Earnings per share increased 64% to $2.35 from $1.43 in 2005; excluding foreign exchange, EPS increased 72% to $2.35 from $1.37 in 2005.
“We are obviously pleased with our financial results for the fourth quarter and fiscal year 2006,” said Kevin Rauckman, chief financial officer of Garmin Ltd. “Our revenue and earnings per share during 2006 grew 73% and 64% respectively, exceeding our expectations. Garmin has now completed six years as a public company and has consistently generated top line and bottom line growth, with a 6-year compounded annual growth rate of revenue and earnings per share of 30% and 28%, respectively.
Our gross and operating margins held strong, exceeding our expectations, coming in at 50% and 31% respectively. We also generated $269 million of free cash flow in 2006, resulting in unrestricted cash and marketable securities balance of $818 million at the end of the fiscal year. Our return on invested capital (ROIC) was 69% during fiscal 2006.”
Garmin anticipates overall revenue to exceed $2.5 billion in 2007, automotive/mobile revenues to grow 50 percent and sport/fitness revenue to grow 20%.