BALTIMORE, Oct. 30, 2020 /PRNewswire/ -- Under Armour,
Inc. (NYSE: UA, UAA) today announced financial results for the
third quarter ended September 30, 2020. The company reports
its financial performance in accordance with accounting principles
generally accepted in the United States
of America ("GAAP"). This press release refers to "currency
neutral" and "adjusted" amounts, which are non-GAAP financial
measures described below under the "Non-GAAP Financial Information"
paragraph. References to adjusted financial measures exclude the
impact of the company's 2020 restructuring plan and related
impairment charges, impairments associated with certain long-lived
assets and goodwill and related tax effects, and with respect to
certain measures, the non-cash amortization of debt discount on the
company's convertible debt, deal-costs related to the pending sale
of MyFitnessPal and related tax effects. The reconciliation
of non-GAAP amounts to the most directly comparable financial
measure calculated according to GAAP is presented in supplemental
financial information furnished with this release. All per share
amounts are reported on a diluted basis.
"Our third-quarter results reflect considerably better than
expected performance due to higher demand and our strong execution,
especially in North America," said
Under Armour President and CEO Patrik
Frisk. "We believe that the critical mass of our
transformational challenges is behind us, and we remain sharply
focused on operational improvements and financial discipline to
accelerate strategies to create sustainable, long-term growth for
the Under Armour brand and our shareholders."
Third Quarter 2020 Review
- Revenue was flat at $1.4
billion compared to the prior year.
-
- Wholesale revenue decreased 7 percent to $830 million and direct-to-consumer revenue
increased 17 percent to $540 million,
driven by continued strong growth in eCommerce.
- North America revenue
decreased 5 percent to $963 million
and international revenue increased 18 percent to $433 million (up 17 percent currency neutral).
Within the international business, revenue increased 31 percent in
EMEA (up 26 percent currency neutral), increased 15 percent in
Asia-Pacific (up 16 percent
currency neutral), and decreased 15 percent in Latin America (down 7 percent currency
neutral).
- Apparel revenue decreased 6 percent to $927 million. Footwear revenue increased 19
percent to $299 million. Accessories
revenue increased 23 percent to $145
million.
- Gross margin decreased 40 basis points to 47.9 percent
compared to the prior year, driven primarily by negative impacts
from COVID-19 related discounting and product mix partially offset
by supply chain efficiencies and channel mix.
- Selling, general & administrative expense was
relatively unchanged from the prior year at $554 million.
- Restructuring and impairment charges were $74 million consisting of $70 million of restructuring and related
impairment charges and $4 million
from long-lived asset impairments. Through the third quarter, the
company has recognized $550 million
of restructuring and impairment charges consisting of $410 million in restructuring and related
impairment charges ($326 million in
non-cash and $84 million in cash) and
$140 million from impairments of
long-lived assets and goodwill.
- Operating income was $59
million. Excluding the impact of restructuring and
impairment charges, adjusted operating income was
$133 million.
- Net income was $39
million. Adjusted net income was $118 million.
- Diluted earnings per share was $0.09. Adjusted diluted earnings per share
was $0.26.
- Inventory was up 17 percent to $1.1 billion.
- Cash and Liquidity
-
- The company ended the third quarter with Cash and
Cash Equivalents of $866
million.
- No borrowings were outstanding under the company's $1.1 billion revolving credit facility at the end
of the third quarter.
Fiscal 2020 Outlook
Due to ongoing uncertainty related to COVID-19 and its potential
effect on global markets, the company expects material impacts on
its business results for the remainder of 2020 and into
2021. Key points related to Under Armour's
full-year 2020 outlook include:
- Revenue is expected to be down at a high-teen percentage
rate compared to 2019 results, reflecting a low twenties percentage
rate decline in North America and
a high-single-digit percentage rate decline within the
international business. For the fourth quarter, the company now
expects revenue to be down at a low-teen percentage rate, versus
the previous down 20 to 25 percent expectation, impacted by the
following factors:
-
- Expected year-end timing impacts from COVID-19, related
to customer order flow and changes in supply chain timing resulting
in more planned spring product deliveries in early 2021 versus late
2020.
- An anticipated substantial decline in licensing revenue due to
lower contractual royalty minimums and contract settlements
realized in the prior year.
