台灣國際航電 (GRMN) 2021 Q3 法說會逐字稿

Good day, and thank you for standing by.

美好的一天，感謝您的支持。

Welcome the Garmin Ltd.

歡迎 Garmin Ltd.

Third Quarter 2021 Earnings Conference Call.

2021 年第三季度收益電話會議。

(Operator Instructions) I would now like to hand the conference over to your first speaker today, Ms. Teri Seck.

（操作員說明）我現在想將會議交給您今天的第一位發言人 Teri Seck 女士。

Ma'am, please go ahead.

女士，請繼續。

Good morning.

早上好。

We would like to welcome you to Garmin Ltd.'s Third Quarter 2021 Earnings Call.

歡迎您參加 Garmin Ltd. 的 2021 年第三季度財報電話會議。

Please note that the earnings, press release and related slides are available at Garmin's Investor Relations site at www.garmin.com/stock.

請注意，收益、新聞稿和相關幻燈片可在 Garmin 的投資者關係網站 www.garmin.com/stock 上找到。

An archive of the webcast and related transcript will also be available on our website.

我們的網站也將提供網絡廣播和相關成績單的存檔。

This earnings call includes projections and other forward-looking statements regarding Garmin Ltd.

本次財報電話會議包括有關 Garmin Ltd. 的預測和其他前瞻性陳述。

and its business.

及其業務。

Any statements regarding our future financial position, revenues, earnings, gross margins, operating margins, future dividends, market shares, product introductions, future demand for our products and plans and objectives are forward-looking statements.

有關我們未來財務狀況、收入、收益、毛利率、營業利潤率、未來股息、市場份額、產品介紹、對我們產品的未來需求以及計劃和目標的任何陳述都是前瞻性陳述。

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.

本財報電話會議中討論的前瞻性事件和情況可能不會發生，實際結果可能因影響 Garmin 的風險因素而存在重大差異。

Information concerning these risk factors is contained in our Form 10-K and Form 10-Q filed with the Securities and Exchange Commission.

有關這些風險因素的信息包含在我們向證券交易委員會提交的 10-K 表和 10-Q 表中。

In particular, there is significant uncertainty about the duration and impact of the COVID-19 pandemic.

特別是，COVID-19 大流行的持續時間和影響存在很大的不確定性。

This means that results could change at any time, and any statement about the impact of COVID-19 on the company's business results and outlook is the best estimate based on the information available as of today's date.

這意味著結果可能隨時發生變化，任何關於 COVID-19 對公司業務結果和前景影響的陳述都是基於截至今天可用信息的最佳估計。

Presenting on behalf of Garmin Ltd.

代表 Garmin Ltd.

this morning are Cliff Pemble, President and Chief Executive Officer; and Doug Boessen, Chief Financial Officer and Treasurer.

今天上午是總裁兼首席執行官 Cliff Pemble； Doug Boessen，首席財務官兼財務主管。

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

此時，我想將電話轉給 Cliff Pemble。

Thank you, Teri, and good morning, everyone.

謝謝你，泰瑞，大家早上好。

As announced earlier today, Garmin reported record revenue of $1.2 billion for the third quarter, increasing 7% over the pandemic fuel levels we achieved in the prior year.

正如今天早些時候宣布的那樣，Garmin 報告第三季度創紀錄的收入為 12 億美元，比我們去年實現的大流行燃料水平增加了 7%。

Operating income declined year-over-year to $283 million due to a combination of higher freight costs affecting gross margin and increased expenses as we invest in R&D, information technology and marketing initiatives.

營業收入同比下降至 2.83 億美元，原因是運費成本上升影響毛利率，以及我們投資於研發、信息技術和營銷計劃時支出增加。

Operating margin was very strong at 23.7%.

營業利潤率非常強勁，達到 23.7%。

There are 2 things to consider when looking at our performance in the back half of the year.

回顧我們下半年的表現時，有兩件事需要考慮。

First, financial comparisons to the prior year are more challenging due to the pandemic-driven demand and retail disruptions of 2020.

首先，由於大流行驅動的需求和 2020 年的零售中斷，與上一年的財務比較更具挑戰性。

Also, we are facing one of the most challenging supply chain environments in history.

此外，我們正面臨歷史上最具挑戰性的供應鏈環境之一。

Our vertically integrated business model and commitment to safety stock was a key factor driving revenue growth for the quarter, but supplies are tight, and we expect freight costs to remain elevated as we rush to fill retail shelves in time for the important holiday selling season.

我們垂直整合的商業模式和對安全庫存的承諾是推動本季度收入增長的關鍵因素，但供應緊張，我們預計運費成本將保持高位，因為我們急於在重要的假日銷售季節及時填滿零售貨架。

I'm pleased with what we've accomplished in this tough environment, and I'm very proud of our team who've worked tirelessly to maintain continuity to supply from our factories to customers.

我對我們在這個艱難的環境中取得的成就感到高興，我為我們的團隊感到非常自豪，他們不知疲倦地工作以保持從工廠到客戶的供應連續性。

Last time, I mentioned that we invested in a fourth production facility in Taiwan.

上次，我提到我們在台灣投資了第四個生產設施。

I'm pleased to report that this facility is operational and will help us fill more orders during the important holiday selling season.

我很高興地報告該設施已投入使用，將幫助我們在重要的假日銷售季節完成更多訂單。

Given our strong performance in the first 3 quarters of the year, we're updating our full year guidance.

