Business Wire | Apr 28, 2021 07:00AM EDT

Garmin announces first quarter results

Apr. 28, 2021

SCHAFFHAUSEN, Switzerland--(BUSINESS WIRE)--Apr. 28, 2021--Garmin(r) Ltd. (NASDAQ: GRMN), today announced results for the first quarter ended March 27, 2021.

Highlights for first quarter 2021 include:

* Total revenue of $1.07 billion, a 25% increase over the prior year quarter led by double-digit growth in the fitness, outdoor, marine and auto segments * Gross margin improved to 59.8% compared to 59.2% in the prior year quarter * Operating margin improved to 23.3% compared to 20.7% in the prior year quarter * Operating income of $250 million, a 41% increase over the prior year quarter * GAAP EPS was $1.14 and pro forma EPS(1) was $1.18, representing 30% growth in pro forma EPS over the prior year quarter * Launched Lily(tm), our smallest and most fashionable smartwatch * Expanded our market reach to serve endurance athletes with the launch of Enduro(tm) * Entered the powersports market with an all-new assortment of products including the rugged Tread(tm) power sport navigator, the PowerSwitch digital switching system and the BC 40 wireless camera * Garmin Autoland named a 2020 finalist for the esteemed Robert J. Collier Trophy

(In thousands, except per share 13-Weeks Ended information)

March 27, March 28, YoY

2021 2020 Change

Net sales $1,072,327 $856,108 25%

Fitness 308,125 223,601 38%

Outdoor 256,455 175,102 46%

Aviation 173,889 188,599 (8)%

Marine 209,372 163,005 28%

Auto 124,486 105,801 18%



Gross margin % 59.8% 59.2%



Operating income % 23.3% 20.7%



GAAP diluted EPS $1.14 $0.84 36%

Pro forma diluted EPS^(1) $1.18 $0.91 30%

(1) See attached Non-GAAP Financial Information for discussion and reconciliation of non-GAAP financial measures, including pro forma diluted EPS

Executive Overview from Cliff Pemble, President and Chief Executive Officer:

"Broad momentum across our business segments resulted in strong double-digit revenue and profit growth," said Cliff Pemble, President and CEO of Garmin. "Interest in fitness, health, and active lifestyle products has never been higher, and we believe that we are well positioned to capitalize on the opportunities ahead."

Fitness:

Revenue from the fitness segment grew 38% in the first quarter driven by strong demand for our cycling and advanced wearables products. Gross margin and operating margin were 56% and 24%, respectively, resulting in 138% operating income growth. During the quarter, we launched Lily, our smallest and most fashionable smartwatch to-date. We also launched the Rally(tm)series of power meters including a version designed specifically for off-road cycling, representing a new market opportunity.

Outdoor:

Revenue from the outdoor segment grew 46% in the first quarter with growth across all categories led by strong demand for adventure watches. Gross margin and operating margin were 67% and 36%, respectively, resulting in 97% operating income growth. During the quarter, we launched Enduro, a new adventure watch built for endurance racing with up to 80 hours of continuous operation in GPS mode while harvesting power from the sun. We also expanded the Approach(r) family of golf tracking devices with the launch of three new products, each offering exemplary battery life and designed to benefit golfers of every skill level.

Aviation:

Revenue from the aviation segment declined 8% in the first quarter primarily due to reduced contributions from ADS-B products. Gross margin and operating margin were 73% and 26%, respectively. During the quarter, the Garmin G3000(r) integrated flight deck was selected by Joby Aviation for its all-electric vertical takeoff and landing (eVTOL) aircraft. In addition, we recently received additional GFC 500/600 autopilot certifications, providing superior autopilot performance, greater reliability, and tremendous safety benefits to a growing number of aircraft models.

Marine:

Revenue from the marine segment grew 28% in the first quarter with growth across multiple categories. Gross margin and operating margin were 58% and 29%, respectively, resulting in 53% operating income growth. During the quarter, we experienced strong demand for chartplotters and Panoptix(tm) LiveScope(tm) sonars as customers prepare their boats for the upcoming season.