- Lower planned excess inventory sales to the off-price
channel.
- Gross margin is expected to be up 20 to 40 basis points
versus 2019 due to channel mix benefits and supply chain
efficiencies, offset mainly by discounting related to COVID-19. For
the fourth quarter, the company anticipates meaningful gross margin
pressure primarily related to expectations around a more
promotional environment relative to the prior year.
- Operating loss is expected to reach approximately
$800 million to $860 million. Excluding the impact of
restructuring and impairment charges, adjusted operating
loss is expected to reach approximately $140 million to $150
million.
- Adjusted interest and other expense net is
planned at approximately $55
million.
- Adjusted diluted loss per share is expected to be in the
range of $0.47 to $0.49.
- Inventory is expected to be up approximately 10 percent
at the end of 2020.
- Capital expenditures are planned at approximately
$80 million compared to $144 million in 2019.
COVID-19 Update
Under Armour continues to monitor COVID-19 globally, complying
with guidance from government entities and public health
authorities. The company remains focused on protecting our
teammates and consumers' health and safety while working with our
suppliers and customers to minimize potential disruptions. The
vast majority of locations where Under Armour is sold are now open.
In the company's owned and operated retail stores, traffic trends
remain challenged; however, conversion trends remain strong.
Additionally, the company experienced significant eCommerce growth
around the world during the quarter. The fourth quarter and
full-year outlook provided today assume the vast majority of retail
locations where Under Armour is sold will continue to remain open
and operate under similar health and safety requirements for the
remainder of the year.
MyFitnessPal Platform Sale Announcement
In a separate press release today, the company announced that it
has entered into a definitive agreement to sell the
MyFitnessPal platform to Francisco Partners, a private
equity firm. The transaction value is $345
million, inclusive of the achievement of potential earn-out
payments and subject to working capital and other customary
adjustments. The transaction, which is expected to close in the
fourth quarter of 2020, is subject to customary closing conditions
and regulatory approvals. The fourth quarter and full-year outlook
provided today do not include the impact of the potential sale of
MyFitnessPal.
MyFitnessPal is currently reported within Under
Armour's Connected Fitness segment, which also contains the
MapMyFitness and Endomondo platforms. In conjunction
with this announcement, the company indicated that it would
discontinue its Endomondo platform at the end of 2020. The
MapMyFitness platform, which includes MapMyRun and
MapMyRide, remains a crucial element of Under Armour's
digital strategy, as does its connected footwear business.
Conference Call and Webcast
Under Armour will hold its third quarter 2020 conference
call and webcast today at approximately 8:30
a.m. Eastern Time. The call will be webcast live at
https://about.underarmour.com/investor-relations/financials and
will be archived and available for replay about three hours after
the live event.
Non-GAAP Financial Information
This press release refers to "currency neutral" and "adjusted"
amounts. Currency neutral financial information is calculated to
exclude the impact of changes in foreign currency exchange rates.
Management believes this information is useful to investors to
compare the company's results of operations period-over-period.
Adjusted financial measures exclude the impact of the company's
2020 restructuring plan and related impairment charges, impairments
associated with certain long-lived assets and goodwill, and related
tax effects. Management believes this information is useful to
investors because it enhances visibility into its actual underlying
results, excluding these impacts. Adjusted net loss and adjusted
diluted loss per share also exclude the non-cash amortization of
debt discount on the company's convertible senior notes, deal-costs
related to the pending sale of MyFitnessPal and related tax
effects. Management believes the non-cash portion of the interest
expense, which represents the accretion of the bifurcated equity
component of the convertible senior notes' conversion option, is
not core to the company's operations given the intent and ability
to settle in shares of the company's Class C common stock.
Similarly, deal costs are not core to the company's
operation given dispositions are infrequent and
non-recurring in nature. These supplemental non-GAAP financial
measures should not be considered in isolation and should be
contemplated in addition to, and not as an alternative for, the
company's reported results prepared per GAAP. Additionally, the
company's non-GAAP financial information may not be comparable to
similarly titled measures reported by other companies.
About Under Armour, Inc.