鑑於我們在今年前三個季度的強勁表現，我們正在更新我們的全年指導。

We now anticipate revenue of approximately $4.95 billion, up 18% over the prior year, with double-digit growth expected in each of our 5 business segments.

我們現在預計收入約為 49.5 億美元，比上一年增長 18%，我們的 5 個業務部門均有望實現兩位數的增長。

In a moment, Doug will provide more details on our financial results and updated guidance, but first, I'll provide a few highlights for each business segment.

稍後，Doug 將提供有關我們財務業績和更新指導的更多詳細信息，但首先，我將為每個業務部門提供一些亮點。

Starting with fitness.

從健身開始。

Revenue increased 4% to $342 million, with growth driven primarily by cycling products and advanced wearables.

收入增長 4% 至 3.42 億美元，增長主要來自騎行產品和先進的可穿戴設備。

Our Connect IQ development platform is a strong differentiator for us, and we are deploying it across a broader range of Garmin devices.

我們的 Connect IQ 開發平台對我們來說是一個強大的差異化因素，我們正在將它部署到更廣泛的 Garmin 設備上。

We recently held our fifth Annual Developer Conference, where we announced a partnership with Dexcom to deliver real-time glucose information via the Connect IQ app on selected smartwatches and cycling computers, even during activities.

我們最近舉行了第五屆年度開發者大會，在會上我們宣布與 Dexcom 建立合作夥伴關係，通過 Connect IQ 應用程序在選定的智能手錶和自行車電腦上提供實時葡萄糖信息，即使在活動期間也是如此。

Fitness segment revenue has grown 26% year-to-date, and we are maintaining our revenue growth estimate of 17% for the year.

今年迄今為止，健身部門的收入增長了 26%，我們維持今年 17% 的收入增長預期。

Moving to outdoor.

搬到戶外。

Revenue decreased 3% to $324 million.

收入下降 3% 至 3.24 億美元。

The decrease in revenue is due to the strong sell-in activity associated with the launch of our solar adventure watches in the prior year quarter and limited supplies of traditional handheld and dog products in the current quarter.

收入下降是由於與我們在上一季度推出的太陽能探險手錶相關的強勁銷售活動以及本季度傳統手持和狗產品的供應有限。

During the quarter, we launched the APPROACH R10, our first portable golf monitor.

在本季度，我們推出了第一款便攜式高爾夫顯示器 APPROACH R10。

The R10 can be used on course or at home to help golfers improve their game with more than a dozen key metrics shown in real time.

R10 可用於球場或家中，通過實時顯示的十幾個關鍵指標幫助高爾夫球手提高球技。

Customers are very enthusiastic about the R10, and it's on its way to becoming another halo product for Garmin.

客戶對 R10 非常熱情，它正在成為 Garmin 的另一款光環產品。

Outdoor segment revenue has grown 26% year-to-date, and we are maintaining our growth estimate of 17% for the year.

迄今為止，戶外部門的收入增長了 26%，我們維持今年 17% 的增長預期。

Looking next at Aviation.

接下來看看航空。

Revenue increased 19% to $180 million, with growth in both OEM and aftermarket product categories.

收入增長 19% 至 1.8 億美元，OEM 和售後市場產品類別均有所增長。

During the quarter, we were ranked #1 in avionics product support by Aviation International News for the 18th consecutive year.

在本季度，我們連續第 18 年在航空國際新聞的航空電子產品支持方面排名第一。

Being consistently recognized for unrivaled support year after year clearly shows our strategic focus on taking care of customers and standing behind our products.

年復一年地不斷獲得無與倫比的支持，這清楚地表明我們的戰略重點是照顧客戶並支持我們的產品。

We launched Smart Glide, a game-changing safety feature inspired by Autoland technology that will help pilots manage loss of engine power by automatically flying the optimal glide ratio and navigating to the best available airport.

我們推出了 Smart Glide，這是一項受 Autoland 技術啟發的改變遊戲規則的安全功能，它將幫助飛行員通過自動飛行最佳滑翔比並導航到最佳可用機場來管理髮動機動力損失。

Also in the quarter, we announced the certification of the GFC 600H flight control system on the Bell 505 helicopter.

同樣在本季度，我們宣布了貝爾 505 直升機上的 GFC 600H 飛行控制系統的認證。

This advanced autopilot includes state-of-the-art safety features, such as electronic stability control and a hover-assist mode.

這種先進的自動駕駛儀包括最先進的安全功能，例如電子穩定控制和懸停輔助模式。

We are pleased with how the Aviation segment has recovered so far this year, and now expect full year revenue guidance to increase approximately 12%.

我們對今年迄今為止航空部門的複蘇情況感到高興，現在預計全年收入指引將增長約 12%。

Turning next to the Marine segment.

轉到 Marine 部分旁邊。

Revenue increased 25% to $208 million, with growth across multiple categories, led by chartplotters.

收入增長 25% 至 2.08 億美元，在海圖儀的帶動下，多個類別都有增長。

We continue to be recognized for innovation and achievements in the marine industry.

我們繼續因在海洋行業的創新和成就而獲得認可。

For the seventh consecutive year, the National Marine Electronics Association named Garmin Manufacturer of the Year, and we also received 5 Product of Excellence awards.

連續第七年被美國船用電子協會評為 Garmin 年度製造商，我們還獲得了 5 項卓越產品獎。

During the quarter, we introduced Surround View, the industry's first intelligent camera system that provides a 360-degree bird's eye view around the vessel.

