Garmin Ltd. (GRMN) CEO Cliff Pemble on Q2 2022 Results - Earnings Call Transcript

Garmin Ltd. (NYSE:GRMN) Q2 2022 Earnings Conference Call July 27, 2022 10:30 AM ET

Company Participants

Teri Seck - Director, Investor Relations

Cliff Pemble - President & Chief Executive Officer

Doug Boessen - Chief Financial Officer & Treasurer

Conference Call Participants

Paul Chung - JPMorgan

Ben Bollin - Cleveland Research

Nikolay Todorov - Longbow Research

Ivan Feinseth - Tigress Financial

Erik Woodring - Morgan Stanley

Operator

Thank you for standing by and welcome to the Garmin Ltd. Second Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will b a question-and-answer session. [Operator Instructions] As a reminder, today's program may be recorded.

And now, I'd like to introduce your host for today's program Teri Seck, Director of Investor Relations. Please go ahead.

Teri Seck

Good morning. We would like to welcome you to Garmin Ltd.'s second quarter 2022 earnings call. Please note that the earnings press release and related slides are available at Garmin's Investor Relations site on the Internet at www.garmin.com/stock. An archive of the webcast and related transcript will also be available on our website.

This earnings call includes projections and other forward-looking statements regarding Garmin Ltd. and its business. Any statements regarding our financial -- our future financial position, revenues, earnings, gross margins, operating margins, future dividends, or share repurchases, market share product introductions, future demand for our products and plans and objectives are forward-looking statements.

The forward-looking events and circumstances discussed in this earnings call may not occur and actual results could differ materially as a result of risk factors affecting Garmin. Information concerning these risk factors is contained in our Form 10-K filed with the Securities and Exchange Commission.

In particular there is significant uncertainty about the duration and impact of the COVID-19 pandemic. This means that results could change at any time and any statement about the impact of COVID-19 on the company's results could change at any time. These results and outlook is the best estimate based on the information available as of today's date.

Presenting on behalf of Garmin Ltd. this morning are Cliff Pemble, President and Chief Executive Officer; and Doug Boessen, Chief Financial Officer and Treasurer.

At this time, I would like to turn the call over to Cliff Pemble.

Cliff Pemble

Thank you, Teri and good morning everyone. As reported earlier today consolidated revenue came in at $1.24 billion, down 6% from the strong pandemic-driven comparable of 2021. We generated $293 million of operating profit for the quarter, which was down 21% from the prior year and operating margin was 23.6%.