Under Armour, Inc., headquartered in Baltimore, Maryland, is a leading inventor,
marketer and distributor of branded athletic performance apparel,
footwear and accessories. Powered by one of the world's largest
digitally connected fitness and wellness communities, Under
Armour's innovative products and experiences are designed to help
advance human performance, making all athletes better. For further
information, please visit https://about.underarmour.com.
Forward Looking Statements
Some of the statements contained in this press release
constitute forward-looking statements. Forward-looking statements
relate to expectations, beliefs, projections, plans and strategies,
anticipated events or trends and similar expressions concerning
matters that are not historical facts, such as statements regarding
our future financial condition or results of operations, the impact
of the COVID-19 pandemic on our business, our plans to reduce our
2020 operating expenses, anticipated charges and restructuring
costs, projected savings related to our restructuring plans and our
planned sale of our MyFitnessPal platform and the timing
thereof. In many cases, you can identify forward-looking statements
by terms such as "may," "will," "should," "expects," "plans,"
"assumes," "anticipates," "believes," "estimates," "predicts,"
"outlook," "potential" or the negative of these terms or other
comparable terminology. The forward-looking statements contained in
this press release reflect our current views about future events
and are subject to risks, uncertainties, assumptions and changes in
circumstances that may cause events or our actual activities or
results to differ significantly from those expressed in any
forward-looking statement. Although we believe that the
expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future events, results, actions,
levels of activity, performance or achievements. Readers are
cautioned not to place undue reliance on these forward-looking
statements. A number of important factors could cause actual
results to differ materially from those indicated by the
forward-looking statements, including, but not limited to: the
impact of the COVID-19 pandemic on our industry and our business,
financial condition and results of operations; changes in general
economic or market conditions that could affect overall consumer
spending or our industry; changes to the financial health of our
customers; loss of key suppliers or manufacturers or failure of our
suppliers or manufacturers to produce or deliver our products in a
timely or cost-effective manner; our ability to access capital and
financing required to manage our business on terms acceptable to
us; our ability to successfully execute our long-term strategies;
our ability to successfully execute any potential restructuring
plans and realize their expected benefits; our ability to
effectively drive operational efficiency in our business; our
ability to manage the increasingly complex operations of our global
business; our ability to comply with existing trade and other
regulations, and the potential impact of new trade, tariff and tax
regulations on our profitability; our ability to effectively
develop and launch new, innovative and updated products; our
ability to accurately forecast consumer demand for our products and
manage our inventory in response to changing demands; any
disruptions, delays or deficiencies in the design, implementation
or application of our new global operating and financial reporting
information technology system; increased competition causing us to
lose market share or reduce the prices of our products or to
increase significantly our marketing efforts; fluctuations in the
costs of our products; our ability to further expand our business
globally and to drive brand awareness and consumer acceptance of
our products in other countries; our ability to accurately
anticipate and respond to seasonal or quarterly fluctuations in our
operating results; our ability to successfully manage or realize
expected results from acquisitions and other significant
investments or capital expenditures; risks related to foreign
currency exchange rate fluctuations; our ability to effectively
market and maintain a positive brand image; the availability,
integration and effective operation of information systems and
other technology, as well as any potential interruption of such
systems or technology; risks related to data security or privacy
breaches; our potential exposure to litigation and other
proceedings; and our ability to attract key talent and retain the
services of our senior management and key employees. The
forward-looking statements contained in this press release reflect
our views and assumptions only as of the date of this press
release. We undertake no obligation to update any forward-looking
statement to reflect events or circumstances after the date on
which the statement is made or to reflect the occurrence of
unanticipated events.
Under Armour,
Inc.