在本季度，我們推出了環視系統，這是業界首個智能攝像系統，可提供船舶周圍 360 度鳥瞰圖。

We also announced our partnership with Malibu Boats.

我們還宣布了與 Malibu Boats 的合作夥伴關係。

Our 7-inch touchscreen displays will be standard equipment across the Malibu axis boat line, beginning with the 2022 model year.

從 2022 年款開始，我們的 7 英寸觸摸屏顯示器將成為 Malibu 軸船系列的標准設備。

Given the strong year-to-date performance on the Marine segment, we are raising our revenue growth estimate to 30% over the year.

鑑於海事部門年初至今的強勁表現，我們將全年收入增長預期提高至 30%。

And looking finally at auto, revenue increased 7% to $138 million, with growth primarily driven by OEM programs.

最後看汽車，收入增長 7% 至 1.38 億美元，增長主要由 OEM 計劃推動。

During the quarter, we began production shipments of the BMW computing module from our Olathe, Kansas manufacturing facility, and we delivered prototypes of the next-generation BMW system from our new manufacturing facility located in Poland.

在本季度，我們從堪薩斯州奧拉西的製造工廠開始生產 BMW 計算模塊，並從位於波蘭的新製造工廠交付了下一代 BMW 系統的原型。

We also recently announced a refreshed lineup of Drive Navigators for the consumer auto segment.

我們最近還宣布了面向消費類汽車領域的全新 Drive Navigator 陣容。

These devices offer larger, higher-resolution displays as well as enhanced connected features.

這些設備提供更大、更高分辨率的顯示器以及增強的連接功能。

Given the strong year-to-date performance of the Auto segment, we are raising our revenue growth estimate to 17% for the year.

鑑於汽車部門年初至今的強勁表現，我們將今年的收入增長預期提高至 17%。

That concludes my remarks.

我的發言到此結束。

Next, Doug will walk you through additional details on our financial results and updated guidance.

接下來，Doug 將向您介紹有關我們財務業績和更新指南的更多詳細信息。

Doug?

道格？

Thanks, Cliff.

謝謝，克里夫。

Good morning, everyone.

大家，早安。

I'll begin by reviewing our third quarter financial results, provide comments on the balance sheet, cash flow statement, taxes, our updated guidance.

我將首先回顧我們的第三季度財務業績，就資產負債表、現金流量表、稅收以及我們更新的指導意見發表評論。

We posted revenue of $1,192,000,000 for the third quarter, representing a 7% increase year-over-year.

我們公佈第三季度的收入為 1,192,000,000 美元，同比增長 7%。

Gross margin was 58.4%, 180 basis point decrease compared to prior year quarter.

毛利率為 58.4%，與去年同期相比下降 180 個基點。

The decrease was primarily due to higher freight costs.

減少的主要原因是運費增加。

Operating expense as a percentage of sales was 34.7%, 310 basis point increase to the prior quarter.

營業費用佔銷售額的百分比為 34.7%，比上一季度增加 310 個基點。

Operating income was $283 million, 11% decrease.

營業收入為 2.83 億美元，下降 11%。

Operating margin was 23.7%, a [290] basis point decrease.

營業利潤率為 23.7%，下降 [290] 個基點。

Our GAAP EPS was $1.34.

我們的 GAAP 每股收益為 1.34 美元。

Pro forma EPS was $1.41.

備考每股收益為 1.41 美元。

Next, with our third quarter revenue by segment.

接下來，按部門劃分我們的第三季度收入。

We have a highly diverse business model, provides a rich set of opportunities, reduce our reliance on single markets and product lines.

我們擁有高度多樣化的商業模式，提供豐富的機會，減少我們對單一市場和產品線的依賴。

In the third quarter, we achieved growth in 4 of our 5 segments, double-digit growth in both Marine and Aviation.

第三季度，我們在 5 個部門中的 4 個部門實現了增長，海事和航空部門均實現了兩位數的增長。

Fitness is our largest segment, contributing 29% of the sales in the third quarter, followed by Outdoor at 27%.

健身是我們最大的細分市場，佔第三季度銷售額的 29%，其次是戶外，佔 27%。

Moving to our revenue by geography.

按地理位置轉移到我們的收入。

The Americas and EMEA regions grew 10% and 9%, respectively.

美洲和 EMEA 地區分別增長 10% 和 9%。

The APAC region decreased 2%.

亞太地區下降 2%。

The Americas region contributed nearly 1/2 of our revenue, the remaining coming from the EMEA and APAC regions.

美洲地區貢獻了我們近 1/2 的收入，其餘來自 EMEA 和 APAC 地區。

Looking next, operating expenses.

接下來是運營費用。

Third quarter operating expenses increased by $62 million or 18%.

第三季度運營費用增加了 6200 萬美元或 18%。

Research and development increased $39 million year-over-year, primarily due to engineering personnel costs.

研發同比增長 3900 萬美元，主要是由於工程人員成本。

SG&A increased $21 million compared to prior year quarter, primarily due to increases in personnel-related expenses and information technology costs.

SG&A 與去年同期相比增加了 2100 萬美元，主要是由於人事相關費用和信息技術成本的增加。

Our advertising expense increased approximately $3 million due to higher media spend.

由於媒體支出增加，我們的廣告費用增加了約 300 萬美元。

A few highlights on the balance sheet, cash flow statement and taxes.

資產負債表、現金流量表和稅收方面的一些亮點。

We ended the quarter with cash and marketable securities worth $3.2 billion.

