Garmin Glitters: Fool by Numbers

News from the Cayman Islands -- or Olathe, Kan., or Taiwan, depending on your point of view: On Aug. 1, navigation gadget guru Garmin (Nasdaq: GRMN  ) released second-quarter earnings for the period ended June 30, 2007.

• The stellar gains were powered by exploding demand for in-dash and on-dash navigation systems, especially in the North American market.
• 99% higher unit sales over last year led to 72% more revenue dollars. The end user is getting a better deal now, though cheaper parts and more efficient manufacturing lets Garmin stick to about the same gross profit margin as before.
• Check out the capital expenditures line -- Garmin is reinvesting this massive windfall into the business with expanded footprints in Germany, Taiwan, and Kansas.

(Figures in millions, except per-share data)

Income Statement Highlights

	Q2 2007	Q2 2006	Change
Sales	$742.5	$432.5	71.7%
Net Profit	$214.4	$123.3	73.9%
EPS	$0.98	$0.56	75.0%
Diluted Shares	219.1	219.3	(0.1%)

Get back to basics with the income statement.

Margin Checkup

	Q2 2007	Q2 2006	Change*
	50.2%	50.0%	0.2
	17.9%	31.1%	(13.2)
	28.9%	28.5%	0.4

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets	Q2 2007	Q2 2006	Change
Cash + ST Invest.	$815.1	$420.7	93.7%
Accounts Rec.	$506.5	$295.8	71.2%
Inventory	$290.7	$227.9	27.5%

Liabilities	Q2 2007	Q2 2006	Change
Accounts Payable	$167.3	$89.6	86.7%
Long-Term Debt	$0.0	$0.0	N/A

The balance sheet reflects the company's health.

Cash Flow Highlights

	Q2 2007	Q2 2006	Change
Cash From Ops.	$253.4	$76.2	232.8%
Capital Expenditures	$99.6	$11.7	748.3%
Free Cash Flow	$153.8	$64.4	138.8%
Owner Earnings	$130.7	$116.9	11.8%

Free cash flow is a Fool's best friend.

Related Foolishness:

• Foolish Forecast: Take a Gander at Garmin
• Foolish Forecast: Navteq's Guiding Light
• 5-Star Technology Stocks: Garmin

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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

At the time of publication, Anders Bylund had no position in any company mentioned. He likes to have fun with the Fool by Numbers format sometimes. Fool rules are here.