For the Three and
Nine Months Ended September 30, 2020, and 2019
(Unaudited; in
thousands, except per share amounts)
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2020
|
|
% of Net
Revenues
|
|
2019
|
|
% of Net
Revenues
|
|
2020
|
|
% of Net
Revenues
|
|
2019
|
|
% of Net
Revenues
|
Net
revenues
|
|
$
|
1,433,021
|
|
|
100.0
|
%
|
|
$
|
1,429,456
|
|
|
100.0
|
%
|
|
$
|
3,070,901
|
|
|
100.0
|
%
|
|
$
|
3,825,907
|
|
|
100.0
|
%
|
Cost of goods
sold
|
|
746,701
|
|
|
52.1
|
%
|
|
739,558
|
|
|
51.7
|
%
|
|
1,604,428
|
|
|
52.2
|
%
|
|
2,036,901
|
|
|
53.2
|
%
|
Gross
profit
|
|
686,320
|
|
|
47.9
|
%
|
|
689,898
|
|
|
48.3
|
%
|
|
1,466,473
|
|
|
47.8
|
%
|
|
1,789,006
|
|
|
46.8
|
%
|
Selling, general and
administrative expenses
|
|
553,549
|
|
|
38.6
|
%
|
|
550,978
|
|
|
38.5
|
%
|
|
1,586,156
|
|
|
51.7
|
%
|
|
1,626,309
|
|
|
42.5
|
%
|
Restructuring and
impairment charges
|
|
74,201
|
|
|
5.2
|
%
|
|
—
|
|
|
—
|
%
|
|
549,601
|
|
|
17.9
|
%
|
|
—
|
|
|
—
|
%
|
Income (loss) from
operations
|
|
58,570
|
|
|
4.1
|
%
|
|
138,920
|
|
|
9.7
|
%
|
|
(669,284)
|
|
|
(21.8)
|
%
|
|
162,697
|
|
|
4.3
|
%
|
Interest expense,
net
|
|
(14,955)
|
|
|
(1.0)
|
%
|
|
(5,655)
|
|
|
(0.4)
|
%
|
|
(32,251)
|
|
|
(1.1)
|
%
|
|
(15,881)
|
|
|
(0.4)
|
%
|
Other expense,
net
|
|
(7,184)
|
|
|
(0.5)
|
%
|
|
(429)
|
|
|
—
|
%
|
|
(10,493)
|
|
|
(0.3)
|
%
|
|
(2,224)
|
|
|
(0.1)
|
%
|
Income (loss)
before income taxes
|
|
36,431
|
|
|
2.5
|
%
|
|
132,836
|
|
|
9.3
|
%
|
|
(712,028)
|
|
|
(23.2)
|
%
|
|
144,592
|
|
|
3.8
|
%
|
Income tax expense
(benefit)
|
|
(3,714)
|
|
|
(0.3)
|
%
|
|
29,344
|
|
|
2.1
|
%
|
|
14,696
|
|
|
0.5
|
%
|
|
31,735
|
|
|
0.8
|
%
|
Loss from equity
method investments
|
|
(1,199)
|
|
|
(0.1)
|
%
|
|
(1,177)
|
|
|
(0.1)
|
%
|
|
(6,906)
|
|
|
(0.2)
|
%
|
|
(5,414)
|
|
|
(0.1)
|
%
|
Net income
(loss)
|
|
$
|
38,946
|
|
|
2.7
|
%
|
|
$
|
102,315
|
|
|
7.2
|
%
|
|
$
|
(733,630)
|
|
|
(23.9)
|
%
|
|
$
|
107,443
|
|
|
2.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income
(loss) per share of Class A, B and C common stock
|
|
$
|
0.09
|
|
|
|
|
$
|
0.23
|
|
|
|
|
$
|
(1.62)
|
|
|
|
|
$
|
0.24
|
|
|
|
Diluted net income
(loss) per share of Class A, B and C common stock
|
|
$
|
0.09
|
|
|
|
|
$
|
0.23
|
|
|
|
|
$
|
(1.62)
|
|
|
|
|
$
|
0.24
|
|
|
|
Weighted average
common shares outstanding Class A, B and C common
stock
|
Basic
|
|
454,541
|
|
|
|
|
451,385
|
|
|
|
|
453,847
|
|
|
|
|
450,739
|
|
|
|
Diluted
|
|
456,674
|
|
|
|
|
454,695
|
|
|
|
|
453,847
|
|
|
|
|
454,047
|
|
|
|
Under Armour,
Inc.
