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Garmin Reports Strong Revenue and Operating Income Growth

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SCHAFFHAUSEN, Switzerland—Garmin Ltd. (Nasdaq: GRMN) today announced results for the fourth quarter and fiscal year ended December 28, 2019.

Revenue from the marine segment grew 22% in the fourth quarter driven by our innovative product lineup of chartplotters, advanced sonars, and the revolutionary new Force trolling motor. Gross margin and operating margin improved to 60% and 19%, respectively, resulting in 154% operating income growth. During the quarter, we expanded our flagship chartplotter line-up with the new GPSMAP Plus series and the ECHOMAP® UHD series.

Highlights for fourth quarter 2019 include:

  • Total revenue of $1.102 billion, an 18% increase, with fitness, aviation, marine and outdoor collectively increasing 24% over the prior year quarter
  • Gross margin of 58.0% compared to 58.9% in the prior year quarter
  • Operating margin improved to 25.1% compared to 23.9% in the prior year quarter
  • Operating income of $277 million, increasing 24% over the prior year quarter
  • GAAP EPS was $1.89 and pro forma EPS(1) was $1.29, representing 26% growth over the prior year quarter
  • The Force™ trolling motor and GPSMAP® 86i were awarded the highly competitive DAME design award at METSTRADE
  • Selected by Ford to provide electric vehicle navigation software on the next-generation SYNC platform for the Mustang Mach-E

Highlights for fiscal year 2019 include:

  • Record consolidated revenue of $3.758 billion, a 12% increase, with fitness, aviation, marine and outdoor collectively increasing 18% over the prior year
  • Gross margin improved to 59.5% compared to 59.1% in the prior year
  • Operating margin improved to 25.2% compared to 23.3% in the prior year
  • Record operating income of $946 million, increasing 21% over the prior year
  • GAAP EPS was $4.99 and pro forma EPS(1) was $4.45, representing 21% growth over the prior year
  • Selected by BMW AG as their lead design and production partner of infotainment modules for the BMW Group, validating Garmin as a tier 1 supplier to the world’s most respected brands
  • Unveiled the Garmin Autoland system for general aviation, designed to safely land the aircraft in the event of a pilot incapacitation
  • Completed several strategic acquisitions to strengthen our product portfolio, including Tacx®, a leading provider of indoor bike trainers
  • Launched the fēnix® 6X Pro Solar, our first wearable featuring solar harvesting technology
  • Named one of America’s Top 5 Best Employers by Forbes
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