Auto:

Revenue from the auto segment grew 18% during the first quarter primarily driven by OEM programs and growth in consumer specialty categories. Gross margin was 39%, and we recorded an operating loss of $24 million in the quarter driven by investments in OEM programs. During the quarter, we entered the powersports market with the launch of the new Tread power sport navigator, the PowerSwitch digital switching system and BC 40 wireless camera. This trio of solutions helps recreational off-roaders find their way while staying connected, control electrical systems on the vehicle, and monitor their surroundings.

Additional Financial Information:

Total operating expenses in the first quarter were $392 million, a 19% increase over the prior year. Research and development increased by 23%, primarily due to engineering personnel costs across all segments and other expenses related to auto OEM programs. Selling, general and administrative expenses increased 15%, driven primarily by personnel related expenses and information technology costs. Advertising increased 16% driven primarily by higher spend in the fitness and outdoor segments.

The effective tax rate in the first quarter was 12.2% compared to 9.3% in the prior year quarter. The year-over-year increase in the effective tax rate is primarily due to a larger amount of reserve releases in the prior year.

In the first quarter of 2021, we generated approximately $331 million of free cash flow(1) and paid a quarterly dividend of approximately $117 million. We ended the quarter with cash and marketable securities of approximately $3.2 billion.

As announced in February 2021, the Board has recommended to the shareholders for approval at the annual meeting to be held on June 4, 2021 a cash dividend in the total amount of $2.68 per share (subject to adjustment if the Swiss Franc weakens more than 35% relative to the USD), payable in four equal installments on dates to be approved by the Board. The final $0.61 installment of the dividend approved at the 2020 annual meeting was paid on March 31, 2021 to shareholders of record as of March 15, 2021.

(1) See attached Non-GAAP Financial Information for discussion and reconciliation of non-GAAP financial measures, including free cash flow.

2021 Guidance:

We are maintaining our 2021 guidance for revenue of approximately $4.6 billion and pro forma EPS of $5.15 (see discussion on Forward-looking Financial Measures).

Webcast Information/Forward-Looking Statements:

When: Wednesday, April 28, 2021 at 10:30 a.m. Eastern

Where: https://www.garmin.com/en-US/investors/events/

How: Simply log on to the web at the address above or call to listen in at 855-757-3897

An archive of the live webcast will be available until April 27, 2022 on the Garmin website at www.garmin.com. To access the replay, click on the Investors link and click over to the Events Calendar page.

This release includes 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 similar meanings. Any statements regarding the Company's expected fiscal 2021 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, potential future acquisitions, currency movements, expenses, pricing, new products launches, market reach, statements relating to possible future dividends, statements related to the ongoing impact of the COVID-19 pandemic, 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 both the Annual Report on Form 10-K for the year ended December 26, 2020 and the Quarterly Report on Form 10-Q for the quarter ended March 27, 2021 filed by Garmin with the Securities and Exchange Commission (Commission file number 0-31983). A copy of Garmin's 2020 Form 10-K and the Q1 2021 Form 10-Q can be downloaded from https://www.garmin.com/en-US/investors/sec/. All information provided in this release and in the attachments is as of March 27, 2021. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to us on the date hereof. We undertake no duty to update this information unless required by law.

This release and the attachments contain non-GAAP financial measures. A reconciliation to the nearest GAAP measure and a discussion of the Company's use of these measures are included in the attachments.