For the Three and
Nine Months Ended September 30, 2020, and 2019
(Unaudited; in
thousands)
|
|
NET REVENUES BY
PRODUCT CATEGORY
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2020
|
|
2019
|
|
% Change
|
|
2020
|
|
2019
|
|
% Change
|
Apparel
|
|
$
|
927,041
|
|
|
$
|
985,623
|
|
|
(5.9)
|
%
|
|
$
|
1,951,186
|
|
|
$
|
2,499,989
|
|
|
(22.0)
|
%
|
Footwear
|
|
298,687
|
|
|
250,596
|
|
|
19.2
|
%
|
|
693,464
|
|
|
827,223
|
|
|
(16.2)
|
%
|
Accessories
|
|
145,060
|
|
|
118,164
|
|
|
22.8
|
%
|
|
268,912
|
|
|
306,406
|
|
|
(12.2)
|
%
|
Total net
sales
|
|
1,370,788
|
|
|
1,354,383
|
|
|
1.2
|
%
|
|
2,913,562
|
|
|
3,633,618
|
|
|
(19.8)
|
%
|
Licensing
revenues
|
|
25,121
|
|
|
29,602
|
|
|
(15.1)
|
%
|
|
51,244
|
|
|
76,567
|
|
|
(33.1)
|
%
|
Connected
Fitness
|
|
36,894
|
|
|
39,346
|
|
|
(6.2)
|
%
|
|
102,600
|
|
|
101,385
|
|
|
1.2
|
%
|
Corporate Other
(1)
|
|
218
|
|
|
6,125
|
|
|
(96.4)
|
%
|
|
$
|
3,495
|
|
|
$
|
14,337
|
|
|
(75.6)
|
%
|
Total net
revenues
|
|
$
|
1,433,021
|
|
|
$
|
1,429,456
|
|
|
0.2
|
%
|
|
$
|
3,070,901
|
|
|
$
|
3,825,907
|
|
|
(19.7)
|
%
|
|
|
|
NET REVENUES BY
SEGMENT
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2020
|
|
2019
|
|
% Change
|
|
2020
|
|
2019
|
|
% Change
|
North
America
|
|
$
|
962,565
|
|
|
$
|
1,015,920
|
|
|
(5.3)
|
%
|
|
$
|
2,021,247
|
|
|
$
|
2,675,389
|
|
|
(24.5)
|
%
|
EMEA
|
|
210,111
|
|
|
160,981
|
|
|
30.5
|
%
|
|
437,140
|
|
|
440,405
|
|
|
(0.7)
|
%
|
Asia-Pacific
|
|
178,895
|
|
|
154,898
|
|
|
15.5
|
%
|
|
397,846
|
|
|
453,296
|
|
|
(12.2)
|
%
|
Latin
America
|
|
44,338
|
|
|
52,186
|
|
|
(15.0)
|
%
|
|
108,573
|
|
|
141,095
|
|
|
(23.0)
|
%
|
Connected
Fitness
|
|
36,894
|
|
|
39,346
|
|
|
(6.2)
|
%
|
|
102,600
|
|
|
101,385
|
|
|
1.2
|
%
|
Corporate Other
(1)
|
|
218
|
|
|
6,125
|
|
|
(96.4)
|
%
|
|
3,495
|
|
|
$
|
14,337
|
|
|
(75.6)
|
%
|
Total net
revenues
|
|
$
|
1,433,021
|
|
|
$
|
1,429,456
|
|
|
0.2
|
%
|
|
$
|
3,070,901
|
|
|
$
|
3,825,907
|
|
|
(19.7)
|
%
|
|
|
|
INCOME (LOSS) FROM
OPERATIONS
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2020
|
% of Net
Revenues (2)
|
|
2019
|
% of Net
Revenues (2)
|
|
2020
|
% of Net
Revenues (2)
|
|
2019
|
|
% of Net
Revenues (2)
|
North
America
|
|
$
|
224,593
|
|
23.3
|
%
|
|
$
|
237,229
|
|
23.4
|
%
|
|
$
|
251,579
|
|
12.4
|
%
|
|
$
|
536,700
|
|
|
20.1
|
%
|
EMEA
|
|
40,834
|
|
19.4
|
%
|
|
21,989
|
|
13.7
|
%
|
|
43,840
|
|
10.0
|
%
|
|
44,700
|
|
|
10.1
|
%
|
Asia-Pacific
|
|
19,248
|
|
10.8
|
%
|
|
34,666
|
|
22.4
|
%
|
|
(30,040)
|
|
(7.6)
|
%
|
|
74,116
|
|
|
16.4
|
%
|
Latin
America
|
|
1,802
|
|
4.1
|
%
|
|
233
|
|
0.4
|
%
|
|
(50,756)
|
|
(46.7)
|
%
|
|
(4,017)
|
|
|
(2.8)
|
%
|
Connected
Fitness
|
|
6,629
|
|
18.0
|
%
|
|
7,023
|
|
17.8
|
%
|
|
14,020
|
|
13.7
|
%
|
|
8,103
|
|
|
8.0
|
%
|
Corporate
Other
|
|
(234,536)
|
|
NM
|
|
|
(162,220)
|
|
NM
|
|
|
(897,927)
|
|
NM
|
|
|
(496,905)
|
|
|
NM
|
|
Income (loss) from
operations
|
|
$
|
58,570
|
|
4.1
|
%
|
|
$
|
138,920
|
|
9.7
|
%
|
|
$
|
(669,284)
|
|
(21.8)
|
%
|
|
$
|
162,697
|
|
|
4.3
|
%
|
|
(1) Corporate
Other consists of foreign currency hedge gains and losses related
to revenues generated by entities within our geographic operating
segments but managed through our central foreign exchange risk
management program.
