer for the 9th consecutive year • 2024 revenue growth estimate: Flat
Slide 8: Marine
Marine Revenue Operating income Operating margin Q2 2024 $273M $60M 22% 26% y/y growth 29% y/y growth SEGMENT INSIGHTS • Revenue growth primarily driven by the acquisition of JL Audio • Expanded Force Kraken trolling motor series to a broader range of boat sizes • Introduced the PanoptixTM PS-22 Ice
Slide 9: Auto OEM
Auto OEM Revenue Operating income Operating margin Q2 2024 $147M ($12M) (8%) 41% y/y growth SEGMENT INSIGHTS • Growth driven by increased shipments of domain controllers • Shipped our one millionth domain controller • Awarded the Yamaha 2024 Global Award for excellence in Technology and Development
Slide 10: Financial Update
Financial Update Doug Boessen CFO and Treasurer
Slide 11: Income Statement Q2
Income Statement Q2 (in millions) Q2 2024 Q2 2023 Y/Y Net sales $1,507 $1,321 14% Gross profit 863 759 14% Margin % 57.3% 57.5% (20 bps) Operating expenses 521 475 10% Operating income $342 $284 20% Margin % 22.7% 21.5% 120 bps GAAP EPS $1.56 $1.50 4% Pro Forma EPS $1.58 $1.45 9%
Slide 12: Revenue Q2
Revenue Q2 (in millions) Q2 2024 Q2 2023 Change Fitness $428 $335 28% Outdoor 440 448 (2%) Aviation 218 217 0% Marine 273 216 26% Auto OEM 147 105 41% Total $1,507 $1,321 14% (in millions) Q2 2024 Q2 2023 Change Americas $741 $642 15% EMEA 542 458 18% APAC 224 221 1% Total $1,507 $1,321 14%
Slide 13: Operating Expenses
Operating Expenses R&D SG&A $300 $278 $275 $251 $250 $243 $224 $225 $200 $175 (in millions) $150 $125 $100 $75 $50 $25 $0 Q2 2024 Q2 2023 * SG&A has been updated to include Advertising Expense. See Appendix for additional information.
Slide 14: Other Financial Items Q2 2024
Other Financial Items Q2 2024 Balance Sheet Cash Flow Taxes Cash and Marketable Securities Free Cash Flow Pro Forma $3.42B $218M Effective Tax Rate Accounts Receivable Capital Expenditures 17.9% $808M $37M Inventory Dividends Paid $1.32B $144M Share Repurchases $10M
Slide 15: Guidance
Guidance 2024 Revenue $5.95B Gross margin 57.0% Operating margin 21.3% Tax rate 16.0% EPS $6.00 All amounts and %s are approximate.
Slide 16: Garmin
A GARMIN.
Slide 17: Appendix
Appendix July 31, 2024
Slide 18: Non-GAAP Financial Information
Non-GAAP Financial Information To supplement our financial results presented in accordance with GAAP, this release includes the following measures defined by the Securities and Exchange Commission as non-GAAP financial measures: pro forma effective tax rate, pro forma net income (earnings) per share
Slide 19: Non-GAAP Financial Information: Pro forma net income per share
Non-GAAP Financial Information Pro forma net income (earnings) per share Management believes that net income (earnings) per share before the impact of foreign currency gains or losses and certain discrete income tax items, as discussed above, is an important measure in order to permit a consistent c
Slide 20: Non-GAAP Financial Information: Free cash flow
Non-GAAP Financial Information Free cash flow Management believes that free cash flow is an important liquidity measure because it represents the amount of cash provided by operations that is available for investing and defines it as operating cash flows less capital expenditures for property and eq
Slide 21: Forward-looking financial measures
Forward-looking financial measures The forward-looking financial measures in our 2024 guidance do not consider the potential future net effect of foreign currency exchange gains and losses, certain discrete tax items and any other impacts that may be identified as pro forma adjustments in calculatin