Garmin, the Garmin logo, the Garmin delta, Approach and G3000 are trademarks of Garmin Ltd. or its subsidiaries and are registered in one or more countries, including the U.S. Enduro, Lily, Rally and Tread are trademarks of Garmin Ltd. or its subsidiaries. All other brands, product names, company names, trademarks and service marks are the properties of their respective owners. All rights reserved

Garmin Ltd. and Subsidiaries

Condensed Consolidated Statements of Income (Unaudited)

(In thousands, except per share information)



13-Weeks Ended

March 27, March 28,

2021 2020

Net sales $ 1,072,327 $ 856,108

Cost of goods sold 430,771 349,168

Gross profit 641,556 506,940



Advertising expense 31,061 26,880

Selling, general and administrative expense 157,622 137,186

Research and development expense 203,214 165,392

Total operating expense 391,897 329,458



Operating income 249,659 177,482

Other income (expense):

Interest income 7,652 12,026

Foreign currency losses (8,281 ) (15,423 )

Other income 1,484 3,550

Total other income (expense) 855 153



Income before income taxes 250,514 177,635

Income tax provision 30,485 16,455

Net income $ 220,029 $ 161,180



Net income per share:

Basic $ 1.15 $ 0.84

Diluted $ 1.14 $ 0.84



Weighted average common shares outstanding:

Basic 191,896 190,803

Diluted 192,810 191,684

Garmin Ltd. and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)

(In thousands, except per share information)

March 27,

2021

December 26, 2020

Assets

Current assets:

Cash and cash equivalents

$

1,599,475

$

1,458,442

Marketable securities

342,656

387,642

Accounts receivable, net

558,192

849,469

Inventories

837,934

762,084

Deferred costs

18,175

20,145

Prepaid expenses and other current assets

201,488

191,569

Total current assets

3,557,920

3,669,351

Property and equipment, net

861,382

855,539

Operating lease right-of-use assets

92,942

94,626

Marketable securities

1,212,798

1,131,175

Deferred income taxes

248,852

245,455

Noncurrent deferred costs

14,520

16,510

Intangible assets, net

822,229

828,566

Other assets

189,086

190,151

Total assets

$

6,999,729

$

7,031,373

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable

$

250,789

$

258,885

Salaries and benefits payable

148,558

181,937

Accrued warranty costs

39,288

42,643

Accrued sales program costs

64,557

109,891

Deferred revenue

83,891

86,865

Accrued advertising expense

23,805

31,950

Other accrued expenses

137,968

149,817

Income taxes payable

67,064

68,585

Dividend payable

117,205

233,644

Total current liabilities

933,125

1,164,217

Deferred income taxes

117,596

116,844

Noncurrent income taxes

95,505

92,810

Noncurrent deferred revenue

44,856

49,934

Noncurrent operating lease liabilities

74,741

75,958

Other liabilities

18,079

15,494

Stockholders' equity:

Shares, CHF 0.10 par value, 198,077 shares authorized and issued; 192,144

shares outstanding at March 27, 2021 and 191,571 shares outstanding

at December 26, 2020

17,979

17,979

Additional paid-in capital

1,892,934

1,880,354

Treasury stock

(309,522

)

(320,016

)

Retained earnings

3,974,184

3,754,372

Accumulated other comprehensive income

140,252

183,427

Total stockholders' equity

5,715,827

5,516,116

Total liabilities and stockholders' equity

$

6,999,729

$

7,031,373

Garmin Ltd. and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)

(In thousands, except per share information)



March 27, December 26, 2021 2020

Assets

Current assets:

Cash and cash equivalents $ 1,599,475 $ 1,458,442

Marketable securities 342,656 387,642

Accounts receivable, net 558,192 849,469

Inventories 837,934 762,084

Deferred costs 18,175 20,145

Prepaid expenses and other current assets 201,488 191,569

Total current assets 3,557,920 3,669,351



Property and equipment, net 861,382 855,539

Operating lease right-of-use assets 92,942 94,626

Marketable securities 1,212,798 1,131,175

Deferred income taxes 248,852 245,455

Noncurrent deferred costs 14,520 16,510

Intangible assets, net 822,229 828,566

Other assets 189,086 190,151

Total assets $ 6,999,729 $ 7,031,373



Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable $ 250,789 $ 258,885

Salaries and benefits payable 148,558 181,937

Accrued warranty costs 39,288 42,643

Accrued sales program costs 64,557 109,891

Deferred revenue 83,891 86,865

Accrued advertising expense 23,805 31,950

Other accrued expenses 137,968 149,817

Income taxes payable 67,064 68,585

Dividend payable 117,205 233,644

Total current liabilities 933,125 1,164,217



Deferred income taxes 117,596 116,844

Noncurrent income taxes 95,505 92,810

Noncurrent deferred revenue 44,856 49,934

Noncurrent operating lease liabilities 74,741 75,958

Other liabilities 18,079 15,494



Stockholders' equity:

