Slide 1: Q1 2024 Earnings
A GARMIN. Q1 2024 Earnings May 1, 2024 BESTLARCE «| BORE) EMPLOYERS anes
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 Q1 2024 $1.38B $298M 21.6% 20% y/y growth 51% y/y growth BUSINESS INSIGHTS • Record consolidated revenue and operating income • Four segments with double-digit revenue growth • Expanded gross and operating margins • Strong growth in EPS
Slide 5: Fitness
Fitness Revenue Operating income Operating margin Q1 2024 $343M $68M 20% 40% y/y growth 544% y/y growth SEGMENT INSIGHTS • Record Q1 revenue • Growth across all product categories, led by strong demand for our advanced wearables • Launched Forerunner 165, offering both exceptional value and great pe
Slide 6: Outdoor
Outdoor Revenue Operating income Operating margin Q1 2024 $366M $107M 29% 11% y/y growth 39% y/y growth SEGMENT INSIGHTS • Revenue growth driven primarily by wearables • inReach SOS Year in Review provides insights on SOS incidents and the activities that triggered them • 7 Days Out docuseries highl
Slide 7: Aviation
Aviation Revenue Operating income Operating margin Q1 2024 $217M $52M 24% 2% y/y growth 10% y/y decline SEGMENT INSIGHTS • Revenue growth driven by OEM product categories • Announced a complete cockpit update for the popular Citation CJ2 business jet • Expanded applications for the GWX 8000, our sta
Slide 8: Marine
Marine Revenue Operating income Operating margin Q1 2024 $327M $88M 27% 17% y/y growth 22% y/y growth SEGMENT INSIGHTS • Revenue growth primarily driven by the acquisition of JL Audio • Named Supplier of the Year by IBBI • Launched the GPSMAP 16x3 series, adding larger touchscreen for greater clarit
Slide 9: Auto OEM
Auto OEM Revenue Operating income Operating margin Q1 2024 $129M ($16M) (13%) 58% y/y growth SEGMENT INSIGHTS • Growth driven by increased shipments of domain controllers • Awarded new business for instrument clusters in 2-wheel vehicles and infotainment systems for trucks
Slide 10: Financial Update
Financial Update Doug Boessen CFO and Treasurer
Slide 11: Income Statement Q1
Income Statement Q1 (in millions) Q1 2024 Q1 2023 Y/Y Net sales $1,382 $1,147 20% Gross profit 802 653 23% Margin % 58.1% 56.9% 120 bps Operating expenses 504 456 11% Operating income $298 $197 51% Margin % 21.6% 17.2% 440 bps GAAP EPS $1.43 $1.05 36% Pro Forma EPS $1.42 $1.02 39%
Slide 12: Revenue Q1
Revenue Q1 (in millions) Q1 2024 Q1 2023 Change Fitness $343 $245 40% Outdoor 366 329 11% Aviation 217 214 2% Marine 327 279 17% Auto OEM 129 81 58% Total $1,382 $1,147 20% (in millions) Q1 2024 Q1 2023 Change Americas $716 $612 17% EMEA 463 356 30% APAC 202 180 12% Total $1,382 $1,147 20%
Slide 13: Operating Expenses
Operating Expenses R&D SG&A $300 $275 $261 $250 $243 $234 $221 $225 $200 $175 (in millions) $150 $125 $100 $75 $50 $25 $0 Q124 Q123 * SG&A has been updated to include Advertising Expense. See Appendix for additional information.
Slide 14: Other Financial Items Q1 2024
Other Financial Items Q1 2024 Balance Sheet Cash Flow Taxes Cash and Marketable Securities Free Cash Flow Pro Forma $3.33B $402M Effective Tax Rate Accounts Receivable Capital Expenditures 15.6% $695M $33M Inventory Dividends Paid $1.30B $140M
Slide 15: GARMIN.
A GARMIN.
Slide 16: Appendix
Appendix May 1, 2024
Slide 17: 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 18: Non-GAAP Financial Information: Pro forma EPS
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 19: 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 20: 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