May 5, 2020

On April 29, 2020 Garmin Ltd., announced results for the first quarter ended March 28, 2020.
 
Highlights for first quarter 2020 include: 
• Total revenue of $856 million, a 12% increase, with fitness, marine, outdoor and aviation collectively increasing 17% over the prior year quarter 
• Gross margin of 59.2% compared to 59.0% in the prior year quarter 
• Operating margin improved to 20.7% compared to 19.8% in the prior year quarter 
• Operating income of $177 million, increasing 17% over the prior year quarter 
• GAAP EPS was $0.84 and pro forma EPS(1) was $0.91, representing 25% growth over the prior year quarter 
• Strong balance sheet with no debt and $2.6 billion of cash and marketable securities 
• Garmin ADS-B solution selected for British Airways’ franchise partner SUN-AIR’s Dornier 328 aircraft 
• Recognized as an exceptional marine and aviation OEM supplier, winning several awards in the quarter 
• With the assistance of Panoptix LiveScope, Garmin sponsored anglers swept the top three spots at the 2020 Bassmaster Classic 
• Withdrawing fiscal 2020 guidance due to economic uncertainty caused by the COVID-19 pandemic 

Executive Overview from Cliff Pemble, President and Chief Executive Officer: 
“The first quarter of 2020 was remarkably strong continuing the momentum from last year,” said Cliff Pemble, president and chief executive officer of Garmin Ltd. “The economic uncertainty and impact on consumer behavior caused by the COVID-19 pandemic affects every business, and we are no exception. Accordingly, we are withdrawing our fiscal 2020 guidance. However, we are optimistic for the long term because the markets we serve and the products we offer are well positioned to thrive in the future.” 

Fitness: 
Revenue from the fitness segment grew 24% in the first quarter driven by strength in advanced wearables and contributions from Tacx. Gross margin and operating margin were 50% and 14%, respectively, resulting in 71% operating income growth. Now more than ever, people are looking for tools that can help them live a healthy life. Our fitness segment is committed to providing innovative and compelling products that motivate our customers to achieve their fitness, health, and wellness goals. 

Marine: 
Revenue from the marine segment grew 22% in the first quarter driven by our innovative chartplotters and advanced sonars. Gross margin and operating margin were 58% and 25%, respectively, resulting in 58% operating income growth. Boating is an active lifestyle pursuit that promotes family time, relaxation, and a sense of freedom. Our marine segment is committed to providing leading edge, high quality products and systems with the latest technology that our customers demand as they turn their attention to activities on the water. 

Outdoor: 
Revenue from the outdoor segment grew 14% in the first quarter with significant contributions from adventure watches. Gross margin and operating margin were 64% and 27%, respectively, resulting in 12% operating income growth. Outdoor recreation is important for those who love adventure and exploring nature. Our outdoor segment is committed to providing compelling products that enable and enrich the experiences of our customers as they turn their attention to activities in the great outdoors. 

2020 Guidance: 
We are withdrawing our fiscal 2020 guidance due to the rapid and unpredictable economic changes caused by the COVID-19 pandemic. Management expects to provide guidance once the trajectory of the economy and consumer behaviors are better understood. 

For additional information, see: https://newsroom.garmin.com/newsroom/press-release-details/2020/Garmin-reports-strong-revenue-and-operating-income-growth-for-first-quarter-2020-withdraws-fiscal-2020-guidance-due-to-COVID-19-economic-uncertainty/default.aspx