Shares, CHF 0.10 par value, 198,077 sharesauthorized and issued; 192,144

shares outstanding at March 27, 2021 and 191,571 17,979 17,979 shares outstanding

at December 26, 2020

Additional paid-in capital 1,892,934 1,880,354

Treasury stock (309,522 ) (320,016 )

Retained earnings 3,974,184 3,754,372

Accumulated other comprehensive income 140,252 183,427

Total stockholders' equity 5,715,827 5,516,116

Total liabilities and stockholders' equity $ 6,999,729 $ 7,031,373

Garmin Ltd. and Subsidiaries

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In thousands)

13-Weeks Ended

March 27, 2021

March 28, 2020

Operating Activities:

Net income

$

220,029

$

161,180

Adjustments to reconcile net income to net cash provided by

operating activities:

Depreciation

23,988

18,198

Amortization

12,902

10,006

Loss (gain) on sale or disposal of property and equipment

133

(1,846

)

Unrealized foreign currency losses

7,277

16,856

Deferred income taxes

497

10,378

Stock compensation expense

22,698

15,559

Realized loss (gain) on marketable securities

22

(272

)

Changes in operating assets and liabilities, net of acquisitions:

Accounts receivable, net of allowance for doubtful accounts

281,524

197,157

Inventories

(87,450

)

(47,318

)

Other current and non-current assets

(13,710

)

(4,367

)

Accounts payable

(3,470

)

(39,851

)

Other current and non-current liabilities

(95,977

)

(98,219

)

Deferred revenue

(7,998

)

(10,078

)

Deferred costs

3,945

3,511

Income taxes payable

3,952

(5,020

)

Net cash provided by operating activities

368,362

225,874

Investing activities:

Purchases of property and equipment

(36,894

)

(41,361

)

Proceeds from sale of property and equipment

-

1,907

Purchase of intangible assets

(760

)

(953

)

Purchase of marketable securities

(404,599

)

(344,342

)

Redemption of marketable securities

354,039

311,935

Acquisitions, net of cash acquired

(15,893

)

(6,058

)

Net cash used in investing activities

(104,107

)

(78,872

)

Financing activities:

Dividends

(116,655

)

(108,571

)

Proceeds from issuance of treasury stock related to equity awards

17,657

-

Purchase of treasury stock related to equity awards

(17,281

)

(11,580

)

Net cash used in financing activities

(116,279

)

(120,151

)

Effect of exchange rate changes on cash and cash equivalents

(6,488

)

(5,602

)

Net increase in cash, cash equivalents, and restricted cash

141,488

21,249

Cash, cash equivalents, and restricted cash at beginning of period

1,458,748

1,027,638

Cash, cash equivalents, and restricted cash at end of period

$

1,600,236

$

1,048,887

The following table includes supplemental financial information for the consumer auto and auto OEM operating segments that management believes is useful.

Garmin Ltd. and Subsidiaries

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In thousands)



13-Weeks Ended

March 27, March 28, 2021 2020

Operating Activities:

Net income $ 220,029 $ 161,180

Adjustments to reconcile net income to net cashprovided by

operating activities:

Depreciation 23,988 18,198

Amortization 12,902 10,006

Loss (gain) on sale or disposal of property and 133 (1,846 )equipment

Unrealized foreign currency losses 7,277 16,856

Deferred income taxes 497 10,378

Stock compensation expense 22,698 15,559

Realized loss (gain) on marketable securities 22 (272 )

Changes in operating assets and liabilities, net of acquisitions:

Accounts receivable, net of allowance for 281,524 197,157 doubtful accounts

Inventories (87,450 ) (47,318 )