我們在本季度結束時擁有價值 32 億美元的現金和有價證券。

Accounts receivable decreased sequentially and year-over-year to $639 million.

應收賬款環比和同比下降至 6.39 億美元。

Inventory balance increased, both a sequential year-over-year basis, to $1.1 billion, primarily due to raw material requirements in preparation for the seasonally strong fourth quarter.

庫存餘額環比增長至 11 億美元，主要是由於原材料需求為季節性強勁的第四季度做準備。

During the third quarter 2021, we generated free cash flow of $204 million, a $32 million decrease compared to prior quarter.

在 2021 年第三季度，我們產生了 2.04 億美元的自由現金流，與上一季度相比減少了 3200 萬美元。

Capital expenditures for the third quarter were $41 million.

第三季度的資本支出為 4100 萬美元。

We expect full year 2021 free cash flow to be approximately $750 million, capital expenditures of approximately $325 million And a third quarter of 2021 for an effective tax rate of 5.9% compared to 6.9% in the prior year.

我們預計 2021 年全年自由現金流約為 7.5 億美元，資本支出約為 3.25 億美元，到 2021 年第三季度，有效稅率為 5.9%，而去年為 6.9%。

The decrease was primarily due to impact to return provision adjustments, associated with filing the U.S. tax return.

減少的主要原因是與提交美國納稅申報表相關的申報準備金調整的影響。

Turning next to our full year guidance.

接下來是我們的全年指導。

We estimate revenue of approximately $4.95 billion, increase of 18% for the prior year, double-digit growth in each of our segments.

我們估計收入約為 49.5 億美元，比上年增長 18%，我們每個部門的增長都達到兩位數。

We expect gross margin to be approximately 58.2%, which is lower than our previous guidance, 58.5%, due to higher freight costs.

由於運費較高，我們預計毛利率約為 58.2%，低於我們之前的指引 58.5%。

We expect an operating margin of approximately 24%.

我們預計營業利潤率約為 24%。

Also, we expect the full year 2021 pro forma effective tax rate to be approximately 11.5%, which results in pro forma earnings per share of approximately $5.60.

此外，我們預計 2021 年全年備考有效稅率約為 11.5%，這導致備考每股收益約為 5.60 美元。

This concludes our formal remarks.

我們的正式發言到此結束。

Rachel, can you please open the line for Q&A?

瑞秋，你能打開問答熱線嗎？

(Operator Instructions) Our first question comes from the line of Paul Chung from JPMorgan.

（操作員說明）我們的第一個問題來自摩根大通的 Paul Chung。

So just on Aviation.

所以就在航空方面。

4Q implied guide kind of suggests a sequential downtick.

4Q 隱含指引暗示了連續下跌。

You typically see an uptick in 4Q.

您通常會在第 4 季度看到上漲。

So what's going on there?

那麼那裡發生了什麼？

Is that an impact from supply chain headwinds?

這是供應鏈逆風的影響嗎？

And then on op margins, it stabilized in 3Q, but you still remain well below that low-30s range you've seen historically.

然後在運營利潤率方面，它在第三季度趨於穩定，但仍遠低於歷史上所見的 30 年代低點範圍。

So is this the right level to think about moving forward?

那麼這是考慮前進的正確水平嗎？

Or is there also some transitory hits in the near term?

還是在短期內也有一些短暫的打擊？

Yes.

是的。

Thanks, Paul.

謝謝，保羅。

I think, certainly, there's some noise associated with aviation in the prior year versus this year as well.

我認為，當然，與去年相比，今年也有一些與航空相關的噪音。

So part of it is timing of shipments that occurred from year to year, but also lead times on equipment and aviation is getting longer.

因此，部分原因是每年發生的發貨時間，但設備和航空的交貨時間也越來越長。

So we're accounting for that and wanting to make sure that we're taking into account all of those factors that might affect Q4 revenue.

因此，我們正在考慮這一點，並希望確保我們考慮到所有可能影響第四季度收入的因素。

And then as we think about next year in the context of pretty strong business jet demand, do you see this business growing along with the industry or at a faster pace given kind of the new certifications, auto land and Smart Glide that you've introduced?

然後當我們考慮明年在相當強勁的公務機需求的背景下，您是否認為這項業務會隨著行業的發展或以更快的速度增長，因為您已經引入了新的認證、自動著陸和 Smart Glide ?

Yes.

是的。

I think we have the most innovative product line, for sure.

我認為我們肯定擁有最具創新性的產品線。

So across aftermarket and OEM, we're well positioned with our products and on the platforms that are the most popular.

因此，在售後市場和 OEM 方面，我們的產品和最受歡迎的平台都處於有利地位。

The most significant interest in business jet demand right now is in the sweet spot of where our products are installed.

目前對公務機需求最大的興趣在於我們產品安裝的最佳位置。

So I would expect that we would continue to perform well as the industry performs.

因此，我預計我們將繼續表現良好，就像行業表現一樣。

Okay, great.

好，太棒了。

And then lastly, inventory balances have increased, as you signaled.

最後，正如您所暗示的，庫存餘額增加了。

How comfortable are you heading into the holiday season with supply components, logistics?

在供應組件和物流方面，您在進入假日季節時感覺如何？

And then separately, as we head into fiscal year '22, how should we think about working cap, particularly in inventory, you're going to have a bigger harvest, and then the pace of CapEx in '22 would be helpful as well.

