News from the Cayman Islands -- or Olathe, Kan., or Taiwan, depending on your point of view: On Aug. 1, navigation gadget guru Garmin
- 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* |
|
---|---|---|---|
Gross Margin |
50.2% |
50.0% |
0.2 |
Operating Margin |
17.9% |
31.1% |
(13.2) |
Net Margin |
28.9% |
28.5% |
0.4 |
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% |
$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
Garmin is a Motley Fool Stock Advisor recommendation. Discover all of David and Tom Gardner's stellar stock selections with a free 30-day trial subscription.
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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.