Other current and non-current assets (13,710 ) (4,367 )

Accounts payable (3,470 ) (39,851 )

Other current and non-current liabilities (95,977 ) (98,219 )

Deferred revenue (7,998 ) (10,078 )

Deferred costs 3,945 3,511

Income taxes payable 3,952 (5,020 )

Net cash provided by operating activities 368,362 225,874



Investing activities:

Purchases of property and equipment (36,894 ) (41,361 )

Proceeds from sale of property and equipment - 1,907

Purchase of intangible assets (760 ) (953 )

Purchase of marketable securities (404,599 ) (344,342 )

Redemption of marketable securities 354,039 311,935

Acquisitions, net of cash acquired (15,893 ) (6,058 )

Net cash used in investing activities (104,107 ) (78,872 )



Financing activities:

Dividends (116,655 ) (108,571 )

Proceeds from issuance of treasury stock related 17,657 - to equity awards

Purchase of treasury stock related to equity (17,281 ) (11,580 )awards

Net cash used in financing activities (116,279 ) (120,151 )



Effect of exchange rate changes on cash and cash (6,488 ) (5,602 )equivalents



Net increase in cash, cash equivalents, and 141,488 21,249 restricted cash

Cash, cash equivalents, and restricted cash at 1,458,748 1,027,638 beginning of period

Cash, cash equivalents, and restricted cash at $ 1,600,236 $ 1,048,887 end of period

The following table includes supplemental financial information for the consumer auto and auto OEM operating segments that management believes is useful.

Garmin Ltd. and Subsidiaries

Net Sales, Gross Profit and Operating Income by Segment

(In thousands)





Auto

Total Consumer Auto Fitness Outdoor Aviation Marine Total Auto Auto OEM

13-Weeks Ended March 27, 2021



Net sales $ 308,125 $ 256,455 $ 173,889 $ 209,372 $ 124,486 $ 62,395 $ 62,091 $ 1,072,327

Gross profit 173,545 171,676 126,182 121,379 48,774 31,964 16,810 641,556

Operating income 73,736 93,030 44,868 61,564 (23,539 ) 8,398 (31,937 ) 249,659 (loss)



13-Weeks Ended March 28, 2020



Net sales $ 223,601 $ 175,102 $ 188,599 $ 163,005 $ 105,801 $ 59,013 $ 46,788 $ 856,108

Gross profit 112,325 112,258 138,808 94,210 49,339 28,112 21,227 506,940

Operating income 31,011 47,166 59,321 40,159 (175 ) 3,213 (3,388 ) 177,482 (loss)

Garmin Ltd. and Subsidiaries

Net Sales by Geography

(In thousands)

13-Weeks Ended

March 27,

March 28,

YoY

2021

2020

Change

Net sales

$

1,072,327

$

856,108

25%

Americas

503,691

427,401

18%

EMEA

399,508

299,867

33%

APAC

169,128

128,840

31%

EMEA - Europe, Middle East and Africa; APAC - Asia Pacific and Australian Continent

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 and free cash flow. These non-GAAP measures are not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may be different from non-GAAP measures used by other companies, limiting the usefulness of the measures for comparison with other companies. Management believes providing investors with an operating view consistent with how it manages the Company provides enhanced transparency into the operating results of the Company, as described in more detail by category below.

The tables below provide reconciliations between the GAAP and non-GAAP measures.

Pro forma effective tax rate

The Company's income tax expense is periodically impacted by discrete tax items that are not reflective of income tax expense incurred as a result of current period earnings. Therefore, management believes disclosure of the effective tax rate and income tax provision before the effect of certain discrete tax items are important measures to permit investors' consistent comparison between periods. In the first quarter 2021 and 2020, there were no such discrete tax items identified. The net release of other uncertain tax position reserves, amounting to less than $0.1 million and approximately $4.1 million in the first quarter ended March 27, 2021 and March 28, 2020, respectively, have not been identified as pro forma adjustments as such items tend to be more recurring in nature.