然後另外，當我們進入 22 財年時，我們應該如何考慮營運上限，特別是在庫存方面，你將獲得更大的收穫，然後 22 年資本支出的步伐也會有所幫助。

Yes, I'll just make a comment on the general inventory, and then ask Doug to finish the other parts of your question.

是的，我只會對總體清單發表評論，然後請 Doug 完成您問題的其他部分。

But in this environment, I think inventory is definitely a positive thing.

但在這種環境下，我認為庫存絕對是一件好事。

And we've been able to secure the kind of inventory that we feel we need to make for a successful year.

而且我們已經能夠確保我們認為我們需要為成功的一年製作的那種庫存。

I think nobody would ever say they have too much in this environment.

我想沒有人會說他們在這種環境下擁有太多。

And with shipping delays that are taking place that we hear of every day in the news, definitely a higher level of inventory is required.

而且隨著我們每天在新聞中聽到的發貨延遲，肯定需要更高水平的庫存。

So Doug?

所以道格？

Yes.

是的。

First, regarding free cash flow and inventory levels.

首先，關於自由現金流和庫存水平。

As Cliff mentioned, we'll be continuing to keep our inventory levels at the appropriate level to meet our demand.

正如 Cliff 所說，我們將繼續將庫存水平保持在適當的水平以滿足我們的需求。

So there will be increased levels at year-end with that.

因此，在年底將有更高的水平。

As it relates to CapEx, our forecast for the current year is $325 million.

由於與資本支出相關，我們對本年度的預測為 3.25 億美元。

There's a number of projects that we do have in place for that.

為此，我們確實有許多項目。

So we do expect some elevated CapEx going into 2022.

因此，我們確實預計到 2022 年資本支出會有所上升。

So those things will need to be factored into free cash flow when we come up to 2022 relating to the inventory levels as well as CapEx.

因此，當我們到 2022 年與庫存水平和資本支出相關時，這些事情將需要計入自由現金流。

Your next question comes from the line of Ben Bollin from Cleveland Research.

您的下一個問題來自 Cleveland Research 的 Ben Bollin。

Cliff, I was hoping we could talk a little bit about how you think about the advanced wearables business near term, longer term, within Fitness and Outdoor, in particular?

Cliff，我希望我們能談談你如何看待高級可穿戴設備業務的近期、長期，尤其是在健身和戶外領域？

Any thoughts you have on -- maybe you saw some pull forward during COVID.

你有任何想法——也許你在 COVID 期間看到了一些進步。

How significant do you think that might have been versus kind of broader secular category growth?

您認為與更廣泛的世俗類別增長相比，這可能有多重要？

Also interested in any thoughts you have on sell-in inventory stocking versus like sell-through performance and where channel inventory you feel is today versus maybe history?

還對您對銷售庫存庫存與銷售業績的任何想法感興趣，以及您認為今天的渠道庫存與歷史可能在哪裡？

Yes.

是的。

So I would say, in terms of the general performance of those categories over the past nearly 2 years now, certainly, there was a lot of pandemic-related interest in those products in the early part of the pandemic cycle.

所以我想說，就這些類別在過去近 2 年的總體表現而言，當然，在大流行週期的早期，人們對這些產品有很多與大流行相關的興趣。

That interest, of course, still remains very strong, and we believe, as the industry has reported that there's still a lot of growth potential in the wearables market, I think we're positioned really well in that market because we are differentiating ourselves around the active lifestyles theme.

當然，這種興趣仍然非常強烈，而且我們相信，正如行業報告的那樣，可穿戴設備市場仍有很大的增長潛力，我認為我們在這個市場上的定位非常好，因為我們正在使自己與眾不同積極的生活方式主題。

So everything we do with our products has a purpose and is built for purpose.

因此，我們對產品所做的一切都是有目的的，並且是為目的而建造的。

In terms of sell-in versus sell-through, I think we can definitely see those trends with our product registrations, and we feel like the sell-in and sell-through is matched very well at this point.

在銷售與銷售方面，我認為我們肯定可以通過我們的產品註冊看到這些趨勢，我們覺得銷售和銷售在這一點上非常匹配。

And the inventory levels in the channel are better than they have been, although, again, depending on product lines, there can be pockets of imbalances here and there.

並且渠道中的庫存水平比以往更好，儘管同樣，根據產品線的不同，這里和那裡可能存在一些不平衡。

And then the other question I have is just in regards to calendar 4Q this year versus prior years.

然後我的另一個問題是關於今年第四季度與往年的日曆。

Have you seen any notable changes, either in timing around retailer commitments as they prepare for the holidays?

您是否看到任何顯著的變化，無論是在零售商為假期做準備的時間安排上嗎？

Any thoughts around the promotional environment versus prior years?

與往年相比，有關促銷環境的任何想法？

And anything along the lines with consumer behavior?

有什麼與消費者行為有關的東西嗎？

Do you think they're shopping earlier versus prior?

你認為他們比以前購物更早嗎？

And that's it.

就是這樣。

Yes, so in terms of our Q4 versus prior years, last year, I think the market was still very distorted with many retailers starting to reopen or figure out how to open in light of the pandemic, and their inventories and online warehouses were very much depleted.

是的，所以就我們的第四季度與往年相比而言，去年，我認為市場仍然非常扭曲，許多零售商開始重新開業或考慮如何在大流行的情況下重新開業，他們的庫存和在線倉庫非常多耗盡。

So we're still seeing that pandemic-driven spike on a year-over-year comparison basis.