|
|
(2) Operating
income (loss) percentage is calculated based on total segment net
revenues. Additionally, the operating income (loss) percentage for
Corporate Other is not presented as it is not a meaningful metric
(NM).
|
Under Armour,
Inc.
As of
September 30, 2020, December 31, 2019, and
September 30, 2019
(Unaudited; in
thousands)
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
September 30,
2020
|
|
December 31,
2019
|
|
September 30,
2019
|
Assets
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
865,609
|
|
|
$
|
788,072
|
|
|
$
|
416,603
|
|
Accounts receivable,
net
|
|
806,916
|
|
|
708,714
|
|
|
843,495
|
|
Inventories
|
|
1,056,845
|
|
|
892,258
|
|
|
906,544
|
|
Prepaid expenses and
other current assets
|
|
243,971
|
|
|
313,165
|
|
|
292,447
|
|
Total current
assets
|
|
2,973,341
|
|
|
2,702,209
|
|
|
2,459,089
|
|
Property and
equipment, net
|
|
680,871
|
|
|
792,148
|
|
|
778,894
|
|
Operating lease
right-of-use assets
|
|
560,146
|
|
|
591,931
|
|
|
595,832
|
|
Goodwill
|
|
493,631
|
|
|
550,178
|
|
|
541,798
|
|
Intangible assets,
net
|
|
37,274
|
|
|
36,345
|
|
|
37,811
|
|
Deferred income
taxes
|
|
45,995
|
|
|
82,379
|
|
|
90,860
|
|
Other long-term
assets
|
|
72,293
|
|
|
88,341
|
|
|
129,481
|
|
Total
assets
|
|
$
|
4,863,551
|
|
|
$
|
4,843,531
|
|
|
$
|
4,633,765
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
643,315
|
|
|
$
|
618,194
|
|
|
483,627
|
|
Accrued
expenses
|
|
309,096
|
|
|
374,694
|
|
|
309,305
|
|
Customer refund
liabilities
|
|
197,496
|
|
|
219,424
|
|
|
209,785
|
|
Operating lease
liabilities
|
|
156,885
|
|
|
125,900
|
|
|
119,446
|
|
Other current
liabilities
|
|
141,607
|
|
|
83,797
|
|
|
77,498
|
|
Total current
liabilities
|
|
1,448,399
|
|
|
1,422,009
|
|
|
1,199,661
|
|
Long term debt, net
of current maturities
|
|
997,347
|
|
|
592,687
|
|
|
591,995
|
|
Operating lease
liabilities, non-current
|
|
872,791
|
|
|
580,635
|
|
|
588,490
|
|
Other long-term
liabilities
|
|
74,668
|
|
|
98,113
|
|
|
99,953
|
|
Total
liabilities
|
|
3,393,205
|
|
|
2,693,444
|
|
|
2,480,099
|
|
Total stockholders'
equity
|
|
1,470,346
|
|
|
2,150,087
|
|
|
2,153,666
|
|
Total liabilities
and stockholders' equity
|
|
$
|
4,863,551
|
|
|
$
|
4,843,531
|
|
|
$
|
4,633,765
|
|
Under Armour,
Inc.