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 comparison of the Company's performance between periods.

Garmin Ltd. and Subsidiaries

Net Sales by Geography

(In thousands)



13-Weeks Ended

March 27, March 28, YoY

2021 2020 Change

Net sales $ 1,072,327 $ 856,108 25%

Americas 503,691 427,401 18%

EMEA 399,508 299,867 33%

APAC 169,128 128,840 31%

EMEA - Europe, Middle East and Africa; APAC - Asia Pacific and Australian Continent

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 and free cash flow. These non-GAAP measures are not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may be different from non-GAAP measures used by other companies, limiting the usefulness of the measures for comparison with other companies. Management believes providing investors with an operating view consistent with how it manages the Company provides enhanced transparency into the operating results of the Company, as described in more detail by category below.

The tables below provide reconciliations between the GAAP and non-GAAP measures.

Pro forma effective tax rate

The Company's income tax expense is periodically impacted by discrete tax items that are not reflective of income tax expense incurred as a result of current period earnings. Therefore, management believes disclosure of the effective tax rate and income tax provision before the effect of certain discrete tax items are important measures to permit investors' consistent comparison between periods. In the first quarter 2021 and 2020, there were no such discrete tax items identified. The net release of other uncertain tax position reserves, amounting to less than $0.1 million and approximately $4.1 million in the first quarter ended March 27, 2021 and March 28, 2020, respectively, have not been identified as pro forma adjustments as such items tend to be more recurring in nature.

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 comparison of the Company's performance between periods.

(In thousands, except per share information) 13-Weeks Ended

March 27, March 28,

2021 2020

GAAP net income $ 220,029 $ 161,180

Foreign currency losses^(1) 8,281 15,423

Tax effect of foreign currency losses^(2) (1,008 ) (1,429 )

Pro forma net income $ 227,302 $ 175,174



GAAP net income per share:

Basic $ 1.15 $ 0.84

Diluted $ 1.14 $ 0.84



Pro forma net income per share:

Basic $ 1.18 $ 0.92

Diluted $ 1.18 $ 0.91



Weighted average common shares outstanding:

Basic 191,896 190,803

Diluted 192,810 191,684

(1) Foreign currency gains and losses for the Company are driven by movements of a number of currencies 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 a given legal entity. However, there is minimal cash impact from such foreign currency gains and losses.

(2) The tax effect of foreign currency gains and losses was calculated using the effective tax rate of 12.2% and 9.3% for the first quarter ended March 27, 2021 and March 28, 2020, respectively.

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 equipment. Management believes that excluding purchases of property and equipment provides a better understanding of the underlying trends in the Company's operations and allows more accurate comparisons of the Company's results between periods. This metric may also be useful to investors, but should not be considered in isolation as it is not a measure of cash flow available for discretionary expenditures. The most comparable GAAP measure is net cash provided by operating activities.

(In thousands) 13-Weeks Ended

March 27, March 28,

2021 2020

Net cash provided by operating activities $ 368,362 $ 225,874

Less: purchases of property and equipment (36,894 ) (41,361 )

Free Cash Flow $ 331,468 $ 184,513

Forward-looking Financial Measures

The forward-looking financial measures in our 2021 guidance provided above 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 calculating the non-GAAP measures described above.

The estimated impact of foreign currency gains and losses cannot be reasonably estimated on a forward-looking basis due to the high variability and low visibility with respect to non-operating foreign currency exchange gains and losses and the related tax effects of such gains and losses. The impact on diluted net income per share of foreign currency gains and losses, net of tax effects, was $0.04 per share for the first quarter ended March 27, 2021.

At this time, management is unable to determine whether or not significant discrete tax items will occur in fiscal 2021 or anticipate the impact of any other events that may be considered in the calculation of non-GAAP financial measures.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210428005224/en/

CONTACT: Investor Relations Contact: Teri Seck 913/397-8200 investor.relations@garmin.com

CONTACT: Media Relations Contact: Carly Hysell 913/397-8200 media.relations@garmin.com