因此，在與去年同期比較的基礎上，我們仍然看到大流行驅動的飆升。

In terms of promotional environment, this year, I would say that things feel like they're getting a little bit back to normal, although it remains to be seen.

就促銷環境而言，今年，我會說事情感覺有點恢復正常，儘管還有待觀察。

I would say that there's not a rush as far as we can see that everyone is trying to shop early.

我想說，據我們所見，每個人都在嘗試早點購物，這並不著急。

There's obviously reports of that in light of the general inventory situation you see with products on the market.

鑑於您在市場上看到的一般庫存情況，顯然有相關報導。

But in general, I would say that it's looking more normal in the seasonality of the business.

但總的來說，我會說它在業務的季節性方面看起來更正常。

Your next question comes from the line of Will Power from Baird.

您的下一個問題來自 Baird 的 Will Power。

Yes, I guess a couple of questions.

是的，我猜有幾個問題。

First, I was hoping to come back just to some of the supply chain commentary.

首先，我希望回到一些供應鏈評論。

And I guess just trying to better understand, if possible, where you're seeing the primary impacts.

如果可能的話，我想只是想更好地了解你在哪裡看到了主要影響。

What segments, I guess, in particular?

我猜，特別是哪些細分市場？

How are you thinking about the overall impact in Q4 versus what you saw in Q3?

您如何看待第四季度的整體影響與您在第三季度看到的情況？

Do you expect it to get worse?

你預計情況會變得更糟嗎？

Is it stabilizing?

穩定了嗎？

Just some broader views on that front would be great.

在這方面有一些更廣泛的觀點會很棒。

Okay.

好的。

Yes, I would say that the supply chain environment, as I mentioned earlier in my remarks, is really tough.

是的，我想說的是，正如我之前在講話中提到的，供應鏈環境非常艱難。

We're handling thousands of components on a day-to-day basis and managing the inflow and the use of those components and, in some case, allocating how they're allocated to product manufacturing.

我們每天處理數千個組件，並管理這些組件的流入和使用，在某些情況下，分配它們如何分配給產品製造。

But in terms of our Q3, I would say that, definitely, we saw an impact in the Outdoor segment with regard to those products.

但就我們的第三季度而言，我肯定地說，我們看到了戶外領域對這些產品的影響。

I mentioned the dog products and the traditional handheld.

我提到了狗產品和傳統的手持設備。

But for the most part, across the business, we're doing okay and managing it again on a day-to-day basis.

但在大多數情況下，在整個業務中，我們都做得很好，並在日常基礎上再次對其進行管理。

So that's generally what we see.

所以這通常是我們所看到的。

Okay.

好的。

And then a question on auto, I guess maybe two-part.

然後是關於汽車的問題，我想可能是兩部分。

As you think about the OEM segment, what's the current thought process on margin outlook there?

當您考慮 OEM 細分市場時，目前對利潤率前景的思考過程是什麼？

I know there've been investments as programs ramp up.

我知道隨著項目的增加，已經有投資。

But any thoughts as to how to think about the cadence of margins from here?

但是關於如何從這裡考慮邊距的節奏有什麼想法嗎？

And then I guess, on the consumer side, margin is down a bit year-over-year -- operating margin is down a bit year-over-year.

然後我猜，在消費者方面，利潤率同比下降了一點——營業利潤率同比下降了一點。

I assume that's just something tied to mix, but any color there would be helpful, too.

我認為這只是與混合相關的東西，但那裡的任何顏色都會有幫助，也是。

Yes.

是的。

So on OEM, in the margin outlook, as our business transitions to the Tier 1 manufacturing opportunities that we've been talking about, of course, those have a thinner margin on the gross margin line.

因此，在 OEM 方面，在利潤率前景中，隨著我們的業務向我們一直在談論的一級製造機會過渡，當然，這些機會在毛利率線上的利潤率較低。

So that will definitely impact our gross margin as we develop the scale and get these programs into production.

因此，隨著我們發展規模並將這些程序投入生產，這肯定會影響我們的毛利率。

Then, of course, our -- what we're working towards is profitable bottom line.

然後，當然，我們正在努力實現盈利的底線。

But again, you should think of those in terms of traditional auto OEM margin structures.

但同樣，您應該從傳統汽車 OEM 利潤率結構的角度來考慮這些。

On the consumer side, definitely, we saw some impact on margin there.

在消費者方面，我們確實看到了對利潤率的一些影響。

Part of that is freight, but we also had some component costs in the consumer auto side that impacted the gross margin.

其中一部分是運費，但我們在消費汽車方面也有一些影響毛利率的零部件成本。

Your next question comes from the line of Ivan Feinseth from Tigress Financial Partners.

您的下一個問題來自 Tigress Financial Partners 的 Ivan Feinseth。

Congratulations on good performance in a difficult time.

祝賀你在困難時期表現出色。

Thank you.

謝謝你。

Some of the headwinds you spoke about, freight, things like that, are you starting to see them abate?

您談到的一些不利因素，例如運費，諸如此類，您是否開始看到它們減弱？

Or what is your near-term outlook on some of these?

或者您對其中一些的近期前景如何？

Yes.

是的。

Near term, we would say it's an ongoing thing.

近期，我們會說這是一個持續的事情。

We probably don't see anything in the near to intermediate term that really changes what's happening right now until there's really more capacity brought into the system and some of these bottlenecks get solved.