For the Nine Months
Ended September 30, 2020, and 2019
(Unaudited; in
thousands)
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
Nine Months Ended
September 30,
|
|
2020
|
|
2019
|
Cash flows from
operating activities
|
|
|
|
Net income
(loss)
|
$
|
(733,630)
|
|
|
$
|
107,443
|
|
Adjustments to
reconcile net income (loss) to net cash used in operating
activities
|
|
|
|
Depreciation and
amortization
|
124,169
|
|
|
140,443
|
|
Unrealized foreign
currency exchange rate gain (loss)
|
(3,676)
|
|
|
12,885
|
|
Loss on disposal of
property and equipment
|
3,547
|
|
|
2,884
|
|
Impairment
charges
|
452,945
|
|
|
—
|
|
Amortization of bond
premium
|
6,910
|
|
|
190
|
|
Stock-based
compensation
|
32,770
|
|
|
38,048
|
|
Deferred income
taxes
|
19,172
|
|
|
23,827
|
|
Changes in reserves
and allowances
|
22,910
|
|
|
(22,778)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
(105,874)
|
|
|
(187,585)
|
|
Inventories
|
(159,930)
|
|
|
123,364
|
|
Prepaid expenses and
other assets
|
64,404
|
|
|
73,753
|
|
Other non-current
assets
|
(288,111)
|
|
|
5,939
|
|
Accounts
payable
|
17,972
|
|
|
(67,336)
|
|
Accrued expenses and
other liabilities
|
301,720
|
|
|
(52,466)
|
|
Customer refund
liabilities
|
(23,164)
|
|
|
(88,710)
|
|
Income taxes payable
and receivable
|
18,159
|
|
|
(7,433)
|
|
Net cash provided by
(used in) operating activities
|
(249,707)
|
|
|
102,468
|
|
Cash flows from
investing activities
|
|
|
|
Purchases of property
and equipment
|
(71,639)
|
|
|
(105,767)
|
|
Purchases of other
assets
|
—
|
|
|
(1,273)
|
|
Purchase of
businesses
|
(38,848)
|
|
|
—
|
|
Net cash used in
investing activities
|
(110,487)
|
|
|
(107,040)
|
|
Cash flows from
financing activities
|
|
|
|
Proceeds from long
term debt and revolving credit facility
|
1,288,753
|
|
|
25,000
|
|
Payments on long term
debt and revolving credit facility
|
(800,000)
|
|
|
(162,817)
|
|
Purchase of capped
call
|
(47,850)
|
|
|
—
|
|
Employee taxes paid
for shares withheld for income taxes
|
(3,285)
|
|
|
(4,088)
|
|
Proceeds from
exercise of stock options and other stock issuances
|
3,855
|
|
|
5,797
|
|
Payments of debt
financing costs
|
(5,150)
|
|
|
(2,661)
|
|
Other financing
fees
|
—
|
|
|
77
|
|
Net cash provided by
(used in) financing activities
|
436,323
|
|
|
(138,692)
|
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
2,398
|
|
|
4,809
|
|
Net increase in
(decrease in) cash, cash equivalents and restricted cash
|
78,527
|
|
|
(138,455)
|
|
Cash, cash
equivalents and restricted cash
|
|
|
|
Beginning of
period
|
796,008
|
|
|
566,060
|
|
End of
period
|
$
|
874,535
|
|
|
$
|
427,605
|
|
Under Armour,
Inc.
For the Three Months
Ended September 30, 2020
(Unaudited)
|
|
The table below
presents the reconciliation of net revenue growth (decline)
calculated according to GAAP to currency-neutral net revenue, a
non-GAAP measure. See "Non-GAAP Financial Information" above for
further information regarding the Company's use of non-GAAP
financial measures.
