Garmin 2005 Annual Report Download - page 99

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69
11. Share Repurchase Program
On April 21, 2004, the Board of Directors authorized the Company to repurchase up to 3,000,000 shares of
the Company’s common stock through April 30, 2006. As of December 31, 2005, the Company had repurchased
738,000 shares using cash of $29,835.
12. Shareholder Rights Plan
On October 24, 2001, Garmin’s Board of Directors adopted a shareholder rights plan (the “Rights Plan”).
Pursuant to the Rights Plan, the Board declared a dividend of one preferred share purchase right on each outstanding
common share of Garmin to shareholders of record as of November 1, 2001. The rights trade together with Garmin’s
common shares. The rights generally will become exercisable if a person or group acquires or announces an
intention to acquire 15% or more of Garmin’s outstanding common shares. Each right (other than those held by the
new 15% shareholder) will then be exercisable to purchase preferred shares of Garmin (or in certain instances other
securities of Garmin) having at that time a market value equal to two times the then current exercise price. Garmin’s
Board of Directors may redeem the rights at $0.002 per right at any time before the rights become exercisable. The
rights expire on October 31, 2011.
13. Selected Quarterly Information (Unaudited)
Fiscal Year Ended December 31, 2005
Quarter Ending
March 26 June 25 September 24 December 31
Net sales $192,651 $264,497 $251,329 $319,296
Gross profit 103,198 139,981 129,452 162,439
Net income 47,400 74,194 102,490 87,135
Basic net income per share 0.44 0.68 0.95 0.81
Fiscal Year Ended December 25, 2004
Quarter Ending
March 27 June 26 September 25 December 25
Net sales $158,329 $189,655 $193,616 $220,949
Gross profit 80,451 98,320 111,671 120,797
Net income 34,656 56,315 67,128 47,601
Basic net income per share 0.32 0.52 0.62 0.44
The above quarterly financial data is unaudited, but in the opinion of management, all adjustments
necessary for a fair presentation of the selected data for these interim periods presented have been included. These
results are not necessarily indicative of future quarterly results.
14. Garmin AT Acquisition
On August 22, 2003, GII acquired all of the outstanding capital stock of UPS Aviation Technologies, Inc.
for $38 million in cash. UPS Aviation Technologies, headquartered in Salem, Oregon, designs and manufactures
multiple lines of communications, navigation and surveillance products for general aviation and air transport
customers.