我們可能在近期和中期看不到任何真正改變目前正在發生的事情的事情，直到系統真正擁有更多容量並且其中一些瓶頸得到解決。

But maybe you have a slight increase in cost, but it's not really disrupting your manufacturing process, right?

但是也許您的成本會略有增加，但這並沒有真正擾亂您的製造過程，對嗎？

Like I've mentioned, we've managed the situation very well, probably as well as anyone could ever imagine.

就像我提到的那樣，我們已經很好地處理了這種情況，可能和任何人想像的一樣好。

And I would say, in this environment, of course, we're very sensitive to the profitability.

我想說，在這種環境下，當然，我們對盈利能力非常敏感。

So we're using this situation to reevaluate pricing of both existing products as well as new product introductions and promotions that we do in order to adjust.

因此，我們正在利用這種情況來重新評估現有產品的定價以及我們為調整所做的新產品介紹和促銷活動。

Great.

偉大的。

And your CapEx spending, you said you're going to increase spending on R&D, IT and marketing.

你的資本支出，你說你將增加研發、IT和營銷方面的支出。

In what kind of R&D areas?

在什麼樣的研發領域？

Can you give some idea of what you're working on or see, like new opportunities also in your IT?

您能否介紹一下您正在從事的工作或看到的內容，例如您的 IT 中的新機會？

What areas are you looking to invest in and improve?

您希望在哪些領域進行投資和改進？

And what type of marketing initiatives could we expect to see going forward?

我們可以期待看到哪些類型的營銷計劃？

Well, in terms of R&D, one of the bigger pieces of the increase in Q3 was the investment in the auto OEM programs to bring the next-generation BMW system to market, which we'll launch later next year.

嗯，在研發方面，第三季度增長的較大部分之一是對汽車 OEM 計劃的投資，以將下一代 BMW 系統推向市場，我們將於明年晚些時候推出。

And then across the business, we've had higher personnel costs as we work to retain our people, and also general growth as we invest in new product categories and new markets across our segments.

然後在整個業務中，我們努力留住員工的人力成本更高，而且隨著我們在各個細分市場投資新產品類別和新市場，我們也面臨著總體增長。

IT, our business is very much driven around the cloud and the online component of our products and the things that we offer.

IT，我們的業務在很大程度上是圍繞雲和我們產品的在線組件以及我們提供的東西驅動的。

And so we're investing in the IT infrastructure that we need to support all of that business.

因此，我們正在投資支持所有業務所需的 IT 基礎設施。

Marketing wise, again, we've got exciting product road maps.

在營銷方面，我們再次獲得了令人興奮的產品路線圖。

And so we're working on all of those and getting ready to launch new products.

因此，我們正在努力解決所有這些問題，並準備推出新產品。

I really like the Dexcom partnership, the integration of -- into your app and wearables there.

我真的很喜歡 Dexcom 的合作夥伴關係，將 - 集成到您的應用程序和可穿戴設備中。

What other kind of areas can you give some idea of the stuff that you're looking at?

您還能對您正在查看的內容提供哪些其他類型的信息？

Well, I think Connect IQ is a very versatile platform.

嗯，我認為 Connect IQ 是一個非常通用的平台。

That allows people to tap into, by far, the best hardware-based platform for wearables and purpose-driven devices that we have in cycling and outdoor traditional, those kinds of products.

到目前為止，這使人們可以利用我們在自行車和戶外傳統產品中擁有的可穿戴設備和目的驅動設備的最佳基於硬件的平台。

So it's a great asset for us, and we're constantly working on new opportunities to showcase Connect IQ apps with our devices.

所以這對我們來說是一筆巨大的財富，我們一直在尋找新的機會來展示我們的設備上的 Connect IQ 應用程序。

(Operator Instructions) Your next question comes from the line of Nik Todorov from Longbow Research.

（操作員說明）您的下一個問題來自 Longbow Research 的 Nik Todorov。

A question on Marine.

關於海洋的問題。

I think you guys continued to perform exceptionally well there and even versus tougher comps, especially if you compare it to some of the other segments that benefited last year from COVID, like fitness and outdoor.

我認為你們在那裡的表現仍然非常出色，甚至與更艱難的比賽相比，特別是如果你將它與去年從 COVID 中受益的其他一些細分市場進行比較，比如健身和戶外活動。

So can you give us some -- a little bit more details on what's driving the ability to address upside in Marine?

那麼，您能否給我們一些 - 更多細節，說明是什麼推動了海軍陸戰隊解決上行問題的能力？

Is it ability to have better supply than competitors in gaining share?

在獲得份額方面是否有能力比競爭對手有更好的供應？

Or what's the -- kind of some of the drivers there?

或者那裡的一些驅動程序是什麼？

Well, there's a lot of moving pieces in all of that, for sure.

好吧，當然，所有這些中都有很多動人的部分。

I would say that our product line is superior, and we're gaining market share, with particularly some of the halo technologies that we have, such as live scope.

我想說我們的產品線非常出色，而且我們正在獲得市場份額，尤其是我們擁有的一些光環技術，例如實時範圍。

The supply chain issue is, again, across the business.

供應鏈問題再次貫穿整個企業。

But in Marine, we were able to benefit there by being able to continue to deliver products and take advantage of opportunities.

但在 Marine 領域，我們能夠繼續提供產品並利用機會，從而從中受益。

And then on the OEM side of Marine, they are, of course, ramping up their production lines to meet the boat demand that is still very persistent and extends, even now we're hearing, into 2023 in terms of their backlog.