|
|
CURRENCY NEUTRAL
NET REVENUE GROWTH (DECLINE) RECONCILIATION
|
|
|
|
Three months
ended
September 30, 2020
|
Total Net
Revenue
|
|
|
Net revenue growth -
GAAP
|
|
0.2
|
%
|
Foreign exchange
impact
|
|
—
|
%
|
Currency neutral net
revenue growth - Non-GAAP
|
|
0.2
|
%
|
|
|
|
North
America
|
|
|
Net revenue decline -
GAAP
|
|
(5.3)
|
%
|
Foreign exchange
impact
|
|
0.2
|
%
|
Currency neutral net
revenue decline - Non-GAAP
|
|
(5.1)
|
%
|
|
|
|
EMEA
|
|
|
Net revenue growth -
GAAP
|
|
30.5
|
%
|
Foreign exchange
impact
|
|
(4.3)
|
%
|
Currency neutral net
revenue growth - Non-GAAP
|
|
26.2
|
%
|
|
|
|
Asia-Pacific
|
|
|
Net revenue growth -
GAAP
|
|
15.5
|
%
|
Foreign exchange
impact
|
|
0.1
|
%
|
Currency neutral net
revenue growth - Non-GAAP
|
|
15.6
|
%
|
|
|
|
Latin
America
|
|
|
Net revenue decline -
GAAP
|
|
(15.0)
|
%
|
Foreign exchange
impact
|
|
8.2
|
%
|
Currency neutral net
revenue decline - Non-GAAP
|
|
(6.8)
|
%
|
|
|
|
Total
International
|
|
|
Net revenue growth -
GAAP
|
|
17.7
|
%
|
Foreign exchange
impact
|
|
(0.6)
|
%
|
Currency neutral net
revenue growth - Non-GAAP
|
|
17.1
|
%
|
Under Armour,
Inc.
For the Three Months
Ended September 30, 2020
(Unaudited)
|
|
The tables below
present the reconciliation of the Company's consolidated statement
of operations presented in accordance with GAAP to certain adjusted
non-GAAP financial measures discussed in this press release. See
"Non-GAAP Financial Information" above for further information
regarding the Company's use of non-GAAP financial
measures.
|
|
ADJUSTED OPERATING
INCOME RECONCILIATION
|
|
|
|
Three months ended
September 30, 2020
|
Income from
operations
|
|
$
|
58,570
|
|
Add: Impact of
restructuring and related impairment
|
|
70,232
|
|
Add: Impact of
impairment
|
|
3,969
|
|
Adjusted income from
operations
|
|
$
|
132,771
|
|
|
|
|
ADJUSTED NET
INCOME RECONCILIATION
|
|
|
|
Three months ended
September 30, 2020
|
Net income
|
|
$
|
38,946
|
|
Add: Impact of
restructuring and related impairment
|
|
68,208
|
|
Add: Impact of
impairment
|
|
3,855
|
|
Add: Impact of
amortization of debt discount
|
|
4,894
|
|
Add: Impact of
deal-related costs
|
|
2,149
|
|
Adjusted net
income
|
|
$
|
118,052
|
|
|
|
|
ADJUSTED DILUTED
EARNINGS PER SHARE RECONCILIATION
|
|
|
|
Three months ended
September 30, 2020
|
Diluted net income
per share
|
|
$
|
0.09
|
|
Add: Impact of
restructuring and related impairment
|
|
0.15
|
|
Add: Impact of
impairment
|
|
0.01
|
|
Add: Impact of
amortization of debt discount
|
|
0.01
|
|
Add: Impact of
deal-related costs
|
|
—
|
|
Adjusted diluted
income per share
|
|
$
|
0.26
|
|
Under Armour,
Inc.
As of September 30,
2020, and 2019
|
|
BRAND HOUSE AND
FACTORY HOUSE DOOR COUNT
|
|
|
|
September
30,
|
|
|
2020
|
|
2019
|
Factory
House
|
|
172
|
|
167
|
Brand
House
|
|
18
|
|
18
|
North America
total
doors
|
|
190
|
|
185
|
|
|
|
|
|
Factory
House
|
|
122
|
|
96
|
Brand
House
|
|
116
|
|
89
|
International
total doors
|
|
238
|
|
185
|
|
|
|
|
|
Factory
House
|
|
294
|
|
263
|
Brand
House
|
|
134
|
|
107
|
Total
doors
|
|
428
|
|
370
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/under-armour-reports-third-quarter-2020-results-provides-outlook-for-2020-301163496.html
SOURCE Under Armour, Inc.