然後在 Marine 的 OEM 方面，當然，他們正在擴大生產線以滿足仍然非常持久的船舶需求，並且即使現在我們聽說，他們的積壓訂單也會延長到 2023 年。

So we're working to support those customers, those OEM customers and support the general growth of the market that's taking place right now.

因此，我們正在努力支持這些客戶，那些 OEM 客戶，並支持目前正在發生的市場的總體增長。

Okay.

好的。

And then a question on the model.

然後是關於模型的問題。

Doug, maybe -- I'm sorry if I missed this, but you took gross margin down for the year, but then the operating margin up.

道格，也許——如果我錯過了這一點，我很抱歉，但你今年的毛利率下降了，但隨後營業利潤率上升了。

So can you share what is the offsetting factor there?

那麼你能分享一下那裡的抵消因素是什麼嗎？

Yes, it's really leveraging operating expenses.

是的，它確實在利用運營費用。

So looking at our operating expenses really gave that difference between the operating margin as well as the gross margin decline there.

因此，查看我們的運營費用確實可以看出營業利潤率和毛利率下降之間的差異。

(Operator Instructions) Our next question comes from the line of Erik Woodring from Morgan Stanley.

（操作員說明）我們的下一個問題來自摩根士丹利的 Erik Woodring。

Cliff, I guess this one is just for you.

克里夫，我想這只是給你的。

I just want to be clear.

我只想說清楚。

Would you say, as you sit here today, obviously, we know about the supply chain challenges, but do you feel confident right now in Garmin's ability to have products on the shelf for the holiday season?

您是否會說，當您今天坐在這裡時，顯然我們知道供應鏈面臨的挑戰，但您現在對 Garmin 有能力在假日季上架產品有信心嗎？

I just want to start with that one, and then I have a follow-up.

我只想從那個開始，然後我有一個跟進。

Yes.

是的。

1

1

Easy enough.

很容易。

[Any chance those numbers would be]...

[這些數字可能是]...

I'm not sure you heard me correctly.

我不確定你沒聽錯。

You said, are you confident?

你說，你有信心嗎？

And I said, yes.

我說，是的。

Yes.

是的。

No, that's perfect.

不，那是完美的。

Second question was just if, we look by geographies, APAC was noticeably weaker than North America or -- and EMEA.

第二個問題是，我們從地域來看，亞太地區是否明顯弱於北美或歐洲、中東和非洲。

Just curious if you could share some color there why that would be.

只是好奇你是否可以在那里分享一些顏色，為什麼會這樣。

Yes.

是的。

In APAC, there's really 2 factors.

在亞太地區，實際上有兩個因素。

One was the rolling progress of the pandemic as Delta swept through various countries across the region.

一是隨著三角洲席捲該地區各個國家，大流行的滾動進展。

And so we had some impact in the markets, generally, as there were more stringent lockdowns and measures taken to control the Delta spread.

因此，總體而言，我們對市場產生了一些影響，因為採取了更嚴格的封鎖措施和控制三角洲價差的措施。

And then the other major factor was the timing of product introductions, particularly in outdoor.

然後另一個主要因素是產品推出的時間，特別是在戶外。

The APAC market is definitely reliant on those product introductions.

亞太市場絕對依賴於這些產品的推出。

And so they're comping against the very strong introduction of our solar products that we did last year in Q3.

因此，他們正在與我們去年第三季度大力推出的太陽能產品相抗衡。

Got it.

知道了。

If I could just sneak one last one in there.

如果我能偷偷溜進去最後一個。

Just, you made those comments about the boating market, specifically the OEM market.

只是，您對划船市場，特別是 OEM 市場發表了這些評論。

I guess with that, the fact that backlog is potentially extending out to 2023, is it accurate to say that there might not be as weak of a off-season this year similar to last year?

我想，事實上，積壓可能會延長到 2023 年，是否可以準確地說今年的淡季可能不像去年那樣弱？

Is that a fair thing to say?

這樣說公平嗎？

Well, I think the OEM part of the business is a smaller percentage compared to aftermarket.

好吧，我認為與售後市場相比，OEM 業務的比例較小。

So even if it swings to a greater degree, it's less influential on the overall business just because of the mix of that.

因此，即使它在更大程度上擺動，它對整體業務的影響也較小，因為它的混合。

But that said, I would say that the seasonality of Marine is a little bit more normal in the current year versus where we saw last year.

但話雖如此，我會說今年 Marine 的季節性比我們去年看到的要正常一些。

So we would expect, as economies and business activity tends to normalize around the pandemic and endemic behaviors of this virus, that the marine industry would also return to its normal seasonality, and we've seen some of that in Q3 and Q4.

因此，我們預計，隨著經濟和商業活動趨於圍繞這種病毒的大流行和地方性行為正常化，海洋產業也將恢復其正常的季節性，我們在第三季度和第四季度已經看到了一些情況。

(Operator Instructions) I'm showing no further questions at this time.

（操作員說明）我目前沒有其他問題。

I would now like to turn the conference back to Teri.

我現在想把會議轉回 Teri。

Please go ahead.

請繼續。

Thanks, everyone, for your time today.

謝謝大家，今天的時間。

Have a great day.

祝你有美好的一天。

Bye.

再見。

This concludes today's conference call.

今天的電話會議到此結束。

Thank you for participating.

感謝您的參與。

You may now disconnect.

您現在可以斷開連接。